Danubius Hotels Plc, today announced its full year and fourth quarter preliminary, unaudited results. This report contains consolidated financial statements for the period ended 31 December as prepared by the management in accordance with International Financial Reporting Standards (IFRS). Continuing difficult trading conditions in Hungary offset by resilient profit contribution by subsidiaries. HIGHLIGHTS EUR million 1 EUR million 1 Danubius Hotels Group (IFRS) Net sales revenues 9,692 9,307 4 35.1 34.6 2 42,921 43,485 (1) 155.8 155.0 1 EBITDA (8) 16 n.a. (0.0) 0.3 n.a. 4,854 5,741 (15) 17.6 20.5 (14) Operating profit/(loss) (1,193) (1,220) (2) (4.3) (4.2) 2 357 1,122 (68) 1.3 4.0 (68) Financial results (351) (346) 2 (1.3) (1.3) (1) (1,321) (1,529) (14) (4.8) (5.4) (12) Loss before tax (1,545) (1,566) (1) (5.6) (5.5) 1 (965) (407) 137 (3.5) (1.5) 141 Operating cash flow 1,471 1,603 (8) 5.3 5.8 (8) 4,365 3,831 14 15.8 13.7 16 CAPEX 1,191 744 60 4.3 2.7 60 2,529 2,148 18 9.2 7.7 20 HUF/EUR 275.9 270.9 2 n.a. 275.4 280.6 (2) n.a. 1 The presentation currency of the Group is HUF. The EUR amounts are provided as a convenience translation using average f/x rates of the respective periods. In the financial year of total net sales revenues were HUF 42.9 billion, down by 1 compared to last year. The movements in HUF/EUR FX rate and the net lost revenue caused by the volcanic ash together had a considerable negative effect on Hungarian segment revenue in compared to, while in EUR terms we were able to increase revenue compared to last year. Group occupancy in was 60.0 compared to 58.9 in due to the significant occupancy increase in the third quarter, that is regularly the strongest quarter of the group. EBITDA in is down by 15 to HUF 4.9 billion from HUF 5.7 billion due to the following: Hungarian segment s revenue for decreased by 2 to HUF 25.2 billion mainly due to lower revenue recognised from room and F&B services (significantly less banqueting) and from Gundel banqueting services, however the occupancy of hotels increased by 1.7 from 55.5 to 57.2, while the operating result amounted to a loss of HUF 0.6 billion compared to HUF 0.1 billion loss as savings on payroll and other operating expenses partly compensated the negative effect of lower revenues. Czech hotels contributed an operating profit of HUF 574 million in compared to a profit of HUF 623 million in, in spite of the revenue increase of 3 to HUF 7.3 billion due to higher cost of more guest nights. Slovakian segment s operating profit was HUF 134 million in compared to a profit of HUF 356 million in. Revenue in HUF terms decreased by 2 to HUF 9.0 billion, partly thanks to the strengthening of HUF against EUR. Costs were kept tightly under control. In the total revenue of Romanian segment decreased by 2 to HUF 1.5 billion, therefore operating result decreased by HUF 25 million to a profit of HUF 203 million. The Financial result in was a loss of HUF 1.3 billion, compared to a loss of HUF 1.5 billion in. In interest expenses decreased by HUF 577 million compared to as the EURIBOR prime rate was extremely low (around 0.8 in average) and last year the fair value of our Collar&Cap options adversely changed by HUF 97 million increasing the interest expenses by this amount. In weaker HUF caused HUF 0.5 billion unrealised FX loss while it was HUF 0.3 billion in. Loss before tax in was HUF 1.0 billion, compared to a loss of HUF 0.4 billion in. Net cash provided by operating activities in was HUF 4.4 billion, a 14 improvement compared to HUF 3.8 billion net cash provided in. Capital expenditure and investments during amounted to HUF 2.5 billion compared to HUF 2.1 billion spending in. Group level average headcount decreased by 5 in, it was 4,646 compared to 4,876.
