Untitled

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

ANY Security Printing Company Public Limited Company by Shares

Independent Auditors’ Report and

Consolidated Financial Statements

for the year ended December 31, 2022

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

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ANY Security Printing Company Public Limited Company by Shares

Audited Consolidated Financial Statements

December 31, 2022

Table of content

TABLE OF CONTENT ................................................................................................................. 2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022

AND DECEMBER 31, 2021 ......................................................................................................... 4

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS AT DECEMBER 31,

2022 AND DECEMBER 31, 2021 ................................................................................................ 5

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS AT

DECEMBER 31, 2022 AND DECEMBER 31, 2021 .................................................................... 6

CONSOLIDATED STATEMENT OF CASH-FLOW AS AT DECEMBER 31, 2022 AND

DECEMBER 31, 2021 .................................................................................................................. 7

SUPPLEMENTARY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DEC. 31,

2022 .............................................................................................................................................. 8

1 GENERAL ............................................................................................................................ 8

2 SIGNIFICANT ACCOUNTING POLICIES .......................................................................... 11

3 CASH AND BANK.............................................................................................................. 23

4 ACCOUNTS RECEIVABLES ............................................................................................. 23

5 INVENTORIES ................................................................................................................... 24

6 OTHER CURRENT ASSETS AND PREPAYMENTS ......................................................... 24

7 PROPERTY, PLANT AND EQUIPMENT ........................................................................... 25

8 RIGHT OF USE ASSETS ................................................................................................... 26

9 CURRENT YEAR ACQUISITIONS ..................................................................................... 27

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

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10 GOODWILL ........................................................................................................................ 28

11 INTANGIBLES ................................................................................................................... 30

12 OTHER PAYABLES TAX LIABILITIES, GOVERNMENT GRANTS AND ACCRUALS .... 30

13 SHORT TERM AND LONG TERM LOANS ....................................................................... 31

14 SHARE CAPITAL ............................................................................................................... 32

15 TREASURY SHARES ........................................................................................................ 32

16 RETAINED EARNINGS, NON-CONTROLLING INTEREST .............................................. 32

17 NET SALES ........................................................................................................................ 33

18 OTHER EXPENSES, NET .................................................................................................. 34

19 INTEREST INCOME / EXPENDITURE .............................................................................. 34

20 COST OF SALES AND SELLING GENERAL AND ADMINISTRATION COSTS ............. 35

21 TAXATION ......................................................................................................................... 36

22 OTHER COMPREHENSIVE INCOME FOR THE YEAR .................................................... 38

23 EARNINGS PER SHARE ................................................................................................... 38

24 CONTINGENT LIABILITIES ............................................................................................... 38

25 SHORT TERM AND LONG TERM PART OF LEASE LIABILITIES .................................. 39

26 RELATED PARTY TRANSACTIONS

................................................................................ 40

27 REMUNERATION OF THE MEMBERS OF THE SUPERVISORY BOARD AND THE

BOARD OF DIRECTORS .......................................................................................................... 41

28 RISK MANAGEMENT ........................................................................................................ 41

29 PURCHASING AND SELLING OF SUBSIDIARIES .......................................................... 44

30 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD ........................................... 45

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P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

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Consolidated Statement of Financial Position as at December 31, 2022 and Decem-

ber 31, 2021

In HUF thousands:

Notes

December 31, 2022

December 31, 2021

Current assets

Cash and bank

6,393,330

1,297,507

Accounts receivables

5,607,294

5,683,056

Inventories

6,487,058

3,278,612

Other current assets and prepayments

(without current tax receivable)

982,797

1,536,437

Current tax receivables

160,315

80,677

Total current assets

19,630,794

11,876,289

Non-current assets

Property, plant and equipment

13,083,997

9,884,215

Right of use

578,557

1,054,572

Goodwill

569,823

335,857

Intangibles

247,615

Other assets

16,914

10,222

Total non-current assets

14,496,906

11,284,866

Total assets

34,127,700

23,161,155

Current liabilities

Trade accounts payables

4,326,200

3,184,623

Short term part of lease liabilities

287,807

359,248

Other payables and accruals (without current tax lia-

bilities)

9,909,584 1,543,265

Current tax liabilities

1,142,542

1,250,925

Short term loans

2,540,520

2,315,408

Total current liabilities

18,206,653

8,653,469

Long term liabilities

Deferred tax liability

839,984

668,993

Long term part of lease liabilities

112,396

287,721

Long term loans

4,357,787

3,087,534

Other long term liabilities

15,444

21,764

Total long term liabilities

5,325,611

4,066,012

Shareholders' equity

Share capital

1,449,876

Capital reserve

250,686

Retained earnings

7,888,003

8,054,043

Treasury shares

-455,048

(455,048)

Other comprehensive income

232,040

94,107

Total owners' equity

9,365,557

9,393,664

Non controlling interest

1,229,879

1,048,010

Total shareholders’ equity

10,595,436

10,441,674

Total liabilities and shareholders' equity

34,127,700

23,161,155

The Supplementary Notes are inseparable parts of the consolidated financial statements.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

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Consolidated Statement of Comprehensive Income as at December 31, 2022 and

December 31, 2021

In HUF thousands: Notes FY 2022 FY 2021

Net sales 17 43,179,930

40,657,532

Cost of sales

(30,555,068)

(26,730,445)

Gross profit

12,624,862

13,927,087

Selling general and administration

(8,830,160)

(8,711,659)

Gain on sale of fixed assets

227

8,603

Foreign currency (loss) / gain

149,804

35,584

Other expense, net

(358,675)

(806,513)

Operating income

3,586,058

4,453,102

Interest income/(expense)

(200,175)

(70,235)

Gains on sales of investments

498,781

Profit before tax and non-controlling interest

3,385,883

4,881,648

Deferred tax income / (expense)

(117,722)

(270,176)

Income tax expense

(573,862)

(639,407)

Total tax expense

(691,584)

(909,583)

Profit after tax

2,694,299

3,972,065

Other comprehensive income for the year

205,027

16,672

out of which: effect of revaluation based on IAS 21

205,027

16,672

out of which: fair value effect of derivative finan-

cial liability

Total comprehensive income for the year

2,899,326

3,988,737

Profit after tax attributable to

Shareholders of the Company

2,244,042

3,606,617

Non controlling interests

450,257

365,448

Other comprehensive income attributable to

Shareholders of the Company

137,933

8,912

Non controlling interests

67,094

7,760

Earnings per share (EPS):

Basic (HUF per share)

156

251

Fully diluted (HUF per share)

156

251

Dividend per share paid (DPS)

168

The Supplementary Notes are inseparable parts of the consolidated financial statements.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

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Consolidated Statement of Changes in Shareholders’ Equity as at December 31,

2022 and December 31, 2021

Issued

Capital

Reserve

Retained

Earnings

Treasury

Other

compre-

hensive

income

Non con-

trolling

Interest

Total

January 1, 2021

1,449,876

250,686

5,765,633

(455,048)

122,828

1,356,307

8,490,282

Dividend paid (after FY

2021)

(1,233,586)

Dividend paid to minority

shareholders (after FY

2021 income)

(218,791)

Profit after tax attributa-

ble to non-controlling

interests

365,448

Effect of revaluation

based on IAS 21

8,912

7,760

16,672

Changes connected to

Direct Services trans-

action

(74,220)

(37,633)

(336,314)

(448,167)

Changes connected to

Zipper Services trans-

action (without change

in ownership control)

(10,400)

(126,400)

(136,800)

Profit after tax attributa-

ble to owners of the

Company

3,606,617

December 31,2021

1,449,876

250,686

8,054,043

(455,048)

94,107

1,048,010

10,441,674

Dividend paid (after FY

2021)

(2,410,082)

Dividend paid to minority

shareholders (after FY

2021 income)

(498,738)

Profit after tax attributa-

ble to non-controlling

interests

450,257

Effect of revaluation

based on IAS 21

137,933

67,094

205,027

Changes connected to

Atlas transaction

163,256

Profit after tax attributa-

ble to owners of the

Company

2,244,042

December 31,2022

1,449,876

250,686

7,888,003

(455,048)

232,040

1,229,879

10,595,436

The Supplementary Notes are inseparable parts of the consolidated financial statements.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Consolidated Statement of Cash-flow as at December 31, 2022 and December 31,

2021

In HUF thousands:

Notes

FY 2022

FY 2021

Cash flows from operating activities

Profit before tax and non-controlling interest

3,385,883 4,881,648

of which foreign currency (loss) / gain

149,804

30,867

Effect of revaluation based on IAS 21

205,027 16,672

Depreciation cost of fixed assets

1,962,562

1,710,561

Amortization cost of intangibles 11 84,607 989

Foreign exchange differences on the line of the other com-

prehensive income

0 0

Changes in provisions

78,012

650,093

Gain on sale of property, plant and equipment

(2,906)

(8,603)

(Gains) / losses on sale of investments

(498,781)

Interest expense

246,169 83,862

Interest income

(45,994)

(13,627)

Operating cash-flow before working capital changes:

5,913,360

6,822,814

Changes in accounts receivable and other current

assets

4,6 802,543 (1,559,440)

Changes in inventories

(3,218,547)

79,850

Changes in accounts payables, provision and accruals

8,925,226

(206,758)

Cash provided by operations

12,442,582

5,136,466

Interest income

(224,054) (116,552)

Interest expense

101,953

Taxes paid, net

(591,855)

(624,502)

Net cash provided by operating activities

11,708,626

4,395,412

Cash flows from investing activities

Purchase of property, plant and equipment

(4,405,249)

(1,413,510)

Proceeds on sale of property, plant and equipment

2,906

8,603

Proceeds on sale of investments 29 (478,851) 877,028

Purchase of investments

(668,160)

Changes in loans to employees

(4,658) (408)

Net cash flow used in investing activities

(4,984,852)

(1,196,447)

Cash flows from financing activities

Non controlling interest changes

(498,738)

(885,798)

Changes in short term loans

198,506

(192,093)

Increase in long term debt 13 3,330,576 -

Repayment of long term debts

(2,060,323)

(1,390,369)

Repayment of lease liabilities

(241,726)

(529,948)

Dividend paid

(2,410,081)

(1,233,586)

Net cash flow used in financing activities

(1,681,786) (4,231,794)

Changes in cash and cash equivalents

5,041,988

(1,032,829)

Cash and cash equivalents at beginning of period

1,297,507

2,330,336

Cash and cash equivalents at end of the period without

funds acquired in the ATLAS transaction

6,339,497 1,297,507

Cash acquired during the ATLAS acquisition

53,833 -

Cash and cash equivalents at end of the period

6,393,330

1,297,507

The Supplementary Notes are inseparable parts of the consolidated financial statements.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

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Supplementary Notes to the Consolidated Financial Statements Dec. 31, 2022

General

ANY Security Printing Company Public Limited Company by Shares (ANY PLC or the Company) is

a limited liability company incorporated under the laws of the Republic of Hungary. The Company

operated as a State enterprise until 1992 when it was transformed into a limited liability company

(Rt.). The Company’s registered office is located at Halom u.5, Budapest, District 10. The Company’s

webpage: www.any.hu.

