FORTEC
GROUP

Financial Report 2024

Foreword ..... D4
Group management report ..... D7
Consolidated balance sheet ..... D4
Consolidated statement of comprehensive income ..... D6
Consolidated statement of changes in equity ..... D7
Consolidated cash flow statement ..... D8
Notes to the consolidated financial statements ..... D9
Responsibility statement ..... B6
Auditors' report ..... B6

Foreword

Dear Ladies and Gentlemen, Shareholders and Employees,
The FORTEC Group was able to finish the 2023/2024 financial year positively once again despite the continued challenging macroeconomic conditions. Even though various external factors have had a negative effect on the business development of our FORTEC Group, we were still able to achieve a turnover of EUR 94.5 million thanks to the outstanding commitment of our entire team. This is around $11 \%$ below the record turnover of the previous year but still represents a solid result considering the challenges. At this point, we would like to thank all employees who have worked tirelessly to enable us to remain successful even in difficult times.

The group EBIT, a highly important indicator, was around $33 \%$ below the previous year's level at EUR 7.1 million. In the last group management report in May 2024, we already adjusted the forecast turnover range from EUR 106 million to EUR 116 million to between EUR 99 million and EUR 100 million. We achieved this arm in the end.

The external conditions had a significant impact on the success from the previous financial year. Ongoing inflation, higher interest rates and unsolved geopolitical uncertainties including the war in Ukraine and the tension between the USA and China had a lasting effect on our business development. Due to these factors, the EBIT margin reduced from $10.1 \%$ to $7.5 \%$ in the reporting year. The consolidated net profit decreased accordingly by around $30 \%$ to EUR 5.3 million (previous year: EUR 7.5 million). Consequently, the earnings per share reduced from EUR 2.32 in the previous year to EUR 1.63 in the reporting year.

Despite the lower result, the Management Board will propose an unchanged dividend distribution of EUR 0.85 per share at the upcoming Annual General Meeting (previous year: EUR 0.89 per share). We are therefore continuing our dividend policy that is aligned with continuity from the previous year and are proud to once again enable you, our esteemed shareholders, to be part of our company's continued success. The dividend distribution corresponds to a return of $4.4 \%$ based on the rate (EUR 19.50) on 30 June 2024.

The order book as of 30 June 2024 has normalised to a level of EUR 53.4 million (previous year: EUR 83.0 million).
Let us take a look at our segments: The data visualisation segment contributed EUR 56.7 million to the group turnover (previous year: EUR 68.0 million), while the power supply segment accounted for EUR 37.8 million (previous year: EUR 37.9 million) and was almost at the previous year's level. We are confident that the distribution, development and production \& solutions areas will achieve long-term growth. As a system supplier of industrial, high-tech products, we are increasingly establishing ourselves as a strategic partner of our customers. We provided added value through intelligent linking of power supplies, display technology and embedded computer technology.

For 40 years now, FORTEC has consistently generated excellent returns with its business model, which has been tested in multiple cycles. Thanks to our conservative financing policy, we have a very robust balance sheet structure with an equity ratio of $73.3 \%$ (previous year: $72.1 \%$ ).

Considering the ongoing global economic and macroeconomic uncertainties and further increases to general costs, we are expecting moderate turnover growth following the business development of the 2023/2024 year. Results developments will mainly be shaped by our planned investment package. We are therefore predicting a slight increase in group turnover in a range of EUR 95 million to EUR 110 million and a group EBIT between EUR 6 million and EUR 8 million in the 2024/2025 financial year.

Dear shareholders, the FORTEC Elektronik AG Management Board thanks you for your continued trust. Thanks to your support, we are able to develop the future of our company sustainably and develop the long-term potential of our business. We are looking forward to continuing down this road with you successfully.