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 2/10 FINANCIAL OVERVIEW Hungarian Segment HUNGARY EUR million EUR million Net sales revenues 5,761 5,660 2 20.9 21.0 (1) 25,189 25,742 (2) 91.46 91.75 (0) Operating loss (746) (652) 14 (2.7) (2.3) 18 (553) (86) 540 (2.01) (0.31) 552 Financial results (313) (271) 16 (1.1) (1.0) 12 (1,243) (1,339) (7) (4.51) (4.77) (5) Loss before tax (1,059) (923) 15 (3.8) (3.3) 16 (1,797) (1,426) 26 (6.52) (5.08) 28 CAPEX 244 571 (57) 0.9 2.1 (57) 794 1,273 (38) 2.88 4.54 (36) Total sales revenue and other operating income of decreased by 2 to HUF 25.2 billion, mainly due to lower revenue recognised from room and F&B services and from Gundel banqueting services. The combination of the strengthening of HUF against EUR and the net lost revenue caused by the volcanic ash together still had a negative effect on total revenue compared to, that is estimated to be app. HUF 0.4 billion. Hotel occupancy in was 57.2 compared to 55.5 in, thanks to the impressive increase in Q3 s occupancy by 4, and in by almost 1.The occupancy of Budapest hotels increased by 0.9 percentage point at year-to-date level. In spite of the occupancy increase room revenue of Hungarian hotels in decreased by 3 to HUF 12.9 billion compared to due to the significant decrease of average room rate achieved (ARR) to HUF 12,628, lower by HUF 910 than the comparative figure. The average length of stay was 2.8 days in remained at the same level of last year. The number of guest-nights during financial year of increased to 1,699,016 from 1,657,734 out of which domestic guest-nights represent 19.8, compared to level of 21.5. In financial year guests from Spain, Great Britain and ina decreased the most, but more guests arrived from Ukraine, Russia, USA and Germany. Due to the revenue drop room departmental profit margin decreased from 77.6 to 75.5. Food and beverage revenue of hotels and restaurants for financial year of was HUF 7.5 billion, lower by 2 than the comparative figure, as a direct result of lower banqueting. Full year F&B departmental profit of our hotels fell by HUF 176 million mainly as the result of lower revenue which could not be compensated by the decrease of payroll and cost of sale. Gundel s F&B revenue in decreased by 6 to HUF 984 million. Operational expenses include a net loss of HUF 145 million in respect of selling and impairing wine inventories. In Spa revenue was HUF 1,222 million, remained at the same level of last year, being the combined effect of an increase in the number of treatments sold and a decrease in average price. Spa departmental profit decreased by 5 due to the higher personnel costs associated with more treatments sold. Revenue from security services decreased by 7 in to HUF 774 million. Due to the combined effect of inflation on materials and the effect of cost saving measures full year raw material expenses decreased by 6 to HUF 5.4 billion, however due to more guest nights - the value of services used in increased by 5 to HUF 6.4 billion, within this energy cost felt by 12 to HUF 2,289 million while the amount spent on maintenance work at the hotels and restaurants increased by 5 to HUF 623 million. Personnel expenses of operation in were HUF 10.7 billion, no material change compared to in spite of the increased occupancy of our hotels, in addition the comparison with the prior years was negatively impacted by the movements in accruals. Due to the combined effect of the decrease of 3 months EURIBOR, the decrease of average borrowings over the period and the change in the fair value of interest swap derivatives interest expenses decreased to HUF 716 million from HUF 1,191 million in financial year of. Primarily as the result of depreciation of HUF in against EUR, in which the majority of our long-term borrowings are denominated, a HUF 0.6 billion foreign