The persons authorized to represent the Company, and to sign the annual report: Gábor Zsámboki,

CEO (Address: 1056 Budapest, Belgrád rakpart 21. IV/1.). The person responsible for the accounting

services registered in IFRS: Tamás Karakó, CFO (Address: 1112 Budapest, Őrség u. 9/B). The au-

ditor of the Company Ernst & Young Könyvvizsgáló Kft. (Address: 1132 Budapest, Váci út 20.), reg-

istered statutory auditor: Zsuzsanna Bartha (MKVK: 005268) (Address: 5900 Orosháza, Rákóczi út

25.). The audit fee in 2022 is HUF 31.2 million. Ernst & Young Kft. provided advisory services to ANY

Security Printing company Plc. in connection with non-audit service in the amount of 9000 EUR.

s of December 31, 2022 and 2021 – based on the Company’s share book – the following owners

have more than 5% voting right or the following groups of investors own the Company:

FY 2022 FY 2021

Investor

Voting right

(%)

Ownership

(%)

Voting right

(%)

Ownership

(%)

Owners above 5% share

EG CAPITAL LLC(*) 11.98% 11.62% 11.98% 11.62%

DIGITAL FOREST LLC(**) 6.97% 6.76% 6.97% 6.76%

AEGON ALFA SZÁRMAZTATOTT

ALAP

8.87% 8.60% 9.50% 9.21%

Owners below 5% share

Domestic Institutional Investors

28.94% 28.06% 29.17% 28.28%

Foreign Institutional Investors

10.75% 10.42% 10.74% 10.40%

Foreign Individual Investors

0.54% 0.52% 0.50% 0.49%

Domestic Individual Investors

28.53% 27.66% 27.58% 26.75%

Management, employees

2.42% 2.34% 2.51% 2.44%

Treasury shares

0.00% 3.03% 0.00% 3.03%

Other

1.00% 0.99% 1.05% 1.02%

(*) The Chairman of the Board of Directors of ANY Security Printing Company PLC as owner of EG Capital LLC has a further

indirect ownership through Fortunarum Kft.

(**) Based on the AGM of March 31, 2014 the Tamás Erdős has been elected as a member of the Board of Directors of ANY

Security Printing Company PLC has indirect ownership.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

The Group produces security products and solutions (tax stamps. stickers with security elements),

plastic and paper cards (document cards. bank and telephone cards. as well as commercial cards),

personalized business and administration forms, as well as conventional printing products.

The consolidated subsidiaries of the Group at December 31, 2022 and at December 31, 2021 are as

follows:

FY 2022 FY 2021

Name of the Com-

pany

Equity

Share of own-

ership

Voting

right

Share of

ownership

Voting right

Classification

Gyomai Kner

Nyomda Zrt.

HUF

200,000,000

99.48% 99.48% 99.48% 99.48%

Specimen Zrt.

HUF

100,000,000

100.00% 100.00% 100.00% 100.00%

Techno-progress

Kft.

HUF

5,000,000

100.00% 100.00% 100.00% 100.00%

ANY In-

gatlanhasznosító

Kft.

HUF

3,000,000

100.00%

Zipper Services

SRL

RON

2,060,310

60.00% 60.00% 60.00% 60.00%

Tipo Direct Serv

SRL

30.308 MDL 60.00% 60.00% 60.00% 60.00%

ATLAS Trade Dis-

trib. SRL (*)

RON 1,000 60.00% 60.00% 0.00% 0.00%

Slovak Direct SRO EUR 63,965 100.00% 100.00% 100.00% 100.00%

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)

(*) On the 15

February 2022 the 100% ownership of Zipper Services SRL in ATLAS Trade SRL has been registered.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

ESEF information

Homepage of parent company:

www.any.hu

LEI code of parent company:

529900YYR637SPJ0JR59

Name of parent company: ANY Security Printing Company Plc.

Domicile of parent company: Hungary

Legal form of parent company: Public Limited Company by Shares

Country of incorporation: Hungary

Address of parent company’s reg-

istered office:

H-1102, Budapest, Halom street 5., Hungary

Principal place of business: H-1102, Budapest, Halom street 5., Hungary

Description of nature of parent

company’s operation and principal

activities:

The Group produces security products and solutions (tax stamps.

stickers with security elements), plastic and paper cards (docu-

ment cards. bank and telephone cards. as well as commercial

cards), personalized business and administration forms, as well

as conventional printing products.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Significant accounting policies

Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Re-

porting Standards as adopted by the European Union (the “EU”). The Parent Company, ANY Security Print-

ing company Plc. prepares its separate financial statements in accordance with International Financial Re-

porting Standards from January 1, 2017. Its domestic subsidiaries prepare their financial statements in

accordance with Hungarian Accounting Law, while foreign subsidiaries prepare their financial statements

according to accounting principles generally accepted in their own countries, that are adjusted in accord-

ance with IFRS from the consolidation package through the consolidation process.

The consolidated financial statements are mainly prepared due to the regulations related to listed compa-

nies based on the accounting act, so it contains reclassifications and adjustments through which it complies

with IFRS.

IFRS as adopted by the EU do not currently differ from IFRS as issued by the International Accounting

Standards Board (IASB), except for portfolio hedge accounting under IAS 39 which has not been approved

by the EU. The Company does not have any transactions which would qualify as a portfolio hedge.

The reporting currency of the Group is the Hungarian Forint (“HUF”), rounded to nearest thousand forints.

he consolidated financial statements have been prepared on the historical cost basis except for certain

properties and financial instruments that are measured at revalued amounts or fair values, as explained in

the accounting policies below. Historical cost is generally based on the fair value of the consideration given

in exchange for assets. The principal accounting policies are set out below.

Financial Statements are prepared based on the assumption of going concern of the activity of the Group

in the foreseeable future.

Basis of consolidation

The consolidated financial statements include the financial statements of ANY PLC and its subsidiaries

after elimination of all intercompany transactions and balances, including unrealized intercompany profits.

Subsidiaries are those companies in which one company of the Group has control over the subsidiary, so

the company is exposed, or has rights, to variable returns from its involvement with the subsidiary and has

the ability to effect those returns through its power over the subsidiary.

n acquisition, the assets and liabilities of a subsidiary are measured in the consolidated statements at

their fair values at the date of acquisition. The interest of minority shareholders is stated at the minority’s

proportion of the fair values of the assets and liabilities recognized. Goodwill arising on consolidation rep-

resents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable net

assets of a subsidiary at the date of acquisition.

The results of subsidiaries acquired or disposed during the year are included in the consolidated income

statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

The transactions between the associated enterprises, including unrealized gains and losses as well as

realized intra-group gains, were eliminated during consolidation.

e equity and net income attributable to minority interests are shown as separate items in the consolidated

financial statements.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Cash and cash equivalents

Cash and cash equivalents include cash at bank in hand, balances of bank accounts and short-term de-

posits with an original maturity of three months or less and the risk of their impairment is not significant.

Consolidated statement of cash flows

For the cash flow statement the Cash and cash equivalents include cash and the value of bank deposits,

as well as other short term (a term of three months or less at the time of their purchase) liquid investments,

which may be immediately exchanged for the amount indicated on them, and their conversion does not

come with the risk of a change in their value. Statement of cash-flow is prepared based upon the indirect

cash-flow method.

Inventory

Inventory is stated at the lower of cost or net realizable value after making impairment for any obsolete or

slow moving items. Cost is determined at standard cost adjusted to actual purchase price at period end.

For purchased inventories cost comprises purchase price, possible additional customs, delivery costs, non-

refundable taxes and any other costs related to acquiring the inventory. For finished goods and work in

progress, cost comprises direct materials, direct labour and an appropriate allocation of manufacturing fixed

and variable overheads.

Inventory impairment is calculated on obsolete or slow moving stocks item by item after judgement of the

inventory item based on its physical status and future usage and selling opportunities. Full impairment is

raised on inventories of which future usage and selling opportunities based on the unique debtors related

characteristics of the inventories after the expiration of the contract or in lack of further orders are not

probable. In case of inventories not connected directly to debtors, impairment on inventory is posted, if

there was no consumption or sale in that item for a longer period before balance sheet day, based on

individual assessment in this case as well. Furthermore the Group accounts impairment for inventories

where cost of inventory is higher than the possible future net realizable value at a level until the net realiz-

able value. Furthermore raises the Group full impairment on inventories that are falling out of production

during the different technological processes, checked but proved to be not sufficient quality, and which

were moved to scrap inventory location during the year, but have not been scrapped yet.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Freehold land is not de-

preciated. Depreciation is provided using the straight-line method at rates calculated to write off the cost of

the asset over its expected economic useful life. The estimated useful life and amortisation method are

reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted

for on a prospective basis. The rates used are as follows:

Buildings 2% to 5%

Machinery and equipment 14.5 to 33%

Vehicles 20%

At each balance sheet date, the Group reviews the carrying amount of its tangible and intangible assets to

determine whether there is any indication in accordance with internal or external information that those

assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset

is estimated in order to determine the amount of such an impairment loss (if any). If the recoverable amount

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of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to

its recoverable amount. Impairment loss is recognized as an expense immediately.

An item of property, plant and equipment is derecognised upon disposal or when no future economic ben-

efits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or

retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying

amount of the asset and is recognised in profit or loss.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as

owned assets.

Depreciation of assets directly attributed to operation is posted to cost of sales, depreciation of assets

directly not attributed to operation is posted to selling, general and administration costs.

Right of use assets

The Group recognises its assets owned in connection with lease contracts as right of use assets from 1st

January 2019 based on the regulations of IFRS 16. Based on these regulations all assets are classified as

right of use assets which are owned or controlled through lease contracts or long term rental contracts. As

there is no guaranteed residual value or lease payments due at the end of the contractual period, in the

lease contracts of the Group, initial value of right of use assets are equal to initial value of the lease liabilities.

The Group has three different classes of right of use assets. These are real estates, machineries and

equipments and vehicles and other equipments. Depreciation is calculated on right of use assets based on

IAS 16 through the entire life of the lease contracts and long term rental contracts applying the following

rates:

Buildings

10.0% - 46%

Machinery and equipment

14.5% - 33%

Leases

Vehicles

25.0% - 33%

The Group recognises its lease liabilities based on IFRS 16 instead of previous regulation of IAS 17 from

1st January 2019. In accordance with that all liabilities are recognised as lease liabilities which are con-

nected to lease contracts or long term rental contracts. The Group measures its lease liabilities based upon

the present value of contractual net cash-flows, with credit interest rate available on the market for the

Group for similar periods using as a discount rate. The Group has no initial lease obligations, no dismantling

or removing costs, variable lease conditions and does not receive any lease incentives. The members of

the Group have no option to prolong the contracts neither in lease contracts nor in long term rental contracts,

though not even the lessor has the right to change the lease conditions during the lease period.

The Group has no small value leases, has no sub-lease contracts and has no sale-and-lease-back type

transactions.

Lease interest is calculated on lease liabilities with effective interest rate method, which is recognised in

the comprehensive profit and loss statement on the line interest expenditures.

Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated

amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over

their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of

each reporting period, with the effect of any changes in estimate being accounted for on a prospective

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basis. Intangible assets with infinite useful lives that are acquired separately are carried at cost less accu-

mulated impairment losses. Amortization is provided at rates between 16.7% and 33% per year.

n item of intangible asset is derecognised upon disposal or when no future economic benefits are ex-

pected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement

of an item of intangible asset is determined as the difference between the sales proceeds and the carrying

amount of the asset and is recognised in profit or loss.