Sandra Maile

Chair of the Management Board

Sandra Maile
(Chair of the Management Board)

Ulrich Ermel
(Management Board)

Financial Report 2024

Contents of the group management report

Fundamentals of the Group ..... 08
Control system ..... 09
Research and development ..... 09
Economic report ..... 09
Business development ..... 10
Profit situation ..... 11
Asset situation ..... 12
Financial and liquidity position ..... 13
Forecast report ..... 14
Risk and opportunity report ..... 15
Further information in accordance with section 315a of the German Commercial Code ..... 21

Over the past years, FORTEC as a group ('FORTEC Group') has gradually transformed itself from a product supplier to a system supplier of industrial high-tech products, and is now part of the international added value chain. Acting as a link between various production plants of internationally active suppliers, in particular from the Far East, as well as European and American customers, the FORTEC Group occupies an attractive growth niche and is constantly expanding its position as a supplier of industrial solutions, for example through its own software and hardware developments, as well as the expansion of its own production services.

Target customers are companies with long-term positioning, primarily in the high-growth areas of industrial automation, information technology, medical technology and automotive engineering. Attractive niche markets such as railway \& transportation and defence are also focal areas. The FORTEC Group's success is founded on a large number of long-standing customer relationships. The aim of our sales activities is to build strategic partnerships with top customers who are leaders in their own market sectors, as well as with customers with smaller and medium-sized order volumes. Due to ever-greater complexity, orders are increasingly commonly long-term projects and the companies of the FORTEC Group - as suppliers - are becoming long-term, strategic partners to their customers.

For 40 years now, the FORTEC Group has consistently generated excellent returns with its business model, which has been tested in multiple cycles. With increased activity in the design of complete (sub)systems based on in-house technologies, the group is gaining in autonomy and becoming increasingly competitive in a global environment.

In Germany, the group has several locations for local customer support through FORTEC Power GmbH ('FORTEC Power') and FORTEC Integrated GmbH ('FORTEC Integrated'). The FORTEC Group is represented by a sales office in Austria and by its whollyowned sales subsidiary FORTEC Switzerland AG ('FORTEC CH') in Switzerland. Furthermore, FORTEC is represented in the Benelux states with a shareholding in the Dutch trading company Advantec. Electronics and through the foreign subsidiaries FORTEC Technology UK Ltd. ('FORTEC UK') in the United Kingdom,

FORTEC US Corp. ('FORTEC US') in the USA and FORTEC Czech Republic s.r.o. ('FORTEC CZ'), a subsidiary of AUTRONIC Steuerund Regeltechnik GmbH ('AUTRONIC'), in the Czech Republic. Since 2024, the group has been supported by the newly-founded development location in Cairo, Egypt. FORTEC Electronics Designs \& Solutions Egypt SMILE ('FORTEC EGY').
The group occupies two attractive sectors of the high-quality electronics market. The FORTEC Group is one of the market leaders in German-speaking countries in the fields of data visualisation (display and embedded computer technology) and industrial power supplies. Furthermore, the FORTEC Group has established good positioning on the Anglo-American market with its subsidiaries.
By linking the product areas of Display Technology and Embedded Computer Technology to form a data visualisation system, the FORTEC Group also offers complex solutions for an innovative market. The group's fields of competence range from the delivery of system-tested standard kits, to support services in the area of hardware and software for the sale of standard devices (for example, for professional display systems for industry or digital signage as well as complete monitors), right up to customerspecific developments and product solutions. The FORTEC Group's portfolio also includes TFT controller and drive solutions developed in-house, as well as the latest generation of optical bonding technology.

In the product area of power supplies, the FORTEC Group covers the complete product range of power supplies and DC/DC converters, from standard products from the Far East, through series devices modified in Germany, right to customer-specific developments for niche markets realised by the subsidiary company AUTRONIC.

Due to the high proportion of distribution in this successful segment, stock availability of the right products is the basis for success here.

As a group listed on the stock exchange, the FORTEC Group has well-established control systems that enable it to maintain a constant overview of important group activities. The Management Board receives monthly reports on the control and monitoring of the companies. The Supervisory Board in turn receives quarterly financial reports and monthly information on certain key figures. Furthermore, the board members maintain regular contact with the companies at local level.

