Appeninn Nyrt. has published the proposals and resolutions of its Annual General Meeting and its profit and loss accounts for the last year. The real estate company, listed in the Premium Class of the Budapest Stock Exchange, increased the value of its real estate assets by 25 percent in 2019, representing an increase of around EUR 30 million. The company also continued to implement its growth strategy, achieving an overall result of more than EUR 10 million for the year under review. In 2020, the company intends to continue growing in line with its updated strategy, which was published at the beginning of the year and expanded with new directions.

Good progress in implementing the Growth Strategy

The main consolidated financial results of Appeninn Plc in 2019:

• The value of real estate assets increased by 25 per cent, from EUR 118 million to EUR 148 million (or around HUF 50 billion).
• The company's overall result for 2019 exceeded EUR 10.2 million, which corresponds to more than HUF 3.3 billion.
• The main item in the result is the difference between the direct coverage on real estate, i.e. rental income and maintenance costs, which reached €6.4 million (HUF 2 billion), up €501 thousand from €4.2 million in 2018.
• It should be highlighted that the company achieved this result by spending more than four times as much on conservation and maintenance investments compared to 2018.
• Improved operational efficiency is also shown by the fact that the overall cost/revenue ratio decreased from €251t3k to €141t3k.
• In line with the changing market conditions, the annual revaluation of the company's real estate portfolio resulted in an increase of EUR 7.9 million (HUF 2.5 billion), compared to EUR 16 million in 2018. Therefore, the gross operating profit (EBITDA) calculated according to international accounting rules decreased overall compared to 2018.

Given that the company will continue to focus on dynamic growth in the coming years, in line with the objectives set out in its updated business strategy published earlier this year and its participation in the Growth Bond Programme announced by the MNB, the Board of Directors proposes to the General Meeting that the entire individual profit after tax be transferred to the profit and loss reserve. The Board of Directors' proposal has also been shaped by the exceptional circumstances of the current global pandemic, which also justify the creation of a profit and loss reserve.

The Board of Directors of Appeninn Plc also requests the General Meeting of Shareholders to authorise the company to purchase its own shares, which the company intends to use in the coming period in order to further strengthen investor confidence and increase shareholder value. It is proposed that the Board of Directors would be able to buy treasury shares up to a maximum of €5% of the share capital over a period of 18 months, within a range of +/- €20% of the prevailing market price.

Ádám Détári-Szabó graduated from the Faculty of Law and Political Science of the University of Szeged in 2011 with a degree in International Studies.Since 2012, he has been working in the real estate group of CMS Cameron McKenna LLP, where he has been involved in real estate acquisitions and leasing of commercial, office, warehouse and residential properties. He has been managing the subsidiaries of Appeninn Plc since December 2017, and has also been acting as investor liaison since 1 November 2018, assisting with the provision of a wide range of ongoing information to the company's investors.

Ádám Zágonyi graduated from the Faculty of Business Administration of Corvinus University of Budapest with a Master's degree in Accounting and a Master's degree in Economics.From 2012 he worked at the Financial Infrastructures Directorate of the Magyar Nemzeti Bank, and from 2014 he worked at the Ministry of National Economy, where he was responsible for the banking, mainly regulatory, aspects of the IFRS transition.In 2015 he returned to the MNB, where his main tasks were the estimation of the banking impact of the IFRS transition and the analysis of banking liquidity. In its proposals, the Board also proposes the election of new Board members and an Audit Committee member, following the resignation of Dr Nóra Szabó and Mr György Guttmann from the Board due to other commitments. The General Meeting elects Ádám Détári-Szabó, current Investment Relations Officer of Appeninn Nyrt. and Ádám Zágonyi, economist, as new members of the Board of Directors. The Board of Directors also proposes Ádám Zágonyi as a new member of the Audit Committee.

"Last year we laid the foundations for further growth, with an update of our strategy published at the beginning of this year, in 2018. We expect further significant growth in the coming years, with significant support from the HUF 20.1 billion raised under the MNB's Growth Bond Programme. Of course, we are constantly refining our plans in the current extraordinary global environment. I believe that Appeninn Plc will remain on a growth path: our real estate portfolio will expand and our financial results will show significant growth." - assessed Tamás Bernáth, Chairman and CEO of Appeninn Nyrt.