Goodwill

On acquisition, the assets and liabilities of a subsidiary are measured in the consolidated statements at

their fair values at the date of acquisition. The interest of minority shareholders is stated at the minority’s

proportion of the fair values of the assets and liabilities recognized. Goodwill arising on consolidation rep-

resents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable net

assets of a subsidiary at the date of acquisition. Goodwill is included as intangible in the balance sheet, to

which impairment loss is calculated, if necessary. For the purpose of impairment test, the value of goodwill

is allocated to those Cash Generating Units (hereinafter: CGU) of the Group that probably will have positive

effects from the synergies. Those CGU-s, to which goodwill is allocated are subject to goodwill impairment

test annually or more often if circumstances indicate any loss in the value of the Unit. If the book value of

the goodwill is higher than the fair value of the CGU, impairment loss is accounted on the goodwill. The

impairment loss decreases mainly the value of the goodwill allocated on the CGU, then the remaining

amount decreases the net book value of the CGU’s other assets, in proportion of the book value of the

assets. The goodwill impairment loss once accounted cannot be reversed in the future. On disposal of a

subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

The goodwill impairment calculation is based upon companies’ budgets containing more financial years.

Present value of earnings before interest, tax and depreciation is calculated to the date of year end, using

the companies’ expected earnings before interest, tax and depreciation ratio as a discount factor. Thus

enterprise values are adjusted by cash balance and net debt balance resulting in final enterprise value.

This final enterprise value is compared to the net book value of the goodwill.

Financial instruments

In order to define the category of financial assets, the Group defines whether the financial asset is a debt

instrument or an equity instrument. Debt instruments must be measured through fair value to profit and loss

statement, though when recognizing, the Group can decide that debt instruments not held for sale can be

measured through fair value to other comprehensive income. If the financial asset is a debt instrument, the

following has to be considered.

Amortised cost – purpose is to have the contractual cash-flows, which contains only and only the

principle part of the liability and the interests.

Fair value through other comprehensive income (FVTOCI) – purpose is to held, which achieves its

goal by having contractual cash-flows and the sale of the financial instrument and the contractual

conditions of the financial asset contain in defined periods cash-flows only from principle part of t

liability and interests.

Fair value through profit and loss statement (FVTPL) – which do not belong into neither of the

above mentioned categories, or when recognition were marked as FVTPL financial assets.

Financial liabilities must be measured at amortised cost, except for those, which must be measured FVTPL

or the Group chose to measure at fair value.

Financial liabilities and derivative products must be measured at FVTPL. When recognizing, the Group can

mark a financial liability to be measured at FVTPL irrevocably if:

it ceases or significantly decreases a measurement inconsistency, or

a group of financial liabilities or a group of financial assets and liabilities are measured at fair value

n accordance with a documented risk or investment strategy.

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Subsequent measurement

Subsequent measurement is based upon the category of the financial instrument.

Amortised cost

Financial liabilities are measured at amortized costs, so do lease liabilities as well, and also those parts of

financial liabilities which are held by the Group based on the business model for collecting contractual cash-

flows and contractual cash-flows consist solely payments of principle and interest on the principal amount

outstanding. Amortised cost is the original historical cost of the financial asset or liability decreased by the

principal payments increased or decreased by the accumulated amortised cost of the difference between

the original historical cost and the maturity cost and decreased by the possible impairment costs or loss of

value. Effective rate of interest method should be used, interest has to be accounted in P&L.

Debt instruments measured FVTOCI

The asset must be measure at fair value. Interest income, impairment and foreign exchange differences

must be accounted in P&L (similar to amortised cost assets). Fair value differences must be accounted in

OCI. When derecognizing the asset, the previously accounted loss or gain must be reclassified to P&L.

When reclassifying or derecognizing the asset, the previously accounted fair value differences accumulated

in equity must be reclassified to P&L in a way like the asset would have been measured by amortised cost

from initial recognition.

Equity instrument measured FVTOCI

Dividend can be recognised, if:

the entity is eligible for that,

economic benefits will flow to the entity and can be reliably measured.

Dividend has to be accounted in P&L, except when dividend is obviously partial return for the costs of the

investment, in which case it has to be accounted in OCI.

Fair value differences are accounted in OCI. Fair value differences accounted in OCI cannot be reclassified

to P&L later, even if the asset is impaired or sold.

Debt instruments measured FVTPL

Assets must be measured at fair value, and fair value differences must be accounted in P&L.

Fair value measurement

Based on market prices valid on the date of the statement of financial position without deducting transaction

costs. If such cannot be found, then based upon market price of similar assets, or based upon the cash-

flows deriving from the net assets of the investment.

Impairment of financial assets

The Group analysed whether how much credit loss on trade receivables should be raised based on ex-

pected credit loss of IFRS 9, and found that based on return of previous years’ trade receivables as impair-

ment on trade receivables will account to Statement on Profit and Loss and Other Comprehensive Income

(SPLOCI) 0.1% of gross value of trade receivables. The Group has significant number of trade debtors with

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governmental background, and the Group also ensures the inflow of trade receivables in the form of ad-

vances or other payment guarantees. General credit losses are not significant based on the Group’s as-

sessment, although based on individual trade debtors’ assessment the necessary impairment on trade

receivables is accounted.

Credit-loss accounted in previous years in proportion of value of gross receivables:

2017.12.31

2018.12.31 2019.12.31

2020.12.30

2021.12.31

0.12%

0.07%

0.09%

0.07%

Receivables by due date

Not overdue

More than 90 days overdue

Amount of write-off receivable

0,1%

Individually measured

De-recognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset

expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of

the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards

of ownership and continues to control the transferred asset, the Group recognises its retained interest in

the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all

the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the

financial asset and also recognises a collateralised borrowing for the proceeds received.

Taxation

The amount of company tax is based on the taxation obligation defined according to the law on corporate

income tax and dividend taxes, which is modified by the deferred tax.

Deferred taxes are calculated using the balance sheet liability method. Deferred taxes reflect the net tax

effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting

purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured

using the tax rates expected to apply to taxable income in the years in which those temporary differences

are expected to be realized or settled. The measurement of deferred tax liabilities and deferred tax assets

reflects the tax consequences that would follow from the manner in which the Group expects, at the balance

sheet date, to realize or settle the carrying amount of its assets and liabilities. The conditions of netting

deferred tax liabilities and deferred tax assets are met, as deferred tax arises only as deferred tax assets

and deferred tax liabilities under the legislation of Hungarian tax authorities.

Deferred tax assets are recognized only if it is probable that sufficient taxable profits will be available against

which the deferred tax assets can be utilized. At each balance sheet date, the Group re-assesses unrec-

ognized deferred tax assets and the carrying amount of deferred tax assets. The Group recognizes a pre-

viously unrecognized deferred tax asset to the extent that it has become probable that future taxable profit

will allow the deferred tax asset to be recovered. The Group conversely reduces the carrying amount of a

deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to

allow the benefit of part or that entire deferred tax asset to be utilized. The Company classifies the local

taxes and innovation contribution to corporate tax in profit and loss statement based on IAS 12 requirement.

Treasury shares

Shares repurchased are included in shareholders’ equity. Premiums and discounts arising on sale of treas-

ury shares, and differences on repurchase, are credited or debited to retained earnings.

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Revenue recognition

Applying IFRS 15 is compulsory for all the Companies applying IFRS from 1

January 2018. IFRS 15

defines a five step model to recognize revenue coming from the contracts with the clients, which – apart

from a few exceptions – irrespectively to the type of the transaction or the industry must be applied in all

cases. Rules of the standard must be applied for the sale of some non-financial assets as well, where such

sale is out of the standard business activity of the company. (E.g. sale of fixed assets or intangible assets.)

Revenue is recognized at the time goods are dispatched and services rendered by the Group, as this is the

point at which the significant risks and rewards of ownership of the goods and services are transferred to

the customer.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for

estimated customer returns, rebates and other similar allowances.

Revenue is separated into five different product segment by the Group. The management considers these

product segments strategically important. These segments are monitored and these are the basis of eval-

uating the performance. However, classification of turnover by product segments do not mean that these

products can be produced in a clearly separable way in terms of assets and liabilities. According to this

preparation of segment reporting under IFRS 8 is not possible.

Revenue from contracts with customers

The Group is in the business of providing printing and security printing solution services. Revenue from

contracts with customers is recognised when control of the goods or services are transferred to the cus-

tomer at an amount that reflects the consideration to which the Group expects to be entitled in exchange

for those goods or services. The Group has generally concluded that it is the principal in its revenue ar-

rangements.

Revenue from sale of printing solutions is recognised at the point in time when control of the asset is trans-

ferred to the customer, generally on delivery of the equipment at the customer’s location. The normal credit

term is 30 days upon delivery.

The Group considers whether there are other promises in the contract that are separate performance obli-

gations to which a portion of the transaction price needs to be allocated (e.g., warranties, customer loyalty

points). In determining the transaction price for the sale of printing solutions, the Group considers the effects

of variable consideration, existence of a significant financing component, noncash consideration, and con-

sideration payable to the customer (if any).

Variable consideration

If the consideration in a contract includes a variable amount, the Group estimates the amount of consider-

ation to which it will be entitled in exchange for transferring the goods to the customer. The variable con-

sideration is estimated at contract inception and constrained until it is highly probable that a significant

revenue reversal in the amount of cumulative revenue recognised will not occur when the associated un-

certainty with the variable consideration is subsequently resolved.

Rights of return

The Group uses the expected value method to estimate the variable consideration given the large number

of contracts that have similar characteristics. The Group then applies the requirements on constraining

estimates of variable consideration in order to determine the amount of variable consideration that can be

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included in the transaction price and recognised as revenue. A refund liability is recognised for the goods

that are expected to be returned (i.e., the amount not included in the transaction price). A right of return

asset (and corresponding adjustment to cost of sales) is also recognised for the right to recover the goods

from the customer.

Volume rebates

The Group applies either the most likely amount method or the expected value method to estimate the

variable consideration in the contract. The selected method that best predicts the amount of variable con-

sideration is primarily driven by the number of volume thresholds contained in the contract. The most likely

amount is used for those contracts with a single volume threshold, while the expected value method is used

for those with more than one volume threshold. The Group then applies the requirements on constraining

estimates of variable consideration in order to determine the amount of variable consideration that can be

included in the transaction price and recognised as revenue. A refund liability is recognised for the expected

future rebates (i.e., the amount not included in the transaction price).

Significant financing component

The Group applies the practical expedient for short-term advances received from customers. That is, the

promised amount of consideration is not adjusted for the effects of a significant financing component if the

period between the transfer of the promised good or service and the payment is one year or less.

Non-cash consideration

The fair value of such non-cash consideration received from the customer is included in the transaction

price and measured when the Group obtains control of the equipment. The Group estimates the fair value

of the non-cash consideration by reference to its market price. If the fair value cannot be reasonably esti-

mated, the non-cash consideration is measured indirectly by reference to the stand-alone selling price of

the fire prevention equipment.

Contract balances

Trade receivables

A receivable is recognised if an amount of consideration that is unconditional is due from the customer (i.e.,

only the passage of time is required before payment of the consideration is due).

Contract liabilities

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a

customer before the Group transfers the related goods or services. Contract liabilities are recognised as

revenue when the Group performs under the contract (i.e., transfers control of the related goods or services

to the customer).

Cost to obtain a contract

The Group pays sales commission to its employees for each contract that they obtain for sales of printing

solutions and services. The Group applies the optional practical expedient to immediately expense costs

to obtain a contract if the amortisation period of the asset that would have been recognised is one year or

less. As such, sales commissions are immediately recognised as an expense and included as part of em-

ployee benefits.

