Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Contents

Abbreviations used in the financial statements ....................................................................................... 6

Consolidated Financial Statements......................................................................................................... 7

Consolidated Balance Sheet ................................................................................................................... 8

Consolidated Cash Flow Statement ........................................................................................................ 9

Consolidated Statement of Changes in Equity...................................................................................... 11

II. Key elements of the accounting policy; basis of preparation of financial statements ....................... 12

Basis of the preparation of financial statements and the entity’s ability to continue as a going

concern.................................................................................................................................................. 12

Declaration on conformity with the IFRSs ................................................................................ 12

Contents of the financial statements ........................................................................................ 12

Basis of preparing the financial statements; applied set of rules and the underlying

presumptions; evaluation philosophy ....................................................................................... 12

Presentation of the Group and the Accounting policies related to consolidation ..................... 12

The basis of the consolidation .................................................................................................. 12

Non-controlling interest............................................................................................................. 13

Rules for consolidation ............................................................................................................. 13

Determination of acquired net assets....................................................................................... 14

Goodwill .................................................................................................................................... 14

Measurement period................................................................................................................. 14

Presentation of the Group (headquarters of operation, legal form, ownership structure,

governing law) .......................................................................................................................... 15

Presentation currency and accuracy of the financial statements ............................................. 19

3. Essential elements of the accounting policy...................................................................................... 19

Presentation of the financial statements................................................................................... 19

Essential decisions related to the presentation ........................................................................ 19

Foreign Currency...................................................................................................................... 20

Accounting policies related to the income statement ............................................................... 20

General accounting policies related to cash flow ..................................................................... 33

III. Significant estimates used in preparing the financial statements and other sources of uncertainties

IV. Changes in the accounting policy, expected impact of the IFRS and IFRIC interpretations not yet in

force on the date of the financial statements, previous applications..................................................... 35

V. Supplementary notes to the Comprehensive Income Statement ..................................................... 37

A. Profit or loss from continuing operations........................................................................................... 37

1. Revenue............................................................................................................................... 37

2. Direct operating expenditures............................................................................................... 37

3. Administrative and sales expenditures................................................................................. 39

4. Other revenues and expenditures ........................................................................................ 40

5. Financial revenues and expenditures................................................................................... 41

6. Gain or loss on disposal of subsidiary.................................................................................. 41

7. Income tax expenditure ........................................................................................................ 41

B. Profit or loss from discontinued operations....................................................................................... 42

Sales revenue from discontinued operations ........................................................................... 43

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Direct operating expenditures from discontinued operations ................................................... 43

Administrative expenditures from discontinued operations...................................................... 43

Costs of sales from discontinued operations............................................................................ 43

Other revenues and expenditures from discontinued operations............................................. 43

Financial revenues and expenditures from discontinued operations ....................................... 44

Income tax expenses from discontinued operations ................................................................ 44

VI. Supplementary notes to the balance sheet...................................................................................... 45

9. Goodwill, negative goodwill ............................................................................................................... 45

10. Right-of-use assets.......................................................................................................................... 46

11. Other intangible assets.................................................................................................................... 47

12. Investment properties...................................................................................................................... 48

13. Properties ........................................................................................................................................ 50

14. Plant, fixtures and equipment.......................................................................................................... 51

15. Trade accounts receivable .............................................................................................................. 51

16. Receivables from other companies................................................................................................. 52

17. Other receivables and prepayments and accrued income.............................................................. 52

18. Cash and cash equivalents ............................................................................................................. 52

19. Subscribed capital ........................................................................................................................... 53

20. Share premium ................................................................................................................................ 53

21. Treasury shares............................................................................................................................... 54

22. Proprietary transactions................................................................................................................... 54

23. Accumulated exchange difference .................................................................................................. 55

24. Liabilities from loans (long- and short-term).................................................................................... 55

25. Provisions ........................................................................................................................................ 56

26. Deferred tax assets and liabilities and subsequently payable taxes............................................... 57

27. Deferred purchase price of the acquisition...................................................................................... 58

28. Trade accounts payable .................................................................................................................. 58

29. Other short-term liabilities and accruals.......................................................................................... 58

30. Income tax liability ........................................................................................................................... 59

31. Earnings per share (EPS), EBITDA ................................................................................................ 60

32. Fair value hierarchy of financial assets and liabilities ..................................................................... 61

VII. Other disclosures ............................................................................................................................ 63

33. Impact of the purchase of equity interests on the cash-flow of the Group in the reporting year..... 63

34. Operating segments ........................................................................................................................ 63

35. Transactions with related parties..................................................................................................... 66

36. Dividend paid by the subsidiaries.................................................................................................... 67

37. Description of risks and sensitivity analysis .................................................................................... 67

38. Disclosures due to interests in other entities................................................................................... 70

39. Material events after the reporting period; dividend proposed........................................................ 71

40. Disclosures related to Auditor.......................................................................................................... 71

41. Disclosures related to the provider of accounting services............................................................. 71

42. Statements ...................................................................................................................................... 71

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

43. Authorisation of the publication of the financial statements ............................................................ 71

The Consolidated Financial Statements comprise 71 pages.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Abbreviations used in the financial statements

IAS

IFRS

IFRIC/SIC

International Accounting Standards

International Financial Reporting Standards

International Financial Reporting Interpretation Committee/Standing

Interpretation Committee

FVTOCI

FVTPL

CODM

EPS

Measured at fair value through other comprehensive income

Measured at fair value through profit or loss

Chief Operating Decision Maker

Earnings per share

Audit Committee

ECL

EBITDA

Expected credit loss

Interest, depreciation and profit or loss before tax

Figures in brackets indicate negative values in the financial statements!

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Consolidated Financial Statements

Consolidated comprehensive income statement for the period of 365 days that ended on 31

December 2021

01.01.2021 –

31.12.2021

22 137 928

(20 066 173)

2 071 755

(768 610)

(172 158)

(253 274)

7 161

01.01.2020 –

31.12.2020

182 940

(191 186)

(8 246)

(62 037)

(16 930)

80 433

59 972

53 192

(3 915)

49 277

COMPREHENSIVE INCOME STATEMENT

Comments

Revenue

Direct expenditures

Gross profit or loss

Administrative and sales expenditures

Other expenditure, net

Financial expenditures, net

Income from the sale of subsidiaries

Profit or loss before tax

Income tax expenditure

Net profit and loss

(1)

(2)

(3)

(4)

(5)

(6)

884 874

(299 611)

585 263

(7)

Share attributable to the owners of the parent

company

Share attributable to non-controlling interest

Exchange difference

585 263

(1 127)

50 888

(1 612)

(6 447)

Other comprehensive income (after income

tax)

Total comprehensive income from continuing

operations

Share attributable to the owners of the parent

company

Share attributable to non-controlling interest

Profit or loss from discontinued operations

Share attributable to the owners of the parent

company from discontinued operations

Share attributable to non-controlling interests

from discontinued operations

Earnings per share (HUF)

Earnings per share from discontinued

operations in HUF

Diluted earnings per share (HUF)

Earnings per share from discontinued

operations in HUF

(1 127)

(6 447)

42 829

(A)

(B)

584 136

(569)

44 441

(1 612)

3 045

(569)

2 253

792

1,53

17,90

(31)

(0,02)

17,90

0,09

1,53

(0,02)

0,09

EBITDA

1 852 916

237 515

The Statement of Comprehensive Income contains the items with regard to sign!

The Notes to Financial Statements form integral part of the Financial Statements.

References in brackets refer to Sections V-VII of the Financial Statements.

Certain comparative figures are presented again in these statements.

Budapest, 16 March 2022

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Consolidated Balance Sheet

for 31 December 2021

ASSETS

Comments

31.12.2021

22 709 733

12 303 271

5 645 354

431 975

29 488

31.12.2020

Non-current assets

Value of customer relations

Goodwill

4 803 393

(8)

(9)

265 735

Right-of-use assets

(10)

(11)

(12)

(13)

(14)

Other intangible assets

Investment properties

Properties

Plant, fixtures and equipment

Current assets

Trade accounts receivable

Receivables from other companies

Other receivables and prepayments and accrued

income

Cash and cash equivalents

Total assets

4 203 456

30 840

4 537 260

398

1 793 098

6 660

65 349

10 265 233

7 610 503

(15)

(16)

1 664 108

(17)

(18)

1 330 403

1 324 326

32 974 966

51 072

71 258

6 596 491

EQUITY AND LIABILITIES

Equity

Comments

2021.12.31

5 910 168

2020.12.31

5 599 773

Subscribed capital (the nominal value of the

shares is HUF 25/piece)

Share premium

Retained earnings

Treasury shares

Proprietary transactions

Accumulated exchange difference

Equity attributable to owners of the parent

company

(19)

(20)

833 880

5 479 954

190 923

(380 300)

(206 640)

(7 649)

833 880

5 479 954

(396 725)

(70 300)

(240 514)

(6 522)

(21)

(22)

(23)

5 910 168

5 599 773

Long-term liabilities

Long term bank loans

Received long-term loans

Provisions

Deferred tax liabilities

Long-term lease liabilities

Deferred purchase price of the acquisition

Short-term liabilities

Short term loans and borrowings

Trade accounts payable

18 501 548

11 300 953

272 207

291 273

1 578 587

228 528

4 830 000

8 563 249

746 035

911 291

462 246

(24)

(25)

(26)

(14)

(27)

449 045

85 427

54 311

2 403

(24)

(28)

3 474 740

Other short-term liabilities and accruals

Income tax liabilities

Short-term lease liabilities

Equity and liabilities

(29)

(30)

(14)

4 073 839

53 906

214 730

25 748

2 965

32 974 966

6 596 491

The Notes to Financial Statements form integral part of the Financial Statements.

References in brackets refer to Sections V-VII of the Financial Statements.

Budapest, 16 March 2022

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Consolidated Cash Flow Statement

for 365 days ending on 31 December 2021

Designation

Comments

31.12.2021

31.12.2020

Profit or loss before tax

Net interest expenditure

Non-cash items

884 305

267 582

58 318

1 976

Depreciation

714 769

(4 321)

(10 456)

(1 370)

103 890

(3 799)

Profit/loss impact of exchange loss

Profit/loss impact of expected credit loss

Interest income

(7 453)

(8 784)

(59 972)

Profit/loss impact of the sale of investment properties

Profit/loss impact of the sale of subsidiaries

Changes of provisions

(7 161)

176 326

(3 056)

864 732

Gain on sale of fixed asset

Non-cash items – Total

23 882

Changes in working capital

Changes of trade receivables

(3 860 940)

200 329

(46 280)

(541 048)

(1 088)

Changes in other current assets and accruals

Changes in receivables from suppliers

Changes in other short-term liabilities and accruals

Total net changes in working capital

1 922 138

(563 715)

(2 302 188)

302 763

(285 653)

Interest paid

(260 524)

(303 368)

(849 461)

(1 519)

(22 677)

Income tax paid

Net cash flow from operating activities

(225 673)

Amounts paid for the acquisition of equity

interests less liquid assets received

Acquisition of tangible assets

Gain on sale of fixed asset

Received interest

(33)

(10 939 262)

(3 992)

3 623

(151 964)

15 825

1 370

5 929

Amount received for subsidiary net of cash

transferred

(300)

(47 060)

Repayment of granted loans

1 664 108

Continued on next page.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Net cash flow from investment activities

Loan repayment

(9 262 251)

(471 030)

(189 472)

(14 528)

420 050

Borrowing

12 000 000

(159 346)

Execution of lease liabilities

Net cash flow from financing activities

11 369 624

405 522

Change in liquid assets

1 257 912

(4 844)

(9 623)

(720)

Revaluation of foreign currency assets

Balance-sheet change in liquid assets

1 253 068

(10 343)

Cash and cash equivalents at the beginning of

the year

71 258

80 881

Cash and cash equivalents at the end of the

period

1 324 326

71 258

The cash flow statement contains the items with regard to sign.

The Notes to Financial Statements form integral part of the Financial Statements.

Consolidated Statement of Changes in Equity

for 365 days ending on 31 December 2021

Equity

attributable

to owners

of the

Accumulated

exchange

difference

Non-

controlling

interest

Subscribed Share

Retained Treasury Proprietary

Designation

Total

capital

premium earnings shares transactions

parent

company

31.12.2019

Adjustment of the profit for the year

(restatement)

82 017

(76)

5 944 732

2 955

Comprehensive income for the year

Acquisitions of subsidiaries

Own share transactions

Acquisition of non-controlling interest

Derecognition of non-controlling

interest

47 871

(70 300)

(322 531)

47 051

(40)

(70 300)

54 318

(6 447)

(820)

(40)

(70 300)

(322 531)

(13 388)

31.12.2020

Comprehensive income for the year

Sale of subsidiaries

Own share transactions

(240 514)

(6 522)

(1 127)

5 602 728

583 567

33 874

(310 000)

5 910 169

5 602 727

583 567

33 874

(310 000)

5 910 169

584 694

33 874

31.12.2021

(206 640)

(7 649)

The Statement of Changes in Equity contains the items with regard to sign.

The Notes to Financial Statements form integral part of the Financial Statements.

Budapest, 16 March 2022

190 923

(380 300)

(310 000)

(70 300)

(393 771)

(451 045)

833 880

5 479 954

833 880

5 479 954

833 880

5 479 954

25 550

5 970 282

(11 301)

(333 832)

II. Key elements of the accounting policy; basis of preparation of financial statements

1. Basis of the preparation of financial statements and the entity’s ability to continue as a going

concern

Declaration on conformity with the IFRSs

The management declares that the consolidated financial statements have been made in conformity

with the International Financial Reporting Standards that were adopted by the European Union. The

management made this declaration in the knowledge of its liability.

Contents of the financial statements

These financial statements present the assets, the performance and the financial position of AKKO

Invest Plc., as parent company and its subsidiaries involved in the consolidation (together: Group). The

Group’s financial statements are prepared, approved and announced by the Parent Company’s

management.

The Group publishes the Consolidated Financial Statements both on the website of the Budapest Stock

Exchange (www.bse.hu) and on its own website (www.akkoinvest.hu).

Basis of preparing the financial statements; applied set of rules and the underlying presumptions;

evaluation philosophy

The financial statements have been prepared based on the International Financial Reporting Standards

(IFRS) created by the International Accounting Standard Board (IASB).

The IFRS include the IFRS, the IAS, the IFRIC and SIC interpretations developed by the IFRS

Interpretation Committee. The Group applied the IFRSs in the form as those were adopted by the

European Union.

The management of the Parent Company established that the going concern assumption is

appropriate, i.e. there is no sign implying that the Plc. will terminate or significantly curtail its

operations within the foreseeable future, i.e. beyond one year.

The Group generally evaluates its assets at historical cost, except for the situations where the given

element must be evaluated at fair value, on the basis of the IFRSs. In the financial statements, the

financial instruments held for trading had to be measured at fair value.

2. Presentation of the Group and the Accounting policies related to consolidation

The basis of the consolidation

The consolidated financial statements cover the financial statements (assets) of the Group and the

entities (Group’s subsidiaries) controlled by the Group. From the business year starting on 1 January

2014, the term of control is defined in the IFRS 10 standard. Accordingly, the investor has control over

the investee if it is entitled to the changing, positive returns (earnings) produced by the investee and

bears the consequences of negative returns and is able to control operations through its decisions

(power) and thus to influence these returns. Thus, the management ability and the control derive from

rights.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Control can be mainly gained through an ownership share, an agreement with other owners or a

special market position (e.g. monopoly).

Regarding the enterprises covered by this financial statement, the parent company gained control

through ownership share, without any exceptions.

The revenues and the expenditures of subsidiaries purchased and sold through the year are included

in the Consolidated Statement of Comprehensive Income, from the actual date of acquisition until the

actual date of sale.

The total, comprehensive result of the subsidiaries is due to the owners of the Group and the non-

controlling shares. The amount of the comprehensive result must also be assigned to the non-

controlling unit if it is negative.

If needed, the subsidiaries’ financial statements are modified so that their accounting policies conform

with the accounting policies applied by other Group members.

At the date of consolidation, the transactions, balances, revenues and expenditures are fully filtered

out even if the produced result appears in form of an asset value.

Non-controlling interest

The parent company recognises the net assets (assets and liabilities) of subsidiaries in the consolidated

financial statements in full. However, of the consolidated equity, the Group only recognises the part

after the acquisition that is allocable to the group as equity attributable to the parent company.

The value of the subsidiaries’ net assets allocated to the non-controlling interest (including also the

impacts of the fair value adjustments existing at the acquisition, arising after the acquisition and the

acquisition-date fair value adjustments) is stated by the Group separately in single row entitled non-

controlling interest. The non-controlling interest is the part of equity that is attributable to non-parent

owners. The Group recognises non-controlling interest as a proportion of net assets (at carrying

amount) on the individual reporting dates and does not measure it at fair value at the end of the

individual financial years.

When the equity interest acquired earlier in a subsidiary change, but it still qualifies as a subsidiary

even after the transaction, the Group treats the difference between the acquired net assets and the

consideration paid as an increase or decrease in equity.

Rules for consolidation

Accounting treatment of business combinations

Business combination is the situation where the Group gains control over a new company, and the

purpose of the acquisition was to acquire the business activity of the purchased entity and not only to

acquire the assets of the purchased business entity. The control shall be regarded as acquired from the

day when any situation required for qualification as a subsidiary was fulfilled.

The value of the goodwill/negative goodwill must be determined for the date of the business

combination. This is the difference between the fair value transferred for the equity interest

(consideration) and the fair value of the acquired net assets (proportionately). When determining the

consideration, the value of the previous equity interest must be taken into account.

The consideration shall include:

– the cash paid or due;

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

– the fair value of shares issued by the acquirer in connection with the combination (the fair value is

to be derived from the share price prevailing on the issue date);

– the fair value of other assets transferred (less the liabilities transferred, if any);

– the fair value of contingent consideration, i.e. part of the consideration that must be transferred or

returned upon the occurrence (or non-occurrence) of specified future events.

If the actually transferred (returned) amount differs from the estimated value of the contingent

consideration, the Group recognises the difference to the debit or credit of the profit or loss in the

period when the amount of the difference becomes calculable.

Determination of acquired net assets

The assets and liabilities acquired within the framework of a business combination must be measured

at the fair value prevailing on the date of the business combination. When performing the

measurement those assets and liabilities must be also included in the balance sheet that are not stated

in the separate financial statements of the acquired enterprises, but the standards prescribe their

recognition. These include particularly the internally generated intangible assets existing at the

acquired enterprise. In addition, the contingent liabilities that burdened the acquired entity on the day

of the business combination must be recognised – at fair value – among the liabilities, irrespective of

the fact that according to IAS 37 these should not be recognised as liabilities in the separate financial

statements.

Goodwill

The value obtained as the difference between the consideration paid for the subsidiary acquired during

the business combination and the net asset value of the subsidiary on the day of the acquisition may

be identified and recognised as goodwill among the Group’s assets, if the difference is positive.

The negative difference must be recognised to the credit of profit or loss, as a profit realised on a

bargain purchase. The profit must be allocated to the acquirer.

