Company: Warimpex Finanz- und Bet. AG
Industry: Real estate
Country: Austria
Sector: Real Estate
Company type: Stock corporation
Revenue (EUR): 49685000
Employees: 343

Reported EU Taxonomy activities:
Acquisition and ownership of buildings
Construction of new buildings

EU Taxonomy KPIs (currency: EUR, units: millions)
Turnover:
totalTurnover: value: 49.685
percentage: 100%
eligibleTurnover: value: 36.925
percentage: 74%
alignedTurnover: value: 7.531
percentage: 15%
nonEligibleTurnover: value: 12.76
percentage: 26%
CapEx:
totalCapex: value: 16.134
percentage: 100%
eligibleCapex: value: 14.386
percentage: 89%
alignedCapex: value: 11.865
percentage: 74%
eligibleNotAlignedCapex: value: 2.521
percentage: 16%
nonEligibleCapex: value: 1.748
percentage: 11%
OpEx:
totalOpex: value: 1.057
percentage: 100%
eligibleOpex: value: 0.795
percentage: 75%
alignedOpex: value: 0.153
percentage: 14%
nonEligibleOpex: value: 0.262
percentage: 25%

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Image /page/0/Picture/0 description: The image is a book cover for the "Warimpex Annual Report 2023". The cover features a modern, multi-story office building with a glass facade. The building is set against a blue sky. The title of the report is displayed in white text on a dark blue background, framed by two white lines.

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#### WARIMPEX GROUP

## *Key Figures*

| in EUR '000                                                           | 2023       | Change    | 2022       |
|-----------------------------------------------------------------------|------------|-----------|------------|
| Investment Properties revenues                                        | 36,925     | 11%       | 33,154     |
| Hotels revenues                                                       | 11,308     | 22%       | 9,273      |
| Development and Services revenues                                     | 1,453      | -46%      | 2,709      |
| Total revenues                                                        | 49,685     | 10%       | 45,136     |
| Expenses directly attributable to revenues                            | -17,110    | 6%        | -16,100    |
| Gross income from revenues                                            | 32,575     | 12%       | 29,036     |
| Gains or losses from the disposal of properties                       | –          | –         | 2,821      |
| EBITDA                                                                | 21,617     | 31%       | 16,498     |
| Depreciation, amortisation, and remeasurement                         | -38,443    | –         | 42,649     |
| EBIT                                                                  | -16,826    | –         | 59,148     |
| Financial result                                                      | -10,494    | –         | -6,522     |
| Profit or loss for the period (annual result)                         | -23,807    | –         | 42,864     |
| Net cash flow from operating activities                               | 24,791     | 128%      | 11,353     |
| Equity and liabilities                                                | 371,273    | -18%      | 455,068    |
| Equity                                                                | 122,036    | -28%      | 170,289    |
| Equity ratio                                                          | 33%        | -4 pp     | 37%        |
| Number of shares                                                      | 54,000,000 | –         | 54,000,000 |
| Earnings per share in EUR                                             | -0.46      | –         | 0.82       |
| Number of treasury shares as at 31 December                           | 1,939,280  | –         | 1,939,280  |
| Number of office and commercial properties                            | 10         | 1         | 9          |
| Lettable space                                                        | 138,200 m2 | 11,900 m2 | 126,300 m2 |
| m² with sustainability certificates                                   | 106,300 m2 | 30,900 m2 | 75,400 m2  |
| in % of the total floor area                                          | 77%        | 17 pp     | 60%        |
| Number of hotels                                                      | 3          | -1        | 4          |
| Number of hotel rooms (adjusted for proportionate share of ownership) | 831        | –         | 831        |

|                                         | 31/12/2023 | Change | 31/12/2022 |
|-----------------------------------------|------------|--------|------------|
|                                         |            |        |            |
| Gross asset value (GAV) in EUR millions | 360.1      | -16%   | 429.3      |
| NNNAV per share in EUR                  | 2.68       | -29%   | 3.78       |
| EPRA NTA per share in EUR               | 2.56       | -29%   | 3.59       |
| End-of-period share price in EUR        | 0.745      | 15%    | 0.65       |

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WARIMPEX ANNUAL REPORT 2023

Image /page/2/Figure/2 description: The image shows the word "Contents" in white, cursive font against a blue background.

- 02 Key Figures of the Warimpex Group
- 06 Warimpex An Overview
- 07 Highlights in 2023
- 08 Foreword by the Chairman of the Management Board
- 10 Investor Relations

#### 12 Corporate Governance Report including Diversity Concept

14 Boards and Officers of the Company

## 19 Group Management Report

- 19 Economic Conditions
- 20 Markets
- 26 Business Development: Assets, Financial Position, and Earnings Situation
- 30 Real Estate Assets
- 32 Material Risks and Uncertainties
- 37 Consolidated Non-Financial Statement
- 38 Warimpex An Overview
- 45 EU Taxonomy
- 54 Environment and Energy
- 57 Ethics and Compliance
- 58 Social Responsibility
- 58 Employees
- 60 Human Rights
- 62 Disclosures pursuant to § 243a Austrian Commercial Code
- 63 Outlook

- 64 Consolidated Financial Statements of Warimpex Finanz- und Beteiligungs AG
- 65 Consolidated Income Statement
- 66 Consolidated Statement of Comprehensive Income
- 67 Consolidated Statement of Financial Position
- 68 Consolidated Statement of Cash Flows
- 69 Consolidated Statement of Changes in Equity
- 70 Notes to the Consolidated Financial Statements
- 130 Auditor's Report

136 Supervisory Board Report

138 Declaration by the Management Board

#### 139 Financial Calendar

139 Publication Details

MC55 Office Białystok, PL

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Image /page/3/Picture/0 description: This image shows the exterior of the Mogilska 35 Office building in Krakow, PL. The building is modern, with a glass facade and a blue-gray exterior. The image also shows the surrounding area, which is covered in snow. The text in the image says "4 WARIMPEX ANNUAL REPORT 2023" and "Mogilska 35 Office Krakow, PL".

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Warimpex is a "hybrid" real estate company that develops and operates properties itself as an asset manager and property owner until the time at which the highest added value can be realised through sale. The majority of these projects is located in Central and Eastern Europe.

Accordingly, the Warimpex Group generates ongoing cash flows from the letting of office space and the operation of hotel properties while simultaneously realising proceeds from property sales.

Sustainability is a key success factor for Warimpex. Environmental and social megatrends are leading to new requirements for properties – at a pace that will accelerate significantly in the coming years. We are already taking measures today to ensure that our properties remain attractive and retain their value over the long term, with a focus on innovative buildings for a carbon-free future, the efficient use of resources, proximity to nature, and health and well-being. In this way, we also contribute to the transition to a sustainable economy and society.

The hybrid business model is particularly well-suited to allow Warimpex to integrate environmental and social aspects into its property development activities. Because Warimpex does not just develop properties with a short-term outlook, but also holds them in its portfolio and operates them itself for an indefinite period of time, long-term value retention and low operating costs are in the Group's own interest.

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## WARIMPEX *An Overview*

## Evolution of the Warimpex Group

Warimpex was founded in 1959 by Stefan Folian as an import/export and transit trading company. From 1982 onwards, under the management of Georg Folian and Franz Jurkowitsch, the Company started to specialise in real estate projects in Central and Eastern Europe. Since that time, the Warimpex Group has developed real estate with investments amounting to more than two billion euros, including hotels in the five-, four-, and three-star categories. Warimpex has increasingly focused on the development of office buildings in recent years.

## Development and asset management

Real estate project development and operations are coordinated by Warimpex in Vienna together with the local branch offices in Budapest, St. Petersburg, Krakow, and Łódź. Warimpex also builds upon its successful, long-standing cooperative projects with international hotel groups such as the Inter-Continental Group, Kempinski, and Accor.

The Warimpex Group's real estate development projects and the operation of its properties have an impact on the social, ecological, and economic environments in which it does business. Because of this, the Company bears great responsibility. It has firmly anchored the fulfilment of this responsibility into its corporate culture, and sees living up to this responsibility as a central element in its success. This applies to new and existing buildings. In the further development of existing properties into hotel and office buildings, we attach considerable importance to compliance with the requirements for the preservation of the historic features of the properties. Building energy-efficient buildings is a matter of course for us.

## Existing portfolio

As at the end of 2023, Warimpex was the owner of ten commercial and office buildings with a total floor area of some 138,000 square metres, plus three hotels (one of which is leased) with a total of 1,000 rooms (roughly 800 rooms when adjusted for the proportionate share of ownership) in Poland, Germany, Russia, and Hungary.

Due to the long service life of properties, the decisions we make today have an impact for the next 10 to 30 years. In the coming years, climate protection and the sustainable use of resources will become even more important than they already are today. Real estate companies have to respond now – for instance in the area of climate protection. In order to achieve the 2-degree target defined at the Paris climate conference in 2015, we will have to transform into a low-carbon economy that hardly emits any carbon dioxide by 2050. This already has to be factored into long-term investments today. Warimpex is aware of its far-reaching responsibility in this context and does not see properties merely as economic goods, but also takes the ecological and social aspects into account in every stage of the planning. This basic philosophy reflects a deep-seated conscientiousness and respect for people and the environment and shapes both the Company's corporate culture and its concrete activities in all areas of business.

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Image /page/6/Picture/1 description: The image contains the word "Highlights" in large, blue, stylized font. Below that, in smaller, red font, are the words "IN 2023".

## Operational highlights

#### 2/2023

Topping out ceremony for Mogilska 35 Office in Krakow

#### 9/2023

New zoning plan for plots of land in Darmstadt

#### 11/2023

Grand opening of Mogilska 35 Office

## Financial highlights

- Revenue of EUR 49.7 million (up 11 per cent)
- Gross income from revenues of EUR 32.6 million (up 12 per cent)
- EBITDA of EUR 21.6 million (up 31 per cent)
- Depreciation, amortisation, and remeasurement of minus EUR 38.4 million
- EBIT of minus EUR 16.8 million
- Loss for the period of EUR 23.8 million
- Property assets (gross asset value) of EUR 360.1 million (down 16 per cent)
- EPRA NTA per share of EUR 2.56 (down 29 per cent)

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## FOREWORD BY THE CHAIRMAN OF THE MANAGEMENT BOARD *Dear Shareholders,*

The high interest rate levels and elevated construction costs posed a tremendous challenge for the entire real estate sector last year, and Warimpex was no exception to this trend. Despite these negative conditions, we were still able to generate a clearly positive operating result and push ahead with our projects in Poland and Germany as planned. This strong operating result is contrasted by significant measurement losses, which can be attributed above all to the development of interest rates and the effects of the conflict in Ukraine. This makes it all the more important that Warimpex continues to have a stable financial base with a healthy equity ratio and strong cash flows.

## Operational improvements – property measurement losses of EUR 38.4 million

Total revenues improved to EUR 49.7 million (up 10 per cent). This can be attributed to higher revenues from office properties (up 11 per cent) and hotels (up 22 per cent). On one hand, our Polish office properties achieved higher occupancy and Avior Tower in St. Petersburg has also been fully occupied since the beginning of 2023. Business for hotels was still stunted by the COVID-19 pandemic in the prior-year period, but the market has seen a solid recovery recently. No real estate transactions were executed in 2023 apart from the sale of our stake in Palais Hansen, which was recognised in equity. The B52 office building in Budapest was sold at a profit in the prior-year period. EBITDA improved by 31 per cent to EUR 21.6 million due to the increases in revenue and lower operating expenses.

EBIT went from EUR 59.1 million in the previous year to minus EUR 16.8 million. This clearly reflects the negative result from depreciation, amortisation, and remeasurement of EUR 38.4 million. In 2022, Warimpex saw measurement gains of EUR 42.6 million in this item, which plainly demonstrates the volatile economic conditions and the associated measurement fluctuations. The financial result also went from minus EUR 6.5 million to minus EUR 10.5 million, with finance expenses remaining nearly unchanged versus the prior year. By contrast, income from foreign exchange rate changes in the financial result and from joint ventures came in lower. All in all, this led to a decline in the result for the period from EUR 42.9 million in the previous year to minus EUR 23.8 million.

Key financial metrics are clearly positive, not least due to the stability in terms of operating activities. For example, our cash flow from operating activities nearly doubled versus the prior year, coming to EUR 24.8 million. At the same time, Warimpex has a healthy equity ratio of 33 per cent. In addition, we are benefiting from the fact that only 20 per cent of our interest-bearing liabilities are subject to variable interest rates, so the interest rate risk is manageable.

Innovative, sustainable office concepts in Poland and Germany Warimpex continues to focus on office developments in Poland and Germany, and is using existing property reserves for this purpose. This will allow us to continue long-standing strategy and react flexibly to market developments.

In November 2023, Warimpex opened its third office building in the Polish city of Krakow with Mogilska 35 Office. The EU Taxonomy-aligned property has 11,900 square metres of net floor space, is located very close to the city centre, and is named after its address on Mogilska street. In February 2024, Mogilska 35 Office officially received BREEAM – Excellent certification.

In October 2023, the zoning plan for the development property in Darmstadt was approved, allowing Warimpex to start on further developments with up to 77,500 square metres of floor space. The first office development at the site, West Yard 29, will offer 12,500 square metres of lettable space and will meet the highest standards with regard to sustainable and environmentally friendly construction methods. For example, roof and facade greening, photovoltaic systems, and a tailored mobility concept with sharing offers are planned.

Further projects include the MC 55 office building in Białystok with roughly 38,500 square metres of space and the Chopin co-living/office project in Krakow with around 20,600 square metres of space. Building permits have already been issued for both of these projects.

With regard to our assets in Russia, it is currently possible to autonomously continue our operational activities in the country without significant restrictions. New projects are still not planned. Since the beginning of the conflict in Ukraine, management has continuously focused on the related geopolitical developments. The Management Board is monitoring the economic and legal developments in Russia very closely in coordination with the Supervisory Board in order to be able to react quickly to current events if necessary.

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#### Focus on coworking and sustainability

Markets such as Germany and Poland are unified in the fact that the world of work has changed due to the coronavirus pandemic. Workspaces that can be let out temporarily offer outstanding working infrastructure as well as a high level of flexibility. Cowork by Memos is a Warimpex company that offers flexible office space and is now also present in Mogilska 35 Office with roughly 750 square metres of space. This is already Memos' fourth coworking space in Poland: Additional coworking spaces are located at the Ogrodowa Office and Red Tower buildings in Łódź, at Mogilska 43 Office in Krakow, and at the greet hotel in Darmstadt.

Energy efficiency, the use of renewable energy sources, and reducing carbon emissions are core considerations in the construction, refurbishment, and ongoing operation of buildings. The Company generally plans to obtain high-quality, international sustainability certifications and achieve EU Taxonomy alignment for all new developments.

#### Outlook

Market conditions are expected to remain challenging due to the continuing conflict in Ukraine and the declining economic growth. Therefore, the development of inflation and interest rates, the associated increase in the cost of project financing, and the yield trend for properties are once again key issues in the industry this year.

As described above, Warimpex has a stable financial base. Based on the current budget figures, we anticipate positive results for our ongoing operational activities for 2024. These activities will focus on making preparations for construction at the Darmstadt site and continuing ongoing construction and development activities.

Together with our team, we have successfully overcome challenging economic phases time and time again. With this in mind, we would sincerely thank our employees for their tireless dedication last year and not least you, our valued shareholders, for your continued trust in Warimpex.

Vienna, April 2024

**Franz Jurkowitsch**

lsc^

*Franz Jurkowitsch*

> CHAIRMAN OF THE MANAGEMENT BOARD

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# *Investor Relations*

The share price was EUR 0.65 and PLN 3.40 at the beginning of the year and saw very volatile development throughout the year. The closing price at 28 December 2023 was EUR 0.745 and PLN 4.00.

## SHAREHOLDER STRUCTURE AS AT 10 APRIL 2024

Image /page/9/Figure/4 description: This image is a pie chart showing the ownership of a company. 45% of the company is free float. 25% of the company is owned by Georg Folian (including Bocca Privatstiftung). 25% of the company is owned by Franz Jurkowitsch (including Amber Privatstiftung). > 5% of the company is owned by Generali OFE.

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Image /page/10/Figure/1 description: The image is a line graph comparing the performance of four different investment indices over time. The x-axis represents the years from 2020 to 2024, and the y-axis represents the percentage change in value, ranging from -60% to 40%. The four indices are Warimpex (represented by a dark blue line), IATX (represented by a yellow line), WIG 20 (represented by a light blue line), and ATX Prime (represented by an orange line). The graph shows the fluctuations in the value of each index over the years, with some indices experiencing significant drops and recoveries, while others show more stable performance.

## SHARE PRICE PERFORMANCE

## KEY SHARE DATA

| ISIN                              | AT0000827209          |
|-----------------------------------|-----------------------|
| Number of shares as at 31/12/2023 | 54,000,000            |
| Ticker symbols                    | Stock exchanges WXF   |
|                                   | Reuters WXFB.VI       |
| High*                             | EUR 0.975   PLN 10.40 |
| Low*                              | EUR 0.60   PLN 3.17   |
| Price as at 28/12/2023            | EUR 0.745   PLN 4.00  |
| * Last 52 weeks                   |                       |

| Warimpex is included in the following indices, among others: |                                |
|--------------------------------------------------------------|--------------------------------|
| Vienna                                                       | ATX Prime, Immobilien-ATX      |
| Warsaw                                                       | WIG, WIG-Real Estate           |
| 100-day trading average                                      | in Vienna roughly 9,300 shares |

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### WARIMPEX

## *Corporate Governance Report*

In accordance with the recommendation in the AFRAC opinion on corporate governance reports, the corporate governance report of the parent company and the consolidated corporate governance report are being merged into a single report.

## Commitment to the Code of Corporate Governance

Warimpex is committed to compliance with the Austrian Code of Corporate Governance (ACCG) as well as the Polish Best Practice for GPW Listed Companies 2021. The Management Board declares that it complies with both sets of guidelines to the best of its ability and published its corporate governance report at www.warimpex.com (Company/ESG). Deviations from individual corporate governance rules relate to the Company's structure and/or to Polish rules that are not complied with due to the Company's primary orientation towards the relevant Austrian regulations.

## Austrian Code of Corporate Governance, as amended in January 2023

The Austrian Code of Corporate Governance (as amended in January 2023 and which was applied for financial year 2023, www.corporate-governance.at) contains rules that must be followed (L-Rules), rules that are not mandatory for the Company but for which justification must be provided in the event of non-compliance (C-Rules), and rules that are entirely optional for the Company. Failure to comply with them requires no justification (R-Rules). Overall, the Company's statutes and the internal terms of reference for the Management Board and the Supervisory Board comply with the L-Rules in full, and with all of the C-Rules except as explained below:

- The Company has neither outsourced its internal auditing functions nor set up a separate staff unit for internal auditing purposes, which would be required by Rule 18. The Company has no intention to make such changes at this time. The Management Board has judged that such measures would be disproportionately cost intensive, and the implementation of Rule 18 is not planned for the foreseeable future for cost reasons.
- The remuneration of the Management Board is made up of fixed and variable components. The amount of the variable remuneration is not linked to any non-financial criteria as defined in Rule 27. This is intended to ensure objectivity and transparency. For further disclosures and information regarding the remuneration paid to the individual Supervisory Board members and the individual members of the Management Board, please consult sections 9.3.2.3. and 9.3.2.4. in the notes to the consolidated financial statements. Additional information is available in the report on the remuneration policy and the annual remuneration report on Warimpex's website.
- According to Rule 62, an external evaluation of compliance with the C-Rules must take place regularly, in any case at least every three years. The results of this evaluation must be presented in the corporate governance report. An internal evaluation is completed on the basis of the External Evaluation of Compliance with the Austrian Code of Corporate Governance questionnaire, which is also used for external evaluations. No external evaluation is conducted for cost reasons.
- The financial auditor does not assess the effectiveness of the Company's risk management system in a separate report as defined in Rule 83. Such an external evaluation is not conducted for cost reasons, as in the course of auditing the financial statements, financial auditors also gain an understanding of the internal controls that are relevant for the audit.

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## Poland – Best Practice for GPW Listed Companies 2021

The Company has decided to comply with these Polish rules, with the following exceptions. The majority of the exceptions relate to Austrian law, to which the Company is subject.

- Rules 1.4.1–1.5: The Company voluntarily prepares a detailed consolidated non-financial report (sustainability report as part of the management report). This report includes a sustainability strategy. An equal pay index for employees is not published due to the significant differences in the employees' areas of responsibility and places of employment. The Company's sponsorship activities are not reported separately for each charity organisation due to the very low extent to which the Company engages in such activities.
- Rules 2.1–2.2: The Company does not have a binding diversity concept. Further information can be found in this report under the heading "Diversity concept – measures for promoting women".
- Rule 2.11.: Austrian law does not require an assessment by the Supervisory Board of the internal control, risk management, and compliance systems and other such systems. Austrian law requires that a Supervisory Board report be submitted to the Annual General Meeting; the contents of this report do not fully satisfy the Polish regulations.
- Rules 3.1 and 3.4–3.8: The Company has neither outsourced its internal auditing functions nor set up a separate staff unit for internal auditing purposes. The Company has no intention to make such changes at this time. The Management Board has judged that such measures would be disproportionately cost intensive, and the implementation of this is not planned for the foreseeable future for cost reasons.
- Rules 4.1, 4.3, and 4.5.: Webcasts of the Company's Annual General Meeting are not offered due to the high costs involved. The Company allows votes to be cast by authorised proxy, and this option is exercised by numerous Polish institutional investors. Annual General Meetings are conducted according to Austrian law.
- Rule 6.4: The Company's remuneration policy, which was prepared in accordance with Austrian stock corporation regulations and put to a vote by the Annual General Meeting, provides for meeting attendance fees for each meeting of the Supervisory Board or a committee. Annual fixed remuneration can also be established by way of a resolution of the Annual General Meeting.

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SUMMARY OF THE BOARDS AND OFFICERS AND THE CORRESPONDING REMUNERATION

*Management* 

*Board*

Daniel Folian Deputy Chairman

Year of birth: 1980 First appointed: 1 January 2018 Appointed until 31 December 2027 Responsibilities: finances and accounting, investor relations, and financial management

## Franz Jurkowitsch

Chairman of the Management Board

Year of birth: 1948 First appointed: 2 September 1986 Appointed until 31 December 2027 Responsibilities: strategy and corporate communications

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## Florian Petrowsky Member of the Management Board

Year of birth: 1967 First appointed: 1 May 2014 Appointed until 30 April 2029 Responsibilities: transaction management, organisation, human resources, and legal issues

Alexander Jurkowitsch

Member of the Management Board

Year of birth: 1973 First appointed: 31 July 2006 Appointed until 31 March 2029 Responsibilities: planning, construction, IT, and information management

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# *Supervisory Board*

Image /page/15/Picture/2 description: Four people are standing next to each other in front of a white background. The person on the left is a man wearing a navy blue suit with a patterned tie. The second person from the left is a man wearing a black suit with an orange tie. The third person from the left is a woman wearing a gray plaid suit. The person on the right is a man wearing a black suit with a blue tie.

Hubert Staszewski Member of the Supervisory Board

Year of birth: 1972 First appointed: 8 June 2016 Current period of office ends in 2027 (42nd AGM)

Thomas Aistleitner Deputy Chairman of the Supervisory Board Chairman of the Audit Committee Member of the Project Committee Member of the Personnel Committee

Year of birth: 1953 First appointed: 11 June 2012 Current period of office ends in 2026 (41st AGM)

Gina Goëss Member of the Supervisory Board

Year of birth: 1956 First appointed: 14 September 2021 Current period of office ends in 2025 (40th AGM)

## Günter Korp

Chairman of the Supervisory Board Deputy Chairman of the Audit Committee/financial expert Chairman of the Personnel Committee Deputy Chairman of the Project Committee

Year of birth: 1945 First appointed: 16 October 2009 Current period of office ends in 2026 (41st AGM)

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Image /page/16/Picture/1 description: A man in a suit and tie is standing in front of a white background. He is wearing glasses and has short brown hair. He is looking at the camera with a slight smile. The man is wearing a gray pinstripe suit with a white shirt and a blue tie. The suit is buttoned up, and the tie is neatly knotted. The man's hands are at his sides, and he is standing straight. To the left of the man is another person wearing a black suit.

## Harald Wengust

Member of the Supervisory Board Chairman of the Project Committee Member of the Audit Committee Deputy Chairman of the Personnel Committee

Year of birth: 1969 First appointed: 16 October 2009 Current period of office ends in 2026 (41st AGM)

All members of the Supervisory Board are independent as defined by C-Rule 53 of the Austrian Code of Corporate Governance. The guidelines for independence are based on the guidelines published in Annex 1 to the Code.

A member of the Supervisory Board shall be deemed independent if said member does not have any business or personal relations with the Company or its Management Board that constitute a material conflict of interests and is therefore suited to influence the behaviour of the member.

The Supervisory Board shall also follow the guidelines below when defining the criteria for the assessment of the independence of a member of the Supervisory Board:

- The Supervisory Board member shall not have served as a member of the Management Board or as a management-level staff member of the Company or one of its subsidiaries in the past five years.
- The Supervisory Board member shall not maintain or have maintained in the past year any business relations with the Company or one of its subsidiaries to an extent of significance for the member of the Supervisory Board. This shall also apply to relationships with companies in which a member of the Supervisory Board has a considerable economic interest, but not for exercising functions in the bodies of the Group.
- The approval of individual transactions by the Supervisory Board pursuant to L-Rule 48 does not automatically mean the person is qualified as not independent.
- The Supervisory Board member shall not have acted as auditor of the Company or have owned a share in the auditing company or have worked there as an employee in the past three years.
- The Supervisory Board member shall not be a member of the management board of another company in which a member of the Management Board of the Company is a supervisory board member.
- A Supervisory Board member may not remain on the Supervisory Board for more than 15 years. This shall not apply to Supervisory Board members who are shareholders with a direct investment in the Company or who represent the interests of such a shareholder.
- The Supervisory Board member shall not be a close relative (direct offspring, spouse, life partner, parent, uncle, aunt, sibling, niece, nephew) of a member of the Management Board or of persons who hold one of the positions described in the previous items.

A directors and officers liability insurance policy has been taken out.

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18

## Information about the procedures of the Management Board and Supervisory Board

#### The Management Board

The terms of reference for the Management Board govern the composition and procedures of the Board, collaboration between the Management Board and Supervisory Board, how conflicts of interest are to be handled, the reporting and disclosure obligations of the Board, and what decisions require the approval of the Supervisory Board (including the most important business transactions of the Company's material subsidiaries). The Management Board generally meets at least every two weeks to exchange information and decide on motions.

#### Working principles of the Supervisory Board

The Supervisory Board discusses the position and objectives of the Company and adopts motions to fulfil its duties, in particular the supervision and strategic assistance of the Management Board. In addition to the composition, procedures, working principles, and responsibilities of the Supervisory Board, the terms of reference for this Board also govern how conflicts of interest are to be handled and specify the Supervisory Board committees (Audit Committee, Personnel Committee, and Project Committee) and their responsibilities and powers. The Supervisory Board held five meetings during the reporting period. Please refer to the Supervisory Board report for information about the focuses of the activities of and the number of meetings of the individual committees during the financial year.

Meetings were also held between the Supervisory Board and Management Board to discuss issues of Company management. All members of the Supervisory Board took part in more than half of the meetings of this Board during the reporting period.

#### Committees

The Supervisory Board appoints an Audit Committee, a Project Committee, and a Personnel Committee from among its members.

A separate strategy committee has not been formed because all such issues are handled by the Supervisory Board as a whole. The members of the committees are appointed for the duration of their tenure on the Supervisory Board. Each committee elects a chairman and a deputy chairman from among its members. Please refer to the information about the boards and officers of the Company for further details.

Image /page/17/Picture/10 description: A group of nine people are posing for a picture. Seven men are standing in the back row, and two men and one woman are sitting in the front row. All of the people are wearing suits. The men are wearing ties, and the woman is wearing a gray suit. The background is a plain white wall.

## Diversity concept – measures for promoting women

There is currently one woman serving on the Supervisory Board of Warimpex. There are 5 women in management positions – including one woman who serves as an authorised officer (Prokuristin) and one woman who serves as a country director – which represents a share of 33 per cent.

There are currently no concrete measures for the promotion of women in managerial positions in place at the Company.

At this time, the Company does not have a binding diversity concept that stipulates the consideration of criteria such as age, gender, education, and professional background in the appointment of members of the Management Board and Supervisory Board. The Company does not want to limit itself in the selection of board members. Nevertheless, the Management Board and Supervisory Board are very diverse in terms of the age, educational and professional background, and nationality of the members.

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Image /page/18/Picture/1 description: A close-up shot of a window with a white frame. The window is divided into two sections, with the larger section on the left and a smaller, narrower section on the right. The glass in both sections reflects the outside light, and a curtain can be seen through the glass. The window frame is clean and well-maintained, and the overall impression is one of simplicity and functionality.

# *Group Management Report*

## Economic Conditions

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

Image /page/18/Picture/4 description: A close-up shot of a window with a white frame. The window is divided into two sections, with the larger section on the left and a smaller, narrower section on the right. A dark gray vertical bar runs between the two sections, appearing to be part of the window's structure or a shade mechanism. The glass in both sections appears to be tinted or covered with a film, giving it a gray appearance. The window is set against a light-colored wall.

Attention continued to be focused on the geopolitical developments in 2023. On 24 February 2022, Russian troops invaded Ukraine, thus starting a conflict that has resulted in significant economic upheavals due to the international sanctions imposed against Russia as well as the reactions in Russia and will most likely continue to have an impact for some time. For information about the impact of the Ukraine conflict on the Group, please refer to the information in the consolidated financial statements as at 31 December 2023, section 3.4.1., and the section "Outlook" in the management report.

In addition, inflation rose significantly in the Eurozone starting in 2022, due in part to energy price increases and shortages caused by the Ukraine conflict. The ECB reacted by raising the key interest rate in multiple steps from July 2022 to September 2023, when the key rate was hiked to 4.5 per cent. Consequently, inflation declined again in the Eurozone over the course of the year. However, the ECB's target of 2 per cent has not yet been reached.

greet hotel Darmstadt\*\*\*S Darmstadt, D

{19}------------------------------------------------

Image /page/19/Picture/0 description: This image shows a cityscape with a tall, red building in the center. The building is labeled as "Red Tower, Łódź, PL". The text "Markets" and "WARIMPEX GROUP MANAGEMENT REPORT 2023" are also visible in the image. The number 20 is in the upper left corner. In the lower left corner, there is a sign that says "Kochajcie się mamo i tato www.sycha.org".

{20}------------------------------------------------

## MARKETS *Poland*

## Economic environment

Prime yields for office properties in Krakow ranged from 6.25 per cent to 6.50 per cent (2022: 5.75 per cent to 6.50 per cent)1, while rents were between EUR 10.00 and EUR 16.00 per square metre in Krakow and between EUR 9.00 and EUR 15.00 per square metre in Łódź.2 At the end of 2023, the vacancy rate was 19.8 per cent in Krakow (end of 2022: 16 per cent) and 21 per cent in Łódź (end of 2022: 21 per cent).3

#### Existing portfolio: 4 office properties, 1 hotel

Warimpex bought the Red Tower in Łódź at the end of June 2022. Renovations were started during the 2022 financial year and are continuously progressing. The Red Tower is located in the heart of Łódź, is 80 metres high, and offers a gorgeous panoramic view as one of the highest office buildings in the city. The property was built in 1978 and completely modernised from 2006 to 2008. With more than 12,400 square metres of lettable space, the Red Tower offers office space with flexible partitioning and layouts. A typical storey has an area of around 650 square metres with large windows and light wells that ensure that all workstations are well lit. Around 30 per cent of the space of the office building was occupied as at the reporting date.

Ogrodowa Office was opened in Łódź in 2018. The building is a state-of-the-art office property located directly in the Łódź city centre near the Manufaktura shopping centre. The tenants include Orange Polska, PwC Poland, and Harman Connected Services. Ogrodawa Office was awarded BREEAM In-Use – Excellent certification and is classified as Taxonomy-aligned according to the EU Taxonomy Regulation. Around 81 per cent of the space at the office building was occupied as at the reporting date.

Mogilska 43 Office was completed in early April 2019. A full 100 per cent of the office space was occupied as at the reporting date. Mogilska 43 Office is an ultra-modern, class A office building that encompasses a total of 12,900 square metres over nine floors. Large glass surfaces provide natural lighting for the offices, and the efficient climate control system ensures the optimal temperature and humidity. Green balconies and terraces can be accessed directly from the office level. The building's ground floor contains retail and service spaces, and the two-storey garage offers 203 parking spaces as well as bike racks, changing rooms, and showers. Mogilska 43 Office meets the highest environmental standards and has been awarded BREEAM In-Use – Excellent certification. The office property is classified as Taxonomy-aligned according to the Taxonomy Regulation.

An office building in Krakow (Mogilska 41 Office) with roughly 5,100 square metres of space was acquired in 2017, renovated, and handed over to the new tenant in September 2019. The building has been fully occupied since then.

The grand opening of Mogilska 35 Office, an office building with roughly 11,900 square metres of space, was celebrated in November 2023. The building has received BREEAM In-Use – Excellent certification. Based on the environmental standards that were taken into account in the development of the property, it is classified as Taxonomy-aligned in accordance with the EU Taxonomy Regulation. As at the reporting date, 64 per cent of the office space was already let.

Warimpex has been 50 per cent leaseholder of the five-star InterContinental in Warsaw since the end of December 2012. As part of a lease agreement, the hotel is being leased back at a fixed rate and managed under the InterContinental brand until 2040.

Occupancy at the InterContinental hotel increased from 62 per cent in the prior year to 80 per cent and the average room rate in euros advanced by roughly 36 per cent.

#### Under development: 3 office buildings, reserve properties

In recent years, Warimpex has acquired smaller, partially developed properties adjacent to the three existing Mogilska office buildings. The Mogilska Phase IV project will subsequently be built on these properties. The initial demolition work has already been completed.

Warimpex is also the owner of a development property next to the Chopin Hotel in Krakow, on which a co-living/office building with around 20,600 square metres of space is to be built. A building permit has already been issued.

Warimpex owns a development property in Białystok. Three office buildings with roughly 33,500 square metres of office space and 5,000 square metres of commercial space are to be built. A building permit was issued in March 2021.

<sup>1</sup> Knight Frank, Report for Warimpex

<sup>2</sup> Knight Frank, Report for Warimpex

<sup>3</sup> Knight Frank, Report for Warimpex

{21}------------------------------------------------

## MARKETS *Hungary*

## Economic environment

In Budapest, average monthly rents increased by 4 per cent to EUR 14.604, prime yields advanced by 75 basis points yearon-year to 6.75 per cent5, and vacancy rose from 11.3 per cent to 13.3 per cent.6

### Existing portfolio: 1 office property

In Budapest, Warimpex owns the Erzsébet office building, which has a total net floor space of around 14,400 square metres.

Roughly 95 per cent of the space at Erzsébet Office was let out on the reporting date; 12,700 square metres (of 14,400 square metres) are let to the insurance company Groupama Biztositó zRT, a Hungarian branch of the international Groupama Group.

The B52 office building with over 5,200 square metres of net floor space was sold at a profit to Semmelweis University in June 2022.

4 CBRE, Report for Warimpex 5 CBRE, Report for Warimpex 6 CBRE, Report for Warimpex

Image /page/21/Picture/9 description: The image shows a tall building with many windows. A white outline of Hungary is superimposed on the building, with a red dot indicating the location of Budapest. A text box in the lower right corner reads "Erzsebet Office, Budapest, HU."

{22}------------------------------------------------

Image /page/22/Picture/1 description: The image contains the word "MARKETS" in red, above the word "Austria" in blue.

Warimpex sold its stake of around 10 per cent in the company holding the Palais Hansen Kempinski Vienna hotel at the end of 2023.

Image /page/22/Picture/3 description: The image shows the Palais Hansen Kempinski, a five-star hotel in Vienna, Austria. The hotel is a large, ornate building with a red brick facade and a row of windows. There is a map of Austria in the upper right corner of the image, with a red dot indicating the location of Vienna.

{23}------------------------------------------------

## MARKETS *Russia*

## Economic environment

The vacancy rate for class A office properties in St. Petersburg was 5.9 per cent at the end of 2023 (2022: 11.5 per cent), and average rents (including operating costs and VAT) came to roughly RUB 2,200 (around EUR 22; 2022: RUB 2,079) per square metre per month.7

#### Existing portfolio:

#### 3 office properties, 1 multi-use building, 1 hotel

In St. Petersburg, Warimpex holds 100 per cent of AIRPORT-CITY St. Petersburg. In the first phase of the project, a fourstar Crowne Plaza hotel (InterContinental Hotel Group) and two office towers (Jupiter 1 + 2) with 16,800 square metres of lettable space were opened at the end of December 2011. AIR-PORTCITY St. Petersburg was developed by the project company AO AVIELEN A.G. and is located in close proximity to the Pulkovo international airport in St. Petersburg. AIR-PORTCITY is the first premium-class business centre in the region and is a key infrastructure project in the economic centre of St. Petersburg.

7 Maris, Market Commentary, Saint Petersburg

The Zeppelin office building with 15,500 square metres of lettable space was completed at AIRPORTCITY at the end of June 2015. The tower is completely let out. Zeppelin meets the highest environmental standards and has been awarded LEED – Gold certification. In addition, Warimpex owns the Bykovskaya multi-use building (with parking spaces for around 450 vehicles and roughly 2,200 square metres of office and 2,500 square metres of archive space), which has been fully occupied since it was completed in May 2017.

The Avior Tower office building with roughly 18,600 square metres of lettable office space was completed in the third quarter of 2022 and has been fully occupied since January 2023.

The Airportcity Plaza hotel (formerly the Crowne Plaza) achieved occupancy of 54 per cent (1–12 2022: 48 per cent) while the average room rate in euros rose by 18 per cent versus the prior-year period.

#### Under development: Development properties

There are property reserves for around 150,000 square metres of office space at AIRPORTCITY St. Petersburg. 7 Maris, Market Commentary, Saint Petersburg

Image /page/23/Picture/13 description: The image shows a building with a modern design, featuring a facade with a pattern of vertical stripes in shades of yellow, orange, and red. The building has many windows, and the overall impression is one of contemporary architecture. In the lower-left corner, the word "warimpex" is visible. On the right side of the image, there is a map outline with red dots indicating locations. A text box contains the words "AirportCity" and "St. Petersburg, RU".

{24}------------------------------------------------

## MARKETS *Germany*

## Economic environment

Prime yields for office properties in Darmstadt increased from 4.1 per cent in the previous year to 4.7 per cent. Occupancy went from 5.1 per cent to 6.3 per cent. Prime rents remained constant at EUR 14.00 per square metre and month.8

#### Existing portfolio: 1 hotel

In April 2019, Warimpex acquired a hotel property in Darmstadt and later reopened it under the name greet hotel. Cycas Hospitality was tasked with managing the three-star superior conference hotel. Following the pandemic-related restrictions and extensive renovation, the hotel is once again welcoming more guests. With a total of 330 hotel and longstay rooms and 37 conference, event, and project rooms spanning more than 4,500 square metres of conference, event, and exhibition space, as well as 1,000 square metres of office space that can also be rented on a short-term basis, the hotel is one of the biggest conference and event centres in the Rhine-Main region. The hotel's occupancy (excluding the long-stay area) was 49 per cent during the reporting period (1–12 2022: 43 per cent). The average room rate declined by 3 per cent year-on-year.

## Under development: Development properties

The 30,000 square metre hotel property also offers property reserves for the development of further premium office and commercial space. A new zoning plan was approved by the City of Darmstadt in September 2023. The permit planning for the first office building (West Yard 29 with roughly 12,500 square metres) is already at an advanced stage.

8 CBRE Valuation Report for Warimpex

Image /page/24/Picture/10 description: The image shows the greet hotel in Darmstadt, Germany. The hotel is a modern, white building with a yellow stripe on the side. The text on the image says "greet hotel Darmstadt\*\*\*S Darmstadt, D".

{25}------------------------------------------------

## BUSINESS DEVELOPMENT *Assets, Financial Position, and Earnings Situation*

## Earnings situation

#### Development of revenues

The 11 per cent rise in revenues from the rental of office properties (Investment Properties revenues) from EUR 33.2 million to EUR 36.9 million is due to the higher occupancy rate of the Polish office properties as well as additional revenues from Avior Tower, which has been fully occupied since the beginning of 2023.

Revenues in the Hotels segment advanced to EUR 11.3 million in 2023, which represents an increase of 22 per cent compared with the prior-year period. The development of revenues was still stunted by the COVID-19 pandemic in the first half of the previous year.

Total revenues improved by 10 per cent to EUR 49.7 million, while the expenses directly attributable to revenues increased by 6 per cent to EUR 17.1 million. This led to a 12 per cent increase in gross income from revenues to EUR 32.6 million (2022: EUR 29.0 million).

#### Gains or losses from the disposal of properties

The Group conducted no real estate transactions in 2023. The B52 office property in Budapest was sold at a profit in the prior-year period.

#### EBITDA

EBITDA (earnings before interest, taxes, depreciation, amortisation, and gains/losses on the remeasurement of investment properties) rose from EUR 16.5 million to EUR 21.6 million due to the increase in revenues as well as lower operating expenses, which can be attributed to the elimination of one-off costs in the prior year as well as the lower rouble exchange rate.

#### Depreciation, amortisation, and remeasurement

On balance, depreciation, amortisation, and remeasurement led to a loss of EUR 38.4 million (2022: gain of EUR 42.6 million). The net measurement result for the investment properties accounted for minus EUR 38.3 million of this amount in 2023, while measurement gains of EUR 45.9 million were recognised in the prior year. The measurement losses can be attributed to higher interest rates and in part to lower expected rental revenue. Measurement gains resulted from the completion of Mogilska 35 Office in Krakow as well as the new zoning plan in Darmstadt.

Net impairment reversals of EUR 2.1 million were recognised in the Hotels segment (2022: impairments of EUR 0.8 million).

#### EBIT

EBIT fell from EUR 59.1 million to minus EUR 16.8 million, mainly due to the negative result from depreciation, amortisation, and remeasurement in the amount of minus EUR 38.4 million (2022: remeasurement gain of EUR 42.6 million).

