Supplementary Notes
to the 2014 Annual Financial Statements
of 4iG Nyrt.
4iG Nyrt.
H-1037 Budapest, Montevideo u. 8.
Telephone: +36-1-371-2910
Fax: +36-1-371-2911
http://www.4ig.hu
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
1 of 25
Table of Contents
1
2
Brief Presentation of the Company ................................................................................................. 5
1.1
General Data ............................................................................................................................ 5
1.2
Scope of Activities .................................................................................................................. 5
1.3
Share Information .................................................................................................................... 6
1.4
Executives, Controlled Undertakings ...................................................................................... 6
1.4.1
Senior Executives as of 31 December 2014 .................................................................... 6
1.4.2
Remuneration and Authorisation of the Board Members to Represent the Company .... 7
1.4.3
Remuneration of the Members of the Supervisory Board ............................................... 7
1.4.4
Remuneration of the Members of the Audit Committee ................................................. 7
1.4.5
Authorized Signatories of the Financial Statements........................................................ 7
1.4.6
Data on Controlled Business Associations as at the Balance Sheet Date........................ 7
1.4.7
Consolidated Financial Statements of the Company Group ............................................ 8
1.4.8
Ownership Structure as at 31 December 2014 ................................................................ 8
Application of the Accounting Policy ............................................................................................. 9
2.1
Method of Record Keeping ..................................................................................................... 9
2.2
Form and Type of the Financial Statements ............................................................................ 9
2.3
Fiscal Year, Reporting Date .................................................................................................... 9
2.4
Date of Compilation of the Balance Sheet .............................................................................. 9
2.5
Interpretation of Errors with Material Amounts ...................................................................... 9
2.6
Interpretation of Material Errors ............................................................................................. 9
2.7
Interpretation of "Differences of Material Amounts" .............................................................. 9
2.8
"Interpretation of Material Overall Impact" ............................................................................ 9
2.9
Accounting for Depreciation ................................................................................................... 9
2.10
Accounting for Impairment Loss........................................................................................... 10
2.11
Reversals ............................................................................................................................... 10
2.12
Value Adjustments ................................................................................................................ 10
2.13
Capitalization of Experimental Development ....................................................................... 10
2.14
Valuation of Purchased Inventory ......................................................................................... 10
2.15
Provisioning........................................................................................................................... 10
2.16
Valuation of Items not Highlighted ....................................................................................... 10
2.17 Impact of Other Changes in the Accounting Policy .................................................................... 110
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3
2.18
Recording and Recognising Material Stock .......................................................................... 11
2.19
Rules for Stocktaking ............................................................................................................ 11
2.20
Rules for Cash Handling ....................................................................................................... 11
2.21
Deviation from Provisions of the Act .................................................................................... 11
2.22
Information Related to Specific Activities ............................................................................ 11
2.23
Valuation of Amounts in Foreign Currencies........................................................................ 11
2.24
Calculation of Corporate Tax ................................................................................................ 11
2.25
Data of the Person Responsible for Compiling the Balance Sheet:....................................... 11
2.26
Auditor................................................................................................................................... 11
Main Lines in the 2014 Balance Sheet of 4iG Nyrt. and Supplementary Notes Thereto .............. 12
3.1
Modifications for the Previous Years .................................................................................... 12
3.2
Comparability ........................................................................................................................ 12
3.3
Layout of the Balance Sheet .................................................................................................. 13
3.4
New Items in the Balance Sheet ............................................................................................ 13
3.5
Assets in Management of the Balance Sheet ......................................................................... 13
3.6
Impairment Loss .................................................................................................................... 13
3.7
Fixed Assets .......................................................................................................................... 13
3.7.1
Intangible Assets ........................................................................................................... 13
3.7.2
Tangible Assets ............................................................................................................. 14
3.7.3
Invested Financial Assets .............................................................................................. 14
3.8
3.8.1
Inventories ..................................................................................................................... 14
3.8.2
Receivables .................................................................................................................... 14
3.8.3
Securities and Other Short-term Financial Investments ................................................ 15
3.8.4
Liquid Assets, Cash-Flow ............................................................................................. 15
3.9
Prepaid Expenses and Accrued Income ................................................................................ 16
3.10
Shareholders' Equity .............................................................................................................. 16
3.11
Provisions .............................................................................................................................. 17
3.12
Liabilities ............................................................................................................................... 17
3.12.1
Long-term Liabilities ..................................................................................................... 17
3.12.2
Short-term Liabilities..................................................................................................... 17
3.12.3
Secured Liabilities ......................................................................................................... 17
3.13
4
Current Assets ....................................................................................................................... 14
Deferred Income and Accrued Liabilities ............................................................................. 18
Balance Sheet Total ....................................................................................................................... 18
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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5
6
Income Statement and Notes Thereto............................................................................................ 19
5.1
Modifications for the Previous Years .................................................................................... 19
5.2
Incomparable Data ................................................................................................................ 19
5.3
Layout of the Income Statement, New Items in the Income Statement ................................ 19
5.4
Net Sales Revenue ................................................................................................................. 20
5.5
Other Revenue ....................................................................................................................... 20
5.6
Material-type Expenses ......................................................................................................... 20
5.7
Personnel-type Expenses ....................................................................................................... 20
5.8
Depreciation .......................................................................................................................... 20
5.9
Other Expenses ...................................................................................................................... 20
5.10
Profit / Loss from Net Operating Activities .......................................................................... 20
5.11
Profit / Loss of Financial Transactions .................................................................................. 20
5.12
Profit / Loss on Ordinary Activities ...................................................................................... 20
5.13
Profit / Loss before Tax ......................................................................................................... 20
5.14
Corporate Tax ........................................................................................................................ 21
5.15
Loss Carry Forward ............................................................................................................... 21
5.16
Profit / Loss after Tax ............................................................................................................ 21
5.17
Dividend ................................................................................................................................ 21
5.18
Net Profit / Loss for the Year ................................................................................................ 21
Informative Data............................................................................................................................ 22
6.1
Financial Indicators ............................................................................................................... 22
6.2
Wages and Number of Employees ........................................................................................ 22
6.3
R&D Activity ........................................................................................................................ 23
6.4
Data on Subsidiaries .............................................................................................................. 23
6.5
Key Figures of Subsidiaries as at 31 December 2014 ........................................................... 23
6.6
Environmental Protection ...................................................................................................... 23
6.7
Further Information Guaranteeing a Reliable and True View, Off-balance Sheet Items ...... 24
7
Key Changes after the Balance Sheet Date of the Financial Statements ....................................... 24
8
Declaration .................................................................................................................................... 25
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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1
1.1
Brief Presentation of the Company
General Data
4iG Nyilvánosan Működő Részvénytársaság (previously
FreeSoft Nyrt; previously Fríz 68 Szolgáltató és Kereskedelmi
Rt.)