Goodwill may only arise when the control is acquired; subsequent transactions are recognised in the

equity.

Measurement period

If the initial accounting of a business combination is not full at the end of the reporting period when

the combination took place, the purchaser must indicate temporary amounts in its own financial

statements for the items where the accounting is not full.

During the measurement period the purchaser must retroactively modify – with regard to the date of

acquisition – the indicated temporary amounts in order to reflect new information on facts and

circumstances prevailing at the date of acquisition which – had they been known – would have

influenced the measurement of the amounts presented at that date.

During the measurement period the purchaser must also indicate further assets or liabilities if it

obtained new information on facts and circumstances prevailing at the date of acquisition which – had

they been known – would have resulted the presentation of assets and liabilities at that date.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The measurement period is over when the purchaser receives the information that it searched about

the facts and circumstances prevailing at the date of acquisition, or it learns that no further information

can be obtained.

The measurement period shall not exceed one year calculated from the date of acquisition.

Presentation of the Group (headquarters of operation, legal form, ownership structure, governing

law)

AKKO Invest Plc. is a public limited company registered in Hungary by the Metropolitan Court as

Company Court. AKKO Invest Plc. and its legal predecessor is listed by the Budapest Stock Exchange

since 15 February 2011. The Company’s core activity is asset management.

AKKO Invest Plc. is a holding company, i.e. a company with equity stake is several undertakings, the

economic objective of which is to realise long-term increase in value through efficient cooperation

between the holding and the subsidiaries. AKKO Invest Plc. invests its own assets, without performing

external asset management. Its fundamental objective is to achieve asset accumulation and increase

in value in the subsidiaries (and thus also in the parent company). The subsidiaries are entities

operating primarily in the property market.

AKKO Invest Plc. is a public limited company established under the laws of Hungary. Registered office

of the Company: 1118 Budapest, Dayka Gábor u. 5. Since 23 April 2021 (before that date: 1124

Budapest, Lejtő utca 17/A)

The Company’s subscribed capital is HUF 833,880,000, which comprises of 33,355,200 pieces of

ordinary shares on 31 December 2021. The nominal value of the shares is HUF 25/piece.

Ownership structure of the parent company on 31 December 2021:

31.12.2021

Nominal

31.12.2020

Nominal

value of

business

share in HUF

thousands

491 155

value of

business

share in HUF

thousands

515 421

199 965

118 494

Equity stake

Name

Free Float

58,90%

0,00%

11,00%

30,10%

100%

61,81%

23,98%

14,21%

0,00%

100%

DAYTON-Invest Kft.

Chantili Invest Zrt.

MEVINVEST Vagyonkezelő Kft.

Total

91 727

250 998

833 880

Number of voting rights attached to the shares on 31 December 2021:

Issued

pieces

Number of

voting shares

Voting right

per share

Total voting

right

Number of

treasury shares

Share series

Ordinary shares 33 355 200

33 355 200

936 988

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Total

33 355 200

N/A

33 355 200

936 988

Members of the Group and their core activity on 31 December 2021:

The Group comprises the Parent Company and subsidiaries.

Company

Address

Core activity

1118 Budapest, Dayka Gábor u. 5.

1124 Budapest, Lejtő út 17/A.

Asset management

Property development (industrial

property)

AKKO Invest Plc.

VÁR-Logisztika Zrt.

Property development (industrial

property)

Residential property development

Property development (industrial

property)

1124 Budapest, Lejtő út 17/A.

MOON Facility Zrt.

A PLUS INVEST Zrt.

4 Stripe Zrt.

06600 Antibes, 18 Avenue Louis Gallet,

France

Property development (hotel)

Asset management (Holding)

ALQ SAS

1124 Budapest, Lejtő utca 17/A

Elitur Invest Zrt.

NEO Property Services

Zrt.

Operation of superstructures

1095 Budapest, Máriássy utca 7.

Relevant figures of the companies:

Registered

capital on

Registered

capital on stake (%)

31 on 31

December December

Equity

Equity stake

(%) on 31

December

2021

Effective

date of the

change

Classificati

Company

December

2021

2020

AKKO Invest Plc.

VÁR-Logisztika Zrt.

MOON Facility Zrt.

A PLUS INVEST

4 Stripe Zrt.

833 880

5 000

833 880

parent

100%

5 000

20 000

4 796

5 000

100% subsidiary

0% subsidiary

5 000

20 000

4 796

ALQ SAS

Aquaphor Zrt.

5 000

19.05.2021

Elitur Invest Zrt.

NEO Property Services Zrt.

5 100

100%

49%

26.02.2021

subsidiary

20 000

Comparative figures:

Members of the Group and their core activity on 31 December 2020:

Company

Address

Core activity

AKKO Invest Plc.

1124 Budapest, Lejtő út 17 A.

Asset management

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Property development (industrial

property)

VÁR-Logisztika Zrt. 1124 Budapest, Lejtő út 17/A.

Property development (industrial

property)

MOON Facility Zrt.

1124 Budapest, Lejtő út 17/A.

A PLUS INVEST

Zrt.

Residential property development

Property development (industrial

property)

4 Stripe Zrt.

ALQ69 Zrt.

ALQ SAS

1124 Budapest, Lejtő út 17/A.

Residential property development

06600 Antibes, 18 Avenue Louis Gallet,

France

Property development (hotel)

Aquaphor Zrt.

1124 Budapest, Lejtő utca 17/A

Relevant figures of the companies on 31 December 2020:

Registered

Registered Equity

capital on stake (%)

Equity stake

(%) on 31

December

2021

Effective

date of

the

capital on

Company

on 31

Classification

December

2021

December December

change

2020

833 880

5 000

20 000

5 000

4 796

2020

AKKO Invest Plc.

VÁR-Logisztika Zrt.

MOON Facility Zrt.

A PLUS INVEST Zrt.

4 Stripe Zrt.

833 880

parent

5 000

20 000

5 000

4 796

5 000

100%

74%

100%

subsidiary

13.01.2020

10.01.2020

01.07.2020

ALQ69 Zrt.

ALQ SAS

Aquaphor Zrt.

09.01.2020

All companies disclose separate financial statements publicly.

Changes in the structure of the Group

In the reporting period, there was one transaction that was very important for the Group. The Parent

Company acquired all the shares of NEO Property Zrt., partly directly, partly indirectly, through the

acquisition of Elitur Invest Zrt. From the perspective of the Group, the acquisition is quite material. It

has to be taken into consideration when comparing the two presented periods. As a result of the

consolidation, there was a considerable increase in the balance of both the net profit and loss items

and in the balance of asset elements. The Group unequivocally concluded that the acquisition is a

business combination.

During the year, the Company sold all its shares in Aquaphor Zrt.

Activity of the individual Group members:

MOON Facility Zrt.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

MOON Facility Zrt. is the owner of an industrial property located in Szolnok, which it utilises by rental.

The Company is a member of the Group since 22 March 2019. Address of the property: 5000 Szolnok,

Kombájn utca – stated in the land register as three properties.

Vár-Logisztika Zrt.

Vár-Logisztika Zrt. is the owner of an industrial property located in Nagykanizsa, which it utilises

through rental. The Company is a member of the Group since 15 February 2019. Address of the

property: 8800 Nagykanizsa, Vár utca 12.

ALQ SAS

ALQ SAS is a company registered under the laws of France. It performs the development and

improvement of an apartment building owned by the Company on the French Riviera, which will be

rented or sold upon completion. Address of the property: 18 Avenue, Louis Gallet, Juan-Les-Pins,

Antibes, France

4 Stripe Zrt.

4 Stripe Zrt. owns an industrial property in Budaörs, which it utilises by rental. Address of the property:

2040 Budaörs, Kinizsi 4-6. The Company is a member of the Group since 2 October 2019.

A PLUS Invest Zrt.

A PLUS Invest Zrt. performs the conversion of a property in district XII of Budapest into luxury property

to be sold or leased upon completion. Address of the property: 1121 Budapest, Eötvös út 31. The

Company is a member of the Group since 18 December 2019.

Elitur Invest Zrt.

The Company has acquired 100% of the business shares of Elitur Invest Zrt., thereby it owns 100% of

NEO Property Services Zrt., 51% of which it owns indirectly, through Elitur Invest Zrt. Date of

acquisition: 26.02.2021.

The Group owns NEO Property Services Zrt. Date of acquisition: 26.02.2021. NEO Property Services

Zrt. is one of the leading property operators and service providers in Hungary.

Aquaphor Zrt.

Aquaphor Zrt. owned a hotel to be renovated in Zamárdi, which was subsequently sold. Address of

the properties: 8621 Zamárdi, Rózsa u. 53., 8621 Zamárdi, Liliom u. 3.

The Company was a member of the Group between 09 January 2020 and 19 May 2021.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Presentation currency and accuracy of the financial statements

The functional currency of the parent company is Hungarian forint. The financial statements have been

prepared in Hungarian forint (presentation currency) and unless it is indicated, otherwise the figures

are stated in thousand HUF.

Euro is an important foreign currency for the Group. The exchange rate of the foreign currency in the

reporting period was as follows (one currency unit/HUF, MNB exchange rates):

Currency

2021

2020

Closing

Average

Closing

Average

Euro (EUR)

369,00

358,52

365,13

351,17

3. Essential elements of the accounting policy

Presentation of the financial statements

The Group publishes consolidated financial statements jointly for the enterprises controlled by it and

for the parent company (hereinafter: financial statements). The financial statements of the Group

comprise the following parts:



consolidated balance sheet;

consolidated statement of comprehensive income ;

consolidated statement of changes in equity;

consolidated cash flow statement;

notes to the consolidated financial statements.

Essential decisions related to the presentation

The Group decided to include the comprehensive income statement in a separate statement in such a

way that it presents the items connected to other comprehensive income in the same statement after

the net profit (loss) for the period.

The Group prepared its consolidated financial statements under the IFRS for the last time for the 2020

financial year, with comparative data from 2019.

The Group publishes consolidated financial statements in Hungarian forint. This is the presentation

currency. The consolidated financial statements cover one calendar year. The balance sheet date of

the consolidated financial statements is the last day of the calendar year, i.e. 31 December, in each

year.

In accordance with the stock exchange requirements, the Group prepares interim statements semi-

annually. The interim financial statements shall be governed by the rules of IAS 34, which do not

include all disclosures prescribed by IAS 1 and contain the figures in condensed form.

The consolidated financial statements contain comparative figures, except when a period must be

restated or the accounting policy had to be changed. In this case, the Group also presents the opening

balance sheet values of the comparative period.

When for the purposes of presentation it is necessary to reclassify an item (e.g. due to a new row in

the financial statements) the Group adjusts the previous year’s figures so as to ensure comparability.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The Group also needs to publish information related to the operating segments in the notes to financial

statements. The operating segments are determined in accordance with the strategic requirements of

the Board members.

As compared to 2020, the operating segment changed in 2021.

The Group’s activity can be broken down to the following categories (segments):



utilisation of industrial properties

utilisation of residential properties

Facility Management line of business

ITS line of business

Fit-Out line of business

The characteristics of the operating segments are presented in section 33 of Chapter VII.

Foreign Currency

Foreign currency is a currency that differs from the functional currency of the entity.

The Group presents its consolidated financial statements in Hungarian forint. Within the Group, each

entity determines its functional currency. Functional currency is the currency that best characterises

the operation of the respective company.

An entity may incur exchange rate difference only on foreign currency.

One of the Group’s subsidiary is ALQ SAS, a company registered in France with euro being its functional

currency.

For the purposes of consolidation, the Group converts the profit or loss and financial position into the

functional currency of the parent company.

These financial statements contain both monetary and non-monetary items.

Monetary items are elements whose settlement or receipt entails cash movement and cash itself also

qualifies as monetary item. The asset and liability items not entailing cash movement (e.g. advances

for services and inventories) do not qualify as monetary items.

Monetary items in foreign currency must be revalued on the reporting date to the spot exchange rate

of the reporting date. For the conversion, each entity uses the exchange rate published by the Magyar

Nemzeti Bank on the reporting day.

Accounting policies related to the income statement

Sales revenues

The Group recognises its sales revenues in accordance with the rules of the IFRS 15 (effective from

2018) – Recognition of revenue from contracts with customers – Standard.

The IFRS 15 Standard created a uniform model to be applied to revenues from contracts. The Standard

contains to revenue recognition rules, among others, for revenues falling within the IFRS 9 Financial

Instruments Standard and for revenues falling within the IFRS 16 Leases Standard.

The five-step model helps define when revenues must be recognised and in what amount:

1. Based on the Standard, a contract is created when the following conditions are satisfied:



The parties have accepted the contract and are committed to fulfilling it;

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.



The rights of the parties can be clearly determined based on it;

The contract offers economic benefits;

It is probable that the seller will receive the consideration for the goods delivered/services

performed, even if it applies legal instruments to collect it.

In the case of contract amendment it must be examined how its content has changed,

since there may be cases when the amendment is to be interpreted as an independent,

separate contract.



2. Identification of performance obligations: When concluding the contract, the Group shall

assess the goods or services promised in a contract with a customer and shall identify as a

performance obligation each promise to transfer to the customer either

a) distinct goods or services (or a package of goods or services); or

b) a series of distinct goods or services that are substantially the same and that have

the same pattern of transfer to the customer.

3. Determining the transaction price: The transaction price is the amount of consideration to

which the Group expects to be entitled in exchange for transferring the promised goods or

services to a customer, excluding amounts collected on behalf of third parties (for example,

certain sales taxes). The consideration promised in a contract with a customer may include

fixed amounts, variable amounts, or both.

4. Allocation of the transaction price to individual obligations: The seller must distribute the

transaction price among the individual obligations. When no separate prices can be allocated

to the individual obligations, an estimation shall be applied for the distribution, in accordance

with the method accepted by the Standard.

5. Revenue recognition: The revenue may be recognised when the control over the purchased

goods or services devolves from the seller on the buyer. This may take place during a definite

period or at a specified time. The control devolves on the buyer when as a result of that the

buyer is able to control the use of the assets and is entitled to collect the benefits deriving from

the assets.

The Group measures and assesses its customer contracts individually. It applies the five-step model to

contract with customers. In the present contracts the settlement date does not differ from the

invoicing period. Sales revenue is recognised when it is effectively invoiced, adjusted to the periods in

the case of rents, while in the case of property sale upon the fulfilment of the PO, which – as a main

rule – is connected to the transfer of ownership right. In case of property management, the charges

may generally be addressed by simple time apportioning, even if they are linked to a particular period.

In case of long-term construction projects, the Group determines the revenue by using apportioning,

i.e. readiness is determined by the input method, in proportion of the recognised costs and the total

planned costs.

Operating expenditures

As a result of the Group’s current activity, it breaks down the expenditures as follows:



direct expenditures: the expenditures directly related to the sales revenue, with the proviso

that if an item is to be recognised on a net basis (e.g. profit realised on property sales), it will

not be charged to expenditures but rather it will reduce revenues.

administrative expenditures: these include the items that are meant to support the Group’s

operation, but may not be directly related to the sales revenue (e.g. accounting fees,

insurance, etc.).

sales expenditures: expenditure connected to publication, advertising and PR activities.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Other revenues and expenditures

The Group states the consideration for sales not classifiable as sales revenue and all other revenues

that cannot be regarded as financial income or items increasing other comprehensive income among

other revenues.

Other expenditures are expenditures that are indirectly related to the operation and do not qualify as

financial expenditure or do not reduce other comprehensive income. The Group states other revenues

and other expenditures on a net basis on the main page of the income statement, but it details the

components of it in the notes to financial statements.

Financial revenues and expenditures

The Group presents primarily the interest expenditures (as one of the burdens of its own funding) in

the financial profit or loss position.

According to the rules of the impairment model, introduced by the IFRS 9 Financial Instruments

Standard, the Group recognises impairments also here.

The Group states the exchange rate difference of foreign currency items (unless it is part of the other

comprehensive income based on the IAS 21 Effects of Changes in Foreign Exchange Rates) in the

financial profit or loss.

The Group states financial profit or loss in the income statement on a net basis.

Income tax expenditure

The income tax expenditure is the sum of the actual and deferred income tax and the local business

tax.

Other comprehensive income

Other comprehensive income comprises the items (including amendments due to reclassification) that

are not stated in the income statement as part of the profit or loss of the reference period, but belong

to the Group’s returns or expenditures in the broad sense.

Earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders

of the Group by the weighted average number of ordinary shares outstanding during the period. The

Group calculates diluted earnings per share by taking into consideration, in addition to the ordinary

shares, the weighted average number of the dilutive share options.

Use and concept of EBITDA

Although the IFRS do not use the concept of EBITDA, the Group has decided to use this commonly used

index, having regard to the widespread practice in the industry, and to the fact that the Group is

convinced that the statement of this value provides useful information to the users of the financial

statements.

For the sake of interpretability, the calculation method is set out below:

+/-

-/+

Profit or loss before tax

X/(X)

(X)/X

Elimination of financial revenues and expenditures

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

-/+

Elimination of depreciation and impairment

(X)/X

EBITDA

X/(X)

The Group amends the profit or loss before tax with the following items:



Financial profit or loss: the Group adjusts the profit or loss before tax with all the items in the

financial profit or loss (effective interest, foreign exchange difference, etc.), i.e. it totally

neutralises the impact of the financial profit or loss when calculating this index.



Depreciation and impairment: when calculating the index, the depreciation and impairment of

the assets subject to IAS 16, IAS 38 and IFRS, and of the assets stated as assets at the Group,

the assets allocated in operating lease or concession are filtered. (they are “given back”). The

unsystematic reduction (typically: the impairment loss) of such assets are also adjusted back

by the Group, similarly to the depreciation and impairment. [The impairment of other assets,

e.g. financial instruments is not adjusted during the calculation of the index.]

Accounting policies related to the balance sheet; presentation and measurement of assets and

liabilities

Investment properties

Investment properties include those properties that the Company has typically purchased for the

purpose of realising profit on the lease or appreciation of the property, without utilising it or bearing

the business risk of it. These properties (typically office buildings, warehouses and factory buildings)

are not used for own purposes in the longer run and the Company does not plan to sell them in the

near future.

The Company treats investment properties according to the cost model, i.e. these properties are

recognised at cost after deducting any accumulated depreciation and impairment losses.

The cost of the property comprises the following items:



purchase cost (the costs of acquiring the property, including also tax payments if they can be

linked to the property);

property reconstruction costs, which includes the items incurred due to the reconstruction for

the anticipated sale;

other costs directly related to the property, if the direct relationship can be proven.

The Company classifies investment properties as industrial property or residential property.

The Company recognises depreciation on the investment properties measured using the cost model,

assuming a useful life of 20 years.

The reclassification of investment properties – since the Company uses the cost model – must be

executed by reclassification between the balance sheet lines.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Plant, fixtures and equipment

The Group states plant, fixtures and equipment at cost reduced by accumulated depreciation and

impairment losses.

Cost includes the purchase prices less discounts, including customs duties and other non-reclaimable

taxes, and all costs necessary for the operation of the asset at the specific place in the specific manner.