#### Financial result

Finance income (including earnings from joint ventures) went from minus EUR 6.5 million to minus EUR 10.5 million. Finance expenses remained nearly unchanged; by contrast, income from foreign exchange rate changes in the financial result and from joint ventures came in lower.

#### Profit or loss for the period

Overall, the result for the period for the Warimpex Group decreased from EUR 42.9 million in the previous year to minus EUR 23.8 million.

{26}------------------------------------------------

## Segment analysis

For more information, see the detailed comments in section 2. Segment information of the notes to the consolidated financial statements.

The Warimpex Group has defined the business segments of: Investment Properties, Hotels, and Development and Services. The Investment Properties segment contains the income and expenses from the rental of office properties as well as the gains/losses on the remeasurement of the properties. The results from the operation of the hotel properties owned by the Group are shown in the Hotels segment. The Development and Services segment covers development services, activities of the Group parent, and profit contributions from the sale of properties.

#### Hotels segment

| in EUR '000                                                         | 1–12 2023 | 1–12 2022 |
|---------------------------------------------------------------------|-----------|-----------|
|                                                                     |           |           |
| Segment revenues                                                    | 11,308    | 9,273     |
| Segment EBITDA                                                      | 2,461     | 2,039     |
| Depreciation, amortisation, and<br>impairments/impairment reversals | 692       | -2,009    |

The development of revenues in 2022 – and particularly in the first half of the year – was still stunted by the COVID-19 pandemic, while no such restrictions were in place during the reporting period.

#### Investment Properties segment

| in EUR '000                                        | 1–12 2023 | 1–12 2022 |
|----------------------------------------------------|-----------|-----------|
| Segment revenues                                   | 36,925    | 33,154    |
| Segment EBITDA                                     | 25,415    | 21,252    |
| Property remeasurement result                      | -44,819   | 44,499    |
|                                                    |           |           |
| in EUR '000                                        | 1–12 2023 | 1–12 2022 |
| Segment revenues                                   | 1,453     | 2,709     |
| Gains or losses from<br>the disposal of properties | –         | 2,821     |
| Segment EBITDA                                     | -6,260    | -6,793    |
| Remeasurement result                               | 5,685     | 159       |

The higher revenues and the EBITDA for the Investment Properties segment are primarily the result of the additional earnings contributions from the Avior office tower and higher occupancy rates in Poland. The measurement losses can be attributed to higher discount rates for measurement and in part to lower expected rental revenue.

#### Development and Services segment

The results in this segment typically depend heavily on the sale of real estate holdings (share deals) and properties (asset deals) and are subject to significant year-on-year fluctuation. The approval for a new zoning plan for office development space in Darmstadt was received in September, which led to an increase in the value of the plots of land and thus a remeasurement gain. In the fourth quarter, the new Mogilska 35 Office building was completed and opened, which also led to an increase in value in the Development segment.

The B52 office property in Budapest was sold at a profit in June of the prior year.

{27}------------------------------------------------

## Assets

| Consolidated Statement of Financial Position in EUR '000 | 31/12/2023 | 31/12/2022 | 31/12/2021 |
|----------------------------------------------------------|------------|------------|------------|
|                                                          |            |            |            |
| ASSETS                                                   |            |            |            |
| Non-current assets                                       | 359,450    | 434,081    | 371,114    |
| Current assets                                           | 11,824     | 20,986     | 17,000     |
| Total assets                                             | 371,273    | 455,068    | 388,118    |
| EQUITY AND LIABILITIES                                   |            |            |            |
| Share capital                                            | 54,000     | 54,000     | 54,000     |
| Retained earnings and reserves                           | 67,904     | 116,164    | 70,612     |
| Equity attributable to the parent                        | 121,904    | 170,164    | 124,612    |
| Non-controlling interests                                | 133        | 125        | 105        |
| Total equity                                             | 122,036    | 170,289    | 124,717    |
|                                                          |            |            |            |
| Non-current liabilities                                  | 211,517    | 246,775    | 218,817    |
| Current liabilities                                      | 37,720     | 38,004     | 44,584     |
| Total liabilities                                        | 249,237    | 284,779    | 263,401    |
| Total equity and liabilities                             | 371,273    | 455,068    | 388,118    |

As Warimpex is a property developer, the assets side of the statement of financial position is dominated by investment properties and property, plant, and equipment. Because roughly 60 per cent of the properties held by Warimpex Group are financed through long-term project loans, non-current financial liabilities make up the majority of the liabilities side of the statement of financial position. The decline in the statement of financial position as at 31 December 2023 can be attributed to lower property valuations as at the reporting date and to the lower rouble exchange rate. In addition, loans were repaid during the financial year.

{28}------------------------------------------------

## Financial position

| Consolidated Statement of Cash Flows in EUR '000 | 2023          | 2022         |
|--------------------------------------------------|---------------|--------------|
| Cash receipts from operating activities          | 55,592        | 49,897       |
| Cash payments for operating activities           | -30,801       | -38,544      |
| Net cash flows from operating activities         | 24,791        | 11,353       |
| Net cash flows for investing activities          | -10,285       | -3,111       |
| Net cash flows from financing activities         | -21,488       | -4,520       |
| <b>Net change in cash and cash equivalents</b>   | <b>-6,982</b> | <b>3,722</b> |
| Cash and cash equivalents at 31 December         | 6,857         | 15,924       |

## Cash flow from operations

The cash flow from operating activities increased significantly during the reporting period due to higher income (rental revenue from the Avior office tower and new lettings in Poland; 2022: inclusion of Jupiter office tower and higher rouble exchange rate) and lower expenses.

## Cash flows for investing activities

The cash receipts from investing activities primarily pertained to the sale of the shares in the holding company for the Palais Hansen Kempinski hotel (2022: sale of the B52 office building in Budapest and returns from joint ventures). The cash payments for investments were mainly related to construction activities for Mogilska 35 Office in Krakow (2022: for the construction of Avior Tower and Mogilska 35 as well as the purchase of the Red Tower office building in Łódź).

## Cash flows from financing activities

The change in the cash flows from financing activities can be attributed primarily to the ongoing repayment of loans, offset against borrowings for the construction of Mogilska 35 Office. In the prior year, the changes pertained to loan repayments in connection with the sale of the B52 office building in Budapest, which were offset against loans and borrowing in relation to the purchase of the Red Tower in Łódź, construction activities, and ongoing loan repayments.

{29}------------------------------------------------

#### REAL ESTATE ASSETS

On 31 December 2023, the real estate portfolio of the Warimpex Group comprised three hotels with roughly 1,000 rooms (around 800 rooms when adjusted for the proportionate share of ownership), plus ten office properties with total lettable office and commercial space of roughly 138,000 square metres.

Image /page/29/Figure/3 description: The image shows a donut chart of property assets in millions of euros. The chart shows that 285.4 is existing office assets, 37.7 is existing hotel assets, and 37.0 is development.

## GAV BY COUNTRY IN %

Image /page/29/Figure/5 description: The image is a pie chart showing the distribution of something across four countries: Poland, Russia, Germany, and Hungary. Poland accounts for 48%, Russia accounts for 35%, Germany accounts for 11%, and Hungary accounts for 7%.

## Calculation of gross asset value and triple net asset value in EUR millions

Warimpex recognises its property, plant, and equipment such as hotel properties at cost less depreciation according to IAS 16, as is required for owner-operated hotels in IAS 40.12. Changes in the value of investment properties (primarily office buildings) are recognised through profit or loss according to the fair value model in IAS 40.56.

The majority of the properties and development projects are valuated twice annually (on 30 June and 31 December) by independent real estate appraisers.

On 31 December 2023, the following experts appraised Warimpex's portfolio:

| Appraiser               | Fair values as at 31/12/2023 |     | in % |
|-------------------------|------------------------------|-----|------|
|                         | in EUR millions              |     |      |
| Maris                   |                              | 108 | 30%  |
| Knight Frank            |                              | 170 | 47%  |
| CB Richard Ellis        |                              | 62  | 17%  |
| Core XP                 |                              | 17  | 5%   |
| Others or not appraised |                              | 2   | 1%   |
|                         |                              | 360 | 100% |

The fair values are determined in accordance with the valuation standards of the Royal Institute of Chartered Surveyors (RICS). The fair value is the price that would be paid for the transfer of an asset or a liability in a transaction at arm's length terms on the reporting date. The real estate appraisers use an income-based approach (investment method or discounted cash flow method) to calculate the fair values of developed properties, and the comparative method for reserve properties. Development projects are generally measured using the residual value method, taking a developer's profit into account.

For information on the yield used to calculate the fair value, please see section 7.1.3. (investment properties) and section 7.2.2. (hotels) in the notes to the consolidated financial statements as at 31 December 2023.

The gross asset value (GAV) of Warimpex's property assets came in at EUR 360.1 million at 31 December 2023 (31 December 2022: EUR 429.3 million). This decline was primarily due to the weaker rouble exchange rate as well as lower property valuations on the whole. The Group's triple net asset value (NNNAV) fell from EUR 196.9 million as at 31 December 2022 to EUR 139.8 million as at 31 December 2023.

The triple net asset value (NNNAV) and the EPRA Net Asset Value are calculated as follows:

| in EUR millions                          | 12/2023      | 12/2022      |
|------------------------------------------|--------------|--------------|
| Equity before non-controlling interests  | 121.9        | 170.2        |
| Deferred tax assets                      | -1.0         | -1.7         |
| Deferred tax liabilities                 | 11.2         | 10.2         |
|                                          | 19.8         | 18.1         |
| Carrying amount of existing hotel assets | -30.0        | -33.3        |
| Fair value of existing hotel assets      | 37.7         | 7.7          |
|                                          | 41.9         | 8.6          |
| <b>Triple net asset value</b>            | <b>139.8</b> | <b>196.9</b> |
| Number of shares as at 31 December       | 54.0         | 54.0         |
| Treasury shares                          | -1.9         | -1.9         |
| Number of shares as at 31 December       | 52.1         | 52.1         |
| <b>NNNAV per share in EUR</b>            | <b>2.68</b>  | <b>3.78</b>  |

The changes in the NNNAV per share and the NAV per share (EPRA NRV, EPRA NTA, EPRA NDV) are primarily due to the lower rouble exchange rate as well as property measurement losses as at the reporting date.

{30}------------------------------------------------

|                                                       | 31/12/2023 | 31/12/2023 | 31/12/2023 |
|-------------------------------------------------------|------------|------------|------------|
| EPRA Net Asset Value Metrics                          | EPRA NRV   | EPRA NTA   | EPRA NDV   |
| in EUR '000                                           |            |            |            |
| IFRS Equity attributable to shareholders              | 121,904    | 121,904    | 121,904    |
| Include:                                              |            |            |            |
| ii.c) Revaluation of other non-current investments    | 7,542      | 7,542      | 7,542      |
| Diluted NAV at Fair Value                             | 129,446    | 129,446    | 129,446    |
| Exclude:                                              |            |            |            |
| v) Deferred tax in relation to fair value gains of IP | 7,550      | 3,775      |            |
| vi) Fair value of financial instruments               | 0          | 0          |            |
| viii.b) Intangibles as per the IFRS balance sheet     |            | -13        |            |
| Include:                                              |            |            |            |
| ix) Fair value of fixed interest rate debt            |            |            | 26,973     |
| xi) Real estate transfer tax                          | 7,625      | 0          |            |
| NAV                                                   | 144,621    | 133,208    | 156,420    |
| Fully diluted number of shares                        | 52,100     | 52,100     | 52,100     |
| NAV per share                                         | €2.78      | €2.56      | €3.00      |

|                                                       | 31/12/2022 | 31/12/2022 | 31/12/2022 |
|-------------------------------------------------------|------------|------------|------------|
| EPRA Net Asset Value Metrics                          | EPRA NRV   | EPRA NTA   | EPRA NDV   |
| in EUR '000                                           |            |            |            |
| IFRS Equity attributable to shareholders              | 170,164    | 170,164    | 170,164    |
| Include:                                              |            |            |            |
| ii.c) Revaluation of other non-current investments    | 8,236      | 8,236      | 8,236      |
| Diluted NAV at Fair Value                             | 178,400    | 178,400    | 178,400    |
| Exclude:                                              |            |            |            |
| v) Deferred tax in relation to fair value gains of IP | 17,215     | 8,607      |            |
| vi) Fair value of financial instruments               | -85        | -85        |            |
| viii.b) Intangibles as per the IFRS balance sheet     |            | -47        |            |
| Include:                                              |            |            |            |
| ix) Fair value of fixed interest rate debt            |            |            | 22,960     |
| xi) Real estate transfer tax                          | 8,648      | 0          |            |
| NAV                                                   | 204,178    | 186,875    | 201,360    |
| Fully diluted number of shares                        | 52,100     | 52,100     | 52,100     |
| NAV per share                                         | €3.92      | €3.59      | €3.86      |

{31}------------------------------------------------

#### MATERIAL RISKS AND UNCERTAINTIES TO WHICH THE GROUP IS EXPOSED AND RISK MANAGEMENT

As an international group, Warimpex is exposed to various economic and financial risks as part of its daily operations.

## a) General

32

As part of its risk management system, Warimpex has set internal risk management targets for the Management Board and Company staff and adapts these targets to the prevailing market conditions. These risk management targets include special regulations and define responsibilities for risk assessment, control mechanisms, monitoring, information management, and communication within the Company and with external parties.

There is a clearly defined organisation within Warimpex and especially within the Management Board that governs responsibilities and authorisations in this connection to enable risks to be identified at an early stage and appropriate action to be taken. The Management Board's guidelines and the guidelines for the Supervisory Board define the responsibilities and obligations of the Company's boards and officers.

## b) Operating risks

In the Investment Properties segment, Warimpex is exposed to the risk that it will be unable to let out spaces, that rents will decline, and that tenants will default on their payments. Rental risk is closely linked to the general economic conditions in the individual markets and is thus subject to corresponding planning uncertainties. There is always a certain degree of rental risk due to the different political and economic developments in the various markets. The competition between property owners for well-known, attractive tenants can also impact occupancy rates and lease extensions, especially amidst lower demand for space due to new workplace models. Depending on the economic development in the various markets, rents can come under pressure. In particular, this may make it necessary to accept rents that are lower than originally projected.

In the Hotels segment, Warimpex is exposed to the general risks inherent to the tourism industry such as economic fluctuations, political risks, increasing fear of terrorist attacks, and travel restrictions related to pandemics or due to changes in geopolitical circumstances. There is the risk that competitors may enter the Group's target markets, thereby increasing the number of beds available.

The Group is exposed to finance and currency risks, interest rate risks, market entry risks, and the risk of delays in the completion of construction work on real estate projects. In addition, there are risks of rent default which may impact both on the current cash flow and on property values.

The Group invests in real estate in a limited number of countries, and is therefore exposed to increased risk that local conditions such as an excess supply of properties can affect the development of business. Owing to its focus on property development and property holdings, the Group's performance is heavily dependent on the current situation in the real estate markets. Price declines in the real estate market could therefore affect the Group significantly and also influence real estate financing.

Real estate maintenance is a key aspect in the sustainable economic development of the Warimpex Group. Asset management staff therefore submit status reports to the Management Board at regular intervals together with projections for the optimum maintenance of the properties.

## c) Capital market risk

Refinancing on the capital market is of high strategic importance for Warimpex. To avoid risks of insufficient capital market compliance, Warimpex has enacted a compliance guideline that ensures adherence to the capital market regulations and that especially prevents the abuse or sharing of insider information. A permanent confidentiality area has been set up for all employees in Vienna, and temporary confidentiality areas are set up and waiting periods and trading prohibitions enacted on a project basis.

## d) Legal risks

As an internationally active company, Warimpex is exposed to a wide range of legal risks. These include risks related to the purchase and sale of properties and legal disputes with tenants or joint venture partners.

At the time the financial statements were prepared, a lawsuit filed by the Group with regard to two outstanding monthly rent payments was pending in court. Please see section 9.1.1. of the notes to the consolidated financial statements for more information.

## e) Political risks

Along with operating and legal risks, the activities of Warimpex are subject to (geo)political risks, particularly with regard to the office properties and the hotel in St. Petersburg at the moment. As demonstrated by the developments in connec

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tion with the conflict in Ukraine and the sanctions imposed against Russia in response, legal and economic conditions can change drastically at very short notice due to unforeseeable geopolitical events. Such developments are very volatile, and the full scope of the microeconomic and macroeconomic effects is difficult to estimate. The Management Board is monitoring the developments very closely in order to be able to react swiftly and adapt its strategy as quickly as possible if necessary.

## f) Climate-related risks

Warimpex sees the sustainability of its properties as an important success factor and reinforces this with corresponding certifications for the majority of the property portfolio. In some cases, such certifications have already been issued and in other cases, the Company plans to pursue certification in the future. Nevertheless, the Company is exposed to climate-related risks. Climate-friendly construction and the climate-friendly operation of office properties or hotels can lead to higher construction and operating costs. There is a risk that these costs will not be able to be passed on to the tenants or guests or that lower proceeds will be generated in the event of a sale.

In addition, there are risks in connection with the EU's Green Deal and the EU Taxonomy that is based on it, including the defined environmental targets. According to the EU Taxonomy, office properties are generally Taxonomy-eligible.

In this context, there is a risk that the requirements for Taxonomy alignment will be met to a lesser extent in the future due to older existing properties and/or new technical standards. This could make it more expensive and/or more difficult to secure loans. In addition, the demand for properties that are not Taxonomy-aligned may decline among buyers or tenants, thus leading to a decrease in the value of such properties.

Warimpex assesses climate-related risks on an ongoing basis, but does not expect any carrying amount adjustments to become necessary in this context in the next financial year based on the fact that the majority of the Group's economic activities are Taxonomy-eligible.

Only a few properties have the best certifications that are necessary to contribute to meeting the climate targets. In general, certifications are planned for all new developments with a minimum standard of LEED – Gold, BREEAM – Excellent, or DGNB – Gold.

There is a risk that property appraisers will apply a "brown discount" of up to one-third of the property value for properties that are not energy-efficient (i.e. unsustainable) in the future. In addition, there is a risk that the financing costs for properties that cause higher emissions will be higher and the rents lower.

## g) Risk and risk management related to financial instruments

Aside from derivative forms of financing, the most significant financial instruments used by the Group are current account and bank loans, bonds, cash and cash equivalents, and shortterm deposits. The main purpose of these financial instruments is to provide funds for the Group's operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables which arise directly from its operations.

The Group also occasionally enters into derivatives transactions that are intended to minimise the Group's exposure to interest rate and currency risk. The Group's risk management policies provide for a risk-oriented relationship between fixed-rate and variable-rate financial liabilities. All significant financial transactions are subject to approval by the Management Board and, when required, also approval by the Supervisory Board.

Further information on financial risk management, in particular quantitative disclosures, can be found in the notes to the consolidated financial statements in section 8.2.

#### Interest rate risk

The risk of fluctuations in market interest rates (usually the three-month EURIBOR for bank loans) to which the Group is exposed results primarily from its variable-rate long-term financial liabilities.

Interest rate hikes can impact the Group's result by causing higher interest expenses for existing variable-rate financing. In the case of variable-rate financing, a change in the interest rate has an immediate effect on the Company's financial result.

Warimpex limits the risk of rising interest rates that would lead to higher interest expenses and a worsening of the financial result in part through the arrangement of fixed-rate financing and in part through the use of derivative financial instruments (especially interest rate swaps). As at the reporting date, only around 20 per cent of the Group's interest-bearing financial liabilities were subject to variable interest rates, so interest rate risk is considered to be moderate for Warimpex.

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#### Currency risk

Currency risk results primarily from financial liabilities denominated in currencies other than the functional currency. For Group companies that have the euro as their functional currency, this is primarily financial liabilities in a local or other foreign currency (such as PLN), or for foreign Group companies with the local currency as their functional currency, financial liabilities in a foreign currency (EUR). In recent years, all EUR loans of subsidiaries that have the rouble as their functional currency were gradually refinanced in local currency, so there were no longer any such EUR loans as at the reporting date, meaning that the associated currency risk has been eliminated.

There are no natural hedges, and the Group does not systematically use derivative financial instruments to hedge its exposure to foreign currency risk. When needed, cross currency swaps or currency forwards concluded for a maximum of one year in relation to specific future payments in foreign currencies are employed to hedge the currency risk.

#### Default risk

The amounts stated as assets on the face of the consolidated statement of financial position represent the maximum credit risk and default risk, since there are no general settlement agreements.

The default risk pertaining to trade receivables in the Investment Properties segment correlates to the creditworthiness of the tenants. Tenants' creditworthiness can deteriorate on a short- or medium-term basis, particularly during an economic downturn. In addition, the risk can emerge that a tenant will become insolvent or is otherwise incapable of meeting the payment obligations defined in the lease. The risk of rent default can be reduced further through targeted monitoring and proactive measures (e.g. requiring collateral, assessing tenants' creditworthiness and reputation).

The default risk associated with trade receivables can be considered moderate in the Hotels segment because receivables are generally paid either in advance or immediately on site. Longer payment terms are generally only accepted for receivables from travel agencies.

The Group is in a position to influence the default risk on loans to joint ventures or associates through its involvement in the management of the respective companies, but there are still default risks arising from operational risks.

The default risk associated with cash and short-term deposits can be considered negligible since the Group only works with financial institutions which can demonstrate sound creditworthiness. The default risk for other receivables is relatively low, as attention is paid to working with contract partners that have good credit ratings. The Group recognises impairments where necessary.

Please also see section 8.2.3. in the notes to the consolidated financial statements.

#### Liquidity risk

The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank loans for project financing. Refinancing on the capital market is also of high strategic importance for Warimpex.

Significant fluctuations on the capital markets can hamper the raising of equity and debt capital. To limit refinancing risk, Warimpex maintains a balanced combination of equity and debt capital and of different terms for bank and capital market financing.

Liquidity risks are also minimised through a medium-term 18-month plan, an annual budget planned in monthly blocks, and revolving monthly liquidity planning. Daily liquidity management ensures that all operational obligations are met and that cash is invested optimally. Free liquidity resulting from the sale of properties is primarily used to repay operating credit lines and to finance acquisitions and the development of new projects.

Warimpex continuously monitors budget compliance and progress for development projects and maintenance work to prevent cost overruns and an associated increased outflow of liquidity.

Please also see section 8.2.4. in the notes to the consolidated financial statements.

## h) Reporting on key characteristics of the internal control system and the risk management system as relevant for the accounting process

The Management Board bears overall responsibility for the Group's risk management system, while operational responsibility lies with the managers of the respective business units.

This makes the internal reports that are submitted to Group headquarters particularly important in ensuring that risks are recognised at an early stage so that suitable countermeasures can be taken. To this end, the operating units submit weekly and monthly reports to the Management Board with all necessary information.

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The internal reports that are prepared by the subsidiaries are subjected to plausibility reviews at the Group headquarters and are compared with the planning calculations to ensure that suitable countermeasures can be taken in the event of deviations. To this end, the companies are required to submit annual budgets and medium-term plans, which must be approved by the Management Board.

The correctness of the accounts at the subsidiaries is monitored by the local management as well as by the Group holding company, particularly on the basis of the input from and the reporting to the Group accounting department. This is intended to prevent risks that lead to incomplete or erroneous financial reporting.

In addition to the measures taken under the internal control system, the annual financial statements of all operational property companies are also reviewed by external financial auditors, so the consolidated financial statements are largely based on audited local figures.

The risk management system is primarily monitored by the Management Board, and compliance with the prescribed risk management targets and methods in the preparation of quarterly and annual financial statements is ensured by the following units and individuals:

- Management Board, especially the Chief Financial Officer
- Group accounting department

- Audit Committee (for annual and consolidated financial statements)

The current development of business and foreseeable opportunities and risks are discussed at regular meetings between the Management Board and local managers.

Quarterly financial statements are prepared by the Group accounting department in orientation towards IAS 34, Interim Financial Reporting, reviewed by the Chief Financial Officer, and then approved for publication by the Management Board. The annual financial statements and consolidated annual financial statements are studied by the Supervisory Board and by the Audit Committee before they are published.

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Image /page/35/Picture/1 description: This image shows a street scene at dusk. On the left side of the image is a red brick building with a series of columns. A tree is in front of the building, partially obscuring it. On the right side of the image is a modern office building with glass windows. The sky is a mix of blue and pink, indicating that it is either sunrise or sunset. There are cars driving on the street, and their headlights are blurred due to the long exposure time. A sign in the lower right corner reads "Ogrodowa Office Łódź, PL".

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## *Consolidated Non-Financial Statement*

Warimpex is not required to issue a consolidated non-financial report pursuant to § 267a UGB (Austrian Sustainability and Diversity Improvement Act, NaDiVeG).

However, Warimpex has decided to make its reporting as comprehensive as possible and voluntarily include a non-financial statement in its management report in orientation towards the NaDiVeG despite the fact that the Group has fewer than 500 employees.

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## WARIMPEX – Business model

Warimpex is a "hybrid" real estate company that develops and operates properties itself as an asset manager and property owner until the time at which the highest added value can be realised through sale. The majority of these projects is located in Central and Eastern Europe.

Accordingly, the Warimpex Group generates stable cash flows from the letting of office space and the operation of hotel properties while simultaneously realising proceeds from property sales.

In contrast to pure real estate portfolio companies, Warimpex combines the steady business of the asset management segment with the high profitability of the property development segment. Under this strategy, the property development units benefit from the stable cash flow from the developed properties, and the typical exit risk of a pure project developer is simultaneously minimised because the completed properties are generally held in the Company's portfolio initially in order to wait for the right time to sell.

## WARIMPEX – An Overview

#### Evolution of the Warimpex Group

Warimpex was founded in 1959 by Stefan Folian as an import/export and transit trading company. From 1982 onwards, under the management of Georg Folian and Franz Jurkowitsch, the Company started to specialise in real estate projects in Central and Eastern Europe. Since that time, the Warimpex Group has developed real estate with investments amounting to more than two billion euros, including hotels in the five-, four-, and three-star categories. Warimpex has increasingly focused on the development of office buildings in recent years.

#### Development and asset management

Real estate project development and operations are coordinated by Warimpex in Vienna together with the local branch offices in Budapest, St. Petersburg, Krakow, and Łódź. Warimpex also builds upon its successful, long-standing cooperative projects with international hotel groups such as the Inter-Continental Group, Kempinski, and Accor.

Image /page/37/Figure/10 description: The image shows a diagram of the real estate development process. The process is divided into three stages: Real estate development and search for properties, Use, and Sale. The first stage, Real estate development and search for properties, involves long-term planning, selection of location and plot, and purchase of properties. The second stage, Use, involves cash flow asset management, commercial and office buildings, hotels, letting out (managed by the company), and management outsourced. The third stage, Sale, is flexible and involves sale to generate maximum added value. Demolition and new construction, and expansion and renovation are also part of the process.

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As at the end of 2023, Warimpex was the owner, co-owner, or leaseholder of ten commercial and office buildings with a total floor area of some 138,200 square metres in Poland, Russia, Hungary, and Germany, plus three hotels with a total of 1,000 rooms (roughly 800 rooms when adjusted for the proportionate share of ownership).

In preparation for the requirements of the European Sustainability Reporting Standards (ESRS), which Warimpex will presumably be required to apply starting in the 2025 financial year, Warimpex has defined the following aspects:

#### Organisational boundaries

The operational control approach according to IFRS is applied for data limitation. All KPIs listed in the ESG reporting refer to Warimpex Finanz- und Beteiligungs AG and all fully consolidated subsidiaries in the specified reporting period or as at the specified reporting date (unless otherwise indicated). The reporting on the consumption data of the property portfolio solely includes developed properties that were in operation throughout the reporting year.

Properties that were acquired, sold, or completed during the reporting period and thus were not part of the property portfolio for the entire period were not taken into account.

#### Scope

We strive to report on all properties within the organisational boundary defined above. This excludes (developed) properties that are classified as property reserves such as temporary buildings or buildings for interim use.

Office properties make up the core segment of Warimpex; as at the reporting date, office properties accounted for roughly 79 per cent of the entire property portfolio, with the rest consisting of hotels (11 per cent) and projects under development/ property reserves (10 per cent).

The property portfolio based on the scope described above includes:

- 10 developed buildings, thereof 6 multi-tenant office buildings
- 2 hotels

Of these,

- 5 buildings were heated with district heat, and
- 7 buildings with gas.

Data on owner-occupied and let-out properties is presented separately.

In order to be able to provide comprehensive data on the total energy consumption of our buildings, we make every effort to obtain tenant consumption data (electricity purchased directly by the tenant) for all buildings by requesting this data on a regular basis.

#### Scope of reporting

The procedure for the allocation of CO2 emissions is based on the responsibility principle. Therefore, energy consumption and the resulting CO2 emissions are allocated to the party – Warimpex or a tenant – that has control over the consumption and can influence it via various measures. The consumption data was defined as follows:

- Scope 1 includes all direct greenhouse gas emissions from sources that Warimpex owns or controls. In the case of buildings, the primary source of scope 1 emissions is the combustion of fossil fuels on site and, if applicable, biomass to generate heat, e.g. for electricity generation, space heating, the production of hot water, or for cooking. Company vehicles are also included under scope 1.
- Scope 2 includes indirect emissions from the generation of purchased or acquired electricity, steam, heat, or cooling. In the case of properties, scope 2 primarily refers to electricity consumption. As such, shared electricity always falls under scope 2 for lessors. Emissions from purchased heat or cooling, e.g. from district heat or district cooling, also fall into this category.

The Greenhouse Gas (GHG) Protocol defines two calculation methods:

The location-based method quantifies scope 2 emissions on the basis of the average emissions intensity of grids on which energy consumption occurs. Emissions factors are often defined according to national borders, but can be based at local level.

The market-based method quantifies scope 2 emissions on the basis of the emissions associated with the generators that supply electricity to the organisation. As such, the market-based method reflects the decisions of an organisation with regard to its electricity supply and provides a mechanism for capturing the procurement of renewable energy, which ultimately reduces emissions.

Warimpex applies the market-based method.

• Scope 3 includes all other indirect emissions that are not attributable to the purchase of energy-related emissions. The limits for scope 3 can be very broad depending on the reporting objective, including upstream and downstream emissions from various parts of the value chain. Embodied carbon and upfront carbon according to life cycle modules A1–A5 are classified as upstream emissions. Downstream emissions fall under life cycle modules B1–B5 and C1–C4.

Scope 3 always accounts for the largest share in the real estate sector.

The factors of the given energy provider (for district heat and electricity) from the relevant energy contracts are applied for

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Image /page/39/Figure/1 description: The image shows the text "WARIMPEX sustainability strategy" in blue font.

Image /page/39/Figure/2 description: The image shows three circular charts displaying the percentage of properties with sustainability certificates for different periods. The first chart, labeled "12/2022," indicates 60%. The second chart, labeled "12/2023," shows 77%. The third chart, labeled "WARIMPEX's target," displays 100%. Below the charts, there is text stating that Warimpex aims to ensure that all properties in its portfolio have sustainable property certifications and meet the technical criteria of the EU Taxonomy. It also mentions that emphasis is placed on energy efficiency, use of renewable energy sources, carbon reduction, and quality of interior space.

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The following ESG guidelines, among others, are implemented in the Group under the sustainability strategy:

| Environmental                |                                                                                                                                                                                                                                                                   |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Green buildings              | • Providing sustainable buildings that are operated with minimal negative climate effects<br>• Certifications (LEED, BREEAM, DGNB, and WELL)<br>• Contributing to the circular economy through renovation, waste minimisation, and the efficient use of resources |
| Combatting<br>climate change | • Providing and constructing new buildings with a focus on climate change mitigation and climate change<br>adaptation<br>• Reducing carbon footprint<br>• Improving energy efficiency and reducing emissions in our buildings                                     |
| Social                       |                                                                                                                                                                                                                                                                   |
| Tenants                      | • Professional and efficient collaboration in order to find solutions to all problems and optimally meet the<br>tenants' needs                                                                                                                                    |
|                              | of properties                                                                                                                                                                                                                                                     |
| Employees                    | • Creating optimal employment conditions<br>• Respecting employee rights and paying adequate salaries<br>• Creating a positive working atmosphere based on mutual trust and respect                                                                               |
| Communities                  | • Providing high-quality buildings<br>• Developing flexible office space (Memos coworking)                                                                                                                                                                        |

• Tenant inclusion through collaboration and raising awareness for environmental and social impacts in the use

| Governance      |                                                                                                                                                                                                                                                                                                                                 |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Compliance      | • Continuous adherence to the highest business ethics standards<br>• Zero tolerance for any form of corruption, fraud, or anticompetitive and monopolistic conduct<br>• Providing a whistleblower tool<br>• Maintaining relationships with our partners and stakeholders based on mutual trust<br>• No aggressive tax practices |
| Risk management | • Ensuring sustainable profitability of the business model<br>• Identifying risks and providing methods for minimising their impact                                                                                                                                                                                             |
| Transparency    | • Developing and providing ESG indicators                                                                                                                                                                                                                                                                                       |

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#### the market-based calculation.

Due to the long service life of properties, the decisions we make today have an impact for the next 10 to 30 years. In the coming years, climate protection and the sustainable use of resources will become much more important than they already are today. Real estate companies have to respond now – for instance in the area of climate protection. In order to achieve the 2-degree target defined at the Paris climate conference in 2015, we will have to transform into a low-carbon economy that hardly emits any carbon dioxide by 2050. This already has to be factored into long-term investments during the planning phase. Warimpex is aware of its far-reaching responsibility in this context and does not see properties merely as economic goods, but also takes the ecological and social aspects into account in every stage of the planning. This basic philosophy reflects a deep-seated conscientiousness and respect for people and the environment and shapes both the Company's corporate culture and its concrete activities in all areas of business.

The Warimpex Group's real estate development projects and the operation of its properties have an impact on the social, ecological, and economic environments in which it does business. Because of this, the Company bears great responsibility. It has firmly anchored the fulfilment of this responsibility into its corporate culture, and sees living up to this responsibility as a central element in its success. This applies to new and existing buildings. In the further development of existing properties into hotel and office buildings, we attach considerable importance to compliance with the requirements for the preservation of the historic features of the properties. Building energy-efficient buildings is a matter of course for us because the operating costs of these buildings are lower.

Warimpex familiarises its team with the sustainability strategy through training measures. The short chain of command and the annual focus on a few selected projects make it possible to select the right sustainability certification for each property development and optimally implement the strategic priorities. Warimpex's Management Board monitors the consistent adherence to the sustainability strategy for every real estate project and in the overall portfolio. It is also responsible for the implementation of the sustainability activities in the other categories such as sustainable corporate culture (ethics and compliance), social responsibility, employees, and human rights.

Image /page/41/Figure/5 description: The image contains a circular logo with the text "BREEAM" in the center. Encircling "BREEAM" is the text "CODE FOR A SUSTAINABLE BUILT ENVIRONMENT". To the right of the logo are the letters "B", "C", and "A" stacked vertically.

## BREEAM (BRE Environmental Assessment Method)

BREEAM is an internationally recognised certification system that assesses the quality of a building in terms of sustainability. The assessment and certification can take place in many different phases of the life cycle of a building, including during the planning, construction, renovation, or operation.

The evaluation covers the following categories:

- Energy
- Health and well-being
- Innovation
- Land use
- Materials
- Pollution
- Management
- Transport
- Waste
- Water

The critical requirements include aspects such as the use of legally planted and harvested timber and the use of asbestos-free materials.

Depending on the number of points achieved, a project is assigned the following status:

- Pass: 30 to 44 per cent
- Good: 45 to 54 per cent
- Very Good: 55 to 69 per cent
- Excellent: 70 to 84 per cent
- Outstanding: over 84 per cent

Image /page/41/Picture/26 description: The image contains the LEED logo. The logo is a circular emblem with the word "LEED" in large, bold letters at the center. The full name of the organization, "Leadership in Energy & Environmental Design", is written around the perimeter of the circle.

## (Leadership in Energy and Environmental Design)

LEED-certified properties offer the following benefits:

- Improved energy efficiency
- Lower CO2 emissions and lesser impact on climate change
- Lower operating costs
- Protection of water resources
- Healthier sites for people
- Closed-loop waste management

In order to obtain LEED certification, points are assigned for CO2 emissions, energy consumption, water, waste, transport, materials, health, and indoor environmental quality.

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Depending on the number of points achieved, a property is assigned the following status:

- Certified: 40 to 49 points
- Silver: 50 to 59 points
- Gold: 60 to 79 points
- Platinum: over 79 points

Image /page/42/Picture/7 description: The image shows the word "CLEVER" written twice in a bold, sans-serif font. To the left of the first "CLEVER" is a geometric design composed of three black arrow shapes arranged in a triangular pattern.

The properties in Russia whose LEED certification had expired were certified according to the Russian Clever sustainability certification standard.

A project aimed at preparing a sustainability strategy for the development of properties was completed. Along with internal strategic requirements for renovation projects and new construction projects in the office and hotel segments, sustainability standards were defined for Warimpex's properties. The aspects taken into account in this context include requirements from tenants and investors as well as criteria for sustainability certifications such as the BRE Environmental Assessment Method (BREEAM), the Deutsche Gesellschaft für Nachhaltiges Bauen (DNGB) Certification System, and Leadership in Energy and Environmental Design (LEED).

Therefore, this project included the following measures:

- 1. Survey to ascertain the sustainability requirements of the key customers
- 2. Clarification of the importance and use of sustainable building certifications
- 3. Development of minimum sustainability standards for Warimpex real estate projects
- 4. Definition of new, sustainable energy solutions for hotels and office buildings

As a result, the Company now has a clear definition of the sustainability priorities for developments, a process for dealing with sustainability certifications, and a guideline and questionnaire for optimised energy solutions.

The sustainability priorities are energy efficiency, the use of renewable energy sources, the reduction of carbon dioxide emissions, and the quality of interior space (comfort, air quality, etc.).

LEED for Existing Buildings: Operation & Maintenance and BREEAM In-Use were selected as the standard certifications, but different certifications may be employed depending on the country, project type, and market requirements. Different certifications may also exist in the given country, for example when it is necessary to differentiate between new buildings and existing buildings. The plan is to have all new buildings certified during construction and to gradually have existing buildings certified. These certifications do not just benefit the owners – they also directly benefit the tenants in the form of cost savings. Certification will also pay off in the long run: It is conceivable that excessive carbon dioxide emissions will be "punished" with higher taxes in the future, for example. In addition, the decision was made to pursue certification according to the WELL Health-Safety Rating of the International WELL Building Institute (IWBI), which is based on the WELL Building Standard, for the properties in Krakow and Łódź in order to improve health, safety, and well-being in the buildings.

The Warimpex Group also decided to switch to green electricity as far as possible at all properties. The preparations for this are under way.

These certifications will become a unique selling point that is indicative of high sustainability standards for the Warimpex Group's properties.

As at the reporting date, 77 per cent (in terms of square metres; 2022: 60 per cent) of the building stock was certified:

|                                        | Opening | m²      | Certificate                           |
|----------------------------------------|---------|---------|---------------------------------------|
| Mogilska 35 Office<br>Krakow           | 2023    | 11,900  | BREEAM<br>In-Use – Excellent          |
| Avior Tower<br>St. Petersburg          | 2022    | 18,600  | Clever – Gold                         |
| Mogilska 43 Office<br>Krakow           | 2019    | 12,900  | BREEAM<br>In-Use – Excellent,<br>WELL |
| Ogrodowa Office<br>Łódź                | 2018    | 28,400  | BREEAM<br>In-Use – Excellent,<br>WELL |
| Airportcity Car Park<br>St. Petersburg | 2017    | 2,200   | Clever – Bronze                       |
| Zeppelin Tower<br>St. Petersburg       | 2015    | 15,500  | LEED – Gold                           |
| Jupiter<br>St. Petersburg              | 2012    | 16,800  | Clever – Silver                       |
|                                        |         | 106,300 |                                       |

Planned certifications:

No properties under construction at present

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| TIMELINE |                                                                                                                         |                           |
|----------|-------------------------------------------------------------------------------------------------------------------------|---------------------------|
| 2013     | First BREEAM – Good certification for Le Palais Office, Warsaw                                                          | Image: Le Palais Office   |
| 2017     | First ESG report published                                                                                              |                           |
| 2018     | BREEAM – Very Good for Ogrodowa Office, Łódź                                                                            | Image: Ogrodowa Office    |
| 2019     | BREEAM – Very Good for Mogilska 43 Office, Krakow                                                                       | Image: Mogilska 43 Office |
| 2020     | Following optimisation measures, BREEAM – Excellent issued<br>for Ogrodowa Office, Łódź, and Mogilska 43 Office, Krakow | Image: BREEAM logo        |
| 2021     | LEED – Gold for Zeppelin Tower, St. Petersburg                                                                          | Image: Zeppelin Tower     |
| 2023     | BREEAM – Excellent for Mogilska 35 Office, Krakow                                                                       | Image: Mogilska 35 Office |
| 2023     | Clever – Recertification according to Russian sustainability standards                                                  | Image: Clever logo        |

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## Voluntary reporting on the EU Taxonomy

The Taxonomy framework deals with disclosures for large public interest entities with more than 500 employees. In addition, from 1 January 2025 the scope of application will be expanded to include companies that exceed at least two of the following three criteria: 250 employees, net turnover of EUR 50 million, or a balance sheet total of EUR 25 million. Furthermore, small and medium-sized enterprises that meet certain criteria will also be added to the scope of application starting on 1 January 2026.

Warimpex has decided to make its reporting as comprehensive as possible and voluntarily apply the EU Taxonomy although the Group has fewer than 500 employees.

The EU Taxonomy is the EU's classification system for the definition of "environmentally sustainable" business activities. The scope of the economic activities listed in the EU Taxonomy is not all-encompassing, but is limited to sectors that have a significant ecological footprint and thus have particularly high potential to make a positive contribution to a sustainable economy. As an energy- and thus emissions-intensive sector, construction and real estate is one of the industries addressed by the EU Taxonomy.

According to the EU Taxonomy, an economic activity is considered environmentally sustainable if it makes a substantial contribution to at least one of the environmental objectives, does no significant harm to any of the other environmental objectives, and complies with certain minimum safeguards, particularly with regard to responsible corporate governance, human rights, and labour rights.

Entities must report on whether their activities make a substantial contribution to an environmental objective and do no significant harm to the environmental objectives based on the detailed technical screening criteria specified by the European Commission.