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 3/10 exchange loss (mostly unrealised) was recognised in profit and loss, compared to a loss of HUF 0.3 billion in. Capital expenditure during was HUF 794 million compared to HUF 1,273 million spent in, including expenditure on the new operational software. Overall the loss before tax of Hungarian segment was HUF 1.8 billion in, compared to a loss of HUF 1.4 billion in. Czech Segment CZECH Total sales revenue and other operating income in HUF terms grew by 3 to HUF 7,3 billion in financial year of, mainly due to the strengthening of Czech crown against forint. Room revenue of was HUF 4.0 billion, up by 4 as in Marienbad hotels occupancy was 77.0 compared to 75.8, in addition the average room rate achieved (ARR) in CZK term improved to 1,766 from 1,706. The average length of stay was 9.6 days in while it was 9.0 days in. As the result of temporary closures the number of guestnights in was 338,797 compared to 346,842 and the drop in German and domestic guests was partly compensated by increasing number of guests arriving from Israel and certain former Soviet Union countries. The amount of material expenses and services used in increased by 5 to HUF 3.2 billion, within this energy costs increased by 8 to HUF 647 million, while maintenance expenses decreased by 5 to HUF 442 million. Total personnel expenses in financial year were HUF 2.1 billion, up by 2 compared to last year. Due to the decrease of 3 months EURIBOR and the lower amount of borrowings interest expense for was HUF 46 million compared to HUF 73 million. As the result of the strengthening of CZK in against EUR in which all of LLML s long-term borrowings are denominated, a HUF 49 million foreign exchange gain was recognised in profit and loss, compared to a gain of HUF 43 million in. Capital expenditure in amounted to HUF 853 million, up by 60 compared to previous year, including spending on Maria Spa and Vltava Spa House. Overall, the profit before tax of Czech operations for was HUF 578 million compared to HUF 595 million achieved in. Total revenue and income 1,722 1,594 8 7,273 7,067 3 Operating profit (145) (174) (16) 574 623 (8) Financial results (15) (59) (74) 4 (29) n.a. Profit before tax (160) (233) (31) 578 595 (3) CAPEX 455 140 225 853 532 60 HUF/CZK average 11.14 10.46 6 10.90 10.61 3 CZK/EUR average 24.78 25.91 (4) 25.27 26.45 (4)
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 4/10 Slovakian Segment SLOVAKIA Total revenue and income 1,942 1,771 10 9,003 9,187 (2) Operating profit (244) (312) (22) 134 356 (62) Financial results (25) (20) 29 (96) (146) (34) Profit before tax (269) (332) (19) 37 210 (82) CAPEX 285 32 792 458 293 56 HUF/EUR 275.90 270.90 2 275.41 280.58 (2) The functional currency of the Slovakian subsidiary is Euro as of 1 January. Total sales revenue and other operating income in decreased by 2 to HUF 9.0 billion, mainly due to the stronger forint against euro. Room revenue in EUR increased by 2 in as the average room rate (ARR) increased to EUR 41.8 from EUR 40.3 while the occupancy decreased from 62.7 to 62.2. The number of rooms sold decreased from 299,336 to 296,203 in. The number of guestnights in was 480,045 compared to 477,515 in, the average length of stay in financial year of was 10,0 days, the same level of last year. The number of German guests decreased by 15 compared to, together with the decrease of guests from neighbouring countries like Austria and Czech Republic, however the number of guests arriving from Israel and Kuwait increased considerably by 23 and 26, respectively. Comparative revenue included HUF 94 million (EUR 0.3 million) one-off gain on the sale of a land, while there was no sale of fixes assets in financial year of. The amount of material expenses and services used in was HUF 3.3 billion, down by 1, within this, energy cost decreased by 12 to HUF 709 million, mainly due to the implementation of energy savings systems and maintenance expenses were HUF 217 million compared to HUF 212 million in. Personnel expenses for were HUF 3.4 billion, a decrease of 3 in HUF terms, reflecting partly the stronger HUF and headcount reduction measures. Due to the decrease of 3 months EURIBOR and the lower average level of borrowings the interest expenses for amounted to HUF 100 million, compared to HUF 152 million in. Capital expenditure during financial year of was HUF 458 million compared to the HUF 293 million in. Overall, the profit before tax of Slovakian operations for was HUF 37 million compared to a profit of HUF 210 million in.