Group management report: 3. Research and development

The FORTEC Group is mainly active as a system provider in the data visualisation segment to provide its customers with added value and therefore differentiate them from the competition thanks to innovative applications and procedures. The group is therefore investing continuously and sustainable in its own development competence and maintains a development department with 26 (previous year. 24) employees and invests both in traditional product development (e.g. video converters and network loT products) and in the further development of

In order to fully utilise synergies, reporting is partially carried out on an inter-company basis according to segments. Such aspects as incoming orders, the contribution margin $\mathrm{ICM} 1=$ gross margin), turnover and EBIT serve as relevant key performance indicators. The group considers turnover and EBIT to be the most important financial performance indicators.

Group management report: 4. Economic report

Macroeconomic and sector-specific framework conditions Various events affected the global economic conditions in the last financial year.

Inflation and its consequences remained a key topic in many countries.
The restrictive monetary policies in the USA and the euro zone resulted in higher base rates, which made the financing environment more challenging. While the economy in general in the USA and China showed a certain dynamism, the situation in Europe and other parts of the world remained challenging. ${ }^{1}$ Geopolitical tensions, particularly the war in Ukraine, as well as trade conflicts and supply chain problems remained significant factors for uncertainty. ${ }^{1}$ Overall, the global gross domestic product (GDP) will expand by $4.5 \%$ in 2024 following an increase of $4.1 \%$ in the previous year according to statistics. ${ }^{2}$

In 2024, the global gross domestic product (GDP) will expand by $4.5 \%$ in 2024 following an increase of $4.1 \%$ in the previous year according to statistics. ${ }^{2}$

The economy in the euro zone was stimulated significantly by reduced inflation in the first quarter of 2024. After two negative GDP developments in the last two quarters of 2023, the IFO institute is expecting a continued positive trend in the economic development within the euro zone. ${ }^{2}$

In the last two quarters of 2023, the German economy also did not achieve the recovery that was hoped for and remained in recession. As a result of high inflation, demand weakened noticeably. The corresponding GDP developments turned out to be only slightly positive at $+0.1 \%$ in the third quarter of 2023, -0.5\% in the fourth quarter of 2023 and a slight increase of $0.2 \%$ in the first quarter of 2024. ${ }^{5}$ The seasonally-adjusted S\&P Global/BME Germany Manufacturing PMI increased from 38.8 points in July 2023 to 43.3 points in June 2024 and is therefore much closer to the neutral value of 50 . This increase shows that the economic conditions in Germany are stabilising gradually. The PMI is an important indicator for economic activity in the

Group management report: 5. Business development

The FORTEC Group's business development in the 2023/2024 financial year was shaped by the continuing inflationary effects on the entire economy and the ongoing regional and global political uncertainties.

In the last financial year, the Group achieved a turnover of around EUR 94.5 million and is therefore around 11\% below the record result from the previous year. The group EBIT of EUR 7.1 million (previous year: 10.7 million) was around $34 \%$ below the previous year's value, meaning that the forecast from the previous year (previous year: group turnover in the range of EUR 106.0 million to EUR 116.0 million and a group EBIT of between EUR 9.5 million and EUR 11.0 million) was not achievable. The causes for this were the missing economy of scale effects compared to the previous year and weak demand, particularly in the USA and Germany. A declining turnover volume in the data visualisation area ( $+18 \%$ ) was therefore recorded while other operating costs and personnel costs were maintained for further growth. The missing degression effect was not even able to be compensated
machining industry and therefore indicates a reduction in the downturn and a potentially impending recovery. ${ }^{5}$

According to the association of German electrical and electronic manufacturers (ZVEI), new orders in the German electrical and digital industry fell by 11.3 \% year-on-year from January to April 2024. ${ }^{5}$ The IFO Institute forecasts a gradual end to supply bottlenecks and a normalisation of the high order backogs accumulated over the course of the pandemic.
for by the slightly improved gross margin from $33.3 \%$ in the previous year to $34.3 \%$ in the FORTEC Group.

However, the group turnover in the range of EUR 95 million to EUR 100 million and a group EBIT of between EUR 7.0 million and EUR 9.5 million as adjusted in May 2024 was achieved at the lower end.