Article 18 of the EU Taxonomy Regulation lays down requirements for minimum social safeguards. These minimum safeguards ensure that key policies such as the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights are complied with. The latter contain the principles and rights that are defined in eight of the ten fundamental conventions specified in the ILO Declaration on Fundamental Principles and Rights at Work as well as in the International Bill of Human Rights.

Warimpex considers human rights to be fundamental values and pledges to comply with the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights. Specifically, the core issues of "social matters and employment", "respecting human rights", "combatting corruption and bribery", "taxation", and "fair competition" were addressed under the minimum social safeguards. No violations of the minimum safeguards have been identified in recent years, including violations of labour rights or human rights, corruption or competition laws, or tax laws.

Warimpex has started conducting an internal analysis for this purpose and has identified appropriate policies, documents, and management approaches. These will be expanded and developed further in the future.

The analysis of the Taxonomy eligibility of the Group's business areas yielded the following results:

|                    | Investment Properties              | Hotels | Development<br>and Services |
|--------------------|------------------------------------|--------|-----------------------------|
|                    | 7.7. L68 Real estate activities    | –      | –                           |
|                    | 7.1. F41 Construction of buildings | –      | –                           |
|                    |                                    | –      | –                           |
| Taxonomy-eligible? | Yes                                | No     | No                          |

Warimpex hired an external expert to assess whether its properties are Taxonomy-aligned.

#### Developed properties:

Substantial contribution criteria (environmental objective):

#### Climate change mitigation

Buildings that were built before 31 December 2020 must have at least a class A energy performance certificate. Alternatively, the building must be within the top 15 per cent of the national or regional building stock expressed as operational primary energy demand (PED) and demonstrated by adequate evidence.

#### Climate change adaptation

Buildings that were built before 31 December 2020 must have at least a class C energy performance certificate. Alternatively, the building must be within the top 30 per cent of the national or regional building stock expressed as operational primary energy demand (PED) and demonstrated by adequate evidence.

Method for determining the top 15 and 30 per cent of the buildings in Poland:

Data from the central register of the energy performance of buildings was used to determine the primary energy consumption of buildings. The central register of the total energy efficiency of buildings contains a list of the energy performance certificates that have been issued for buildings in Poland since 2015.

{45}------------------------------------------------

46

In addition, the Polish Ministry of Economic Development and Technology published information on the energy efficiency of buildings in connection with the provisions of Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council.

The climate change mitigation criterion to be assessed (top 15 per cent) can be deemed to be met by residential buildings with a primary energy demand of less than 76.59 kWh/square metre (per year) and non-residential buildings with a primary energy demand of less than 118.26 kWh/square metre (per year).

The climate change adaptation criterion to be assessed (top 30 per cent) can be deemed to be met by residential buildings with a primary energy demand of less than 84.91 kWh/square metre (per year) and non-residential buildings with a primary energy demand of less than 155.00 kWh/square metre (per year). This was supported with corresponding evidence, i.e. via comparison with data from the energy performance certificate.

In addition, the expert conducted a climate risk assessment screening for developed properties in line with the do no significant harm (DNSH) criterion and identified heat stress as a potential risk. The properties that qualified as Taxonomy-aligned meet the DNSH criteria.

Buildings in Russia were assessed in line with the requirements in Poland.

#### Buildings under construction:

For real estate projects that were under construction in the prior year, the expert assessed whether they were being built in a Taxonomy-aligned manner or whether adaptations were necessary. The Group strives to ensure Taxonomy alignment for new construction projects. When the buildings are still under construction, some of the requirements for new buildings such as the energy performance certificate, air tests, risk mitigation, and so forth are not yet available. Since the given building has no energy use history, no assessment can be conducted regarding whether it is operated efficiently. The electricity consumption can only be estimated on the basis of the planning.

To this end, the expert applied the following methodology:

The primary energy demand, which defines the total energy efficiency of the building, is at least 10 per cent below the threshold that was defined in the requirements for nearly zero-energy buildings (NZEB) in the national plans for the implementation of Directive 2010/31/EU.

The expert also conducted a climate risk assessment screening for buildings under construction in line with the DNSH criterion and identified heat stress as a potential risk. The properties that qualified as Taxonomy-aligned meet the DNSH criteria.

|                                      | Certificate                                          | Taxonomy-eligible                   | Taxonomy-aligned | Taxonomy-non-eligible |
|--------------------------------------|------------------------------------------------------|-------------------------------------|------------------|-----------------------|
| HOTELS                               |                                                      |                                     |                  |                       |
| greet hotel, Darmstadt               |                                                      |                                     |                  |                       |
| Airportcity Plaza, St. Petersburg    |                                                      |                                     |                  |                       |
| OFFICES                              |                                                      |                                     |                  |                       |
| Mogilska 41 Office, Krakow           | WELL Health-Safety Rating                            | L68 Real estate activities          |                  |                       |
| Mogilska 43 Office, Krakow           | BREEAM In-Use – Excellent, WELL Health-Safety Rating | L68 Real estate activities          |                  |                       |
| Ogrodowa Office, Łódź                | BREEAM In-Use – Excellent, WELL Health-Safety Rating | L68 Real estate activities          |                  |                       |
| Red Tower, Łódź                      |                                                      | L68 Real estate activities          |                  |                       |
| Mogilska 35, Krakow                  | BREEAM In-Use – Excellent                            | L68 Real estate activities          |                  |                       |
| Erzsébet, Budapest                   |                                                      | L68 Real estate activities          |                  |                       |
| Zeppelin, St. Petersburg             | LEED Gold                                            | L68 Real estate activities          |                  |                       |
| Jupiter, St. Petersburg              | Clever – Silver                                      | L68 Real estate activities          |                  |                       |
| Avior Tower, St. Petersburg          | Clever – Gold                                        | L68 Real estate activities          |                  |                       |
| Airport City Carpark, St. Petersburg |                                                      | L68 Real estate activities          |                  |                       |
|                                      |                                                      |                                     |                  |                       |
| DEVELOPMENT PROJECTS                 |                                                      |                                     |                  |                       |
| Others                               |                                                      | L41<br>Construction<br>of buildings |                  |                       |

{46}------------------------------------------------

## Key performance indicators on Taxonomy-aligned economic activities

#### Key performance indicator for turnover (turnover KPI)

This key performance indicator expresses the percentage of turnover generated from Taxonomy-aligned economic activities.

The numerator reflects the portion of turnover contained in the denominator that is generated from Taxonomy-aligned economic activities.

The denominator corresponds to the turnover according to IFRS 15 and IFRS 16 generated during the reporting period.

|                                                    |                | 2022   | 2023   |
|----------------------------------------------------|----------------|--------|--------|
| Turnover                                           |                |        |        |
| Turnover (denominator of the KPI)                  | In EUR<br>'000 | 54,548 | 49,685 |
| thereof Taxonomy-aligned<br>(numerator of the KPI) | In EUR<br>'000 | 6,511  | 7,531  |
|                                                    | %              | 12%    | 15%    |

As in the prior year, the Taxonomy-aligned turnover stems from two office properties and increased slightly due to a higher occupancy rate. Starting in 2024, a higher share of Taxonomy-aligned turnover is to be expected from the letting of Mogilska 35 Office, which was completed at the end of 2023.

## Key performance indicator for investment expenses (CapEx KPI)

This key performance indicator expresses the percentage of investments made in Taxonomy-aligned economic activities.

The numerator reflects the portion of investments contained in the denominator that are made for Taxonomy-aligned economic activities.

The denominator corresponds to the intangible (IAS 38) and tangible assets, which in the Group comprise additions to property, plant, and equipment (IAS 16), investment properties (IAS 40) including additions to rights of use (IFRS 16), and, if applicable, additions from business combinations (IFRS 3).

| CapEx                                           |             | 2022   | 2023   |
|-------------------------------------------------|-------------|--------|--------|
| Additions (denominator of the KPI)              | In EUR '000 | 22,039 | 16,134 |
| thereof Taxonomy-aligned (numerator of the KPI) | In EUR '000 | 7,733  | 11,865 |
|                                                 | %           | 35%    | 74%    |

In the financial year, the CapEx additions primarily pertained to the completion of the Taxonomy-aligned Mogilska 35 Office, whereas the figure also included the construction of the not Taxonomy-aligned Avior Tower and others in the prior year.

No CapEx plan pursuant to Annex I of the Delegated Regulation was prepared during the reporting period.

#### Key performance indicator for operating expenses (OpEx KPI)

This key performance indicator expresses the percentage of operating expenses incurred for Taxonomy-aligned economic activities.

The numerator reflects the portion of expenses contained in the denominator that are incurred for Taxonomy-aligned economic activities.

Contrary to turnover and investments (CapEx), the denominator for the operating expenses cannot be directly correlated to the corresponding items in the consolidated financial statements because according to Commission Delegated Regulation (EU) 2021/2178 of 6 June 2021, only certain operating expenses are permitted to be used for reporting purposes as defined by the EU Taxonomy Regulation.

The denominator includes direct, non-capitalised costs related to research and development, building renovation measures, short-term leasing, maintenance, and repairs as well as all other directly attributable costs that are relevant for the ongoing maintenance and preservation of the functionality of fixed assets.

| OpEx                                               |                | 2022 | 2023  |
|----------------------------------------------------|----------------|------|-------|
| Operating expenses<br>(denominator of the KPI)     | In EUR<br>'000 | 831  | 1,057 |
| thereof Taxonomy-aligned<br>(numerator of the KPI) | In EUR<br>'000 | 99   | 153   |
|                                                    | %              | 12%  | 14%   |

Because the definition of OpEx according to the EU Taxonomy is very narrow, this KPI is of lesser significance for the Group.

{47}------------------------------------------------

|                                                                                                                         |             |                 |                                                | Substantial contribution criteria      |                                        |              |
|-------------------------------------------------------------------------------------------------------------------------|-------------|-----------------|------------------------------------------------|----------------------------------------|----------------------------------------|--------------|
| TURNOVER<br>Economic Activities                                                                                         | Code<br>(2) | Turnover<br>(3) | Proportion<br>of Turnover,<br>year 2023<br>(4) | Climate<br>Change<br>Mitigation<br>(5) | Climate<br>Change<br>Adaptation<br>(6) | Water<br>(7) |
|                                                                                                                         |             | in EUR '000     | %                                              | Y;N; N/EL                              | Y;N; N/EL                              | Y;N; N/EL    |
| A. Taxonomy-eligible activities+D7                                                                                      |             |                 |                                                |                                        |                                        |              |
| A.1 Environmentally sustainable activities (Taxonomy-aligned)                                                           |             |                 |                                                |                                        |                                        |              |
| Acquisition and ownership of buildings                                                                                  | CCA 7.7     | 7,531           | 15%                                            | N                                      | Y                                      | N/EL         |
| Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)                                             |             | 7,531           | 15%                                            |                                        | 12%                                    |              |
| Of which enabling                                                                                                       |             |                 |                                                |                                        |                                        |              |
| Of which transitional                                                                                                   |             |                 |                                                |                                        |                                        |              |
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)                  |             |                 |                                                | Y;N; N/EL                              | Y;N; N/EL                              | Y;N; N/EL    |
| Acquisition and ownership of buildings                                                                                  | CCA 7.7     | 29,394          | 59%                                            | EL                                     | EL                                     | N/EL         |
| Turnover of Taxonomy-eligible but not environmentally sustainable<br>activities (not Taxonomy-aligned activities) (A.2) |             | 29,394          | 59%                                            |                                        |                                        |              |
| A. Turnover of Taxonomy-eligible activities (A.1 + A.2)                                                                 |             | 36,925          | 74%                                            |                                        |                                        |              |
|                                                                                                                         |             |                 |                                                |                                        |                                        |              |
| B. Taxonomy-non-eligible activities                                                                                     |             |                 |                                                |                                        |                                        |              |
| Turnover of Taxonomy-non-eligible activities                                                                            |             | 12,760          | 26%                                            |                                        |                                        |              |
| Total                                                                                                                   |             | 49,685          | 100%                                           |                                        |                                        |              |

| CapEx<br>Economic activities                                                                                         |  | Code<br>(2) | CapEx<br>(3) | Proportion<br>of CapEx,<br>year 2023<br>(4) | Substantial contribution criteria      |                                        |              |
|----------------------------------------------------------------------------------------------------------------------|--|-------------|--------------|---------------------------------------------|----------------------------------------|----------------------------------------|--------------|
|                                                                                                                      |  |             | in EUR '000  | %                                           | Climate<br>Change<br>Mitigation<br>(5) | Climate<br>Change<br>Adaptation<br>(6) | Water<br>(7) |
| A. Taxonomy-eligible activities                                                                                      |  |             |              |                                             |                                        |                                        |              |
| A.1 Environmentally sustainable activities (Taxonomy-aligned)                                                        |  |             |              |                                             |                                        |                                        |              |
| Acquisition and ownership of buildings                                                                               |  | CCA 7.7     | 657          | 4%                                          | N                                      | Y                                      | N/EL         |
| Construction of new buildings                                                                                        |  | CCA 7.7     | 11,208       | 69%                                         | N                                      | Y                                      | N/EL         |
| CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)                                             |  |             | 11,865       | 74%                                         |                                        |                                        |              |
| Of which enabling                                                                                                    |  |             |              |                                             |                                        |                                        |              |
| Of which transitional                                                                                                |  |             |              |                                             |                                        |                                        |              |
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)               |  |             |              |                                             | Y;N; N/EL                              | Y;N; N/EL                              | Y;N; N/EL    |
| Acquisition and ownership of buildings                                                                               |  | CCA 7.7     | 1,268        | 8%                                          | EL                                     | EL                                     | N/EL         |
| Construction of new buildings                                                                                        |  | CCA 7.7     | 1,253        | 8%                                          | EL                                     | EL                                     | N/EL         |
| CapEx of Taxonomy-eligible but not environmentally sustainable activities<br>(not Taxonomy-aligned activities) (A.2) |  |             | 2,521        | 16%                                         |                                        |                                        |              |
| A. CapEx of Taxonomy-eligible activities (A.1 + A.2)                                                                 |  |             | 14,386       | 89%                                         |                                        |                                        |              |
|                                                                                                                      |  |             |              |                                             |                                        |                                        |              |
| B. Taxonomy-non-eligible activities                                                                                  |  |             |              |                                             |                                        |                                        |              |
| CapEx of Taxonomy-non-eligible activities                                                                            |  |             | 1,748        | 11%                                         |                                        |                                        |              |
| Total                                                                                                                |  |             | 16,134       | 100%                                        |                                        |                                        |              |

| Code<br>(2) | OpEx<br>(3)  | Proportion of<br>OpEx, year<br>2023<br>(4) | Substantial contribution criteria      |                                        |              |
|-------------|--------------|--------------------------------------------|----------------------------------------|----------------------------------------|--------------|
|             |              |                                            | Climate<br>Change<br>Mitigation<br>(5) | Climate<br>Change<br>Adaptation<br>(6) | Water<br>(7) |
|             | in EUR '000  | %                                          | Y;N; N/EL                              | Y;N; N/EL                              | Y;N; N/EL    |
| CCA 7.7     | 153          | 14%                                        | N                                      | Y                                      | N/EL         |
|             | <b>153</b>   | <b>14%</b>                                 |                                        | 12%                                    |              |
| CCA 7.7     | 642          | 61%                                        | EL                                     | EL                                     | N/EL         |
|             | <b>642</b>   | <b>61%</b>                                 |                                        |                                        |              |
|             | <b>795</b>   | <b>75%</b>                                 |                                        |                                        |              |
|             | <b>262</b>   | <b>25%</b>                                 |                                        |                                        |              |
|             | <b>1,057</b> | <b>100%</b>                                |                                        |                                        |              |

{48}------------------------------------------------

| DNSH criteria ("Does Not Significantly Harm") |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                   |                                          |  |
|-----------------------------------------------|----------------------------|----------------------|-----------------------------------------|-----------------------------------------|---------------|-------------------|-----------------------------|----------------------|-------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------|--|
| Pollution<br>(8)                              | Circular<br>Economy<br>(9) | Biodiversity<br>(10) | Climate<br>Change<br>Mitigation<br>(11) | Climate<br>Change<br>Adaptation<br>(12) | Water<br>(13) | Pollution<br>(14) | Circular<br>Economy<br>(15) | Biodiversity<br>(16) | Minimum<br>Safeguards<br>(17) | Proportion of<br>Taxonomy-aligned<br>(A.1.) or -eligible<br>(A.2.) turnover,<br>year 2022<br>(18) | Category<br>enabling<br>activity<br>(19) |  |
| Y;N; N/EL                                     | Y;N; N/EL                  | Y;N; N/EL            | Y/N                                     | Y/N                                     | Y/N           | Y/N               | Y/N                         | Y/N                  | Y/N                           | %                                                                                                 | E                                        |  |
| N/EL                                          | N/EL                       | N/EL                 | Y                                       | Y                                       | Y             | Y                 | Y                           | Y                    | Y                             | 12%                                                                                               |                                          |  |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 12%                                                                                               |                                          |  |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                   | E                                        |  |
| Y;N; N/EL                                     | Y;N; N/EL                  | Y;N; N/EL            |                                         |                                         |               |                   |                             |                      |                               | 49%                                                                                               |                                          |  |
| N/EL                                          | N/EL                       | N/EL                 |                                         |                                         |               |                   |                             |                      |                               | 49%                                                                                               |                                          |  |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 61%                                                                                               |                                          |  |

B. Taxonomy-non-eligible activities

B. Taxonomy-non-eligible activities

B. Taxonomy-non-eligible activities

Turnover of Taxonomy-non-eligible activities 12,760 26% Total 49,685 100%

CapEx of Taxonomy-non-eligible activities 1,748 11% Total 16,134 100%

OpEx of Taxonomy-non-eligible activities 262 25% Total 1,057 100%

| DNSH criteria ("Does Not Significantly Harm") |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                |                                          |                                              |
|-----------------------------------------------|----------------------------|----------------------|-----------------------------------------|-----------------------------------------|---------------|-------------------|-----------------------------|----------------------|-------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------|----------------------------------------------|
| Pollution<br>(8)                              | Circular<br>Economy<br>(9) | Biodiversity<br>(10) | Climate<br>Change<br>Mitigation<br>(11) | Climate<br>Change<br>Adaptation<br>(12) | Water<br>(13) | Pollution<br>(14) | Circular<br>Economy<br>(15) | Biodiversity<br>(16) | Minimum<br>Safeguards<br>(17) | Proportion of<br>Taxonomy-aligned<br>(A.1.) or -eligible<br>(A.2.) CapEx,<br>year 2022<br>(18) | Category<br>enabling<br>activity<br>(19) | Category<br>transitional<br>activity<br>(20) |
| Y;N; N/EL                                     | Y;N; N/EL                  | Y;N; N/EL            | Y/N                                     | Y/N                                     | Y/N           | Y/N               | Y/N                         | Y/N                  | Y/N                           | %                                                                                              | E                                        |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                |                                          |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                |                                          |                                              |
| N/EL                                          | N/EL                       | N/EL                 | Y                                       | Y                                       | Y             | Y                 | Y                           | Y                    | Y                             | 8%                                                                                             |                                          |                                              |
| N/EL                                          | N                          | N/EL                 | Y                                       | Y                                       | Y             | Y                 | Y                           | Y                    | Y                             | 27%                                                                                            |                                          |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 35%                                                                                            |                                          |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                | E                                        |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                |                                          |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                                |                                          |                                              |
| Y;N; N/EL                                     | Y;N; N/EL                  | Y;N; N/EL            |                                         |                                         |               |                   |                             |                      |                               | 24%                                                                                            |                                          |                                              |
| N/EL                                          | N/EL                       | N/EL                 |                                         |                                         |               |                   |                             |                      |                               | 37%                                                                                            |                                          |                                              |
| N/EL                                          | N                          | N/EL                 |                                         |                                         |               |                   |                             |                      |                               | 61%                                                                                            |                                          |                                              |
|                                               |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 96%                                                                                            |                                          |                                              |

| Pollution<br>(8) | Circular<br>Economy<br>(9) | Biodiversity<br>(10) | Climate<br>Change<br>Mitigation<br>(11) | Climate<br>Change<br>Adaptation<br>(12) | Water<br>(13) | Pollution<br>(14) | Circular<br>Economy<br>(15) | Biodiversity<br>(16) | Minimum<br>Safeguards<br>(17) | Proportion of<br>Taxonomy-aligned<br>(A.1.) or -eligible<br>(A.2.) OpEx, year 2022<br>(18) | Category<br>enabling<br>activity<br>(19) | Category<br>transitional<br>activity<br>(20) |
|------------------|----------------------------|----------------------|-----------------------------------------|-----------------------------------------|---------------|-------------------|-----------------------------|----------------------|-------------------------------|--------------------------------------------------------------------------------------------|------------------------------------------|----------------------------------------------|
| Y;N; N/EL        | Y;N; N/EL                  | Y;N; N/EL            | Y/N                                     | Y/N                                     | Y/N           | Y/N               | Y/N                         | Y/N                  | Y/N                           | %                                                                                          | E                                        |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                            |                                          |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                            |                                          |                                              |
| N/EL             | N/EL                       | N/EL                 | Y                                       | Y                                       | Y             | Y                 | Y                           | Y                    | Y                             | 14%                                                                                        |                                          |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 14%                                                                                        |                                          |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                            | E                                        |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               |                                                                                            |                                          |                                              |
| Y;N; N/EL        | Y;N; N/EL                  | Y;N; N/EL            |                                         |                                         |               |                   |                             |                      |                               |                                                                                            |                                          |                                              |
| N/EL             | N/EL                       | N/EL                 |                                         |                                         |               |                   |                             |                      |                               | 54%                                                                                        |                                          |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 54%                                                                                        |                                          |                                              |
|                  |                            |                      |                                         |                                         |               |                   |                             |                      |                               | 68%                                                                                        |                                          |                                              |

{49}------------------------------------------------

## Materiality and stakeholders

The following sustainability report (prepared in accordance with the requirements of the Austrian Sustainability and Diversity Improvement Act [Nachhaltigkeits- und Diversitätsverbesserungsgesetz, NaDiVeG]) is addressed to all stakeholders as well as everyone else who is interested in Warimpex's ecological, social, and economic performance.

Sustainable development is a multifaceted process that is influenced by many different issues in the areas of the economy, the environment, and society. The potential impact of business activities on these areas of life is determined by a company's core business, industry, and business environment.

## Process description and strategic integration

A comprehensive materiality analysis forms the basis for the reporting. The potential material topics for the Warimpex Group were identified and prioritised in a multi-stage process. The topics were analysed with regard to their impact on people and the environment as well as with regard to their importance for the following key stakeholders: investors, shareholders, analysts, banks, employees, suppliers, service providers, tenants, neighbours, peer companies, the media, policymakers, public authorities, and hotel guests. The topics that were deemed to be material can be assigned to the following categories:

- Environment and energy
- Sustainable corporate culture (ethics and compliance)
- Social responsibility
- Employees
- Human rights

{50}------------------------------------------------

In the following, Warimpex reports on activities and measures related to the issues deemed to be material, which are described in the overview below:

| Topic                                                                     | Description                                                                                                                                                                                                                                                                                                                                                             | Issue according<br>to NaDiVeG        |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
| Energy efficiency of buildings                                            | Thermal quality of buildings, energy-efficient technical<br>building systems, appliances, etc. support the energy<br>efficiency of buildings (heating, cooling, electricity<br>consumption)                                                                                                                                                                             | Environmental issue                  |
| Re-use and urban mining/environmental<br>management on construction sites | Use of renewable resources as well as materials that are<br>manufactured in an environmentally friendly manner<br>and are regionally sourced, contaminant-free,<br>multifunctional, and recyclable<br>Noise and dust prevention, exclusion of brownfield<br>sites, effective waste management, safe handling and<br>storage of chemicals, and short transport distances | Environmental issue                  |
| Sustainable mobility                                                      | Offering of and incentives to use environmentally<br>friendly means of transport such as connections to<br>public transport networks, pedestrian and bike path<br>networks, provision of infrastructure for bicycles,<br>e-mobility, and car and bike sharing                                                                                                           | Environmental issue                  |
| Corporate governance,<br>compliance, and anti-corruption                  | Compliance with legal requirements (employment law,<br>competition law, data protection, etc.), clear contract<br>awarding processes, proper legal relationships with<br>contractors                                                                                                                                                                                    | Combatting corruption<br>and bribery |
| Barrier-free access and occupant safety                                   | Technical components (such as fire protection<br>measures, escape routes, alarms for dangerous<br>situations, or evacuation),<br>structural components (such as signage, lighting, video<br>surveillance, or concierge services)<br>Compliance with all legal regulations and requirements<br>and regular monitoring of this compliance                                 | Social issue                         |
| Employee satisfaction                                                     | Motivation and satisfaction of the team is strengthened<br>and maintained at a high level                                                                                                                                                                                                                                                                               | Employee issue                       |
| Diversity and equal opportunity                                           | Diverse team structure with regard to age, gender,<br>background, working model, etc.                                                                                                                                                                                                                                                                                   | Employee issue                       |
| Work-life balance                                                         | Different work schedule models, flexible time<br>management                                                                                                                                                                                                                                                                                                             | Employee issue                       |
| Respect for human rights                                                  | Deep-rooted part of the corporate culture that is put<br>into practice internally and externally                                                                                                                                                                                                                                                                        | Respect for human rights             |
| Open space design and district climate                                    | Prevention of urban heat islands (e.g. through light<br>coloured surfaces, providing green areas, water areas,<br>optimised air circulation in districts)<br>Designing open spaces with near-natural conditions<br>(creation of habitats for native plants and animals)                                                                                                 | Environmental issue                  |
| Healthy indoor climate<br>and quality of interior space                   | Thermal comfort in winter and summer, visual comfort,<br>sufficient ventilation, prevention of pollutants<br>(formaldehyde, volatile organic compounds, and fine<br>dust), acoustic comfort                                                                                                                                                                             | Employee issue                       |
| Renewable energy                                                          | Use of green electricity, photovoltaics                                                                                                                                                                                                                                                                                                                                 | Environmental issue                  |

{51}------------------------------------------------

Image /page/51/Figure/1 description: The image is a materiality matrix for Warimpex. The matrix is a 2x2 grid, with the x-axis representing the impact on people and the environment, and the y-axis representing the importance to stakeholders and financial impact. The matrix is divided into nine sections on each axis. Several sustainability topics are plotted on the matrix, including employee satisfaction, diversity and equal opportunity, occupational health and safety, education, training, and knowledge management, separation of waste by occupants, adaptable buildings, wildlife conservation and brownfield sites, purchase of existing properties, water supply in planning and construction, ecological construction materials for new construction, expansion, and renovation, safety on construction sites, commitment to cultural, social, and ecological initiatives, environmental management and safety on construction sites/re-use and urban mining, barrier-free access and occupant safety in planning and operations, architecture and art/protection of historic monuments in the planning of new construction, expansions, and renovations, renewable energy, work-life balance/flexible work conditions, respect for human rights, energy efficiency of buildings, sustainable mobility, compliance and anti-corruption, open space design and district climate, corporate governance, healthy indoor climate and quality of interior space, and energy efficiency and carbon reduction in the portfolio. The categories are environment and energy and sustainable corporate culture (ethics and compliance).

Employees

Employees Social responsibility

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## NON-FINANCIAL RISKS

| Issue                                   | Sustainability topic                                                            | - Risks<br>+ Opportunities                                                                                                                                                                                                                 | Description of the risk                                                                                                                                       | Mitigation measures                                                                                     |
|-----------------------------------------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| Environmental issue                     | Energy efficiency of<br>buildings                                               | - High operating costs<br>- Risk of non-implementation<br>+ Low operating costs for<br>tenants, contribution to<br>making Europe climate<br>neutral by 2050                                                                                | Limitations in construction due<br>to a lack of funds or insufficient<br>resources                                                                            | Certification of all developed<br>properties over the medium<br>term, certification of new<br>buildings |
| Environmental issue                     | Re-use and urban<br>mining/environmental<br>management on<br>construction sites | - Risk of material waste<br>+ Potential for cost savings                                                                                                                                                                                   | Re-use of existing materials                                                                                                                                  | Consideration in project concept                                                                        |
| Environmental issue                     | Sustainable mobility                                                            | - Risk of a lack of infrastructure<br>+ Potential for the use of<br>environmentally friendly<br>means of transport                                                                                                                         | Lack of charging stations, bike<br>parking spaces, no access to<br>public transport                                                                           | Consideration in project concept                                                                        |
| Combatting<br>corruption and<br>bribery | Corporate governance,<br>compliance, and<br>anti-corruption                     | - Risk of a lack of knowledge<br>+ Opportunity due to training                                                                                                                                                                             | Lack of awareness with regard to<br>bribery and corruption                                                                                                    | Training, compliance with<br>Code of Conduct                                                            |
| Social issue                            | Barrier-free access and<br>occupant safety                                      | - Risk due to solutions that are<br>not user-friendly<br>+ Opportunity due to improved<br>accessibility                                                                                                                                    | Compliance with legal<br>requirements                                                                                                                         | Review of legal requirements for<br>projects and usability                                              |
| Employee issue                          | Employee satisfaction                                                           | - Risk due to loss of skilled<br>personnel<br>+ Opportunities for higher<br>employee satisfaction                                                                                                                                          | Creation of a positive working<br>climate                                                                                                                     | Employee reviews, office<br>facilities and equipment are up<br>to date                                  |
| Employee issue                          | Diversity and equal<br>opportunity                                              | - Risk due to discrimination<br>+ Opportunities due to openness                                                                                                                                                                            | Expertise and diversity                                                                                                                                       | Promotion of diversity                                                                                  |
| Employee issue                          | Work-life balance                                                               | - Risk due to loss of employees<br>+ Opportunities for innovations                                                                                                                                                                         | Burnout prevention                                                                                                                                            | Training, consumption of<br>holiday leave, balanced<br>assignment of work                               |
| Respect for<br>human rights             | Respect for<br>human rights                                                     | - Risk of human rights violations                                                                                                                                                                                                          | Diversity and equal opportunity<br>in the workplace                                                                                                           | Principles apply equally to hiring,<br>opportunities for promotion, and<br>remuneration policies        |
| Environmental issue                     | Open space design and<br>district climate                                       | - Risk of contributing to<br>overheating in summer and<br>soil sealing, reduction of quality<br>of life of occupants and<br>neighbours<br>+ Potential for high-quality<br>public spaces outside of the<br>building                         | Effect of the building on the<br>microclimate of the district,<br>water retention, people-friendly<br>environment                                             | Consideration in project concept                                                                        |
| Employee issue                          | Healthy indoor climate<br>and quality of interior<br>space                      | - Risk of "sick building<br>syndrome" – negative health<br>impact from indoor emissions,<br>reduced productivity of<br>occupants<br>+ Opportunities to ensure<br>well-being of occupants, boost<br>productivity of employees in<br>offices | Thermal comfort, sufficient<br>lighting, selection of sustainable<br>materials for interior design                                                            | Consideration in project concept                                                                        |
| Environmental issue                     | Renewable energy                                                                | - Risk of negative health impacts<br>from non-renewable energy<br>(e.g. fine dust)<br>+ Opportunity to contribute to<br>making Europe climate neutral<br>by 2050                                                                           | Providing building heat via<br>renewable energy sources,<br>generation of own electricity with<br>photovoltaics, green electricity<br>from credible providers | Consideration in project concept                                                                        |

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54

## ENVIRONMENT AND ENERGY

The topics of energy supply, energy consumption, and energy-related technical building systems are extremely important in the construction and real estate industry. The provision of energy in the form of electricity and heat is the basis for comfortable office facilities. At the same time, energy sources and energy consumption have a significant impact on climate change. Warimpex is aware of its energy-related impact on the environment and society and therefore takes great care with regard to ecological and economic requirements in terms of the energy supply and energy consumption and in terms of enhancing and preserving the value of buildings.

Warimpex also confronts the challenges of our time and makes an essential contribution to the lasting reduction of emissions by planning projects on a long-term basis. Building energy-efficient buildings is a matter of course for us because the operating costs of these buildings are lower. Warimpex believes that sustainability and cost efficiency are not mutually exclusive.

At the beginning of 2013, Warimpex completed the BREEAM – Good-certified Le Palais Office building in Warsaw. In 2018, the newly opened Ogrodowa Office building in Łódź received a BREEAM – Very Good certification. A rating of BREEAM – Very Good was obtained for the Mogilska 43 office project that was completed in Krakow in 2019. Both properties received BREEAM In-Use – Excellent certification in 2020 following the completion of optimisation measures. In 2021, the existing Zeppelin property in St. Petersburg received LEED – Gold certification.

In general, certifications are planned for all new developments with a minimum standard of LEED – Gold, BREEAM – Excellent, or DGNB – Gold, for example the Mogilska 35 Office property that was completed during the financial year with LEED – Gold certification. Although Warimpex's portfolio does not contain any certified hotel properties at this time, the Company nevertheless attaches considerable importance to high environmental standards for existing and future hotels.

When it comes to new projects, the Company plans to maximise the environmental, social, and economic benefits. For Warimpex, this means that properties retain their value or increase in value over the long term while at the same time offering ecological and social benefits. In this context, measures will also be taken to prevent environmental damage. These principles will be followed not only for new construction projects but also for renovations. The Company developed a control model for internal project controlling aimed at reviewing projects with regard to energy efficiency, flexible floor plans, accessibility, and mobility.

#### Energy efficiency of the portfolio

Warimpex's direct area of influence lies in the energy-related design of new buildings, modernisation measures at existing properties, and energy performance. In addition, the selection of the energy source can have a positive impact on the energy balance of the properties.

However, energy efficiency does not just depend on the building itself. The careful use of energy by the occupants is also a decisive factor and can make a significant contribution to climate protection. However, Warimpex can only influence the individual behaviour of the occupants to a very limited extent. The steering measures in this regard are focused on clear and targeted communication with occupants, such as through notices at the property.

One key task for Warimpex is to create the conditions for low energy consumption at its buildings. This includes the energy-efficient design of new properties as well as the gradual energy-related modernisation of suitable existing properties.

#### Indicators for 2023

The indicators are presented differently for the asset classes of offices and hotels in order to provide a clear picture. For hotels, indicators are reported on a per-room basis in order to improve comparability. In contrast, the energy consumption figures for office properties are based on the square metres of lettable space.

The indicators were collected for the first time in 2017 and thus form the basis for the ongoing monitoring of energy consumption. Warimpex aims to improve these indicators on an ongoing basis and take them into consideration in the planning of new projects.

Particular emphasis was placed on energy-efficient and environmentally friendly design for the two newest office buildings in Poland: A green wall was built at the Mogilska 43 Office project in Krakow, and a green roof was implemented for the Ogrodowa project in Łódź. These measures not only contribute to the occupants' well-being, but also play a decisive role in environmental and climate protection. The energy consumption for cooling is reduced and the burden on the sewer system is minimised by the water retention. At the same time, these measures help to counteract urban heating and the formation of heat islands.

The Company ensures the energy-efficient operation of its own hotels by planning the occupancy of the rooms so that vacant rooms or floors do not have to be fully heated. Care is taken in the initial planning of the projects to ensure that hotel areas can be supplied with energy individually and a major contribution can be made to reducing heating demand.

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Image /page/54/Figure/1 description: The image contains a blue rectangle with the text "mption (electricity" written in white.

Image /page/54/Figure/2 description: This image is a bar chart that shows the specific energy consumption (electricity and heating demand) per room in hotels. It also includes specific CO2 emissions per energy source (district heating, electricity, natural gas) per room. The chart shows the energy consumption for the years 2021, 2022, and 2023. For electricity in kWH/room, the values are 9,790.1 in 2021, 10,630.5 in 2022, and 11,421.5 in 2023. For heating demand in MJ/room, the values are 12,913.4 in 2021, 13,335.0 in 2022, and 12,820.8 in 2023.

Image /page/54/Figure/3 description: The image shows a bar chart titled "Composition of the energy consumption as % of total heat consumption (hotels)". The chart shows the percentage of energy consumption from natural gas and district heating for the years 2021, 2022, and 2023. In 2021, natural gas accounted for 43.12% of energy consumption, while district heating accounted for 56.88%. In 2022, natural gas accounted for 44.36% of energy consumption, while district heating accounted for 55.46%. In 2023, natural gas accounted for 47.11% of energy consumption, while district heating accounted for 52.89%.

## Composition of the energy consumption as % of total heat consumption (offices) Specific energy consumption (electricity and heating demand) per m2 (offices) including specific CO2 emissions per energy source (district heating, electricity, natural gas) per m2 220 200 180 160 140 120 100 80 60 40 <sup>20</sup> <sup>2021</sup> <sup>2022</sup> <sup>2023</sup> <sup>2021</sup> <sup>2022</sup> <sup>2021</sup> <sup>2022</sup> <sup>2023</sup> <sup>2021</sup> <sup>2022</sup> <sup>2023</sup> 213.8 138 191.8 56.5 93.2 92.3 2022 60.93% 26.56% 12.51% 2021 58.02% 23.75% 18.23% Electricity in kWH/room Heating demand in MJ/room Electricity in kWH/m² Heating demand in GJ/m²

## Environmental management and safety on construction sites/re-use and urban mining

At construction sites, the Company does everything in its power to prevent noise and dust, to clean up brownfield sites, and to ensure effective waste management for building demolitions. The efficient separation of secondary raw materials is facilitated by working with companies that provide separation with as little mixing of materials as possible. It is important to Warimpex to maintain good relations and optimal communication with all stakeholders. One notable example in this context is the fact that the heating system of the direct neighbours of the Mogilska 43 Office construction site was converted to a district heat connection. In addition, vouchers for professional car washes were handed out to neighbours during the demolition work at this construction site. Warimpex plans to continue preventing complaints and lawsuits through good communication with neighbours.

All legal requirements are complied with in the Company's construction activities, and there have been no official complaints or fatal workplace accidents to date. Warimpex receives monthly reports from the general contractors containing updates on the progress of projects and, if applicable, information about violations of safety requirements and accidents on construction sites. Warimpex has set a clear goal to continue to avoid legal complaints and major violations of safety requirements at construction sites. In addition, the monthly reports from the general contractors for future projects will be expanded to include information about workplace accidents and official complaints related to occupational safety, environmental issues, and other legal issues.

2023 58.46% 28.12% 13.42%

 Natural gas District heating Electricity

The rehabilitation of old buildings is prioritised whenever possible in order to save resources, costs, and time. Construction activities are always resource-intensive. The intense use of raw materials contributes to the waste of resources and thus represents a risk to the environment. This risk is minimised by ensuring the optimal continued use of existing buildings in projects. For example, an old office building in Munich was converted into a hotel and an old office building that was built in Budapest in the 1960s was gutted and refurbished into an office building that meets today's requirements.

In 2023, there was yet again a rehabilitation project: The Red Tower office building that was acquired in Łódź (built in 1978) is being renovated on an ongoing basis and will be repositioned on the market.

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#### Sustainable mobility

Mobility involves a number of current and future challenges pertaining to climate change, particularly in urban areas. This includes the risk of local air pollution due to emissions from automobile traffic in the form of nitrogen oxide as well as energy consumption.

Due to the rising demand for charging stations for electric vehicles, there is a risk that it will not be possible to provide a sufficient number of EV charging stations for the occupants of buildings. Forward-looking, intelligent mobility and traffic concepts are viable solutions in this context, including the increased use of public transport and car-sharing programmes as well as the further electrification of mobility in urban areas. In order to meet these requirements, it is important to account for a sufficient number of charging stations with a suitable charging capacity and charging connection in the initial planning stages and to observe and evaluate various concepts in order to determine which ones should be implemented at a site to optimally meet the demand.

E-mobility in particular represents an essential and ground-breaking topic. In this context, the future need for parking spaces with electric charging points or cable conduits for later retrofitting efforts at the building already have to be taken into consideration in the design and planning phase – generally around three years before completion. Among Warimpex's existing properties, Ogrodowa Office and Mogilska 43 Office currently offer EV charging stations, and EV charging stations are also planned for new projects. A total of 60 bike parking spaces were built at Mogilska 43 (which corresponds to 0.4 parking spaces per 100 square metres of office space). The building also offers showers and changing rooms in order to make it more appealing for employees to bike to the office. Ogrodowa Office in Łódź has 150 bike parking spaces (which corresponds to 0.5 parking spaces per 100 square metres of office space) as well as showers and changing rooms in the office facilities.

The majority of the Warimpex Group's properties are in central locations in primary and secondary cities. Good transport connections for the users of the building (employees and customers) are an important factor for all of the projects. Hotels and office properties have to be easy to get to – both with public transport such as buses or trains as well as with cars and coaches. Public transport stations are generally located within a radius of 200 metres, and a connection to the airport must be available.

In the future, it will become increasingly important to offer optimal connections to the public transport network in a city because significant restrictions on private transport such as carfree zones or parking restrictions are to be expected. It is also crucial to promote sustainable mobility (electric vehicles, car sharing, etc.) because property users will see these offerings as decisive factors. In order to optimally address these developments, Warimpex has set itself the goal of taking sustainable mobility into consideration as a criterion for future projects.

#### In-house environmental management

|                             | in t CO |      |      |      |      |      |      |
|-----------------------------|---------|------|------|------|------|------|------|
|                             | 2023    | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
| Flights                     | 46      | 20   | 37   | 46   | 129  | 113  | 123  |
| Kilometres<br>driven by car | 12      | 19   | 19   | 22   | 29   | 32   | 64   |

*Note: This table only applies to employees of Warimpex Finanz- und Beteiligungs AG*

The volume of carbon dioxide emissions caused by travel activities in 2023 increased compared with the prior year. The reduction versus the base year of 2017 amounts to 69 per cent. This reduction is the result of a decline in travel due to changes in employees' travel behaviour.

## The goal is to remain below 50 t CO2.

Warimpex's employees have a high level of travel because nearly all of the Company's projects are located outside of Austria. This impacts the environment through increased emissions and represents a danger to employee safety due to the increased risk of car accidents. Travel planning is the responsibility of the relevant project team, but reducing travel to an absolute minimum is a basic principle at Warimpex. Efforts are made in the planning of business travel to combine the travel of individual employees and to form carpools in order to keep travel expenses and the environmental impact as low as possible. Some project sites can be reached by train or plane, while others are more conducive to travelling by car because they are more easily accessible by car or require technical equipment to be taken along. In order to reduce business travel, the use of teleconferences and video conferences is encouraged. The necessary technology required for this is provided by Warimpex.