Legal form of the company
Nyilvánosan működő részvénytársaság (public limited company)
Registered office:
H-1037 Budapest, Montevideo u. 8.
Branches:
H-8000 Székesfehérvár, Berényi út 72-100.
Company registration number:
01-10-044993
Tax number:
12011069-2-41
Statistical code:
12011069-6201-114-01
Share capital:
HUF 1,880,000,000
Date founded:
8 January 1995
Date of transformation:
2 April 2004
Date of admission to the Stock Exchange 22 September 2004
Name of the Company:
The predecessor of 4iG Nyrt., FreeSoft Kft., a market player on the domestic IT market since 1990, merged
with Fríz 68 Rt. in 2003, whereby capital was raised by Friz using cash and by FreeSoft merging its total
goodwill, thus establishing a limited company with the name FreeSoft and keeping the previous activities
of FreeSoft Kft.
This was followed by a public share offering in 2004. Trading of the publicly offered FreeSoft shares
started on 22 September 2004 in category "B" of the Budapest Stock Exchange.
The IPO was followed by two private placements on 27 October 2007 and 14 April 2008. Listing of the
shares of the private placements on the Stock Exchange started on 17 March 2008 and 27 August 2008.
Since the decision of the General Meeting held on 24 April 2014 on renaming the Company, its name has
been 4iG Nyilvánosan Működő Részvénytársaság, with the short name being 4iG Nyrt.
At the time of compiling present Supplementary Notes, 4iG Nyrt. is a public limited company with 17
employees, with dominant direct shareholdings in 4 companies and with shareholding through its
subsidiary in one company.
1.2
Scope of Activities
The Company's scope of activity as per the Standardized Sectoral Classificatory System of Economic
Activities (TEÁOR) is as follows:
2620 '08
Manufacturing of computers, peripheral units
2823 '08
Manufacturing of business machines (except for: computers and peripheral units)
3320 '08
Installation of industrial machines
4651 '08
Wholesale of computers, computer peripheral equipment and software
4690'08
Non-specialised wholesale trade services
4741 '08
Retail sale of computers, peripheral units and software in specialised stores
4742 '08
Retail of telecommunication products
5811 '08
Book publishing
5812 '08
Publishing of directories and mailing lists
5821 '08
Publishing of computer games
5829 '08
Other software publishing
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1.3
6201 '08
Computer programming activities
6203 '08
Computer facilities management activities
6209 '08
Other information technology and computed service (main activity)
6311 '08
Data processing, web-hosting and related activities
6312 '08
Web portals
6420 '08
Services of holding companies
6920 '08
Accounting, bookkeeping and auditing services; tax consulting services
7021 '08
Public relations and communication services
7022 '08
Business and other management consulting services
7219 '08
Research and experimental development services in other natural sciences and
engineering
7490 '08
Other professional, scientific and technical activities n.e.c.
7830 '08
Other human resources provision services
8532 '08
Technical and vocational secondary education services
8551 '08
Sports and recreation education services
8552 '08
Cultural education services
8559 '08
Other education n.e.c.
8560 '08
Educational support services
9511 '08
Repair services of computers and peripheral equipment
Share Information
Type of shares:
registered ordinary share, dematerialised
Nominal value of shares:
1,000 HUF/unit
Number of shares issued:
1,880,000 units
ISIN code of the shares:
HU 0000071030
Share series:
“A”
Serial number of shares:
0000001 – 1880000
Share price (31 Dec 2014):
2,010 HUF/unit
Shares are listed in the “Standard” category of the Budapest Stock Exchange.
1.4
1.4.1
Executives, Controlled Undertakings
Senior Executives as of 31 December 2014
Board of Directors:
Dr. Felső Gábor Chairman of the Board of Directors
Hegedűs Judit Member of the Board of Directors
Fehér István Member of the Board of Directors
Dr. Polyák József Member of the Board of Directors
Tóth Béla Zsolt Member of the Board of Directors
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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Supervisory Board
Jászberényi Tamás Chairman of the SB
Dr. Andriskáné Ernöházai Ildikó Member of the SB
Dr. Kishegyi Júlia Member of the SB
Dr. Pongor Dániel Gábor Member of the SB
Rátkainé Fehér Ágnes Member of the SB
Audit Committee
Jászberényi Tamás Chairman of the AC
Dr. Kishegyi Júlia Member of the AC
Dr. Pongor Dániel Gábor Member of the AC
Managing Director, Chief Executive Officer
Somlyai Gábor
In the reporting year members of the Company's Board of Directors, Supervisory Board and Audit
Committee received in total HUF 9,499,000 as remuneration for performing their duties, however, no loans
were disbursed for them.
1.4.2
Remuneration and Authorisation of the Board Members to Represent the Company
From the Board of Directors, Dr. Felső Gábor is authorised to represent the Company alone, while the other
members of the Board of Directors must act jointly. The Board of Directors elected Dr. Felső Gábor as
Chairman. Signing of the Managing Director on behalf of the Company shall be performed jointly with
another member of the Board of Directors.