Dividend and interest revenue

Dividend revenue from investments is recognised when the shareholder’s right to receive payment has

been established (provided that it is probable that the economic benefits will flow to the Group and the

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amount of revenue can be measured reliably). (Dividend realized within the Group will be eliminated during

consolidation.)

Interest revenue is recognised when it is probable that the economic benefits will flow to the Group and the

amount of revenue can be measured reliably. Interest revenue is accrued on a time basis, by reference to

the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts

estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying

amount on initial recognition.

Provisions

The Group is involved in a low number of ongoing legal disputes. Based upon historical experience and

expert reports, the Group assesses the developments in these cases, and the likelihood and the amount of

potential financial losses which are appropriately provided for. The Group recognises provision in case

when:

an entity has a present obligation (legal or constructive) as a result of a past event;

it is probable that an outflow of resources embodying economic benefits will be required to settle

he obligation; and

a reliable estimate can be made of the amount of the obligation.

Contingent liabilities acquired in a business combination

Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition

date. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of

the amount that would be recognised in accordance with IAS 37 Provisions, Contingent Liabilities and

Contingent Assets and the amount initially recognised less cumulative amortisation recognised in accord-

ance with IFRS 15 Revenue.

Government grants

Assistance by the government in the form of transfers of resources to an entity in return for past or future

compliance with certain conditions relating to operating activities of the entity. Government grants are

mostly used by the Group to purchase assets, but in 2020 due to the COVID-19 pandemic also government

grants for covering losses were used. In case of purchasing assets the Group accounts government grants

based on income approach. Grants related to income should be recognised in the income statement on a

systematic basis that matches them with the related costs.

Segment reporting

The Group does not separate different segments based on IFRS 8 – Segment reporting, but revenue is

separated into five different product segment. The management of the Group considers these product seg-

ments strategically important. These segments are monitored and these are the basis of evaluating the

performance. However, classification of turnover by product segments do not mean that these products

can be produced in a clearly separable way in terms of assets and liabilities.

Earnings per share

Basic earnings per share data is calculated based on the weighted average number of shares outstanding

during the period excluding treasury held by the Company and employee shares. Fully diluted earnings per

share is calculated based on the weighted average number of shares outstanding as calculated for basic

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earnings per share and as adjusted for giving effect to the assumed issuance of all potentially dilutive

securities. Net income is adjusted in the fully diluted earnings per share calculation for any income or ex-

pense associated with the potentially dilutive securities.

Foreign currencies

In preparing the financial statements of the individual entities, transactions in currencies other than the

entity’s functional currency (HUF) are recorded at the rates of exchange prevailing at the dates of the trans-

actions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at

the rates prevailing at the balance sheet date. Exchange differences are recognised in profit or loss in the

period in which they arise.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s

foreign operations are expressed in Currency Units using exchange rates prevailing at the balance sheet

date. Income and expense items are translated at the average exchange rates for the period.

From the foreign subsidiaries of the Group Zipper Services S.R.L. prepares its financial statements in Ro-

manian Lei, Tipo Direct SERV S.R.L. in Moldavian Lei, while Slovak Direct S.R.O. prepares its financial

statement in EURO (presentational currency). The balances of foreign currency assets and liabilities of the

foreign subsidiaries of the Group are retranslated at the relevant MNB (National Bank of Hungary) foreign

exchange rate in the consolidated financial statements in the parent company’s presentational currency

(HUF), which is the functional currency of the Group at the same time. The details of the conversion have

been presented in table 27 Risk Management.

The effect of adopting new and revised International Financial Reporting Standards effective from

1 January 2022.

The following amendments to the existing standards and new interpretation issued by the International

Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period:

•

Amendments to IFRS 3 “Business Combinations”; IAS 16 “Property, Plant and Equipment”;

IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Annual Improvements (ef-

fective for annual periods beginning on or after 1 January 2022).

•

IFRS 16 “Leases” Rental contracts adjusted due to COVID-19 (effective for annual periods begin-

ning on or after 1 January 2022).

The adoption of these amendments to the existing standards has not led to any material changes in the

Group’s financial statements.

New and revised Standards and Interpretations issued by IASB and adopted by the EU but not yet

effective

•

IFRS 17 “Insurance Contracts” including amendments to IFRS 17 (effective for annual periods

beginning on or after 1 January 2023),

•

Amendments to IAS 8 “Accounting policies, Changes in Accounting Estimates and Errors” –

Definition of Accounting Estimates (effective for annual periods beginning on or after 1 January 2023),

•

Amendments to IAS 1 “Presentation of Financial Statements” and IFRS Practice Statement 2 -

Disclosure of Accounting policies (effective for annual periods beginning on or after 1 January 2023).

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•

IFRS 16 “Leases” Lease obligation and sale-and-lease back adjustments (effective for annual

periods beginning on or after 1 January 2022).

Standards and Interpretations issued by IASB but not yet adopted by the EU

At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the Interna-

tional Accounting Standards Board (IASB) except for the following new standards, amendments to the ex-

isting standards and new interpretation, which were not endorsed for use in EU as at [date of publication of

financial statements] (the effective dates stated below is for IFRS in full):

•

Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as Cur-

rent or Non-Current (effective for annual periods beginning on or after 1 January 2023),

•

Amendments to IAS 12 “Income Taxes” – Deferred Tax related to Assets and Liabilities arising

from a Single Transaction ((effective for annual periods beginning on or after 1 January 2023),

•

Amendments to IFRS 17 “Insurance contracts” Initial Application of IFRS 17 and IFRS 9 – Com-

parative Information (effective for annual periods beginning on or after 1 January 2023),

•

Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in As-

sociates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate

or Joint Venture and further amendments (effective date deferred indefinitely until the research project

on the equity method has been concluded),

•

IFRS 14 “Regulatory Deferral Accounts” (effective for annual periods beginning on or after 1 Jan-

uary 2016) - the European Commission has decided not to launch the endorsement process of this

interim standard and to wait for the final standard.

The Group anticipates that the adoption of these new standards, amendments to the existing standards

and new interpretations will have no material impact on the financial statements of the Group in the period

of initial application.

Critical accounting judgements and estimates by applying the accounting policy

The process of preparing financial statements in accordance with International Financial Reporting Stand-

ards requires the use of estimates and assumptions regarding the carrying amounts of assets and liabilities

presented in the consolidated financial statements and the Notes.

Critical assumptions by applying the accounting policy

The Management of the Group had certain assumptions when applying the accounting policy, that can

influence the carrying amounts of assets and liabilities presented in the consolidated financial statements

(apart from the impact of the estimates. presented at the next point). These assumptions are presented in

details in the Notes, but the most important ones are the following:

The temporary differences calculated with deferred tax liabilities will reverse in the foreseeable

future, and the corporate tax rate is 9%, which is effective from 1

January 2017.

The outcome of certain contingent liabilities.

Zipper Services Srl, and TipoDirect Moldva Srl are subsidiaries of the Group because the Group

owns a 60% ownership interest in these companies since 31

December 2021, while ATLAS

Trade Distribution SRL is a subsidiary of the Group since 15

February, 2022. Based on the

contractual arrangements between the Group and other investors, the Group also has the power

to appoint and remove the majority of the board of management of these companies that has the

power to direct the relevant activities of these companies. Therefore, the management of the

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Company concluded that the Group had and has the practical ability to direct the relevant activi-

ties of these companies unilaterally and hence the Group has control over these companies.

Since 31

December 2021 the Group has majority ownership as well beside control through

arrangements.

Uncertainties in the estimates

The process of preparing consolidated financial statements in accordance with International Financial Re-

porting Standards requires the use of estimates and assumptions regarding the carrying amounts of assets

and liabilities presented in the consolidated financial statements and the Notes. These estimates are based

on the best knowledge of the Management, in spite of this actual results may differ from estimated amounts.

These estimates are presented in details in the Notes, but the most important ones are the following:

Determining the fair value of Financial Instruments

Determining the economic useful life of fixed assets

Calculating the impairment loss on fixed assets and goodwill

Calculating provisions

The Ukrainian – Russian conflict

Apart from the global effect on the world economy of the Ukrainian – Russian conflict the Group does not

hold any investment neither in the Ukraine, nor in Russia, does not have any business partner neither in

the Ukraine, nor in Russia, so does not have direct relationship which could significantly influence the busi-

ness or operation or the IFRS financial statements of the Group.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Cash and bank

December 31,

2022

December 31,

2021

Cash and cash equivalents 6,393,330

1,297,507

Total cash and cash equivalents: 6,393,330

1,297,507

Balance of cash and cash equivalents at the end of the period is HUF 6,393 million, which is HUF 5,096

million higher than at the end of year 2021 due to the advance received from customer in connection with

the sales of Angolan passport system.

Accounts receivables

December 31,

2022

December 31,

2021

Trade receivables 5,634,926

5,686,174

Allowance for doubtful debts

(27,632)

(3,118)

Total: 5,607,294

5,683,056

The carrying value of trade receivables is fair value. Balance of trade debtors is HUF 5,607 million,

which is HUF 76 million lower than at the end of 2021.

Movement of the allowance in doubtful debts is broken down below:

December 31,

2022

December 31,

2021

Balance at the beginning of the year 3,118

2,902

Impairment losses recognised on receivables 24,514

1,438

Impairment losses reversed

(1,222)

De-recognition of receivables as uncollectable debt

Balance at the end of the year 27,632

3,118

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Inventories

December 31,

2022

December 31,

2021

Raw materials 5,118,640

2,439,544

Work in progress 1,746,709

1,349,298

Finished goods 1,117,948

1,016,004

Goods 125,895

42,402

Cumulated loss in value for inventories (*)

(1,622,134)

(1,568,636)

Total: 6,487,058

3,278,612

The total amount of inventories is HUF 6,487 million, which increased by HUF 3,208 million (98%)

compared to 31 December 2021. Balance of raw materials is higher by HUF 2,779 million, balance

of semi-finished product is higher by HUF 763 million due to higher raw material purchase prices.

(*) Inventory impairment is calculated on stocks item by item after judgement of the inventory item

based on its physical status and future usage and selling opportunities.

Other current assets and prepayments

December 31,

2022

December 31,

2021

Prepayments

203,400

218,622

Of which: revenue recognized but not invoiced

92,553

39,929

Of which: rental fee of softwares

76,390

39,785

Of which: other prepayment

34,457

78,748

Guarantee receivables

367,093

357,480

Advances paid

298,967

339,858

Of which: advances paid for PP&E

164,927

325,050

Of which: other advances paid

88,852

14,808

Employee loans

2,124

3,680

Other receivables

110,159

616,797

Of which: receivables due to sale of investment

371,952

Total other current assets and prepayments:

981,473

1,536,437

December 31,

2022

December 31,

2021

Other taxes receivable

94,044

16,397

Corporate income tax receivable

34,330

1,432

VAT receivable

33,265

62,848

Total current tax receivables

161,639

80,677

Year-end balance of current tax receivables is HUF 81 million higher than in previous period.