New developments are evaluated and incorporated into the Company's IT on an ongoing basis in order to ensure the optimal use of new technologies. This enables cross-border collaboration in projects to be simplified and employees' travel to be optimised. Warimpex acquired three electric vehicles for its vehicle fleet as part of a pilot project in order to study usage behaviour and gather valuable information both for future travel and for the charging infrastructure and other requirements for office locations. Along with the ongoing maintenance and modernisation of the vehicle fleet, investments are being made in employee training for business travel in the form of driving courses.

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## SUSTAINABLE CORPORATE CULTURE (ETHICS AND COMPLIANCE)

Around the world, bribery and corruption hinder investment activities and disrupt international competition. In addition, the economic, social, and ecological well-being of society is jeopardised by the diversion of funds through corrupt practices. Companies play an important role in combatting these practices because corruption is damaging not only to democratic institutions but also to proper corporate governance. In addition, some of the countries in which Warimpex does business have poor rankings according to the Corruption Perceptions Index and are thus exposed to a higher risk of corruption.

There are important policies in place within the Group
that define our views on ethics and compliance:

- Code of Conduct (including Anti-Bribery and Corruption Policy)
- ESG guidelines
- Whistleblower system

#### Corporate governance, compliance, and anti-corruption

Therefore, the implementation of effective corporate governance practices represents a significant sustainability topic with regard to fostering a responsible corporate culture.

As a listed company, Warimpex operates in accordance with the rules of the Austrian Code of Corporate Governance (January 2023 version) and the Polish Best Practice for GPW Listed Companies 2021. These codes are voluntary agreements for proper corporate governance and control aimed at achieving responsible value creation focused on sustainability and a long-term vision. These measures ensure that the interests of all stakeholders whose welfare is dependent upon the success of the Company are optimally served and that a high level of transparency is provided.

#### Code of Conduct

The Code of Conduct (CoC) is a summary of the general rules of conduct for Warimpex employees. The CoC has been applied at Warimpex AG since 2013, was extended to all of the fully consolidated companies in 2018, and was recently adapted to the current requirements.

Warimpex's employees are required to obey the law at all times in their business dealings and to clearly reject all forms of bribery or corruption with their own conduct. The CoC documents the Company's interactions with employees, customers, suppliers, and all other stakeholders and provides orientation for day-to-day conduct. The ethical and legal rules and guidelines are specified in the CoC and promote individual responsibility and an open, respectful, and responsible working climate.

Employees receive ongoing training in order to foster an open and honest working climate. As in the prior year, training courses were offered on current topics such as the General Data Protection Regulation in 2023. Training sessions were also held on the Code of Conduct and corruption prevention as well as occupational safety. The various workdays of employees due to different scheduling models and travel are taken into account when planning the dates for training by offering multiple courses on different days so that everyone can participate. In addition, Warimpex strives to offer additional training as needed when it becomes apparent that a certain topic is important at the moment or is requested by the employees.

No cases related to corruption or violations of internal compliance guidelines have been identified to date.

#### Whistleblower System

Since September 2023, Warimpex has been using a portal that allows potential legal violations and violations of the ethical standards (Code of Conduct) to be reported anonymously. This portal is aimed at

- allowing suspected misconduct to be reported anonymously at any time, and
- ensuring that tips are taken seriously, handled confidentially, and processed systematically.

We strive to encourage openness and support anyone who reports concerns in good faith, even if they prove to be unfounded.

No incidents have been reported in the whistleblower system thus far.

{57}------------------------------------------------

## SOCIAL RESPONSIBILITY

## Barrier-free access and occupant safety

## in planning and operations

Barrier-free access is taken into account in accordance with legal requirements in both new construction and in the renovation/refurbishment of existing properties. All offices and hotels offer barrier-free access. The safety of the occupants is ensured through regular monitoring in line with local ordinances (e.g. inspection by the fire department or work inspectors) and at the management level (inspection together with the operators of the relevant property). Our own random inspections ensure the safety of the occupants of our properties and minimise the risk of a violation of the applicable regulations. No significant complaints (e.g. imminent hazards) have been lodged by authorities in relation to safety requirements to date. In acute cases, individual measures are taken to ensure the safety of the occupants at the given property. For example, increased security checks have been performed at the entrances to hotels in response to terrorist attacks in a given destination.

The goal is to prevent complaints by authorities and customers and to meet all legal requirements in order to guarantee the safety of the occupants at all times.

Six of the 294 hotel rooms at the Airportcity Plaza hotel in St. Petersburg are barrier-free, which represents a share of 2 per cent. At the greet hotel in Darmstadt, 2 of 194 hotel rooms are barrier-free (1 per cent).

## EMPLOYEES

#### Employee satisfaction

Warimpex aims to offer opportunities for growth and career advancement, to reward outstanding performance, to promote collaboration at all levels, and to ensure an open corporate culture.

The working world is constantly changing due to more vigorous demands and increasing requirements for flexibility. It is becoming more and more difficult for employees to achieve a balance between their careers, family duties, and private lives. A consistent policy of equal treatment, flexitime work models, and teleworking opportunities represent the pillars of a healthy work-life balance for Warimpex's employees.

Hotels are operated by hotel management companies under management agreements. Therefore, control over personnel matters and the management of the hotel staff are the responsibility of the hotel managers and are not influenced by Warimpex. As such, the following information only pertains to Warimpex's other two segments (Investment Properties and Development and Services).

#### Employees in the Group

As at 31 December 2023, 78 employees worked full or part time in administrative positions at the fully consolidated companies of the Warimpex Group. The following charts show the distribution of the employees according to their regional assignment and their area of responsibility. Overall, roughly 48 per cent of the employees work in the areas of asset and property management.

The duties in asset and property management include the management of the existing properties and development properties by the managers, technicians, and project controllers. The finance segment comprises the Group accounting department and the bookkeeping departments. The support functions provide administrative and organisational assistance to the other two segments.

In order to guard against the risk of losing highly qualified staff members, Warimpex's employees are provided with state-ofthe-art technical equipment to make the work process as smooth and efficient as possible. This is intended to ensure a safe and pleasant work environment for everyone. Employees are also supported through the open and honest corporate culture. Warimpex has flat hierarchies; particular emphasis is placed on fostering a level playing field and respectful collaboration. The Company also takes the individual needs of the employees into consideration by offering various working models such as part-time schedules, teleworking, and other possibilities, and adapting these models as necessary.

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Image /page/58/Figure/1 description: The image shows a donut chart titled "Average fully consolidated employees by segment". The chart is divided into three segments: Hotels (95), Investment Properties (19), and Development & Services (67). The image also includes icons of people with speech bubbles containing a desk chair and a key.

Image /page/58/Figure/2 description: The image is a bar chart titled "Employees by region as at reporting date". The chart shows the number of employees in Austria, Poland, Hungary, and Russia in 2021, 2022, and 2023. In Austria, the number of employees in 2021 is 24, in 2022 is 23, and in 2023 is 22. In Poland, the number of employees in 2021 and 2023 is 30, and in 2022 is 22. In Hungary, the number of employees in 2021, 2022, and 2023 is 1. In Russia, the number of employees in 2021 is 25, in 2022 is 26, and in 2023 is 25.

#### Employee structure by age and gender as at reporting date 2021 2022 2023 Male <30 23 19 19 Male 30–50 10 10 10 Male >50 <sup>9</sup> <sup>8</sup> <sup>8</sup> Female <30 27 25 25 Female 30–50 9 9 9 Female >50 <sup>1</sup> <sup>0</sup> <sup>1</sup>

Image /page/58/Figure/4 description: The image is a bar chart titled "Employees by area of responsibility as at reporting date". The chart shows the number of employees in three different areas of responsibility: Asset and property management, Support functions, and Accounting/controlling/finance. The data is broken down by year, with the years 2021, 2022, and 2023 represented by different colored bars. For Asset and property management, the number of employees in 2021 and 2022 was 29, and in 2023 it was 35. For Support functions, the number of employees in 2021 and 2022 was 27, and in 2023 it was 24. For Accounting/controlling/finance, the number of employees in 2021 was 14, in 2022 it was 16, and in 2023 it was 19.

#### Diversity and equal opportunity

Ensuring equal opportunity between women and men and diversity with regard to the employees' different cultural backgrounds is a key priority for the Company. Diversity is valued at Warimpex. This diversity applies not only to the background of employees from different cultures and countries, but can also be seen in the age structure of the staff. Employees from four countries and with various migration backgrounds work at the Group's headquarters in Vienna. At Warimpex, no one is excluded due to their gender, age, or background. On the contrary: The convergence of different views, opinions, and experiences allows many different aspects to be examined and addressed in projects.

A flat hierarchy also allows goals to be achieved through short communication channels, without having to fight through extraneous bureaucracy. Women and men are given equal opportunities to stay connected to the Company even when they are on parental leave. Invitations to company events are also sent to employees on parental leave, and these employees can continue to use communication devices such as their phones and laptops while on leave. It is also possible to work while on parental leave, and many employees take advantage of this opportunity. When employees return from parental leave, their needs are re-evaluated and individually adapted to suit their circumstances. In cases where it is desired and possible, teleworking and flexible working hours are agreed with employees. All of these measures have proven to be effective in the past and will thus be continued in the future. As a result, the risk of potential discrimination against employees is deemed to be low. Warimpex sees the diversity of its employees as an opportunity and utilises it accordingly.

The share of women in the total workforce was just under 57 per cent as at 31 December 2023 and thus remained stable compared with 2022. Warimpex offers its female and male employees the same opportunities and requirements. What counts are an employee's qualifications and experience in their field, not their nationality or gender. Women and men are provided with the same support – equality is a matter of course at Warimpex and is also reflected in the share of women in the total workforce.

The average age of the employees is roughly 44 years. The Warimpex Group works with an attractive mix of experienced employees and new employees.

Warimpex sees the diversity of its employees as an important factor for success.

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## HUMAN RIGHTS

Respecting human rights is seen as a deep-rooted part of Warimpex's philosophy and is put into practice each and every day. Freedom of expression is anchored in Warimpex's organisational structure because there are no restrictions on communication of any kind apart from the established confidentiality areas. Warimpex also respects and aims to protect everyone's right to freely practise their beliefs. At hotel buildings, for example, the interior design is kept non-religious as far as possible in order to ensure the religious freedom of all users. This is reflected in the selection of the pictures in the rooms and the lack of religious symbols such as crosses.

Respect for human dignity is primarily an important issue when it comes to employee relations. Warimpex is absolutely opposed to all forms of prejudice and discrimination. It is important that all employees are treated equally regardless of their age, gender, sexual orientation or identity, nationality, ethnic background, disability, religion, or world views. The Company actively promotes a culture characterised by respect, openness, trust, and mutual appreciation.

Warimpex is clearly committed to protecting international human rights. The Company supports and respects the protection of human rights within its sphere of influence and ensures that it is not involved in human rights violations. We expect our suppliers and partners to comply with the legal regulations as well. Warimpex assumes that they comply with the applicable laws for the protection of human rights and that violations are appropriately prosecuted by the competent legal authorities in the jurisdiction of the relevant suppliers and partners. We do not see a need or a possibility to take additional internal initiatives in this area. Suppliers and partners also receive goods and services from third parties in some cases. We are not aware of any human rights violations in connection with supply chains to date. We assume that our suppliers and partners take action if they become aware of such issues. Proven violations are punished and can result in the termination of the business relationship with the respective supplier or partner.

#### Social commitment – impact on society and the environment

Warimpex aims to reduce poverty and promote the arts and culture with donations and sponsorship activities. To this end, donations are regularly made to the following organisations: Teach for Austria, Freispiel, and Entwicklungshilfeklub.

We get involved on a personal basis: Members of the Management Board take part in the events at schools and hold presentations as part of the Teach for Austria programme.

#### Effects of the conflict in Ukraine

Our activities in Russia are limited to the St. Petersburg region, so neither our employees nor our properties are directly affected by the events. Warimpex and all of its employees are appalled and dismayed by these events and we can only hope that peace is restored very soon and further unnecessary suffering is prevented.

#### Effects of inflation and higher energy prices

Although inflation has retreated from the recent highs in some countries, it is possible that energy prices will remain elevated and/or volatile for some time. In this context, efforts to develop energy-efficient buildings or make older buildings more environmentally friendly through renovations are all the more important.

{60}------------------------------------------------

Mogilska 35 Office
Krakow, PL

GROUP MANAGEMENT REPORT 2023 WARIMPEX <sup>61</sup>

warímpex

{61}------------------------------------------------

## *Outlook*

## DISCLOSURES PURSUANT TO § 243A AUSTRIAN COMMERCIAL CODE

The share capital of Warimpex Finanz- und Beteiligungs AG amounts to EUR 54,000,000 and is divided into 54,000,000 non-par-value bearer shares.

The Management Board is aware of no limitations on voting rights or the transfer of shares.

The following shareholders each held interests amounting to more than 10 per cent of the Company's share capital as at the reporting date:

| Georg Folian         | 11.5% |
|----------------------|-------|
| Bocca Privatstiftung | 10.6% |
| Franz Jurkowitsch    | 11.1% |
| Amber Privatstiftung | 10.7% |

The bond of Warimpex Finanz- und Beteiligungs AG as at 31 December 2023:

|            | ISIN         | Outstanding amount |
|------------|--------------|--------------------|
| Bond 09/25 | AT0000A23GA4 | EUR 3,600,000      |

#### Treasury shares:

At the Annual General Meeting on 1 June 2023, the Management Board was authorised to purchase shares in the Company up to the maximum amount permitted by law of 10 per cent of the total capital stock within a period of 30 months after the passing of the motion. The purposes for which the purchased shares may be used were also specified. In addition to being held as treasury shares, they can be sold or given to employees of the Company or of an associate. The shares can also be used to service the convertible and/or warrant bonds or as payment for the purchase of real estate, business entities, business operations, or shares in one or more companies in Austria or abroad, or can be sold at any time on the exchange or through a public offer, and can be sold by any other legal means, including outside of the stock exchange, for a period of five years after the adoption of the resolution. In addition, the Annual General Meeting on 1 June 2023 authorised the Management Board to issue up to a total of 5,400,000 new shares within five years, subject to the approval of the Supervisory Board (authorised capital). The subscription right of the existing shareholders was waived.

Warimpex held a total of 1,939,280 treasury shares as at 31 December 2023, which corresponds to 3.59 per cent of the capital stock.

Apart from the above, there are no further particulars that must be disclosed pursuant to § 243a Austrian Commercial Code.

The following development projects are currently under construction or development:

- Chopin co-living/office project with roughly 20,600 square metres of space, Krakow (currently being planned, building permit issued)
- West Yard 29 office building in Darmstadt with roughly 12,500 square metres of space (currently being planned, new zoning plan approved)
- MC 55 multi-use building in Białystok with roughly 38,500 square metres of space (currently being planned, building permit issued)

Our operational focus continues to be on making preparations for construction and obtaining building permits in order to be ready to start construction at the suitable time. The new zoning plan for office developments in Darmstadt entered into force in September. The application for a building permit was submitted after the reporting date.

Since the beginning of the conflict in Ukraine, management has continuously focused on the related geopolitical developments. The Management Board is monitoring the economic and legal developments in Russia very closely in coordination with the Supervisory Board in order to be able to react quickly to current events if necessary. At present, it is possible to continue the operational activities (letting of office properties and operation of a hotel) in Russia without significant restrictions; new projects are not planned at this time.

Through independent Russian subsidiaries, the Group owns properties in St. Petersburg (including one hotel, three office properties, and one multi-use building). Warimpex is represented in St. Petersburg by local employees working at local subsidiaries that manage the business operations in the country independent of Warimpex. Apart from capital injections completed in the past and liabilities for loans secured by mortgages, there are no financial links or ongoing business relationships between the Russian subsidiaries and the Group parent company or other Group companies.

{62}------------------------------------------------

As at the reporting date, there are bank deposits of Russian subsidiaries equivalent to EUR 3.8 million that the Group can only access to a limited extent due to the applicable restrictions on the movement of capital, as there are monthly limits per company for transfers from Russia to the EU. The approval of a Russian government commission is required for transactions that exceed these limits. The financial planning includes sufficient liquidity, even in the absence of payments from Russian subsidiaries. The Management Board believes that short-term financing facilities will continue to be able to be extended and/ or that liquidity will be generated from the sale of properties in line with the business model. Thus, the Management Board is confident that the continued existence of the Group is not threatened – including in connection with the conflict in Ukraine and the investments in Russia – so the going concern principle on which the consolidated financial statements are based is still fulfilled. Please see section 3.4.1. of the notes to the consolidated financial statements as at 31 December 2023 for more information. Further financial effects on the consolidated financial statements are possible depending on the duration of the conflict, but cannot be reliably estimated at present. Warimpex expects the rouble exchange rate to remain volatile in the future, as well.

The increase in the cost of project financing resulting from the inflation trend and the higher key rates as well as the rise in yields for properties, which have already resulted in lower property values, are still key topics in the real estate industry. A moderate easing of the rise in interest rates is evident at present. As at the reporting date, only around 20 per cent of the Group's interest-bearing financial liabilities were subject to variable interest rates, so interest rate risk is considered to be moderate for Warimpex.

Based on the budget figures, the Group anticipates positive results for its ongoing operational activities in 2024. Market conditions are expected to remain challenging due to the continuing conflict in Ukraine and the declining economic growth, but Warimpex is optimally prepared to meet these challenges with its experienced and crisis-tested team.

In addition, the topic of sustainability is becoming an increasingly important focus. Sustainability has long since become more than a peripheral topic and now shapes the thinking and actions of the majority of the population. Sustainability and climate protection are gaining even more significance due to the EU Taxonomy, which contributes to the promotion of environmentally sustainable economic activities. Throughout the Group, the goal is to confirm the implementation of sustainability concepts at our properties by obtaining appropriate certifications for our property portfolio. Several of our properties have already been classified as Taxonomy-aligned and thus as environmentally sustainable. This course will be continued in the future.

#### **Vienna, 22 April 2024**

lisa

**Franz Jurkowitsch** Chairman of the Management Board

A.

**Alexander Jurkowitsch** Member of the Management Board

Daniel Folim

**Daniel Folian** Deputy Chairman of the Management Board

**Florian Petrowsky** Member of the Management Board

{63}------------------------------------------------

# *Consolidated Financial Statements*

AS AT 31 DECEMBER 2023

- 65 Consolidated Income Statement
- 66 Consolidated Statement of Comprehensive Income
- 67 Consolidated Statement of Financial Position
- 68 Consolidated Statement of Cash Flows
- 69 Consolidated Statement of Changes in Equity

#### 70 Notes to the Consolidated Financial Statements

- 70 Corporate Information
- 70 Information on the Business Segments
- 72 Consolidated Segment Information
- 74 Basis for Preparation
- 85 Information about the Companies Included in the Consolidated Financial Statements
- 87 Property Sales and Changes in the Scope of Consolidation
- 88 Notes to the Consolidated Income Statement
- 95 Notes to the Consolidated Statement of Financial Position
- 117 Disclosures on Financial Instruments, Fair Value, and Financial Risk Management
- 125 Other Disclosures

130 Auditor's Report

Image /page/63/Picture/20 description: The image shows a building with the text "West Yard 29 Darmstadt, D" in the lower right corner. The building has large windows and is covered in vines. There are people walking and biking in front of the building.

{64}------------------------------------------------

# *Consolidated Income Statement*

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

| in EUR '000                                                                             | Note   | 2023     | 2022     |
|-----------------------------------------------------------------------------------------|--------|----------|----------|
| Investment Properties revenues                                                          |        | 36,925   | 33,154   |
| Hotels revenues                                                                         |        | 11,308   | 9,273    |
| Development and Services revenues                                                       |        | 1,453    | 2,709    |
| Revenues                                                                                | 6.1.   | 49,685   | 45,136   |
| Expenses from the operation of investment properties                                    |        | (6,778)  | (6,355)  |
| Expenses from the operation of hotels                                                   |        | (9,051)  | (7,457)  |
| Expenses directly attributable to development and services                              |        | (1,281)  | (2,288)  |
| Expenses directly attributable to revenues                                              | 6.2.   | (17,110) | (16,100) |
| Gross income from revenues                                                              |        | 32,575   | 29,036   |
| Income from the sale of properties                                                      |        | –        | 9,427    |
| Disposal of carrying amounts and expenses related to sales                              |        | –        | (6,606)  |
| Gains or losses from the disposal of properties                                         | 5.1.   | –        | 2,821    |
| Other operating income                                                                  | 6.3.   | 849      | 1,374    |
| Administrative expenses                                                                 | 6.4.   | (10,374) | (14,122) |
| Other expenses                                                                          | 6.5.   | (1,435)  | (2,611)  |
| Earnings before interest, taxes, depreciation, amortisation, and remeasurement (EBITDA) |        | 21,617   | 16,498   |
| Scheduled depreciation and amortisation on property, plant, and equipment               |        | (1,866)  | (2,057)  |
| Scheduled depreciation on right-of-use assets                                           |        | (386)    | (351)    |
| Impairment of property, plant, and equipment                                            |        | (553)    | (814)    |
| Reversals of impairment on property, plant, and equipment                               |        | 2,675    | –        |
| Gains/losses on remeasurement of investment property                                    |        | (38,313) | 45,872   |
| Depreciation, amortisation, and remeasurement                                           | 6.6.   | (38,443) | 42,649   |
| Earnings before interest and taxes (EBIT)                                               |        | (16,826) | 59,148   |
| Interest revenue                                                                        | 6.7.   | 958      | 500      |
| Finance expenses                                                                        | 6.8.   | (13,840) | (13,847) |
| Changes in foreign exchange rates                                                       | 6.9.   | 1,968    | 3,885    |
| Result from joint ventures (equity method) after taxes                                  | 7.3.4. | 420      | 2,940    |
| Financial result                                                                        |        | (10,494) | (6,522)  |
| Earnings before taxes                                                                   |        | (27,321) | 52,626   |
| Current income taxes                                                                    | 6.10.  | (1,567)  | (1,308)  |
| Deferred income taxes                                                                   | 7.5.   | 5,081    | (8,454)  |
| Taxes                                                                                   |        | 3,514    | (9,762)  |
| Profit or loss for the period                                                           |        | (23,807) | 42,864   |
| thereof profit or loss of non-controlling interests                                     |        | (13)     | 25       |
| thereof profit or loss of shareholders of the parent                                    |        | (23,794) | 42,839   |
| Undiluted earnings per share in EUR                                                     | 7.9.1. | -0.46    | 0.82     |
| in EUR '000                                                                             | Note   | 2023     | 2022     |
| Profit or loss for the period                                                           |        | (23,807) | 42,864   |
| Foreign exchange differences                                                            |        | (27,540) | 1,855    |
| thereof reclassified to the income statement                                            |        | (129)    | –        |
| (Deferred) taxes in other comprehensive income                                          |        | 2,870    | 804      |
| Other comprehensive income (reclassified to profit or loss in subsequent periods)       | 7.9.3. | (24,670) | 2,659    |
| at fair value through other comprehensive income                                        | 7.7.   | 49       | (283)    |
| Gains/losses from remeasurement in accordance with IAS 19                               |        | 175      | 332      |
| Other comprehensive income (not reclassified to profit or loss in subsequent periods)   | 7.9.3. | 224      | 49       |
| Other comprehensive income                                                              |        | (24,446) | 2,708    |
| Total comprehensive income for the period                                               |        | (48,253) | 45,572   |
| thereof profit or loss of non-controlling interests                                     |        | 7        | 21       |
| thereof profit or loss of shareholders of the parent                                    |        | (48,260) | 45,551   |

{65}------------------------------------------------

# *Consolidated Statement of Comprehensive Income*

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

{66}------------------------------------------------

## *Consolidated Statement of Financial Position*

#### AS AT 31 DECEMBER 2023

| in EUR '000                                                                | Note    | 31/12/2023     | 31/12/2022     |
|----------------------------------------------------------------------------|---------|----------------|----------------|
| ASSETS                                                                     |         |                |                |
| Investment properties                                                      | 7.1.    | 323,235        | 388,463        |
| Property, plant, and equipment                                             | 7.2.    | 33,106         | 36,408         |
| Other intangible assets                                                    |         | 13             | 47             |
| Joint ventures (equity method)                                             | 7.3.    | 435            | 410            |
| Financial assets measured at fair value through other comprehensive income | 7.7.    | –              | 5,221          |
| Derivative financial instruments                                           |         | –              | 85             |
| Other assets                                                               | 7.4.    | 1,650          | 1,782          |
| Deferred tax assets                                                        | 7.5.    | 1,011          | 1,666          |
| <b>Non-current assets</b>                                                  |         | <b>359,450</b> | <b>434,081</b> |
| Inventories                                                                |         | 161            | 189            |
| Trade and other receivables                                                | 7.6.    | 4,806          | 4,873          |
| Cash and cash equivalents                                                  | 7.8.    | 6,857          | 15,924         |
| <b>Current assets</b>                                                      |         | <b>11,824</b>  | <b>20,986</b>  |
| <b>TOTAL ASSETS</b>                                                        |         | <b>371,273</b> | <b>455,068</b> |
|                                                                            |         |                |                |
| <b>EQUITY AND LIABILITIES</b>                                              |         |                |                |
| Share capital                                                              | 7.9.1.  | 54,000         | 54,000         |
| Retained earnings                                                          | 7.9.3.  | 104,914        | 128,659        |
| Treasury shares                                                            | 7.9.3.  | (2,991)        | (2,991)        |
| Other reserves                                                             | 7.9.3.  | (34,019)       | (9,505)        |
| <b>Equity attributable to shareholders of the parent</b>                   |         | <b>121,904</b> | <b>170,164</b> |
| Non-controlling interests                                                  |         | 133            | 125            |
| <b>Equity</b>                                                              |         | <b>122,036</b> | <b>170,289</b> |
| Bonds                                                                      | 7.10.1. | 9,178          | 10,785         |
| Other financial liabilities                                                | 7.10.2. | 179,184        | 203,630        |
| Lease liabilities                                                          | 7.10.3. | 1,649          | 1,737          |
| Other liabilities                                                          | 7.12.   | 7,946          | 8,408          |
| Provisions                                                                 | 7.13.   | 2,315          | 2,344          |
| Deferred tax liabilities                                                   | 7.5.    | 11,225         | 19,831         |
| Deferred income                                                            |         | 17             | 41             |
| <b>Non-current liabilities</b>                                             |         | <b>211,517</b> | <b>246,775</b> |
| Bonds                                                                      | 7.10.1. | 1,870          | 1,842          |
| Other financial liabilities                                                | 7.10.2. | 24,818         | 26,577         |
| Lease liabilities                                                          | 7.10.3. | 485            | 400            |
| Trade and other payables                                                   | 7.14.   | 10,340         | 9,048          |
| Provisions                                                                 | 7.13.   | 85             | 98             |
| Income tax liabilities                                                     | 6.10.   | 99             | 17             |
| Deferred income                                                            |         | 23             | 23             |
| <b>Current liabilities</b>                                                 |         | <b>37,720</b>  | <b>38,004</b>  |
| <b>Liabilities</b>                                                         |         | <b>249,237</b> | <b>284,779</b> |
| <b>TOTAL EQUITY AND LIABILITIES</b>                                        |         | <b>371,273</b> | <b>455,068</b> |

{67}------------------------------------------------

## *Consolidated Statement of Cash Flows*

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

| in EUR '000                                                                | Note    | 2023            | 2022            |
|----------------------------------------------------------------------------|---------|-----------------|-----------------|
| Cash receipts                                                              |         |                 |                 |
| from letting and hotel operations                                          |         | 53,064          | 47,027          |
| from real estate development projects and other                            |         | 1,796           | 2,543           |
| from interest income                                                       |         | 733             | 327             |
| <b>Cash receipts from operating activities</b>                             |         | <b>55,592</b>   | <b>49,897</b>   |
| Cash payments                                                              |         |                 |                 |
| for real estate development projects                                       |         | (292)           | (650)           |
| for materials and services received                                        |         | (15,114)        | (15,664)        |
| for personnel expenses                                                     |         | (9,587)         | (10,850)        |
| for other administrative expenses                                          |         | (4,200)         | (9,733)         |
| for income taxes                                                           |         | (1,609)         | (1,647)         |
| <b>Cash payments for operating activities</b>                              |         | <b>(30,801)</b> | <b>(38,544)</b> |
| <b>Net cash flows from operating activities</b>                            |         | <b>24,791</b>   | <b>11,353</b>   |
|                                                                            |         |                 |                 |
| Cash receipts from                                                         |         |                 |                 |
| the sale of disposal groups and property                                   | 5.1.    | –               | 12,870          |
| less outflow of cash and cash equivalents from disposal groups sold        |         | –               | (366)           |
| purchase price payments from sales in previous periods                     |         | 125             | 125             |
| the sale of property, plant, and equipment                                 |         | 17              | 83              |
| financial assets measured at fair value through other comprehensive income |         | 5,270           | –               |
| other financial assets                                                     |         | 3               | 383             |
| returns on joint ventures                                                  |         | 512             | 3,061           |
| <b>Cash receipts from investing activities</b>                             |         | <b>5,927</b>    | <b>16,156</b>   |
| Cash payments for                                                          |         |                 |                 |
| investments in investment property                                         |         | (13,665)        | (18,057)        |
| investments in property, plant, and equipment                              |         | (1,484)         | (1,204)         |
| investments in intangible assets                                           |         | –               | (3)             |
| other financial assets                                                     |         | (1,063)         | (3)             |
| <b>Payments made for investments</b>                                       |         | <b>(16,212)</b> | <b>(19,267)</b> |
| <b>Net cash flows for investing activities</b>                             |         | <b>(10,285)</b> | <b>(3,111)</b>  |
|                                                                            |         |                 |                 |
| Cash received from the issue of bonds                                      | 7.10.3. | –               | 7,700           |
| Cash payments for the redemption of bonds                                  | 7.10.3. | (1,800)         | (1,800)         |
| Cash receipts from loans and borrowing                                     | 7.10.3. | 11,864          | 40,494          |
| Payments for the repayment of loans and borrowing                          | 7.10.3. | (17,451)        | (36,912)        |
| Payments for the payment of lease liabilities                              | 7.10.3. | (304)           | (349)           |
| Paid interest (for loans and borrowing)                                    |         | (12,965)        | (12,054)        |
| Paid interest (for bonds)                                                  |         | (636)           | (489)           |
| Paid financing expenses                                                    |         | (195)           | (1,110)         |
| <b>Net cash flows from financing activities</b>                            |         | <b>(21,488)</b> | <b>(4,520)</b>  |
| <b>Net change in cash and cash equivalents</b>                             |         | <b>(6,982)</b>  | <b>3,722</b>    |
| Foreign exchange rate changes in cash and cash equivalents                 |         | 54              | (26)            |
| Foreign exchange rate changes from other comprehensive income              |         | (2,140)         | 1,037           |
| Cash and cash equivalents as at 1 January                                  |         | 15,924          | 11,192          |
| Cash and cash equivalents as at 31 December                                |         | 6,857           | 15,924          |

{68}------------------------------------------------

# *Consolidated Statement of Changes in Equity*

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

| in EUR '000                                  | Equity attributable to shareholders of the parent |                      |                    |                   |          |                                 |                 |
|----------------------------------------------|---------------------------------------------------|----------------------|--------------------|-------------------|----------|---------------------------------|-----------------|
|                                              | Share<br>capital                                  | Retained<br>earnings | Treasury<br>shares | Other<br>reserves | Total    | Non<br>controlling<br>interests | Total<br>equity |
| As at 1 January 2022                         | 54,000                                            | 86,103               | (2,991)            | (12,500)          | 124,612  | 105                             | 124,717         |
| Total comprehensive income<br>for the period | –                                                 | 42,556               | –                  | 2,995             | 45,551   | 21                              | 45,572          |
| thereof profit or loss for the period        | –                                                 | 42,839               | –                  | –                 | 42,839   | 25                              | 42,864          |
| thereof other<br>comprehensive income        | –                                                 | (283)                | –                  | 2,995             | 2,712    | (4)                             | 2,708           |
| As at 31 December 2022                       | 54,000                                            | 128,659              | (2,991)            | (9,505)           | 170,164  | 125                             | 170,289         |
| = As at 1 January 2023                       | 54,000                                            | 128,659              | (2,991)            | (9,505)           | 170,164  | 125                             | 170,289         |
| Total comprehensive income<br>for the period | –                                                 | (23,746)             | –                  | (24,515)          | (48,260) | 7                               | (48,253)        |
| thereof profit or loss for the period        | –                                                 | (23,794)             | –                  | –                 | (23,794) | (13)                            | (23,807)        |
| thereof other<br>comprehensive income        | –                                                 | 49                   | –                  | (24,515)          | (24,466) | 20                              | (24,446)        |
| As at 31 December 2023                       | 54,000                                            | 104,914              | (2,991)            | (34,019)          | 121,904  | 133                             | 122,036         |

{69}------------------------------------------------

## *Notes to the Consolidated Financial Statements*

FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

## [01] Corporate Information

Warimpex Finanz- und Beteiligungs AG ("the Company" or "Warimpex") is registered with the Commercial Court of Vienna under the number FN 78485w. The Company's registered address is Floridsdorfer Hauptstrasse 1, A-1210 Vienna, Austria.

The audited consolidated financial statements of Warimpex Finanz- und Beteiligungs AG for the reporting year ended 31 December 2023 were authorised for release to the Supervisory Board by the Management Board on 22 April 2024. It is the duty of the Supervisory Board to review the consolidated financial statements and state whether the consolidated financial statements are approved.

The core activities of the Group encompass the construction, purchase, refurbishment, and operation of office and hotel properties in Central and Eastern Europe. Depending on the market situation and maturity, properties are sold to achieve the maximum added value.

## [02] Information on the Business Segments

#### 2.1. General

Reporting within the Group is based on the following reportable business segments:

- Investment Properties
- Hotels
- Development and Services

The business segments were defined according to the criteria in IFRS 8.5 ff. The individual segments are identified on the basis of their different products and services. The individual hotels and individual managed properties (investment properties) also represent individual business segments based on the Group's reporting structure and are consolidated under the reportable segments of Hotels and Investment Properties as appropriate in accordance with IFRS 8.12. Detailed information about this can be found in section 2.2.

Transactions between business segments contain the recharging of intragroup services and project development services at arm's length terms. Service relationships with a single customer exceeded 10 per cent of the total Group revenues in the reporting period. These revenues amounted to EUR 25,234 thousand (2022: EUR 22,635 thousand) and primarily pertained to the Investment Properties segment. Revenues from customers are allocated geographically in the segment reporting according to the place of performance.

The internal reporting and segment reporting are completed according to the provisions of the IFRS as they have been adopted by the EU. All companies included in the consolidated financial statements are also contained in the segment information. Earnings contributions from joint ventures are reported in the item Results from joint ventures in the segment information.

{70}------------------------------------------------

#### 2.2 Information about the individual business segments

#### 2.2.1. Investment Properties segment

The Investment Properties segment contains the business activities, assets, and liabilities for the non-hotel properties that are currently operated by the Group. These are offices and office buildings that have comparable economic characteristics. The office properties in the reportable segment are comparable in terms of the rendered services (letting), the production processes (construction or purchase of the property, tenant adaptations), the customer groups (corporate customers), and the sales channels.

The properties were wholly owned by the Group as at the reporting date. The Investment Properties segment contains the following buildings for the reporting period:

| Poland:  | Ogrodowa Office, Łódź; Red Tower, Łódź;<br>Mogilska 41 Office, Krakow;<br>Mogilska 43 Office, Krakow; Mogilska 35 Office,<br>Krakow (from the end of 2023) |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Russia:  | Zeppelin office tower, Bykovskaya multi-use<br>building, Jupiter 1 and 2 office towers,<br>Avior Tower 1 (from the end of 2022) –<br>all in St. Petersburg |
| Hungary: | B52 Office (until June 2022),<br>Erzsébet Office – both in Budapest                                                                                        |

This segment is managed on the basis of the performance metrics according to IFRS, in particular EBITDA (earnings before financial expenses and gains/losses on remeasurement). The revenues consist primarily of rental revenue (according to IFRS 16), income from charged operating expenses (IFRS 15), and, if applicable, revenue for tenant adaptations.

#### 2.2.2. Hotels segment

The individual hotels are combined into a single reportable segment on the basis of comparable economic characteristics. This pertains particularly to the type of products and services (lodging, food and beverages), to the production processes in the hotels, to the customer structure (business and leisure), and to the sales channels.

The resulting business segment covers all activities, assets, and liabilities that are associated with the operation of hotels. The hotels are either wholly owned by the Group or are leased (as part of a joint venture). The hotels are in the three-star superior and four-star segments. The following hotels are included in the segment information:

| Poland: | InterContinental hotel, Warsaw        |
|---------|---------------------------------------|
|         | (lease, joint venture), equity method |
| Russia: | Airportcity Plaza, St. Petersburg     |
|         | (until June 2022: Crowne Plaza)       |

#### Germany: greet hotel, Darmstadt

Key figures that are typical for the sector are used to manage the hotels. These include GOP (gross operating profit, calculated according to the Uniform System of Accounts for the Lodging Industry) and NOP (net operating profit, which corresponds to the GOP less specific costs of ownership such as management fees, insurance, land tax, etc.). This is shown as gross income in the Hotels segment.

The Hotels segment is analysed according to the cost of sales method for purposes of internal Group reporting. The GOP contains all sales revenues, costs of materials and services, and personnel expenses that are directly related to the operation of the hotel. The NOP also contains the directly allocable costs of the owner.

Hotel revenue consists mainly of revenue for lodging and for food and beverages. The hotels are managed by external service providers or by Group entities. The management fee is generally calculated as a percentage of the revenues and of the GOP. The property costs include insurance and property taxes, among other expenses.

Other costs after NOP include personnel expenses for administrative staff as well as expenses of the owner of the hotel that are not directly attributable to the operation of the hotel.

#### 2.2.3. Development and Services segment

The Development and Services segment contains development activities and other services, as well as the associated assets and liabilities including activities in the Group parent company. The revenues in this segment come either from the sale of developed properties or from development activities and services for third parties, and are subject to significant annual fluctuation. Properties operated under a different segment are reclassified into the Development and Services segment in the event of a sale.

During the reporting period, the segment assets included development properties and properties under construction in Poland, Russia, and Germany.

This business segment is primarily managed on the basis of sale transactions, and revenue, EBITDA, and the segment result according to IFRS are the most important metrics.