The General Meeting accepting the proposal of the Remuneration Committee in its resolution No
37./2014(10.27) decided on the fact that each member of the Board of Directors shall be entitled to a
remuneration of HUF 175,000 per month, while the Chairperson of the Board of Directors shall be entitled
to a remuneration of HUF 200,000 per month.
1.4.3
Remuneration of the Members of the Supervisory Board
The General Meeting accepting the proposal of the Remuneration Committee in its resolution No
42./2014(10.27) decided on the fact that each member of the Supervisory Board shall be entitled to a
remuneration of HUF 155,000 per month, while the Chairperson of the Supervisory Board shall be entitled
to a remuneration of HUF 175,000 per month.
1.4.4
Remuneration of the Members of the Audit Committee
Members of the Audit Committee shall not be remunerated for the tasks they perform in the Audit
Committee.
1.4.5
Authorized Signatories of the Financial Statements
Authorized signatories of the Financial Statements are the Chairman of the Board of Directors individually
or two members of the Board of Directors or the Managing Director jointly.
1.4.6
Data on Controlled Business Associations as at the Balance Sheet Date
Subsidiaries in Hungary
Axis Rendszerház Kft.
BankSoft Kft.
FreeSoft IBA Kft.
HUMANsoft Kft.
Mensor3D Kft. (Subsidiary of HUMANsoft:)
Address
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
H-6782 Mórahalom, Röszkei út 43.
Shareholding
Company registration number
(%)
100.00%
01-09-199169
100.00%
01-09-061864
100.00%
01-09-564529
78.24%
01-09-062054
100.00%
06-09-021252
4iG Nyrt. and its affiliated, controlled business associations, due to the obligation of consolidation qualify
as large corporations.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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1.4.7
1.4.8
Consolidated Financial Statements of the Company Group
The Consolidated Financial Statements of the Company Group are prepared by the parent company, 4iG
Nyrt., in accordance with IAS-IFRS international standards. The Consolidated Financial Statements are
publicly available. They are available at www.4ig.hu; at www.bet.hu and at www.kozzetetelek.hu websites,
as well as at 4iG Nyrt.'s office at H-1037 Budapest, Montevideo u. 8.
Ownership Structure as at 31 December 2014
Shareholders as at 31 Dec 2014
Number of Shares
Shareholding %
Held
Tief Terra Építőiprai és Szolgáltató Kft.
200,000
10.64%
Dr. M óricz Gábor
200,000
10.64%
KAPTÁR Befektetési Zrt.
176,700
9.40%
Fehér István
139,667
7.43%
Vaspál Vilmos
130,350
6.93%
Vincze Edit
125,000
6.65%
Free float
908,283
48.31%
1,880,000
100.00%
Total number of shares
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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2
2.1
Application of the Accounting Policy
Method of Record Keeping
The books of the Company are recorded in Hungarian language, in Hungarian forint, according to the
Hungarian principles and rules of double-entry bookkeeping. The Company's accounting policy is based on
the Hungarian Accounting Standards (HAS).
Its entries are recorded in the Microsoft Axapta program.
2.2
Form and Type of the Financial Statements
4iG Nyrt. prepares a type "A" report, and compiles its income statement using the total cost method.
2.3
Fiscal Year, Reporting Date
The fiscal year is identical to the calendar year; present Financial Statements include economic
transactions of the period between 1 January 2014 and 31 December 2014, with a balance sheet date of 31
December 2014.
2.4
Date of Compilation of the Balance Sheet
The Financial Statements include the impacts of economic events, circumstances that were known until the
date of compilation of the balance sheet, relating to the reporting year or the preceding years. Chosen date
of compilation of the balance sheet: the 3rd day of March of the year following the reporting year.
2.5
Interpretation of Errors with Material Amounts
The impact of errors revealed in the fiscal year, relating to one fiscal year shall be regarded as being of
material amount if the combined amount of the absolute values of changes in the shareholders' equity
exceeds 2% of the original balance sheet total in the financial statements prepared for the fiscal year under
review.
Where this is the case, the impact of errors revealed shall be presented in the financial statements prepared
for the reporting year not as part of figures of the reporting year, but separately as modifications for the
previous years.
2.6
Interpretation of Material Errors
Errors revealed shall qualify as errors substantially influencing the true and fair view, supposing the
shareholders' equity presented in the balance sheet of the financial year preceding the revealing year
changes with at least 20% as a result of their aggregate and cumulative impact.
2.7
Interpretation of "Differences of Material Amounts"
In the absence of indications to the contrary in other parts of the accounting policy, amounts exceeding
HUF 500,000 shall qualify as material amounts with regard to each item.
2.8
"Interpretation of Material Overall Impact"
In the absence of indications to the contrary in other parts of the accounting policy, non-material
differences of individual items shall also be taken into account, supposing that as a result of the overall
impact of differences the value of a balance sheet or income statement row changes with more than HUF 1
million.
2.9
Accounting for Depreciation
Method of Depreciation:
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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In general, depreciation to be charged annually is accounted for as a ratio of the asset's historical cost (gross
value), taking into account the expected use of the individual asset and its consequent useful life, physical
wear and tear and obsolescence, as well as other circumstances and the planned residual value.
Depreciation is accounted for using the pro rata temporis (straight line) method. 4iG Nyrt. does not account
for amortisation of goodwill.
Depreciation of small-value tangible assets:
The historical cost of Rights and titles, Intellectual property, Tangible assets with individual historical costs
not exceeding HUF 100,000 shall be accounted for as depreciation/amortisation in a single amount upon
first use. Where this is the case depreciation shall not be scheduled.
Non-material residual value:
The residual value may be recorded at a zero amount upon scheduling depreciation if the value of the asset
expected to be realised at the end of its useful life would probably not exceed the amount of depreciation
per year.
Accounting for unscheduled depreciation:
For the purpose of accounting for unscheduled depreciation, the book value is considered to be
significantly exceeding the market value if in case of the individual items the difference exceeds HUF
500,000.
