This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE FINANCIAL STATEMENTS

DUNA HOUSE HOLDING NYRT.

STANDALONE FINANCIAL STATEMENTS

IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS

31 December 2023

1

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT.

31 December 2023

STANDALONE BUSINESS REPORT

Table of Contents

1.

General

9

1.1

Introduction to the company

9

1.2

Basis of the financial statements

10

2.

Accounting policy

12

2.1

Main components of the accounting policy

12

2.1.1

Reporting currency and FX balances

12

2.1.2

Distinction between short and long-term

12

2.1.3

Sales revenue

13

2.1.4

Investments in subsidiaries

13

2.1.5

Real estate, machines, equipment

14

2.1.6

Impairment loss

14

2.1.7

Intangible assets

14

2.1.8

Inventories

15

2.1.9

Receivables

15

2.1.11

Financial instruments

15

2.1.12

Income taxes

17

2.1.13

Leasing

18

2.1.14

Earning per share (EPS)

19

2.1.15

Off-balance sheet items

19

2.1.16

Treasury shares repurchased

20

2.1.17

Dividends

20

2.1.18

Profit/Loss on financial transactions

20

2.1.19

Distribution of shares, option schemes

20

2.1.20

Cash and cash equivalents

20

2.1.21

Events subsequent to the accounting reference date

20

2.2

Changes in the Accounting Policy

21

2.2.1 The new standards entering into effect on 1 January 2023 and applied by the

Company:

21

2.2.2

Standards issued but not yet in force and not subject to early application

22

2.3

Uncertainties

24

2.3.1

Impairment of the participations held in the subsidiaries

25

2.3.2

Impairment recognised on uncollectible and doubtful receivables

25

2.3.3

Depreciation

25

2.3.4

Deferred purchase price liabilities

25

2.4

Subsidiaries, joint undertakings and associated undertakings of the Company

26

2.4.1 Introduction to the subsidiaries, joint undertakings and associated undertakings

of the Company

27

3.

Property, machinery and equipment

34

4.

Intangible assets

35

5.

Leases

36

6.

Investments in subsidiaries

37

7.

Deferred tax receivables

38

8.

Amounts owed by related undertakings

38

9.

Other receivables

39

2

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT.

31 December 2023

STANDALONE BUSINESS REPORT

10.

Instruments classified as held for sale and liabilities directly linked to them

40

11.

Cash and cash equivalents

40

12.

Registered capital and profit reserve

40

13.

Treasury shares

43

14.

Other long-term liabilities

45

15.

Bonds payable

46

16.

Accounts payable

48

17.

Liabilities to related undertakings

48

18.

Other liabilities

49

19.

Sales revenue

49

20.

Other operating income

49

21.

Consumables and raw materials

50

22.

Goods and services sold

50

23.

Contracted services

51

24.

Personnel costs

52

25.

Other operating charges

52

26.

Revenues of financial transactions

52

27.

Expenses of financial transactions

53

28.

Income tax expenses

53

29.

Capital management

54

30.

Risk management

55

31.

Financial instruments

60

32.

Remuneration of the Board of Directors and Supervisory Board

61

33.

Events after the balance sheet date

62

34.

Other publication obligations required by the Accounting Act

63

35.

Liability declaration and approval of the financial statements for disclosure

65

3

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE BUSINESS REPORT

Statement of financial position

data provided in thousands HUF, unless indicated otherwise

Notes

31.12.2023

31.12.2022

ASSETS

Long-term assets

Intangible assets

4

10 602

711

Right-of-use

5

19 966

244

Land and buildings

3

168

196

Machinery and equipment

3

119 574

134 234

Investments in subsidiaries

6

9 148 927

8 581 605

Total long-term assets

9 299 237

8 716 990

Current assets

Inventories

2 121

2 121

Trade receivables

327

285

Amounts owed by related undertakings

8

3 434 248

3 531 819

Other receivables

9

46 110

633 617

Actual income tax assets

0

1 233

Cash and cash equivalents

11

6 140 594

8 669 080

Assets classified as held for sale

10

0

142 446

Total current assets

9 623 400

12 980 601

Total Assets

18 922 637

21 697 591

The notes provided on pp. 9-65 constitute an integral part of the Financial Statements.

4

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE BUSINESS REPORT

Statement of financial position

data provided in thousands HUF, unless indicated otherwise

LIABILITIES

Notes

31.12.2023

31.12.2022

Equity

Registered capital

12

171 989

171 989

Capital reserve

12

1 562 273

1 564 066

Treasury shares repurchased

13

(160 147)

(370 862)

Profit reserve

12

2 048 495

2 950 878

Total equity:

3 622 610

4 316 071

Long-term liabilities

Deferred tax liabilities

61

61

Other long-term liabilities

14

1 306 318

3 800 802

Bonds payable

15

13 033 923

13 059 828

Long-term liabilities from leases

5

73 786

62 042

Total long-term liabilities

14 414 088

16 922 733

Current liabilities

Accounts payable

16

35 324

9 491

Liabilities to related undertakings

17

656 640

357 611

Other liabilities

18

185 793

84 687

Short-term liabilities from leases

6

8 182

6 998

Total current liabilities

885 939

458 787

Total liabilities and equity

18 922 637

21 697 591

The notes provided on pp. 9-65 constitute an integral part of the Financial Statements.