{71}------------------------------------------------

## CONSOLIDATED SEGMENT INFORMATION

In "Segment overview – profit or loss for the period", the segments are presented in accordance with their breakdown in the income statement and allocated to the consolidated result. Detailed information about the individual segments in terms of their scope and management criteria is presented in section 2.

|                                                                              |  | Investment<br>Properties |          | Hotels  |         | Development<br>and Services |          | Segment total<br>as at 31 December |          |
|------------------------------------------------------------------------------|--|--------------------------|----------|---------|---------|-----------------------------|----------|------------------------------------|----------|
| in EUR '000                                                                  |  | 2023                     | 2022     | 2023    | 2022    | 2023                        | 2022     | 2023                               | 2022     |
| SEGMENT OVERVIEW –<br>PROFIT OR LOSS FOR THE PERIOD                          |  |                          |          |         |         |                             |          |                                    |          |
| Revenues                                                                     |  | 36,925                   | 33,154   | 11,308  | 9,273   | 1,453                       | 2,709    | 49,685                             | 45,136   |
| Expenses directly attributable to revenues                                   |  | (6,778)                  | (6,355)  | (9,051) | (7,457) | (1,281)                     | (2,288)  | (17,110)                           | (16,100) |
| Gross income from revenues                                                   |  | 30,147                   | 26,799   | 2,257   | 1,816   | 172                         | 422      | 32,575                             | 29,030   |
| Gains or losses from the disposal of properties                              |  | –                        | –        | –       | –       | –                           | 2,821    | –                                  | 2,821    |
| Other operating income                                                       |  | 252                      | 211      | 514     | 797     | 83                          | 366      | 849                                | 1,374    |
| Administrative expenses                                                      |  | (1,471)                  | (2,492)  | (252)   | (438)   | (8,651)                     | (11,192) | (10,374)                           | (14,122) |
| Other expenses                                                               |  | (652)                    | (1,667)  | (58)    | (136)   | (725)                       | (807)    | (1,435)                            | (2,611)  |
| Group expenses/income                                                        |  | (2,862)                  | (1,598)  | –       | –       | 2,862                       | 1,598    | –                                  | –        |
| Segment EBITDA                                                               |  | 25,415                   | 21,252   | 2,461   | 2,039   | (6,260)                     | (6,793)  | 21,617                             | 16,499   |
| Scheduled depreciation and amortisation on<br>property, plant, and equipment |  | (294)                    | (96)     | (1,430) | (1,670) | (142)                       | (290)    | (1,866)                            | (2,057)  |
| Scheduled depreciation on right-of-use assets                                |  | (61)                     | (14)     | –       | –       | (325)                       | (338)    | (386)                              | (351)    |
| Impairment of property, plant, and equipment                                 |  | –                        | –        | (553)   | (339)   | –                           | (475)    | (553)                              | (814)    |
| Reversals of impairment on property,<br>plant, and equipment                 |  | –                        | –        | 2,675   | –       | –                           | –        | 2,675                              | –        |
| Measurement gains                                                            |  | 326                      | 55,837   | –       | –       | 9,393                       | 5,400    | 9,719                              | 61,236   |
| Measurement losses                                                           |  | (44,791)                 | (11,227) | –       | –       | (3,241)                     | (4,137)  | (48,032)                           | (15,365) |
| Depreciation, amortisation, and remeasurement                                |  | (44,819)                 | 44,499   | 692     | (2,009) | 5,685                       | 159      | (38,443)                           | 42,649   |
| Segment EBIT                                                                 |  | (19,405)                 | 65,751   | 3,154   | 30      | (575)                       | (6,633)  | (16,826)                           | 59,148   |
| Finance income                                                               |  | 672                      | 149      | 0       | –       | 286                         | 350      | 958                                | 500      |
| Finance expenses                                                             |  | (9,984)                  | (8,471)  | (1,373) | (1,085) | (2,484)                     | (4,292)  | (13,840)                           | (13,847) |
| Changes in foreign exchange rates                                            |  | 355                      | (32)     | –       | 4,325   | 1,613                       | (408)    | 1,968                              | 3,885    |
| Earnings from joint ventures                                                 |  | –                        | –        | 396     | 2,945   | 24                          | (5)      | 420                                | 2,940    |
| Group interest settlement                                                    |  | (4,524)                  | (3,016)  | –       | –       | 4,524                       | 3,016    | –                                  | –        |
| Financial result                                                             |  | (13,481)                 | (11,370) | (977)   | 6,186   | 3,963                       | (1,338)  | (10,494)                           | (6,522)  |
| Earnings before taxes                                                        |  | (32,885)                 | 54,381   | 2,177   | 6,216   | 3,388                       | (7,971)  | (27,321)                           | 52,626   |
| Current income taxes                                                         |  | (1,238)                  | (1,168)  | –       | (231)   | (329)                       | 91       | (1,567)                            | (1,308)  |
| Deferred income taxes                                                        |  | 6,244                    | (8,556)  | (401)   | 330     | (762)                       | (228)    | 5,081                              | (8,454)  |
| Income taxes                                                                 |  | 5,006                    | (9,724)  | (401)   | 99      | (1,091)                     | (136)    | 3,514                              | (9,762)  |

{72}------------------------------------------------

## SEGMENT DISCLOSURES AT GROUP LEVEL (GEOGRAPHICAL)

|                                                                                    | Investment<br>Properties |          | Hotels   |          | Development<br>and Services |          | Group total |          |
|------------------------------------------------------------------------------------|--------------------------|----------|----------|----------|-----------------------------|----------|-------------|----------|
|                                                                                    | 31/12/23                 | 31/12/22 | 31/12/23 | 31/12/22 | 31/12/23                    | 31/12/22 | 31/12/23    | 31/12/22 |
| Composition of non-current assets<br>in accordance with IFRS 8.33<br>(geographic): |                          |          |          |          |                             |          |             |          |
| Austria                                                                            | –                        | –        | –        | –        | 662                         | 646      | 662         | 646      |
| Poland                                                                             | 160,303                  | 129,735  | –        | –        | 15,061                      | 30,803   | 175,365     | 160,538  |
| Russia                                                                             | 102,036                  | 181,244  | 17,171   | 19,798   | 6,171                       | 8,113    | 125,378     | 209,156  |
| Germany                                                                            | –                        | –        | 12,875   | 13,605   | 17,760                      | 15,080   | 30,635      | 28,685   |
| Hungary                                                                            | 24,282                   | 25,855   | –        | –        | 32                          | 38       | 24,314      | 25,893   |
| Total                                                                              | 286,621                  | 336,835  | 30,046   | 33,403   | 39,687                      | 54,680   | 356,354     | 424,918  |

|                                          | 2023   | 2022   | 2023   | 2022  | 2023  | 2022  | 2023   | 2022   |
|------------------------------------------|--------|--------|--------|-------|-------|-------|--------|--------|
|                                          |        |        |        |       |       |       |        |        |
| Composition of revenues<br>(geographic): |        |        |        |       |       |       |        |        |
| Austria                                  | –      | –      | –      | –     | 41    | 91    | 41     | 91     |
| Poland                                   | 9,656  | 8,066  | –      | –     | 1,355 | 2,562 | 11,011 | 10,628 |
| Russia                                   | 25,223 | 22,625 | 5,607  | 5,761 | 11    | 10    | 30,841 | 28,396 |
| Germany                                  | –      | –      | 5,701  | 3,512 | –     | –     | 5,701  | 3,512  |
| Hungary                                  | 2,046  | 2,463  | –      | –     | 46    | 46    | 2,092  | 2,509  |
| Total                                    | 36,925 | 33,154 | 11,308 | 9,273 | 1,453 | 2,709 | 49,685 | 45,136 |
|                                          |        |        |        |       |       |       |        |        |
| Average number of employees              | 19     | 15     | 95     | 94    | 67    | 51    | 181    | 160    |

{73}------------------------------------------------

## [03] Basis for Preparation

#### 3.1. Basis for preparation of the financial statements

The consolidated financial statements of Warimpex Finanzund Beteiligungs AG and its subsidiaries were prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU. The additional requirements of § 245a (1) UGB (Austrian Commercial Code) were also met.

As a general rule, the consolidated financial statements are prepared using the (amortised) historical cost of all assets. However, investment properties, derivative financial instruments (to the extent such instruments are held), and financial assets measured at fair value through other comprehensive income are stated at fair value.

The consolidated financial statements are based on the going concern principle.

The Group's reporting currency is the euro. The consolidated financial statements are presented in full thousands of euros except where otherwise indicated. Rounding differences may arise from the addition of rounded figures.

Financial statements of the Group member companies prepared in accordance with local accounting regulations are reconciled with IFRS and uniform Group accounting guidelines by the Group's accounting department in Vienna. All companies included in the consolidated financial statements prepare their financial statements as at 31 December.

All entities that are included in the consolidated financial statements are listed in section 4.1.1.

#### 3.2. Changes in accounting policies and regulations

## 3.2.1. New and amended standards and interpretations – firsttime application

The following new or amended standards were required to be applied for the first time in the reporting period:

| Standard/<br>interpretation | Content/<br>description                                                                | Initial<br>application<br>mandatory<br>from start of<br>financial year |
|-----------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| IFRS 17                     | Insurance Contracts<br>(including amendments<br>from June 2020)                        | 1/1/23*                                                                |
| IFRS 17                     | Initial Application of<br>IFRS 17 and 9 –<br>Comparative Information                   | 1/1/23*                                                                |
| IFRS 9                      | Initial Application of IFRS 17<br>and 9 – Comparative<br>Information                   | 1/1/23*                                                                |
| IAS 12                      | Deferred Tax Related to Assets<br>and Liabilities Arising from a<br>Single Transaction | 1/1/23*                                                                |
| IAS 12                      | International Tax Reform –<br>Pillar Two Model Rules                                   | 1/1/23*                                                                |
| IAS 1                       | Disclosure of<br>Accounting Policies                                                   | 1/1/23*                                                                |
| IAS 8                       | Definition of<br>Accounting Estimates                                                  | 1/1/23*                                                                |

\*) These amendments to the accounting regulations did not result in any direct effects in the financial year.

{74}------------------------------------------------

## 3.2.2. New and amended standards and interpretations – not yet applied

The following new or amended standards and interpretations were adopted by the EU after they were published by the International Accounting Standards Board (IASB) and therefore must be applied starting on the specified date (see section 3.2.2.1.):

| Standard/<br>interpretation | Content/<br>description                                                                                                                     | Initial<br>application<br>mandatory<br>from start of<br>financial year |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| IAS 1                       | Classification of Liabilities<br>as Current or Non-current,<br>Deferral of Effective Date,<br>and Non-current Liabilities<br>with Covenants | 1/1/24                                                                 |
| IFRS 16                     | Lease Liability in a Sale<br>and Leaseback                                                                                                  | 1/1/24                                                                 |

The following new or amended standards and interpretations have already been published by the IASB, but have not yet been adopted by the EU (see section 3.2.2.2.):

| Standard/<br>interpretation | Content/<br>description                                | Initial application<br>mandatory<br>from start of<br>financial year<br>as per standard |
|-----------------------------|--------------------------------------------------------|----------------------------------------------------------------------------------------|
| IAS 21                      | Lack of Exchangeability                                | 1/1/25*                                                                                |
| IAS 7                       | Supplier Finance Arrangements                          | 1/1/24*                                                                                |
| IFRS 7                      | Supplier Finance Arrangements                          | 1/1/24*                                                                                |
| IFRS 18                     | Presentation and Disclosure<br>in Financial Statements | 1/1/27                                                                                 |

\*) Based on the Group's current assessment, these amendments to the accounting regulations will have no impact or only a minor impact on the consolidated financial statements. Therefore, they are not explained in detail in the following. The assessment of the relevance of these amendments will be evaluated on a regular basis before the first-time application date and adapted if necessary.

Warimpex does not intend to apply the new or amended standards and interpretations listed above early.

## 3.2.2.1. New and amended standards and interpretations (adopted by the EU)

- IAS 1: Classification of Liabilities as Current or
- Non-current, Deferral of Effective Date, and Non-current Liabilities with Covenant

This amendment clarifies that the classification of liabilities as current or non-current should solely be based on rights that exist as at the reporting date or conditions that must be complied with as at the reporting date. In addition, the concept of the settlement of liabilities is defined in more detail. Settlement can refer to the transfer of cash, economic resources, or equity instruments. After the transfer of such (settlement), the liability is extinguished.

Due to the COVID-19 pandemic, the mandatory – retrospective – first-time application was delayed to periods beginning on or after 1 January 2024. These clarifications are in line with the Group's accounting policies and are therefore not currently expected to lead to any changes in the future apart from more detailed disclosures in the notes.

#### IFRS 16: Lease Liability in a Sale and Leaseback

This amendment to IFRS 16 confirms that in the case of a sale and leaseback, the lease liability is to be taken into account initially and variable lease payments are also to be included in the measurement of the right-of-use asset. Changes in the right-of-use asset may not be recognised through profit or loss in the subsequent measurement. The lease liability is reduced by the expected payments; the difference versus the actual payments is recognised in the income statement. This regulation may be applied in the case of future potential sale and leaseback transactions in the Group.

## 3.2.2.2. New and amended standards and interpretations (not yet adopted by the EU)

## • IFRS 18: Presentation and Disclosure in Financial Statements

This new standard is intended to improve the comparability of the presentation of financial statements. To this end, income and expenses are to be assigned to either the operating, investing, or financing category in the income statement. The standard also stipulates mandatory subtotals that must be provided. Certain disclosure options in the income statement and statement of cash flows are being eliminated. New requirements regarding company-specific performance measures and the aggregation and disaggregation level are being added. Upon initial application, the comparative figures for the prior year must be adjusted and a reconciliation must be prepared for the income statement. The new IFRS 18 will presumably lead to changes in the presentation of the consolidated financial statements and changes to the disclosures in the notes. This will require more extensive analysis before the initial application from 1 January 2027. Early application is not planned at this time.

{75}------------------------------------------------

#### 3.3. Basis of consolidation

The consolidated financial statements comprise the financial statements of Warimpex Finanz- und Beteiligungs AG and its direct and indirect subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as that of the parent company, using consistent accounting policies.

Subsidiaries are included in the consolidated financial statements by full consolidation from the acquisition date, which is the date when the Group obtains control of the subsidiary. They continue to be consolidated until the date that the Group's control of the company ceases.

Business combinations are accounted for according to the purchase method. All subsidiaries that have to be consolidated have been included in the consolidated financial statements (see section 4.1.). Joint ventures are recognised according to the equity method. For further information, please refer to section 3.5.

## 3.4. Important accounting judgements and estimation uncertainty

In preparing the consolidated financial statements of the Group, it is necessary to estimate figures and make assumptions which influence the recording of assets and liabilities, the presentation of other obligations as at the reporting date, and the recognition of revenues and expenses during the period. The uncertainty that is associated with these estimates can result in material changes to the values of assets or liabilities in future periods.

The most important future-related assumptions and other sources of estimation uncertainties that existed as at the reporting date and which may constitute a source of considerable risk that substantial adjustments of the carrying amounts of balance sheet items will have to be made in the subsequent financial year are explained in detail below.

#### 3.4.1. Impact of the conflict in Ukraine

On 24 February 2022, Russian troops invaded Ukraine, thus starting an armed conflict that has resulted in significant economic upheavals due to the international sanctions imposed against Russia as well as the reactions in Russia and will most likely continue to have an impact for some time. The rouble exchange rate remained volatile and went from 75.66 versus the euro as at 31 December 2022 to 99.19 as at 31 December 2023 (an increase of roughly 31 per cent). The key interest rate in Russia was raised from 7.5 per cent to 16 per cent in multiple steps in 2023.

Through independent Russian subsidiaries, the Group owns properties in St. Petersburg (including one hotel, three office properties, and one multi-use building). The office properties and the multi-use building are fully occupied, and the hotel is operated by a Group-owned Russian management company. The financing for the properties was arranged through Russian banks and is entirely denominated in roubles. Fixed interest rates or interest rate ceilings are defined in the credit agreements. Warimpex is represented in St. Petersburg by local employees working at local subsidiaries that manage the business operations in the country independent of Warimpex. Apart from capital injections completed in the past and liabilities for loans secured by mortgages, there are no financial links or ongoing business relationships between the Russian subsidiaries and the Group parent company or other Group companies. New projects are not planned in Russia at this time.

At present, it is possible to continue the operational activities (letting and hotel operations) in Russia without significant restrictions. When the InterContinental Hotel Group withdrew from Russia in 2022, the former Crowne Plaza hotel was renamed to the Airportcity Plaza hotel and the management of the hotel was transferred to a Russian Group subsidiary. The office properties and the multi-use building are fully occupied. Rent payments for one of the office buildings were not made recently, but tenant deposits in the amount of the outstanding payments were on hand as at the reporting date. A lawsuit for the payment of two months' rent has already been filed on a precautionary basis (see section 9.1.1.).

As in the prior year, the property valuation as at the reporting date for the hotel in St. Petersburg is subject to a higher degree of estimation uncertainty than usual due to geopolitical uncertainties regarding the Russian economy. Please refer to section 6.6. for details about the carrying amounts and remeasurement results.

As at the reporting date, there are bank deposits of Russian subsidiaries equivalent to EUR 3,843 thousand. They are reported as cash and cash equivalents in the statement of financial position and can be used to meet the local payment obligations of the Russian subsidiaries. The Group itself can only access these bank deposits to a limited extent due to the applicable restrictions on the movement of capital, as there are monthly limits per company for transfers from Russia to the EU. In the case of a sale of Russian assets (e.g. properties or shares), the transfer of cash and cash equivalents in excess of this limit from Russia to the EU requires the approval of a Russian government commission and is subject to a discount on the assets being sold (50 per cent) as well as the payment of an exit tax of 15 per cent. Warimpex assesses whether the requirements for control defined by IFRS 10 are still met for 

{76}------------------------------------------------

the Russian subsidiaries on each reporting date. At present, the Group concludes that the shareholder rights can still be exercised, so no changes to the scope of consolidation are necessary.

The conflict in Ukraine initially had an indirect impact through rising inflation and higher energy and construction costs, which also affected the Group. With the exception of vacant spaces, higher energy costs were able to be charged to office tenants by way of the operating costs, while assumed higher future costs related to construction or renovations/tenant adaptations had a negative impact on property values. The pace of inflation diminished somewhat over the course of the year, whereas interest rates increased sharply due to the measures of the European Central Bank and the Bank of Russia. Warimpex considers the interest rate risk itself to be moderate, as the majority of the Group's financial liabilities are subject to fixed interest rates (see section 7.10.4.).

Depending on the duration of the conflict, other future financial or accounting effects on the consolidated financial statements cannot be ruled out.

The Group budget shows positive EBITDA (results of operating activities before finance income, taxes, depreciation, amortisation, and remeasurement) for the 2024 financial year even in the event that the rouble weakens and/or in the event of the loss of the planned operating result from the Russian subsidiaries. The financial planning includes sufficient liquidity, even in the absence of payments from Russian subsidiaries. The Management Board believes that short-term financing facilities will continue to be able to be extended and/or that liquidity will be generated from the sale of properties in line with the business model. Thus, the Management Board is confident that the continued existence of the Group is not threatened – including in connection with the conflict in Ukraine and the investments in Russia – so the going concern principle on which the consolidated financial statements are based is still fulfilled. Due to the volatile situation, the full scope of the economic effects of this ongoing geopolitical conflict is difficult to predict, and the Management Board is monitoring the developments in coordination with the Supervisory Board on an ongoing basis.

#### 3.4.2. Impact of the COVID-19 pandemic

No effects on the Group related to the COVID pandemic were discernible in 2023. The Hotels segment was impacted by revenue losses in the first half of the prior year.

The lease agreement for the InterContinental hotel in Warsaw, which is leased and operated by a 50/50 joint venture, was adjusted with regard to the amount and extended in the prior year (see section 9.1.3.).

The Group received coronavirus aid from the government in the 2022 financial year. These aid measures primarily consist of assistance from the interim aid IV package for the greet hotel in Darmstadt as well as short-time work aid and property tax reductions. In 2023, the Group received payments for COVID-related work absences in 2022.

To the extent it was possible to assign the coronavirus aid to a specific item, it was deducted from the relevant subsidised expenses in the consolidated financial statements (see section 3.16.). Subsidies for investments reduced the fixed assets and were distributed over the estimated useful lives of the respective assets. The individual amounts for each item are listed in the table below.

#### Overview of coronavirus aid:

|                                                                          | Cross reference | 2023 | 2022 |
|--------------------------------------------------------------------------|-----------------|------|------|
| Expenses from the operation of hotels<br>(including short-time work aid) | 6.2.            | –    | 252  |
| Other operating income                                                   | 6.3.            | –    | 101  |
| Personnel expenses<br>(including short-time work aid)                    | 6.4.1.          | 36   | 10   |
| Administrative expenses                                                  | 6.4.2.          | –    | 80   |
| Other expenses                                                           | 6.5.            | –    | 21   |
| Finance expenses                                                         | 6.8.            | –    | 41   |
|                                                                          |                 | 36   | 504  |

There were no receivables related to coronavirus aid measures as at the reporting date (31 December 2022: EUR 348 thousand – see section 7.6.).

#### 3.4.3. Measurement of the fair value (IFRS 13)

The Group measures non-financial assets such as investment properties and certain financial instruments such as equity instruments and – if present – derivatives at their fair value on each reporting date. The fair value is the price that would be paid for the transfer of an asset or a liability in a transaction at arm's length terms on the reporting date. In measuring the fair value, it is assumed that the transaction will take place on the primary market or, when such a market does not exist, on the most advantageous market.

All assets and liabilities for which the fair value is measured or that are reported in the consolidated financial statements are classified according to the following fair value hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

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Level 2: Measurement methods employing inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Measurement methods employing inputs other than quoted prices included within level 1 that are not observable for the asset or liability

#### 3.4.3.1. Valuation of property

Because of the importance of properties for the Group, the value of properties is generally determined by independent external experts with appropriate professional qualifications and current experience with the location and type of the property in question using recognised appraisal methods. The experts are selected by the Chief Financial Officer in coordination with the responsible project or asset managers. In the cases where there is a binding offer to buy a property or a purchase contract for a property, this is used for the valuation. As in the prior year, this was not the case as at 31 December 2023.

The relevant material inputs for the applied valuation methods, such as interest rates/yields, market rents, outstanding investment costs, and developer's profits, are defined in coordination with the external experts as well as the asset management team and Management Board on the basis of the market conditions prevailing as at the reporting date. Due to the current macroeconomic environment, elevated interest rates/yields are particularly prevalent as at the reporting date, which resulted in corresponding measurement losses during the financial year. Although initial moderate interest rate cuts and a stabilisation of economic conditions are anticipated in 2024, increased uncertainty is still to be expected in the current macroeconomic and geopolitical environment.

The appraisal method used by the expert depends on the type of property. In this, developed properties that generate regular returns (hotels and office properties), properties under development, and undeveloped plots of land are treated differently.

Income-based appraisal methods (investment method or discounted cash flow method) are used to determine the fair value of developed properties. This corresponds to level 3 of the fair value hierarchy. Regardless of the appraisal method, planning uncertainties are accounted for by selecting an appropriate interest rate. Both the contracted rental revenue as at the reference date and the projected standard rental revenue after the expiration of leases are taken into account in the appraisal of office properties.

The residual value method is generally used for properties

under development. For this, the fair value is first determined on the basis of the expected cash flows. The outstanding investment costs and an appropriate project profit for the developer are deducted from this. The development profit is calculated as a percentage of the outstanding investment costs, and covers the development risk, among other things.

The fair value of undeveloped properties (reserve properties) is determined using the comparative method, based on standard market prices per square metre.

The fair value determined by the experts is checked by the responsible project/asset manager with regard to the assumptions and input parameters applied by the expert as well as the changes compared with the previous valuation date and is approved for posting by the Chief Financial Officer.

#### Remeasurement results for investment properties:

Warimpex recognises its investment properties using the fair value model taking external appraisals into account. The remeasurement results that stem from the changes in the fair values are recognised through profit or loss.

Please see section 7.1. for information about the changes in investment properties, the valuation input parameters, and the associated sensitivity information. The gains/losses on remeasurement are shown in section 6.6.

## Impairment of and reversal of impairments on hotel properties (see also sections 6.6. and 7.2.):

The Group generally recognises the hotel properties it operates itself as property, plant, and equipment and regularly reviews them for impairment. This requires the estimation of the recoverable amount. The recoverable amount is the higher of the value in use or fair value, less selling expenses. The recoverable amount of each property is determined on the basis of external appraisals.

Changes in the recoverable amount are recognised on the income statement as follows: impairments in their full amount and impairment reversals only up to the amortised cost of acquisition. The amortised cost of acquisition is the amount that would result after accounting for scheduled depreciation and amortisation without any impairment charges in prior years.

The recoverable amount depends heavily on the applied exit yield and the expected future cash inflows.

The impairment reversals and impairment charges are shown in section 6.6. Please see section 7.2. for information on the carrying amounts of these assets.

{78}------------------------------------------------

#### 3.4.3.2. Measurement of financial instruments

If the Group cannot measure the fair value of recognised financial instruments using listed prices on active markets, it is determined using measurement methods including the discounted cash flow approach. The inputs used in the valuation models are based on observable market data to the greatest extent possible (level 2 of the hierarchy). If such data is not available, discretionary decisions have to be made by management (level 3 of the hierarchy). This discretion pertains to inputs such as liquidity risk, default risk, and volatility. When changes are made to the assumptions for these factors, this can have an effect on the recognised fair values of the financial instruments.

One equity instrument was measured at fair value in the consolidated statement of financial position as at 31 December 2022. This instrument was sold during the financial year. Additional information is provided in section 7.7. Please refer to sections 3.6. and 8.1. for further information about financial instruments and fair values.

#### 3.4.4. Measurement of revenues

For the application of IFRS 15 (Revenue from Contracts with Customers), the Group made discretionary decisions for the measurement of the revenues in the Investment Properties segment pertaining to whether the Group is to be considered the principal or the agent when it comes to earnings from operating costs in connection with the letting of office space.

The Group determined that it acts as the agent with regard to the earnings from operating costs that are charged to the tenant based on consumption without a markup, such as electricity and water, and therefore recognises these earnings as transitory items, which reduce the corresponding expenses. Earnings from operating costs for which the Group acts as the principal are recognised as revenues pursuant to IFRS 15.

## 3.4.5. Determination of the functional currency of foreign business operations

The functional currency of subsidiaries deviates from the local currency in some cases. In most cases, the rental revenue from office properties in the Group is denominated in euros – with the exception of Russia or agreements concluded with government entities. At hotels in the EU, the revenue is also primarily denominated in euros. The goods and services required for letting out office properties and for hotel operations are paid for in part in the local currency and in part in euros. Financing throughout the Group is generally conducted in euros. Applying the discretion permitted in IAS 21.12, the euro is defined as the functional currency for the subsidiaries whose revenue is denominated in euros. The functional currency of each subsidiary is shown in the overview of subsidiaries (section 4.1.1.).

#### 3.4.6. Recognition of deferred tax assets

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the loss carryforwards of unused tax credits can be utilised. The amount of deferred tax assets is determined at the discretion of the management based on the expected time of occurrence and the amount of future taxable income as well as future tax planning strategies.

Other deferred tax assets are only shown in the statement of financial position if tax budgeting for the individual taxable entity makes it appear probable that the deferrals can actually be utilised.

Further information is provided in section 6.10. Income taxes and section 7.5. Deferred taxes (tax assets and liabilities).

#### 3.4.7. Estimation uncertainties due to climate-related risks

Warimpex assesses climate-related risks on an ongoing basis (see item 8.2.5.). Due to the fact that the majority of the business activities are Taxonomy-eligible, the Group anticipates that no need for material carrying amount adjustments stemming from climate-related risks will arise in the foreseeable future due to the fact that current climate-related aspects are already taken into account in property valuations and no balance-sheet risks beyond this have been identified.

{79}------------------------------------------------

#### 3.5. Joint ventures and associates

Interests are qualified as joint ventures when an agreement is in place under which the contract partners that exercise joint control over the arrangement have rights to the net assets of the arrangement.

The Group recognises its net investments in joint ventures (IFRS 11) and its interests in associates using the equity method.

The Group held no interests in associates during the financial year. The composition of and changes in the net investments in joint ventures and summarised financial information about the key joint ventures can be found in section 7.3.

#### 3.6. Financial instruments

#### 3.6.1. Financial assets

In accordance with IFRS 9, financial assets are classified as follows upon initial recognition:

- 1. Measured at amortised cost
- 2. Measured at fair value through other comprehensive income
- 3. Measured at fair value through profit or loss

The classification is based on the Group's business model and the characteristics of the contractual cash flows. In each case, assets are recognised at their fair value upon initial recognition, taking the provisions of IFRS 9 into account. The transaction costs are also recognised except in the case of financial assets recognised at fair value through profit or loss.

#### Measured at amortised cost

Financial assets are recognised at amortised cost when the objective of the business model is to hold the asset in order to collect the contractual cash flows ("business model test") and the contractual terms give rise on specified dates to cash flows from payments of principal and interest ("cash flow characteristics test"). The objective of the Group's business model is to collect the contractual cash flows from payments of principal and in some cases interest, so the Group's financial assets are generally recognised at amortised cost. Interest revenue is to be calculated by applying the effective interest rate method to the gross carrying amount. There are exceptions for credit-impaired assets. In the event of changes in contractual cash flows that do not result in derecognition, the gross carrying amount is recalculated and the difference compared with the previous gross carrying amount is recognised as a modification gain or modification loss.

Measured at fair value through other comprehensive income Financial assets are recognised at fair value through other comprehensive income if the asset is either

1. an equity instrument that is not held for trading, or

2. a debt instrument in a hold to collect and sell business model with cash flows that are solely payments of principal and interest.

With regard to the equity instruments held within the Group, Warimpex has elected to recognise value changes in other comprehensive income. Later reclassification of cumulated value changes (recycling) is not permitted. Dividends from the equity instruments are recognised through profit or loss.

IFRS 9 stipulates that debt instruments in a hold to collect and sell business model that meet the conditions of the cash flow characteristics test must be measured at fair value through other comprehensive income. Value changes are not recognised through profit or loss, but are instead initially recognised in other comprehensive income. Later reclassification to the income statement (recycling) is permitted.

#### Measured at fair value through profit or loss

Derivatives and debt instruments that do not meet the conditions of the business model test and cash flow characteristics test described above – and thus are not measured at amortised cost or at fair value through other comprehensive income – must be recognised at fair value through profit or loss according to IFRS 9. Value changes are recognised in the income statement.

#### 3.6.2. Impairment of financial assets

The amount of the impairment and the recognised interest is determined in three stages in accordance with IFRS 9:

Stage 1: Expected losses in the amount of the present value of an expected 12-month loss must be measured upon initial recognition.

Stage 2: If there is a significant increase in the default risk, the risk provision must be increased to the amount of the expected full lifetime losses for the entire remaining term.

Stage 3: When there is objective evidence of impairment, interest revenue must be recognised on the basis of the net carrying amount, i.e. the carrying amount less risk provisions.

The Group applies the simplified approach for trade receivables and contract assets that do not contain a significant financing component. Under this approach, impairments must be recognised in the amount of the expected lifetime losses for the entire remaining term.

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#### 3.6.3. Financial liabilities

When recognised for the first time, financial liabilities are either categorised as financial liabilities measured at amortised cost, as financial liabilities measured at fair value through profit or loss, or as derivative financial instruments in a hedging relationship.

Upon initial recognition, financial liabilities are recognised at fair value; financial liabilities that are recognised at amortised cost are recognised at their fair value less directly allocable transaction costs upon initial recognition.

#### Financial liabilities measured at amortised cost:

After initial recognition, financial liabilities are recognised at amortised cost using the effective interest rate method. Gains and losses are recognised through profit or loss when the liabilities are derecognised, as well as through the amortisation process.

## Financial liabilities measured at fair value through profit or loss:

The category of financial liabilities measured at fair value through profit or loss includes all derivative financial instruments with negative fair values (including separately recognised embedded derivatives) not held for hedging purposes. Gains and losses from financial liabilities that are recognised at fair value are recorded in the income statement.

#### Derivative financial instruments with hedging relationships:

The Group occasionally employs derivative financial instruments with hedging relationships (cash flow hedges). These serve to protect against the risk of fluctuations in cash flows associated with an asset or liability on the statement of financial position, for example loans subject to variable interest, a risk that may materialise related to a forecast transaction, or the currency risk associated with a firm off-balance-sheet commitment.

The Group did not hold any derivative financial instruments in a hedging relationship during the reporting period.

## 3.7. Leases

#### The Group as lessee:

According to IFRS 16, the Group recognises both a right-ofuse asset on the assets side of the consolidated statement of financial position and the corresponding lease liability on the liabilities side for leases in which it is the lessee. There are exceptions from the recognition obligation for the capitalisation of short-term leases (with a [remaining] term of less than one year) and leases of low-value assets (up to roughly EUR 5,000). The Group has decided to apply these exceptions. When determining the useful life of the right-of-use asset, the Group assesses whether it is reasonably certain that an extension option will be exercised, taking into account the overall circumstances and, in particular, the economic incentives. The extension option is only taken into account when determining the useful life if it is reasonably certain that it will be exercised.

The first-time recognition of the right of use encompasses the following components: the initial measurement of the lease liability (present value of the lease payments), lease payments made before or at the beginning of the leasing arrangement, direct initial costs of the lessee, and any dismantling costs. Subsequently, the right of use is recognised at amortised cost pursuant to IAS 16 Property, Plant and Equipment and IAS 36 Impairment of Assets (see section 7.2.1.). This does not include investment properties that are measured at fair value pursuant to IAS 40 (see section 7.1.1.). The Group is party to long-term lease agreements for plots of land (perpetual annuity) in connection with investment properties. Due to the application of IFRS 16, the rights of use from these lease agreements increase the previously determined fair value of the property, while the associated lease liabilities are presented on the liabilities side.

Lease liabilities are discounted using the rate implicit in the agreement and reduced by the lease payments. Interest expenses and variable lease payments that are not part of the lease liability are recognised through profit or loss in the income statement.

#### The Group as lessor:

Leases under which all material risks and benefits incidental to ownership of the leased item are not transferred from the Group to the lessee are classified as operating leases. The Group has concluded leases for the commercial letting of its investment properties (primarily office properties) and classified them as operating leases. According to IFRS 16.B33, income from land tax and insurance charged to tenants was assigned to rental revenue and not revenues in accordance with IFRS 15.

The Group has not concluded any leases as a lessor that meet the requirements for classification as finance leases.

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#### 3.8. Foreign currency transactions and balances

The financial statements of foreign companies are translated into euros according to the functional currency concept. The functional currency for each entity within the Group is determined on the basis of the relevant criteria (see section 3.4.5.). The items contained in the financial statements of each entity are translated on the basis of the functional currency.

Where the transactions that are relevant in determining an entity's functional currency change, this will lead to a change in the functional currency of the respective entity. An overview of the functional currencies is presented in section 4.1.1.

#### Foreign currency transactions and balances:

Foreign currency transactions are translated into the functional currency by the Group member company at the valid spot rate on the date of the transaction. Monetary assets and liabilities in a foreign currency are translated into the functional currency on the reporting date using the valid spot rate on the reporting date.

When the respective local currency is not the functional currency for foreign businesses, current income and expenses are translated on the basis of monthly interim financial statements at the weighted average exchange rate for the respective month. Significant transactions are translated at the spot rate that is valid for the date of the transaction. All translation differences are recognised in profit or loss.

Non-monetary items measured at historical cost in a foreign currency are translated at the valid exchange rate on the date of the transaction.

## Translation of the financial statements of the entities included in the consolidated financial statements (foreign businesses):

The assets and liabilities of the foreign subsidiaries are translated into euros at the valid rate on the reporting date. The income and expenses are translated at the spot rate on the date of the transaction, or at average rates for the purposes of simplification. All translation differences that arise are recognised in other comprehensive income. Upon disposal of a foreign entity, the deferred cumulated amount related to the particular subsidiary previously recognised in other comprehensive income is transferred to the profit or loss statement. When settling internal monetary assets and debts within the Group, the translation difference is recognised through profit or loss so far as the difference is not a translation difference from monetary items that are part of the net investment in a foreign business. These are recognised in the other comprehensive income, and are transferred from equity to the profit or loss statement in the event that the net investment is sold.

#### Exchange rates:

The exchange rates that have been applied for all items that are translated at the closing rate as at the reporting date are as follows:

|                  |           | 31/12/2023 | 31/12/2022 |
|------------------|-----------|------------|------------|
|                  |           |            |            |
| Polish zloty     | (PLN/EUR) | 4.3480     | 4.6899     |
| Hungarian forint | (HUF/EUR) | 382.78     | 400.25     |
| Russian rouble   | (RUB/EUR) | 99.1919    | 75.6553    |
| Czech koruna     | (CZK/EUR) | 24.7250    | 24.1150    |

#### 3.9. Investment properties

The Group recognises investment properties at fair value according to IAS 40. Changes in the fair value result in measurement gains or losses that are recognised through profit or loss during the financial year.

Investment properties are classified as such when there is no intention to sell them or use them for Group purposes and they are held to generate rental revenue or value increases. The Group reclassified a reserve property from property, plant, and equipment to investment properties during the previous financial year (see section 7.2.1.).

Rent incentives (e.g. rent-free periods) and the initial costs of leases are deferred in accordance with the relevant IFRS regulations and recognised through profit or loss over the term of the given lease. Such deferred items are recognised in the same way as additions to property and thus reduce the remeasurement result, while the release of these deferred items in the subsequent years increases the remeasurement result over the term. Where applicable, the value of investment properties is increased by rights of use from long-term lease agreements in connection with properties recognised in accordance with IAS 40 (see also section 3.7. on IFRS 16).

Investment properties are derecognised upon the sale of such properties or when no further continued use is possible or no future economic benefit is expected from their disposal. Gains or losses from the disposal of investment property are recognised through profit or loss at the time at which the property is disposed of or sold.

#### 3.10. Property, plant, and equipment

Property, plant, and equipment that is eligible for depreciation is recognised at cost of acquisition or production less sched

{82}------------------------------------------------

uled depreciation and impairment charges and plus any impairment reversals in accordance with IAS 16. Scheduled depreciation is applied on a straight-line basis and is calculated for the estimated useful lives of the assets. Where significant components of an item of property, plant, and equipment have different useful lives, depreciation is based on the useful lives of these components. Replacements that are capitalised are also written down over their estimated useful lives. The carrying amounts of property, plant, and equipment items are tested for impairment whenever there is evidence to indicate that the carrying amount of the asset is greater than its recoverable amount.

For accounting purposes, hotels are separated into their most significant components (land and rights equivalent to land, building fabric, heating facilities and other technical equipment, and fixtures) and depreciated individually. Please see section 7.2. in the notes for information about the useful lives.

Production costs of property, plant, and equipment developed by the Group contain direct expenses plus allocated material and production overheads. Borrowing costs are capitalised according to IAS 23 where they can be directly attributed to the project under development through specific project financing or loans from joint venture partners or shareholders, for example. These costs are also written down over the estimated useful economic lives of the respective assets.

A property, plant, and equipment item is derecognised upon its disposal or when no further economic benefit is expected from the continued use or disposal of the asset. The gains or losses associated with the derecognition of the asset are determined by calculating the difference between the net selling proceeds and the carrying amount of the asset and are recognised through profit or loss in the period in which the asset is derecognised.

#### 3.11. Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and short-term deposits with a maturity of three months or less from the time of acquisition.

#### 3.12. Pensions and other employee benefits

Provisions for severance payments and long-term service bonuses for employees and members of the Management Board are primarily recognised for employees of Austrian Group companies, since employees in Poland, Hungary, Germany, and Russia are not entitled to similar benefits and local laws only provide for a very limited range of employee benefits.

The provisions are measured using the projected unit credit method. For this, the expected benefits to be paid are distributed according to the active time of the employee until retirement or until the last planned anniversary bonus payment. The provision amounts are determined on the reporting date by an external expert in the form of an actuarial opinion.

Actuarial valuation changes to provisions for severance benefits are recognised in other comprehensive income in the period in which they are incurred according to IAS 19. The interest component is taken into account in finance expenses. Provisions for pensions and other long-term employee benefits pertain solely to the Development and Services segment.

#### 3.13. Revenue recognition

#### Income recognition in accordance with IFRS 15:

Pursuant to IFRS 15, revenue is recognised according to the following model:

- 1. Identification of the contract with a customer
- 2. Identification of the individual performance obligations in the contract
- 3. Determination of the transaction price
- 4. Allocation of the transaction price to the performance obligations in the contract
- 5. Recognition of the revenue when the company satisfies a performance obligation
- (criterion: transfer of control)

The Group's revenues are recognised as follows:

#### *Hotels revenues:*

Revenue in the Hotels segment consists mainly of revenue for overnight stays (lodging) and revenue from the sale of food and beverages. For these types of performance obligations, revenue is recognised at a point in time. There are no customer loyalty programmes in place in the Group that have a material impact on the timing or the amount of the revenue recognition.

#### *Investment Properties revenues:*

The revenue in this segment is primarily made up of rental revenue as well as earnings from facility management and operating costs. When negotiating leases for office space, not only the rent but also the fees for operating costs and in some cases other services are generally agreed together in the contracts with the tenants. Discretionary decisions regarding the recognition of charged operating expenses are explained in section 3.4.4.

IFRS 16 (Leases) stipulates that lease and non-lease components of a contract must be separated and the non-lease 

{83}------------------------------------------------

components must be recognised separately in accordance with IFRS 15. Therefore, rental revenue is recognised in accordance with IFRS 16 and other income from contracts with tenants in accordance with IFRS 15.

#### *Development and Services revenues:*

In the development segment, IFRS 15 stipulates the recognition of revenue over a period of time for properties that have already been sold but are still in development. Warimpex does not perform such services at this time. Property sales, which are generally recognised at a point in time as at the closing date, also fall under this business segment. Other customer contracts in the Development and Services segment are analysed individually according to the requirements of IFRS 15 and the revenues are recognised accordingly.

#### Gains from the sale of subsidiaries (IFRS 10):

Income is recognised when control of the subsidiary is lost in accordance with IAS 10.25. In the case of the sale of a subsidiary, the difference between the sale price and the net assets plus cumulated foreign currency translation differences recognised in other comprehensive income and the goodwill are recognised through profit or loss at the point that control is transferred.

#### 3.14. Deferred taxes

Deferred income tax is provided for using the liability method on temporary differences as at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

The Group reviews the carrying amount of deferred income tax assets on each reporting date and does not recognise tax assets for which it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilised. Unrecognised deferred tax assets are reassessed on each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be realised.

Income tax related to items recognised either in other comprehensive income or directly in equity is not included in the profit or loss for the period.

#### 3.15. Government assistance

The Group received government assistance in connection with the coronavirus pandemic. It is recognised in the financial statements as soon as there is an appropriate degree of certainty regarding the fulfilment of the conditions associated with the assistance and the granting of the assistance. When the conditions are met, the Group recognises the assistance in the period for which the compensation for losses or the financial support is intended. Otherwise, appropriate information is provided.

Provided that it can be assigned to a specific item, Warimpex offsets the assistance against the subsidised expenses in the income statement. Subsidies for investments initially reduce the fixed assets and are written off through profit or loss over the estimated useful lives of the respective assets. Other subsidies are recognised on the income statement under other operating income.

