Budapesti Ingatlan Hasznositasi Es Fejlesztesi NyrtBET: BIF

BIF 2024 Half-Year Report

Aug 30, 2024 at 11:05 AM UTC · Issued by Budapesti Ingatlan Hasznositasi Es Fejlesztesi Nyrt

2024 Half-Year Report

Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt.

2024 Half-Year Report

Contents

Consolidated, non-audited Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. prepared in accordance with the International Financial Reporting
Standards for the period ending on June 30, 2024 - Interim Consolidated Financial Statements for the first half of 2024
Consolidated Business (management) Report to the Consolidated, non-audited
Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. prepared in accordance with the International Financial Reporting Standards for the period ending on June 30, 2024
Declaration of liability

Consolidated, non-audited Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. prepared in accordance with International Financial Reporting Standards (IFRS) for the period ending on 30 June, 2024 - Interim Consolidated Financial Statements for the first half of 2024

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Table of Contents
Consolidated Interim Financial Statements	3
Consolidated Interim Statement of Comprehensive Income	4
Consolidated Statement of Interim Changes in Equity	5
Consolidated Interim Cash-Flow Statement	6
Notes to the statements - general company information, key elements of the accounting policy,
additional explanations and other additional information	7
I.	General company information	7
1.	Company profile	7
2. Officers and controlled companies	7
2.1.	Officers in H1 2024	7
2.2.	Change in senior executives, employees in strategic positions in H1 2024	8
2.3.	Remuneration of senior executives in H1 2024	8
2.4.	Persons authorized to sign the Interim Consolidated Financial Statements	8
2.5.	Ownership structure	9
2.6.	Information on the consolidated companies	9
II.	Key elements of the accounting policy	10

1. Approval and statement on compliance with the International Financial Reporting Standards 10

2.	Basis of preparing the report	10
3.	Valuation basis	10
4.	Details of the business combination and the consolidated companies	10
III.	Additional explanation	11
1.	Investment property	11
2.	Intangible and tangible assets	12
3.	Investments in related companies	13
4.	Deferred tax assets	13
5.	Inventories	13
6.	Trade receivables	13
7.	Other short-term receivables and prepaid expenses and accrued income	14
8.	Cash and cash equivalents	14
9.	Subscribed capital and capital reserve	14
10.	Revaluation reserve	15
11.	Repurchased treasury shares	15
12.	Profit reserve and profit for the year	15
13.	Non-current financial liabilities	15
14.	Provisions	16
15.	Deferred tax liabilities	16
16.	Other long-term liabilities	16
17.	Short-term financial liabilities	16
18.	Trade payables	16
19.	Other short-term liabilities, accrued expenses and deferred income	17
20.	Net sales revenue	17
21.	Other operating income	17
22.	Own performance capitalized	18
23.	Raw materials, consumables and other external charges	18
24.	Staff costs	18
25.	Depreciation and impairment	19
26.	Other operating expenditure	19
27.	Income from and expenses of financial operations	19
28.	Actual tax expenditure	20
29.	Deferred tax expense	20
30.	Earnings per share	21
31.	Information on business lines	21
32.	P/L from a fair valuation	22
33.	Financial instruments	22
34.	Remuneration of the Board of Directors and the Supervisory Board	23
IV.	Other additional information	23
		1

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

1.	Off-balance sheet items, litigation and other legal proceedings	23
1.1.	Off-balance sheet items that may affect the Company's future liabilities	23
1.2.	Litigation and other legal proceedings	25
2.	Significant events after the end of the interim period (30 June 2024)	26
3.	Extraordinary and other regulated disclosures in 2024	26
4.	Authorization to publish financial statements	26
Declaration of Liability	26

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Consolidated Interim Financial Statements

HUF '000'	Explanations*	30.06.2024	31.12.2023
ASSETS

Non-current assets
Investment property	1	80,115,940	78,581,204
Intangible assets	2	5,544	3,215
Goodwill	2	0	0
Land, buildings and related rights	2	83,098	84,106
Plant, other equipment and installations	2	138,578	116,368
Construction and reconstruction in progress	2	2,660,657	764,224
Investments in related companies	3	0	0
Deferred tax assets	4	0	0