The estimated costs of dismounting and removal of the asset and of the remediation of the location

also form part of the costs, if provisions must be recognised for the liabilities in accordance with the

requirements of IAS 37 (Provisions, Contingent Liabilities and Contingent Assets).

If the asset is of significant value, it must be examined whether it can be decomposed into components.

The components must be assessed separately for the purposes of depreciation. At present the

Company has no such assets that should be broken down into components.

The costs incurred in connection with assets in use are stated as assets, if they fulfil the condition of

capitalisation or additional capitalisation as assets. Maintenance and repair cost are recognised as cost

when incurred. The Group also states the costs of major inspections as assets, as a separate

component.

The depreciation of assets is recognised in accordance with the straight-line method. The Company

depreciates the acquisition value of the assets from the date when it is taken into use, during the useful

life of the assets.

Typical useful life of assets:

Plant and equipment

Office equipment, fittings

Properties

3-7 years

5 years

20-50 years

When the assets are scrapped, the cost and the accumulated depreciation are derecognised. When

the asset is sold, the cost and the accumulated depreciation are derecognised, while any profit or loss

is stated in the net profit or loss (among other items).

In the case of assets in respect of which depreciation is recognised, in all cases when any event or

change in circumstances imply that their carrying amount would not recover, we examine if any

impairment has occurred.

The impairment loss is the difference between the asset’s carrying amount and its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs to sell and its value in use.

Intangible assets

The Group states intangible assets at cost reduced by accumulated depreciation and impairment

losses. During the expected life depreciation was recognised according to the straight-line method.

Leases

Identification of lease

A contract qualifies as a lease contract or contains lease if this contract transfers the right to use the

underlying asset – for a specific period – against fee payment. Then the lessee may collect the profit

arising from the asset usage and may make decisions on the usage. It does not qualify as a lease, when

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

the company concludes a rental agreement for an asset, but the underlying asset is controlled not in

the interest of the company (e.g. company car transferred for personal use).

To identify the leasing, the Group applies the process chart under paragraph B31 of annex B of the IFRS

16 Standard:

Chart 1. Classification of lease contract IFRS 16.B31

Recognition at the lessee

On the commencement day the lessee must recognise a right-of-use asset and lease liability.

Recognition exceptions

If the Group qualifies as a lessee under IFRS 16 with regard to a contract, the rules of the Standard will

not be applied for lease related to short-term assets (less than 12 months) and to low-value underlying

assets, but the lease payments are recognised to the debit of the profit, in a divided manner.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Measurement of the right-of-use asset

The Group recognises its assets used under lease as right-of-use assets in the balance sheet. The right-

of-use assets are measured under the cost model, primarily setting out from the contractual term upon

accounting for depreciation. The Group tests the right-of-use assets for impairment under the IAS 36

rules. The business organisation recognises the right-of-use assets together with the asset group where

the underlying asset belongs to. The right-of-use assets are separated in the notes to financial

statements.

The lessor must classify the leases either as operating lease or financial lease.

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to

ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer

substantially all the risks and rewards incidental to ownership of an underlying asset.

Recognition at the lessor

At the commencement date the lessor must derecognise in the balance sheet the assets held within

the framework of financial lease and must present the leasing fee receivables at the present value of

the cash flows from the lease (net investment in lease).

The Group recognises the present value of cash flows from financial lease as a lease investment. Upon

calculating the present value, the Group uses the incremental interest rate related to lease. The Group

determines the ECL for the lease receivables based on the simplified approach.

The lessor must recognise in the income statement the lease payments from operating lease either

through the straight-line method or through another systematic method in a manner that the leased

asset is further on recognised and depreciated in the balance sheet.

The Group regards any scheme as financial lease (as a lessor) if



the underlying asset is transferred to the lessee at the end of the lease term;

the lessee has the right to acquire the ownership of the underlying asset at the end of the term

and exercise of this right is probable;



the lease term (together with the proved extension periods) exceeds three-quarters of the

residual economic life of the underlying asset;

the overall present value of the lease payments reaches 90% of the fair value of the underlying

asset;

the underlying asset pertaining to the leasing is special.

If the lease term is indefinite, the term must be defined based on the estimated enforceable period.

Assets held for sale and discontinuing operations

Non-current assets, the carrying amount of which will be recovered through a forthcoming sales

transaction rather than through continuing use, shall be classified as held for sale. Disposal groups,

comprising assets and closely related liabilities to be disposed of later on in a single transaction (e.g. a

subsidiary to be sold), are also held for sale.

This classification can be used when it is highly probable that the sale takes place within one year from

the classification, and the assets or disposal group are ready for sale also in their current form, activities

are in progress to foster sales (e.g. marketing activity) and the asset or disposal group is offered at a

reasonable price.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The Group presents its assets held for sale separately in the balance sheet.

Discontinued operations:

The Group presents its activities and subsidiaries that can be separated from the remaining part of the

Group as discontinued operations.

In 2021, the sale of its subsidiary – Aquaphor Zrt. – was stated among discontinued operations.

Borrowing costs

Borrowing costs – if it can be rendered probable that they will result in future economic benefits – are

included in the cost of the acquisition, construction or production of assets, the making of which

suitable for use or sale necessarily takes a substantial period of time. These assets are referred to as

qualifying assets.

The Group commences the capitalisation of borrowing costs for the respective asset, when



expenditures have been incurred for the asset

the implementation of the investment can be rendered probable, the Company has an

irrevocable commitment for the implementation

When the asset is ready for use, the capitalisation of borrowing costs must be stopped.

Inventories

Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated

selling price of the inventories less the estimated costs of completion and the estimated costs

necessary to make the sale.

Financial assets and liabilities

In accordance with IFRS 9, the Group applies the following rules:

Classification

Financial assets and liabilities held for sale to realise profit and the derivative instruments belong to

financial instruments measured at fair value through profit or loss (FVTPL).

The debt instruments that satisfy the SPPI test (i.e. the cash flow deriving from them are solely

payments of principal and interest) and held to collect contractual cash flows (business model test)

belong to the amortised cost (AC) category. This category includes trade and other receivables, and

cash holdings.

The debt instruments that satisfy the SPPI test, but are held for the contractual cash flows and for the

sale of the instruments belong to the FVTOCI (fair value through other comprehensive income)

category. In this case the instrument is stated in the books at fair value, while the fair value difference

is recognised in other comprehensive income, accumulated in the appropriated equity reserve. The

interest, expected loss and sales profit or loss belonging to the debt instruments is recognised in net

profit or loss. Upon the derecognition of the instrument, the accumulated revaluation must be

transferred to net profit or loss.

The Group classifies its equity instruments, unless they are held for sale, as FVTOCI, i.e. it measures

the instrument at fair value on each balance sheet date (with the proviso that in certain cases the cost

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

may be also regarded as fair value), while the difference is recognised in other comprehensive income.

When the instrument is derecognised, the accumulated revaluation reserve cannot be transferred to

net profit or loss, but the accumulated equity part is transferred to retained earnings.

In previous periods the entity used IAS 39. No amendment has been made with respect to the

comparative figures prescribed in the transitional regulation; those were managed in accordance with

IAS 39. Accordingly, in the case of the comparative figures (31 December 2017 and the year after) the

previous classification and measurement have been applied (see the financial statements for the

previous year).

Other liabilities include financial liabilities that have not been classified as instruments measured at

fair value through profit or loss.

The items belonging to the category of other liabilities are detailed in point 25 of Section VI of the

financial statements.

Recognition

Financial assets and liabilities are recognised in the Group’s books on the settlement date, with the

exception of derivative instruments, which are recognised on the trade date. Financial assets or

financial liabilities are initially measured at fair value, adding to them (in the case of items that later

are not measured at fair value through profit or loss) the transaction costs directly related to the

acquisition or issuance of those.

Derecognition

Financial instrument are derecognised when the rights to the cash flows from the financial instruments

expire, or the Group transfers, to a substantial degree, all risks and benefits related to the holding of

the financial instrument (without retaining any major right).

Measurement

Following the initial recognition, all financial assets or financial liabilities measured at fair value through

profit or loss and all assets measured at fair value through other comprehensive income will be

measured at fair value. If no quoted market price in an active market is available and the fair value

cannot be determined reliably, the Group uses valuation techniques to establish the fair value.

Financial instruments classified as AC, and all financial liabilities not belonging to the fair value through

profit or loss category will be stated at amortised cost. Fees and discounts, including the initial

transaction costs, are included in the carrying amount of the related instrument and amortised at the

instrument’s effective interest rate.

Debt instruments – with the exception of items measured at fair value through profit or loss – are

recognised in the books at a value reduced by expected impairment loss. Expected impairment loss,

allocable to the reporting year, shall be recognised through profit or loss.

The profit or loss on financial instruments or financial liabilities recognised at fair value through profit

or loss shall be recognised in the comprehensive income statement (as part of current year’s profit or

loss, on a net basis) as profit or loss realised on securities.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The yield from the effective interest income of FVTOCI instruments shall be stated in current year’s

profit or loss in a separate line, in a position different from the expected loss of the instrument (which

is recognised in another category of net profit or loss). The valuation gains or losses of such financial

instruments shall be recognised in other comprehensive income. The profit or loss realised on the

alienation of FVTOCI financial debt instruments shall be recognised in current year’s profit or loss, and

the formerly accumulated other comprehensive income shall be transferred to net profit and loss.

The profit or loss in respect of financial instruments or other financial liabilities stated as debt

instruments shall be recognised using amortisation (profit/loss after tax) in the comprehensive income

statement when the financial instrument or liability is derecognised or an impairment loss is

recognised in respect of them.

Measurement at fair value

The fair value of financial instruments is the market price quoted at the end of the reporting period,

net of transaction costs. If no quoted market price is available, the fair value of the instrument is

determined by valuation models or discounted cash flow techniques.

When applying discounted cash flow techniques, the estimated future cash flow is based on the

Group’s economic estimates, while the discount rate is a market rate that applies to a similar

instrument on the balance sheet date under similar terms and conditions. When applying valuation

models, the figures are based on market valuations performed at the end of the reporting period.

Level 1: The figures used for the valuation are based on publicly available quoted prices (no further

information is necessary for the valuation).

Level 2: The figures used for the valuation of assets with no quoted price can be observed indirectly or

directly.

Level 3: The estimation of the fair value of derivatives not traded on the stock exchange is based on

the amount that the Group would receive based on the usual business terms and conditions upon the

expiry of the contract at the end of the reporting period, considering the prevailing market conditions

and the parties’ current creditworthiness.

Measurement of amortised cost

The amortised cost of a financial asset or financial liability is the value of the financial asset or financial

liability at the initial recognition less principal repayments, increased or decreased by the accumulated

amortisation of the difference between the initial value and the value at maturity calculated by the

effective interest rate method, and reduced by the write-off due to the impairment or irrecoverability

of the financial instrument.

The effective interest rate is the rate that precisely discounts the estimated future cash payments or

income during the expected life of the financial instrument or – as the case may be – for a shorter

period to the net carrying amount of the financial instrument or financial liability. When calculating

the effective interest rate, the Group estimates the cash flow considering all contractual conditions of

the financial instrument, but ignoring future credit losses.

Impairment of financial assets (expected impairment)

Provisions must be recognised for the expected impairment of the debt instruments belonging to the

AC and FVTOCI category. The expected impairment can be described as the cash flow not realisable

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

during the life of the instrument. The expected impairment loss can be derived from the following

factors:

•

exposure at default (EAD);

loss given default (LGD);

probability of default (PD) for the relevant period.

When presenting financial instruments, the expected loss must be calculated for 12 months using 12-

month PD, which means the probability of the counterparty’s becoming insolvent within 12 months

(Stage 1). The ECL so determined must be recognised without directly reducing the assets as a counter-

asset item (provision). The gross value of the asset (calculated net of ECL) does not change.

If the credit quality of the asset deteriorates it must be reclassified to Stage 2, for which provisions

must be recognised for lifetime impairment through net profit or loss without directly reducing the

value of the asset.

If the asset becomes impaired, it must be reclassified to Stage 3, where the lifetime loss reduces

directly the value of the asset.

If the credit quality of the asset improves, the asset must be reclassified from Stage 3 to Stage 2, or

from Stage 2 to Stage 1.

The Group regards an asset as non-performing if the contractual cash flows have been past due for at

least 90 days. However, using market information, based on special considerations, an asset may be

declared as non-performing earlier as well.

The Group presumes deterioration in credit quality if the contractual cash flow is past due over 30

days.

The following signs may imply deterioration in credit quality or impairment:

•

market figures

change in the economic environment

external rating figures

comparative figures

risk managers’ findings

providing the debtor with respite

willingness to pay

In the case of certain smaller receivable balances the ECL is determined on a collective basis. For trade

accounts receivable the simplified ECL model must be used, which means that lifetime impairment

must be recognised immediately and it is not necessary to monitor credit quality continuously.

In the case of the simplified approach, the Group usually uses the following ECL ratios:

Past due

ECL %

Less than 90 days

91– 365 days

50%

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

over 365 days

100% or on a case-by-case basis

NEO Property Zrt. has many customers from whom the Company requests collaterals in certain

circumstances. When determining the ECL, the Company takes this collateral system into consideration

in its specific assessment.

If the volume of expected credit loss decreases, the decrease must be recognised through profit or

loss, by reducing the corresponding expenditure.

Trade accounts receivable

Trade accounts receivable include the unpaid consideration payable by customers for the goods sold

or services rendered in the usual course of business plus value added tax. These amounts are expected

to be received within one year (or within the usual operating cycle, if it is longer), and thus they are

classified as current assets. Trade accounts receivable are stated at invoiced value, which initially

essentially correspond to their fair value. The Group uses the simplified approach to determine

expected credit loss.

Other receivables and prepayments and accrued income

These receivables include payment claims not belonging to other receivables. They are measured in

the same way as trade accounts receivable. Prepayments and accrued income are also stated in this

balance sheet position. Receivables from brokers may be a material item within the balance sheet

position.

Impairment of receivables

Impairment for receivables is recognised when it becomes probable that the Group will not be able to

collect all of its outstanding receivables (the customer has financial difficulties, bankruptcy or

liquidation proceeding has started against it). The necessary impairment loss is recognised on a case-

by-case basis for major financial assets and in aggregate for immaterial financial assets.

When there is objective evidence that impairment loss has been incurred on loans and receivables

recognised at amortised cost, the loss amount shall be determined as the difference between the

carrying amount of the asset and the present value of estimated future cash flows (not taking into

consideration future credit loss not yet incurred) discounted by the original effective interest rate (i.e.

effective interest rate calculated upon initial recognition). When there is no objective evidence of the

impairment of a financial asset, the need for impairment loss is assessed aggregately for a group with

similar credit risk attributes.

In the case of group impairment assessment the calculation is performed based on the ageing. When

the asset is uncollectible, the Group derecognises the receivables against the income statement and

the directly related impairment loss against the expenditures. The Group does not discount its

receivables due within one year (here the time value of money is assumed to be immaterial).

Cash and cash equivalents

Cash includes cash on hand, bank deposits and other liquid deposits and securities the original maturity

of which is not longer than three months and risk of changes in value is negligible (not including

overdrafts, but in the cash flow statement the overdraft must be stated under cash equivalents).

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Should any impairment occur at a cash item, it must be recognised through net profit and loss. ECL

must be recognised for these assets as well.

Subscribed capital

The subscribed capital contains the sum of the nominal values of the shares issued by the Parent

Company.

Share premium

Share premium includes the funds exceeding the nominal value of the issued shares. The transaction

costs related to equity issuance reduce the share premium. The Company states the profit realised on

the sales of treasury shares as share premium.

Retained earnings

Retained earnings contain the dividends accumulated but unpaid.

Dividends

In the financial statements, the Group states the dividends payable as liabilities, simultaneously

reducing retained earnings, in the period when the owners approved the dividends.

Treasury shares

If the Group buys the Parent Company’s shares, the consideration paid and the incremental costs are

stated as treasury shares as items reducing equity, in a separate line with negative sign, until such time

as the shares are withdrawn or resold. When the Group sells these shares later on, it increases the

equity, since the profit or loss realised on the sales directly impacts equity (increases the share

premium when it is a profit, or reduces the retained earnings when it is a loss). Transactions related to

treasury shares must be posted on the transaction date.

Trade accounts payable, other liabilities, accruals and deferred income

Trade accounts payable and other liabilities, accruals and deferred income are recognised at fair value,

which is usually the same as the nominal value. In subsequent periods they are stated at amortised

cost determined using the effective interest rate method.

Income tax liability and asset, deferred tax liabilities and assets

The Group performs the assessment of whether the given tax type qualifies as income tax for all types

of statutory taxes based on the requirements of IAS 12 (Income taxes).

The income tax presented in the comprehensive income statement represents the current and

deferred tax for the respective period. Deferred tax is stated in the current year’s profit or loss, except

when it is connected to items stated in other comprehensive income. Then the deferred tax is also

stated there.

The Group recognises deferred tax for the temporary differences between the statutory value of the

assets and liabilities under the laws governing the tax qualifying as income tax and their carrying

amount, based on the balance sheet method. The stated value of the deferred tax is based on the

expected method of realising or settling the carrying amount of the assets and liabilities, subject to

applying the tax rate effective or essentially effective at the end of the reporting period.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The tax for the period in question is the tax payable on the taxable income of the given year, subject

to applying the tax rates effective at the end of the reporting period and applying previous year’s

adjustment.

Deferred tax receivables may be stated only up to the amount of the taxable profit likely to be available

in the future.

Other taxes, not qualifying as income tax, are stated separately from the income taxes in the

comprehensive income statement.

General accounting policies related to cash flow

The Group builds its cash flow statement on the indirect method up to the operating cash flow. The

investment and financing cash flows are prepared using the direct method. The Group presents

interest paid in the operating cash flow, and dividends paid in the financing cash flow.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

III. Significant estimates used in preparing the financial statements and other sources of

uncertainties

With respect to the application of the Group’s accounting policies, the management has to make

decisions, estimates and assumptions as to the carrying amount of the assets and liabilities that cannot

be clearly determined from other sources.

The estimates and related assumptions are based on past experiences and other factors that are

considered relevant. The actual results may be different than these estimates. The estimates and the

assumptions on which they are based must be reviewed continuously.

The modifications of accounting estimates must be recognised in the period when the modification

was made if the modification only affects this period, or in the period when the modification was made

and the periods after that if the modification affects the period under review as well as the future.

1. The recoverable amount of the customer relations list established through the acquisition of

NEO Property Zrt., as well as the recoverable amount of the goodwill generated through the

acquisition are considered to be significant estimates for the Group. Considering the volume

of the relevant balances, these estimates are significant. Addressing the impact of the change

in the estimate may affect the net profit or loss.

2. The balances of the accruals of the Group are significant. Those balances include the estimates,

the calculations, which are not complex, but considering their volume, may have a significant

impact on the net profit or loss of the Group.

3. The fair value of investment properties is a significant estimate for the Group. Although the

Group does not record the fair value in its books, that particular item is included in the

disclosures.

