Excellent Results at Duna House Group

Duna House Group reported its strongest quarter ever in Q2 2022. The Italian acquisition has delivered the expectations, while giving stability via the euro exposure, it contributed more than 50% of revenue and more than 60% of EBITDA. The Group faces a period of challenges and opportunities in the current market environment.

Following tripling the revenue in Q1 2022, the Group increased its revenue to HUF 9.1 billion in Q2, while its clean core EBITDA doubled year-on-year to HUF 1.2 billion. Clean core profit after tax increased by 111% year-on-year to HUF 947 million in the quarter.

Since its IPO in November 2016, Duna House Group has undergone a substantial transformation: i) over the years, it has increased its quarterly revenues by 760% and increased its quarterly EBITDA from its services activities seven-fold; ii) financial intermediation has become the dominant business segment accounting for 80% of revenues and EBITDA; iii) 80% of its revenues and 60% of its EBITDA are generated abroad. However, the share price has risen merely by 22% since the IPO.

Italy has become the Group's largest profit-generating country, jumping to a quarterly EBITDA of HUF 0.8 billion. Hungarian operations generated EBITDA of HUF 0.5 billion, while Poland fell to an EBITDA of HUF 29 million in a market dominated by floating-rate loans (for market conditions refer to page 15).

Within the MyCity real estate development business, the handover of apartments of the Forest Hill project has continued generating direct EBITDA of HUF 86 million in the quarter. The Group recognized total revenue of HUF 1.7 billion from the deliveries in 2021 - Q2 2022, with further potential net proceeds of HUF 3.5 billion in the second half of the year, following the receipt of the

occupancy permits for the apartments in the 2-3rd row buildings, expected in October.

The Group has gradually prepaid its project loan from the received purchase price and advance payments totaling HUF 3.7 billion and has completely repaid project loan on 18 July 2022. The total expected total cash flow from the project after repayment of the project loan is HUF 4.7-4.8 billion.