Impact of depreciation changes:
No such changes happened in the course of the 2014 fiscal year.
2.10 Accounting for Impairment Loss
Impairment loss is accounted for if in case of the individual items the loss-type difference is permanent and
material compared to the book value.
2.11 Reversals
Reversal of unscheduled depreciation and impairment losses recorded are in line with the general rules.
2.12 Value Adjustments
4iG uses general rules when accounting for value adjustments.
2.13 Capitalization of Experimental Development
4iG Nyrt. does not intend to make use of the possibility to capitalize experimental development costs, and
accounts for them in each case among costs of the current period.
2.14 Valuation of Purchased Inventory
Purchased Inventory is recorded in the balance sheet at actual historical cost.
2.15 Provisioning
In 2014 4iG Nyrt. did not set aside provisions for guarantee- and other obligations, expected future costs.
Otherwise the generally accepted provisions are used for setting aside provisions.
2.16 Valuation of Items not Highlighted
Balance sheet items not highlighted above are valued in accordance with general accounting rules; there
were no changes in valuation thereof apart from changes in regulations.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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2.17 Impact of Other Changes in the Accounting Policy
As of 1 January 2014, 4iG Nyrt. switched from the Oracle accounting program to the Microsoft Axapta
software. There were no significant changes in other essential elements of the accounting policy apart from
changes in regulations; from that date each member company of the 4iG Group switched to the integrated
chart of accounts.
2.18 Recording and Recognising Material Stock
The Company does not recognise its material stocks in value in the course of general ledger bookkeeping,
purchases are immediately accounted for as costs during the year.
2.19 Rules for Stocktaking
Stocktaking of assets and liabilities is carried out according to the general rules.
2.20 Rules for Cash Handling
Cash is handled according to rules stipulated in the accounting policy as well as guidelines on the cash desk
and cash handling.
2.21 Deviation from Provisions of the Act
Financial Statements were compiled in accordance with the provisions of the Act on Accounting, no
circumstances have emerged which would necessitate deviation from the provisions of the Act.
2.22 Information Related to Specific Activities
4iG Nyrt. is not subject to disclosing information by other legislation with regard to additional, special
activity based on its activities.
2.23 Valuation of Amounts in Foreign Currencies
The Company uses the exchange rates of CIB Bank Zrt. for calculating its foreign exchange items.
2.24 Calculation of Corporate Tax
4iG Nyrt. applies provisions of Act LXXXI of 1996 on Corporate Tax and Dividend Tax when calculating
corporate tax. In the 2014 fiscal year corporate tax was calculated pursuant to the provisions on minimum
income.
2.25 Data of the Person Responsible for Compiling the Balance Sheet:
Piros Ferenc (H-2097 Pilisborosjenő, Tulipán köz 1.; registration number: 145011)
2.26 Auditor
Auditor of 4iG Nyrt.:
MANTAX Könyvvizsgáló és Tanácsadó Korlátolt Felelősségű Társaság
HU-1034 Budapest, San Marco u 6-8. A. ép. 1. em. 1.
Chamber membership No: 000870
Data of the person personally responsible for the audit:
Czene Győző Chamber membership number: 000140
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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3
Main Lines in the 2014 Balance Sheet of 4iG Nyrt. and Supplementary Notes
Thereto
31 Dec 2013
31 Dec 2014
Fixed Assets
INTANGIBLE ASSETS
TANGIBLE ASSETS
FINANCIAL INVESTMENTS
Current Assets
INVENTORIES
RECEIVABLES
SECURITIES
LIQUID ASSETS
Prepaid Expenses and Accrued Income
2,288,946
1,124,426
195,320
969,200
1,505,894
726,639
525,389
168,939
84,927
231
2,857,446
1,733,937
154,309
969,200
701,987
113,222
379,587
143,989
65,189
-
Change
as a %
25%
54%
-21%
0%
-53%
-84%
-28%
-15%
-23%
-100%
Total Assets
3,795,071
3,559,433
-6%
31 Dec 2013
31 Dec 2014
3,386,683
1,880,000
3,203,901
1,880,000
1,074,500
296,824
1,541
5,818
142,317
330,317
266,071
1,074,500
242,642
6,759
191,682
191,682
163,850
3,795,071
3,559,433
Description
A.
I.
II.
III.
B.
I.
II.
III.
IV.
C.
Description
D. Shareholders' Equity
I. SUBSCRIBED CAPITAL
of which: face value of own shares purchased
II. SUBSCRIBED CAPITAL UNPAID (-)
III. CAPITAL RESERVE
IV. RETAINED EARNINGS
V. NON-DISTRIBUTABLE RESERVE
VI. REVALUATION RESERVE
VII. NET PROFIT / LOSS FOR THE YEAR
E. Provisions
F. Liabilities
I. SUBORDINATED LIABILITIES
II. LONG-TERM LIABILITIES
III. SHORT-TERM LIABILITIES
G. Deferred income and accrued liabilities
4
TOTAL EQUITY AND LIABILITIES
Change
as a %
0%
0%
4.1
Modifications for the Previous Years
There are no modifications for the previous years in the 2014 Balance Sheet.
4.2
Comparability
2014 figures of the Company's Balance Sheet are comparable with figures of 2013, since
operations of both years cover a full year, there were no major changes in the system of
compiling the balance sheet.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
0%
2%
N.A.
N.A.
16%
-42%
-42%
-38%
-6%
12 of 25
4.3
Layout of the Balance Sheet
When preparing the financial statements the Company did not make use of the option of choosing
the simplified form, thus there is no point in further breaking down the balance sheet items in the
reporting period. Where a more detailed breakdown of the balance sheet rows is justified, details
thereon are provided in the notes.
4.4
New Items in the Balance Sheet
In the financial statements of the reporting year there are no new balance sheet items apart from
the layout specified.
4.5
Assets in Management of the Balance Sheet
In the balance sheet there are no assets that constitute part of the assets of the Treasury taken over
for management.