The management of the Group has to review the accounting estimates of the following areas at least

annually:



the return on intangible assets, with particular attention to the goodwill and the customer

relations list;



balances of the accruals;

estimates related to the useful life and residual value of the tangible assets;

fair value estimates;

estimates related to the valuation of receivables.

The revision of the accounting estimates may be necessitated by:



legislative changes,

changes in the economic environment,

changes in the operation and processes of the Company

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

IV. Changes in the accounting policy, expected impact of the IFRS and IFRIC interpretations not yet

in force on the date of the financial statements, previous applications

The Company has not changed the applied accounting policy between 2020 and 2021. An exception is

the application of accounting policies related to the introduction of the new standards and to activities

that did not exist earlier.

New and modified standards and interpretations entering into force from this reporting period,

announced by IASB and adopted by the EU:

 Amendments to IFRS9, IAS39, IFRS7, IFRS4 and IFRS16 – interest rate benchmark reform – Phase

2 – adopted by the EU from 2021. January 13 (enters into force on 2021. January 1 and in the

reporting periods commencing thereafter),

 Amendment to IFRS4 “Insurance contracts” deferral of effective date of IFRS9 – adopted by the

EU from 2020. December 15, (enters into force on a 2021. January 1 and in the reporting periods

commencing thereafter),

 IFRS 16 Leases – Covid-19-Related Rent Concessions after 30 June 2021 (enters into force on 1

April 2021, the amendment extends the practical simplification for the period between 30 June

2021 and 30 June 2022. The application of that standard is mandatory for those lessees that have

chosen to apply the initial practical simplification.)

New and amended standards and interpretations issued by the IASB and adopted by the EU, but not

yet in force

At the time of approval of these financial statements, the following standards, as well as amendments

to existing standards and interpretations issued by the IASB and adopted by the EU, were published

without entry into force:

 Amendments to IFRS3 “Business Combinations”, IAS16 “Property, Plant and Equipment” and

IAS37 “Provisions, Contingent Liabilities and Contingent Assets” – Package of narrow-scope

amendments (enters into force on 1 January 2022 and in the reporting periods commencing

thereafter),

 Amendment to IFRS17 “Insurance contracts”, incorporating the amendments to IFRS17 (enters

into force on 2023. January 1 and in the reporting periods commencing thereafter),

 Amendments to the IAS 1 “Presentation of financial statements” - Classification of Liabilities as

Current or Non-Current (will enter into force on 1 January 2023 and in the reporting periods

commencing thereafter,

 IFRS Practice Statement 2: Disclosure of Accounting Policies. (will enter into force on 1 January

2023 and in reporting periods commencing thereafter),

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

 IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”: Definition of Accounting

Estimates. (will enter into force on 1 January 2023 and in reporting periods commencing

thereafter),

 IAS 12 “Income taxes“: Deferred tax related to assets and liabilities resulting from one single

transaction (will enter into force on 1 January 2023 and in the reporting periods commencing

thereafter)

The Company does not apply these new standards and the amendments to existing standards before

their effective dates. The Company believes that the approval of these standards and the amendment

of existing standards will have no significant impact on the Company's financial statements in the

period of initial application.

Standards and interpretations issued by the IASB and not approved by the European Union

The IFRS adopted by the EU currently do not significantly differ from those approved by the

International Accounting Standards Board (IASB), with the exception of the following new standards,

amendments to existing standards and new interpretations that have not yet been approved in the EU

until the publication date of our financial statements:

 Amendments to the IFRS 10 ”Consolidated financial statements” and IAS 28 “Investments in

associates and joint ventures” – Selling or transferring assets between the investor and its

associate or joint venture (the date of entry into force has been postponed for an uncertain period

of time, until the research project arrives at a conclusion with regard to the equity method).

The implementation of these modifications, new standards and interpretations would not influence

significantly the Company’s financial statements.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

V. Supplementary notes to the Comprehensive Income Statement

A. Profit or loss from continuing operations

1. Revenue

NEO Property Services Zrt. and Elitur Invest Zrt. became members of the Group on 26 February 2021.

The corresponding earnings items are included among the consolidated figures from the date of

acquisition.

In 2021, the core activity of the Group was property operation.

Designation

Property operation

Financial year 2021

22 009 785

Financial year 2020

Revenue from property lease

Revenue from property sales

122 778

111 579

70 300

Other revenue

5 365

1 061

Total

22 137 928

182 940

In previous years, the revenue from property lease constituted the largest item of revenue. The

revenue and the range of services provided were significantly extended as a result of the inclusion of

the new subsidiaries in the Group.

Thanks to the complex property operation service provided by NEO Property Services Zrt., the revenue

of the Group increased by THUF 22,009,785.

The other items include the revenue from further invoicing and the sales revenue.

2. Direct operating expenditures

Direct expenditures are expenditures that can be allocated beyond doubt to the revenue generating

item when they are incurred.

The amount of direct expenditures increased as a result of the inclusion of new subsidiaries into the

Group, especially as a result of the entry of NEO Property Services Zrt.

The content of direct expenditures is as follows:

Designation

Financial year 2021

Financial year 2020

Material costs

Business costs

Fuels

(136 737)

(7 583 976)

(93 848)

(4 370)

(6 557)

Electricity, water, waste water charges

Heating and air conditioning equipment

Waste disposal

(1 148 416)

(172 413)

(36 506)

(1 151)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Personal costs

(3 092 460)

(2 123 156)

(1 272 105)

(1 789 463)

(12 253)

(37 995)

(139 592)

(87 779)

(8 752)

Maintenance fees

Operation costs

(1 264)

(18 315)

Cleaning services

Removal services

Building services engineering

Transport

Rental fees

Parking

Asset management

(2 173)

(10 097)

(3 475)

Healthcare services

Official fees

Fire protection, occupational health and safety

(113 772)

(6 279)

Travel and accommodation services

IT services

(40 765)

(1 322 264)

(355)

Property protection

Advertising costs

(1 057)

Miscellaneous expenses

Other services

(3 795)

(200 676)

(627 070)

Depreciation

(96 956)

(61 516)

(191 186)

Carrying value of property sold

(20 066 173)

Total

In the previous period, the activity of the Group differed significantly from the characteristics of the

reporting period. Therefore, the Group amended the presentation methodology used in the previous

period, leaving the principal amount unchanged.

Comparison of the previously used presentation and this year’s presentation:

Direct costs incurred in 2020 according to the published financial statement:

(208 605)

6 886

Reclassification of the revenue from recharged costs to the sales revenue:

Reclassification of the costs incurred by Aquaphor Zrt. to the discontinued operations

category, for the sake of comparability:

Reclassification of the wage costs of AKKO Plc. to the administrative expenditures:

Adjustment of the depreciation of Vár-Logisztika Zrt.:

1 261

12 227

2 390

Adjustment of the depreciation of 4 Stripe Zrt.:

(5 345)

Adjusted direct costs incurred in 2020:

(191 186)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

3. Administrative and sales expenditures

The administrative expenditures row contains the company’s costs related to its governance and

administration activity. The cost increase was due to the inclusion of NEO Property Services Zrt. into

the Group, which took place on 26 February 2021.

Administrative expenditures:

Financial year

2021

Financial year

2020

Designation

Rental fees

(24 644)

(7 706)

Insurance fees

Healthcare services

Other materials

(29 679)

(1 253)

(1 216)

(16 546)

(165)

(912)

Other services used

Miscellaneous expenses

Electricity, water, waste water charges

Official fees and levies

IT services

Lawyer and legal fees

Environmental protection

Occupational health and safety, fire protection

Printed material and office supplies

Education costs

(840)

(676)

(10 370)

(33 471)

(30 485)

(2 324)

(349)

(1 231)

(9 034)

(4 135)

(29 450)

(7 185)

(1 087)

(7 905)

Parking

Fee for financial services

(1 402)

Postal charges

Professional journals, professional books

(3 622)

(471)

Transportation costs

Personal costs

Accounting services, audit

Travel and mission expenses

Fuels

(17 521)

(461 653)

(40 380)

(757)

(34)

(12 227)

(11 942)

(8 039)

(4 993)

(951)

Property protection

Maintenance

Total

(733 415)

(51 240)

In 2021, HUF 461,653,000 were recognised as wage costs at Group level. The average staff number of

the Group: 499, of which the number of persons employed by NEO Property Services Zrt. is 496.

The significant increase in the administrative expenditures has been induced by the inclusion of NEO

Property Zrt. in the Group.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Costs of sales include the expenditures directly related to sales.

Financial year Financial year

Designation

2021

2020

Listing and maintenance fees, fees paid directly to securities

brokers

(8 126)

(6 726)

Communication and marketing costs

(27 069)

(4 071)

Total

(35 195)

(10 797)

Financial year Financial year

Designation

2021

2020

Administrative expenditures

Sales expenditures

Total

(733 415)

(35 195)

(768 610)

(51 240)

(10 797)

(62 037)

From the administrative and sales expenditures incurred in 2020, the balances related to the

derecognised subsidiary were reclassified to the profit or loss from discontinued operations.

4. Other revenues and expenditures

Other revenues and expenditures are items that cannot be linked to the core activity, but they have

an impact on profit or loss.

Designation

Financial year 2021 Financial year 2020

Payments to foundations, donations

Net value of fines, penalties and default interests

Building and land tax

Sale and scrapping of fixed assets

Local tax in France

(7 332)

547

(13 599)

(27)

(88)

(13 590)

(238)

(2 449)

Corporate tax adjustments in previous year

Other taxes

Employee reimbursements

(4 183)

(26 393)

5 480

(356)

Provisions made/used

(176 326)

(18 469)

(1 966)

67 784

2 564

Cancelled receivables, liabilities

Expenditures related to damages

Impairment loss and reversal of receivables

Miscellaneous sundry items

Total (with regard to sign)

(447)

(16 930)

(172 158)

The other revenues and expenditures of 2020 are adjusted to the figures of the sold subsidiary for the

sake of comparability.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

5. Financial revenues and expenditures

Designation

Financial year 2021 Financial year 2020

Interest received

Interest payable

Revaluation of foreign currency assets and liabilities

197

(267 582)

5 669

7 453

(5 587)

83 080

Expected Credit Loss (ECL) and reversal

7 321

(4 512)

Discount

Other financial expenditures

Total (with regard to sign)

3 078

(1 957)

(253 274)

80 433

The significant increase in the financial expenditures was due to the interest of the bank loan

contracted by the Parent Company (THUF 267,582).

From the financial revenues and expenditures incurred in 2020, the balances related to the

derecognised subsidiary were reclassified to the profit or loss from discontinued operations.

6. Gain or loss on disposal of subsidiary

The 100% business share in Aquaphor Zrt. was profitably sold by the Group, the profit amounted to

THUF 7,161. As a consideration for the business share, 746,988 treasury shares of the Parent Company

were transferred back to the Group. In the reference period (in 2020), ALQ69 Zrt. was profitably sold,

the profit was THUF 59,972.

Designation

Financial year 2021 Financial year 2020

Selling price

148 550

(107 515)

(33 874)

890 000

(41 107)

(802 309)

Derecognised net asset

Derecognised goodwill

Proprietary transactions

Derecognition of non-controlling interest

Total (with regard to sign)

13 388

59 972

7 161

7. Income tax expenditure

This expenditure position comprises the following tax items:

Designation

Financial year 2021 Financial year 2020

Corporate income tax

Deferred tax expenditure/income

Local business tax

(187 921)

21 915

(133 605)

(299 611)

(11 893)

11 689

(3 712)

(3 915)

Total (with regard to sign)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The Group presents the corporate income tax and local business tax among income tax expenditures.

The corporate income tax rate was 9% during the year. The corporate income tax burden amounts to

THUF 187,921, a significant share of it (THUF 179,060) is stated in the books of NEO Property Services

Zrt.

The local business tax rate is 2%; however, Government Decree 639/2020 (of 22 December), mitigating

the economic difficulties caused by the COVID-19 pandemic, makes it possible for SMEs to pay 1% local

business tax in 2021. As far as the members of the Group are concerned, Moon Facility Zrt., 4 Stripe

Zrt. and VÁR-Logisztika Zrt. are entitled to pay a reduced tax rate.

The tax authorities regularly inspect the members of the Group. Since there may be disputes with

regard to the interpretation of the taxation rule applicable to the individual transactions, later on the

tax authority may change, during its proceeding, the tax balances shown in the financial statements.

B. Profit or loss from discontinued operations

Based on IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, the Parent Company

classified its subsidiaries in the discontinued operations category.

Discontinued operations are part of an undertaking that has been disposed of or has been classified as

held for sale, and



that constitute a separate line of business of the activity or a separate geographical area or are

part of a plan for disposal, or



a subsidiary acquired for the purpose of further sale.

The Group’s total comprehensive income from discontinued operations is as follows:

Financial year

2020

Financial year 2021

COMPREHENSIVE INCOME STATEMENT

(532)

(37)

30 999

(11 817)

19 182

(1 195)

(868)

Revenue

Direct expenditures

Gross profit or loss

Administrative and sales expenditures

Other expenditure, net

(13 170)

3 949

Financial expenditures, net

Profit or loss before tax

(569)

(904)

Income tax expenditure

After-tax profit or loss from discontinued operations

Other comprehensive income (after income tax)

(569)

3 045

Total comprehensive income from discontinued operations

(569)

(0,02)

3 045

0,09

Earnings per share from discontinued operations (in

HUF)

Diluted earnings per share from discontinued

operations (in HUF)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The profit or loss related to these activities are detailed below.

Sales revenue from discontinued operations

Financial year 2021 Financial year 2020

Designation

Revenue from property lease

30 999

Total

30 999

Direct operating expenditures from discontinued operations

Financial year 2021 Financial year 2020

Designation

Overhead expenses

Maintenance fees

Depreciation

Property insurance

Shipment of waste

Parking space rental

Total

(215)

(905)

(16)

(9 889)

(114)

(94)

(800)

(317)

(532)

(11 818)

Administrative expenditures from discontinued operations

Financial year 2021 Financial year 2020

Designation

Bookkeeping services

Fee for financial services

Official fees and levies

Miscellaneous expenses

Total

(32)

(5)

(490)

(652)

(5)

(19)

(1 167)

(37)

Costs of sales from discontinued operations

Financial year 2021 Financial year 2020

Designation

Communication and marketing costs

(28)

Total

(28)

Other revenues and expenditures from discontinued operations

Financial year

2021

Financial year

2020

Designation

Fine, penalty and default interest

Building and land tax

(1)

(867)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Total (with regard to sign)

(868)

Financial revenues and expenditures from discontinued operations

Financial year 2021 Financial year 2020

Designation

Other interest payable

Revaluation of foreign currency assets and liabilities

Total (with regard to sign)

(1 363)

(11 806)

(13 170)

Income tax expenses from discontinued operations

Financial year 2021 Financial year 2020

Designation

(301)

(603)

(904)

Corporate income tax

Local business tax

Total (with regard to sign)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

VI. Supplementary notes to the balance sheet

8. Value of customer relations

Upon the inclusion of NEO Property Zrt., the Group identified the previously unstated intangible assets

and separated them from the initial difference, in accordance with the rules of IFRS 3. In this regard,

the Group identified the customer relations and determined their value with the involvement of an

external expert, by deducting it from its cash-generating capacity.

Value of customer relations

Gross value

Balance at 31 December 2020

Categorisation on acquisition

Purchase

12 794 000

Balance at 31 December 2021

12 794 000

Depreciation

Balance at 31 December 2020

Categorisation on acquisition

Depreciation recognised

Balance at 31 December 2021

(490 729)

Net value

Balance at 31 December 2020

Balance at 31 December 2021

12 303 271

9. Goodwill, negative goodwill

The value of goodwill increased as a result of the acquisitions of 26.02.2021.

Designation

31.12.2021

265 735

31.12.2020

Opening

1 068 044

Goodwill on NEO Property operation

Derecognition of goodwill due to the sale of the

subsidiary

5 379 619

(802 309)

Total

5 645 354

265 735

The Parent Company owns 51% of NEO Property Services Zrt.through Elitur Invest Zrt.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The purchase price is paid in cash which is given in consideration for the AKKO Invest Plc. shares. In the

course of the acquisitions of business shares, it was not the entire purchase price which was settled,

therefore the Group generated liabilities amounting to THUF 4,830,000.

Goodwill amount – related to the individual subsidiaries – on the balance sheet date:

Neo Property Zrt. and

Designation

A PLUS INVEST Zrt.

279 000

ELITUR Zrt.

Purchase price

24 711 218

Value of net assets taken over at the date of

acquisition

7 689 058

13 265

Value of net assets identified at the date of

acquisition

12 794 000

265 735

(1 151 460)

19 331 598

5 379 619

13 265

265 735

Deferred tax impact

Total net assets

Goodwill on 31.12.2021

The Group treated the acquisition of NEO Property Zrt. and ELITUR Invest Zrt. as a coherent

transaction, because the reason for the acquisition of the two companies was to acquire the activity

of NEO Property Zrt.

The net asset value of the new investments include the pool of contracts with customers (value of

customer relations) which has been identified and registered by the Group as intangible assets. Its

value at the date of the acquisition is: THUF 12 794 000.

10. Right-of-use assets

Among the right-of-use assets, the Group presents the right-of-use (ROU) assets related to the leased

car fleet and the rental rights of office premises, as well as the related depreciation charge.

Liabilities related to the right-of-use are recorded as lease liabilities in accordance with the rules of

IFRS 16. The Group took ownership of those assets with the purchase of NEO Property Zrt.

Net value of the right-of-use assets on 30.06.2021:

ROU passenger

cars

ROU property

rental

Gross value

Total

Balance at 31 December 2020

Categorisation on acquisition

Conclusion of new contracts

243 019

176 806

323 719

11 814

566 738

188 620

Balance at 31 December 2021

419 825

335 533

755 358

ROU passenger

cars

ROU property

rental

Depreciation

Total

Balance at 31 December 2020

Categorisation on acquisition

(123 696)

(112 332)

(236 028)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Depreciation recognised

(39 712)

(47 643)

(87 355)

Balance at 31 December 2021

(163 408)

(159 975)

(323 383)

Net value at 31 December 2021

256 417

175 558

431 975

Lease liabilities

Passenger

cars

Property

rental

78 696

102 223

Designation

Total

Lease debt due within one year

Lease debt due over a year, but within five years

Lease debt due over five years

136 034

126 305

214 730

228 528

Total

262 339

180 919

443 258

Passenger

cars

Property

rental

221 842

11 815

(52 738)

Designation

Total

Total opening lease liabilities

Lease liabilities upon acquisition

Interim contracting

345 253

257 351

(159 346)

123 411

245 536

(106 608)

Payment of lease fees

Outstanding lease liabilities at the end of the semester

262 339

180 919

443 258

11. Other intangible assets

The Group took ownership of intangible assets not highlighted elsewhere by purchasing NEO Property

Services Zrt. This item includes licenses, as well as purchased software and software developed by the

Group itself.