Interest in employees loans are the same for each employee, Hungarian prime rate + 5%.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Property, Plant and Equipment

Land and

buildings

Machinery

and

equipment

Property

rights

Vehicles and

other equip-

ments

Capital

projects

Total

Cost:

January 1,

2021

7,323,872

14,848,698

51,119

3,439,049

13,042

24,788,069

Capitalization

739,007

1,019,957

426,533

407,217

2,592,716

Disposals

1,063,035

40,335

1,103,370

Reclassifica-

tion

78,200

(78,200)

(344,214)

December 31,

8,062,879

13,996,109

51,119

3,747,047

76,046

25,933,200

January 1,

8,062,879

13,996,109

51,119

3,747,047

76,046

25,933,200

Capitalization

1,134,946

3,274,300

1,517

410,591

5,932

4,827,286

Increase due to

61,422

Disposals

4,801

509,780

267

79,538

594,386

Reclassifica-

tion

70,445

December 31,

2022

9,193,026

16,892,496

52,369

4,078,100

81,977

30,297,968

Accumulated

deprecia-

tion:

January 1,

2021

1,835,949

11,010,941

10,767

2,182,074

15,039,731

Charge for

325,086

1,053,506

331,969

1,710,561

Disposals

665,397

35,910

701,307

December 31,

2,161,035

11,399,050

10,767

2,478,133

16,048,985

January 1,

2022

2,161,035

11,399,050

10,767

2,478,133

16,048,985

Charge

for year

330,098

901,820

1,323

402,198

1,635,439

Disposals

2,400

400,725

1,878

69,206

470,453

December 31,

2,488,733

11,900,145

13,968

2,811,125

17,213,971

Net book

December 31,

2020

5,487,923

4,079,123

40,352

1,256,975

13,042

9,748,338

December 31,

2021

5,901,844

2,597,059

40,352

1,268,914

74,046

9,884,215

December 31,

2022

6,704,293

4,992,351

38,401

1,266,975

81,977

13,083,997

Fair value of the PP&E exceeds book value, therefore no impairment loss was calculated. Frame

mortgage right is registered on the real estates of ANY Ingatlanhasznosító Kft., covering the risk of

the loan of ANY Nyrt.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Right of use assets

Rights of use move-

ment table (values

in thousands of

HUF)

Property rights

Machinery and

equipment

Vehicles and

other equipments

Total

Cost:

January 1, 2021

133,500

1,556,173

324,573

2,014,246

Additions

320,415

Disposals 133,500

133,500

December 31, 2021

1,876,588

324,573

2,201,161

January 1, 2022

1,876,588

324,573

2,201,161

Additions

96,628

Disposals

December 31, 2022

1,876,588

421,201

2,297,789

Accumulated de-

preciation:

January 1, 2021

123,231

504,801

180,232

808,264

Charge for year

10,269

389,443

72,114

471,826

Disposals

133,500

December 31, 2021

894,243

252,346

1,146,590

January 1, 2022

894,243

252,346

1,146,590

Charge for year

479,887

92,755

572,643

December 31, 2022

1,374,130

345,102

1,719,232

Net book value:

January 1, 2021

10,269

1,051,372

144,341

1,205,983

January 1, 2022

982,345

72,227

1,054,572

December 31, 2022

502,457

76,100

578,557

Right of use assets were increasing due to the increase of leased assets of ANY Nyrt.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Current year acquisitions

Zipper Services SRL, member of the ANY Group acquired 100% quota share in Romanian company ATLAS

Trade Distribution SRL on 15

February 2022. Quota share was registered by the Romanian Trade Registry.

ATLAS SRL is a Bucharest located printing company, which effectively completes portfolio of Zipper with

its own contracts.

Non-controlling interest is taken into consideration by the Group in proportion of each non-controlling inter-

est compared to the fair value of the identifiable net assets of the acquired company.

Fair value of the assets and liabilities of the acquired company at the date of acquisition:

Fair value at the date of acquisition (in HUF

thousands)

Assets

Property, plants and equipment

61,514

Immaterial assets

332,222

Deferred tax assets

249

Inventories

43,397

Trade receivables

81,285

Cash and cash equivalents 53,833

Other receivables

33,576

Other assets 2,034

Total assets

608,110

Liabilities

Deferred tax liabilities

53,516

Trade payables 94,841

Loans and borrowings

26,606

Other liabilities

25,004

Total liabilities

199,967

Total identified net assets at fair value

408,143

From the date of acquisition until the end of the reporting period net sales consolidated to financial state-

ments of the acquired company were HUF 1,167,045 thousands, profit before tax was HUF 180,482 thou-

sands, while total FY 2022 net sales consolidated would have been HUF 1,315,616 thousands, profit before

tax would have been HUF 193,832 thousands, if the date of acquisition had been the starting date of the

reporting period.

Summary of consideration transferred at acquisition:

Breakdown of consideration (in HUF thou-

sands)

Cash consideration 466,278

Contingent consideration

12,574

Total consideration

478,852

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Contingent consideration consists a payment due on 31

May 2023, which is based on the average EBITDA

of the last three years of ATLAS. Based on the judgement of the Group and the management of Zipper the

probability of the payment is more than probable. Contingent consideration is classified as other short term

liability.

Goodwill arising from the acquisition was calculated by the Group as follows:

Values at the date of acquisition (in HUF

thousands):

Total consideration (+)

478,852

Value of non-controlling interest (+)

163,257

Fair value of net assets (-)

408,143

Goodwill

233,966

Cash-flows connected to the acquisition is summarized as follows:

Values at the date of acquisition (in HUF

thousands):

Cash consideration 466,278

Transaction costs directly attributable to acquisition

Net cash and cash equivalent acquired by ATLAS 53,833

Net cash-flow of the acquisition:

412,445

Transaction costs in connection with the acquisition are not significant, and the Group is not able to identify

and measure transaction costs separately from legal and other costs arising in course of normal business.

Goodwill

December 31,

2022

December 31,

2021

Zipper Services SRL. 276,231

276,231

ATLAS Trade SRL. 233,966

Gyomai Kner Nyomda Zrt. 26,994

26,994

Techno-Progress Kft. 20,509

20,509

Specimen Zrt. 12,123

12,123

Goodwill 569,823

335,857

The 5 five year term budgets used for the evaluation of the goodwill are reflecting the management’s best

knowledge and information about the expected conditions of the financial environment. The expected net

sales revenue growth rate is between 4-6% based on the financial achievement and market conditions.

Discount rate used is 8%. Detailed information about goodwill on ATLAS Trade SRL transaction can be

found in point 9.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Cost

December 31,

2022

December 31,

2021

Balance at the beginning of the year 335,857

335,857

ATLAS transaction 233,966

Balance at the end of the year 569,823

335,857

Accumulated impairment losses

At the end of the year the Group examined goodwill’s remunerative value and recognized that there

was no need to account impairment losses on the goodwill. When evaluating the goodwill the Group

uses 5 year plans and uses DCF method for EBITDA, which is adjusted by cash balance and net

debt balance resulting in final enterprise value. When applying 5 year budgets, first year budget is

approved, next years’ budgets are calculated by considering yearly 5% growth rate. This 5% growth

rate is the expected growth rate of subsidiaries by the parent company. Due to the events occurred

in the economy in FY 2022 discount rate was increased by the Group by 200 basis points compared

to previous year. Any further 100 basis point increase in the discount rate would result in a decrease

of recoverable amount by 2%. The Group considers the subsidiaries as CGU (cash-generation unit)

based upon their sizes, assets and operation.

Goodwill impairment indi-

cations calculated on

cash-

generation units

(CGU) in HUF thousands:

December 31,

2022

December 31,

2021

Recoverable

amount

Proportionate

part of carrying

value of CGU

Recoverable

amount

Proportionate

part of carrying

value of CGU

Zipper Services SRL. 2,333,267

778,583

1,562 574 662,107

ATLAS Trade SRL 413,835

412,484

Gyomai Kner Nyomda Zrt. 1,402,914

865,692

1,341 266 922,350

Techno-Progress Kft. 485,870

119,290

681 001 78,394

Specimen Zrt. 202,545

14,395

156 828 15,103

Net value of Goodwill 4,838,431

2,190,444

3,741 669 1,677,954

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Intangibles

Research and de-

velopment costs

Softwares

Value of con-

tracts

recognised

based on IFRS 3

Total intangibles

Historical

cost:

January

1, 2021

269,161

100,544

369,705

December

31, 2021

269,161

100,544

369,705

January

1, 2022

269,161

100,544

369,705

Additions

332,222

December

31, 2022

269,161

100,544

332,222

701,927

Accumulated amortisa-

tion:

January

1, 2021

268,172

100,544

368,716

Amortisation

989

December

31, 2021

269,161

100,544

369,705

January

1, 2022

269,161

100,544

369,705

Amortisation

84,607

December

31, 2022

269,161

100,544

84,607

454,312

Net

book value

January

1, 2021

989

December

31, 2021

December

31, 2022

247,615

Other payables tax liabilities, government grants and accruals

December 31,

2022

December 31,

2021

Accrued management bonuses 716,455

589,675

Other accruals

516,626

475,760

Of which: accrued creditors

146,801

56,707

Social security 64,373

233,895

Salaries and wages

408,340

180,576

Advance payments from customers*

7,643,161

36,147

Other short term liabilities 560,629

27,215

Other payables and accruals

9,909,584

1,543,265

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

*Based on the contract signed with the Angolan Ministry of Interior the Angolan Ministry of Interior trans-

ferred advance payment connected to the sales of passport system and passport booklets. The advance

payment is shown as cash and cash equivalent and advance payments from customers on line other pay-

ables and accruals.

December 31,

2022

December 31,

2021

VAT

775,243

576,015

Personal income tax

102,583

188,017

Social contribution

109,281

30,807

Other taxes

155,435

456,086

Total current tax liabilities

1,142,542

1,250,925

Total current tax liabilities, other payables and accruals amounts to HUF 11,052 million, which in-

creased by HUF 8,258 million compared to December 31, 2021.

Other accruals consists government grants accrued according to the following table:

December 31,

2022

December 31,

2021

Opening balance of accrued government grant:

213,012

259,739

Government grant posted to other income in current year:

36,652

46,727

Closing balance of accrued government grant:

176,361

213,012

Out of which long term part::

139,709

166,285

Out of which short term part:

36,652

46,727

Support received

Gyomai Kner Nyomda Zrt won government grant in PM/3935 subsidy project for purchasing innova-

tive, modern printing machine in 2020. The grant received was in amount of HUF 259,739 thousands

in 2020, out of which was accounted to SPLOCI in 2021 in value of HUF 46,727, in 2022 in value of

HUF 36,652 thousands parallel to the depreciation charged to SPLOCI in connection to the assets

purchased from the grant, so accrued balance of the grant was HUF 176,361 thousands as at 31

December 2022.

Short term and long term loans

December 31,

2021

Increase Decrease

December 31,

2022

Short term part of long term loan of Parent

Company

1,993,820 428,683 220,494 2,202,009

Other short term loans of subsidiaries

321,588

25,294

8,371

338,511

Total short term loans and overdrafts

2,315,408

453,977

228,865

2,540,520

Long term loan of Parent Company

2,865,575

3,407,673

2,060,323

4,212,925

Long term loan of subsidiary

221,959

77,097

144,862

Total loans and borrowings:

5,402,942

3,861,650

2,366,285

6,898,307

The Group has overdraft limit (market interest rate, based on 1 month BUBOR) in value of HUF 4.3

billion from which HUF 0.3 billion is secured by mortgage and sales revenue assignment.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Based on the overdraft limit contracts the available amount of overdraft can be used is HUF 4.3 billion.

For the long term loans mortgages of real estates and current assets were involved.