4.6
Impairment Loss
The Company's Balance Sheet does not include impairment loss recorded in relation to invested
financial assets, inventories, securities in the reporting year; no readjustment was recorded in
relation thereto.
4.7
Fixed Assets
The value of the Company's fixed assets as at 31 December 2014 was HUF 2,857,446,000.
4.7.1
Intangible Assets
Intangible Assets
GROSS VALUE
Balance as at 1 Jan 2013
Increase
Decrease
Balance as at 31 Dec 2014
Accumulated Amortisation
Balance as at 1 Jan 2013
Increase
Decrease
Balance as at 31 Dec 2014
Rights and
Titles
Intellectual
Property
Intellectual Property
GOP 1.1.1
Goodwill
Total
-
21,987
619,901
37,496
1,086,347
-
641,888
37,496
1,086,347
-
14,274
4,925
7,130
5,465
-
-
19,199
12,595
-
21,404
10,390
31,794
622,689
24,901
1,086,347
1,733,937
Net value
1,145,830
619,901
1,765,731
The HUF 619,901,000 gross value increase in the stock of intangible assets realised in the reporting year
was mainly the result of the Contentum software (HUF 545,901,000) and Oracle HR module (HUF
71,500,000) reclassified as intangible assets from inventories. The actual software purchase amounted to
HUF 2,500,000.
The other major element of intangible assets is goodwill, valuation of which was made at the end of the
year; its revaluation was not required.
Value of goodwill
Goodwill of 4iG Nyrt.
Goodwill of BankSoft
Goodwill of HUMANsoft
Goodwill of Axis Rendszerház Kft.
Total Goodwill
31 Dec 2014
722,686
272,120
73,394
31,006
1,099,206
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
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4.7.2
Tangible Assets
Tangible Assets
Machinery and
Machinery and
Other equipment,
equipment GOP
equipment
fittings
1.1.1
GROSS VALUE
Balance as at 31 Dec 2013
Increase
Decrease
Balance as at 31 Dec 2014
23,825
1,768
745
24,848
239,000
Accumulated Depreciation
Balance as at 31 Dec 2013
Increase
Decrease
Balance as at 31 Dec 2014
22,342
1,118
348
23,112
52,940
34,751
1,736
Net value
Total
2,320
-
288,934
2,839
7,954
283,819
87,691
18,332
2,067
1,692
18,707
-
93,614
37,936
2,040
129,510
151,309
1,264
-
154,309
239,000
23,789
1,071
4,889
19,971
Construction in
progress
2,320
In the course of 2014, 4iG Nyrt. continued the replacement of obsolete assets, new purchases were made in
the value of HUF 2,839,000. Redundant assets were sold.
With regard to intangible assets and tangible assets no unscheduled depreciation/amortisation was
accounted for in the reporting year.
There was no ex-post modification of depreciation in the period under review.
4iG Nyrt. does not account for amortisation of goodwill.
4.7.3
Invested Financial Assets
This row comprises investments held in subsidiaries of 4iG Nyrt.
Long-term investments in affiliated
enterprises
Shareholding (% )
HUMANsoft Kft.
671,480
78.24%
Axis Rendszerház Kft.
209,914
100%
BankSoft Kft.
51,880
100%
FreeSoft IBA Kft.
35,926
100%
Total
4.8
Value
969,200
Current Assets
The closing value of the stock of current asset as at 31 December 2014 was HUF 700,673,000. The
Company accounted for no impairment loss for its current assets in this year, and there was no need for
revaluation.
4.8.1
Inventories
In the course of the year two software developments were successfully completed in the value of HUF
109,238,000, entering them as finished goods in the accounting records.
Out of finished goods the Company classified two self-developed software into intellectual property in the
value of HUF 617,401,000.
4.8.2
Receivables
Out of the HUF 379,587,000 value of receivables HUF 204,317,000 was due from customers, and HUF
105,684,000 was due from affiliated undertakings. The amount of receivables due from affiliated
undertakings includes dividends receivable of HUF 89,672,000 approved from 2014 profit after tax.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
14 of 25
Receivables and liabilities of affiliated undertakings against one another as at 31 December 2014 were as
follows:
Receivables-Liabilities Table of 4iG Nyrt. and its Subsidiaries (31 Dec 2014) in HUF'000
Receivables
4iG
4iG
Humansoft
Axis Consulting
BankSoft
Mensor3D
FreeSoft- IBA
0
0
L i a b i l i t i e s
Axis Consulting
8,007
0
23
8,890
0
0
0
6,623
0
0
0
Humansoft
90,963
2,540
40,844
0
0
Banksoft
6,190
Mensor3D
0
0
0
0
0
0
Freesoft- IBA
524
9,000
0
0
0
0
0
0
0
0
0
Other receivables amounting to HUF 69,586,000 are detailed in the table below:
Other Receivables as at 31 Dec 2014
Advances for services
Good performance guarantee
GOP 111 and KM R grants receivable
Other receivables from the central government
Amount (HUF'000)
7,846
790
51,231
126
VAT of continuous services
4,119
Local business tax advance, recoverable
4,591
Innovation tax
440
Corporate tax advance, recoverable
443
Total Other receivables:
69,586
4.8.3
Securities and Other Short-term Financial Investments
Out of the HUF 143,989,000 stock of securities, the amount of HUF 143,500,000 represents OTC shares,
and the amount of HUF 489,000 is discount treasury bills.
4.8.4
Liquid Assets, Cash-Flow
4iG Nyrt.’s 2014 closing stock of cash amounted to HUF 65,189,000, of which HUF 854,000 was cash on
hand and HUF 64,335,000 cash on bank account.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
15 of 25
CAS H-FLOW S TATEMENT
figures in HUF'000
Item
no.
a
I.
1
2
3
4
5
6
7
8
9
10
11
12
13
II.
14
15
16
III.
17
18
19
20
21
22
23
24
25
26
27
IV.