Therefore, the result for the 2023/2024 financial year was considered satisfactory overall from the company point of view, as the margin quality was able to be improved further and the group expects further increases in turnover in the future.

Thanks to the improved delivery capability for preliminary products, the order backog in the group fell to EUR 53.4 million at the end of the 2023/2024 financial year, and was therefore $36 \%$ down on the previous year.
the previous year.
The turnover decline mainly resulted from the investment reluctance in the data visualisation segment with high-margin solutions. In contrast, the turnover in the power supply segment remained stable and the margin improved thanks to orders from the defence sector.

The inventories of finished goods and work in progress decreased significantly by EUR 880 thousand due to completing open orders with stock goods in comparison to the previous year.

Other operating income decreased from EUR 2.5 million in the previous year to EUR 1.2 million. The reason for this is the significantly reduced currency gains of EUR 0.8 million compared to the previous year (previous year: EUR 2.0 million).

The cost of materials decreased by $13 \%$ to EUR 61.7 million (previous year: EUR 71.2 million). Taking into account the change in inventories of finished goods and work in progress in the 2023/2024 financial year, the gross margin (contribution margin 0 rose slightly to from $33.3 \%$ to $34.4 \%$. The cost of sales ratio therefore reduced slightly from 66.7 \% in the 2022/2023 financial year to 65.6 \% in the 2023/2024 financial year.

Personnel expenses only increased by EUR 150 thousand to EUR 16.6 million despite salary adjustments (previous year: EUR 16.4 million).The reasons for this include reduced variableremuneration payments and special payments, including the reduced inflation compensation premium, as well as a reduction to the number of employees in the existing locations ( $-\mathrm{S}$ employees). Furthermore, external services were used more thanks to interim management and personnel leasing. The personnel cost ratio increased from $15.5 \%$ to $17.5 \%$ due to the decline in turnover.

Depreciation decreased from EUR 2.2 million in the previous year to EUR 1.7 million. The reason for the decrease is an unplanned goodwill amortisation that was included in the previous year's value.

Other operating costs reduced by around EUR 0.1 million to EUR 8.4 million (previous year: EUR 8.5 million) and were 8.9 \% relative to turnover (previous year: 8.0 \%). The cause of this was a decrease in currency losses by EUR 1.2 million. On the other hand, IT costs including IT services increased significantly from EUR 0.8 million to EUR 1.5 million due to ongoing IT projects.

On balance (currency gains less currency losses), the profit and loss account includes a currency gain of EUR 13 thousand. The previous year resulted in currency gains of EUR 34 thousand.

As a result of the aforementioned factors, the EBIT result as a key financial performance indicator of EUR 7.1 million is within the range of EUR 7.0 million to EUR 9.5 million, as adjusted in May 2024. The EBIT margin, based on sales revenues, decreased from $10.1 \%$ in the previous year to $7.5 \%$ in the 2023/2024 financial year.

Taxes on income andearnings decreased by $40 \%$ to EUR 1.8 million (previous year: EUR 3.0 million). The tax rate therefore decreased from $28.6 \%$ to $25.4 \%$, which, in addition to the decreased EBIT, is mainly due to the new profit transfer agreement between FORTEC Integrated and FORTEC Elektronik AG enabling existing tax loss carry-forwards to be used.

The consolidated net income for the 2023/2024 financial year was EUR 5.3 million (previous year: EUR 7.6 million). The return on sales after taxes decreased to $5.6 \%$ (previous year: 7.1 \%).

Earnings per share therefore decreased by around $30 \%$ from EUR 2.32 to EUR 1.63.

At the upcoming Annual General Meeting, the Management Board and the Supervisory Board will propose a stable dividend distribution of EUR 0.85 per share (previous year: EUR 0.85 per share). This corresponds to a return of $4.4 \%$ based on the share price (EUR 19.50) on 30 June 2024.