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 5/10 Romanian Segment ROMANIA Total revenue and income 268 282 (5) 1,456 1,489 (2) Operating profit (56) (82) (32) 203 228 (11) Financial results 3 3 (5) 15 (16) n.a. Profit before tax (53) (79) (33) 217 212 2 CAPEX 207 0 n.a. 425 50 749 HUF/RON average rate 64.33 63.49 1 65.41 66.19 (1) RON/EUR average rate 4.29 4.27 1 4.21 4.24 (1) Total sales revenue and other operating income for decreased by 2 in HUF terms compared to financial year of, in spite of the slight occupancy increase to 56.7 as average room rate (ARR) decreased from RON 107.3 to RON 105.3. Room departmental profitability in RON terms decreased by 2 in. The number of guests during financial year of increased to 36,754 from 35,592. In spite of the combined effect of inflation and extensive refurbishment works total material expenses and services used in was HUF 606 million compared to HUF 605 million last year. Within this, energy cost was HUF 147 million, up by 5 compared to, while maintenance expenses were HUF 50 million in, up by 71 compared to. Due to the decrease in 3 months EURIBOR and the lower average level of borrowings the interest expenses for amounted to HUF 17 million compared to HUF 23 million in. Capital expenditure during financial year of was HUF 425 million compared to HUF 50 million in, the majority of which relates to the reconstruction of new spa pools and the refurbishment of hotel rooms. Being the result of the above the profit before tax of Romanian operations for was HUF 217 million compared to a profit of HUF 212 million in.
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 6/10 Consolidated Balance Sheet Total consolidated asset value amounted to HUF 87.3 billion as of 31 December, no material change compared to the period end of year. Current assets include assets held for sale which comprises the net carrying value, less cost of sale, of a hotel and hospitality property in Hungary. The Group expects to sell these assets within the next twelve months. The amount of trade receivables grew by 6 from HUF 1.37 billion to HUF 1.45 billion. The amount of property, plant and equipment was HUF 76.4 billion at the end of year, that is a HUF 0.3 billion decrease over the last 12 months as the amount of capital expenditures are lower than the amount of amortisation accounted for. From August the 50 investment in Egészségsziget Kft., our associate established to utilise the land acquired near Hotel Gellért became a fully consolidated subsidiary (before this date it was treated as an associate). CP Holdings purchased the remaining 50 shareholding in August and Danubius simultaneously entered into a put and call option agreement with a view to purchase this shareholding. The underlying purchase price paid by CP Holdings and the amount to be paid by Danubius under the option agreement is the same (EUR 1.7m). The option agreements provide for an option fee of EUR 100,000 and interest from August. Total liabilities at the end of the fourth quarter was HUF 34.2 billion, a 1 decrease compared to 31 December. The Group had EUR 91.0 million long-term loans, including short-term portion as of 31 December. The value of shareholders equity increased by 1 compared to 31 December being the combined effect of the after tax loss of HUF 1.0 billion of previous 12 months, the significant, HUF 1.4 billion increase of translation reserve and HUF 0.1 billion increase in non-controlling interest. Cash flow Net cash provided by operating activities in financial year of was HUF 4.4 billion, a considerable improvement compared to HUF 3.8 billion net cash provided in, due to the positive result of working capital changes and lower amount of interest paid. Capital expenditure in was HUF 2.5 billion, a 18 increase compared to, still reflecting our tight cash management program. During financial year of EUR 12.0 million loan has been drawn down and EUR 11.5 million repayment of borrowings has taken place.