4.9
Description
b
Cash-Flow from Ordinary Activities (Operating cash-flow, rows 1-13)
Profit before Tax +Depreciation/Amortisation accounted for +
Value adjustment accounted for and reversed +Difference of provisioning and reversing provisions +Profit / Loss from fixed assets sold +Change in trade payables +Change in other short term liabilities+Change in accruals and deferred income +Change in trade receivables+Change in current assets w/o customers and liquid assets +Change in prepayments and accrued income +Tax paid (on profit) Dividend and participation paid Cash-Flow from Investing Activities (Investment cash-flow, rows 14-16)
Purchase of fixed assets Sale of fixed assets +
Dividend and participation received +
Cash-Flow from Financing Activities (Financing cash-flow, rows 17-27)
Proceeds from the issue of shares and raising capital +
Proceeds from the issue of bonds, debt securities +
Borrowing +
Repayment, termination, redemption of long-term loans granted and of bank
deposits +
Non-repayable funds received +
Withdrawal of shares, capital (reduction of capital) Repayment of debt securities Redemption, repayment of loans and credits Long-term loans granted and bank deposits Funds transferred for good Change in liabilities against founders and other long term liabilities +Change in cash (rows ±I±II±III) +-
31 Dec 2013
31 Dec 2014
c
229,930
23,167
66,550
0
d
-107,527
-82,648
48,326
0
1,540
54,525
-56,910
196,546
146,379
-44,407
30,540
0
188,000
-89,436
200,087
0
110,651
-300,000
916
20,367
-159,001
-102,221
-114,548
281,316
231
265
0
87,789
5,339
3,456
89,672
0
300,000
-159,506
Change
e
N.A.
N.A.
-27%
N.A.
-41%
-63%
N.A.
N.A.
N.A.
N.A.
-99%
N.A.
-100%
N.A.
-97%
N.A.
-19%
N.A.
N.A.
-100%
-19,738
N.A.
Prepaid Expenses and Accrued Income
The Company had no Prepaid Expenses and Accrued Income at the end of the year.
4.10 Shareholders' Equity
The changes in Shareholders' Equity are presented in the table below.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
16 of 25
S tatement of Changes in S hareholders' Equity for the year ended on 31 December 2014
Description
Balance as at 31 Dec 2012
S ubscribed
capital
1,880,000
Capital
Reserve
Nondistributable
Reserve
1,074,500
Retained
Earnings
146,465
Transfer of the Net profit / loss for the
previous period
Acquired participation of external
shareholders
Revaluation
Reserve
146,315
Total
Net Profit for
S hareholders'
the Year
Equity
0
4,044
4,044
3,251,324
-4,044
0
0
Issue of Shares
0
Reversal of Non-distributable Reserve
-146,465
146,465
0
Setting aside Non-distributable Reserve
0
Revaluation reserve of fair value
Retained earnings allocated for paying
dividend
Net Profit for the Year 2013
Balance as at 31 Dec 2013
Transfer of the Net profit / loss for the
previous period
Acquired participation of external
shareholders
Issue of Shares
1,880,000
1,074,500
0
296,824
1,541
1,541
-60,000
-60,000
-58,459
5,818
5,818
5,818
5,818
3,198,683
-5,818
0
0
0
Reversal of Non-distributable Reserve
0
Setting aside Non-distributable Reserve
0
Revaluation reserve of fair value
-1,541
Net Profit for the Year 2014
Balance as at 31 Dec 2014
1,880,000
1,074,500
0
302,642
-60,000
-1,541
6,759
6,759
6,759
3,203,901
4.11 Provisions
The Company set aside no provisions.
4.12 Liabilities
The closing amount of liabilities as at 31 December 2014 was HUF 191,682,000.
4.12.1 Long-term Liabilities
There were no long-term liabilities, liabilities maturing over five years outstanding in the period under
review.
4.12.2 Short-term Liabilities
The amount of Trade payables at the end of 2014 reached HUF 114,971,000.
Liabilities to affiliated undertakings amounted to HUF 43,384,000 of which an amount of HUF 40,843,000
represents a HUF 40 million credit and its interests received from BankSoft Kft., while the rest is Trade
payables.
The full amount of HUF 33,327,000 Other short-term liabilities is a tax debt due in January 2015, as
follows:
Other Liabilities as at 31 Dec 2014
Amount
Personal income tax liability
Finacial recording of VAT
Percentage health care tax
Late-payment interest
Contributions on wages
Total Other liabilities
4.12.3
3,835
16,534
50
8
12,900
33,327
Secured Liabilities
There were no liabilities secured with pledge or similar rights among liabilities presented in the
balance sheet for the reporting year.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
17 of 25
4.13 Deferred Income and Accrued Liabilities
The value of deferred income and accrued liabilities was HUF 163,850,000 of which HUF 7,705,000 is the
amount of costs affecting 2014 but invoiced in 2015. HUF 156,145,000 is deferred income, with HUF
139,839,000 government grant to be recorded in the following years and HUF 16,306,000 badwill of
FreeSoft-IBA Kft.
5
Balance Sheet Total
The Balance Sheet of 4iG Nyrt. as at 31 December 2014, shows a balance sheet total of HUF
3,559,433,000, which is 6% lower than the balance sheet total of 2013.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
18 of 25
6
Income Statement and Notes Thereto
Description
1
2
I.
II.
III.
3
4
5
6
7
IV.
8
9
10
V.
VI.
VII.
A.
VIII.
IX.
B.
C.
X.
XI.
D.
E.
XII.
F.
22
23
G.