Gross value

Balance at 31 December 2020

Categorisation on acquisition

Purchase

297 447

13 662

Balance at 31 December 2021

Depreciation

311 109

Balance at 31 December 2020

Categorisation on acquisition

Depreciation recognised

(268 344)

(13 278)

Balance at 31 December 2021

Net value

(281 621)

Balance at 31 December 2020

Balance at 31 December 2021

29 488

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

12. Investment properties

The figures related to the properties of the Group on 31 December 2021 are as follows:

Gross value

Industrial property

Residential property

Total

Balance at 31 December 2020

Extension

Disposals

2 393 948

2 334 132

4 728 079

Impact of exchange rate changes

50 697

Decrease due to sale of subsidiary

Investment value adjustment

Balance at 31 December 2021

(260 459)

(41 198)

2 083 172

(260 459)

(41 198)

4 477 119

2 393 948

Depreciation

Balance at 31 December 2020

Derecognition due to sales

Categorisation on acquisition

Depreciation recognised

Industrial property Residential property

Total

(190 819)

(181 417)

(9 403)

(76 605)

(6 238)

(82 844)

Decrease due to sale of subsidiary

Balance at 31 December 2021

(258 023)

(15 642)

(273 663)

Net value

Industrial property Residential property

Total

Balance at 31 December 2020

2 212 531

2 324 729

4 537 260

Balance at 31 December 2021

2 135 925

2 067 530

4 203 456

The group measures investment properties based on the cost model. The depreciation of the

properties takes place as described in the summary of the Accounting Policy.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The Group has the following properties:

Owner of the

property

Address of

property

Classification of

property

Plot size Superstructure

Status of utilisation

(m²)

size (m²)

1133 Budapest,

Kárpát utca 50 residential property

AKKO Invest Plc.

121 Let out

ground floor

5000 Szolnok,

Kombájn utca

8800

MOON Facility Zrt.

industrial property

48 627

8 223

3 330 Let out

2 064 Let out

Vár-Logisztika Zrt. Nagykanizsa,

Vár utca 12.

industrial property

residential property

18 Avenue,

Louis Gallet,

Juan-Les-Pins,

ALQ SAS

1 185 under reconstruction

Antibes, France

2040 Budaörs,

Kinizsi 4-6

1121 Budapest,

Eötvös út 31

4Stripe Zrt.

industrial property

residential property

3 932

2 269

3 904 Let out

A PLUS INVEST Zrt.

438 under reconstruction

The net value of the properties on 31 December 2021 is shown in the table below:

Amendment of

initial cost due

to currency

exchange

Accumulated

depreciation

Net value

THUF

Designation of the property

Initial cost

Office in Kárpát utca

98 800

(6 090)

92 710

Industrial property in Szolnok

Industrial property in Nagykanizsa

Cyrano Hotel, France

587 400

418 872

(59 625)

(104 142)

527 775

314 730

1 796 133

1 387 674

1 796 133

1 293 419

Industrial property in Budaörs

(94 255)

Residential property in Eötvös

utca in Budapest

188 240

(9 551)

178 688

Total

4 477 119

273 663

4 203 456

Last year the net values of the properties were as follows:

Amendment

of initial cost

due to

currency

exchange

Accumulated

depreciation

Net value,

THUF

Designation of the property

Initial cost

Office in Kárpát utca

Industrial property in Szolnok

Industrial property in

Nagykanizsa

98 800

418 872

(3 628)

(81 858)

95 172

337 014

587 400

(38 296)

549 104

Cyrano Hotel, France

Industrial property in Budaörs

1 786 634

1 389 934

1 786 634

1 326 413

(63 521)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Residential property in Eötvös

188 240

(5 776)

182 464

utca in Budapest

Zamárdi, holiday home

Total

260 459

4 730 339

260 459

4 537 260

193 079

With the sale of Aquaphor Zrt., the property located in Zamárdi was taken out of the ownership of the

Group. The accumulated depreciation, as well as the conversion to HUF of the value of Hotel Cyrano

recognised in EUR brought further changes in value.

Estimates concerning the fair value of the properties on the record date:

Fair value estimates

31.12.2021, THUF

Designation

Flat in Kárpát utca

101 800

593 000

394 000

1 645 740

1 553 000

654 800

Industrial property in Szolnok

Industrial property in Nagykanizsa

Cyrano Hotel, France

Industrial property in Budaörs

Residential property in Eötvös utca in Budapest

Total

4 942 340

The fair value of the assets was determined by property experts in 2021, the property experts had a

relevant qualification. The assets are utilised partially by means of operating lease.

The lease contracts are of unlimited duration, with short notice.

13. Properties

The Group took ownership of those assets with the purchase of NEO Property Services Zrt. Among the

properties, the Group keeps record of transformations, refurbishments performed and activated on

rented properties, and of office containers used by the Group itself.

THUF

Gross value

Balance at 31 December 2020

Categorisation on acquisition

Purchase

70 359

20 765

Decrease

(15 000)

Balance at 31 December 2021

76 124

Depreciation

Balance at 31 December 2020

Categorisation on acquisition

(39 805)

Depreciation recognised

(5 479)

Balance at 31 December 2021

(45 284)

Net value

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Balance at 31 December 2020

Balance at 31 December 2021

30 840

14. Plant, fixtures and equipment

The figures related to plant, fixtures and equipment for 31 December 2021 are as follows:

Gross value

THUF

Balance at 31 December 2020

Categorisation on acquisition

Purchase

1 317

529 885

38 255

(826)

Decrease

Balance at 31 December 2021

568 631

Depreciation

Balance at 31 December 2020

Categorisation on acquisition

Derecognition upon the sales of the asset

Depreciation recognised

(919)

(470 618)

165

(31 910)

Balance at 31 December 2021

(503 282)

Net value

Balance at 31 December 2020

Balance at 31 December 2021

398

65 349

The depreciation of the individual assets takes place as described in the summary of the Accounting

Policy.

15. Trade accounts receivable

Among trade accounts receivable the Group records the unpaid consideration payable by customers

for the goods sold or services rendered in the usual course of business plus value added tax.

Designation

31.12.2021

31.12.2020

Trade accounts receivable

Expected credit loss

Total

7 620 959

(10 456)

7 610 503

6 660

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

16. Receivables from other companies

In 2021, the Group did not have other companies. The receivables were paid to AGY96 AG.

Designation

31 December 2021

31 December 2020

1 671 630

AGY69 AG

Expected Credit Loss (ECL)

Total

(7 522)

1 664 108

17. Other receivables and prepayments and accrued income

On the balance sheet date the Group had the following other receivables and prepayments and

accrued income:

Designation

31.12.2021

61 301

31.12.2020

47 253

Other non-income tax receivables

Advances granted

353 752

727

Accrual of sales revenue, other interest income, other

revenue

848 031

514

Prepaid costs, other interest paid, other expenditures

Overpaid suppliers

22 897

257

2 321

Bail granted

7 932

Security deposit granted

Performance collaterals and guarantees

Total

1 840

34 650

1 330 403

51 072

In 2021 the Group classified VAT receivables as other non-income tax receivables. Advances granted

are composed of advances granted to suppliers and personnel for subsequent recognition. The amount

of advances granted to suppliers is HUF 347,459,000 in the records of the Group. Revenue accruals

include the amount of revenue due for 2021, but not yet invoiced, mainly coming from the property

operation line of business. The Group states the costs and expenditures charged to profit or loss,

incurred in 2021 but partially belonging to the year after the balance sheet date in the prepaid costs,

other interest paid, other expenditures row. Bails, security deposits and collaterals are related to

complex property operation services.

18. Cash and cash equivalents

Cash and cash equivalents comprise the following items:

Designation

Bank Accounts

31.12.2021

1 320 909

31.12.2020

70 379

Cash on hand

3 484

711

Cash accounts at brokers

130

165

(197)

Expected Credit Loss (ECL)

Total

1 324 326

71 258

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

The Group has no cash equivalents. The interest received on bank accounts is 0-1%. The fair value of

these items is almost the same as their carrying amounts.

19. Subscribed capital

The subscribed capital contains the face value of outstanding shares.

The decision on increasing the share capital is made by the General Meeting based on the proposal of

the Governing Board. The decision of the General Meeting is not necessary when the increasing of the

share capital takes place within the competence of the Governing Board based on the authorisation of

the General Meeting laid down in its decision. The share capital may be reduced based on the decision

of the General Meeting.

On 31 December 2021 the subscribed capital was HUF 833,880,000.

The table below shows the nominal value of the Parent Company’s outstanding shares:

Designation

Nominal value of shares outstanding

on 1 January

31 December 2021

833 880

31 December 2020

833 880

Change during the year

Total

833 880

The table below shows the quantity of the parent company’s outstanding shares:

31 December 2021

(pcs) Nominal value: HUF

25/piece

31 December 2020

(pcs) Nominal value: HUF

25/piece

Designation

Ordinary shares issued

33 355 200

Total

33 355 200

The Group does not deduct the nominal value of its treasury shares in the balance sheet from the

subscribed capital.

Treasury shares are included in this position:

Designation

31.12.2021

833 880

31.12.2020

833 880

Total nominal value of shares

Of which treasury shares (at nominal

value)

4 750

23 425

Nominal value of outstanding ordinary shares

810 455

829 130

20. Share premium

Share premium comprises the surplus value paid for the parent company’s share and the trading gain

on the sale of treasury shares.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

21. Treasury shares

The quantity and value of treasury shares are as follows.

31.12.2021

(pcs)

31.12.2020

(pcs)

Designation

Opening balance

Number of treasury shares sold through the

stock exchange

190 000

Treasury shares accepted as consideration for

tangible assets

746 988

190 000

Changes in shares (pcs)

936 988

190 000

Designation

31.12.2021

31.12.2020

Opening balance

Treasury shares sold through the stock

exchange

(70 300)

(310 000)

Treasury shares accepted as consideration for

tangible assets

(70 300)

Changes in treasury shares at carrying amount

(with regard to sign)

(380 300)

(70 300)

The signs shown in the table are from equity perspective.

22. Proprietary transactions

In the proprietary transactions balance sheet row the Group states the value created in equity when

acquiring minority interests. The difference is the market value of the consideration for the acquired

equity interest and the carrying amount of the non-controlling interest.

The amount of proprietary transactions decreased by THUF 33,874 derecognised because of the sale

of Aquaphor Zrt.

Designation

Opening balance

31.12.2021

(240 514)

31.12.2020

82 017

Difference realised on the acquisition of

minority interest in 4 strip Zrt .- 10.01.2020

(242 789)

(45 868)

Difference realised on the acquisition of

minority interest in Plus Invest Zrt - 13.01.2020

Difference realised on the acquisition of

minority interest in Aquaphor Zrt. - 26.05.2020

Derecognition of the difference realised on the

acquisition of minority interest in Aquaphor Zrt.

- 19.05.2021

(33 874)

33 874

Total

(206 640)

(240 514)

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

23. Accumulated exchange difference

The functional currency of the French subsidiary is euro. Accordingly, the financial statements of the

subsidiary must be converted into Hungarian forint. During the conversion assets and liabilities must

be converted at the closing euro exchange rate, the profit and loss items at the average exchange rate,

while equity components at historic exchange rate with the proviso that the capital balance of the

acquisition date must be held at the exchange rate prevailing on the acquisition date.

Designation

31.12.2021

931 689

31.12.2020

917 309

950 583

(26 752)

Assets at closing exchange rate

Liabilities at closing exchange rate

Equity at historic exchange rate

979 930

(40 593)

Difference

(7 648)

(6 522)

24. Liabilities from loans (long- and short-term)

The Group has the following liabilities from loans:

Due

within 5

year

Interest

rate

Due within

1 year

Due over

5 years

31.12.2021

Debtor

Expiry date

11 528 970

56 159

AKKO Invest Plc.

VÁR-Logisztika Zrt.

4 Stripe Zrt.

31.03.2036

16.12.2024

29.02.2032

2,5%

1,9%

681 527 2 900 387 7 947 056

20 283 35 876

44 225 170 591 247 043

461 859

12 046 988

Total

746 035 3 106 854 8 194 099

Vár-Logisztika Zrt. concluded an investment loan contract on 3 July 2018 with Orgovány és Vidéke

Takarékszövetekezet “in liq.”. The loan agreement was taken over by Takarékbank Zrt., thus the

redemption also takes place by executing payments to the successor financial institution.

Oberbank AG disbursed a loan of EUR 1,250,000 to 4 Stripe Zrt. on 05.03.2020.

In its Decree No. 47/2020 (18.03.2020) on Immediate measures to mitigate the effects of the

coronavirus pandemic on the national economy, the Government of Hungary announced a

moratorium on principal, interest and fee payments arising from credit and loan contracts. Pursuant

to that Decree, the redemption of both loans was suspended until 31 October 2021, when the payment

of instalments and interests had to be resumed pursuant to Government Decree No. 536/2021 (of 15

September).

A loan of HUF 12 billion was disbursed by OTP Bank Nyrt. to the Parent Company on 26.02.2021.

The carrying amount of bank loans essentially corresponds to their fair value.

The changes in outstanding loans are shown in the table below:

Designation

Long term loans

Short term loans

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

462 246

12 000 000

(471 030)

(253 840)

(691 724)

Opening balance

54 311

12 000 000

Borrowing during the year

Principal instalment

Interest payment in 2021

Reclassification due to maturity

Amendment of liabilities

Year-end revaluation

Closing

691 724

1 461

11 300 953

746 035

In addition to bank loans, the Company also has received loans from other undertakings. In the course

of 2019, Elitur Invest Zrt. received a long-term loan from WING Zrt., its former parent company. The

maturity date of the loan is 31.12.2024, the interest rate is 2% higher than the actual basic interest

rate of the central bank.

Designation

Long term loan

Total

31 December 2021

272 207

25. Provisions

Provisions are stated in the books of NEO Property Services Zrt., a subsidiary that has been recently

included in the Group. The following table presents the relevant items and their changes as at

31.12.2021.

Designation

31.12.2021

212 876

31.12.2020

Penalties and claims from contracting

Guarantee liabilities

Severance pay

Litigation

74 855

2 042

1 500

Total

291 273

Provisions for penalties, claims and guarantees are due to the activity of the property operation line

of business and their volume correspond to normal business.

Having regard to lawsuits in progress, the subsidiary records THUF 1,500 as provisions. The applicant,

a private individual claims compensation for damages and maintenance substitution allowance for

reckless endangerment within the scope of employment. The insurance company has already paid the

damages awarded and the litigation costs, but it is expected that THUF 1,500 will be incurred as

document costs and costs advanced by the State.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Changes in provisions

26.02.2021

Training

Discharge 31.12.2021

Designation

(acquisition)

(36 391)

(14 575)

(18 800)

(69 766)

Penalties and claims from contracting

80 071

14 575

20 300

114 946

169 196

74 855

2 042

212 876

74 855

2 042

1 500

291 273

Guarantee liabilities

Severance pay

Litigation

Total

246 093

26. Deferred tax assets and liabilities and subsequently payable taxes

During the reporting period the following deferred tax balances occurred:

Designation

31 December 2021

31 December 2020

Deferred tax assets

Deferred tax liabilities

1 578 587

449 045

Deferred tax liability (consolidated net position)

1 578 587

449 045

Both current year’s and previous year’s deferred tax positions were recognised applying a tax rate of

9%.

Reconciliation of deferred tax:

Carrying

31 December 2021

Tax value

29 488

Difference

12 303 271

amounts

12 332 759

4 203 456

30 840

Intangible assets

Investment properties

Properties

2 136 294

30 840

2 067 162

65 349

5 645 354

65 349

5 645 354

Plant, fixtures and equipment

Goodwill

Other receivables and prepayments and accrued

income

1 330 404

Cash and cash equivalents

Long term bank loans

1 324 326

11 300 953

746 035

1 324 326

11 300 953

746 035

Short term loans

Provisions made

176 326

(67 784)

Impairment loss recognised on receivables

Trade accounts payable

Other short-term liabilities and accruals

Income tax liabilities

3 474 740

8 903 837

53 906

3 474 740

8 903 837

53 906

(3 060 908)

31 980 618

Development reserve

3 060 908

17 539 883

49 411 959

Total deductible difference

Total taxable difference

17 539 883

Total deferred tax assets

Total deferred tax liabilities

1 578 587

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

A significant part of total deferred tax calculated for 2021 is due to the recognition of the long-term

customer list identified under the intangible assets The deferred tax balances were netted when they

were incurred at the same taxed unit.

27. Deferred purchase price of the acquisition

Designation

31.12.2021

31.12.2020

Other liabilities related to the purchase of

business shares

4 830 000

Total

In the course of the acquisitions of business shares in 2021, it was not the entire purchase price which

was settled, therefore the Group generated liabilities vis-à-vis the Seller, amounting to

THUF 4,830,000. The purchase price was stated at non-discounted value.

28. Trade accounts payable

Trade accounts payable only include items due in the short run, presented at non-discounted value.

The fair value of the balance is almost the same as the carrying amount.

Designation

31 December 2021

31 December 2020

2 403

Trade accounts payable

3 474 740

Total

2 403

The largest balances of trade accounts of the Group at the end of the financial year:

Partner’s name

Balance at 31 December 2021

IL-GENERÁL '86 Építőipari Kft.

Wini Security Kft.

OMS 24 Zrt.

362 570

321 019

186 371

175 171

119 285

110 769

105 014

88 830

STYLO ÉpGép Kft.

ALTEO Energiakereskedő Zrt.

REÁL-BÉR Építőipari Kft.

NOEL-BAU Ép.ip.Ker. és Szolg. Kft.

Terno Buda Kft.

29. Other short-term liabilities and accruals

This position includes liabilities not connected to suppliers or loans. These mostly include tax balances

– other than income tax – wage-related liabilities, accruals and deferred income. The items are stated

at non-discounted value, and their fair value corresponds to their carrying amount.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

31. Earnings per share (EPS), EBITDA

Ownership ratios on 31 December 2021 by share types:

Parent company’s

profit or loss

attributable to

shareholders

Number of shares

31.12.2021.

Designation

31.12.2021.

Ordinary share

33 355 200

585 263 382

Total

33 355 200

Due to the sale of Aquaphor Zrt., the Group divided the 2021 figures into continued and discontinued

operations.

31.12.20 31.12.20

Designation

Profit or loss attributable to the shareholders of the Group from

continuing operations

585 263

49 277

Parent company’s profit or loss attributable to the shareholders after

deduction of a fix dividend

585 263

50 888

Annual profit or loss attributable to ordinary shares

32 702

681

33 349

955

Weighted arithmetic mean of outstanding ordinary shares

Earnings per share from the continuing operations (in HUF)

17,90

1,53

Parent company’s profit or loss attributable to holders of ordinary shares

upon dilution

585 263

50 888

33 349

955

32 702

681

Weighted arithmetic mean of diluted ordinary shares

Diluted earnings per share from continuing operations (in HUF)

17,90

1,53

31.12.20 31.12.20

21 20

Designation

Annual profit or loss from discontinued operations attributable to the

Group’s shareholders (HUF thousands)

(569) 3 045

Annual profit or loss attributable to holders of ordinary shares

(569)

3 045

32 702

681

33 349

955

Weighted average number of outstanding ordinary shares

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Earnings per share from discontinued operations (in HUF)

(0,02)

0,09

Parent company’s profit or loss attributable to holders of ordinary shares

upon dilution

(569)

3 045

32 702

681

33 349

955

Weighted arithmetic mean of diluted ordinary shares

Diluted earnings per share from discontinued operations (in HUF)

(0,02)

0,09

EBITDA

The Group has decided to also publish the EBITDA index according to the practice in the industry, which

is an index not defined in the IFRS: The calculation of the index can be found in the Accounting Policies.