Non-current assets, total		83,003,817	79,549,117

Current assets

Inventories Trade receivables

Other short-term receivables and prepaid expenses and accrued income

Cash and cash equivalents

Current assets, total

Assets, total

LIABILITIES

Equity

5	73,917	100,600
6	126,916	84,603
7	164,567	369,787
8	5,432,069	6,336,433

	5,797,469	6,891,423

	88,801,286	86,440,540

Subscribed capital	9	2,870,244	2,870,244
Capital reserve	9	6,048,215	6,048,215
Revaluation reserve	10	731,904	731,904
Equity shares repurchased	11	-2,304,224	-2,304,224
Profit reserve	12	54,928,034	44,360,298
P/L for the reporting year	12	3,770,355	10,567,736

Equity allocated to the parent company, total:		66,044,528	62,274,173
Long-term liabilities

Financial liabilities	13	18,257,328	18,886,201
Provisions for expected liabilities	14	28,624	19,760
Deferred tax liabilities	15	0	0
Other long-term liabilities	16	1,532,464	1,376,527

Long-term liabilities, total

Current liabilities

Financial liabilities Trade payables

Other short-term liabilities, accrued expenses and deferred income

Current liabilities, total

Liabilities and equity, total

*No. of additional explanations

	19,818,416	20,282,488

17	1,446,747	1,446,747
18	469,953	313,890
19	1,021,642	2,123,242

	2,938,342	3,883,879

	88,801,286	86,440,540

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Consolidated Interim Statement of Comprehensive Income

HUF '000'	Explanations*	H1 2024		H1 2023

Net sales revenue	20	6,327,412	4,057,953

Other operating income	21	83,427	158,682
Changes in internally generated inventories	22	-15,141	0
Capitalized value of internally generated assets	22	0	0
Raw materials, consumables and other external charges	23	-1,227,480	-988,669
Staff costs	24	-567,055	-389,776
Depreciation and impairment	25	-99,283	-27,963
Other operating expenditure	26	-770,961	-539,410

Operating P/L		3,730,919	2,270,817
Financial income	27	305,423	620,091
Financial expenses	27	-235,772	-253,991
P/L before tax		3,800,570	2,636,917
Actual tax expenditure	28	-30,215	-13,074
Deferred tax	29	0	0

P/L after tax		3,770,355	2,623,843
Of this:

Parent company's share		3,770,355	2,623,843
External owner's share		0	0
Other comprehensive income		0	0
Change in the fair value of other properties less taxes		0	0
Tax effect of changes in the fair value of other properties		0	0

Total comprehensive income		3,770,355	2,623,843
Of this:

Parent company's share		3,770,355	2,623,843
External owner's share
Weighted average ordinary shares		264,510,234	251,684,440
Earnings per share (HUF)
Fund	30	14.25	10.43
Diluted	30	14.25	10.43
*No. of additional explanations

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Consolidated Statement of Interim Changes in Equity

Explanations*	9	11	9	10	12	12
						P/L for the	Equity	Non-
	Subscribed	Equity shares	Capital	Revaluation	Profit	allocated to the
	reporting	controlling	Equity, total
	capital	repurchased	reserve	reserve	reserve	parent
	year	participation
HUF '000'						company, total


31.12.2022	2,870,244	-3,048,120	6,048,215	731,904	38,879,594	10,033,555	55,515,392		55,515,392
Reclassification of P/L from the
				10,033,555	-10,033,555
previous year

Dividend					-8,808,955		-8,808,955		-8,808,955
Total comprehensive income						2,623,843	2,623,843		2,623,843

30.06.2023	2,870,244	-3,048,120	6,048,215	731,904	40,104,194	2,623,843	49,330,280		49,330,280

Sale of equity share		743,896			4,256,104		5,000,000		5,000,000
Total comprehensive income						7,943,893	7,943,893		7,943,893

31.12.2023	2,870,244	-2,304,224	6,048,215	731,904	44,360,298	10,567,736	62,274,173		62,274,173

Reclassification of P/L from the previous year

Dividend

Total comprehensive income

10,567,736 -10,567,736

3,770,355

30.06.2024

2,870,244

-2,304,224

6,048,215

731,904

54,928,034

3,770,355

66,044,528

*No. of additional explanations

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Consolidated Interim Cash-Flow Statement