6.1
Net domestic sales revenue
Net export sales
Net sales revenue
Capitalized value of own performance
Other revenues
of which: reversal of impairment
Cost of raw materials
Value of services used
Value of other services
Cost of goods sold
Value of services sold (mediated)
Material type expenses (03+04+05+06+07)
Salaries and wages
Other personnel related costs
Wage contributions
Personnel expenses (10+11+12)
Depreciation
Other expenses
of which: impairment
PROFIT / LOSS FROM OPERATING ACTIVITIES
( I±II+III-IV-V-VI-VII)
Income from financial transactions
Expenses of financial transactions
PROFIT / LOSS ON FINANCIAL TRANSACTIONS
( VIII-IX)
PROFIT / LOSS ON ORDINARY ACTIVITIES ( ±A±B)
Extraordinary income
Extraordinary expenses
PROFIT / LOSS ON EXTRAORDINARY ACTIVITIES (
X-XI)
PROFIT / LOSS BEFORE TAX ( ±C±D)
Tax liability
PROFIT / LOSS AFTER TAX ( ±E-XII)
Retained earnings allocated for paying dividend, participations
Dividend, participations approved
NET PROFIT / LOSS FOR THE YEAR
( ±F+22-23)
figures in HUF ‘000
Change
31 Dec 2014
as a %
592,146
-55%
102,809
320%
694,955
-48%
N.A.
120,458
-11%
31 Dec 2013
1,310,467
24,505
1,334,972
7,792
135,679
6,558
199,206
7,157
44,290
821,430
1,078,641
164,033
7,782
48,783
220,598
66,550
14,030
-
4,197
122,679
5,839
5,694
462,125
600,534
185,149
2,001
51,647
238,797
48,326
10,813
-
-36%
-38%
-18%
-87%
-44%
-44%
13%
-74%
6%
8%
-27%
-23%
N.A.
83,057
94,892
4,811
N.A.
-25%
-72%
109,256
192,296
58,478
90,081
7,024
-
-18%
-96%
-100%
58,478
133,818
133,818
60,000
188,000
7,024
265
6,759
-
N.A.
-95%
N.A.
-95%
-100%
-100%
5,818
6,759
16%
83,040
126,622
17,366
-
Modifications for the Previous Years
There were no modifications for the preceding year.
6.2
Incomparable Data
Figures in the Income Statement of the Company are comparable.
6.3
Layout of the Income Statement, New Items in the Income Statement
In the financial statements of the reporting year the Income Statement includes no new items apart from the
layout specified.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
19 of 25
6.4
Net Sales Revenue
The Company realised Sales revenues of HUF 694,955,000 in 2014, representing a figure which is 48%
lower than that of 2013. Almost 15% of Sales revenue was from export, Germany, and 85% was from
domestic sales. Domestic sales revenue showed a 55% decrease, while Export sales revenue grew by a
significant amount of 320%.
6.5
Other Revenue
Out of the HUF 120,458,000 amount of Other revenue, HUF 105,743,000 was government grant
accounted for, HUF 9,133,000 was penalties received and compensation awarded, HUF 4,510,000 was
revenue from tangible asset sales, and HUF 1,072,000 was made up of minor items.
6.6
Material-type Expenses
The composition of Material-type Expenses is presented in the table below:
Description
Material costs
Value of services used
Value of other services
Cost of goods sold
Value of services sold (mediated)
Total Material-type expenses
2013
2014
6,558
199,206
7,157
44,290
821,430
1,078,641
4,197
122,679
5,839
5,694
462,125
600,534
Change as
%
-36.0%
-38.0%
-18.0%
-87.0%
-44.0%
-44.0%
Decreasing revenues necessitated cost-cuts. The Company achieved a total of 44% savings with regard to
Material-type expenses.
6.7
Personnel-type Expenses
The average number of employees in 2014 was 19 at the Company. Personnel-type expenses exceeded the
2013 figure by 8%.
6.8
Depreciation
In the course of 2014 the majority of IT assets were replaced, the long-delayed modernisation of the stock
of tangible assets was completed. In spite of this, depreciation decreased by 27% as compared to the
preceding year.
6.9
Other Expenses
The biggest items of the HUF 10,813,000 Other expenditure row are taxes accounted for in an amount of
HUF 4,211,000, the value of derecognisation of tangible assets sold in an amount of HUF 3,594,000, the
value of penalties and fines recorded in an amount of HUF 3,008,000.
6.10 Profit / Loss from Net Operating Activities
Basically, as a result of the decline of sales revenue and the costs of R&D developments, Net operating
result of the Company fell by HUF 166 million as compared to 2013, with its Net operating result being a
loss of HUF 83,057,000.
6.11 Profit / Loss on Financial Transactions
The overall profitability of the Company was due to the HUF 90,081,000 profit on financial transactions,
within that, dividends received from subsidiaries in an amount of HUF 89,672,000.
6.12 Profit / Loss on Ordinary Activities
Its total shows a profit of HUF 7,024,000.
6.13 Profit / Loss before Tax
Profit before tax equals to Profit on ordinary activities since there were no Extraordinary items.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
20 of 25
6.14 Corporate Tax
Corporate tax had to be calculated on the basis of minimum income.
Its calculation is as follows:
Total revenue
Items increasing the tax base
Items decreasing the tax base
Adjusted revenue
Tax base 2%
Calculated corporate tax
Tax advantage of software development
Corporate tax to be paid
HUF
HUF
HUF
HUF
HUF
HUF
HUF
HUF
910,305,000
0
-467,819,000
442,486,000
8,850,000
885,000
- 620,000
265,000
6.15 Loss Carry Forward
The Company has no losses that are enforceable and may be carried over.
6.16
Profit / Loss after Tax
Profit after tax of 4iG Nyrt. amounts to: HUF 6,759,000.
6.17 Dividend
The Company does not plan to pay dividends on the 2014 profit.