The EBITDA is deducted as follows:

Year 2021

Year 2022

53 192

Profit or loss before tax

Depreciation

Elimination of financial revenues and expenditures

884 874

714 769

253 274

103 890

80 433

237 515

1 852 916

EBITDA

32. Fair value hierarchy of financial assets and liabilities

Based on IFRS 13, with regard to its assets and liabilities measured at fair value – with a view to

increasing consistency and comparability – the Group presents the fair value hierarchy based on a

three-level measurement category as follows.

The inputs used for determining the fair value of the asset or liability may be allocated to different

levels within the fair value hierarchy. If the inputs used to measure fair value are categorised into

different levels of the fair value hierarchy, the fair value measurement is categorised in its entirety in

the level of the lowest level input that is significant to the entire measurement. It requires careful

consideration to assess how significant a specific input is to the entire measurement, in the course of

which factors applicable to assets or liabilities must be taken into account.

Measurement level 1:quoted, usually stock exchange prices in active markets for homogeneous assets

or liabilities that the Group can access at the measurement date.

Measurement level 2: measurement containing inputs other than quoted market prices that are

observable for the asset or liability, either directly or indirectly.

Measurement level 3: measurement that also uses inputs not directly observable for the asset or

liability.

The Group possesses the following financial assets and liabilities:

Financial assets and balances

Designation

31.12.2021

31.12.2020

Trade accounts receivable

7 610 503

6 660

Receivables from other companies

Other receivables and prepayments and accrued income

Cash and cash equivalents

1 330 404

1 324 326

1 664 108

51 072

71 258

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Total

10 265 233

1 793 098

Financial liabilities and balances

Designation

31.12.2021

31.12.2020

Bank loans

12 046 988

3 474 740

4 073 838

443 258

516 557

Trade accounts payable

Other short-term liabilities

Lease liabilities

2 403

25 748

Deferred purchase price of the acquisition

4 830 000

Total

24 868 823

544 708

The individual instruments are positioned in the fair value hierarchy as follows:

Designation

31.12.2021

31.12.2020

Measure Measure Measure Measure Measure Measure

ment

level 1

level 2

level 3

level 1

level 2

level 3

Financial assets

Trade accounts receivable

7 610 503

6 660

1 664

108

Receivables from other companies

Receivables, prepayments and

accrued income

Cash and cash equivalents

Total (assets)

1 330 404

8 940 907

51 072

1 721 840

1 324 326

71 258

Financial liabilities

12 046

988

Bank loans, leases

516 557

Trade accounts payable

3 474 740

8 903 837

2 403

Other short-term liabilities and

accruals

25 748

Lease liabilities

Deferred purchase price of the

acquisition

443 258

4 830

000

24 868

823

Total (liabilities)

544 708

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

VII. Other disclosures

33. Impact of the purchase of equity interests on the cash-flow of the Group in the reporting year

Amounts paid for the acquisition of equity interests less liquid assets received

Designation

31.12.2021

Book value of the business shares of NEO Property Services Zrt. and Elitur Invest

Zrt.

(18 500 000)

of which:

Value of customer relations at the date of the acquisition:

Goodwill

(12 794 000)

(5 706 000)

Total cash-flow reduction:

(18 500 000)

Outstanding payment liability from the purchase price

Cash balance of the subsidiaries at the date of the acquisition:

4 830 000

2 730 738

Total cash-flow increase:

Cash flow balance:

7 560 738

(10 939 262)

34. Operating segments

The Parent Company is listed on the stock exchange, and as such segment information must be

disclosed on a mandatory basis at least in the consolidated financial statements.

The Group identified the following operating segments on 31 December 2021:



Industrial property segment

Residential property segment

Facility Management

ITS line of business

Fit-Out line of business

In 2021, this structure was extended by 4 new segments those deisgnate complex property operation

duties:

Facility Management includes activities related to property operation.

The ITS line of business covers the area of technical facility management and the area of infrastructure

management.

Within the Fit-Out line of business, it performs the design and complete construction related to office

buildings and various facilities.

All the new lines of business became part of the Group as a result of the purchase of NEO Property

Services Zrt.

The pool of contracts with customers is stable and long-term.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Consolidated income statement by segments on 31 December 2021:

Facility

Industrial

property

segment

Residential

property

segment

Management Subsegment

line of

business

- total

Designation

Revenue from property lease

116 378

5 500

121 878

Revenue from parking space lease

1 061

(536)

1 061

290

Revenue from recharged costs

Property operation

Revenue from property sale

826

12 496 447

Sales revenue of the segment

Direct expenditures

116 903

(112 791)

(4 323)

6 326

(9 931)

12 496 447

12 619 676

(11 046 580) (11 169 302)

Administrative and sales expenditures

Other expenditure, net

(103 014)

(2 997)

(380 074)

(46 652)

(110)

(487 411)

(58 296)

(244 766)

(8 647)

Financial expenditures, net

(5 804)

(238 852)

Income from the sale of subsidiaries

Profit or loss before tax within the segment

(14 662)

(348 469)

1 023 032

659 901

Not

allocated to

any segment

ITS line of

business

Fit-Out line

of business

Designation

Total

Revenue from property lease

Revenue from parking space lease

Revenue from recharged costs

Property operation

Revenue from property sale

Sales revenue of the segment

Direct expenditures

121 878

1 061

5 366

22 009 623

5 076

6 004 292

6 009 368

(5 117 209) (2 011 404)

2 076 457

1 432 427

(1 768 258) (20 066 173)

2 076 457

22 137 928

Administrative and sales expenditures

Other expenditure, net

Financial expenditures, net

(182 773)

(28 120)

(63 154)

(35 272)

(85 742)

(8 508)

(768 610)

(172 158)

(253 274)

Income from the sale of subsidiaries

7 161

Profit or loss before tax within the segment

681 266

1 899

(458 192)

884 874

Consolidated sales revenue and profit or loss by segments on 31 December 2021:

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Industri

propert

Residenti

property

Facility

Manageme Subsegme

nt line of

Designation

nt - total

segmen segment

business

12 619

676

Sales revenue from external parties

116 903

6 326 12 496 447

Intragroup sales revenue

Sales revenue of the segment (including inter-segment

revenues)

12 619

676

116 903

6 326 12 496 447

Profit or loss of the segment (before tax)

(14 662) (348 469)

1 023 032

659 901

Not

allocated

to any

segment

ITS line

business business

Fit-Out

line of

Designation

Total

6 009

368

2 076

457

1 432

427

22 137

928

Sales revenue from external parties

Intragroup sales revenue

Sales revenue of the segment (including inter-segment

revenues)

6 009

368

2 076

457

1 432

427

22 137

928

(458

192)

Profit or loss of the segment (before tax)

681 266

1 899

884 874

Reconciliation of sales revenues

31.12.2021

20 705 501

Total sales revenues allocated to the segment

Elimination of intragroup sales revenues

Revenues not allocated to any segment

Reconciliation of profit or loss

1 432 427

Profit or loss allocated to the segment

Profit or loss not allocated to the segment

1 343 066

(458 192)

884 874

31.12.2021

4 117

31.12.2020

3 890

Figures related to State-financed customers

Revenue

Direct material costs

Profit or loss

(2 820)

1 297

(2 729)

1 161

The revenue of the Group is generated evenly during the financial year, it has not a seasonal character

arising from its activities.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Comparative figures of the Group for 31 December 2020:

Consolidated income statement by segments on 31 December 2020:

Industrial

property

segment

Residential

property

segment

Not allocated to

any segment

DESIGNATION

Total

Revenue from property lease

107 579

4 000

1 061

111 579

1 061

Revenue from recharged costs

Revenue from property sales

(0)

107 579

(112 909)

(5 183)

(9 048)

(47 925)

70 300

75 361

(79 538)

(24 470)

(8 046)

(576)

70 300

182 940

Sales revenue of the segment

Direct expenditures

Administrative and sales expenditures

Other expenditure, net

Financial expenditures, net

Income from the sale of subsidiaries

Profit or loss before tax within the segment

1 261 (191 186)

(32 383) (62 037)

164 (16 930)

128 934

59 972

80 433

59 972

53 192

(67 487)

(37 269)

157 948

Consolidated sales revenue and profit or loss by segments on 31 December 2021:

Industria

Not

allocate

d to any

segment

Residentia

l property

segment

Designation

property

segment

107 579

Sales revenue from external parties

Intragroup sales revenue

75 361

Sales revenue of the segment (including inter-segment

revenues)

107 579

(67 487)

75 361

Profit or loss of the segment (before tax)

(37 269) 157 948

Reconciliation of sales revenues

31 December 2020

Total sales revenues allocated to the segment

Elimination of intragroup sales revenues

Revenues not allocated to any segment

Reconciliation of profit or loss

182 940

Profit or loss allocated to the segment

Profit or loss not allocated to the segment

(104 756)

157 948

53 192

The Group omits the presentation of the segments’ assets, since CODMs do not monitor that on a

continuous basis.

35. Transactions with related parties

The transactions and balances between the Parent Company and its subsidiaries – being the related

parties of the Group – are eliminated for the purposes of consolidation, and thus they are not

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

presented in this section. The Company had no business relation with other related party outside the

scope of consolidation.

The members of the Governing Board and of the Audit Committee are related parties. The members

of the Governing Board received the following remuneration during the financial year.

Designation

Wages

Benefits

Total

Governing Board Audit Committee

Total

3 285

2 035

5 320

3 285

2 035

5 320

Emoluments and wages were recognised as part of the allowances.

36. Dividend paid by the subsidiaries

In 2021, NEO Property Zrt. paid THUF 1,460,233 to its owners in the form of dividend, of which it paid

THUF 359,612 to AKKO Invest Plc. and THUF 1,100,621 to Elitur Invest Zrt. These dividends were

filtered in the consolidated financial statements.

37. Description of risks and sensitivity analysis

Through its activities the Group is exposed to risks relating to the changes of market and financial

conditions. These changes may have an impact on the profit as well as on the value of the assets and

liabilities. The purpose of financial risk management is to continuously mitigate risks through operative

and financing measures.

Market risk

The Group pursues activity also in foreign currency, which carries the risks arising from the change in

foreign exchange rates. The foreign currency transactions appear primarily through the transactions

carried out with the Group’s French subsidiary, i.e. ALQ SAS. The functional currency of the ALQ SAS is

euro.

Interest rate risk is the risk that future cash flows from certain financial assets and liabilities may

fluctuate due to the changes in market interest rates.

The Group identified interest rate risk as its current risk.

Impact of the change in interest expenditure on profit or loss.

Interest rate Interest rate Interest rate

Figures of the change of 1

reporting year percentage

point

change of 5 change of 10

percentage

points

percentage

points

Designation

Profit or loss before tax

Interest expenditure

884 874

267 582

764 404

388 052

282 525

869 932

(319 825)

1 472 281

Amount of interest-bearing liabilities

Bank loans

Average interest rate

Interest rate change

12 046 988

2,22%

12 046 988

3,22%

12 046 988

7,22%

12 046 988

12,22%

45,02%

225,11%

450,22%

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Impact of the change in interest expenditure on profit or loss.

-13,61%

-68,07%

-136,14%

Based on the analysis the following conclusions may be drawn:



A 1% change in the average interest rate would result in a change of 13.61 % in net profit or loss,

A 5% change in the average interest rate would result in a change of 68.07 % in net profit or loss,

A 10% change in the average interest rate would result in a change of 136.14 % in net profit or loss.

Impact of the change in interest income on profit or loss.

Interest rate

change of 5

percentage

points

Interest rate

change of 10

percentage

points

Figures of the change of 1

reporting year percentage

point

Designation

Profit or loss before tax

Interest income

884 874

197

898 510

13 440

964 727

79 656

1 097 159

212 089

Current year value of interest-bearing

assets

1 324 326

0,015%

1 324 326

1,015%

6739,26%

1,54%

1 324 326

6,015%

40435,57%

9,02%

1 324 326

16,015%

107828,20%

23,99%

Cash and cash equivalents

Average interest rate

Interest rate change

Change in profit or loss

Elasticity

0,02%



A 1% change in the average interest rate would result in a change of 1.54 % in net profit or loss,

A 5% change in the average interest rate would result in a change of 9.02 % in net profit or loss,

A 10% change in the average interest rate would result in a change of 23.99 % in net profit or loss.

Credit risk

Credit risk is the risk that a debtor defaults on its contractual obligations, which may cause a financial

loss to the Group.

The credit risk analysis shows the following positions:

31.12.2021

6 913 961

616 287

70 802

31.12.2020

31 December, 2021

Overdue trade accounts receivable

< 30 days

31–60 days

61–90 days

91 <

3 256

1 492

1 562

350

249

9 204

Total

7 610 503

6 660

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The

management of liquidity risk falls within the competence of the Governing Board. The Group manages

its liquidity risk by keeping a proper level of reserves and stand-by borrowing facilities, by continuously

monitoring its planned and actual cash flow figures as well as by reconciling the maturity dates of

financial assets and liabilities.

The liquidity analysis shows the following maturity dates:

Liquid over 5

Immediately

liquid

Due within 1 Due within 1-5

year years

years or in

certain

Total

situations

31 December, 2021

Cash and cash equivalents

1 324 326

Receivables from other companies

Other receivables and prepayments and

accrued income

1 330 404

7 610 503

Trade accounts receivable

Income tax receivable

Intangible assets

7 610 503

12 332 759

5 645 354

4 203 456

30 840

12 332 759

5 645 354

4 203 456

30 840

Goodwill

Investment properties

Properties

Plant, fixtures and equipment

65 349

Right-of-use assets

431 975

Financial receivables

1 324 326

8 940 907

22 709 734

32 974 966

Liquid over 5

years or in

certain

Immediately

liquid

Due within 1 Due within 1-5

Total

year

years

situations

31 December, 2021

Tax and other short-term liabilities

Trade accounts payable

Deferred tax

4 127 744

3 474 740

1 578 587

291 273

746 035

4 127 744

3 474 740

1 578 587

291 273

Provisions

Bank loans

3 106 854

272 207

8 194 099

12 046 988

272 207

Long term loan

Lease liabilities

214 730

228 528

443 258

Deferred purchase price of the acquisition

4 830 000

Equity

5 910 169

Financial liabilities

10 433 109

8 437 589

14 104 268

32 974 966

Cumulative position

1 324 326

(1 492 202)

(8 437 589)

8 605 466

The comparative figures are shown in the table below:

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

Liquid

Due

within

1-5

over 5

years or

in certain

situations

which:

interest

Immediately

liquid

Due within

1 year

31 December 2020

Total

years

Cash and cash equivalents

Receivables from other entities

Other receivables and prepayments and accrued income

Trade accounts receivable

Income tax receivable

71 258

1 664 108

51 072

6 600

1 664 108

51 072

6 660

Goodwill

265 735

Investment properties

4 537 260 3 807 572

398 398

4 803 393 6 596 491

Plant, fixtures and equipment

Financial receivables

71 258

1 721 840

Due over 5 years

or in certain

Due within

1-5 years

Of which:

interest

Expired

Due within 1 year

28 713

Total

28 713

31 December 2020

situations

Tax and other short-term liabilities

Trade accounts payable

Deferred tax

2 403

449 045

516 557

2 403

449 045

516 557

Bank loans

Equity

5 599 773 5 599 773

Financial liabilities

996 718

5 599 773 6 596 491

Cumulative position

71 258

725 122

(796 379)

Risks related to the spread of the COVID-19 virus

In order to prevent the spread of the coronavirus pandemic numerous restrictive measures have been

implemented in Hungary as well during the financial year, which also impacted the legal relations of

the property rental. In this period, there was no significant impact for the Group any more. The Group

continues to examine the impacts of the pandemic. In doing so, it gives priority to the examination of

the impact of labour supply, of the supply chain and of market solvency. At present, the Group does

not expect to have any significant impact either; however, the potential diseases may have an impact

on the work processes of the Group.

38. Disclosures due to interests in other entities

The Group has only subsidiaries. It has no associated undertakings or joint ventures.

The Group does not have to face any restriction with regard to any of its enterprises that would affect

access to the net assets, to the result or to the cash flow.

The Group has no consolidated or non-consolidated interests where control cannot be established on

the basis of the voting rights or where the voting rights do not serve the management of relevant

activities leading to control (structured entities).

No members of the Group qualify as investment companies, and they have no share in such. All

enterprises publish their separate financial statements according to their relevant laws.

Consolidated Financial Statements of AKKO Invest Plc. and its subsidiaries involved in the consolidation,

prepared in accordance with the IFRS for the financial year ending on 31 December 2021

All the figures are stated in HUF thousands unless otherwise indicated.

39. Material events after the reporting period; dividend proposed

The Group did not identify any event after the balance sheet date which would have an amending

impact on the numerical sections of the statements according to IAS 10. The Governing Board of the

Parent Company does not recommend the payment of dividends simultaneously to the adoption of

the statements for business year 2021.

40. Disclosures related to Auditor

Pursuant to Act C of 2000 on Accounting, the consolidated financial statements of the Group are

subject to mandatory audit by an independent auditor. In 2021, audit activities were carried out by

UNIKONTO Számvitelkutatási Kft. (1093 Budapest, Fővám tér 8. III/317.3.; tax number: 10491252-2-

43; Chamber registration number: 001724).

On behalf of UNIKONTO Számvitelkutatási Kft., it is Mr. Dr. László Péter Lakatos (auditor’s card number:

007102) who is responsible for performing the auditor's tasks.

Pursuant to the Accounting Act, the annual auditing fee is THUF 1,300 + VAT for the audit of

consolidated financial statements drawn up according to the International Financial Reporting

Standards (IFRS). The auditor has not performed and does not perform any activity at the Group other

than the statutory audit.

41. Disclosures related to the provider of accounting services

These financial statements have been compiled by Hajnalka Réti, a registered IFRS chartered

accountant (registration number: 202580). Ms. Hajnalka Réti has performed her duty on behalf of Rean

Hungary Kft.

42. Statements

The Consolidated Financial Statements, which have been prepared in accordance with the applicable

accounting standards and to the best of our ability, give a true and fair view of the assets, liabilities,

financial position and profit or loss, status, development and performance of AKKO Invest Plc. and of

its undertakings included in the consolidation, describing the key risks and uncertainties.

43. Authorisation of the publication of the financial statements

AKKO Invest Plc. has authorised the publication of the Group’s consolidated financial statements

prepared in accordance with the International Financial Reporting Standards (IFRS) for 2021 by the

Governing Board and the Audit Committee on 22 March 2022.

Budapest, 22 March 2022

on behalf of AKKO Invest Plc.