5

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE BUSINESS REPORT

Report on profit and loss and other comprehensive income data provided in thousands HUF, unless indicated otherwise

Notes

2023

2022

Net sales revenues

19

288 507

253 174

Other operating income

20

74

4 582

Total revenue

288 581

257 756

Consumables and raw materials

21

(17 077)

(11 182)

Goods and services sold

22

0

(42 578)

Contracted services

23

(177 483)

(291 042)

Personnel costs

24

(162 622)

(160 498)

Depreciation and amortisation

(16 295)

(5 091)

Depreciation of right-of-use

5

(4 904)

(976)

Other operating charges

25

(9 760)

(19 625)

Operating costs

(388 141)

(530 992)

Operating profit/loss

(99 560)

(273 236)

Financial income

26

3 973 897

2 187 232

Financial charges

27

(796 703)

(497 636)

Profit before tax

3 077 634

1 416 360

Income tax expense

28

(143 117)

(29 218)

Profit for the year

2 934 517

1 387 142

Total comprehensive income

2 934 517

1 387 142

The notes provided on pp. 9-65 constitute an integral part of the Financial Statements.

6

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE FINANCIAL STATEMENTS

Statement of changes in equity

data provided in thousands HUF, unless indicated otherwise

Notes

Registered

Capital reserve

Treasury shares

Profit reserve

Total equity

capital

repurchased

Balance as at 31 December 2021

171 989

1 544 146

(243 406)

2 739 436

4 212 165

Dividends

12

(1 175 700)

(1 175 700)

Purchase of treasury shares

13

(127 456)

(127 456)

Employee share programs

12

19 920

19 920

Total comprehensive income

1 387 142

1 387 142

Balance as at 31 December 2022

171 989

1 564 066

(370 862)

2 950 878

4 316 071

Dividends

12

(3 836 900)

(3 836 900)

Purchase of treasury shares

13

210 715

210 715

Employee share programs

12

(1 793)

(1 793)

Total comprehensive income

2 934 517

2 934 517

Balance as at 31 December 2023

171 989

1 562 273

(160 147)

2 048 495

3 622 610

The notes provided on pp. 9-65 constitute an integral part of the Financial Statements.

7

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE FINANCIAL STATEMENTS

Cash Flow Statement

data provided in thousands HUF, unless indicated otherwise

Notes

2023

2022

OPERATING CASH FLOW

Profit/Loss before taxation

3 077 634

1 416 360

Adjustments to reconcile profit before tax to net cash flow:

Depreciation and impairment of real estate property, machinery and

3, 5

21 199

6 067

equipment and right-of-use assets

Expenses of share-based payments

20 595

55 057

Net exchange rate difference

77 320

(32 523)

Financial revenues

26

(3 973 897)

(2 187 232)

Financial costs

27

796 703

497 636

Changes in working capital

Decrease/(increase) in inventories, trade receivables, contractual

9

(22 724)

(3 185)

assets, advances, and restricted cash

Increase in trade and other liabilities, contractual liabilities, and

16, 18

126 939

94 178

refund liabilities

123 769

(153 642)

Interest received

26

1 074 303

840 495

Interest paid

27

(478 989)

(211 376)

Income tax paid

28

(144 203)

(29 501)

Net operating cash flow

574 880

445 976

Investment cash flow

Purchase of property, machinery and equipment

3

(2 512)

(136 713)

Decrease/(increase) in loans to a subsidiary

17

387 819

2 340 735

Increase/(decrease) in loans from a subsidiary

8

281 189

(641 796)

Dividends from subsidiaries and jointly controlled subsidiaries

6, 26

1 245 453

1 608 081

Acquisition of a subsidiary

2.4.2.1

0

(3 506 647)

Net investment cash flow

1 911 949

(336 340)

Financing cash flow

Proceeds from the exercise of share options

13

259 426

155 612

Purchase of treasury shares

13

(71 100)

(388 941)

Purchase of non-controlling interests

2.4.2.1

(1 127 101)

(123 356)

Deferred purchase price payment

2.4.2.1, 14

(241 665)

Proceeds from borrowing

15

0

5 981 816

Dividends paid to shareholders of the parent company

12

(3 836 900)

(1 171 987)

Net financing cash flow from financing activities

(5 017 340)

4 453 143

Net change in cash and cash equivalents

(2 530 512)

4 562 780

Balance of cash and cash equivalents at the start of the period

8 669 080

3 983 944

Exchange differences on cash and cash equivalents

2 026

122 356

Balance of cash and cash equivalents at the end of the period

11

6 140 594

8 669 080

The notes provided on pp. 9-65 constitute an integral part of the Financial Statements.