Development of the segments
The external revenues of the data visualisation segment made a contribution to Group turnover of EUR 56.7 million (previous year: EUR 68.0 million) and the power supplies segment EUR 37.8 million (previous year: EUR 37.9 million) to the group turnover. The ratio of the two segments therefore turned in favour of the power supply segment. The data visualisation segment contributed $60.0 \%$ (previous year: $64.2 \%$ ) to the total turnover.
The return on sales (EBIT return) in relation to the total output of the data visualisation segment decreased from $12.6 \%$ to $6.0 \%$,
the return on sales in the power supply segment decreased from $8.4 \%$ to $7.5 \%$
The decrease in EBIT return in the data visualisation segment is volume-related. While the cost of sales ratio was able to be decreased from $66.2 \%$ to $64.5 \%$, the slightly increased personnel costs and other operational costs caused the slight decrease to the EBIT return. In the power supply sector, turnover remained stable and the cost of sales ratio was able to be reduced from $72.5 \%$ to $70 \%$. However, due to increased other operational costs (IT project), the EBIT return decreased from $8.4 \%$ to $7.5 \%$.

Group management report: 7. Asset situation

On the assets side, with a balance sheet total of EUR 78.8 million (previous year: EUR 76.3 million), non-current assets amount to EUR 16.8 million (previous year: EUR 16.7 million).
Of this figure, at EUR 6.5 million (previous year: EUR 6.5 million) the goodwill from the acquired subsidiaries is the largest item. Due to accounting in accordance with IFRS 16, unchanged rights of use amounting to EUR 4.8 million (previous year: EUR 4.8 million) are reported.
The tangible assets mainly comprise one plot and a building from the power supply segment. The slight decline of EUR 4.4 thousand is mainly due to the ongoing depreciation of the building.

Under current assets, with a value of EUR 22.3 million (previous year: EUR 32.6 million), the stocks standing at $28.3 \%$ (previous year: $42.7 \%$ ) is one of the two largest single items of the balance sheet total. Of this amount, EUR 12.2 million (previous year: EUR 17.8 million) is attributable to the data visualisation segment, whilst the power supplies segment accounts for EUR 10.1 million (previous year: EUR 15.1 million). The decrease in stock volumes results from delivery availability of preliminary products normalising gradually.

The receivables from deliveries and services item increased from EUR 11.4 million in the previous year to EUR 14.8 million. The decrease results from the increased turnover in the fourth quarter, particularly in June 2024.

The stock of instruments of payment, the second of the two largest items on the assets side, increased significantly from EUR 13.2 million in the previous year to EUR 22.3 million on 30 June 2024. The reason for this was a significantly higher operational cash flow. With this financial strength development, the group is continuing to prepare for a planned strategic takeover of another company, which we have not yet been able to complete.

The group's equity ratio is $73.3 \%$ (previous year: 72.0\%). At EUR 57.8 million (previous year: EUR 55.0 million), the Group has sufficient equity. The equity capital increased by the consolidated net profit of EUR 5.3 million and was reduced by the dividend payment of EUR 2.8 million.

On the liabilities side, non-current bank liabilities fell from EUR 1.3 million to EUR 0.9 million due to reclassifications in the area to the current liabilities to credit institutes. The current liabilities to credit institutes remained unchanged at EUR 333 thousand. Other current liabilities decreased from EUR 2.2 million to EUR 1.6 million due to reduced contractual liabilities according to IFRS 15.

Liabilities due to deliveries and services decreased only slightly to EUR 6.3 million (previous year: EUR 6.5 million).
The increase in tax liabilities from EUR 2.7 million to EUR 4.4 million is mainly due to the significant rise in liabilities due to VAT (EUR 791 thousand), as well as tax returns for previous years, which have not yet been completed.

The goal of financial management is to safeguard corporate success against financial risks of any kind. The group pursues a conservative financing policy with the aim of securing its liquidity at all times. In doing so, the Group applies a steady and responsible dividend policy and utilises the freely available bank balances, which are intended to exceed the group's current liabilities. This ensures liquidity at all times.

The Group's objective is to sustain a strong capital base in order to maintain investor, market and creditor confidence. The objective of capital management is to ensure that business operations are based on a high level of equity financing. To maintain or adjust
the capital structure, the Group may make adjustments to dividend payments and share buybacks, and issue new shares. The group monitors capital using a ratio of equity to net financial debt/equity/net financial debt/; as the capital controlling indicator. The capital controlling indicator should be higher than four. Net financial debt includes all debts according to the balance sheet less cash and cash equivalents. The equity capital comprises the equity capital shown in the balance sheet.