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## [04] Information about the Companies Included in the Consolidated Financial Statements

#### 4.1. Information about consolidated subsidiaries

#### 4.1.1. Overview of subsidiaries

The following entities were fully consolidated in these financial statements:

| Included                                                 | Domicile/<br>country | Voting rights share<br>and equity interest |          | Share<br>capital | Currency<br>of capital | Functional<br>currency* | Activity/<br>segment |
|----------------------------------------------------------|----------------------|--------------------------------------------|----------|------------------|------------------------|-------------------------|----------------------|
| subsidiaries                                             |                      | direct                                     | indirect |                  |                        |                         |                      |
|                                                          |                      |                                            |          | in thousands     |                        |                         |                      |
| <b>100% interests:</b>                                   |                      |                                            |          |                  |                        |                         |                      |
| Grassi Hotelbeteiligungs- und Errichtungs GesmbH         | A-Vienna             | 100%                                       | –        | 2,943            | EUR                    | EUR                     | DS                   |
| Grassi H1 Hotelbeteiligungs GmbH                         | A-Vienna             | 100%                                       | –        | 35               | EUR                    | EUR                     | DS                   |
| Warimpex Leasing GmbH                                    | A-Vienna             | 100%                                       | –        | 500              | EUR                    | EUR                     | DS                   |
| Boyauville Invest GmbH                                   | D-Munich             | 100%                                       | –        | 25               | EUR                    | EUR                     | H/DS                 |
| Boyauville Betriebs GmbH                                 | D-Darmstadt          | 100%                                       | –        | 25               | EUR                    | EUR                     | H                    |
| Memos GmbH                                               | D-Darmstadt          | 100%                                       | –        | 25               | EUR                    | EUR                     | DS                   |
| REVITÁL ZRt.                                             | HU-Budapest          | 100%                                       | –        | 220,500          | HUF                    | HUF                     | DS                   |
| ELSBET Kft.                                              | HU-Budapest          | 100%                                       | –        | 103,000          | HUF                    | EUR                     | IP                   |
| Hamzsa-Office Kft.1                                      | HU-Budapest          | 100%                                       | –        | 15               | HUF                    | EUR                     | DS                   |
| Warimpex Property HU 2 Kft.                              | HU-Budapest          | 100%                                       | –        | 600              | HUF                    | HUF                     | DS                   |
| WX Office Development sp. z o.o.                         | PL-Krakow            | 100%                                       | –        | 50               | PLN                    | PLN                     | DS                   |
| Multi Development sp. z o.o.                             | PL-Krakow            | 100%                                       | –        | 50               | PLN                    | PLN                     | DS                   |
| → WX Office Innovation sp. z o.o.                        | PL-Krakow            | 3%                                         | 97%      | 496              | PLN                    | EUR                     | IP/DS                |
| Memos sp. z o.o.                                         | PL-Krakow            | 100%                                       | –        | 5                | PLN                    | PLN                     | DS                   |
| Mogilska Office 3 sp. z o.o                              | PL-Krakow            | 100%                                       | –        | 5                | PLN                    | PLN                     | DS                   |
| Mogilska Office 4 sp. z o.o.                             | PL-Krakow            | 100%                                       | –        | 5                | PLN                    | PLN                     | DS                   |
| Stelio sp. z o.o.                                        | PL-Krakow            | 100%                                       | –        | 5                | PLN                    | PLN                     | DS                   |
| Hotel Rondo Krakow sp. z o.o.                            | PL-Krakow            | 100%                                       | –        | 39,685           | PLN                    | PLN                     | DS                   |
| Mogilska Office Development sp. z o.o.                   | PL-Krakow            | 100%                                       | –        | 7,045            | PLN                    | PLN                     | DS                   |
| → Limonite Company sp. z o.o.                            | PL-Krakow            | –                                          | 100%     | 8,035            | PLN                    | PLN                     | DS                   |
| WX Office Development 2 sp. z o.o.                       | PL-Łódź              | 100%                                       | –        | 150              | PLN                    | EUR                     | DS                   |
| WX Finance CZ s.r.o.2                                    | CZ-Prague            | 100%                                       | –        | 1                | CZK                    | EUR                     | IP                   |
| → KONTAS sp. z o.o.2, 3                                  | PL-Krakow            | –                                          | 100%     | 5                | PLN                    | PLN                     | IP                   |
| WX Financing sp. z o.o.                                  | PL-Krakow            | 100%                                       | –        | 5                | PLN                    | PLN                     | DS                   |
| Warimpex Polska sp. z o.o.                               | PL-Warsaw            | 100%                                       | –        | 2,000            | PLN                    | PLN                     | DS                   |
| WX Management Services sp. z o.o. Prozna Development SKA | PL-Warsaw            | 100%                                       | –        | 50               | PLN                    | PLN                     | DS                   |
| Kopernik Development sp. z o.o.                          | PL-Krakow            | 100%                                       | –        | 25               | PLN                    | PLN                     | DS                   |
| AO Avielen Parking                                       | RU-St. Petersburg    | 100%                                       | –        | 30               | RUB                    | RUB                     | IP                   |
| AO Atmosfera                                             | RU-St. Petersburg    | 100%                                       | –        | 30               | RUB                    | RUB                     | DS                   |
| OOO Fomalhaut                                            | RU-St. Petersburg    | 100%                                       | –        | 1,000            | RUB                    | RUB                     | DS                   |
| AO Avielen A.G.                                          | RU-St. Petersburg    | 100%                                       | –        | 370,001          | RUB                    | RUB                     | H/IP/DS              |
| OOO Aval Invest                                          | RU-St. Petersburg    | 100%                                       | –        | 1,000            | RUB                    | RUB                     | DS                   |
| → AO Micos5                                              | RU-St. Petersburg    | –                                          | 100%     | 43               | RUB                    | RUB                     | IP                   |
|                                                          |                      |                                            |          |                  |                        |                         |                      |
| <b>Non-controlling interests:</b>                        |                      |                                            |          |                  |                        |                         |                      |
| EI Invest Sp. z o.o.                                     | PL-Warsaw            | 81%                                        | –        | 1,200            | PLN                    | PLN                     | DS                   |

Explanations:

H = Hotels segment

IP = Investment Properties segment

DS = Development and Services segment

→ Indirect subsidiaries with the company specified above as the parent company.

\* Discretionary decisions on the functional currency are explained in section 3.4.5.

<sup>1</sup> This company was sold in 2022.

<sup>2</sup> These companies were acquired or founded in 2022.

<sup>3</sup> The shares in this company were transferred in an intragroup transaction in 2022. <sup>4</sup> These companies were liquidated during the financial year.

<sup>5</sup> OOO Aval Invest holds 55.98 per cent of the shares in AO Micos and AO Avielen holds 44.02 per cent.

{85}------------------------------------------------

## 4.1.2. Information about subsidiaries with non-controlling interests

Overview of non-controlling interests:

|                      |                  | Voting rights<br>and capital share<br>non-controlling interests |          | Profit/loss attributable<br>to non-controlling<br>interests |      | Total<br>non-controlling<br>interests |          |
|----------------------|------------------|-----------------------------------------------------------------|----------|-------------------------------------------------------------|------|---------------------------------------|----------|
| Company              | Domicile/country | 31/12/23                                                        | 31/12/22 | 2023                                                        | 2022 | 31/12/23                              | 31/12/22 |
| El Invest Sp. z o.o. | PL-Warsaw        | 19%                                                             | 19%      | (13)                                                        | 25   | 133                                   | 125      |

#### 4.1.3. Other disclosures

Nature and extent of material restrictions in connection with subsidiaries:

In some cases, subsidiaries are subject to contractual restrictions on the use of assets and the payment of interest and dividends to shareholders and on the repayment of shareholder loans based on existing credit agreements. For information on the granting of mortgage collateral to lenders, please see the information about the carrying amounts of the assets in question in section 7.1. Investment properties and section 7.2. Property, plant, and equipment. Restrictions related to Russian subsidiaries are explained in section 3.4.1.

There are no restrictions based on protection rights of non-controlling interests in the Group.

{86}------------------------------------------------

## [05] Property Sales and Changes in the Scope of Consolidation

#### 5.1. Disposal of shares and property

No transactions related to fully consolidated properties took place during the financial year.

For information on the sale of the 9.88 per cent stake in the holding company for Palais Hansen in Vienna, please see section 7.7.

#### 5.2. Changes in the scope of consolidation

An ancillary Group company in Poland was liquidated during the financial year. In the prior year, the sale of Hamzsa-Office kft. (see section 5.3.) led to a corresponding change in the scope of consolidation.

#### 5.3. Property sales in the previous financial year

In June 2022, the company Hamzsa-Office Kft. was sold as the owner of B52 Office in Budapest.

#### Effects of property/interest sales on the consolidated financial statements as at 31 December 2022:

| Consolidated statement of financial position:                | Assets   | Equity and<br>liabilities |
|--------------------------------------------------------------|----------|---------------------------|
| Investment properties                                        | (9,949)  |                           |
| Other receivables                                            | (15)     |                           |
| Cash and cash equivalents                                    | (366)    |                           |
| Deferred tax liabilities                                     |          | 25                        |
| Other non-current liabilities (discharged shareholder loans) |          | 3,500                     |
| Other current liabilities                                    |          | 29                        |
|                                                              | (10,330) | 3,781                     |
| Carrying amount of the disposed net assets                   | (6,549)  |                           |

| Consolidated income statement:                                                           | 2022    |
|------------------------------------------------------------------------------------------|---------|
| Agreed (net) purchase price for the properties/shares                                    | 9,421   |
| Carrying amount of the proportionate net assets of the sold properties/companies         | (6,549) |
| Directly allocable expenses in connection with the sale of interests and properties      | (58)    |
| Net result                                                                               | 2,821   |
| Consolidated cash flow:                                                                  | 2022    |
| Agreed (net) purchase price for the properties/shares                                    | 9,421   |
| Purchase price for discharge of shareholder loans                                        | 3,500   |
| less directly allocable expenses in connection with the sale of interests and properties | (58)    |
|                                                                                          | 12,870  |
| less outflow of cash and cash equivalents                                                | (366)   |

{87}------------------------------------------------

## [06] Notes to the Consolidated Income Statement

#### 6.1. Revenues

The revenues are broken down according to the business segments of the Group.

The following table breaks revenues down into revenues according to IFRS 15 and other revenues:

|                                                   | Investment<br>Properties | Hotels | Development<br>and Services | Total  |
|---------------------------------------------------|--------------------------|--------|-----------------------------|--------|
| Geographical composition in 2022:                 |                          |        |                             |        |
| Russia                                            | 2,794                    | 5,761  | 10                          | 8,566  |
| Poland                                            | 1,378                    | –      | 2,562                       | 3,940  |
| Germany                                           | –                        | 2,749  | –                           | 2,749  |
| Hungary                                           | 362                      | –      | 46                          | 408    |
| Austria                                           | –                        | –      | 91                          | 91     |
| Revenues according to IFRS 15                     | 4,534                    | 8,510  | 2,709                       | 15,753 |
| Russia                                            | 19,830                   | –      | –                           | 19,830 |
| Poland                                            | 6,688                    | –      | –                           | 6,688  |
| Germany                                           | –                        | 763    | –                           | 763    |
| Hungary                                           | 2,102                    | –      | –                           | 2,102  |
| Revenues according to IFRS 16<br>(rental revenue) | 28,620                   | 763    | –                           | 29,383 |
| Total revenues                                    | 33,154                   | 9,273  | 2,709                       | 45,136 |
|                                                   |                          |        |                             |        |
| Geographical composition in 2023:                 |                          |        |                             |        |
| Russia                                            | 3,613                    | 5,607  | 11                          | 9,231  |
| Poland                                            | 1,583                    | –      | 1,355                       | 2,938  |
| Germany                                           | –                        | 4,522  | –                           | 4,522  |
| Hungary                                           | 282                      | –      | 46                          | 328    |
| Austria                                           | –                        | –      | 41                          | 41     |
| Revenues according to IFRS 15                     | 5,478                    | 10,129 | 1,453                       | 17,060 |
| Russia                                            | 21,610                   | –      | –                           | 21,610 |
| Poland                                            | 8,074                    | –      | –                           | 8,074  |
| Germany                                           | –                        | 1,179  | –                           | 1,179  |
| Hungary                                           | 1,763                    | –      | –                           | 1,763  |
| Revenues according to IFRS 16<br>(rental revenue) | 31,447                   | 1,179  | –                           | 32,625 |
| Total revenues                                    | 36,925                   | 11,308 | 1,453                       | 49,685 |

The revenue in the Development and Services segment includes revenue with joint ventures in the amount of EUR 20 thousand (2022: EUR 20 thousand).

{88}------------------------------------------------

#### 6.2. Expenses directly attributable to revenues

|  |  |  |  | 6.3. Other operating income |
|--|--|--|--|-----------------------------|
|--|--|--|--|-----------------------------|

|                                                 | 2023    | 2022    |
|-------------------------------------------------|---------|---------|
| Composition of<br>direct Hotels expenses:       |         |         |
| Expenses for materials<br>and services rendered | (4,059) | (4,271) |
| Personnel expenses                              | (274)   | (203)   |
| Other expenses                                  | (2,444) | (1,881) |
|                                                 | (6,778) | (6,355) |

|                                                          | 2023    | 2022    |
|----------------------------------------------------------|---------|---------|
| Composition of direct<br>Investment Properties expenses: |         |         |
| Expenses for materials<br>and services rendered          | (5,982) | (4,952) |
| Personnel expenses                                       | (2,617) | (2,116) |
| Other expenses                                           | (452)   | (389)   |
|                                                          | (9,051) | (7,457) |

|                                                             | 2023    | 2022    |
|-------------------------------------------------------------|---------|---------|
| Composition of direct Development<br>and Services expenses: |         |         |
| Expenses for materials<br>and services rendered             | (1,206) | (2,224) |
| Personnel expenses                                          | (75)    | (63)    |
|                                                             | (1,281) | (2,288) |
|                                                             | 2023    | 2022    |
| Composition:                                                |         |         |
| Sale of property,<br>plant, and equipment                   | 171     | -       |
| Coronavirus aid                                             | -       | 101     |
| Sundry                                                      | 678     | 1,273   |
|                                                             | 849     | 1,374   |

The sundry other income primarily results from partial payments related to the early termination of leases. In the prior year, this item included income in connection with the termination of the hotel management agreement in St. Petersburg as well as income from the release of provisions for contractually agreed guarantees.

#### 6.4. Administrative expenses

|                               | 2023     | 2022     |
|-------------------------------|----------|----------|
| Composition:                  |          |          |
| Other personnel expenses      | (6,846)  | (9,451)  |
| Other administrative expenses | (3,527)  | (4,671)  |
|                               | (10,374) | (14,122) |

The individual components of the administrative expenses are explained in sections 6.4.1. and 6.4.2.

{89}------------------------------------------------

#### 6.4.1. Other personnel expenses

|                                                                                              | 2023    | 2022     |
|----------------------------------------------------------------------------------------------|---------|----------|
| Composition:                                                                                 |         |          |
| Wages and salaries                                                                           | (8,289) | (10,712) |
| Ancillary wage and salary costs                                                              | (1,196) | (946)    |
| Coronavirus aid                                                                              | 36      | 57       |
| Expenses for posted employees                                                                | –       | (30)     |
| Expenses/income related to<br>holiday, severance, pension, and<br>anniversary bonus benefits | (363)   | (202)    |
|                                                                                              | (9,812) | (11,834) |
| Less personnel expenses directly<br>attributable to revenues                                 | 2,966   | 2,383    |
| Other personnel expenses                                                                     | (6,846) | (9,451)  |

During the reporting period, the Group had an average of 181 (2022: 160) employees.

Please see section 9.3.2.3. for information about directors' remuneration.

#### 6.4.2. Other administrative expenses

|                                                                   | 2023    | 2022    |
|-------------------------------------------------------------------|---------|---------|
| Composition:                                                      |         |         |
| Administrative expenses                                           | (1,635) | (1,799) |
| Coronavirus aid                                                   | –       | 80      |
| Legal and consulting expenses                                     | (1,145) | (2,063) |
| Supervisory Board remuneration                                    | (180)   | (166)   |
| Other administration-<br>related expenses                         | (567)   | (723)   |
|                                                                   | (3,527) | (4,671) |
|                                                                   | 2023    | 2022    |
| Composition:                                                      |         |         |
| Property costs                                                    | (2,923) | (2,683) |
| Coronavirus aid                                                   | –       | 21      |
| Public relations, stock exchange<br>listing, and sales            | (379)   | (405)   |
| Non-deductible input taxes                                        | (567)   | (70)    |
| Other taxes                                                       | –       | (77)    |
| Foreign exchange differences                                      | (1)     | (788)   |
| Rental expenses for<br>short-term leases                          | (15)    | (24)    |
| Rental expenses for<br>low-value assets                           | (32)    | (10)    |
| Sundry other expenses                                             | (447)   | (841)   |
|                                                                   | (4,363) | (4,877) |
| Less administrative expenses<br>directly attributable to revenues | 2,928   | 2,266   |
| Other expenses                                                    | (1,435) | (2,611) |

Fees were paid to the Group financial auditor, Ernst & Young Wirtschaftsprüfungs GmbH, Vienna, for the financial year as follows: EUR 129 thousand (2022: EUR 117 thousand) for auditing services, and EUR 19 thousand (2022: EUR 7 thousand) for other services.

#### 6.5. Other expenses

Property costs consist of owner expenses such as maintenance, insurance premiums, and property taxes.

{90}------------------------------------------------

## 6.6. Depreciation, amortisation, and remeasurement

|                                                                                 | 2023     | 2022     |
|---------------------------------------------------------------------------------|----------|----------|
|                                                                                 |          |          |
| Composition:                                                                    |          |          |
| Scheduled depreciation and<br>amortisation on property, plant,<br>and equipment | (1,866)  | (2,057)  |
| Scheduled depreciation<br>on right-of-use assets                                | (386)    | (351)    |
| Impairment of property,<br>plant, and equipment                                 | (553)    | (814)    |
| Reversals of impairment on<br>property, plant, and equipment                    | 2,675    | –        |
| Measurement gains (from<br>investment properties)                               | 9,719    | 61,236   |
| Measurement losses (from<br>investment properties)                              | (48,032) | (15,365) |
|                                                                                 | (38,443) | 42,649   |

The scheduled depreciation, impairments, and impairment reversals pertain to the property, plant, and equipment (primarily hotel properties) that are recognised at amortised cost according to IAS 16. Measurement gains and losses result from the changes in the fair values of the investment properties, which are recognised at fair value according to IAS 40.

External appraisals were obtained for hotel properties on the reporting date (see section 3.4.3.1.). These valuations are based on assumptions about the future development of earnings that reflect the prevailing market conditions on the reporting date.

#### Impairments:

The impairments in the reporting period pertain to the Hotels segment in the amount of minus EUR 553 thousand (2022: minus EUR 814 thousand) and are the result of planning changes as well as lower expected future earnings based on the current planning.

The recoverable amount for which an impairment was recognised in the reporting period comes to EUR 87 thousand (2022: EUR 19,694 thousand).

#### Impairment reversals:

Impairments in the Hotels segment were reversed in the amount of EUR 2,675 thousand (2022: impairment of EUR 814 thousand) during the reporting period due to higher planned net income.

The recoverable amount of the hotels for which an impairment reversal was recognised in the reporting period comes to EUR 17,084 thousand (2022: EUR 0 thousand).

#### Gains/losses on remeasurement of investment property:

The measurement gains resulted from the Mogilska 35 (Krakow) and Darmstadt development projects. The Mogilska 35 office building was completed and already partially let out during the financial year; a zoning plan with higher possible gross floor space has now been approved for the plots of land in Darmstadt.

The measurement losses are primarily due to higher yields (discount rates) during the financial year and in part to lower expected future income. Measurement losses pertained to development properties in Poland (Development segment) and the office properties (Investment Properties segment) in Russia, Poland, and Hungary.

In the prior year, the measurement gains were due to development projects, particularly Avior Tower in St. Petersburg, which was completed in 2022 and was fully occupied starting on 1 January 2023, as well as the construction progress on Mogilska 35 Office, which was still being built. In the Investment Properties segment, the measurement gains in 2022 primarily relate to the Elsbet office building in Budapest and the Red Tower in Łódź due to higher expected rental revenue. In the prior year, the measurement losses resulted from a property in St. Petersburg due to an increase in the discount rate that could not be offset by higher expected income as well as the office properties in Poland due to higher discount rates. In 2022, measurement losses in the Development and Services segment pertained to German projects due to higher construction costs.

{91}------------------------------------------------

#### 6.7. Interest income

|                                                | 2023 | 2022 |
|------------------------------------------------|------|------|
| Composition:                                   |      |      |
| Interest received from loans to joint ventures | 162  | 159  |
| Other interest received                        | 795  | 341  |
|                                                | 958  | 500  |

The interest received from joint ventures pertains to the operating company of the InterContinental hotel in Warsaw.

#### 6.8. Finance expenses

|                                                                                            | 2023         | 2022         |
|--------------------------------------------------------------------------------------------|--------------|--------------|
| Composition:                                                                               |              |              |
| Loan interest                                                                              | (12,328)     | (11,407)     |
| Coronavirus aid                                                                            | –            | 41           |
| Other finance expenses                                                                     | (516)        | (497)        |
| Interest on bonds                                                                          | (621)        | (474)        |
| Derecognition of capitalised loan<br>deferrals                                             | –            | (34)         |
| Interest on lease liabilities                                                              | (92)         | (81)         |
| Interest on loans from minority<br>shareholders                                            | (20)         | (10)         |
| Unrealised losses on derivative<br>financial instruments                                   | (16)         | (1,120)      |
| Realised losses from derivative<br>financial instruments                                   | (65)         | –            |
| Other                                                                                      | (182)        | (266)        |
|                                                                                            | (13,840)     | (13,847)     |
|                                                                                            | 2023         | 2022         |
| Composition:                                                                               |              |              |
| Changes in foreign exchange rates<br>from EUR financing<br>(deviating functional currency) | 1,613        | 4,325        |
| Other foreign exchange rate<br>changes in the financial result                             | 355          | (440)        |
|                                                                                            | <b>1,968</b> | <b>3,885</b> |

Please see section 7.10.4. for information about the terms for interest-bearing financial liabilities. In the prior year, the derecognition of capitalised loan deferrals was a non-cash item and pertained to transaction costs to be distributed over the term as well as modification gains to be distributed over the term, which must be derecognised upon disposal of the given financial instrument (loan). The other finance expenses include lending commitment fees and transaction costs, costs from the assumption of financial liabilities, and other loanrelated costs distributed over the respective terms using the effective interest rate method. Losses on derivative financial instruments resulted from interest rate hedges in Russia.

#### 6.9. Foreign exchange rate changes in the financial result

The changes in foreign exchange rates from EUR financing in the reporting period stem from the currency translation of a project loan of a Polish subsidiary, for which the functional currency is the local currency and the financing is denominated in euros. In the prior year, this item pertained to a Russian subsidiary.

The translation differences of foreign currencies pursuant to IAS 21 totalled EUR 1,968 thousand (2022: EUR 3,097 thousand) in the reporting period. This amount consists of operating translation differences in the amount of minus EUR 1 thousand (2022: minus EUR 788 thousand), which are contained in other operating income, and translation differences in the financial result.

{92}------------------------------------------------

#### 6.10. Income taxes

A reconciliation between income tax expense and the product of the profit for the period multiplied by the Group's domestic tax rate of 25 per cent (valid corporate income tax rate in Austria) for the reporting period and previous year is as follows:

| Reconciliation of tax expenses:                                | 2023     | 2022     |
|----------------------------------------------------------------|----------|----------|
|                                                                |          |          |
| Consolidated income statement                                  |          |          |
| Group earnings before taxes                                    | (27,321) | 52,626   |
| Group earnings before income tax x 24% tax rate                | 6,557    | (13,156) |
| ± Changes in tax rates                                         | 17       | 556      |
| ± Other foreign tax rates                                      | (890)    | 1,410    |
| ± Effects of tax-exempt results                                | (1,525)  | 4,561    |
| ± Permanent differences                                        | (1,853)  | (903)    |
| ± Expired loss carryforwards                                   | (39)     | (109)    |
| ± Effects of changes in the previous year                      | (1)      | 1,833    |
| ± Impairment of deferred tax assets                            | –        | 18       |
| ± Use of previously unrecognised tax assets                    | 11       | 6        |
| ± Unused temporary differences                                 | 486      | (3,825)  |
| ± Foreign withholding taxes and minimum corporate income taxes | (114)    | 14       |
| ± Effects of exchange rate fluctuations                        | 864      | (167)    |
| Taxes according to the income statement                        | 3,514    | (9,762)  |
| Effective tax rate                                             | 12.86%   | 18.55%   |

| Consolidated statement of comprehensive income |              |            |
|------------------------------------------------|--------------|------------|
| ± Effects of exchange rate fluctuations        | 2,870        | 80-        |
| <b>Taxes in other comprehensive income</b>     | <b>2,870</b> | <b>80-</b> |

{93}------------------------------------------------

Of the income taxes incurred during the reporting period, an amount of minus EUR 5 thousand pertains to the prior year (excluding deferred taxes; 2022: EUR 56 thousand). In addition, there were effects due to changes in the prior year in Poland as a result of a change in the interpretation of tax regulations.

In both the reporting period and the prior periods, no deferred tax liabilities were recognised for unremitted earnings of subsidiaries, since intragroup dividend distributions within the European Union are not taxed.

Deferred tax assets and liabilities are recognised for temporary differences associated with joint ventures and applied to the extent that these differences result in tax liability. Deferred tax assets and liabilities are recognised for all temporary differences associated with interests in subsidiaries within the scope of the outside basis differences.

The Group has loss carryforwards of EUR 181,077 thousand (2022: EUR 197,288 thousand) at its disposal. Of these tax loss carryforwards, EUR 65,364 thousand (2022: EUR 69,392 thousand) are offset against deferred tax liabilities; deferred taxes were recognised for tax loss carryforwards in the amount of EUR 5,054 thousand (2022: EUR 8,328 thousand) because these will be offset against taxable profits in the foreseeable future.

#### The tax loss carryforwards originated:

| in Poland (can be carried forward for 5 years, tax rate 9–19%, 15% for SMEs)                              | 33,373  |
|-----------------------------------------------------------------------------------------------------------|---------|
| in Hungary (can be carried forward for 5 years or until 2030 if they originated before 2015, tax rate 9%) | 1,579   |
| in the Czech Republic (can be carried forward for 5 years, tax rate 19%; from 2024: 21%)                  | 410     |
| in Russia (can be carried forward indefinitely starting in 2017, tax rate 20%)                            | 77,166  |
| in Austria (can be carried forward indefinitely, tax rate 24%; from 2024: 23%) *)                         | 58,683  |
| in Germany (can be carried forward indefinitely, tax rate 15.83% or 31.72%)                               | 9,865   |
|                                                                                                           | 181,077 |

\*) The corporate income tax rate in Austria was reduced from 25% in 2022 to 24% in 2023 and 23% in 2024. This has no impact on the consolidated results because deferred taxes are not being recognised on Austrian loss carryforwards.

Recognised loss carryforwards in the amount of EUR 2,749 thousand will expire in the coming financial year. If these cannot be offset against taxable income in the coming financial year, the associated tax expenses will amount to EUR 517 thousand in the coming financial year.

No deferred tax claims were recognised for tax loss carryforwards in the amount of EUR 110,658 thousand (2022: EUR 119,568 thousand) because they may not be used against the taxable profits of other companies in the Group and arose in subsidiaries that have been generating losses for some time already.

No deferred taxes were recognised for deferred tax assets according to IAS 12.44 (outside basis differences) in the amount of EUR 105,862 thousand (2022: EUR 106,742 thousand) because the temporary differences are not expected to reverse in the foreseeable future.

No deferred taxes were recognised for deferred tax liabilities according to IAS 12.39 (outside basis differences) in the amount of EUR 46,521 thousand (2022: EUR 89,948 thousand) because the temporary differences are not expected to reverse in the foreseeable future, as this reversal is within the parent company's sphere of influence.

{94}------------------------------------------------

## [07] Notes to the Consolidated Statement of Financial Position

#### 7.1. Investment properties

The Group measures investment properties at their fair value.

#### 7.1.1. Changes in and composition of investment properties

|                                            | Developed<br>properties | Development<br>properties | Reserve<br>properties | Total    |
|--------------------------------------------|-------------------------|---------------------------|-----------------------|----------|
| Changes in 2022:                           |                         |                           |                       |          |
| Carrying amounts at 1 January              | 257,555                 | 48,729                    | 18,313                | 324,596  |
| Changes in the scope of consolidation      | (9,949)                 | –                         | –                     | (9,949)  |
| Additions/investments                      | 7,056                   | 13,445                    | 116                   | 20,618   |
| Capitalised borrowing costs                | –                       | 303                       | –                     | 303      |
| Transfer of property, plant, and equipment | –                       | 542                       | –                     | 542      |
| Reclassification of development property   | –                       | 1,173                     | (1,173)               | –        |
| Reclassification after completion          | 29,450                  | (29,450)                  | –                     | –        |
| Disposals                                  | (935)                   | –                         | –                     | (935)    |
| Net measurement result                     | 44,609                  | 1,266                     | (5)                   | 45,871   |
| Exchange adjustments                       | 9,048                   | (3,479)                   | 1,848                 | 7,417    |
| Carrying amounts at 31 December            | 336,835                 | 32,528                    | 19,100                | 388,463  |
| Changes in 2023:                           |                         |                           |                       |          |
| Carrying amounts at 1 January              | 336,835                 | 32,528                    | 19,100                | 388,463  |
| Additions/investments                      | 1,925                   | 11,557                    | 904                   | 14,386   |
| Capitalised borrowing costs                | –                       | 575                       | –                     | 575      |
| Reclassification after completion          | 34,960                  | (34,960)                  | –                     | –        |
| Disposals                                  | (436)                   | –                         | –                     | (436)    |
| Net measurement result                     | (44,465)                | 3,559                     | 2,593                 | (38,313) |
| Exchange adjustments                       | (42,283)                | 2,587                     | (1,744)               | (41,440) |
| Carrying amounts at 31 December            | 286,536                 | 15,846                    | 20,853                | 323,235  |

{95}------------------------------------------------

The investments in the development property segment primarily pertained to Mogilska 35 Office in Krakow, which was reclassified to the developed properties after being completed. The reclassification of development property pertained to a plot of land in Darmstadt.

The developed properties contain right-of-use assets in the amount of EUR 931 thousand (2022: EUR 926 thousand); the development properties contain right-of-use assets in the amount of EUR 46 thousand (2022: EUR 42 thousand). During the reporting period, there were no additions to the rightof-use assets pertaining to investment properties (2022: EUR 120 thousand). As in the prior year, no subsequent purchase costs were incurred during the reporting period.

The capitalised borrowing costs were based on a borrowing cost rate of 3.5 per cent (2022: 10.9 per cent).

There were changes in the scope of consolidation in the prior year due to the sale of the holding company for B52 Office in Budapest (see section 5.3.). The investments in developed properties in 2022 primarily pertained to the purchase of an office property in Łódź; the additions to development properties in 2022 included the completion of Avior Tower in St. Petersburg as well as the construction progress at Mogilska 35 Office in Krakow.

#### 7.1.2. Result from investment properties

|                                                              | 2023    | 2022    |
|--------------------------------------------------------------|---------|---------|
| Rental revenue                                               | 31,447  | 28,620  |
| Income from charged operating<br>expenses and other services | 5,478   | 4,534   |
| less direct operating expenses                               | (6,778) | (6,355) |
| Net rental income                                            | 30,147  | 26,799  |

During the reporting period, material operating expenses that can be directly attributed to the investment properties and for which no rental revenue was generated amounted to EUR 321 thousand (2022: EUR 1,512 thousand).

## 7.1.3. Information on fair value, material inputs, and sensitivity

The carrying amounts of the investment properties correspond to their fair values. The properties are generally assessed every six months by external property appraisers applying level 3 of the fair value hierarchy, i.e. using non-observable inputs (see also the information on discretionary decisions in section 3.4.3.1.).

The valuation method and the measurement parameters (inputs) depend on the respective development stage of the property. In this, the Group differentiates between developed properties, development properties, and reserve properties.

The inputs presented below can influence each other. In particular, rising rents and falling yields (interest rates) increase the market value while falling rents and rising yields have a detrimental effect on the market value.

{96}------------------------------------------------

## Developed properties:

Developed properties are valued based on the income they generate using the investment or DCF method.

| Material inputs                            | 2023<br>Range | 2023<br>Weighted average | 2022<br>Range | 2022<br>Weighted average |
|--------------------------------------------|---------------|--------------------------|---------------|--------------------------|
| Exit/reversion yield                       | 6.8–14.2%     | 9.6%                     | 6.25–14%      | 9.5%                     |
| Discount/equivalent yield                  | 6.1%–17.7%    | 11.8%                    | 5.93%–16%     | 11.2%                    |
| Estimated rent value (ERV)/m²/month in EUR | 10–39.8       | 18.7                     | 9.15–49.0     | 23.5                     |

A change in the indicated inputs would result in the following changes in the fair values:

| Sensitivity analysis 2022                              |                                    |     |     |     |      |
|--------------------------------------------------------|------------------------------------|-----|-----|-----|------|
| Change in the exit/<br>reversion yield by basis points | Change in the estimated rent value |     |     |     |      |
|                                                        | -10%                               | -5% | 0%  | +5% | +10% |
| -100 bp                                                | 5%                                 | 8%  | 10% | 13% | 16%  |
| -50 bp                                                 | 0%                                 | 3%  | 5%  | 7%  | 9%   |
| 0 bp                                                   | -4%                                | -2% | 0%  | 2%  | 4%   |
| 50 bp                                                  | -8%                                | -6% | -4% | -2% | 0%   |
| 100 bp                                                 | -11%                               | -9% | -8% | -6% | -4%  |

| Sensitivity analysis 2023                              |                                    |     |     |     |      |
|--------------------------------------------------------|------------------------------------|-----|-----|-----|------|
| Change in the exit/<br>reversion yield by basis points | -10%                               | -5% | 0%  | +5% | +10% |
|                                                        | Change in the estimated rent value |     |     |     |      |
| -100 bp                                                | 6%                                 | 4%  | 2%  | 1%  | 1%   |
| -50 bp                                                 | 5%                                 | 3%  | 1%  | 0%  | -1%  |
| 0 bp                                                   | 5%                                 | 2%  | 0%  | -2% | -3%  |
| 50 bp                                                  | 5%                                 | 2%  | -1% | -3% | -4%  |
| 100 bp                                                 | 5%                                 | 2%  | -1% | -3% | -5%  |

{97}------------------------------------------------

#### Development properties:

Development properties are valued based on the income they generate using the residual value method.

|                                                             | 2023        |                  | 2022        |                  |
|-------------------------------------------------------------|-------------|------------------|-------------|------------------|
| Material inputs                                             | Range       | Weighted average | Range       | Weighted average |
| Exit yield                                                  | 6.4–7.5%    | 7.0%             | 6.2–7.1%    | 6.6%             |
| Estimated rent value (ERV)/m²/month in EUR                  | 13.5–21.9   | 13.0             | 13.7–16.0   | 14.7             |
| Outstanding construction and development costs/m²<br>in EUR | 1,629–2,760 | 1,941            | 1,249–2,127 | 1,794            |
| Developer's profit                                          | 20%         | 20%              | 20%         | 20%              |

A change in the indicated inputs would result in the following changes in the fair values:

| Sensitivity analysis 2022                   |      |      |      |      |      |
|---------------------------------------------|------|------|------|------|------|
| Change in the exit<br>yield by basis points | -10% | -5%  | 0%   | +5%  | +10% |
| -100 bp                                     | 12%  | 15%  | 19%  | 23%  | 26%  |
| -50 bp                                      | 2%   | 5%   | 9%   | 12%  | 15%  |
| 0 bp                                        | -6%  | -3%  | 0%   | 3%   | 6%   |
| 50 bp                                       | -13% | -10% | -7%  | -5%  | -2%  |
| 100 bp                                      | -19% | -17% | -14% | -11% | -9%  |

| Sensitivity analysis 2023 |                                    |      |      |      |      |
|---------------------------|------------------------------------|------|------|------|------|
| Change in the exit        | Change in the estimated rent value |      |      |      |      |
| yield by basis points     | -10%                               | -5%  | 0%   | +5%  | +10% |
| -100 bp                   | 10%                                | 14%  | 18%  | 22%  | 25%  |
| -50 bp                    | 1%                                 | 5%   | 8%   | 12%  | 15%  |
| 0 bp                      | -6%                                | -3%  | 0%   | 3%   | 6%   |
| 50 bp                     | -13%                               | -10% | -7%  | -4%  | -1%  |
| 100 bp                    | -19%                               | -16% | -13% | -11% | -8%  |

| Sensitivity analysis 2022        |                                                              |      |      |      |       |
|----------------------------------|--------------------------------------------------------------|------|------|------|-------|
| Change in the developer's profit | Change in the outstanding construction and development costs |      |      |      |       |
| in percentage points             | -10%                                                         | -5%  | 0%   | +5%  | +10%  |
| -10%                             | 94%                                                          | 72%  | 50%  | 28%  | 6%    |
| -5%                              | 71%                                                          | 48%  | 25%  | 2%   | -21%  |
| 0%                               | 48%                                                          | 24%  | 0%   | -24% | -48%  |
| 5%                               | 25%                                                          | 0%   | -25% | -50% | -75%  |
| 10%                              | 2%                                                           | -24% | -50% | -76% | -102% |

| Sensitivity analysis 2023        |                                                              |      |       |       |       |
|----------------------------------|--------------------------------------------------------------|------|-------|-------|-------|
| Change in the developer's profit | Change in the outstanding construction and development costs |      |       |       |       |
| in percentage points             | -10%                                                         | -5%  | 0%    | +5%   | +10%  |
| -10%                             | 217%                                                         | 169% | 121%  | 73%   | 24%   |
| -5%                              | 161%                                                         | 111% | 60%   | 10%   | -40%  |
| 0%                               | 105%                                                         | 53%  | 0%    | -53%  | -105% |
| 5%                               | 49%                                                          | -6%  | -60%  | -115% | -170% |
| 10%                              | -7%                                                          | -64% | -121% | -178% | -235% |

{98}------------------------------------------------

## Reserve properties:

The reserve properties are valued based on their market prices using the comparative method.

|                             | 2023     |                  | 2022      |                  |
|-----------------------------|----------|------------------|-----------|------------------|
| Material inputs             | Range    | Weighted average | Range     | Weighted average |
| Market price/m² area in EUR | 94–1,547 | 464              | 125–1,124 | 376              |

| Sensitivity analysis | Change of assumption | Change in the result<br>before taxes<br>2023 | 2022   |
|----------------------|----------------------|----------------------------------------------|--------|
| Market price/m² area | +10%                 | 1,883                                        | 1,759  |
| Market price/m² area | +5%                  | 942                                          | 880    |
| Market price/m² area | -5%                  | -942                                         | -880   |
| Market price/m² area | -10%                 | -1,883                                       | -1,759 |

Along with the property-specific input factors listed above, the exchange rate from the local currency to the Group currency of euros also has an impact on the value of properties indicated in euros. This particularly pertains to the Russian investment properties. These are financed through debt denominated in the local currency of roubles, so a weaker rouble results in lower property values and lower liabilities to banks from project financing after translation into euros. Conversely, a stronger rouble leads to higher property and loan values in euro terms. These types of translation differences do not affect the Group's profit or loss for the period, because they are recognised directly in equity through other comprehensive income. For additional details, please refer to the information about currency risk in section 8.2.2.

{99}------------------------------------------------

### 7.2. Property, plant, and equipment

#### 7.2.1. Changes in and composition of property, plant, and equipment

|                                                                                       | Hotels   | Right-<br>of-use assets | Other<br>property, plant,<br>and equipment | Total    |
|---------------------------------------------------------------------------------------|----------|-------------------------|--------------------------------------------|----------|
| Changes in 2022:                                                                      |          |                         |                                            |          |
| Carrying amounts at 1 January                                                         | 33,276   | 1,128                   | 2,186                                      | 36,590   |
| Additions                                                                             | 951      | 123                     | 347                                        | 1,421    |
| Disposals                                                                             | (68)     | (15)                    | (25)                                       | (107)    |
| Reclassification to investment properties                                             | (542)    | -                       | -                                          | (542)    |
| Scheduled depreciation and amortisation                                               | (2,140)  | (345)                   | (384)                                      | (2,869)  |
| Impairment charges                                                                    | (339)    | -                       | -                                          | (339)    |
| Exchange adjustments                                                                  | 2,223    | 5                       | 24                                         | 2,253    |
| Carrying amounts at 31 December                                                       | 33,362   | 896                     | 2,149                                      | 36,408   |
| Composition as at 31/12/2022:                                                         |          |                         |                                            |          |
| Acquisition or production cost                                                        | 58,491   | 1,214                   | 3,484                                      | 63,190   |
| Cumulated write-downs                                                                 | (25,129) | (318)                   | (1,335)                                    | (26,782) |
|                                                                                       | 33,362   | 896                     | 2,149                                      | 36,408   |
| thereof pledged as senior collateral for interest-bearing loans (see section 7.10.3.) |          |                         |                                            |          |
|                                                                                       |          |                         |                                            | 34,258   |
|                                                                                       | Hotels   | Right-<br>of-use assets | Other<br>property, plant,<br>and equipment | Total    |
| Changes in 2023:                                                                      |          |                         |                                            |          |
| Carrying amounts at 1 January                                                         | 33,362   | 896                     | 2,149                                      | 36,408   |
| Additions                                                                             | 1,034    | 317                     | 397                                        | 1,748    |
| Disposals                                                                             | (188)    | (5)                     | (16)                                       | (209)    |
| Scheduled depreciation and amortisation                                               | (1,439)  | (368)                   | (412)                                      | (2,218)  |
| Impairment charges                                                                    | (553)    | -                       | -                                          | (553)    |
| Impairment reversals                                                                  | 2,675    | -                       | -                                          | 2,675    |
| Exchange adjustments                                                                  | (4,859)  | (6)                     | 120                                        | (4,745)  |
| Carrying amounts at 31 December                                                       | 30,033   | 835                     | 2,238                                      | 33,106   |
| Composition as at 31/12/2023:                                                         |          |                         |                                            |          |
| Acquisition or production cost                                                        | 49,087   | 1,323                   | 3,741                                      | 54,151   |
| Cumulated write-downs                                                                 | (19,054) | (488)                   | (1,502)                                    | (21,045) |
|                                                                                       | 30,033   | 835                     | 2,238                                      | 33,106   |

The hotels are recognised at the amortised cost of acquisition or production in accordance with the IFRS provisions.

{100}------------------------------------------------

## The Group's uniform estimates for the assets' useful lives are applied as follows:

|                                       | 2023     | 2022     |
|---------------------------------------|----------|----------|
| Buildings (including finance leasing) | 60 years | 60 years |
| Hotel technical facilities            | 15 years | 15 years |
| Hotel fixtures                        | 7 years  | 7 years  |
| Furniture and office equipment        | 7 years  | 7 years  |
| Plant                                 | 20 years | 20 years |

The useful life of the right-of-use assets is oriented towards the contractual minimum lease term as well as any extension options, provided the likelihood that they will be exercised is deemed to be sufficiently high.

The costs of acquisition and production of the hotels are broken down into building fabric, building technical systems, and fixtures and written down over the respective useful lives pursuant to IAS 16.43 (component approach).

The additions to the hotels pertain to the hotels in Darmstadt and St. Petersburg. The reclassification in the prior year pertained to ongoing planning work.

Further information on the impairments and impairment reversals on property, plant, and equipment is provided in section 6.6.

{101}------------------------------------------------

## 7.2.2. Material inputs and sensitivity information

The amortised costs of the hotels are assessed on the basis of external appraisals to determine any impairment or the need for impairment reversal. The inputs used for this and the possible effects of changes in the most important inputs on earnings before taxes are shown below.

#### Hotels:

|                                                 | 2023      |                     | 2022     |                     |
|-------------------------------------------------|-----------|---------------------|----------|---------------------|
| Material inputs                                 | Range     | Weighted<br>average | Range    | Weighted<br>average |
| Exit yield                                      | 8–11%     | 9.41%               | 7.4–11%  | 9.10%               |
| Discount rate                                   | 10.25–15% | 12.49%              | 9.65–15% | 12.20%              |
| Expected cash flows (year one) in EUR '000/room | 1.8–4.7   | 3.2                 | -0.4–4.0 | 1.7                 |

| Sensitivity analysis           | Change in the result<br>before taxes |      |      |
|--------------------------------|--------------------------------------|------|------|
|                                | Change of assumption                 | 2023 | 2022 |
| Exit yield                     | +50 basis points                     | -500 | -579 |
| Exit yield                     | -50 basis points                     | 520  | 602  |
| Discount rate                  | +50 basis points                     | -278 | -870 |
| Discount rate                  | -50 basis points                     | 304  | 340  |
| Expected cash flows (year one) | +5%                                  | 863  | 983  |
| Expected cash flows (year one) | -5%                                  | -863 | -889 |

Along with the property-specific input factors listed above, the exchange rate from roubles to the Group currency of euros also has an impact on the value of the hotel property indicated in euros in the case of the hotel in St. Petersburg. A weaker rouble results in a lower property value after translation into euros, while a stronger rouble leads to a higher property value in euro terms. These types of translation differences do not affect the Group's profit or loss for the period, because they are recognised directly in equity through other comprehensive income.