6.18 Net Profit / Loss for the Year
Net profit for the year reaches HUF 6,759,000 which shall increase retained earnings.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
21 of 25
7
7.1
Informative Data
Financial Indicators
Ratios on the financial, operational position of the Company are presented in the table below:
Description of the ratio
31 Dec 2013 31 Dec 2014
Liquidity ratios
Liquidity ratio
Quick ratio
Dynamic current ratio
Net working capital turnover
Net working capital
Debt ratio and Creditworthiness
Shareholders' equity to liabilities
Debt to shareholdeers' equity
Long-term liabilities to long-term capital employed
Long-term dynamic current ratio
Interest coverage ratio
Description of the ratio
Profitability ratios
Return on Assets (%)
Return on Sales (%)
Asset turnover
Accounts receivable turnover
Average accounts receivable collection period
(days)
Inventory turnover
Average days in inventory
Tangible asset recovery turnover
Personnel expenses to value added (%)
Ordinary share capital recovery (%)
Value added (HUF'000)
Market ratios
EPS of ordinary shares (HUF/unit)
Share price / earnings rate (P/E)
Share price / book value (%)
EPS
Diluted EPS
Stock market price as at 31 December 2014
(HUF/unit)
7.2
456%
236%
25%
0.9
909,737
366%
307%
-43%
0.6
346,455
84%
90%
10%
6%
0%
0%
0%
0%
980%
710%
31 Dec 2013 31 Dec 2014
3.54%
10.02%
0.35
8.19
18.00%
97.00%
0.19
4.73
44.56
77.23
1.81
202
13
47%
7.1%
469,252
1.65
221
4
105%
0.4%
227,136
71.2
31
128%
3.1
3.1
3.6
559
118%
3.6
3.6
2,183
2,010
Wages and Number of Employees
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
22 of 25
Salaries and
Wages (HUF'000)
Workforce group
Full-time employees
Remuneration of elected officers
Contractual relationship
Bonus payments
Reimbursement of commuting expenses
Sick-leave payable by the Company
Sickness benefit contribution
Entertainment
Total
7.3
Average
Headcount
(persons)
160
19
Other payments to
Personnel (HUF'000)
151,150
9,499
5,994
18,506
709
713
185
235
2,002
185,149
19
R&D Activity
The Company participated in two R&D developments in the reporting year. As a consortium leader in the
project of "Development of a complex system capable of classifying and cryopreservation of fish semen
and sorting the cryopreserved semen" (GOP-1.1.1-11-2012-0306), and as consortium member in the
project of "Development of a unique methodology for the ecological toxicology testing of environmental
samples in a fish model system" (KMR_12-1-2012-0221). An amount of HUF 207,912,000 was recorded
for the two projects in the course of 2014. The amount of income accounted for in the reporting period
from government grants reached HUF 105,742,000.
7.4
Data on Subsidiaries
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
H-1037 Budapest, Montevideo u. 8.
78.24%
100.00%
100.00%
100.00%
Company registration
number
01-09-062054
01-09-199169
01-09-061864
01-09-564529
H-6782 Mórahalom, Röszkei út 43.
100.00%
06-09-021252
Name
HUMANsoft Kft.
Axis Rendszerház Kft.
BankSoft Kft.
FreeSoft IBA Kft.
Subsidiary of HUMANsoft:
Mensor3D Kft.
7.5
Address
Key Figures of Subsidiaries as at 31 December 2014
Subsidiary
Subscribed Capital
Shareholders' Equity
Profit after Tax
Net result fot the year
HUMANsoft Kft.
34,000
782,889
342,734
102,820
Axis Rendszerház Kft.
30,600
185,149
10,973
3,292
9,000
54,753
8,583
2,575
297,330
189,660
-77
-77
3,000
5,526
13,026
4,026
BankSoft Kft.
FreeSoft IBA Kft.
Mensor3D Kft.
7.6
Shareholding (%)
Environmental Protection
The Company concludes contracts for the handling and destruction of hazardous waste with specialist
companies.
7.7
Other Services Provided by the Auditor
The auditor of the Company provided no other services apart from the audit.
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
23 of 25
7.8
Further Information Guaranteeing a Reliable and True View, Off-balance Sheet Items
The entity has no contingent or firm (future) liabilities resulting from transactions that do not appear in the
balance sheet and are not closed by the balance sheet date.
4iG Nyrt. sued the Hungarian National Police (ORFK) for receiving the consideration of a several-yeardevelopment work of HUF 84,900,000 + VAT + interests, in proceeding No 31.G.42218/2009. The 4
October 2013 ruling No 31.G.40.845/2012/20 of first instance of the Economic Section of the Metropolitan
Court of Budapest ordered ORFK to pay a base amount of HUF 106,125,000 and its interests as well as
HUF 4,301,000 legal costs (in total HUF 186,336,000 as at 31 December 2014). The judgment is not final;
the defendant appealed against the judgment, thus these amounts are not presented in the 2014 figures of
4iG Nyrt .
As of the balance sheet date there were no financial liabilities not appearing in the balance sheet which are
considered to be of material importance in terms of evaluating the financial position.
Other material items that do not appear in the balance sheet do not need to be presented.
8
Key Changes after the Balance Sheet Date of the Financial Statements
On 28 January 2015 Fehér István, member of the Company's Board of Directors, under an OTC contract
purchased in total 45,833 units of ordinary shares with a par value of HUF 1,000 each, issued by the
Company. As a result of the purchase the number of ordinary shares of Fehér István, member of the
Company's Board of Directors increased to 185,500 units (shareholding of 9.87%).
On 28 January 2015 Tief Terra Kft. sold 33,333 units of ordinary shares with a par value of HUF 1,000 each,
issued by the Company, to Fehér István, member of the Company's Board of Directors under an OTC
contract. As a result of the sales, the proportion of voting rights of Tief Terra Kft. in the Company decreased
from 10.64% (200,000 units of ordinary shares, 10.64% shareholding) to 8.87% (166,667 units of ordinary
shares, 8.87% shareholding).
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
24 of 25
9
Declaration
I take full responsibility for the numerical figures and the true content of analyses and conclusions included
in present 2014 "Annual Financial Statements".
The "Annual Financial Statements" contain figures and statements that are true, not withholding any facts
considered to be of material importance in terms of evaluating the Company’s position.
Budapest, 12 March 2015
Supplementary Notes to the 2014 Annual Financial Statements of 4iG Nyrt.
25 of 25