In thousand EUR	30/08/2024	30/08/2023
Total balance sheet debts Less cash and cash equivalents	21,041	21,299
	(22,259)	(13,246)
Net debt	0	8,053
Equity capital	57,762	55,005
Capital controlling indicator	-	6.83

At the end of the 2023/2024 financial year, the FORTEC Group does not have any net financial debts, as the cash and cash equivalents exceed the total debts. Calculating the capital controlling indicator is therefore not possible.

This high stock of instruments of payment is mainly intended for acquisition objectives and is invested in interest-bearing day-to-day cash and restricted cash for up to 3 months as part of liquidity management.

The FORTEC Group defines the net financial assets as a further liquidity protection amount as the difference between the cash and cash equivalents, and the interest-bearing financial liabilities, of which the FORTEC Group only counts the bank liabilities. The net financial assets defined in this way are therefore EUR 21.0 million (previous year: EUR 11.6 million).
The cash flow from operations in the 2023/2024 business year increased significantly from EUR 5.0 million in the previous year to EUR 13.7 million due to the stock reduction of EUR 10.3 million and lower tax payments.

The cash flow from investing activities was EUR -540 thousand (previous year: EUR -495 thousand) and remained roughly stable.

The cash outflow from financing activities was EUR 4.2 million after dividend distribution and regular repayments (previous year: EUR 4.1 million).

In total, the group recorded cash and cash equivalents of EUR 22.3 million on 30 June 2024 (previous year: EUR 13.2 million).

Investments

In the past financial year, investments in intangible assets amounted to EUR 124 thousand (previous year: EUR 175 thousand), EUR 4.17 thousand in tangible assets (previous year: EUR 34.1 thousand), and rights of use amounting to EUR 1,147 thousand (previous year: EUR 185 thousand), whereby investments were largely realised in operating and office equipment. In terms of rights of use, the decreases mainly resulted from a rental contract ending and being replaced by a new contract, and the low remaining term of the rental contracts.

Group management report: 8. Financial and liquidity position

Non-financial reporting
Non-financial performance indicators such as employee matters, long-term customer and supplier relationships, environmental issues and ISO certifications are also very important for the group, although these are assigned a subordinate role in the management of the group. With respect to employee matters, the average length of a FORTEC Group employee's time in service is over 8 years.

The FORTEC Group's stable business over decades is based on a long-lasting, close cooperation with selected suppliers.

Many long-standing customers benefit from this, and the Group in turn owes its business success to these customers.

The company is committed to ecological sustainability in its operational activities. For this reason, FORTEC is steadily expanding its sustainability report, which was prepared voluntarily for the first time in 2021/2022. The Group is certified in accordance with ISO 9001 and environmental management is already partially integrated into the management manual. The Management Board's variable remuneration also included qualitative goals that are published in the company's remuneration report.

Group management report: 9. Forecast report

The following statements regarding the future course of business and the assumptions of the economic development of the market and the industry are based on the assessments of the Management Board, which are currently considered realistic according to the information available. Various known and unknown risks, uncertainties and other factors may mean that the forecast developments do not actually come into being, either in terms of their tendency or their extent.

According to the IFO economic forecast, the gross domestic product in Germany is expected to increase by $1.5 \%$ in the coming year. ${ }^{1}$

The IFO forecast predicts an increase in gross value added of $5.1 \%$ in the economic sector of the manufacturing industry in 2025. ${ }^{2}$ However, the Business Climate Index is still holding back comparatively in August 2024 and shows stagnation in the best case scenario. ${ }^{3}$

The current geopolitical and economic uncertainties currently make it difficult to produce a reliable forecast. Although the Ukraine war hardly affects FORTEC, there are indirect effects due to economic uncertainties and sanctions. Furthermore, the power struggle between the USA and China, the Taiwan
issue and access to raw materials could have an impact on the FORTEC Group's business.