## 7.3. Joint ventures (equity method)

#### 7.3.1. Overview of joint ventures

The consolidated financial statements include the following companies that were recognised using the equity method in the reporting period and in the prior year:

| Company                            | Domicile/country | Voting rights<br>and capital<br>share | Capital<br>stock   | Currency<br>of capital | Functional<br>currency | Segment |
|------------------------------------|------------------|---------------------------------------|--------------------|------------------------|------------------------|---------|
| UBX 1 Objekt Berlin Ges.m.b.H. iL  | D-Munich         | 50%                                   | 25<br>in thousands | EUR                    | EUR                    | DS      |
| Sienna Hotel Sp. z o.o.            | PL-Warsaw        | 50%                                   | 81,930             | PLN                    | EUR                    | H       |
| Lanzarota Investments Sp. z o.o. 1 | PL-Warsaw        | 50%                                   | 5                  | PLN                    | EUR                    | H       |

Explanations:

1 The company was liquidated during the 2022 financial year.

{102}------------------------------------------------

## 7.3.2. Financial information about material joint ventures

The following information corresponds to the amounts in the IFRS annual financial statements of the joint ventures.

|                                                            |                | Sienna Hotel Sp. z o.o. and<br>Lanzarota Sp. z o.o. |  |
|------------------------------------------------------------|----------------|-----------------------------------------------------|--|
|                                                            | 31/12/23       | 31/12/22                                            |  |
| Summary balance sheet:                                     |                |                                                     |  |
| Non-current assets                                         | 84,358         | 79,137                                              |  |
| Current assets                                             | 4,075          | 4,523                                               |  |
| <b>Total assets</b>                                        | <b>88,433</b>  | <b>83,660</b>                                       |  |
| thereof cash and cash equivalents                          | 1,252          | 3,298                                               |  |
| Equity                                                     | (6,003)        | (3,105)                                             |  |
| <i>thereof capital reduction</i>                           | (868)          | –                                                   |  |
| Non-current liabilities                                    | 87,570         | 79,070                                              |  |
| Current liabilities                                        | 6,866          | 7,696                                               |  |
| <b>Total equity and liabilities</b>                        | <b>88,433</b>  | <b>83,660</b>                                       |  |
| <i>thereof non-current financial liabilities (IFRS 12)</i> | 87,570         | 79,070                                              |  |
| <i>thereof current financial liabilities (IFRS 12)</i>     | 2,538          | 3,587                                               |  |
|                                                            | 2023           | 2022                                                |  |
| Summary income statement:                                  |                |                                                     |  |
| Income                                                     | 27,621         | 23,390                                              |  |
| Expenses including remeasurement result                    | (29,651)       | (15,615)                                            |  |
| Profit or loss for the period                              | (2,030)        | 7,775                                               |  |
| <b>Net profit or loss for the period</b>                   | <b>(2,030)</b> | <b>7,775</b>                                        |  |
| Included in the profit or loss for the period:             |                |                                                     |  |
| Scheduled depreciation and amortisation                    | (5,713)        | (5,174)                                             |  |
| Interest income                                            | 32             | 30                                                  |  |
| Interest expenses                                          | (3,460)        | (3,180)                                             |  |
|                                                            | 31/12/23       | 31/12/22                                            |  |
|                                                            |                |                                                     |  |
| Reconciliation to carrying amount of the interest:         |                |                                                     |  |
| Net assets                                                 | (6,003)        | (3,105)                                             |  |
| Group interest                                             | 50%            | 50%                                                 |  |
| Proportionate net assets                                   | (3,002)        | (1,553)                                             |  |
| Unrecognised cumulated losses                              | 3,002          | 1,553                                               |  |
| Net investment (carrying amount)                           | –              | –                                                   |  |

## 7.3.3. Information on joint ventures

The following information pertains to the material joint ventures presented above:

## **Sienna Hotel Sp. z o.o. and Lanzarota Investments Sp. z o.o.:**

Sienna Hotel Sp. z o.o. (formerly Lanzarota Investments Sp. z o.o. Sienna Hotel S.K.A.) leases the InterContinental hotel in Warsaw under an operating lease and runs the establishment. Lanzarota Investments Sp. z o.o. held a small stake in Lanzarota Investments Sp. z o.o. Sienna Hotel S.K.A. and engaged in no material business operations. It was liquidated during the 2022 financial year. As these companies were viewed together in the Group, they are depicted together here.

{103}------------------------------------------------

#### 7.3.4. Composition and development of joint ventures

|                                                                      | Capital<br>shares | Loans | Total   |
|----------------------------------------------------------------------|-------------------|-------|---------|
| Composition as at 31/12/2022:                                        |                   |       |         |
| Net investments                                                      | 1,909             | –     | 1,909   |
| Cumulated earnings<br>allocation (profit or<br>loss for the period)  | (1,498)           | –     | (1,498) |
|                                                                      | 410               | –     | 410     |
| Composition as at 31/12/2023:                                        |                   |       |         |
| Net investments                                                      | 1,513             | –     | 1,513   |
| Cumulated earnings<br>allocations (profit or<br>loss for the period) | (1,078)           | –     | (1,078) |
|                                                                      | 435               | –     | 435     |

The net investments include shares in the joint ventures and loans extended to joint ventures that are not planned or likely to be repaid in the foreseeable future. Proportionate gains and losses are recognised as allocated results when they are covered by the net investment. Any impairment according to IAS 28.40 is also taken into account.

|                                                        | 2023  | 2022 |
|--------------------------------------------------------|-------|------|
| Development:                                           |       |      |
| Carrying amounts at 1 January                          | 410   | 415  |
| Disposals                                              | (396) | –    |
| Extension (+) / repayment (-) of<br>loans              | –     | (47) |
| Capitalised interest income<br>from loans granted      | –     | 47   |
| Earnings allocation from<br>profit/loss for the period | 420   | (5)  |
| Carrying amounts at 31 December                        | 435   | 410  |

#### 7.3.5. Other information about joint ventures

The following table contains summarised financial information about the net investments in joint ventures. The amounts are adjusted for the Group's share.

|                                      | 31/12/23 | 31/12/22 |
|--------------------------------------|----------|----------|
| Share of the assets and liabilities: |          |          |
| Non-current assets                   | 38,608   | 35,843   |
| Current assets                       | 2,051    | 2,279    |
| Assets                               | 40,659   | 38,123   |
| Proportionate equity                 | (2,567)  | (1,142)  |
| Non-current liabilities              | 39,763   | 35,387   |
| Current liabilities                  | 3,463    | 3,878    |
| Equity and liabilities               | 40,659   | 38,123   |

|                                                       | 31/12/23 | 31/12/22 |
|-------------------------------------------------------|----------|----------|
| Reconciliation to carrying amount:                    |          |          |
| Share of net assets                                   | (2,567)  | (1,142)  |
| Surplus relating to joint venture<br>partners         | 38       | –        |
| Unrecognised cumulated losses                         | 2,964    | 1,553    |
| Net investment in joint ventures<br>(carrying amount) | 435      | 410      |

The unrecognised losses from joint ventures amount to EUR 1,411 thousand for the reporting period (2022: minus EUR 3,887 thousand). The unrecognised cumulated losses are listed in the table above.

|                                                                               | 31/12/23 | 31/12/22 |
|-------------------------------------------------------------------------------|----------|----------|
| Aggregated disclosures about joint ventures that are individually immaterial: |          |          |
| Net investment in joint ventures (carrying amount)                            | 435      | 410      |
| Group share of the profit or loss for the period (going operations)           | 24       | (5)      |
| Group share of net result for the period                                      | 24       | (5)      |

#### Risks associated with shares in joint ventures:

The guarantees and bonds entered into in connection with joint ventures are explained in section 9.1.3.

{104}------------------------------------------------

### 7.4. Other assets

|                                                 | 31/12/23 | 31/12/22 |
|-------------------------------------------------|----------|----------|
| Composition non-current:                        |          |          |
| Advance payments made                           | 11       | 64       |
| Restricted accounts pledged<br>as collateral    | 745      | 696      |
| Non-current receivables<br>from tax authorities | 658      | 669      |
| Non-current purchase price claims               | 235      | 351      |
| Other non-current financial assets              | 1        | 1        |
|                                                 | 1,650    | 1,782    |

The remaining financial assets listed above are neither overdue nor impaired.

The restricted accounts pledged as collateral for guarantees amount to EUR 745 thousand (2022: EUR 696 thousand). The terms correspond to the standard terms for each contract partner. The restricted account mainly pertains to a deposit for rent guarantees for the InterContinental hotel in Warsaw.

{105}------------------------------------------------

## 7.5. Deferred taxes (tax assets and liabilities)

The deferred taxes break down and changed as follows:

|                                                                                               |  | Available deferred tax assets |               | Thereof applied deferred tax assets |               |
|-----------------------------------------------------------------------------------------------|--|-------------------------------|---------------|-------------------------------------|---------------|
|                                                                                               |  | 31/12/23                      | 31/12/22      | 31/12/23                            | 31/12/22      |
| Composition:                                                                                  |  |                               |               |                                     |               |
| Differences in property, plant, and<br>equipment and investment properties                    |  | 766                           | 650           | 11                                  | 252           |
| Temporary differences in connection with shares                                               |  | 404                           | 1,392         | –                                   | –             |
| Measurement differences in the treatment of pensions<br>and other long-term employee benefits |  | 427                           | 478           | 165                                 | 191           |
| Measurement differences in the liabilities and provisions                                     |  | 1,167                         | 2,102         | 435                                 | 1,381         |
| Capitalisation of tax loss carryforwards                                                      |  | 37,646                        | 42,137        | 11,069                              | 13,563        |
|                                                                                               |  | <b>40,410</b>                 | <b>46,758</b> | <b>11,681</b>                       | <b>15,387</b> |
| Offsetting with the same tax authority                                                        |  |                               |               | (10,670)                            | (13,721)      |
|                                                                                               |  |                               |               | 1,011                               | 1,666         |

|                                                                         | Deferred tax liabilities |          |
|-------------------------------------------------------------------------|--------------------------|----------|
|                                                                         | 31/12/23                 | 31/12/22 |
|                                                                         |                          |          |
| Composition:                                                            |                          |          |
| Differences in property, plant, and equipment and investment properties | (20,949)                 | (32,733) |
| Measurement differences in the current assets                           | –                        | (17)     |
| Measurement differences in the liabilities and provisions               | (942)                    | (802)    |
|                                                                         | (21,891)                 | (33,552) |
| Offsetting with the same tax authority                                  | 10,666                   | 13,721   |
|                                                                         | (11,225)                 | (19,831) |

|                                                           | Deferred tax assets |              |                 | Deferred tax liabilities |  |
|-----------------------------------------------------------|---------------------|--------------|-----------------|--------------------------|--|
|                                                           | 2023                | 2022         | 2023            | 2022                     |  |
| Development:                                              |                     |              |                 |                          |  |
| As at 1 January                                           | 1,666               | 1,187        | (19,831)        | (11,955)                 |  |
| Changes in the scope of consolidation                     | –                   | –            | –               | 252                      |  |
| Change recognised in other comprehensive income, thereof: | (364)               | 285          | 3,234           | 519                      |  |
| <i>Foreign currency translation</i>                       | (364)               | 285          | 3,234           | 519                      |  |
| Change recognised in profit or loss for the period        | (291)               | 194          | 5,372           | (8,647)                  |  |
| <b>As at 31 December</b>                                  | <b>1,011</b>        | <b>1,666</b> | <b>(11,225)</b> | <b>(19,831)</b>          |  |

Unrecognised deferred tax assets in connection with shares stem entirely from Austria and do not expire.

{106}------------------------------------------------

## 7.6. Trade and other receivables (current)

|                                                               | 31/12/23     | 31/12/22     |
|---------------------------------------------------------------|--------------|--------------|
| Composition:                                                  |              |              |
| Claims related to property<br>and share sales                 | 125          | 125          |
| Trade receivables                                             | 878          | 894          |
| Receivables due from joint ventures                           | 6            | 6            |
| Receivables due from related parties                          | 30           | –            |
| <b>Subtotal of contract balances<br/>according to IFRS 15</b> | <b>1,039</b> | <b>1,025</b> |
| Receivables from tax authorities                              | 896          | 1,527        |
| Advance payments made                                         | 278          | 633          |
| Receivables related to leases                                 | 361          | 425          |
| Other current receivables and assets                          | 1,033        | 172          |
| Receivables related to coronavirus<br>aid measures            | –            | 348          |
| Deferred expenses                                             | 1,198        | 742          |
|                                                               | <b>4,805</b> | <b>4,873</b> |
|                                                               | 31/12/23     | 31/12/22     |
| Composition:                                                  |              |              |
| Neither overdue<br>nor bad debt provision made                | 881          | 935          |
| 30 days overdue,<br>no bad debt provision made                | 158          | 139          |
| 60 days overdue,<br>no bad debt provision made                | 21           | 65           |
| 90 days overdue,<br>no bad debt provision made                | 11           | 52           |
| 120 days overdue,<br>no bad debt provision made               | 24           | 21           |
| >120 days overdue,<br>no bad debt provision made              | 144          | 108          |
| Impaired receivables                                          | 195          | 198          |
|                                                               | 1,434        | 1,517        |

The maturity structure of trade receivables and rent receivables is as follows:

The remaining current financial assets in this item are neither overdue nor impaired.

Trade receivables are non-interest-bearing and generally have terms of 10 to 90 days.

Please see section 3.4.2. for information about current receivables from coronavirus aid measures in the prior year.

{107}------------------------------------------------

## 7.7. Financial assets measured at fair value through other comprehensive income

|                                | 31/12/23 | 31/12/22 |
|--------------------------------|----------|----------|
| Development:                   |          |          |
| Carrying amount on 1 January   | 5,221    | 5,504    |
| Disposals due to sale          | (5,270)  | –        |
| Remeasurement                  | 49       | (283)    |
| Carrying amount on 31 December | –        | 5,221    |

#### 7.8. Cash and cash equivalents

|               | 31/12/23     | 31/12/22      |
|---------------|--------------|---------------|
| Composition:  |              |               |
| Cash on hand  | 11           | 10            |
| Bank balances | 6,846        | 15,915        |
|               | <b>6,857</b> | <b>15,924</b> |

This item consists of cash and cash equivalents.

This item pertains to a 9.88 per cent interest in Palais Hansen Immobilienentwicklung GmbH as the owner of the Palais Hansen Kempinski hotel (from March 2024: Anantara Palais Hansen Vienna Hotel). The interest was sold to the majority shareholder in December 2023. The gain from the disposal was recognised directly in equity (retained earnings).

Further information about measurement, material inputs, and sensitivity for previous periods can be found in sections 8.1.2. to 8.1.4.

The fair value of cash and cash equivalents corresponds to the carrying amount.

Please see section 3.4.1. (Impact of the conflict in Ukraine) for information about disposal restrictions for cash and cash equivalents in Russian subsidiaries.

{108}------------------------------------------------

#### 7.9. Equity

#### 7.9.1. Share capital, earnings per share

The Company's share capital is divided into 54,000,000 nonpar-value shares and is fully paid up.

As in the prior year, the Company had purchased 1,939,280 treasury shares at an average price of EUR 1.54 per share at the reporting date.

The weighted average number of shares in free float between 1 January and 31 December 2023 amounted to 52,060,720, as in the prior year.

|                                              | 2023       | 2022       |
|----------------------------------------------|------------|------------|
|                                              | Shares     | Shares     |
| Breakdown of shares<br>and potential shares: |            |            |
| Shares 1 January to 31 December              | 54,000,000 | 54,000,000 |
| Less weighted treasury shares                | -1,939,280 | -1,939,280 |
| Weighted average number of shares            | 52,060,720 | 52,060,720 |

|                                                                                                  | 2023        | 2022        |
|--------------------------------------------------------------------------------------------------|-------------|-------------|
| Earnings per share (based on the weighted average number of shares):                             | In EUR '000 | In EUR '000 |
| Profit or loss for the period allocable to the shareholders of the Group:<br>undiluted = diluted | (23,794)    | 42,839      |
| Earnings per share undiluted = diluted (in EUR)                                                  | (0.46)      | 0.82        |

As in the prior year, there were no potential approved shares from convertible bonds outstanding on the reporting date.

When calculating the undiluted earnings per share, the result attributable to the holders of shares in the parent company is divided by the weighted average number of shares in circulation during the reporting period. This also corresponds to the diluted earnings per share.

According to the Austrian Stock Corporation Act, the annual financial statements as at 31 December 2023 of the parent company Warimpex Finanz- und Beteiligungs AG, which have been prepared under the Austrian Commercial Code, provide the basis for the distribution of a dividend.

These annual financial statements report a loss of EUR 7,444 thousand for the 2023 financial year. Taking into account the profit carryforward, the net result for the period as at 31 December 2023 is a profit of EUR 2,122 thousand. This is intended to be carried forward to the next accounting period.

#### 7.9.2. Capital management

The equity reported in the consolidated financial statements is used for the purposes of capital management at the Group level. The primary objective of the Group's capital management policy is to ensure that the Group preserves a favourable equity ratio to support its business activities and maximise shareholder value.

The Group is not subject to capital requirements, either under its articles of association or under external regulations. Legal requirements only apply to the share capital and legal reserves, and are complied with in full.

The Group monitors its capital on the basis of its equity ratio, which should be between 20 per cent and 40 per cent.

The consolidated equity ratio was 32.9 per cent on the reporting date (2022: 37.4 per cent), and was within the target range.

|                                               | 31/12/23 | 31/12/22 |
|-----------------------------------------------|----------|----------|
| Determining the consolidated<br>equity ratio: |          |          |
| Equity                                        | 122,036  | 170,289  |
| Borrowings                                    | 249,237  | 284,779  |
| Equity and liabilities                        | 371,273  | 455,068  |
| Equity ratio in %                             | 32.9%    | 37.4%    |

{109}------------------------------------------------

### 7.9.3 Other reserves

The equity includes the following Group reserves:

#### Revaluation reserve:

The revaluation reserve includes remeasurement results from property, plant, and equipment before they were reclassified to investment properties.

#### Reserve for currency translation:

Cumulated exchange rate differences resulting from the translation of annual financial statements of subsidiaries operating with functional currencies other than the euro are reported in the reserve for currency translation.

#### IAS 19 reserve:

The IAS 19 reserve contains cumulated changes in the remeasurement of obligations to provide benefits after or related to the termination of the employment relationship according to IAS 19 that are reported in other comprehensive income. This reserve will not be reclassified into profit or loss in future periods.

The changes in the respective reserves and the analysis of the other comprehensive income per component of equity are as follows:

|                                  | Revaluation<br>reserve | Reserve for<br>currency<br>translation | IAS 19<br>reserve | Total           |
|----------------------------------|------------------------|----------------------------------------|-------------------|-----------------|
| Changes in 2022:                 |                        |                                        |                   |                 |
| As at 1 January                  | 1,732                  | (13,013)                               | (1,219)           | (12,500)        |
| Other comprehensive income       | –                      | 1,859                                  | 332               | 2,191           |
| (Deferred) taxes                 | –                      | 804                                    | –                 | 804             |
| Total other comprehensive income | –                      | 2,663                                  | 332               | 2,995           |
| <b>As at 31 December</b>         | <b>1,732</b>           | <b>(10,351)</b>                        | <b>(886)</b>      | <b>(9,505)</b>  |
| Changes in 2023:                 |                        |                                        |                   |                 |
| As at 1 January                  | 1,732                  | (10,351)                               | (886)             | (9,505)         |
| Other comprehensive income       | –                      | (27,560)                               | 175               | (27,385)        |
| (Deferred) taxes                 | –                      | 2,870                                  | –                 | 2,870           |
| Total other comprehensive income | –                      | (24,690)                               | 175               | (24,515)        |
| <b>As at 31 December</b>         | <b>1,732</b>           | <b>(35,041)</b>                        | <b>(711)</b>      | <b>(34,019)</b> |

The other comprehensive income allocable to non-controlling interests in the amount of EUR 20 thousand (2022: minus EUR 4 thousand) pertains to currency translation to which no deferred taxes apply, as in the prior year.

{110}------------------------------------------------

## 7.10. Financial liabilities

Financial liabilities contain interest-bearing liabilities – primarily bonds and loans from financial institutions or companies – that serve to cover the Group's financing needs. In addition, all financial liabilities according to IAS 32, which also include non-interest-bearing financial liabilities, are presented separately in section 8.1.1.

#### 7.10.1. Bonds

|                      | 31/12/23      | 31/12/22      |
|----------------------|---------------|---------------|
| Composition:         |               |               |
| Bond 09/2018–09/2025 | 3,612         | 5,417         |
| Bond 05/2022–05/2025 | 7,437         | 7,210         |
|                      | <b>11,049</b> | <b>12,627</b> |
| thereof non-current  | 9,178         | 10,785        |
| thereof current      | 1,870         | 1,842         |

In September 2018, a bond with a nominal value of EUR 9,000 thousand (bond 09/2018–09/2025) was issued. The bond will be redeemed annually starting in September 2021 with an amount of EUR 1,800 thousand per year; the coupon is 2.79 per cent and is payable in arrears on an annual basis.

In May 2022, another fixed-rate bond was issued with a term until 05/2025. The repayment is due upon maturity, and the coupon is 6.3 per cent and is payable annually. The bond was issued to finance the purchase and refurbishment of the Red Tower office property in Łódź (see section 7.1.1.).

Proportionate transaction costs are taken into account using the effective interest rate method when recognising the bonds.

#### 7.10.2. Other financial liabilities (loans)

|                                      | 31/12/23       | 31/12/22       |
|--------------------------------------|----------------|----------------|
| Breakdown of non-current loans:      |                |                |
| Project loans                        | 178,002        | 196,065        |
| Loans from non-controlling interests | 232            | 228            |
| Other loans                          | 950            | 7,337          |
|                                      | <b>179,184</b> | <b>203,630</b> |
| Breakdown of current loans:          |                |                |
| Project loans                        | 10,087         | 10,688         |
| Overdraft and borrowing facilities   | 9,420          | 14,556         |
| Other loans                          | 5,311          | 1,333          |
|                                      | <b>24,818</b>  | <b>26,577</b>  |
| Total loans                          | 204,002        | 230,206        |

Please see section 8.2.4. for information on the maturity of the project loans.

{111}------------------------------------------------

## 7.10.3. Summary of liabilities arising from financing activities

The change in and composition of liabilities arising from financing activities (interest-bearing financial liabilities), consisting of bonds (section 7.10.1.) and other financial liabilities (section 7.10.2.), can be broken down as follows:

|                                    | Project<br>loans | Working<br>capital<br>loans | Bonds   | Loans from<br>minorities<br>and others | Lease<br>liabilities | Total    |
|------------------------------------|------------------|-----------------------------|---------|----------------------------------------|----------------------|----------|
|                                    |                  |                             |         |                                        |                      |          |
| Changes in 2022:                   |                  |                             |         |                                        |                      |          |
| As at 1 January                    | 196,399          | 17,676                      | 7,221   | 2,675                                  | 2,163                | 226,134  |
| Borrowing (cash flow)              | 32,814           | 1,122                       | 7,700   | 6,557                                  |                      | 48,194   |
| Repayment (cash flow)              | (27,343)         | (4,242)                     | (1,800) | (910)                                  | (349)                | (34,644) |
| Change in accumulated interest     | (362)            | –                           | (494)   | 255                                    | 33                   | (569)    |
| Changes in foreign exchange rates  | 5,245            | –                           | –       | 320                                    | (8)                  | 5,557    |
| Other changes                      | –                | –                           | –       | –                                      | 298                  | 298      |
| As at 31 December                  | 206,753          | 14,556                      | 12,627  | 8,897                                  | 2,136                | 244,970  |
| thereof current (due < 1 year)     | 10,688           | 14,556                      | 1,842   | 1,333                                  | 400                  | 28,819   |
| thereof non-current (due > 1 year) | 196,065          | –                           | 10,785  | 7,565                                  | 1,737                | 216,151  |
| Changes in 2023:                   |                  |                             |         |                                        |                      |          |
| As at 1 January                    | 206,753          | 14,556                      | 12,627  | 8,897                                  | 2,136                | 244,970  |
| Borrowing (cash flow)              | 10,931           | –                           | –       | 933                                    | –                    | 11,864   |
| Repayment (cash flow)              | (9,433)          | (5,136)                     | (1,800) | (2,882)                                | (304)                | (19,556) |
| Change in accumulated interest     | 298              | –                           | 222     | (65)                                   | 36                   | 490      |
| Changes in foreign exchange rates  | (20,460)         | –                           | –       | (390)                                  | (1)                  | (20,850) |
| Other changes                      | –                | –                           | –       | –                                      | 268                  | 268      |
| As at 31 December                  | 188,089          | 9,420                       | 11,049  | 6,494                                  | 2,134                | 217,185  |
| thereof current (due < 1 year)     | 10,087           | 9,420                       | 1,870   | 5,311                                  | 485                  | 27,173   |
| thereof non-current (due > 1 year) | 178,002          | –                           | 9,178   | 1,182                                  | 1,649                | 190,012  |

Financial liabilities in a total amount of EUR 192,523 thousand (2022: EUR 216,309 thousand) are secured by mortgages on land and buildings. Of this, EUR 174,744 thousand (2022: EUR 164,283 thousand) pertain to investment properties and EUR 17,778 thousand (2022: EUR 10,420 thousand) to property, plant, and equipment.

The borrowings in the financial year primarily pertain to the project loan for the construction of Mogilska 35 Office in Krakow, whereas the repayment of project loans comprises the ongoing contractual repayments. The change in the borrowing facility is due to the lower utilisation of the overdraft facility. An amount of EUR 2,000 thousand of the promissory note that was concluded in the prior year was paid back early during the financial year.

In 2022, the hotel in St. Petersburg was refinanced, and the loan currency was switched to roubles. Other borrowings in 2022 pertained to the project loans for the construction of Avior Tower and Mogilska 35 Office. Along with ongoing repayments and the refinancing, the project loan for B52 Office, which was later sold, was paid back. In the prior year, the Group also issued a bond with a three-year term for the purchase of the Red Tower office property in Łódź (see section 7.1.1.) as well as a promissory note with a twoyear term.

{112}------------------------------------------------

## 7.10.4. Interest rate terms on financial liabilities

|                                     |                  | 31/12/23  | 31/12/22  |
|-------------------------------------|------------------|-----------|-----------|
| Interest on financial liabilities:  |                  |           |           |
| thereof fixed rate                  |                  | 177,367   | 197,605   |
| thereof variable rate               |                  | 39,819    | 47,364    |
|                                     |                  | 217,185   | 244,970   |
| Per cent share:                     |                  |           |           |
| thereof fixed rate                  |                  | 82%       | 81%       |
| thereof variable rate               |                  | 18%       | 19%       |
|                                     |                  | 2023      | 2022      |
|                                     |                  |           |           |
| Range of the variable interest for: | Base rate        | Premium   | Premium   |
| • Overdraft/borrowing facilities    | 3M EURIBOR       | 2.25–2.5% | 2.25–2.5% |
|                                     |                  |           |           |
| • Project loans                     | 3M EURIBOR       | n/a       | 2.25–2.6% |
|                                     | 1M EURIBOR       | 1.3–2.75% | 1.3–2.75% |
|                                     | 1M WIBOR         | 2.80%     | 2.80%     |
|                                     | Russian key rate | 2.40%     | 2.40%     |

The ranges for the financial liabilities with fixed interest rates held at the reporting date are between 2.8 per cent and 12.1 per cent (2022: 2 per cent and 12.1 per cent).

Please see section 8.1.1. for information about the market values of interest-bearing financial liabilities.

{113}------------------------------------------------

#### 7.11. Derivative financial instruments

In connection with the project financing for Avior Tower in St. Petersburg, a floor/cap agreement was concluded which limits the interest rate risk for the term of the variable-rate loan until December 2023. This derivative expired in December 2023.

#### 7.12. Other non-current liabilities

|                                | 31/12/23     | 31/12/22     |
|--------------------------------|--------------|--------------|
| Composition:                   |              |              |
| Payables due to joint ventures | 3,579        | 3,626        |
| Security deposits received     | 2,949        | 3,113        |
| Security deposits              | 1,418        | 1,669        |
|                                | <b>7,946</b> | <b>8,408</b> |

### 7.13. Provisions

The provisions pertain to pensions and other long-term employee benefits and other provisions. The provisions for pensions and other long-term employee benefits are non-current provisions.

## 7.13.1. Provisions for pensions and other long-term employee benefits (section 3.12.)

|                                                                    | Entitlement to        |                        |       |
|--------------------------------------------------------------------|-----------------------|------------------------|-------|
|                                                                    | Severance<br>benefits | Anniversary<br>bonuses | Total |
| Changes in 2022:                                                   |                       |                        |       |
| As at 1 January                                                    | 2,593                 | 161                    | 2,754 |
| Severance payments                                                 | (193)                 | –                      | (193) |
| Service costs                                                      | 78                    | 17                     | 95    |
| Change recognised<br>in personnel expenses                         | (115)                 | 17                     | (98)  |
| Actuarial gains or losses<br>from changed financial<br>assumptions | (398)                 | –                      | (398) |
| Other (restatements<br>based on experience)                        | 65                    | –                      | 65    |
| Remeasurement recognised in<br>other comprehensive income          | (332)                 | –                      | (332) |
| Interest expenses                                                  | 19                    | 1                      | 20    |
| As at 31 December                                                  | 2,165                 | 179                    | 2,344 |
| Changes in 2023:                                                   |                       |                        |       |
| As at 1 January                                                    | 2,165                 | 179                    | 2,344 |
| Service costs                                                      | 65                    | 25                     | 89    |
| Change recognised in personnel<br>expenses                         | 65                    | 25                     | 89    |
| Actuarial gains or losses<br>from changed financial<br>assumptions | 110                   | –                      | 110   |
| Other (restatements based on<br>experience)                        | (286)                 | –                      | (286) |
| Remeasurement recognised in<br>other comprehensive income          | (175)                 | –                      | (175) |
| Interest expenses                                                  | 52                    | 5                      | 58    |
| As at 31 December                                                  | 2,107                 | 209                    | 2,315 |

The changes in the provision pertaining to the Management Board are reported in the transactions with Management Board members in item 9.3.2.3.

The provisions are determined using the projected unit credit method. The salary increase is estimated at 4 per cent (2022: 4 per cent) for severance payments and for anniversary bonuses. The calculations are based on a discount rate of 3.15 per cent (2022: 3.75 per cent). As in the prior year, the calculation is based on the current version of AVÖ 2018-P für Angestellte. The average term of the obligations for severance payments is 9.4 years (2022: 9.5 years).

{114}------------------------------------------------

The following table shows the sensitivity of the net present values of the obligations in response to certain changes in the inputs that, based upon reasonable judgement, may in principle occur. All other variables remain constant.

| Actuarial<br>assumption   | Possible change        | Change in the net<br>present value for<br>severance payments |
|---------------------------|------------------------|--------------------------------------------------------------|
| Sensitivity analysis 2022 |                        |                                                              |
| Discount rate             | +1 percentage point    | (182)                                                        |
| Discount rate             | -1 percentage point    | 217                                                          |
| Salary increase           | +0.5 percentage points | 102                                                          |
| Salary increase           | -0.5 percentage points | (95)                                                         |
| Sensitivity analysis 2023 |                        |                                                              |
| Discount rate             | +1 percentage point    | (177)                                                        |
| Discount rate             | -1 percentage point    | 209                                                          |
| Salary increase           | +0.5 percentage points | 99                                                           |
| Salary increase           | -0.5 percentage points | (93)                                                         |

## 7.13.2. Other provisions

|                   | Short-term | Long-term | Total   |
|-------------------|------------|-----------|---------|
| Changes in 2022:  |            |           |         |
| As at 1 January   | 2,942      | –         | 2,942   |
| Utilised          | (1,562)    | –         | (1,562) |
| Releases          | (1,282)    | –         | (1,282) |
| As at 31 December | 98         | –         | 98      |

## Changes in 2023:

| As at 1 January   | 98        | – | 98        |
|-------------------|-----------|---|-----------|
| Utilised          | (13)      | – | (13)      |
| As at 31 December | <b>85</b> | – | <b>85</b> |

In the prior year, provisions related to enforced guarantees were partially utilised and partially released.

{115}------------------------------------------------

#### 7.14. Trade and other payables and other current liabilities

|                                    | 31/12/23 | 31/12/22 |
|------------------------------------|----------|----------|
| Composition:                       |          |          |
| Trade liabilities                  | 2,837    | 2,987    |
| Other liabilities                  | 2,494    | 1,828    |
| Advance payments received – hotels | 69       | 35       |
| Advance payments received – other  | 706      | 703      |
| Security deposits received         | 971      | 876      |
| Security deposits                  | 695      | 99       |
| Liabilities to related parties     | 2,046    | 2,031    |
| Payables due to joint ventures     | 522      | 489      |
|                                    | 10,340   | 9,048    |

Other liabilities contain tax liabilities of EUR 1,613 thousand (2022: EUR 856 thousand), liabilities for social security contributions of EUR 121 thousand (2022: EUR 108 thousand), and accruals for unconsumed compensated absences of EUR 287 thousand (2022: EUR 248 thousand).

The advance payments received in the Hotels segment are classified as contract liabilities according to IFRS 15 and represent future performance obligations. At the beginning of the financial year, the Company had performance obligations pursuant to IFRS 15 in the amount of EUR 35 thousand, which were satisfied during the reporting period. The resulting revenues are included in the hotel revenues (see section 6.1.). At the end of the financial year, the Company had performance obligations in the amount of EUR 69 thousand that must be satisfied within one year.

For information on transactions with related parties including joint ventures, please refer to section 9.3.2.

Trade receivables are non-interest-bearing and generally have terms of 10 to 60 days. Current tax liabilities and liabilities for social security contributions are non-interest-bearing, except for late payment. These liabilities are generally due within 30 days. Other liabilities are non-interest-bearing.

 

{116}------------------------------------------------

## [08] Disclosures on Financial Instruments, Fair Value, and Financial Risk Management

#### 8.1. Financial instruments and fair value (IFRS 7 and IFRS 13)

#### 8.1.1. Carrying amounts and fair values according to class and measurement category

The following shows the carrying amounts for financial instruments and for assets and liabilities that are measured at fair value, broken down by classes.

| Measurement category<br>as per IFRS 9 or other IFRS                              | IFRS 13<br>level | Carrying<br>amount<br>31/12/23 | Fair<br>value<br>31/12/23 | Carrying<br>amount<br>31/12/22 | Fair<br>value<br>31/12/22 |
|----------------------------------------------------------------------------------|------------------|--------------------------------|---------------------------|--------------------------------|---------------------------|
| <b>Assets - categories</b>                                                       |                  |                                |                           |                                |                           |
| IAS 40 Investment properties (developed)                                         | 3                | 286,536                        | 286,536                   | 336,835                        | 336,835                   |
| IAS 40 Investment properties (in development)                                    | 3                | 36,699                         | 36,699                    | 51,628                         | 51,628                    |
| FVTPL Other financial assets - derivative                                        | 3                | –                              | –                         | 85                             | 85                        |
| FAAC Other financial assets - other                                              |                  | 981                            | 981                       | 1,048                          | 1,048                     |
| FVOCI Financial assets measured at fair value through other comprehensive income | 3                | –                              | –                         | 5,221                          | 5,221                     |
| Other non-current assets                                                         |                  | 35,233                         |                           | 39,264                         |                           |
| <b>Total non-current assets</b>                                                  |                  | <b>359,450</b>                 |                           | <b>434,081</b>                 |                           |
| FAAC Receivables                                                                 |                  | 2,433                          | 2,433                     | 1,623                          | 1,623                     |
| FAAC Cash and cash equivalents                                                   |                  | 6,857                          | 6,857                     | 15,924                         | 15,924                    |
| Other current assets                                                             |                  | 2,533                          |                           | 3,439                          |                           |
| <b>Total current assets</b>                                                      |                  | <b>11,824</b>                  |                           | <b>20,986</b>                  |                           |
| <b>Total assets</b>                                                              |                  | <b>371,273</b>                 |                           | <b>455,068</b>                 |                           |
| <b>Liabilities - classes</b>                                                     |                  |                                |                           |                                |                           |
| FLAC Fixed-rate bonds                                                            | 3                | 9,178                          | 9,356                     | 10,785                         | 10,785                    |
| FLAC Fixed-rate loans                                                            | 3                | 150,086                        | 129,376                   | 173,151                        | 150,852                   |
| FLAC Variable-rate loans                                                         | 3                | 29,099                         | 27,398                    | 30,478                         | 33,032                    |
| FLAC Lease liabilities                                                           |                  | 1,649                          | n/a                       | 1,737                          | n/a                       |
| FLAC Other non-current liabilities                                               |                  | 6,417                          | 6,417                     | 6,020                          | 6,020                     |
| Other non-current liabilities                                                    |                  | 15,088                         |                           | 24,604                         |                           |
| <b>Total non-current liabilities</b>                                             |                  | <b>211,517</b>                 |                           | <b>246,775</b>                 |                           |
| FLAC Fixed-rate bonds                                                            | 3                | 1,870                          | 1,805                     | 1,842                          | 1,779                     |
| FLAC Fixed-rate loans                                                            | 3                | 14,097                         | 12,825                    | 9,691                          | 9,031                     |
| FLAC Variable-rate loans                                                         | 3                | 10,720                         | 10,761                    | 16,886                         | 16,146                    |
| FLAC Lease liabilities                                                           |                  | 485                            | n/a                       | 400                            | n/a                       |
| FLAC Other liabilities                                                           |                  | 7,228                          | 7,228                     | 7,098                          | 7,098                     |
| Other current liabilities                                                        |                  | 3,319                          |                           | 2,087                          |                           |
| <b>Total current liabilities</b>                                                 |                  | <b>37,720</b>                  |                           | <b>38,004</b>                  |                           |
| <b>Total liabilities</b>                                                         |                  | <b>249,237</b>                 |                           | <b>284,779</b>                 |                           |

|       |                                                                               | 31/12/23  | 31/12/22  |
|-------|-------------------------------------------------------------------------------|-----------|-----------|
|       | Summary of carrying amounts by category for financial assets and liabilities: |           |           |
| FAAC  | Financial assets at amortised cost                                            | 10,272    | 18,595    |
| FVOCI | At fair value through other comprehensive income                              | –         | 5,221     |
| FLAC  | Financial liabilities at amortised cost                                       | (230,831) | (258,088) |
| FVTPL | At fair value through profit or loss                                          | –         | 85        |

{117}------------------------------------------------

## The fair values were determined as follows:

The investment properties are recognised at fair value pursuant to IAS 40. The fair value is determined using the investment or DCF method, the residual value method, or the comparative method depending on the stage of development of the respective property (see also the information about material discretionary decisions and estimates in section 3.4.3.1.).

The fair value of the fixed-rate financial assets (fair value level 3) was determined in the same manner as the fair value of the financial liabilities. The carrying amounts of the cash and cash equivalents and of the current receivables and liabilities are almost identical with the fair values because of the short terms. The same applies to the other financial assets because of their interest rate structure.

Please see sections 7.7. and 8.1.3. for information about the measurement of the fair value of the financial assets measured at fair value through other comprehensive income.

The fair value for bonds and loans in level 3 of the fair value hierarchy was determined by discounting the future cash flows with the Group-specific interest rates for new financing as estimated on the reporting date, taking own credit risk into account.

In the prior year, the other derivatives pertained to interest rate caps and floors and are measured by the credit institutions with which the derivative transactions were concluded using recognised valuation models. The performance risk of the contract partners and the Group's own credit risk were deemed to be immaterial, and were therefore not taken into account separately.

## 8.1.2. Reconciliation of level 3 measurement (recurring fair value measurement)

The assets and liabilities that are subject to recurring fair value measurement changed as follows:

|                                                                     | 2023     | 2022     |
|---------------------------------------------------------------------|----------|----------|
|                                                                     |          |          |
| Changes in assets:                                                  |          |          |
| Carrying amounts at 1 January                                       | 393,769  | 330,500  |
| Additions (including transfer of<br>property, plant, and equipment) | 9,615    | 31,611   |
| Disposals                                                           | (5,297)  | (10,284) |
| Gains/losses on remeasurement<br>in profit or loss                  | (32,632) | 36,020   |
| Other comprehensive income                                          | (42,221) | 5,923    |
| Carrying amounts at 31 December                                     | 323,235  | 393,769  |

The remeasurement result in the income statement pertains to investment properties, as in the prior year, and is included in the item Depreciation, amortisation, and remeasurement. As in the prior year, the remeasurement result in the other comprehensive income primarily pertains to the gains/losses on currency translation and, to a limited extent, changes in the value of financial assets measured at fair value through other comprehensive income. These are unrealised value changes in each case.

{118}------------------------------------------------

## 8.1.3. Measurement methods and inputs (recurring fair value measurement)

The following table shows the measurement method and input parameters relating to the recurring fair value measurement of financial instruments:

| Level | Classes                                                                       | Measurement method | Material inputs        |
|-------|-------------------------------------------------------------------------------|--------------------|------------------------|
| 3     | Financial assets measured at fair value through<br>other comprehensive income | Income-based       | Cash flows, exit yield |

No changes were made to the measurement methods in the reporting period. The financial asset was sold during the financial year.