Share capital

Share capital (at par value, in HUF thousands) authorized, issued and outstanding at year-end:

December 31, 2022

December 31, 2021

Issued

Treasury

Issued

Treasury

Registered shares

1,449,876 43,986 1,449,876 43,986

Total 1,449,876 43,986 1,449,876 43,986

The number of shares issued by the Company is 14,794,650 of which par value is HUF 98 per share.

Treasury shares

Number of treasury shares held by the Company on 31

December 2022 is 448,842 which were

purchased at an average price of HUF 1,014 per share.

Retained earnings, non-controlling interest

Retained earnings available for distribution are based on the unconsolidated financial statements of

the Company prepared in accordance with IFRS and related Hungarian Accounting and Civil Law.

The amount of the retained earnings in the Company’s IFRS financial statement is HUF 7,888,003

thousands of which not distributable HUF 2,311,230 thousands. Retained earnings available for dis-

tribution is HUF 5,576,773 thousands.

Non-controlling interest is a part of the Shareholders’ equity, which belongs to the owners of the

subsidiaries other than the parent Company in the proportion of their ownership.

Non-controlling interest in HUF thousands

FY 2022

FY 2021

Opening balance

1,048,010

1,356,307

Dividend paid to minority shareholders (after FY 2021

income)

(498,738)

(218,791)

Profit after tax attributable to non-controlling interests

450,257

365,448

Effect of revaluation based on IAS 21

67,094

7,760

Changes connected to Direct Services transaction

(336,314)

Changes connected to Zipper Services transaction

(without changing ownership control)

(126,400)

Changes connected to Atlas transaction

163,256

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Closing balance 1,227,879 1,048,010

Net sales

Sales 2022 2021

Sales revenue from customer contracts 43,179,930 40,657,532

Total sales 43,179,930 40,657,532

Sales segments 2022 2021

Security products and solutions 15,292,099 10,579,350

Card production and personalization 13,302,257 16,227,288

Form production and personalization. data processing 11,366,285 10,858,361

Traditional printing products 2,106,850 1,815,532

Other 1,112,439 1,177,001

Total net sales 43,179,930 40,657,532

Total revenue in 2022 by countries:

Revenue by Countries 2022 2021

Hungary

27,095,453

26,193,318

Romania

10,369,121

8,259,803

Africa

2,894,648

3,113,880

Bulgaria

532,657

1,183,730

Slovakia

448,457

482,575

Germany

410,551

340,742

Austria

279,714

252,301

Norway

235,832

181,618

Moldova

165,207

176,235

Poland

129,547

129,382

Other European countries

454,158

310,136

Other countries of the world

164,585

33,812

Total:

43,179,930

40,657,532

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Other expenses, net

Other incomes and expenses 2022 2021

Received subsidy 38,415

46,727

Other items 27,058

77,104

Received discount 22,857

7,499

Reversed loss in value for inventories 20,257

5,000

Reversed loss in value for trade receivables 5,419

Total other incomes 114,006

137,891

Loss in value for inventories (*) 186,849

871,044

Permanent cash contribution 81,316

13,853

Fines, penalties 36,423

Building tax, land tax 29,985

30,874

Loss in value for trade receivables 24,508

1,438

Other items 113,600

27,195

Total other expenses 472,681

944,404

Total

(358,675)

(806,513)

he customers’ and inventories’ impairment haven’t been occurred in one company so the presen-

tation of current years’ impairment and impairment reversal on a net basis is not possible.

(*) Inventory impairment is calculated on stocks item by item after judgement of the inventory item

based on its physical status and future usage and selling opportunities.

Interest income / expenditure

2022 (thHUF) 2021 (thHUF)

Interest income 45,994

13,627

Interest expenditure (246,169)

(83,862)

Net profit on interest (200,175)

(70,235)

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Cost of sales and selling general and administration costs

Breakdown of cost of sales and selling general and administration cost is the following:

2022 (thHUF) 2021 (thHUF)

Material type expenditures 28,199,935

24,455,733

Personal type expenditures 9,739,651

9,596,627

Depreciation and amortization 2,047,169

1,711,550

Changes in inventory and own performance 601,527

(321,806)

Total cost and expenditures 39,385,228

35,442,104

Cost of sales 30,555,068

26,730,445

Selling general and administration 8,830,160

8,711,659

Total direct and indirect cost of sales 39,385,228

35,442,104

During the year 2022, 2,047 million depreciation was accounted for, which is 335 million (20%) higher

tha the base period value.

Cost of sales amounted to 30,550 million, compared to the last year’s figure 26,730 million.

Personal type expenditures amounted to 9,740 million, compared to the last year’s figure 9,597 mil-

lion.

Selling general and administration amounted to 8,830 million, compared to the last year’s figure 8,712

million.

The average number of employees of the Group during the year was 1,082 (2021: 991).

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Taxation

December 31,

2022

December 31,

2021

Current year local business tax 325,380 390,721

Current year corporate income tax 199,427 189,823

Innovation contribution 49,055 58,863

Current year tax expense 573,862 639,407

Deferred tax (income) / expense 117,722 270,176

Total tax expense 691,584 909,583

ased on the decision of the Hungarian Parliament, 9% corporate tax rate has to be applied for the

Hungarian companies from the calendar year of 2017. In case of the domestic subsidiaries we ap-

plied the new 9% corporate tax rate when calculating deferred tax. The tax liability of the foreign

companies of the Group is taken into consideration with the effective tax legislation of their country

of incorporation.

Under the tax legislation the Group is allowed to establish a tax-deductible development reserve.

Assets acquired using this reserve then do not qualify for tax depreciation up to the value of the

reserve. Therefore this is effectively a form of accelerated depreciation. Development reserves have

been established based on the Group’s current year and previous years pre-tax profit and a deferred

tax liability has been recognized on the deferred tax effect of the accounting and tax depreciation

difference of the assets. The Group decreased its deferred tax liabilities by the valuation difference

for treasury shares based on the Hungarian Accounting Standards.

Tax losses can be carried forward up to the next years offset future taxable profits (until its 50% and

5 years). Deferred tax assets relating to tax losses are netted off against deferred tax liabilities.

ANY PLC and its subsidiaries are subject to periodic audits by the Hungarian Tax Authority (NAV).

Since the application of tax laws and regulations may be susceptible to varying interpretations,

amounts reported in the financial statements could be changed at a later date upon final determina-

tion by the tax authorities. In 2020 the Parent Company was subject to a comprehensive audit by

NAV (National Tax and Customs Administration) for the years 2017 and 2018 to all kind of taxes. No

material misstatement was explored by the Tax Authority.

n line with IAS 12 Company reclassifies local income tax and innovation contribution to corporate

tax P&L line.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

December 31,

2022

December 31,

2021

Opening deferred tax liability

682,477

421,586

Deferred tax liability due to development reserve

127,405

240,717

Deferred tax on accounting and tax depreciation difference of assets not

connected to development reserve

3,979 (12,308)

ANY Ingatlanhasznosító Kft. revaluation reserve opening balance 2016

40,261

Depreciation accounted on ANY Ingatlanhasznosító Kft. revaluation re-

serve between 2017 and 2021

(7,778)

Depreciation accounted on ANY Ingatlanhasznosító Kft. revaluation re-

serve in 2022

(1,556)

Deferred tax liability arising from ATLAS transaction

40,063

Closing deferred tax liability

852,368

682,477

December 31,

2022

December 31,

2021

Opening deferred tax assets

13,484

22,769

Deferred tax asset on write-off for bad debts

448

(260)

Deferred tax asset on deferred yearly losses

(1,796)

(9,025)

Deferred tax asset arising from ATLAS transaction

249

Closing deferred tax assets

12,385

13,484

December 31,

2022

December 31,

2021

Opening deferred tax liability net

668,993

398,817

Closing deferred tax liability net

839,984

668,993

The effective income tax rate defers from the statutory income tax rate due to the following items:

December 31,

2022

December 31,

2021

Profit before tax and non-controlling interest

3,385,883

4,881,648

Tax at statutory rate of 9%(*)

304,729

439,348

Effect of the development reserve raised

(162,000)

(288,000)

Other permanent differences(**)

56,698

38,475

Corporate income tax expense

199,427

189,823

* The foreign tax rules were not considered in this calculation. The differences from that method can be find in row of Other

permanent differences (net). In this calculation 9% tax rate valid in 2021 has been applied.

** Other permanent differences are coming from tax base modification items, and from the different tax rates used abroad.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Other comprehensive income for the year

31 December, 2022

31 December, 2021

Revaluation effect of non-monetary SOFP items in other

currency than HUF based on IAS 21 (*)

137,932

16,672

Total other comprehensive income for the year

137,932

16,672

* Revaluation effect of increasing EUR fx exchange rate from consolidation

Earnings per share

Weighted average shares outstanding, net income used in the calculation of earnings per share and

calculated earning per share details are set out below: (number of weighted average shares and net

income is the same both at ‘Basic’ and ‘Fully diluted’ EPS calculation)

December 31,

2022

December 31,

2021

Weighted average shares outstanding for:

14,345,808

Net income used in the calculation

2,244,042

3,606,617

Basic and diluted earnings per share:

Basic (HUF per share)

156

251

Fully diluted (HUF per share)

156

251

Contingent liabilities

The Company has arranged bank guarantees. The guarantees largely relate to commitments under

Government and corporate tenders. Guarantees are provided up to a maximum limit of HUF 2,500 mil-

lion. The Company uses HUF 543 million from its guarantee limit which is connected to tenders.

The Group reclassified HUF 2,311 million to the restricted reserves, which has not been utilised yet.

Corporate tax base was decreased by this amount in line with the relevant Hungarian regulations under

the condition, that this amount will be spent for capital expenditures in the following six years, otherwise

the deducted corporate tax has to be repaid to the Hungarian Tax Authority grossed up with its fines

and interests.

The Group does not have any provisions.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Short term and long term part of lease liabilities

Leasing liabilities

expiry analysis (in

thHUF)

Leasing liabilities re-

lated to real estates

Leasing liabilities

related to machin-

ery and equipment

Leasing liabilities

related to vehicles

Total

Expired leasing li-

abilities in 2023:

229,871 57,935

287,807

Expired leasing li-

abilities in 2024:

53,007 4,875

57,882

Expired leasing li-

abilities in 2025:

24,938 1,403

26,341

Expired leasing li-

abilities in 2026:

25,616 391

26,007

Expired leasing li-

abilities in 2027:

2,166

Total:

335,599

64,604

400,203

Leasing liabilities

expiry analysis (in

thHUF)

Leasing liabilities re-

lated to real estates

Leasing liabilities

related to machin-

ery and equipment

Leasing liabilities

related to vehicles

Total

Expired leasing li-

abilities in 2023:

308,895 50,353

359,248

Expired leasing li-

abilities in 2024:

229,852 12,283

242,135

Expired leasing li-

abilities in 2025:

36,586

Total:

575,333, 62,636

637,969

Leasing interest

analysis (in thHUF)

Leasing interest

relating to real

estates

Leasing interest

relating to ma-

chinery and

equipment

Leasing interest

relating to vehi-

cles

Total

Leasing interest in

2022

12,031

3,630

15,661

Leasing interest in

2021

16,076

2,132

18,208

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Leasing obligation

movement table

(values in thou-

sands of HUF)

Leasing liabilities

related to real es-

tates

Leasing liabilities

related to machin-

ery and equipment

Leasing liabilities

related to vehicles

Total

January 1, 2021

14,173

726,097

155,123

895,392

Additions

320,415

Disposals

14,173

471,179 92,488 577,840

December 31, 2021

575,333

62,635

637,967

January 1, 2022

575,333

62,635

637,967

Additions

96,630 96,630

Disposals

239,734 94,661 334,395

December 31, 2022

335,599 64,604 400,203

Long term part of

closing balance

105,727 6,668 112,396

Short term part of

closing balance

229,871 57,935 287,807

SPLOCI items connected to leasing transac-

tion (in HUF thousands)

2022.12.31 2021.12.31

Depreciation charged of leased assets:

502,198

471,826

Interest expenses of lease liabilities: 15,661 18,208

Total costs / expenditures:

517,859

490,034

The book value of the leased assets is fair value. The estimated present value of the minimum

lease payments equals to the book value of the lease liabilities. Fixed assets are the cover in

Group’s leasing transactions.