8

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE BUSINESS REPORT

1. General

1.1 Introduction to the company

This report contains the standalone financial statements of Duna House Holding Nyrt. (the "Company") for the year ending with 31 December 203. The Company is a public limited company registered in Budapest, Hungary, with its registered office at 1016 Budapest, Gellérthegy utca 17. The Company was founded in 2003; its main activity is real estate and loan brokerage. Through its subsidiaries, the Company is a leading player in the Central European services sector, mainly in real estate and financial products brokerage, with investments in Hungary, Italy, Poland, and the Czech Republic.

It is a strategic objective of Duna House Group to extend its expertise to the Central-European region and to become a major international actor. A transaction as a result of which Duna House Group, Hungary is now the sole owner of Metrohouse, the largest Polish real estate agency was closed in April 2016. Metrohouse was consolidated into the Duna House Group on 1 April 2016. On 2 September 2016 the Company acquired 80% participation in the Czech Duna House Franchise s.r.o and, through it, in two of its subsidiaries, Center Reality s.r.o and Duna House Hypotéky s.r.o.; on 6 November 2018, it acquired the Polish loan brokerage company Gold Finance Sp. z.o.o.; and on 7 January 2020 it acquired the Polish loan brokerage company Alex T. Great Sp. z.o.o.

On 13 January 2022, the Company closed the acquisition of a 70% share in HGroup S.p.A. with additional future options (Put/Call), which may increase Duna House's stake in the Italian group to 100%. See section 2.4.2.1. for details of the Italian acquisition.

The Company's registered seat is at H-1016 Budapest, Gellérthegy u. 17.

Principal activities:

  • selling and operating franchise systems,
  • real estate agency services,
  • financial products brokerage,
  • insurance brokerage,
  • real estate appraisal services and the mediation thereof,
  • energy certification services and the mediation thereof,
  • real estate management,
  • buying and selling of own real estate,
  • residential real estate fund management,
  • real estate development.

9

This is a translation of the Hungarian Report

DUNA HOUSE HOLDING NYRT. 31 December 2023

STANDALONE BUSINESS REPORT

After the increase in capital registered on 1 February 2017, Duna House Holding Nyrt.'s largest shareholder was, with a 77.72% share, Medasev Holding Kft. (1016 Budapest, Gellérthegy utca 17., company registration number: Cg.01-09-209753), which on 6 September 2022 underwent a demerger to form GD Holding Kft. (1026 Budapest, Hidász utca 21. fszt 1., company registration number: Cg.01-09- 405548, beneficial owner: Gay Dymschiz) and DDGroup Kft. (1025 Budapest, Szépvölgyi út 206, company registration number: Cg.01-09-405549, beneficial owner: Doron Dymschiz). GD Holding Ltd and DDGroup Ltd are acting in concert and are the controlling shareholders of the Group.

Owner's name

Ownership share

Ownership share

as at 31 December 2023

as at 31 December 2022

GD Holding Kft.

39,18%

39,17%

DDGroup Kft.

39,18%

39,17%

VIG Asset Management Hungary Zrt.

8,24%

7,60%

Employees

2,37%

2,13%

Treasury shares

0,97%

2,16%

Other investors

10,07%

9,76%

Total

100%

100%

The Company is operated by the Board of Directors, the members of which are: Doron Dymschiz (Chairman), Gay Dymschiz, Jenő Nagy (non-operative), Ferenc Máté, Dániel Schilling. The controlling tasks over the operation of the Company are performed by the Supervisory Board, the members of which are: Károly Redling (Chairman), György Martin-Hajdu, Kálmán Nagy.

1.2 Basis of the financial statements

i) Approval and declaration on compliance with the International Financing Reporting Standards

The standalone financial statements were approved by the Board of Directors on 8 April 2024. The standalone financial statements were prepared in compliance with the International Financial Reporting Standards (IFRS), as announced and enacted in a regulation in the official journal of the European Union (EU). The IFRS consists of the standards and interpretations developed by the International Accounting Standards Board (IASB) and the International Financing Reporting Interpretations Committee (IFRIC).

In line with the provisions of Act CLXXVIII of 2015 related to the introduction in Hungary of International Financial Reporting Standards for standalone reporting purposes and amending Act C of 2000 ("Accounting Act"), and on the amendment of various finance-related acts, starting from 1 January 2017 the Company has also prepared its standalone financial statements in line with the International Financial Reporting Standards.

ii) Basis of the financial statements

The standalone financial statements were prepared on the basis of the standards issued and effective before 31 December 2023 and according to the IFRIC interpretations.

The standalone financial statements were prepared on the basis of the historical cost principle, except when the IFRS requires the use of a different valuation principle than the one stated in the accounting policy. The financial year is identical with the calendar year.

10

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Duna House Holding Nyrt. published this content on 03 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2024 08:39:03 UTC.