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 7/10 APPENDIX I - Unaudited CONSOLIDATED BALANCE SHEET PREPARED IN ACCORDANCE WITH IFRS () 31 December 31 December ange Assets Cash and cash equivalents 4,186 3,537 18 Trade receivables 1,448 1,372 6 Inventory 620 824 (25) Assets held for sale 73 78 (6) Income tax receivables 4 - n.a. Other receivables current assets 972 984 (1) Total current assets 7,303 6,795 7 Property, plant and equipment 76,448 76,795 (0) Intangible assets 3,233 3,208 1 Other non-current assets 24 72 (67) Deferred tax assets 326 201 92 Total non-current assets 80,031 80,276 0 Total assets 87,334 87,071 0 Liabilities and Shareholders' Equity Trade accounts payable 2,204 1,995 10 Advance payments from guests 616 672 (8) Income tax payable 231 6 3,750 Other payables and accruals 3,094 2,901 7 Interest-bearing loans and 6,130 5,290 16 Provisions 390 344 13 Total current liabilities 12,665 11,208 13 Interest-bearing loans and 19,602 21,005 (7) Deferred tax liabilities 1,081 1,332 (19) Provisions 897 1,033 (13) Total non-current liabilities 21,580 23,370 (8) Total liabilities 34,245 34,578 (1) Shareholders' Equity Share capital 8,285 8,285 - Capital reserve 7,435 7,435 - Treasury shares (1,162) (1,162) - Translation reserve 7,817 6,354 23 Retained earnings 28,195 29,152 (3) Attributable to equity holders of the 50,570 50,064 1 parent Non-controlling interests 2,519 2,429 4 Total shareholders equity 53,089 52,493 1 Total liabilities and shareholders' equity 87,334 87,071 0
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 8/10 APPENDIX II - Unaudited CONSOLIDATED STATEMENT OF OPERATION PREPARED IN ACCORDANCE WITH IFRS () Room revenue 4,426 4,308 3 20,923 21,215 (1) Food and beverage revenue 3,089 3,003 3 12,727 13,020 (2) Spa revenue 1,276 1,206 6 5,798 5,841 (1) Other departmental revenue 500 132 279 2,102 1,777 18 Revenue from wineries 45 54 (17) 132 155 (15) Revenue from security services 185 224 (17) 774 835 (7) Other income 172 380 (55) 466 642 (27) Total operating revenue and other income 9,692 9,307 4 42,921 43,485 (1) Cost of goods purchased for resale 134 103 30 447 432 3 Raw material costs 2,301 2,290 0 8,965 9,291 (4) Services used 2,386 2,444 (2) 9,601 9,246 4 Material expenses and services used 4,820 4,837 (0) 19,012 18,969 0 Wages and salaries 2,860 2,586 11 11,704 11,407 3 Other personnel expenses 265 501 (47) 1,197 1,393 (14) Taxes and contributions 874 823 6 3,595 3,771 (5) Personnel expenses 3,999 3,910 2 16,496 16,571 (0) Depreciation and amortisation 1,185 1,236 (4) 4,497 4,619 (3) Other expenses 877 647 36 2,533 2,293 10 anges in inventories of finished goods and work in progress 44 (41) n.a. 74 (4) n.a. Work performed by the entity and capitalised (39) (62) (36) (47) (85) (44) Total operating expenses 10,886 10,527 3 42,565 42,363 0 Profit/(Loss) from operations (1,193) (1,220) (2) 357 1,122 (68) Interest income 21 95 (78) 77 200 (61) Interest expense (171) (279) (39) (862) (1,439) (40) Foreign currency gain/(loss) (201) (162) 24 (536) (290) 85 Financial Income/(loss) (351) (346) 2 (1,321) (1,529) (14) Loss before tax (1,545) (1,566) (1) (965) (407) 137 Current tax expense 276 (76) n.a. 334 54 519 Deferred tax expense / (benefit) (554) (62) 794 (415) 295 n.a. Loss for the year (1,267) (1,426) (11) (884) (756) 17 Attributable to: Owners of the Company (1,251) (1,376) (9) (936) (801) 17 Non-controlling interest (16) (50) (68) 52 45 16 Basic and diluted earnings per share (HUF per share): (158) (174) (9) (118) (101) 17
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 9/11 APPENDIX III Unaudited CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME () Loss for the year (1,267) (1,426) (11) (884) (756) 17 Other comprehensive income Foreign currency translation differencies for foreign operations 67 (490) n.a. 1,501 394 281 Total other comprehensive income 67 (490) n.a. 1,501 394 281 Total comprehensive income for the period (1,200) (1,916) (37) 617 (362) n.a. Attributable to: Owners of the Company (1,139) (1,869) (39) 527 (479) n.a. Non-controlling interest (61) (47) 30 90 117 (23) Total comprehensive income for the period (1,200) (1,916) (37) 617 (362) n.a.
