Fotex S E : Unaudited consolidated financial statements as at 30th June, 2023

Fotex Holding S.E.

28, avenue Pasteur L-2310 Luxembourg

R.C.S. Luxembourg B 146.938

Interim condensed consolidated financial statements as at 30 June 2023 Management report as at 30 June 2023

	Table of contents
Management Report	1
Interim Condensed Consolidated Statement of Financial Position	4
Interim Condensed Consolidated Income Statement	5
Interim Condensed Consolidated Statement of Comprehensive Income	6
Interim Condensed Consolidated Statement of Changes in Equity	7
Interim Condensed Consolidated Statement of Cash Flows	9
1.	Basis of presentation	10
2.	Significant accounting policies	10
2.	Significant accounting policies (continued)	11
3.	Significant events and transactions	11
4.	Revenue	12
5.	Seasonal business	12
6.	Taxation	13
7.	Issues, repurchases and repayments of debt and equity securities	13
8.	Fair Value	14
9.	Related Party Transactions	15
10.	Subsequent Events after the End of the Reporting Period	15

Management Report

Review and development of the groups business and financial position

The net turnover for the six months ended June 30, 2023, was EUR 19,935,033 compared with EUR 17,180,247 for the same period in 2022 representing an increase of 16%. The net turnover is mainly composed of income from operating a real estate portfolio in Hungary and the Netherlands. The main reason of the increase in sales is the impact from the acquisition of the Pathé Arena property at the end of December 2022, the improvement of the Hungarian Forint compared to the 2022 comparable period and an overall improvement in business activity in Hungary.

The overall income for the six months amounts to EUR 19,939,428 which is impacted by the net sales and the financial revenue (30 June 2022: EUR 17,190,423).

The net result for the six months is a gain amounting to EUR 4,552,042 (30 June 2022: EUR 3,294,097).

During the period the group acquired 178,841 of its own shares at a cost of Euro 540,237.

The group sold 900,000 dividend preference shares to key members of management at 0.42 Euro per share and paid a dividend of Euro 90,000 which has been included as part of the salary cost of the group.

Principle risks and uncertainties

The Group's business, financial condition or results can be affected by risks and uncertainties. Management has identified the following risks that are relevant for the period to date and the remaining second half of the year:

• Change in laws and regulations governing the operations of the Company and its subsidiaries which may affect their business, investments and results of operations.
• Foreign currency risk
• Credit risk
• Liquidity risk
• Country risk

Management monitors these risks and applies the following risk management procedures:

Foreign currency ("FX") risk

Financial instruments that potentially represent risk for the Group include deposits, debtors and credit balances denominated in foreign currency, creditors in foreign currency and deposits in foreign currency other than EUR. The Group's rental contracts are stipulated in EUR or on EUR basis thus mitigating FX risk associated with non-EUR based revenues. As of 30 June 2023, the Group does not have any open forward transactions.

Credit risk

The Group aims to mitigate lending risk by its careful and continuous debtor portfolio monitoring process and by requiring bank guarantees and collateral. In addition, the Group regularly follows up information about the main debtors in the market. Concentrations of credit risk, with respect to trade accounts receivable, are limited due to the large number of customers and due to the dispersion across geographical areas. Receivable balances are monitored on an ongoing basis.

Investments of surplus funds are made only with reliable counterparties and are allocated between more banks and financial institutions in order to mitigate financial loss through potential counterparty failure.

1

Liquidity risk

Liquidity risk is monitored as follows:

• Monitoring daily available deposited and free cash by entity.
• Monitoring weekly cash flows by entity.
• As part of the management information system, the Group monitors the operations of each entity on a monthly basis.
• The Group monitors its long-term cash flows in order to match the maturity patterns of its assets and liabilities.

Country risk

The Group has operations in Luxembourg, in the Netherlands and in Hungary. By the geographical diversification of the operations, the Group mitigates the effects of country risk. Notwithstanding the, as yet unknown, impact of the global coronavirus pandemic, the Group has not identified any significant risks that may affect the financial performance of Group members associated with the countries in which the Group operates. Further as members of the European Union and the legal structure associated with it, management believes that country risk is not a matter of significant concern.

Related Party Transactions

Principal related parties

Gábor Várszegi, Chairman of the Board, directly or indirectly controls a part of the voting shares of Blackburn International Inc. ("Blackburn"), a Panama company, and Blackburn International Luxembourg S.à r.l. ("Blackburn Luxembourg"), a Luxembourg company. Blackburn Luxembourg has a controlling interest in Fotex Holding S.E. and in Fotex Ingatlan Kft. ("Fotex Ingatlan") and is the ultimate controlling party for Fotex Holding S.E. and Fotex Ingatlan. APF International provides real estate services to the group and is partly owned by two group directors. Whiteoak Management provides accounting and company secretarial services to the group and is owned by two group directors. One director rents sundry commercial property from the group on an arm's length basis. These companies are considered to be related parties.

There were no material related party transactions during the period.

Significant Events after the end of the reporting period

There were no material significant events after the reporting period.

2

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