………………………………………

Zoltán Prutkay

chairman of the Governing Board

………………………………………

Imre Attila Horváth

vice-chairman of the Governing Board

Contents

1.Presentation of the scope of activities................................................................................... 74

2.Size and composition of the share capital............................................................................. 75

3.Changes in the structure of the Group .................................................................................. 76

4.Income realised in the period of the annual financial statements ......................................... 77

5.Accounting policy and its changes ........................................................................................ 79

6.Performance figures of the previous year ............................................................................. 79

7.Business environment and results of the year ...................................................................... 83

8.Objectives and strategy......................................................................................................... 92

9.Executive officers................................................................................................................... 93

10. Employment policy............................................................................................................. 96

11. Research and experimental development......................................................................... 96

12. Environmental protection................................................................................................... 96

13. Presentation of the premises............................................................................................. 99

Disclaimer............................................................................................................................................ 100

Presentation of the scope of activities

The Parent Company was registered by the Company Court on 07.08.2006, and it was

transformed into a public limited company on 10.11.2010. Subsequently, on 15.02.2011, its

ordinary shares were admitted to trading on the Budapest Stock Exchange and on 08.04.2011,

they were admitted to trading on the Böerse Stuttgart as well.

The objectives of the long-term strategy of the Parent Company, i.e. acquisitions and real

investments took place mostly in the first half of the year.

The Governing Board meeting held within the competence of the Extraordinary General

Meeting on 1 February 2021, introduced an agenda item on its proposal related to the share

capital increase, which was approved by the Governing Board by its Resolution no. 5/2021 (of

1 February), under which the Parent Company may increase the share capital up to the

amount corresponding to maximum ten times the share capital recorded in the company

The acquisition made by the Parent Company, initiated already in the second semester of

2020, i.e. the purchase of the 100% business shares of NEO Property Services Zrt. and Elitur

Invest Zrt. was concluded on 26 February 2021.

In addition, the 100% business shares in Aquaphor Zrt. were profitably sold, in consideration

for which it became the owner of AKKO Invest. Plc. ordinary shares.

The subsidiaries of the Parent Company on 31 December 2021 are summarised in the following table:

Name of the Company

Equity stake

VÁR-Logisztika

Zrt.

(registered office: 1124 Budapest, Lejtő út 17/A.; company

100 %

registration number: 01-10-046822)

MOON

Facility

Zrt.

(registered office: 1124 Budapest, Lejtő út 17/A.; company

registration number: 01-10-049534)

100 %

ALQ SAS

(registered office: France, Antibes 06600, 18 Avenue Louis

Gallet; registration number: 841 053 077 R.C.S. Antibes, tax

number: FR93841053077)

4 Stripe Zrt.

100%

(registered office: 1124 Budapest, Lejtő út 17/A.; company

registration number: 01-10-049777)

A PLUS Invest Zrt. (registered office: 1124 Budapest, Lejtő út

17/A.; company registration number: 01-10-049740)

100%

Elitur Invest Zrt. (registered office: 1124 Budapest, Lejtő út 17/A.;

company registration number: 01-10-049966)

NEO Property Services Zrt. (registered office: 1095 Budapest,

Máriássy utca 7; company registration number: 01-10-045154)

The Parent Company prepared both its separate and consolidated IFRS Statements in which it

included the following companies as subsidiaries in 2021:

VÁR-Logisztika Zrt.

MOON Facility Zrt.

ALQ SAS

4 Stripe Zrt.

A PLUS Invest Zrt.

Aquaphor Zrt. (sold on 19 May 2021)

Elitur Invest Zrt.

NEO Property Sercives Zrt.

The consolidated IFRS statement may also be consulted on the website of the Budapest Stock

Exchange (www.bet.hu), via the disclosure system operated by the National Bank of Hungary

(www.kozzetetelek.mnb.hu) and also on the website of AKKO Invest Plc.

(www.akkoinvest.hu).

Size and composition of the share capital

Composition of the share capital of the Parent Company on 31 December 2021:

Share series

Par value

Issued pieces

Total nominal value

(HUF/piece)

Ordinary shares

Share capital size

33 355 200

833 880 000

The ordinary shares of the Parent Company constitute voting rights the extent of which

depends on the par value of the shares. Accordingly, each ordinary share with a par value of

HUF 25 gives an entitlement to 1 vote.

The share capital of the AKKO Invest Plc. did not change during the year.

The Company possesses 936,988 treasury shares.

Share capital increase, decrease

The decision on increasing the share capital is made by the General Meeting based on the

proposal of the Governing Board. The decision of the General Meeting is not necessary when

the increasing of the share capital takes place within the competence of the Governing Board

based on the authorisation of the General Meeting laid down in its decision.

Pursuant to Resolution no. 5/2021. (of 1 February) taken by the Governing Board held within

the competence of the Extraordinary General Meeting convened on 1 February 2021, the

Governing Board received mandate for the share capital increase. The highest amount to

which the Governing Board may increase the share capital of the AKKO Invest Plc.: the amount

corresponding to maximum ten times the share capital (HUF 833,880,000) recorded in the

company register on the day of the Extraordinary General Meeting of the AKKO Invest Plc.,

held on 1 February 2021.

Period during which the share capital can be increased: 2 (two) years from the date on which

the decision on share capital increase was taken.

Changes in the structure of the Group

AKKO Invest Plc. During first half of 2021 it acquired equity interest in the following

subsidiaries:

Name of the Company

Elitur Invest Zrt.

NEO Property Services Zrt.

Date of purchase

26 February 2021

Equity stake (%) purchased

100%

On 7 September 2020, it provided information on its ongoing acquisition, i.e. the purchase of

the business shares of NEO Property Services Zrt. and of its parent company, Elitur Invest Zrt.,

which was implemented and financed with bank loans on 26 February 2021.

On 19 May 2021, the Parent Company announced the profitable sale of the 100% business

shares of Aquaphor Zrt., which was settled with AKKO Invest. Plc. ordinary shares.

Income realised in the period of the annual financial statements

4.1. Consolidated comprehensive income statement

01.01.2021 –

31.12.2021

01.01.2020 –

31.12.2020

COMPREHENSIVE INCOME STATEMENT

Comments

Revenue

(1)

(2)

22 137 928

(20 066 173)

2 071 755

(768 610)

(172 158)

(253 274)

7 161

182 940

(191 186)

(8 246)

(62 037)

(16 930)

80 433

Direct expenditures

Gross profit or loss

Administrative and sales expenditures

Other expenditure, net

Financial expenditures, net

Income from the sale of subsidiaries

Profit or loss before tax

Income tax expenditure

(3)

(4)

(5)

(6)

59 972

884 874

53 192

(7)

(299 611)

585 263

(3 915)

49 277

Net profit and loss

Share attributable to the owners of the parent

company

585 263

50 888

(1 612)

(6 447)

Share attributable to non-controlling interest

Exchange difference

(1 127)

Other comprehensive income (after income

tax)

(1 127)

(6 447)

42 829

Total

comprehensive

income

from

continuing operations

Share attributable to the owners of the parent

company

(A)

(B)

584 136

(569)

44 441

(1 612)

3 045

Share attributable to non-controlling interest

Profit or loss from discontinued operations

Share attributable to the owners of the parent

company from discontinued operations

Share attributable to non-controlling interests

from discontinued operations

(569)

2 253

792

17,90

1,53

Earnings per share (HUF)

Earnings per share from discontinued

operations in HUF

(31)

(0,02)

17,90

(0,02)

0,09

1,53

0,09

Diluted earnings per share (HUF)

Earnings per share from discontinued

operations in HUF

EBITDA

1 852 916

237 515

4.2. Consolidated Balance Sheet

ASSETS

Comments

31.12.2021

31.12.2020

Non-current assets

22 709 733

12 303 271

5 645 354

431 975

29 488

4 803 393

Value of customer relations

Goodwill

(8)

(9)

265 735

Right-of-use assets

(10)

(11)

(12)

(13)

(14)

Other intangible assets

Investment properties

4 203 456

30 840

4 537 260

Properties

Plant, fixtures and equipment

Current assets

65 349

398

10 265 233

7 610 503

1 793 098

6 660

1 664 108

51 072

71 258

6 596 491

Trade accounts receivable

Receivables from other companies

Other receivables and prepayments and accrued income

Cash and cash equivalents

Total assets

(15)

(16)

(17)

(18)

1 330 403

1 324 326

32 974 966

EQUITY AND LIABILITIES

Comments

2021.12.31

5 910 168

2020.12.31

5 599 773

Equity

Subscribed capital (the nominal value of the shares is

HUF 25/piece)

(19)

(20)

833 880

5 479 954

190 923

833 880

5 479 954

(396 725)

(70 300)

Share premium

Retained earnings

Treasury shares

(21)

(22)

(23)

(380 300)

(206 640)

(7 649)

Proprietary transactions

(240 514)

(6 522)

Accumulated exchange difference

Equity attributable to owners of the parent company

5 910 168

5 599 773

Long-term liabilities

18 501 548

11 300 953

272 207

911 291

Long term bank loans

(24)

(25)

(26)

(14)

(27)

462 246

Received long-term loans

Provisions

291 273

449 045

Deferred tax liabilities

1 578 587

228 528

Long-term lease liabilities

Deferred purchase price of the acquisition

Short-term liabilities

4 830 000

8 563 249

746 035

85 427

54 311

2 403

Short term loans and borrowings

Trade accounts payable

(24)

(28)

3 474 740

Other short-term liabilities and accruals

Income tax liabilities

(29)

(30)

(14)

4 073 839

53 906

25 748

2 965

Short-term lease liabilities

Equity and liabilities

214 730

32 974 966

6 596 491

Accounting policy and its changes

From 2020 onwards, the Company has applied the optional asset concentration rule

laid down in IFRS 3.B7A-C in case it is not evident whether an acquisition is considered

as a business combination or an asset deal. The Company addressed the changed

approach in a retrospective manner. The change in the approach impacted only one

acquisition, namely the acquisition of 4 Stripe Zrt.

Having regard to the fact that the Company Group possessed investment properties at

consolidated level already in the first semester of 2019, the following was decided:

After the initial recognition, the Company Group applies the cost model for the valuation

of investment properties typically purchased for the purpose of realising profit on the

rental or increase in value of the property, without utilising it or bearing the business

risk of it.

In case of opting for the cost model, assets must be valued on the basis of the historical

cost model in accordance with IAS 16.

These properties (typically office buildings, warehouses and factory buildings) are not

used for own purposes in the longer run. Some of these properties have been used by

way of rental or will be used/sold after the completion of ongoing investments, which

will provide sufficient yield for the shareholders.

Performance figures of the previous year

In its report, AKKO Invest Plc. presents its processes that took place in 2021. The Group has

prepared its consolidated financial statement for 2021 in accordance with the International

Financial Reporting Standards (IFRS).

The most relevant figures for the Company Group include the evolution of equity and profit

before tax, which are the most reliable performance measurement indicators. They were as

follows:

The content of direct expenditures is as follows:

Designation

Financial year 2021

Financial year 2020

Material costs

(136 737)

(7 583 976)

(93 848)

(1 148 416)

(172 413)

(36 506)

(3 092 460)

(2 123 156)

(1 272 105)

(1 789 463)

(12 253)

(37 995)

(139 592)

(87 779)

(8 752)

(4 370)

Business costs

Fuels

Electricity, water, waste water charges

Heating and air conditioning equipment

Waste disposal

(6 557)

(1 151)

Personnel costs

Maintenance fees

(1 264)

Operation costs

(18 315)

Cleaning services

Removal services

Building services engineering

Transport

Rental fees

Parking

Asset management

(2 173)

(10 097)

(3 475)

Healthcare services

Official fees

Fire protection, occupational health and safety

(113 772)

(6 279)

Travel and accommodation services

IT services

(40 765)

(1 322 264)

(355)

Property protection

Advertising costs

(1 057)

Miscellaneous expenses

Other services

(3 795)

(200 676)

(627 070)

Depreciation

(96 956)

(61 516)

(191 186)

Carrying value of property sold

(20 066 173)

Total

The vast majority of the reporting year’s costs were incurred in connection with operation of

the properties.

Administrative fees:

Financial year

2021

Financial year

2020

Designation

Rental fees

(24 644)

(29 679)

(7 706)

(912)

Insurance fees

Sales expenditures include the expenditures directly related to sales.

The increase in the charges paid by the Group to the Budapest Stock Exchange is also indicative

of the increase in the sales of the shares of the Company in 2021:

Business environment and results of the year

The Company closed 2021 in accordance with the expectations. AKKO Invest Plc. further

increased its equity stake in the first semester of 2021. On 7 September 2020, the Group

announced that it intended to purchase the 100% business shares held by NEO Property

Services Zrt., which it carried out by using its own contribution, on the one hand, and through

bank debt financing, with a loan of HUF 12 billion contracted from OTP Bank Nyrt. within the

Growth Loan Program’s (NHP) “Go!” scheme, on the other hand.

The 100% business shares in Aquaphor Zrt. were profitably sold, the corresponding purchase

price was settled with AKKO Invest. Plc. ordinary shares.

Having regard to the extraordinary measures taken in response to the coronavirus (Covid-19)

pandemic, in particular the provisions of Section 4 of Government Decree 46/2020 (of 16

March), the Parent Company adopted its separate and consolidated IFRS statements for 2020

via decisions and resolutions taken within the powers of the Governing Board.

Because of the established pandemic situation, with regard to two subsidiaries (VÁR-Logisztika

Zrt., 4 Stripe Zrt.) it had a loan repayment moratorium which was an option provided by the

extraordinary measures of the Government of Hungary until 30 November 2021 for companies

contracting loans.

Derivatives, securities:

In 2021, the Group did not enter into securities transactions and it is not planning to carry out

such transactions in the future, either.

Longer term capital market investments:

The Group does not have such investments.

Real economy:

The main strand and strategy for the Group concern the realisation of investments in the real

economy.

In the second semester of 2020, the Group announced the purchase of the business shares of

NEO Property Services Zrt. and the conditionalities necessary for its completion (contracting

bank loans). The Parent Company started to comply with the conditions necessary for the

acquisition and the bank loan contracting, as well as to prepare the documents necessary for

its conclusion, i.e. the drawback of bank loans and other documentation and to submit them

to the bank. The acquisition was concluded in February 2021.

Disclosures made by AKKO Invest Plc. In 2021

Announcement by owners

January

11 Invitation to the General Meeting - 01.02.2021

21 Proposals submitted to the General Meeting

29 Voting rights and share capital size

Governing Board Resolutions taken within the competence of the General

Meeting, Press release

February

10 Invitation to the General Meeting - 03.03.2021

10 Extraordinary information

18 Extraordinary information

19 Extraordinary information on equity stake changes

22 Articles of Association

22 Proposals submitted to the General Meeting

26 Voting rights and share capital size

26 Extraordinary information

Governing Board Resolutions taken within the competence of the General

Meeting

18 Articles of Association

March

April

25 Amended Corporate Event Calendar 2021

31 Voting rights and share capital size

Invitation to the General Meeting - 23.04.2021

15 Proposals submitted to the General Meeting - Press release

15 Statement on remunerations

19 Extraordinary information

Governing Board Resolutions taken within the competence of the General

Meeting

23 Annual Report

23 Corporate Governance Report

30 Voting rights and share capital size

14 Articles of Association

May

Extraordinary information on the sale of business shares and on changes in the

holding of treasury shares

26 Extraordinary information - announcement by owners

31 Voting rights and share capital size

Other information provision - Analysis provided by DR. KALLIWODA

RESEARCH GmbH on AKKO Invest Plc.

June

Extraordinary information on a transaction conducted by a person discharging

managerial responsibilities

Extraordinary information on a transaction conducted by a person discharging

managerial responsibilities

30 Voting rights and share capital size

31 Voting rights and share capital size

July

August

10 Half-yearly report + Press Release

September

Extraordinary information on a transaction conducted by a person discharging

managerial responsibilities

30 Voting rights and share capital size

29 Voting rights and share capital size

15 Corporate Event Calendar 2022

30 Voting rights and share capital size

31 Voting rights and share capital size

October

November

December

Based on a notification sent to the Parent Company, it informed the Honourable Shareholders

on 8 January 2021 on the fact that the equity stake held by Chantili Invest Zrt. decreased to

11% (it did not exceed any threshold).

On 11 January 2021, the invitation to the Extraordinary General Meeting convened to 1

February 2021 was published.

On 21 January 2021, proposals submitted to the General Meeting were published.

On 1 February 2021, Governing Board Resolutions taken within the competence of the

General Meeting were published.

On 10 February 2021, the Parent Company provided information on the convocation of a

further Extraordinary General Meeting, planned to be held on 3 March 2021. On the same

day, it issued an extraordinary information note on the resignation of Mr. Zoltán József

Kalmár, Governing Board member and Audit Committee member.

On 18 February 2021, the AKKO Invest Plc. announced in an extraordinary information note

that the Governing Board adopted the binding loan offer of OTP Bank Nyrt. for the purchase

of the 100% business shares held by NEO Property Services Zrt., based on Governing Board

Resolution no. 1/2021 (of 18 February).

On 19 February 2021, the Parent Company, based on information that it had received,

informed the investors of the fact that DAYTON-Invest Kft. had sold AKKO shares in an OTC

transaction, whereby the threshold changed, therefore its equity stake and the percentage of

voting shares passed below the 20% threshold.

On 22 February 2021, the Articles of Association were published, Having regard to the fact

that the Company Court registered the sections of Governing Board Resolutions taken within

the competence of the Extraordinary General Meeting of 1 February 2021, pertaining to the

Articles of Association.

On 22 February 2021, the Parent Company announced the proposals submitted to the

Extraordinary General Meeting convened to 3 March 2021.

On 26 February 2021, the Parent Company notified the shareholders in an extraordinary

information note of the fact that it had concluded the purchase of the 100% business shares

of NEO Property Services Zrt. by the drawback of the bank loan and the payment of the own

contribution. AKKO Invest Plc. became the 100% owner of NEO Property Services Zrt.

On 3 March 2021, the Parent Company published the Governing Board Resolutions taken

within the competence of the General Meeting held on the same day.

On 18 March 2021, the updated Articles of Association were published, based on the

registration of changes by the Company Court.

On 25 March 2021, the AKKO Invest Plc. published its updated event calendar for 2021 in

compliance with the extraordinary legal order and the Government Decrees.

On 1 April 2021, the Parent Company published its invitation of the Annual General Meeting.

On 15 April 2021, the AKKO Invest Plc. published the proposals submitted to the General

Meeting and the corresponding Press Release.

On 15 April 2021, the Report on Remunerations was published, including the salaries paid to

the executive officers.

On 19 April 2021, by way of an extraordinary information note, the Parent Company notified

its Honourable Shareholders of the main decisions of the General Meeting of NEO Property

Services Zrt. (regarding the main figures of the statements, the election of a new auditor and

the extent of the dividends to be paid to the owners) held on 16 April 2021. The related Press

Release was also published on that date.

The decisions taken by the Governing Board, the Annual Separate and Consolidated IFRS

Statement for 2020 of the Parent Company, as well as the related documents (Corporate

Governance Report, Report from the Governing Board, Report from the Audit Committee,

Business and Management Reports) were published on 23 April 2021.