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 10/11 APPENDIX IV - Unaudited CONSOLIDATED STATEMENT OF CASH FLOWS PREPARED IN ACCORDANCE WITH IFRS () Profit/(loss) from operations (1,193) (1,220) (2) 357 1,122 (68) Depreciation and amortisation 1,185 1,236 (4) 4,497 4,619 (3) Gain on sale of fixed assets - 1 n.a. - (90) n.a. ange of provisions 65 88 (26) (90) (303) (70) Write off of receivables (46) (5) 820 (46) 6 n.a. anges in working capital (Increase)/decrease of accounts receivable and current assets 1,609 2,918 (45) (251) 1,073 n.a. (Increase)/decrease of inventory 150 (65) n.a. 204 43 374 (Decrease)/increase of accounts payable and other current liabilities (45) (1,063) (96) 821 (1,261) n.a. Interest paid (204) (210) (3) (1,058) (1,301) (19) Income tax paid (47) (75) (37) (69) (77) (10) Net cash provided by operating activities 1,471 1,603 (8) 4,365 3,831 14 Purchase of property, plant and equipment and intangibles (1,191) (744) 60 (2,529) (2,148) 18 Interest received 17 87 (80) 82 192 (57) Proceeds on sale of property, plant and equipment - 31 n.a. - 125 n.a. Cash paid on acquisition - - n.a. - (1,274) n.a. Net cash used in investing activities (1,174) (626) 88 (2,447) (3,105) (21) Receipt of long-term bank loans 1,088 (130) n.a. 3,282 1,369 140 Repayment of long-term bank loans (1,470) (1,376) 7 (3,200) (3,285) (3) Net cash provided/ (used) by financing activities (382) (1,506) (75) 82 (1,916) n.a. Net increase (decrease) in cash held (101) (529) (81) 1,984 (1,190) n.a. Cash at the beginning of the financial year, net 1 4,066 2,510 62 1,981 3,171 (38) Cash and cash equivalents at the end of the period, net 1 3,965 1,981 100 3,965 1,981 100 1 Represents the amount of cash and cash equivalents less the amount of bank overdrafts
FULL YEAR AND FOURTH QUARTER PRELIMINARY RESULTS OF DANUBIUS HOTELS GROUP PAGE 11/11 APPENDIX V SUBSEQUENT EVENTS There has not been any matter or circumstance occurring subsequent to the end of the reporting period that has significantly affected, or may significantly affect, the operations of the Group, the result of those operations or the state of affairs of the Group in future periods. APPENDIX VI SHAREHOLDER STRUCTURES AND CHANGES IN ORGANISATION In there were no significant organisational changes within the Group. Period end of Shareholder 1 Q1 Q2 Q3 CP Holdings and its investments 2 76.41 77.61 77.61 77.61 77.72 Of which: CP Holdings Ltd. 37.94 37.94 37.94 37.94 37.94 Interag Zrt. 3 31.45 31.45 31.45 31.45 31.45 Israel Tractors 6.12 6.12 6.12 6.12 6.12 Foreign financial investors 11.74 9.43 9.02 8.95 9.33 Domestic financial investors 4.45 5.34 5.78 5.75 5.45 Domestic individuals 2.70 2.92 2.90 2.99 2.80 Employees 0.18 0.18 0.18 0.18 0.18 Treasury shares 4.52 4.52 4.52 4.52 4.52 Total 100.00 100.00 100.00 100.00 100.00 1 The table shows shareholders separately if their shareholding reaches or exceeds 5, according to the Book of Shares. 2 The 77.72 ownership of CP Holdings and its investments results an 81.40 combined direct interest in Danubius Hotels Nyrt. and includes the shares held by Sir Bernard Schreier, the airman of CP Holdings. 3 The Danubius shares previously held by Agrimill-Agrimpex Zrt. are currently owned by Interag Zrt. as the result of their merge in APPENDIX VII DECLARATION Danubius Hotels Nyrt. hereby declares that the unaudited consolidated IFRS Financial Statements as adopted by the EU presented in this report follow the same accounting standards, procedures and estimations of and therefore can be compared with previous year-end and interim IFRS financial statements. The financial statements give a true and fair view on the assets, liabilities, financial position, net income and loss for the period of the Issuer Company and the consolidated subsidiaries. In addition, this report also gives true and fair view on the position, development, performance and risks of the Issuer Company and the consolidated subsidiaries. The financial statements do not conceal any fact or information that would be substantial in the judgement of the issuer's position. As issuer, Danubius Hotels Nyrt. assumes liability for the contents of the reports. Danubius Hotels Nyrt. declares that it is liable as issuer for the reimbursement of losses caused by the omission and/or the misleading contents of regular and extraordinary announcements. Dr. Imre Deák János Tóbiás Member of the Board of Directors Member of the Board of Directors