2. Statement of compliance and basis of preparation

Statement of compliance

The consolidated financial statements have been prepared in accordance with the International

Financial Reporting Standards as adopted by the European Union (hereinafter referred to as

EU) (hereinafter referred to as EU IFRSs).

These financial statements were approved by the Board of Directors of MVM Zrt. on 16 April

2025.

Basis of measurement

The consolidated financial statements have been prepared on a historical cost basis except

for the following items, which are stated at fair value:

 derivative transactions measured at fair value – derivative transactions in effective cash

flow hedges, or derivative transactions that are not designated as hedging relationships

(Note II.3. d));

 equity instruments measured at fair value through other comprehensive income (Note

II.3. d));

 nuclear technology assets (Note II.3. j).

In accordance with IFRSs, the provisions of the Hungarian Act on Accounting are applied by

the Group to matters not regulated by IFRSs.

The financial year corresponds to the calendar year. The Group prepares the consolidated

financial statements on a going concern basis.

Functional and presentation currency

These consolidated financial statements are presented in Hungarian forint, which is the

Company’s functional currency. In the consolidated financial statements, financial information

presented in forint has been rounded to the nearest million (“HUF million”), while information

presented in other currencies has been rounded to one currency unit.

Recorded data of the person responsible for directing and managing bookkeeping-related

tasks

Public data of the person responsible for directing bookkeeping-related tasks in relation to the

consolidated financial statements:

Viktória Kovács

Address: 1131 Budapest, Madarász Viktor utca 27.

Qualified accountant registration number:179762

Persons authorised to sign the consolidated financial statements

Name	Address
Authorised to sign jointly:
Károly Tamás Mátrai CEO - primary signatory	1025 Budapest, Verecke út 88/A
László Fazekas Deputy CEO, Chief Financial Officer secondary signatory	1138 Budapest, Turóc utca 7. 5. em. 3.

Audit

Based on Section 155 (2) of the Act on Accounting, MVM Zrt. must be audited.

Auditor of the Company: Deloitte Könyvvizsgáló és Tanácsadó Kft.

Individual responsible for the audit:

Tamás Horváth auditor

Mother's maiden name: Veronika Grósz

Address: 1029 Budapest, Bölény u. 16.

Chamber of Hungarian Auditors registration number: 003449

The consolidated financial statements are also disclosed on the website of MVM Zrt.

(https://mvm.hu/Befektetoknek/PenzugyiBeszamolok).

3. Significant accounting policies

a) Business combinations and goodwill

Business combinations are accounted for using “acquisition accounting” as at the acquisition

date. Control exists if the MVM Group is exposed (or has rights) to variable returns from its

involvement with the company (subsidiary) and is able to use its power over the company to

affect those returns.

The financial statements of the subsidiaries are included in the consolidated financial

statements from the date on which control commences until the date on which control ceases.

Goodwill is measured as at the acquisition date as follows:

 the fair value of the consideration transferred; plus

 the recognised amount of any non-controlling interests in the acquiree; plus

 if the business combination is achieved in stages, the fair value of pre-existing equity

interest of the acquirer in the acquiree;

less

 the net recognised amount (generally fair value) of the identifiable assets acquired and

liabilities assumed.

When the difference arising upon acquisition is negative, the MVM Group reassesses whether

all assets acquired and liabilities assumed have been identified, and it revises the

measurement performed to determine the amounts to be recognised. If the difference is still

negative it is recognised immediately in profit or loss.

The Group rates, classifies and allocates to host contracts, if applicable, the assets acquired

and liabilities assumed, including embedded derivatives identified in the contracts of the

acquiree, on the basis of their contractual terms, economic and related conditions as at the

acquisition date.

The consideration transferred does not include the amounts paid by the acquirer to the

acquiree to settle transactions that occurred between them prior to the acquisition. These

amounts are recognised in profit or loss.

Transaction costs, other than those associated with the issue of debt and equity securities,

incurred in connection with the business combination are recognised in profit or loss as

incurred.

Any contingent consideration payable by the acquirer is measured at fair value at the

acquisition date. If the MVM Group classifies the contingent consideration as equity, then it is

not re-measured subsequently and its settlement is accounted for within equity. Otherwise,

subsequent changes in the fair value of the contingent consideration are recognised in profit

or loss.