Related party transactions

The Group purchased management services from EG Capital in value of HUF 190 million in 2022 (HUF 154

million in 2021).

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Remuneration of the members of the Supervisory Board and the Board of Directors

HUF 11,436 thousands remuneration was paid to the Supervisory Board, while HUF 6,120 thousands

to the Board of Directors in 2022.

The following table presents the beginning and the end of the assignment of the members of the

Board of Directors, the members of the Supervisory Board and the senior officers. The number of

shares hold in ANY Security Printing Company PLC is also presented as at 31 December 2022.

Type

Name Position

Assignment

started

Assignment

ends

ANY shares

owned (no.)**

BD Dr. Ákos Erdős

Chairman of Board of

Directors

1993* April 30, 2023 2,265,987

BD Gábor Zsámboki

Deputy chairman of

Board of Directors**

August 11, 2005* April 30, 2023 143,923

BD György Gyergyák

Member of Board of

Directors

1994* April 30, 2023 150,000

BD Péter Kadocsa

Member of Board of

Directors

April 30, 2010* April 05, 2020

BD Dr. Gábor Kepecs

Member of Board of

Directors

May 31, 2018 April 30, 2023

Tamás Erdős

Member of Board of

Directors

May 31, 2014 April 30, 2023 999,536

BD Erwin Fidelis Reisch

Member of Board of

Directors

May 31, 2014 April 30, 2023

SB Prof. Dr. István Stumpf

Chairman of Supervi-

sory Board

April 27, 2021*** May 31, 2024

SB Dr. Istvánné Gömöri

Deputy chairman of

Supervisory Board

August 11, 2005* May 31, 2024 536,703

SB Ferenc Berkesi

Member of Supervi-

sory Board

August 11, 2005* May 31, 2024

SB Dr. Imre Repa

Member of Supervi-

sory Board

March 30, 2007* May 31, 2024

SB Katalin Hegedűs

Member of Supervi-

sory Board

May 31,2020 May 31, 2024

SB László Hanzsek

Member of Supervi-

sory Board

May 31,2020 May 31, 2024

SB Gábor Kun

Member of Supervi-

sory Board

May 31,2020 May 31, 2024

Number of ANY shares hold, TOTAL:

4,096,149

Employee in a strategic position (SP), Board of Directors member (BD), Supervisory Board member (SB)

Dr. Ákos Erdős controls ANY shares indirectly through EG Capital LLC and Fortunarum Kft.

Tamás Erdős controls ANY shares indirectly through Digital Forest LLC.

Dr. Istvanné Gömöri controls ANY shares indirectly through BELU S.A.R.L.

* Re-elected by the Annual General Meeting held on 31

March, 2014

** Gábor Zsámboki has been the deputy chairman of the Board of Directors since 11

August, 2014.

*** Elected by the Board of Directors entitled with AGM rights on 27th April. 2020

Risk management

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.

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

ANY Group

Cur-

rency

December 31, 2022

December 31, 2021

Fair value

Carrying

amount

Fair value Carrying amount

Foreign currency

receivables

EUR 2,395,050 2,395,050

2,540,334 2,540,334

BGN

RON

35,250,377

31,862,322

MDL

4,027,770

662,422

DKK

27,638

SEK

USD

117,889

(1,337)

Total (in HUF thou-

sands)

3,934,002 3,934,002

3,326,175 3,326,175

Foreign currency

cash

EUR 7,295,995 7,295,995

1,167,049 1,167,049

USD

6,034,117

3,386

GBP

3,236

1,019

BGN

RON

9,103,299

7,417,506

MDL

12,681,411

3,602,436

DKK

SEK

Total (in HUF thou-

sands)

6,173,793 6,173,793

1,046,731 1,046,731

Foreign currency

liabilities

EUR 20,376,217 20,376,217

1,943,340 1,943,340

USD

156,062

2,300

CHF

16,062

29,959

BGN

RON

34,745,978

19,758,154

MDL

4,817,695

792,150

Total (in HUF thou-

sands)

11,125,585 11,125,585

2,220,832 2,220,832

Impact of a possi-

ble 1% foreign ex-

change rate de-

crease in each for-

eign currency (in

HUF thousands)

December 31,

2022

December 31,

2022

December 31,

2021

December 31, 2021

Impact on foreign

currency assets

1,010,780 1,010,780

43,778 43,778

Impact on foreign

currency liabilities

(1,112,559) (1,112,559)

(22,208) (22,208)

Total impact of

possible foreign

exchange rate

change

(101,779) (101,779) 21,569 21,569

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

The fair value of the financial instruments equals the book value. The Group holds no financial assets

held to maturity or available for sale.

Interest rate risk

Due to the moderate level of debts in the Group potential interest rate changes would not influence

significantly the amount of interests to be paid by the Group. Based on the balance of Credits of the

Group. a potential interest rate increase of 100 basis points relevant to our credits would increase

our interest expenses by approximately HUF 68,754 thousands in the year 2022. (This was HUF

54,029 thousands in the year 2021.)

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.

The maturity of trade payables, lease liabilities and credits is shown in the next table:

ANY Group

FY 2022

In 1

month

1 - 3

months

3 months - 1

year

1 - 5

years

Over 5

years

Total:

Trade payables

4,269,702

30,242

26,230

4,326,200

Lease liabilities

23,982

47,784

215,838

112,599

400,203

Credits

199,006

398,012

1,943,502

4,357,787

6,898,307

Other liabilities and

accruals (without taxes)

9,774,926

13,374

120,462 822

9,909,584

Current tax liabilities

1,142,028

514

1,142,542

Total

15,409,644

489,926

2,306,032

4,471,234

22,676,836

ANY Group

FY 2021

In 1

month

1 - 3

months

3 months - 1

year

1 - 5

years

Over 5

years

Total:

Trade payables

3,034,146

90,290

16,184

44,003

3,184,623

Lease liabilities

29,938

59,874

269,436

287,721

646,969

Credits

192,951

385,901

1,736,556

3,087,534

5,402,942

Other liabilities and

accruals (without taxes)

1,543,194

1,543,265

Current tax liabilities

1,250,925

Total

6,051,154

536,065

2,022,176

3,419,329

12,028,724

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

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 coun-

terparties, 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.

The financial discipline of the debtors of the Group is really good, which is also represented by the

low portion of cumulated provision on trade receivables compared to the gross amount of trade

receivables: 0.1%. (This was 0.07% in 2021.) The more than 90 days overdue receivables out of

total aged receivables of the Group is 0,3%.

Purchasing and selling of subsidiaries

NY Plc. purchased 50% share quota in Zipper Services SRL previously owned by Tipo Offset

SRL in value of EUR 1.8 million (HUF 668,160 thousands) on 13th December 2021, of which 40%

share quota in value of EUR 1.44 million (HUF 531.360 thousands) was sold to the general director

of Zipper Services SRL, so the parent company has 60% ownership in Zipper Services SRL as at

31st December 2021. ANY Plc had 50% ownership in Zipper Services Srl. and consolidated as a

subsidiary based on agreements even before the transaction, therefore due to the transaction non-

controlling interest decreased by HUF 126,400 thousands and retained earnings decreased by

HUF 10,400 thousands. These changes contain the changes related to TipoDirect SERV Srl. due

to the 100% ownership of Zipper Services Srl. in the Moldavian subsidiary.

ANY Plc. sold its 50% ownership stake in Direct Services OOD to the co-owner Power Solutions

OOD on 29th July 2021. The consideration received was EUR 2 million (HUF 717,620 thousands).

The following assets and liabilities were deconsolidated as a consequence of the Direct Services

OOD transaction:

Details of profit in sales of investment (Direct Services OOD)

Amounts (in HUF

thousands)

Consideration received: 717,620

Value of assets deconsolidated: (896,770)

Value of liabilities deconsolidated: 229,765

Decrease in non-controlling interest: 336,314

Decrease in other comprehensive income (reversed fx differences): 37,632

Decrease in retained earnings (reversed fx differences): 74,220

Profit on sales of investment: 498,781

n connection to ATLAS transaction cash consideration transferred was HUF 466,278 thousands

until 31

December 2022, which was deducted by HUF 53,833 thousands carrying value of cash and

cash equivalents of ATLAS. (Further details about ATLAS transaction can be found in point 9.)

A N Y S E C U R I T Y P R I N T I N G C O M -

P A N Y P L C . A U D I T E D C O N S O L I -

D A T E D F I N A N C I A L S T A T E M E N T S

A N Y S E C U R I T Y P R I N T I N G C O M P A N Y P L C

Halom utca 5, Budapest 1102, Hungary | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Significant events after the reporting period

Decisions of the 22

March 2023 Board of Directors’ meeting

The Consolidated Financial Statements were accepted by the Board of Directors of ANY Nyrt.

on 22

March, 2023. The Board of Directors proposes HUF 156 dividend per share to

the shareholders on the annual general meeting to be held in April 2023.

Budapest, 22

March 2023 ............................................................................

ief Executive Officer

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

ANY Security Printing Company Public Limited Company by Shares

Consolidated business report

for the year ended 31 December, 2022

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Analysis of the Group’s performance in FY 2022

Net sales of ANY PLC for 2022 amounted to HUF 43.2 billion which is higher by HUF 2.5 billion (6%)

than in the previous year. Changes in case of strategic product segments were as follows: sales of

security products, solutions were HUF 15.3 billion, which is HUF 4.7 billion (45%) higher than the figure

in the basis period; data processing were HUF 11.4 billion, which is HUF 0.5 billion (5%) higher than

the figure in the basis period, whilst sales of card production, personalisation were HUF 13.3 billion.

Ratio of strategic products segments in total net sales was 93% in 2022.

Export sales amounted to HUF 16.1 billion as at December 31, 2022, which is HUF 1.8 billion higher

than in the previous year, representing 37% export sales ratio. Consolidated EBITDA is HUF 5,633

million. Consolidated operating income is HUF 3,586 million. Consolidated net income after interest

income, taxation and non-controlling interest is HUF 2,244 million.

Income statement analysis

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

1. Table: Net sales by segments

Sales segments

2021 HUF

millions

2022 HUF

millions

Change

(B-A)

Change %

(B/A-1)

Security products and solutions

10,579

15,292

4,713

44.55%

Card production and personalization

16,227

13,302

(2,925)

-18.03%

Form production and personalization, data

processing

10,858 11,367 509 4.69%

Traditional printing products

1,816

2,107

291

16.02%

Other 1,177 1,113 (64) -5.44%

Total net sales

40,657

43,181

2,524

6.21%

ANY PLC had consolidated net sales of 43,181 million in 2022, which is HUF 2,524 million (6%) higher

than the sales for the base period.