After the registration at the Company Court, the Statute of the AKKO Invest Plc., valid from 23

April 2021, was published on 14 May 2021.

On 19 May 2021, the Parent Company notified its Honourable Investors in an extraordinary

information note of the fact that the Governing Board of the Company had decided to

profitably sell the 100% business shares of Aquaphor Zrt., the purchase price of which was

settled by the transfer of ordinary shares held by AKKO Invest Plc.

On 26 May 2021, the AKKO Invest Plc. announced in an extraordinary information note that

DAYTON-Invest Kft. would sell its AKKO Invest ordinary shares in an OTC transaction, thereby

the number of units changed to 0, its equity stake passed below the 15%, 10% and 5%

thresholds.

Also on 26 May 2021, the Parent Company announced the concluded sale of AKKO Invest

ordinary shares by MEVINVEST Vagyonkezelő Kft. in an OTC transaction, on the basis of which

its equity stake exceeded the 5%, 10%, 15%, 20%, 25% and 30% thresholds. The issued capital

stock passed to 30,10%, whereas the amount of voting shares passed to 30,97%.

On 3 June 2021, an analysis made by Dr. KALLIWODA Research GmbH was published. The

Parent Company announced on the same day, that Gábor Varga, a member of the Governing

Board, purchased AKKO Invest ordinary shares in an OTC transaction.

On 4 June 2021, the publication of a transaction conducted by a person discharging

managerial responsibilities took place, announcing that Péter Márk Bosánszky, a member of

the Governing Board, purchased AKKO Invest ordinary shares in an OTC transaction.

On 10 September 2021, the statement of the Parent Company for the first semester of 2021

and the corresponding Press Release were published.

On 13 September 2021, the Company provided information on a transaction conducted by a

person discharging managerial responsibilities, i.e. that Gábor Varga, a member of the

Governing Board, purchased AKKO Invest ordinary shares in an OTC transaction.

On 15 November 2021, the Parent Company announced its Corporate Event Calendar for

2022.

Expectations:

In 2022, the Company Group intends to extend its asset management activity by carrying out

further acquisitions.

Loans

The Group has the following liabilities from loans:

Due

within 5

year

Expiry

date

Interest

rate

Due within

1 year

Due over

5 years

Debtor

31.12.2021

AKKO Invest Plc.

31.03.2036

2,5%

11 528 970

56 159

681 527 2 900 387 7 947 056

VÁR-Logisztika Zrt. 16.12.2024

2,5%

1,9%

20 283

44 225

35 876

4 Stripe Zrt.

Total

29.02.2032

461 859

170 591

247 043

12 046 988

746 035 3 106 854 8 194 099

The Parent Company ensures continuous liquidity to its subsidiaries by providing member's

loans.

Under the investment loan of HUF 12,000,000,000 contracted from OTP Bank Nyrt. On 26

February 2021 within the Hungarian National Bank’s Growth Loan Program’s (NHP) “Go!”

scheme, its outstanding items amounted to THUF 11,528,970 on 31 December 2021.

VÁR-Logisztika Zrt. concluded an investment loan contract on 3 July 2018 with Orgovány és Vidéke

Takarékszövetekezet “in liq.”. The loan agreement was taken over by Takarékbank Zrt., under

which the redemption also takes place by executing payments to the successor financial

institution. On 31 December 2021, the outstanding items amounted to THUF 56,159.

The other subsidiary of AKKO Invest Plc., 4 Stripe Zrt. concluded a loan agreement of

EUR 1,250,000 with the Hungarian branch of Oberbank AG on 20 February 2020, the loan was

paid on 5 March 2020. As a result of the measures taken in response to the extraordinary

epidemic situation, no loan redemption took place.

In its Decree No. 47/2020 (18.03.2020) on Immediate measures to mitigate the effects of the

coronavirus pandemic on the national economy, the Government of Hungary announced a

moratorium on principal, interest and fee payments arising from credit and loan contracts.

Pursuant to that Decree, the redemption of both loans was suspended until 31 October 2021,

when the payment of instalments and interests had to be resumed pursuant to Government

Decree No. 536/2021 (of 15 September).

The changes in outstanding loans are shown in the table below:

Designation

Long term loans

Short term loans

54 311

Opening balance

462 246

12 000 000

Borrowing during the year

Principal instalment

Interest payment in 2021

Reclassification due to maturity

Amendment of liabilities

Year-end revaluation

Closing

(471 030)

(253 840)

(691 724)

691 724

1 461

11 300 953

746 035

Objectives and strategy

AKKO Invest Plc. is a holding company, i.e. a company with equity stake is several

undertakings, the economic objective of which is to realise long-term increase in value

through efficient cooperation between the holding and the subsidiaries. Akko Invest Plc.

invests its own assets, without performing external asset management. Its fundamental

objective is not necessarily the sale of the subsidiaries owned by it, but to achieve asset

accumulation and increase in value in the subsidiaries (and obviously in the parent

company), and through that in the parent company.

Therefore the Group’s purpose is to establish a successful holding. Its most important

objective is to increase the value of the Parent Company and in parallel, to generate value for

the shareholders.

As the Parent Company intends to carry out investments in the real economy with a high yield-

generating capability, it intends to carry out further acquisitions in the future.

Resources and risks

Financial and economic risk factors:

The Parent Company generated profit (revenue) through its subsidiaries, which

provide an appropriate source of income for itself under lease agreements.

Scale of the expenditure:

The expenditures made in 2021 reveal that the newly included NEO Property Services

Zrt. contributed to an approximately ten-fold cost increase compared to 2020.

The AKKO Invest Plc. is highly human resource-oriented, its success depends on the right

decisions of the Governing Board. Risks are due to the same fact. In the course of its

investments in 2021, it relied on significant external resources due to the loan contracted from

OTP Bank Nyrt. within the Growth Loan Program’s (NHP) “Go!” scheme, necessary for the

acquisitions. The evolution of the assets of the Parent Company (and consequently the price

of the shares) may show quite significant variations and there is a chance for capital loss at

any time.

AKKO Invest shares owned by executive officers

On 31 December 2021, the following executive officers owned AKKO Invest Plc. shares.

Name

Function

Ordinary shares, “C” series

Zoltán Prutkay

chairman of the Governing Board

vice-chairman of the Governing Board

member of the Governing Board

9 000 pieces

43 000 pieces

Imre Attila Horváth

Gábor Varga

Gábor Székely*

76 384 pieces

1 000 pieces

0 pieces

member of the Governing Board,

chairman of the Audit Committee

member of the Governing Board,

member of the Audit Committee

István Matskási

member of the Governing Board,

member of the Audit Committee

Péter Márk Bosánszky

162 650 pieces

*Mr. Gábor Székely owns additionally 14,500 AKKO Invest. Plc. shares through G&T Vagyonkezelő Zrt.

Material events after the Reporting Period

The Company Group did not identify any event after the record date of the main interim

financial statements, which do not have any impact on the numerical aspects of the

statements (since they are not amending events).

Executive officers

Pursuant to the Company's Articles of Association in force, single governance is ensured by

the Governing Board.

The General Meeting is entitled to elect the members of the Governing Board. Members of

the Governing Board may be re-elected.

Governing Board membership ceases to exist:

(a) upon the expiry of the duration of the mandate,

(b) upon recall,

(d) upon resignation,

(e) upon death.

Members of the Governing Board:

- Zoltán Prutkay – chairman of the Governing Board

- Imre Attila Horváth (vice-chairman of the Governing Board)

- Gábor Varga – member of the Governing Board

- Gábor Székely – member of the Governing Board

New Governing Board members elected on 1 February 2021:

- István Matskási – member of the Governing Board

New Governing Board member elected on 3 March 2021:

- Péter Márk Bosánszky – member of the Governing Board

On 3 March 2021, a new vice-chairman / deputy chairman of the Governing Board was

elected: Mr. Imre Attila Horváth who had already been a Governing Board member.

The Governing Board elects its chairman from among its own members.

Having regard to the fact that the investment activity of the Group frequently requires very

rapid decision-making, taking investment decisions and other decisions regarding the Group

between the Governing Board meetings is the responsibility of the chairman and of the deputy

chairman / vice-chairman of the Governing Board, which may be exercised independently.

This applies in particular to the group's capital and financial market transactions and to the

operational tasks. In these respects, the chairman and the deputy chairman / vice-chairman

are entitled and obliged to represent the Parent Company and to take decisions between the

Governing Board meetings

The Audit Committee is in place primarily to facilitate that (1) the Parent Company complies

with the accounting standards set out in the legislation and in the Group's internal regulations,

(2) the Parent Company's auditor complies with the professional expectations necessary for

exercising its mandate, and (3) supervise the performance of the Group's internal control

system.

Governing Board members receive an annual remuneration for their work. The chairman of

the Governing Board receives a remuneration of HUF 550,000, whereas the other members

of the Governing Board receive a remuneration of HUF 500,000 per year. The Company covers

this issue in a separate Remuneration Report.

Members of Audit Committee:

On 26 November 2020, Mr. Dr. László Csizma resigned from his executive functions,

therefore at the Governing Board meeting held on 1 February 2021 within the

competence of the General Meeting, Mr. István Matskási was elected as a new

Governing Board member and Audit Committee member.

Members of the Audit Committee in place on 1 February 2021:

- Gábor Székely – chairman of the Audit Committee

- Zoltán József Kalmár – member of the Audit Committee

- István Matskási – member of the Audit Committee

On 10 February 2021, Mr. Zoltán József Kalmár resigned from his executive functions,

therefore at the Governing Board meeting held on 3 March 2021 within the competence

of the General Meeting, Mr. Péter Márk Bosánszky was elected as a new Governing

Board member and Audit Committee member.

Members of the Audit Committee in place on 3 March 2021:

- Gábor Székely – chairman of the Audit Committee

- István Matskási – member of the Audit Committee

- Péter Márk Bosánszky – member of the Audit Committee

Members of the Audit Committee do not receive any specific financial compensation for their

work.

Event after the balance sheet day

Disclosures made by AKKO Invest Plc. in the

period following the balance sheet date

2022

Voting rights and share capital size

January

Voting rights and share capital size

February

10. Employment policy

Since 11 February 2019, the Parent Company has been employing an investment contact

person and since 13 March 2019 it has been employing a Chief Executive Officer, and on 1

March 2020, the number of employees increased by 1 contact person responsible for tenants,

therefore their number increased to three. Day-to-day financial and administrative tasks are

performed by the current three employees.

In its capacity as an Issuer, the Parent Company has not issued shares to employees, it has no

employee share-ownership scheme in place and it has not concluded any agreement by which

employees could acquire ownership over the capital of the Issuer.

The Parent Company presents the compensation and remuneration to be paid to its

nominated postholders in the form of a Remuneration Report to the General Meeting.

The Parent Company does not have employees in its subsidiaries, with the exception of NEO

Property Services Zrt., and the executive officers do not receive any financial or in-kind benefit,

either.

The staff number of NEO Property Services Zrt. exceeds 490.

11. Research and experimental development

In the current period, research and experimental development costs were not recognised in

the financial statements.

12. Environmental protection

The environmental responsibility incumbent on AKKO Invest Plc. is not significant, there is no

likelihood of environmental degradation.

NEO Property Services Zrt. assumes its environmental liability in the following fields.

It has become involved in the “Green Office” movement, under which it has prepared an eco-

map of its Headquarters, thereby it has reduced its water consumption and waste water

emissions, as well as the paper use of the offices.

Among property operating companies, it is the first company in Hungary that has obtained the

BREEAM IN USE “very good” certification for the operation of an office building.

Environmental impacts related to the activity of the company have been identified within the

framework of ISO 14001 EMS, and it has been seeking to continuously improve the

environmental performance of the operated establishments, as follows:

Air protection:

Maintenance is regularly carried out on air pollution point sources (boilers, emergency

electricity generators) operated by NEO Property Services Zrt., thereby optimising fuel use and

waste gas emissions.

Air conditioning and cooling systems containing ozone-depleting substances undergo

systematic leakage tests, maintenance and the necessary repair works. The necessary refillings

are carried out with maximum attention and in compliance with the relevant requirements,

the separated substances are transferred only to the contractor that has an appropriate

authorisation for treatment and disposal.

Development plans are drawn up annually for the clients of the company; those plans aim at

operational safety, as well as at reaching a more economical energy use and a lower level of

emissions.

Soil protection, protection of surface waters and ground waters, water savings:

Ground recessed oil tanks are equipped with double walls and leakage sensors.

Any accidental pollution is reported to the competent environmental inspectorate without

delay, and during its termination and monitoring, full cooperation is ensured with the

representatives of the authorities, the client and the civil population.

Grease traps, oil traps and other obligated equipment operated in the establishments of the

company are subject to authorisation, their functioning is controlled, logged, their emissions

are continuously maintained under the authorised level.

In order to protect water bases, the users of the buildings are made aware of the dangers of

pouring edible oil or cooking oil into the sink or the toilet, delivery to collecting organisations

is promoted. Grease emitted to the sewerage system not only greases the sewerage network

of the buildings and of the municipalities, but also encumbers the waste water treatment

plants and hampers the disposal of waste water.

In community spaces, water saving taps, rinsing valves are installed in order to reduce water

use.

Electricity savings:

The development plans propose to the clients to install motion sensing switches in community

spaces and in certain hallway sections, and, where this is not reasonable, to put stickers

warning to switch off the lights.

In the buildings of the company, efforts are made to synchronise the operation of air

conditioning equipment with opening the windows, installing shading devices in order to

increase the efficiency of heating and cooling systems.

Proposals supported by profitability calculations are prepared to their clients in relation to the

configuration of local lighting and the procurement of energy saving equipment (lighting, hand

driers, kitchen utensils, etc.).

The avoidance of any unnecessary energy use or the reduction of energy use is also promoted

by awareness-raising among their colleagues. Attention is drawn to avoid the “stand by” mode

of the devices, to switch off any unused mobile phone chargers, to switch off the computers

after the work is completed, to switch off any unnecessary lights, etc.

Savings in transport:

Vehicles used by the company undergo regular servicing, their maintenance is ensured for the

sake of their appropriate technical state, operational safety and lower level of fuel

consumption.

The use of kilometres is optimised by work organisation, and where it is feasible, car sharing

is used by travelling in the same vehicles with their partners, priority is given to telephone and

video-conferences, as well as to communication opportunities provided by the Cloud

environment.

At larger premises, bicycles are provided to the colleagues and commuting to work by bicycle

is also supported.

Savings in paper use:

At larger premises, centralised, controlled printing and double-sided printing have been

introduced. Printing and photocopying by the organisational units is subject to regular

reporting.

Efforts are made to use recycled paper and paper with FSC (Forest Stewardship Council) mark,

originating from responsible forest management.

In order to ensure operation with reduced paper use, priority is given to e-mailing, electronic

file registration, invoice processing and event management software have been introduced.

In the toilets and in the kitchens, awareness-raising stickers have been placed in order to

reduce the use of paper towels. Attention is paid to the economical dosing of paper towels.

Greening with green elements:

The air in the office spaces is positively impacted by plants, and due to this, any “green wall”

or plant island installed into the office spaces or to the resting areas improves well-being,

comfort and air quality without any continuous energy investment. This is the reason why the

planting of green plants is promoted in the office spaces.

Reduction of the amount of disposed waste:

It is considered that the most efficient waste reduction method is the prevention of waste

generation, therefore efforts are made to repair or reuse the devices that can still be used,

instead of scrapping or discarding them.

At the workplaces, recyclable waste types are collected selectively. In their office spaces,

selective collection of unnecessary paper has a decade-old tradition; furthermore, the

selective collection of PET bottles and plastic packaging waste are also ensured in the

kitchenettes.

In the buildings managed by the company, the introduction or the promotion of selective

waste collection is also encouraged in cooperation with the company’s clients.

The company makes proposals to its customers for rationalising energy use and other

proposals meant to improve their environmental performance, by making a risk report for

identifying environmental risks, thereby also supporting the safer and “greener” operation of

their clients.

A pocketbook entitled “Green advice” has been prepared, which is decorated by the drawings

of the children of the colleagues, and contains ideas and tips for a more eco-friendly operation

of the users of the buildings of the company.

Cleaning, de-icing, insect and rodent extermination are carried out with modern, eco-friendly

substances and methods in the establishments. This reduces their own ecological footprint

and that of their clients.

13.

Presentation of the premises

At the date of the drafting of this report, Parent Company does not have any premises.

NEO Property Services Zrt. as a subsidiary has the following premises:

- HU 4026 Debrecen, Bethlen utca 1.

- HU 6724 Szeged, Rókusi krt. 2-10.

- HU 6750 Algyő, Technológiai Ipartelep

- HU 5000 Szolnok, Ady Endre út 26.

- HU 8000 Székesfehérvár, Kaposi út 9.

- HU 2443 Százhalombatta, Olajmunkás utca 2.

- HU 9700 Szombathely, Hefele Menyhért utca 2.

- HU 7624 Pécs, Mátyás király utca 23.

- HU 3525 Miskolc, Régiposta utca 9.

- HU 3580 Tiszaújváros, TVK Ipartelep, "Régi Számítóközpont"

- HU 9023 Győr, Verseny utca 11.

- HU 8900 Zalaegerszeg, Zrínyi utca 6.

The other subsidiaries do not have any premises.

Disclaimer

To the consolidated annual IFRS statement of AKKO Invest Plc. for 2021

I, the undersigned, as a person authorised to sign for the Company, in my capacity as

the chairman of the Governing Board of AKKO Invest Plc., hereby declare that:

the consolidated financial statements were made in conformity with the International

Financial Reporting Standards that were adopted by the European Union.

The consolidated financial statements of 2021 were prepared in accordance with the

accounting standards, to the best of our knowledge, presenting a true and fair view of

the assets, liabilities, financial situation, profit and loss of the AKKO Invest Plc. and of

the enterprises involved in the consolidation, and the Management Report presents a

fair view of the situation, development and performance of the AKKO Invest Plc., setting

out the main uncertainty factors and risks.

The Report does not conceal any fact, which is significant in terms of the perception of

the situation of the AKKO Invest Plc.

The AKKO Invest Plc. is aware of the fact that it is liable to reimburse any damage

caused by failing to provide regular and extraordinary information or by providing

misleading information (disclosure of regulated information) in accordance with Section

57(1) of the Capital Market Act.

The report of AKKO Invest Plc. has not been audited by an independent auditor who

has formulated an independent opinion, the consolidated financial statement attached

to the report was drawn up in accordance with the International Financial Reporting

Standards (IFRS).

From 31 March 2022, the 2021 annual IFRS report of AKKO Invest Plc. can be

consulted in its entirety at the registered office of the Company (1118 - Budapest, Dayka

Gábor utca 5.) and on its website (www.akkoinvest.hu), on the website of the Budapest

Stock Exchange (www.bet.hu) and on the mandatory disclosure portal of the National

Bank of Hungary (www.kozzetetelek.hu).

Budapest, 22 March 2022

__________________________________

Zoltán Prutkay

chairman of the Governing Board

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