For goodwill, impairment is assessed at least annually or if an indication exists that the cash-

generating unit might be impaired. For impairment testing, MVM Group allocates goodwill to

its one or more cash-generating units that are expected to benefit from the synergies of the

combination, irrespective of the fact whether other assets or liabilities have been allocated to

those units. In assessing impairment, the present value of expected future cash flows from the

cash-generating unit is compared to the carrying amount of the net assets of the unit including

goodwill.

For option or forward transactions with owners holding non-controlling interests the MVM

Group applies the so called present access method, that is, the interests forming the base of

the option or forward transaction are not presented as if they had been obtained at the date of

acquisition.

As a result, liabilities arising from the option or forward transactions are not included in the

consideration paid but are treated by the Group as separate financial liabilities.

Business combinations of jointly controlled entities

A business combination involving jointly controlled entities or businesses is a business

combination in which all of the combining entities or businesses are ultimately controlled by

the same party or parties both before and after the business combination, and that control is

not transitory.

The Group accounts for transactions between jointly controlled entities at the carrying amount

of the acquiree in its consolidated financial statements upon initial recognition of assets and

equity and liabilities. During the method of accounting for the carrying amount, the profit or loss

on transactions between jointly controlled entities is accounted for in retained earnings within

equity.

Non-controlling interests

Non-controlling interests in an acquiree are measured at the proportionate share of the

acquiree's identifiable net assets.

Changes to the MVM Group's interests in its subsidiaries which do not result in the loss of

control over the given subsidiary are accounted for as transactions with owners in their capacity

as owners. The non-controlling interests are adjusted by the proportionate amount of the

identified net assets of the subsidiary. The adjustments have no impact either on the profit or

loss or on the value of goodwill.

b) Basis of consolidation

The consolidated financial statements include the financial statements of MVM Zrt. and of all

those enterprises in which the Company has direct or indirect controlling influence

(subsidiaries), as well as the equity-accounted associated companies and joint ventures of the

MVM Group. The Company and its subsidiaries form together the “MVM Group”.

Subsidiaries

Subsidiaries are companies controlled directly or indirectly by the Company. Control is

construed as defined in the first paragraph of section a) above.

The financial statements of the subsidiaries are included in the consolidated financial

statements from the date on which control commences until the date on which control ceases,

with the following simplifications.

The subsidiaries are first consolidated on the last day of the month of their establishment or

acquisition, provided there has been no significant change in the circumstances between the

acquisition date and the last day of the acquisition month. If there has been a significant change

in the circumstances between the acquisition date and the last day of the acquisition month,

the first consolidation takes place as of the acquisition date.

The task of consolidating capital in a full consolidation must be stopped if a subsidiary

consolidated fully in the previous year is no longer consolidated using the full consolidation

method. The capital is not consolidated and the previously consolidated company is removed

from the full consolidation as of the first day of the month in which the change took place,

provided there were no significant alterations in the circumstances between the day of the

change and the first day of the month of the change. Otherwise, the entity is removed as of the

day of the change. If the capital consolidation is discontinued because a subsidiary previously

consolidated in full is subject to insolvent or voluntary liquidation proceedings, then the removal

is based on the financial statements ending the company’s activity, and when the insolvent or

voluntary liquidation becomes final it is exempt from inclusion in the full consolidation.

Associates

A company is considered an associate if the MVM Group holds directly or indirectly at least

20% but less than 50% of the voting rights and has significant but non-controlling influence in

the company. Influence is considered significant, if MVM Group has the power to participate in

the financial and operating policy decisions of the entity. Associates are accounted using the

equity method and are recognised initially at cost.

The consolidated financial statements of the MVM Group include the MVM Group's

proportionate share of the profit or loss and other comprehensive income for the reporting year

of the equity-accounted investees.

When the MVM Group’s share of the losses of the associate exceeds the interest in the equity-

accounted investee, the carrying amount of the investment must be reduced to zero. Losses

exceeding the carrying amount of the investment are accounted for only when and to the extent

that the MVM Group has made payments on behalf of the associate or has an obligation

relating to this.