The following is quantitative information about material, unobservable inputs that were used in the measurement of fair value in the prior year.

| Level | Classes                                                                    | Material inputs                  | 2023 | 2022  |
|-------|----------------------------------------------------------------------------|----------------------------------|------|-------|
| 3     | Financial assets measured at fair value through other comprehensive income | Exit yield                       | n/a  | 4.15% |
| 3     | Financial assets measured at fair value through other comprehensive income | Cash flow (year one) in EUR '000 | n/a  | 3,638 |

#### 8.1.4. Sensitivity analysis for changes in unobservable material inputs (recurring measurement)

The following is quantitative information about material unobservable inputs that were used in the measurement of the fair value of financial instruments.

| Level | Input                                                                       | Change of assumption | Change in total comprehensive income before taxes |       |
|-------|-----------------------------------------------------------------------------|----------------------|---------------------------------------------------|-------|
|       |                                                                             |                      | 2023                                              | 2022  |
| 3     | Financial assets measured at fair value through other comprehensive income: |                      |                                                   |       |
|       | Exit yield                                                                  | +50 bp               | n/a                                               | -877  |
|       | Exit yield                                                                  | -50 bp               | n/a                                               | 1,097 |
|       | Cash flow (year one)                                                        | +5%                  | n/a                                               | 531   |
|       | Cash flow (year one)                                                        | -5%                  | n/a                                               | -531  |

{119}------------------------------------------------

## 8.1.5. Net results from financial instruments

The following information pertains to the income and expense items and the gains and losses per measurement category as related to the financial instruments:

|                                                                       | Measurement categories according to IFRS 9 |            |              |                |                |
|-----------------------------------------------------------------------|--------------------------------------------|------------|--------------|----------------|----------------|
|                                                                       | FVTPL                                      | FAAC       | FVOCI        | FLAC           | Total          |
| Financial year 2022:                                                  |                                            |            |              |                |                |
| Allocation/release of impairments                                     |                                            | (33)       |              |                | (33)           |
| Interest and other financial revenue                                  |                                            | 500        |              |                | 500            |
| Interest expenses                                                     |                                            |            |              | (12,728)       | (12,728)       |
| Unrealised remeasurement result                                       | (1,120)                                    |            |              |                | (1,120)        |
| Result from exchange rate changes                                     |                                            |            |              | 3,885          | 3,885          |
| <b>Profit or loss for the period</b>                                  | <b>(1,120)</b>                             | <b>466</b> | <b>–</b>     | <b>(8,842)</b> | <b>(9,496)</b> |
| Unrealised remeasurement result – equity                              |                                            |            | (283)        |                | (283)          |
| <b>Net result from consolidated statement of comprehensive income</b> | <b>(1,120)</b>                             | <b>466</b> | <b>(283)</b> | <b>(8,842)</b> | <b>(9,779)</b> |
|                                                                       | FVTPL                                      | FAAC       | FVOCI        | FLAC           | Total          |
|                                                                       |                                            |            |              |                |                |
| Financial year 2023:                                                  |                                            |            |              |                |                |
| Allocation/release of impairments                                     |                                            | (23)       |              |                | (23)           |
| Interest and other financial revenue                                  |                                            | 958        |              |                | 958            |
| Interest expenses                                                     |                                            |            |              | (13,760)       | (13,760)       |
| (Un)realised remeasurement result                                     | (79)                                       |            |              |                | (79)           |
| Result from exchange rate changes                                     |                                            |            |              | 1,968          | 1,968          |
| Profit or loss for the period                                         | (79)                                       | 934        | –            | (11,791)       | (10,936)       |
| Unrealised remeasurement result – equity                              |                                            |            | 49           |                | 49             |
| Net result from consolidated statement of comprehensive income        | (79)                                       | 934        | 49           | (11,791)       | (10,888)       |

All financial instruments that are measured at fair value through profit or loss are classified upon initial recognition.

Changes in the value of financial instruments measured at fair value through other comprehensive income (FVOCI) are reported in other comprehensive income without future reclassification to the income statement. The changes that occurred in the value of financial instruments measured at fair value through other comprehensive income (FVOCI) in the prior year also pertained to the other comprehensive income.

## 8.2. Financial risk management

In terms of financial risk management, the goal of the Group is to minimise risks to the greatest extent possible, taking the associated costs into account. A detailed description of the material financial risks to which the Group is exposed and the associated financial risk management (qualitative information on financial risks) can be found in the risk reporting section of the consolidated management report (Material Risks and Uncertainties to Which the Group is Exposed).

The following information is about the quantitative risks that relate to financial instruments.

{120}------------------------------------------------

## 8.2.1. Interest rate risk

The Group strives to maintain a risk-oriented relationship between fixed- and variable-rate financial liabilities.

On the reporting date, about 82 per cent (2022: 81 per cent) of the Group's debt obligations were fixed-rate obligations and are not subject to interest rate risk. Details about the interest rate terms for the variable-rate financial liabilities can be found in section 7.10.4.

## Sensitivity of interest rate changes:

The following table shows the sensitivity of Group earnings before taxes to certain changes in material market interest rates that, based upon reasonable judgement, may in principle occur (owing to the impact of such changes on variable-rate loans). All other variables remain constant.

|            | Increase<br>in basis points | Effect on the<br>earnings before taxes | Reduction<br>in basis points | Effect on the<br>earnings before taxes |
|------------|-----------------------------|----------------------------------------|------------------------------|----------------------------------------|
| 2022       |                             |                                        |                              |                                        |
| 3M EURIBOR | +50                         | (227)                                  | -50                          | 227                                    |
| 2023       |                             |                                        |                              |                                        |
| 3M EURIBOR | +50                         | (211)                                  | -50                          | 211                                    |

## Interest rate risk for financial liabilities:

The following table shows the variable-rate financial liabilities of the Group that are subject to interest rate risk broken down by contractual maturity:

|                                | 2023   | 2024  | 2025  | 2026  | 2027  | More than<br>five years | Total  |
|--------------------------------|--------|-------|-------|-------|-------|-------------------------|--------|
| 31/12/2022:                    |        |       |       |       |       |                         |        |
| Project loans                  | 1,214  | 1,229 | 1,247 | 1,234 | 1,209 | 25,333                  | 31,465 |
| Borrowing/overdraft facilities | 14,556 | –     | –     | –     | –     | –                       | 14,556 |
| Other                          | 471    | –     | –     | –     | –     | –                       | 471    |
|                                | 16,241 | 1,229 | 1,247 | 1,234 | 1,209 | 25,333                  | 46,491 |

|                                | 2024   | 2025  | 2026  | 2027  | 2028  | More than five years | Total  |
|--------------------------------|--------|-------|-------|-------|-------|----------------------|--------|
| 31/12/2023:                    |        |       |       |       |       |                      |        |
| Project loans                  | 1,300  | 1,330 | 1,327 | 1,314 | 1,349 | 23,547               | 30,167 |
| Borrowing/overdraft facilities | 9,420  | –     | –     | –     | –     | –                    | 9,420  |
| Other                          | 232    | –     | –     | –     | –     | –                    | 232    |
|                                | 10,952 | 1,330 | 1,327 | 1,314 | 1,349 | 23,547               | 39,819 |

{121}------------------------------------------------

## 8.2.2. Currency risk

The currency structure of financial liabilities in the Group breaks down as follows:

| RUB                   | PLN   | EUR     | Total   |
|-----------------------|-------|---------|---------|
| 31/12/2022:           |       |         |         |
| In foreign currencies |       |         |         |
| 6,641,026             | 2,245 |         |         |
| 87,780                | 479   | 156,711 | 244,970 |
| In EUR                |       |         |         |
| 31/12/2023:           |       |         |         |
| In foreign currencies |       |         |         |
| 6,160,538             | 1,900 |         |         |
| 62,107                | 437   | 185,395 | 217,185 |
| In EUR                |       |         |         |

## Sensitivity of consolidated earnings:

The following table shows the sensitivity of the Group's earnings before taxes to certain changes in exchange rates that, based upon reasonable judgement, may occur for the respective currency versus the euro. All other variables remain constant.

|                   | PLN     | RUB | Total   |
|-------------------|---------|-----|---------|
| Sensitivity 2022: |         |     |         |
| Increase by 10%   | (369)   | –   | (369)   |
| Decrease by 10%   | 369     | –   | 369     |
| Sensitivity 2023: |         |     |         |
| Increase by 10%   | (1,070) | –   | (1,070) |
| Decrease by 10%   | 1,070   | –   | 1,070   |

## Sensitivity of equity:

The following table shows the sensitivity of the Group's equity to certain changes in exchange rates that, based upon reasonable judgement, may occur for the respective currency versus the euro. All other variables remain constant.

| PLN               | Total |
|-------------------|-------|
| Sensitivity 2022: |       |
| Increase by 10%   |       |
|                   |       |
| (99)              | (99)  |
| Decrease by 10%   |       |
| 99                | 99    |
| Sensitivity 2023: |       |
| Increase by 10%   |       |
| (44)              | (44)  |
| Decrease by 10%   |       |
| 44                | 44    |

{122}------------------------------------------------

### 8.2.3. Default risk

Please refer to section 7.6. for quantitative information about default risk. This shows the impairments that were recognised and the maturity structure of the current receivables. The maximum default risk is limited to the carrying amount of the financial receivables. There is no evidence of impairment for the financial assets that are neither past due nor impaired.

In 2018, the Group began letting out smaller office spaces. This can lead to higher default risk for Warimpex if the creditworthiness of individual tenants fluctuates. So far, no noteworthy defaults have occurred in relation to the letting business. The Group continuously monitors this risk.

Overall, default risk is not seen as a core risk because of the business activities of the Group; impairment charges are recognised to the extent necessary.

{123}------------------------------------------------

## 8.2.4. Liquidity risk

The Group had current financial liabilities in the amount of EUR 34,401 thousand (2022: EUR 35,917 thousand) as at the reporting date. Of this, EUR 27,173 thousand (2022: EUR 28,819 thousand) pertain to current financial liabilities serving Group financing purposes.

The share of debt falling due within 12 months should not exceed 35 per cent of liabilities. On the reporting date, 15.1 per cent (2022: 13.3 per cent) of the liabilities were current.

The maturity structure of the Group's non-derivative financial liabilities was as shown below on the reporting date. The figures are stated on the basis of contractual, non-discounted payment obligations including interest payments.

|                                              | Due within | 1 to 5  | More than |         |
|----------------------------------------------|------------|---------|-----------|---------|
| Non-derivative financial liabilities:        | 1 year     | years   | 5 years   | Total   |
|                                              |            |         |           |         |
| Fixed-rate bonds                             | 2,386      | 9,747   | -         | 12,133  |
| Fixed-rate project loans                     | 18,767     | 101,062 | 85,905    | 205,734 |
| Variable-rate project loans                  | 3,050      | 11,525  | 28,495    | 43,069  |
| Variable-rate borrowing/overdraft facilities | 10,038     | -       | -         | 10,038  |
| Lease liabilities                            | 571        | 909     | 3,293     | 4,772   |
| Other loans and borrowings                   | 4,840      | 224     | 1,221     | 6,285   |
| Trade and other payables                     | 7,228      | 6,417   | -         | 13,645  |
| Total                                        | 46,880     | 129,883 | 118,914   | 295,677 |

## 8.2.5. Climate-related risks

Warimpex sees the sustainability of its properties as an important success factor and reinforces this with corresponding certifications for the majority of the property portfolio. In some cases, such certifications have already been issued and in other cases, the Company plans to pursue certification in the future. Nevertheless, the Company is exposed to climate-related risks.

Climate-friendly construction and the climate-friendly operation of office properties or hotels can lead to higher construction and operating costs. There is a risk that these costs will not be able to be passed on to the tenants or guests or that lower proceeds will be generated in the event of a sale.

In addition, there are risks in connection with the EU's Green Deal and the EU Taxonomy that is based on it, including the defined environmental targets. Office properties are generally Taxonomy-eligible according to the EU Taxonomy, and three such properties have been identified as Taxonomy-aligned within the Group.

In this context, there is a risk that the requirements for Taxonomy alignment will be met to a lesser extent in the future due to older existing properties and/or new technical standards. This could make it more expensive and/or more difficult to secure loans. At this time, the Group does not have any loans for which specific ESG metrics or targets must be complied with, and no significant impact on the credit conditions offered has been observed for new loans that have been taken out recently.

In addition, the demand for properties that are not Taxonomy-aligned may decline among buyers or tenants, thus leading to a decrease in the value of such properties. With regard to property valuation, current climate-related aspects are implicitly taken into account in the definition of the material inputs such as market return and yield (see also section 3.4.3.1.). However, it is not possible to quantify the effect resulting from this at present. Both Warimpex and the external property appraisers observe the market developments with regard to the sustainability requirements for buildings and their impact on transaction prices and property valuations on an ongoing basis. No specific physical climate risks were identified for the hotel properties in the property, plant, and equipment that have an impact on the useful lives or values. Emphasis is placed on climate-friendly implementation in accordance with the current standards in the operation of hotels as well as in the case of maintenance and repair measures at hotels and investments in hotels.

{124}------------------------------------------------

## [09] Other Disclosures

#### 9.1. Other commitments, litigation, and contingencies

## 9.1.1. Litigation

A Group company in St. Petersburg filed a lawsuit as the property owner and lessor against the tenant due to the failure to make two monthly rent payments the tenant is contractually obligated to make (see section 3.4.1.). The suit is pending in court; after an initial hearing in early 2024, the negotiation was adjourned.

In 2022, arbitration proceedings in connection with the contractual guarantee provided by the Group to the buyer of the angelo hotel in Prague were concluded. Based on the arbitration ruling, provisions that had been formed in this context were partially utilised and partially released to income.

## 9.1.2. Contractual performance obligations (Investment Properties)

Before the reporting date, the Group committed to handing over rental spaces to tenants in Poland. In this context, Warimpex agreed to provide fit-out contributions for the future tenants in a total amount of EUR 2,999 thousand (2022: EUR 480 thousand).

## 9.1.3. Contractual bonds and guarantees

The Group was subject to the following contractual bonds and guarantees on the reporting date:

|                                                                                                           | Maximum<br>outstanding<br>amount<br>2023 | 2022  |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------|-------|
| Corporate guarantee and bank<br>guarantee related to the leasing of<br>the InterContinental hotel, Warsaw | 4,681                                    | 4,252 |

Warimpex issued a corporate guarantee to the lessor of the InterContinental hotel in Warsaw, which is operated by a 50/50 joint venture. Due to the financial losses of the hotel caused by the pandemic, the hotel lease agreement and the terms of the corporate guarantee were changed in the prior year. As a result, the guarantee was extended until 31 August 2040 (previously until 30 September 2039) and amended to EUR 1,022 thousand (2022: EUR 841 thousand). There is also a bank guarantee in the amount of EUR 3,659 thousand with a term until October 2024, which has to be extended on an annual basis.

#### 9.2. Information about leases

#### 9.2.1. Leases as the lessee

The disclosures required for leases according to IFRS 16 are either contained in the associated financial statement items or included in the notes and organised by topic. Below is an overview of the associated cross references in accordance with IFRS 16.52:

| Disclosure in the notes                                               | Cross reference |
|-----------------------------------------------------------------------|-----------------|
|                                                                       |                 |
| Description of the accounting methods                                 | 3.7.            |
| Depreciation on right-of-use assets                                   | 7.2.1.          |
| Interest expenses for lease liabilities                               | 6.8.            |
| Expenses for short-term leases                                        | 6.5.            |
| Expenses for low-value leases                                         | 6.5.            |
| Cash outflow for leases                                               | 7.10.3.         |
| Additions and carrying amounts of right-of-use assets                 | 7.1.1., 7.2.1   |
| Maturity analysis for lease liabilities                               | 8.2.4.          |
| Variable lease payments, subleases, and sale and leaseback agreements | n/a             |

{125}------------------------------------------------

## 9.2.2. Operating leases as lessor

The Group is party to operating leases as lessor in relation to its let investment properties (particularly office buildings).

As at the reporting date, this pertained to the following properties:

- Erzsébet office towers, Budapest
- Car park for Erzsébet, Budapest
- Avior Tower, St. Petersburg
- Zeppelin office tower, St. Petersburg
- Bykovskaya multi-use building, St. Petersburg
- Jupiter office towers, St. Petersburg
- Mogilska 41 Office, Krakow
- Mogilska 43 Office, Krakow
- Mogilska 35 Office, Krakow (from 2024)
- Ogrodowa Office, Łódź
- Red Tower, Łódź
- Office space at Hotel Darmstadt

The existing leases result in the following maturity analysis for the minimum lease payments:

|                                                                          | Total   | Thereof<br>up to<br>1 year | Thereof<br>1 to 5<br>years | More<br>than<br>5 years |
|--------------------------------------------------------------------------|---------|----------------------------|----------------------------|-------------------------|
| Future minimum lease payments,<br>non-cancellable as at 31 December 2022 | 224,363 | 36,110                     | 121,207                    | 67,046                  |
| Future minimum lease payments,<br>non-cancellable as at 31 December 2023 | 172,326 | 34,926                     | 93,700                     | 43,700                  |

{126}------------------------------------------------

#### 9.3. Related party disclosures

#### 9.3.1. Overview of related parties

The following enterprises/persons are related parties to the Group and have the following business relations:

#### **Amber Privatstiftung**

A-1210 Vienna, Floridsdorfer Hauptstrasse 1 (FN 178109a, Commercial Court Vienna), as at the reporting date holds 10.7 per cent of the shares in Warimpex Finanz- und Beteiligungs AG. Franz Jurkowitsch is the beneficiary.

#### **Bocca Privatstiftung**

A-1210 Vienna, Floridsdorfer Hauptstrasse 1 (FN 178104v, Commercial Court Vienna), as at the reporting date holds 10.6 per cent of the shares in Warimpex Finanz- und Beteiligungs AG. Georg Folian is the beneficiary.

#### **Ambo GmbH**

A-1210 Vienna, Floridsdorfer Hauptstrasse 1 (FN 328097x, Commercial Court Vienna). Amber Privatstiftung and Bocca Privatstiftung each hold a 50 per cent stake in this company. Warimpex provides services to Ambo GmbH to a minor extent.

#### **Georg Folian**

Was Deputy Chairman of the Management Board of Warimpex Finanz- und Beteiligungs AG until 31 December 2017 and held 11.4 per cent of the shares in the Company as well as a proportionate stake of 3.2 per cent via a subsidiary on the reporting date.

#### **Management Board:**

The Management Board of Warimpex Finanz- und Beteiligungs AG is composed of the following members:

| Name                  | Function        | Stake in Warimpex Finanz- und Beteiligungs AG (direct): | Stake in Warimpex Finanz- und Beteiligungs AG (indirect as beneficiary): |
|-----------------------|-----------------|---------------------------------------------------------|--------------------------------------------------------------------------|
| Franz Jurkowitsch     | Chairman        | 11.1% (+ 3.2% proportionate stake)                      | 10.7%                                                                    |
| Daniel Folian         | Deputy chairman | < 0.1%                                                  | n/a                                                                      |
| Alexander Jurkowitsch | Member          | 0.6%                                                    | n/a                                                                      |
| Florian Petrowsky     | Member          | < 0.1%                                                  | n/a                                                                      |

#### **Supervisory Board:**

The Supervisory Board of Warimpex Finanz- und Beteiligungs AG is composed of the following members:

| Stake in Warimpex  |                 |                              |  |
|--------------------|-----------------|------------------------------|--|
| Name               | Function        | Finanz- und Beteiligungs AG: |  |
|                    |                 |                              |  |
| Günter Korp        | Chairman        | < 0.1%                       |  |
| Thomas Aistleitner | Deputy chairman | 0.0%                         |  |
| Harald Wengust     | Member          | 0.5%                         |  |
| Gina Goëss         | Member          | 0.0%                         |  |
| Hubert Staszewski  | Member          | 0.0%                         |  |

#### **All subsidiaries and joint ventures:**

Please refer to the information about subsidiaries in section 4. and to the information about joint ventures in section 7.3.

{127}------------------------------------------------

#### 9.3.2. Related party transactions

#### 9.3.2.1. Transactions with Ambo GmbH

|                                                | 2023 | 2022 |
|------------------------------------------------|------|------|
| Income from<br>performance management          | 22   | 20   |
| Receivable from Ambo GmbH<br>as at 31 December | 27   | –    |

#### 9.3.2.2. Transactions with Georg Folian

|                                                 | 2023      | 2022      |
|-------------------------------------------------|-----------|-----------|
| Consulting fee                                  | (3)       | (2)       |
| Clerical activities for Mr Folian               | 18        | 17        |
|                                                 | <b>15</b> | <b>15</b> |
| Receivables from Mr Folian<br>as at 31 December | 3         | 3         |

#### 9.3.2.3. Transactions with Management Board members

|                                                                                           | 2023  | 2022  |
|-------------------------------------------------------------------------------------------|-------|-------|
| Directors' remuneration 1 January to<br>31 December (without provisions)                  | 1,284 | 3,057 |
| Liabilities due to Management Board<br>members as at 31 December                          | 1,928 | 1,928 |
| The directors' remuneration breaks down among the<br>Management Board members as follows: |       |       |
| Franz Jurkowitsch                                                                         | 407   | 993   |
| Daniel Folian                                                                             | 292   | 688   |
| Alexander Jurkowitsch                                                                     | 292   | 688   |
| Florian Petrowsky                                                                         | 292   | 688   |
|                                                                                           | 1,284 | 3,057 |

#### The directors' remuneration breaks down as follows:

| Current benefits              | 1,284 | 3,057 |
|-------------------------------|-------|-------|
| Variable remuneration (bonus) | –     | 1,928 |
| Regular remuneration          | 1,284 | 1,129 |

In addition, the following items were recognised for future entitlements of the Management Board members:

| Change in provision for<br>severance payments | 59  | 77  |
|-----------------------------------------------|-----|-----|
| Pension reimbursement premiums                | 215 | 182 |

The variable remuneration (bonus) for the Management Board amounts to 4.5 per cent of the annual profit attributable to the shareholders of the parent.

Pension plans were in force for the Management Board members Daniel Folian, Alexander Jurkowitsch, and Florian Petrowsky on the reporting date. These plans are classified as defined contribution pension plans. Thus, the premiums for the pension reimbursement insurance are recognised through profit or loss.

The entitlement to the retirement pension is valid from the time the beneficiary reaches the age of 65 and corresponds to the amount of the pension benefits from the pension reimbursement insurance with a 20-year pension guarantee period from the start of the pension payments. Adjustments to the insurance premiums and profit sharing for the pension reimbursement insurance increase the retirement pension. In the case of early retirement and collection of a permanent, legally stipulated pension, the beneficiary is eligible for an early retirement pension. Alternatively, the benefits can be transferred or settled via a lump-sum payment. The pension benefits vest three years after the original pension commitment in the event of termination without cause and after 15 years in the event of resignation.

Other termination entitlements are governed by the Austrian Salaried Employee Act (AngG).

#### 9.3.2.4. Transactions with Supervisory Board members

|                                                             | 2023 | 2022 |
|-------------------------------------------------------------|------|------|
| Supervisory Board remuneration                              | 180  | 166  |
| Fees paid to Supervisory Board<br>members as at 31 December | 119  | 106  |

The remuneration of the Supervisory Board breaks down among the Supervisory Board members as follows:

| Günter Korp        | 73.5         | 64.5         |
|--------------------|--------------|--------------|
| Thomas Aistleitner | 49.5         | 48.0         |
| Harald Wengust     | 27.0         | 23.3         |
| Hubert Staszewski  | 15.0         | 15.0         |
| Gina Goëss         | 15.0         | 15.0         |
|                    | <b>180.0</b> | <b>165.8</b> |

The Supervisory Board members' remuneration represents current liabilities.

Transactions with the members of the Supervisory Board all pertain solely to the parent company.

{128}------------------------------------------------

### 9.3.2.5. Transactions with joint ventures

|                                                          | 2023    | 2022    |
|----------------------------------------------------------|---------|---------|
| Income from transactions<br>with joint ventures          | 182     | 226     |
| Expenses from joint ventures                             | (149)   | (132)   |
| Receivables due from joint ventures<br>as at 31 December | 6       | 6       |
| Liabilities to joint ventures<br>as at 31 December       | (4,101) | (4,114) |

The income from transactions with joint ventures primarily pertains to the allocation of costs to joint ventures and interest received from joint ventures. The expenses are interest expenses. The liabilities to joint ventures include the non-current payable related to the allocation of a security account for a rent guarantee.

Please refer to section 9.1.3. for information about contractual bonds and guarantees issued for joint ventures.

#### 9.4. Events after the reporting date

There are no significant events after the reporting date.

**Vienna, 22 April 2024** 

lisa

**Franz Jurkowitsch** Chairman of the Management Board

A. An

**Alexander Jurkowitsch** Member of the Management Board

Daniel Folim

**Daniel Folian** Deputy Chairman of the Management Board

signature

**Florian Petrowsky** Member of the Management Board

{129}------------------------------------------------

# *Auditor's Report\**

#### Report on the Consolidated Financial Statements

#### Audit Opinion

We have audited the consolidated financial statements of **Warimpex Finanz- und Beteiligungs Aktiengesellschaft, Vienna,**

and of its subsidiaries (the Group) comprising the consolidated statement of financial position as of December 31, 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the fiscal year then ended and the notes to the consolidated financial statements.

Based on our audit the accompanying consolidated financial statements were prepared in accordance with the legal regulations and present fairly, in all material respects, the assets and the financial position of the Group as of December 31, 2023 and its financial performance for the year then ended in accordance with the International Financial Reporting-Standards (IFRS) as adopted by EU, and the additional requirements under Section 245a Austrian Company Code UGB.

#### Basis for Opinion

We conducted our audit in accordance with the regulation (EU) no. 537/2014 (in the following "EU regulation") and in accordance with Austrian Standards on Auditing. Those standards require that we comply with International Standards on Auditing (ISA). Our responsibilities under those regulations and standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We are independent of the Group in accordance with the Austrian General Accepted Accounting Principles and professional requirements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained until the date of this auditor's report is sufficient and appropriate to provide a basis for our opinion by this date.

#### Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consoli-dated financial statements of the fiscal year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The following are the key audit matters that we identified:

- Valuation of investment property
- Valuation of property, plant and equipment
- Control of Russian subsidiaries

#### *Title*

#### Valuation of investment property

#### *Risk*

Warimpex Finanz- und Beteiligungs Aktiengesellschaft reports investment properties in the amount of TEUR 323,235 and a negative result from revaluation amounting to TEUR 38,313 in the consolidated financial statements as of December 31, 2023.

Investment properties are measured at fair value based on valuation reports from external valuation experts.

The valuation of investment properties is subject to material assumptions and estimates. The material risk for every individual property exists when determining assumptions and estimates such as the discount/capitalization rate and rental income and for investment properties under development the construction and development costs to completion and the developer's profit. A minor change in these assumptions and estimates can have a material impact on the valuation of investment properties.

The respective disclosures relating to significant judgements, assumptions and estimates are shown in Section 3.4.1., 3.4.3.1., 3.9., 6.6. and 7.1. in the consolidated financial statements.

\* This report is a translation of the original report in German, which is solely valid. Publication or sharing with third parties of the consolidated financial statements together with our auditor's opinion is only allowed if the consolidated financial statements and the management report for the Group are identical with the German audited version. This audit opinion is only applicable to the German and complete consolidated financial statements with the management report for the Group. Section 281 paragraph 2 UGB (Austrian Company Code) applies to alternated versions.

{130}------------------------------------------------

#### *Consideration in the audit*

To address this risk, we have critically assessed the assumptions and estimates made by management and the external valuation experts and performed, among others, the following audit procedures with involvement of our internal property valuation experts:

- Assessment of concept and design of the underlying property valuation process
- Assessment of the competence, capability and objectivity of the external valuation experts engaged by management, in particular regarding the external expert operating in Russia
- Assessment of the applied methods and the mathematical accuracy of selected valuation reports as well as assessment of the plausibility of the underlying assumptions (eg. Rental income, discount/capitalization rate, vacancy rate), if available by means of comparison with market data
- Check of certain input-data as included in the valuation reports with data of the underlying tenant agreements
- Assessment of appropriate note disclosures

#### *Title*

#### Valuation of property, plant and equipment

#### *Risk*

Warimpex Finanz- und Beteiligungs Aktiengesellschaft reports property, plant and equipment in the amount of TEUR 33,106 and a result from reversal of impairment amounting to TEUR 553 in the consolidated financial statements as of December 31, 2023. Property, plant and equipment mainly consists of two hotel properties.

For property, plant and equipment with a certain useful life it is necessary to assess at the end of each reporting period whether there is any indication that an asset may be impaired or whether impairments of prior periods have to be reversed. If such an indication exists, the entity shall estimate the recoverable amount of the asset.

The recoverable amount is determined using valuation reports by external valuation experts and are subject to material assumptions and estimates. The material risk exists when determining assumptions and estimates such as the discount/ capitalization rate and future cash flows from hotel operation. A minor change in these assumptions and estimates can have a material impact on the valuation of property, plant and equipment.

The respective disclosures relating to property, plant and equipment and relating judgements, assumptions and estimates are shown in Section 3.4.1., 3.4.2., 3.4.3.1., 3.10., 6.6. and 7.2. in the consolidated financial statements.

#### *Consideration in the audit*

To address this risk, we have critically assessed the assumptions and estimates made by management and the external valuation experts and performed, among others, the following audit procedures with involvement of our internal property valuation experts:

- Assessment of concept and design of the underlying property valuation process
- Assessment of the competence, capability and objectivity of the external valuation experts engaged by management, in particular regarding the external expert operating in Russia
- Assessment of the applied methods and the mathematical accuracy as well as assessment of the plausibility of the underlying assumptions if available by means of comparison with market data
- Assessment of appropriate note disclosures

## *Title* Control of Russian subsidiaries

## *Risk*

On 24 February 2022, Russian troops invaded Ukraine, thus starting a conflict that has resulted in significant economic upheavals due to the international sanctions imposed against Russia as well as the reactions in Russia and will most likely continue to have an impact for some time.

Regarding the changed or changing legal situation in Russia, the Group has examined whether it continues to control the Russian subsidiaries and should continue to fully consolidate them.

The main risk lies in management's assumption regarding control of the Russian subsidiaries. According to IFRS 10, a parent company must consolidate the subsidiaries it controls. Control exists when the Group is exposed to, or has rights, to variable returns from its involvement and has the ability to affect those returns through its power over the investee. A change in this assumption leads to the deconsolidation of the Russian subsidiaries.

The respective disclosures relating to the main relating judgements, assumptions and estimates are shown in Section 3.4.1. in the consolidated financial statements.

{131}------------------------------------------------

## *Addressing in the Scope of the Final audit*

To address this risk, we critically reviewed management's assumptions and performed the following audit procedures, among others:

- Enquiry of the full Management Board of Warimpex and the Russian component auditor regarding the ability to exercise power by directing the relevant activities of the individual Russian subsidiaries during the financial year and after the balance sheet date
- Assessment of the risk exposure to variable returns from Warimpex involvement by examining incoming payments from Russia as well as the power of disposition over the remaining liquidity on Russian bank accounts
- Assessment of whether the criteria for controlling the Russian subsidiaries under IFRS 10 are still met
- Assessment of appropriateness of note disclosures

#### Other Information

Management is responsible for the other information. The other information comprises the information included in the annual report and the annual financial report, but does not include the consolidated financial statements, the Group's management report and the auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, to consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

## Responsibilities of Management and of the Audit Committee for the Consolidated Financial Statements

Management is responsible for the preparation of the consolidated financial statements in accordance with IFRS as adopted by the EU, and the additional requirements under Section 245a Austrian Company Code UGB for them to present a true and fair view of the assets, the financial position and the financial performance of the Group and for such internal controls as management determines are necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

## Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU regulation and in accordance with Austrian Standards on Auditing, which require the application of ISA, always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the EU regulation and in accordance with Austrian Standards on Auditing, which require the application of ISA, we exercise professional judgement and maintain professional scepticism throughout the audit.

#### We also:

· identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or er

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ror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- · obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- · evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- · conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- · evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- · obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

## Report on Other Legal and Regulatory Requirements

## Comments on the Management Report for the Group

Pursuant to Austrian Generally Accepted Accounting Principles, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the management report for the Group was prepared in accordance with the applicable legal regulations.

Regarding the consolidated non-financial statement contained in the group management report, it is our responsibility to examine whether it has been prepared, to read it and to evaluate whether it is, based on our knowledge obtained in the audit, materially inconsistent with the consolidated financial statements or otherwise appears to be materially misstated.

Management is responsible for the preparation of the management report for the Group in accordance with Austrian Generally Accepted Accounting Principles.

We conducted our audit in accordance with Austrian Standards on Auditing for the audit of the management report for the Group.

## *Opinion*

In our opinion, the management report for the Group was prepared in accordance with the valid legal requirements, comprising the details in accordance with Section 243a Austrian Company Code UGB and is consistent with the consolidated financial statements.

## *Statement*

Based on the findings during the audit of the consolidated financial statements and due to the thus obtained understanding concerning the Group and its circumstances no material misstatements in the management report for the Group came to our attention.

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## Additional information in accordance with article 10 EU regulation

We were elected as auditor by the ordinary general meeting at June 1, 2023. We were appointed by the Supervisory Board on July 20, 2023. We are auditors without cease since 2007.

We confirm that the audit opinion in the Section "Report on the consolidated financial statements" is consistent with the additional report to the audit committee referred to in article 11 of the EU regulation.

We declare that no prohibited non-audit services (article 5 par. 1 of the EU regulation) were provided by us and that we remained independent of the audited company in conducting the audit.

### Responsible Austrian Certified Public Accountant

The engagement partner is Mr. Erich Sorli, Certified Public Accountant.

Vienna, April 22, 2024

## ERNST & YOUNG WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT M.B.H.

**Sorli mp Maderthaner mp** Wirtschaftsprüfer Wirtschaftsprüferin Certified Public Accountant Certified Public Accountant

**Mag. Hans-Erich ppa Mag. Benedicte**

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Image /page/134/Picture/0 description: This image shows two tall buildings in Warsaw, Poland. The building on the right is the InterContinental Hotel, and the building on the left is another skyscraper. The InterContinental Hotel has the InterContinental logo on the top. The text on the bottom of the image says "InterContinental\*\*\*\*\* Warsaw, PL". The text on the top of the image says "ANNUAL REPORT 2023 WARIMPEX 135".

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# *Supervisory Board Report*

#### Fundamental aspects

The Supervisory Board of Warimpex Finanz- und Beteiligungs Aktiengesellschaft was regularly informed by the Management Board of all significant transactions, the development of business, the business and financial situation of the Group and its equity interests, and the outlook with regard to future developments in detailed verbal and written reports as well as at regular meetings during the 2023 financial year and properly fulfilled all of the duties and control functions required of it by law, the articles of association of the Company, and the terms of reference of the Supervisory Board. In particular, the Supervisory Board supervised the Management Board in the direction of the Company and ensured that the operations of the Company were managed properly. The Chairman of the Supervisory Board also maintained regular contact with the Chairman of the Management Board and his deputy, in particular to evaluate, discuss, and exchange ideas and information about the Company's strategic orientation, the future development of business, and the Company's risk management. One of the key topics at the Supervisory Board meetings during the 2023 financial year was the economic impact of the military conflict in Ukraine on the Company and its short- and medium-term development and the resulting strategic necessities. Discussions about the development of revenues and earnings, liquidity forecasts, and the Company's financial position were also a regular and integral part of the Supervisory Board meetings.

The Company is committed to compliance with the Austrian Code of Corporate Governance (ACCG) as well as the Polish Best Practice for GPW Listed Companies 2021 (Best Practice). The Supervisory Board faithfully fulfilled the duties and responsibilities laid down in these codes in the interest of continuing and further developing the Company's responsible and sustainable corporate governance. The articles of association of the Company and the terms of reference of the Management Board and Supervisory Board are amended as needed to account for new legal requirements. Deviations from individual corporate governance rules defined in the ACCG or the Polish Best Practice relate to the Company's structure and/or to Polish rules that are not complied with due to the Company's primary orientation towards the relevant Austrian regulations.

Mr Hubert Staszewski was reappointed to the Supervisory Board at the Annual General Meeting on 1 June 2023.

A total of five Supervisory Board meetings were held in financial year 2023, at which the necessary resolutions were adopted in each case. To the extent necessary and permitted, individual resolutions of the Supervisory Board were adopted by way of circular resolution. All members of the Supervisory Board fulfilled the minimum attendance requirements.

The remuneration report was reviewed by the Company's Supervisory Board and approved in April 2024.

#### Committees

The Supervisory Board has set up three permanent committees: the Audit Committee, the Project Committee, and the Personnel Committee. A separate strategy committee has not been formed because all such issues are handled by the Supervisory Board as a whole. The members of the committees are appointed for the duration of their tenure on the Supervisory Board. Each committee elects a chairman and a deputy chairman from among its members. An ad hoc committee can be formed if necessary. The resolutions that were adopted at the committee meetings were again discussed in detail at subsequent Supervisory Board meetings, and to the extent that these resolutions were preparatory or recommendatory in nature, they were executed by way of appropriate Supervisory Board resolutions.

#### Audit Committee

In accordance with the law and the terms of reference of the Supervisory Board, the Supervisory Board has set up a permanent committee for reviewing and accepting the annual financial statements (approval of the consolidated financial statements), the proposal for the appropriation of profits, and the management report for the Company and the Group (Audit Committee). In addition to performing the other duties it is responsible for pursuant to the applicable stock corporation regulations, the Audit Committee reviewed the consolidated financial statements in cooperation with the auditor responsible for auditing the financial statements, issued a proposal on the selection of the independent auditor, and reported to the Supervisory Board on this. Mr Aistleitner chairs the Audit Committee and, like his deputy, Mr Korp, possesses special knowledge and practical experience in finance and accounting and in financial reporting (financial expert). Along with the chairman and the deputy chairman, one other member of the Supervisory Board who is independent according to the terms of reference of the Supervisory Board sits on the Audit Committee.

Two Audit Committee meetings were held in financial year 2023. In addition, one resolution in connection with the required increase in the pre-approval framework for non-audit services by the auditor was adopted by way of circular resolution.

#### Project Committee

In accordance with its terms of reference, the Supervisory Board has set up a permanent committee (Project Committee) to monitor and approve transactions that are subject to approval pursuant to § 95 (5) AktG and the terms of reference of 

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the Management Board, provided that the total transaction costs do not exceed EUR 50,000,000.00 (fifty million euros). When the total costs of the intended transaction exceed this limit, the transaction must be reviewed and approved by the Supervisory Board as a whole. The Project Committee is chaired by Supervisory Board member Harald Wengust. Two other members of the Supervisory Board who are independent according to the terms of reference of the Supervisory Board also sit on the Project Committee.

During the reporting period, a circular resolution pertaining to the sale of the shares in the holding company for the Palais Hansen Kempinski Vienna was adopted by the Project Committee and reported on to the full Supervisory Board at the following Supervisory Board meeting.

## Personnel Committee

In accordance with its terms of reference, the Supervisory Board has formed a permanent committee that is responsible for personnel matters between the Company and the Management Board (remuneration, issue of proposals for the filling of vacant posts on the Management Board, and succession planning). The Personnel Committee is chaired by Supervisory Board Chairman Günter Korp. Two other members of the Supervisory Board who are independent according to the terms of reference of the Supervisory Board also sit on the Personnel Committee.

Three Personnel Committee meetings were held during the 2023 financial year in relation to the reappointment of the Management Board members Alexander Jurkowitsch and Florian Petrowsky, and two meetings were held concerning the remuneration policy and a potential new bonus system for the Management Board.

#### Annual and consolidated financial statements for 2023

The annual financial statements, the management report, the consolidated financial statements, and the group management report for the year ended 31 December 2023 were audited by Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. The final result of this audit revealed no grounds for objection and the legal provisions were fully complied with, so that unqualified auditor's reports were issued.

The annual financial statements, the management report, the consolidated financial statements including the group management report (and the consolidated non-financial statement), and the corporate governance report were reviewed by the Audit Committee after a comprehensive oral report by the auditor, and their acceptance was proposed to the Supervisory Board at its meeting on 22 April 2024. The Supervisory Board reviewed the annual financial statements including the management report, the consolidated financial statements including the group management report (and the consolidated non-financial statement), and the corporate governance report prepared by the Management Board and approved the annual financial statements. The Audit Committee also proposed to the Supervisory Board that Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. be appointed as the financial auditor for the Company and the Group for the financial year ending on 31 December 2024.

The Supervisory Board thanks the Management Board, the Company's managers, and all employees of Warimpex Group for their hard work and tremendous commitment during the financial year under particularly difficult circumstances due to the economic effects of the military conflict in Ukraine and the changes in interest rates.

Due to its experienced Management Board and proven team, the Supervisory Board believes the Company is also well equipped for the medium- to long-term economic conditions and wishes the Company continued success in the future.

Vienna, April 2024

ST

**Günter Korp** Chairman of the Supervisory Board

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## *Declaration by the Management Board*

We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the financial position, financial performance, and cash flows of the Group as required by the applicable accounting standards and that the group management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces.

Vienna, 22 April 2024

lisa

**Franz Jurkowitsch Daniel Folian**  Responsibilities: Responsibilities: Strategy and corporate communication Finances and accounting,

A. An

**Alexander Jurkowitsch Florian Petrowsky** Responsibilities: Responsibilities: Planning, construction, Transaction management, organisation, information management, and IT human resources, and legal issues

Daniel Folin

*Chairman of the Management Board Deputy Chairman of the Management Board* financial management, and investor relations

signature

*Member of the Management Board Member of the Management Board*

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## *Financial Calendar*

2024

27 May 2024 *Record date for the Annual General Meeting*

> 29 May 2024 *Publication of the results for the first quarter of 2024*

> > 6 June 2024 *Annual General Meeting*

30 August 2024 *Publication of the results for the first half of 2024*

> 29 November 2024 *Publication of the results for the first three quarters of 2024*

> > NOTES

In the interests of readability, we refrained from using gender-sensitive formulations for the most part. Statements referring to people are intended to be gender neutral.

We have compiled this report and checked the data with the greatest possible care. Nonetheless, rounding, typographical, and printing errors cannot be ruled out. The summation of rounded amounts and percentages may result in rounding differences. This report was prepared in German, English, and Polish. In cases of doubt, the German version is authoritative.

#### PUBLICATION DETAILS

Warimpex Finanz- und Beteiligungs AG Floridsdorfer Hauptstraße 1, A-1210 Vienna Investor Relations: Daniel Folian Tel. +43 1 310 55 00-156, investor.relations@warimpex.com

> Photos: Warimpex www.warimpex.com

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