Sales of security products and solutions came to HUF 15,292 million in 2022 which means an in-

crease of HUF 4,713 million (45%) compared to the base period. The increase is mainly due to the

election ballots printed with security elements, other printed forms and security documents.

The Company’s revenues from card production and personalisation totalled HUF 13,302 million in

the period of reference. The higher base period value was due to the sales revenue of the security

documents accounted for in 2021.

The Company’s revenues from form production, personalisation and data processing came to HUF

11,367 million in 2022, HUF 509 million (5%) higher than the sales for the base period. The change

derives from higher volume of printed forms in export sales.

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

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Sales of traditional printing products amounted to HUF 2,107 million in the period of reference, which

means a HUF 291 million (16%) increase compared to the previous year’s similar period. Higher volume

of book orders is behind the change.

Other sales totalled HUF 1,113 million in 2022, which is a decrease of HUF 64 million compared to the

correspondent period of the last year. This segment mainly comprises revenues from the sale of com-

mercial materials and goods.

Operating income came to HUF 3,586 million, a decrease of HUF 867 million (20%) compared to the

previous period.

Gross profit totalled HUF 12,625 million, which means a 29% gross margin. General (SG&A) expenses

amounted to HUF 8,830 million in 2022, which equals to 20% of net sales.

Material expenses amounted to HUF 28,200 million, higher by HUF 3,744 million (15%) in the current

period due to increased raw material prices, mediated services and the higher turnover.

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 9,740 million, which is HUF 164 million higher than in the base period.

EBITDA amounted to HUF 5,633 million due to the change in operating income and depreciation, which

represents a decrease of HUF 1,136 million compared to previous period’s EBITDA. Therefore EBITDA

margin is 13%.

Net interest income amounted to -175 million HUF in 2022. Net income – after financial operations,

taxation and minority interest – came to HUF 2,244 million in 2022, which is HUF 1,363 million (38%)

lower in the base period.

Balance sheet analysis

The Company had total assets of HUF 34,128 million on 31 December 2022, which increased by HUF

11,069 million compared to the previous year-end.

Receivables amounted to HUF 5,607 million which represents a HUF 76 million decrease compared to

the 2021 year-end.

Cash and bank totalled HUF 6,393 million which represents a HUF 5,096 million increase compared to

the 2021 year-end balance due to the advance payment received in connection with the sale of the

Angolan passport system.

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

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Inventories totalled HUF 6,487 million, which is a HUF 3,208 million (98%) increase compared to the 31

December 2021 figure mainly due to raw materials and increased work-in progress and semi-finished

products.

Other current assets and prepayments amounted to HUF 1,143 million, which is increased by HUF 474

million compared to previous year-end mainly due to the decrease in the balance of advance payments

granted and other receivables.

The balance of property, plant and equipment at the end of December 2022 was HUF 13,084 million,

an increase of HUF 3,200 million compared to the end of 2021 due to the investments made in the

framework of the HIPA tender and due to the KBA Mini Orlof Intaglio purchased last quarter.

Goodwill amounted to HUF 570 million which is a HUF 234 million increase compared to the 31 Decem-

ber 2021 figure due to the purchase of shares of Atlas Trade Distribution SRL.

Accounts payable totalled HUF 4,326 million, HUF 1,142 million (36%) higher compared to the end of

December 2021 due to the higher turnover.

Other payables and accruals amounted to 11,052 million, which is increased by HUF 8,258 million com-

pared to the 31 December 2021 figure mainly due to advances received from customer in connection

with the sale of the Angolan passport system.

Lease liabilities relating to the purchase of fixed assets have a balance of HUF 400 million, from which

HUF 112 million is long-term part, HUF 288 million is short-term liability.

Balance of long-term loans totalled HUF 4,358 million which represents a HUF 1,270 million increase

compared to the 2021 year-end. The Company’s operation is financed by short term loans, which

reached HUF 2,541 million on 31 December, 2022, out of which short term part of long term loan is HUF

2,209 million.

Risk management

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. The balance of foreign currency

receivables and liabilities are almost the same within the Group, therefore the foreign currency risk of

the Group is not significant.

Interest rate risk

ue to the moderate level of debts in the Group. potential interest rate changes would not influence

significantly the amount of interests to be paid by the Group. Based on the balance of Credits of the

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

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Group. a potential interest rate increase of 100 basis points relevant to our credits would increase our

interest expenses by approximately HUF 68,754 thousands in the year 2022. (This was HUF 54,029

thousands in the year 2021.)

Liquidity risk

e Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve bor-

rowing facilities, by continuously monitoring forecasts and actual cash-flows and by matching the ma-

turity profiles of financial assets and liabilities.

Liquidity risk of the Group, due to the high balance of net working capital, is low.

Credit risk

redit 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.

The financial discipline of the debtors of the Group is really good, which is also represented by the low

portion of cumulated provision on trade receivables compared to the gross amount of trade receivables:

0.01%. (This was 0.07% in 2021.) The more than 90 days overdue receivables out of total aged receiv-

ables of the Group is 0.03%.

Supplementary information for the business report of ANY Group

The Company’s employment policy

ANY Group places high priority on keeping labour law, labour safety, employment, tax and social insur-

ance regulations connected to working. The Group considers the employees’ continuous training and

education as of strategic importance in order to ensure the renewal of professional knowledge within

the Group and the adaptability of employees. ANY Group gives wide scale of social benefits to its em-

ployees, helping to create the balance between private life and the workplace. The principles of benefits

and wages are set out in the Collective Agreement. Besides keeping the regulations, the Group is trying

to create a workplace with proper working relations, taking the family obligations into consideration which

increases the Group’s profitability on the long term as well.

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Environment protection

The parent company has ISO 14000:2005 Environmental Control System certificate audited by Det-

Norske Veritas. The expiry date of the certification is January 11, 2025. The environmental certificate

covers the following fields: printed products, security products, documents, development, production

and personalization of plastic cards and bankcards. Research and development and production of se-

curity materials. Electronic reprocessing and delivering of printed forms. Chip embedding and encoding

at smart cards. Research and development of traditional/general and mobile information technology

solutions, operation and support of connected services. Electronic archiving of data, data processing,

database management, setting up archives, storing of documents for fee.

Dangerous waste is continuously eliminated after leaving the company sites. In 2022, 12,919 kg dan-

gerous waste was transported and eliminated. The parent company has being awarded Green Printing

House Award for twelve consecutive years this year.

Research and development

The parent company has two significant R&D areas:

1, R&D projects included in the activity of the Document Security Laboratory. The nanotechnology pro-

ject has a key importance in this area. Using nanotechnology in security inks may contribute to drawing

back forgeries and the fight against black economy.

2, The development of products has a significant role related to new tenders.

The direct cost of basic research, applied research and experimental development incurred in the cur-

rent year is HUF 84 million.

Significant events after the reporting period

The Consolidated Financial Statements were accepted by the Board of Directors of ANY Group on 10

March, 2023.

Treasury shares in FY2022

2. Table: Treasury shares

Description

Number of

Nominal value

(HUF thou-

sands)

Purchase

value (HUF

thousands)

Opening balance as at 1 January, 2022

448,842

43,987

455,048

Closing balance as at 31 December, 2022

448,842

43,987

455,048

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Number of treasury shares held by the Group on 31st December 2022 is 448,842 which were purchased

at an average price of HUF 1,014 per share.

The Group’s total share equity was HUF 1,449,876 thousands on 31 December 2022 which consists of

14,794,650 pieces of series ‘A’ registered, dematerialized ordinary shares with a nominal value of HUF

98 each.

Competence, election and removal of corporate officers

Statutes effective from 31

March 2014 of ANY Security Printing Company PLC point 10.10 prescribes

the competence of the General Meeting, of which point ‘d’ regulates the election (simple majority of the

votes of the shareholders present) and the removal (three-quarters of the votes of the shareholders

present) of the corporate officers (Members of the Board of Directors, Members of the Supervisory Board

or Members of the Audit Committee).

Competence and operation is regulated in point 12 of the Statutes for the Board of Directors is, while

point 14 for the Supervisory Board and point 15 for the Audit Committee.

Purchase of treasury shares is regulated by point 9.3 of Statutes, according to which General Meeting

authorises the Board of Directors for purchasing treasury shares of the Company by simple majority of

the votes of the shareholders present. The Board of Directors authorises the management for purchas-

ing treasury shares of the Company by simple majority of the votes of the Board members present. The

regulation effective at present in connection with purchasing treasury shares is the General Meeting

Resolution No 11/2015 (20th April).

Statutes effective of the ANY Security Printing Company PLC can be found on the website of the Com-

pany under the link of Investors.

(https://www.any.hu/wp-content/files_mf/1557324630ANY_Statutes_20200408.pdf

)

Modification of the Statutes

Statutes effective from 31

March 2014 of ANY Security Printing Company PLC point 10.10 prescribes

the competence of the General Meeting, of which point ‘a’ regulates the modification of the Statutes,

which is connected to three-quarters of the votes of the shareholders present.

Statutes effective of the ANY Security Printing Company PLC can be found on the website of the Com-

pany under the link of Investors.

(https://www.any.hu/wp-content/files_mf/1557324630ANY_Statutes_20200408.pdf

)

C O N S O L I D A T E D B U S I N E S S

R E P O R T F O R T H E Y E A R E N D E

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

Structure of shareholders over 5% share

3. Table: Structure of shareholders

Investor

Voting right

(%)

Ownership

(%)

Owners above 5% share

EG CAPITAL LLC(*) 11.98% 11.62%

DIGITAL FOREST LLC(**) 6.97% 6.76%

AEGON ALFA SZÁRMAZTATOTT ALAP 8.87% 8.60%

Owners below 5% share

Domestic Institutional Investors

28.94% 28.06%

Foreign Institutional Investors

10.75% 10.42%

Foreign Individual Investors

0.54% 0.52%

Domestic Individual Investors

28.53% 27.66%

Management, employees

2.42% 2.34%

Treasury shares

0.00% 3.03%

Other

1.00% 0.99%

(*) The Chairman of the Board of Directors of ANY Security Printing Company PLC as owner of EG Capital LLC

has a further indirect ownership through Fortunarum Kft (3.22%).

(**) Indirect ownership of Tamás Erdős, member of the Board of Directors of ANY Security Printing Company PLC

based on the AGM held on 31

March, 2014.

Budapest, 22

March 2023

............................................................................

ief Executive Officer

S T A T E M E N T O F R E S P O N S I B I L I T Y

A N Y B I Z T O N S Á G I N Y O M D A N Y R T .

1102 Budapest, Halom utca 5. | 1475 Budapest. Pf.: 116

+36 1 431 1200 | info@any.hu | www.any.hu

STATEMENT OF RESPONSIBILITY

Gábor Zsámboki, as the CEO of ANY Security Printing Company Plc., I hereby declare that the consol-

idated annual report based on the applicable accounting rules and on our best knowledge gives a true

and fair view about the assets, liabilities, financial position, profit and loss of the issuer and the legal

entities involved into the consolidation, furthermore the consolidated management report gives a true

and fair view about the position, development, and achievement of the issuer and the legal entities in-

volved into the consolidation while reviewing the main risks and uncertainty factors.

Budapest, 22

March 2023 ............................................................................

ief Executive Officer