HUF '000'	Explanations*	H1 2024		H1 2023
P/L before tax		3,800,570	2,636,917
Adjustments of the profit before taxes		-8,255	13,480
Adjusted profit before taxes		3,792,315	2,650,397
Net interest expenses	27	7,002	-369,696
Non-cash flow items
Depreciation	25	31,375	27,963
Impairment (buyer)	25	0	0
Impairment of goodwill	25	67,908	0
Credit loss (buyer)	25	0	0
Unrealized exchange rate difference		0	0
Adjustment due to inventory fair valuation	26	10,893	0
P/L from a fair valuation	21, 26, 32	576,376	421,181
Provisions for liabilities	14	8,864	15,561
Non-operating cash flow P/L items
Revenues from the sale of tangible assets		-732	-886
Assets provided for no consideration, scrapping	26	0	0
Net working capital flow
Change in trade receivables	6, 25	-42,313	99,320
Change in other current assets	5 (7)	221,008	276,894
Change in accounts payable	18	156,063	-494,537
Changes in other short-term liabilities	19	-945,660	-262,261
Change in short-term financial liabilities	17	0	0
Non-refundable subsidy received		0	0
Interest paid	27	-215,089	-216,737
Interest received	27	208,087	586,432
Income tax paid	28	-30,215	-13,074
Damages paid		0		0
Cash-flow from business activity		3,845,882		2,720,557
Purchase of tangible assets	1, 2	-4,130,360	-760,403
Cash proceeds from the sale of property, plant and
equipment		732	886
Funds used for investments		-4,129,628	-759,517
Income from capital issues		0	0
Dividend	12	0	-8,808,955
Equity purchase (-)/sale (+)		0	0
Interest paid		0	0
Loans	13	94,500	0
Loan repayment	13, 17	-723,373		-723,373
Cash flow from financing activity		-628,873		-9,532,328
Change in liquid assets		-912,619	-7,571,288
Revaluation of foreign currency-denominated liquid assets		8,255	-13,480
Balance-sheet change in liquid assets		-904,364	-7,584,768
Cash flow from financing activities	8	-904,364	-7,584,768
Opening cash and cash equivalents	8	6,336,433	8,130,618
Closing cash and cash equivalents	8	5,432,069	545,850
*No. of additional explanations

Interim Consolidated Financial Statements for the first half of 2024 (non-audited)

Notes to the statements - general company information, key elements of the accounting policy, additional explanations and other additional information

General company information

1. Company profile

Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. (hereinafter: the "Company" or "BIF") was established on 31 January 1995 by transformation. Its legal predecessor is Budapesti Ingatlanhasznosítási és Fejlesztési Kft., which was founded on 1 January, 1994 by the State Property Agency with a share capital of HUF 1,000,000.

The subscribed capital of the Company is HUF 2,870,244,400, which consists of 287,024,440 ordinary registered shares, each with a nominal value of HUF 10, produced in a dematerialized form.

From 20 October, 2017 the Company was active as a regulated real investment pre-company (hereinafter: "SZIE/Pre-REIT") under Act CII of 2011 on regulated real estate investment companies (hereinafter: "SZIT/REIT Act"), and since 31 December, 2018 it has been active as a regulated real estate investment company (hereinafter: "SZIT/REIT"). The Company is engaged in real estate development and utilization for its own properties (offices and other buildings and parking garages) by leasing out, further development and the sale of construction sites in its ownership, the implementation of real estate developments on them, and the utilization and sale of completed properties.

The operational management of the Company is performed by the Board of Directors.

The Company's shares are traded in the "PREMIUM" category of the Budapest Stock Exchange.

The Company's notices are published on: the BSE (www.bet.hu) website, the MNB website (www.kozzetetelek.mnb.hu) and the Company's own website (www.bif.hu).

The chartered IFRS accountant responsible for the preparation of this IFRS Interim Consolidated Financial Statements for H1 2024 is Dr Katalin Horváth Kalácska (H-1082 Budapest, Hock János u. 4- 6.; chartered accountant registration number: 123362).

The Company's auditor is Quercus Audit Könyvvizsgáló és Gazdasági Tanácsadó Kft. (registered office: H-8200 Veszprém, Radnóti tér 2/C, person responsible for the audit: András Tölgyes).

Officers and controlled companies

Officers in H1 2024

Members of the Company's Board of Directors

Name	Position	Beginning of	End of
assignment	assignment

Dr Anna Ungár	President	30.04.2022	30.04.2027

Kristóf Berecz	Vice-President	30.04.2022	30.04.2027
Dr Frigyes Hárshegyi	member	30.04.2022	30.04.2027

Julian Tzvetkov	member	30.04.2022	30.04.2027

Miklós Vaszily	member	30.04.2022	30.04.2027

Members of the Company's Audit Committee

Name	Position	Beginning of	End of
assignment	assignment

Dr Frigyes Hárshegyi	member	30.04.2022	30.04.2027
Julian Tzvetkov	member	30.04.2022	30.04.2027
Miklós Vaszily	member	30.04.2022	30.04.2027

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