The Management Board expects further increases to service and personnel costs in 2024/2025, which could affect profitability. When it comes to personnel costs in particular, a significant increase is expected due to salary adjustments and new posts that, along with the secured package of investments in tangible assets and IT as part of the Strong Together Strategy 2030, are intended to safeguard the future growth of the FORTEC Group. The general economic conditions will determine whether these costs can be compensated for foreseeably and completely by price increases.

Under the aforementioned premises and the challenges outlined, the group expects an upward movement to the group turnover and EBIT in the data visualisation segment while we are planning for sideward movement when it comes to turnover and EBIT in the power supply segment in the 2024/2025 financial year. A group turnover in a range of between EUR 95.0 million and EUR 110.0 million (2023/2024 financial year: EUR 94.5 million) and a Group EBIT of between EUR 6.0 million and EUR 8.0 million (2023/2024 financial year: EUR 7.1 million) are expected.

General risk notice
A forecast is subject to uncertainties that may have an impact
on the development of results, which cannot be fully assessed at the current time.

Group management report: 10. Risk and opportunity report

10.1 Risk management

Fundamentals of risk management
Risk management is an ongoing task of identifying risks as possible negative developments and their effects on the Group at an early stage, evaluating them and implementing measures to deal with the risks accordingly.
It is therefore necessary to create an awareness of the risks existing in the company among all employees and in particular among decision-makers. For this reason, corresponding processes and procedural instructions are integrated into the QMH process landscape and are permanently available to all employees; they are defined annually and their effectiveness is reviewed in internal audits. Employees are additionally sensitised in this regard through training.
Risk management is an integral part of the management system and facilitates the identification of risks and the limiting of their effects insofar as possible.

Risk identification

At regular intervals, the FORTEC Group carries out a risk survey by means of questionnaires and checklists. This results in a risk matrix (risk inventory) and is reported to the Management Board. This process ensures that both known and newly arising risks in the daily course of business are made transparent and therefore
controllable. To this end, specifications are also devised for the subsidiaries.

Risk assessment
Risks are assessed and classified in terms of their probability of occurrence and their qualitative significance for the company, in order to establish transparency with regards to risk relevance for the group. The FORTEC Group draws up a quantitative assessment to facilitate even more precise evaluation of the risk-bearing capacity. The risk assessment is made up of the individual evaluations of the probability of occurrence and the potential gross amount of damage, which are reduced to a corresponding net risk through appropriate countermeasures. The criterion of probability of occurrence is divided into the categories "highly unlikely" (probability up to $10 \%$ ), "unlikely" (probability up to $25 \%$ ), "possible" (probability up to $50 \%$ ), "probable" (probability up to $75 \%$ ) and "highly probable" (probability up to $100 \%$ ).

The potential gross loss amount is classified up to EUR 0.1 million ("minimal"), up to EUR 0.5 million ("minor"), up to EUR 1.0 million ("moderate"), up to EUR 5.0 million ("severe") and up to EUR 10.0 million ("threatening"). The final risk is divided into the categories "high risk" (net risk greater than EUR 1.0 million), "moderate risk" (net risk between EUR 0.5 million and EUR 1.0 million) and "low risk" (net risk less than EUR 0.5 million).

Risk management measures
Risk control can take place on the basis of the risk assessment. Appropriate risk measures have been implemented in accordance with the risk assessment carried out by the Management Board, and the individuals responsible for their implementation have been appointed. One of the aims of the risk management system is to ensure that risks are recognised by employees and decision-makers before they result in damage to the company and that those responsible reduce the risks in good time - either independently or in cooperation with the decision-makers - to a level that is acceptable to FORTEC.

Risk reporting

Continuous risk reporting, in particular by the legally independent Group companies, ensures that the Management Board is able to regularly obtain an overall picture of the risk situation of the participations. The formal implementation of the risk management system helps in this regard. However, FORTEC also focuses on ensuring that the employees are made permanently aware of potential risks, and that risks are recognised and dealt with promptly.

The internal control and risk management with regard to the accounting process is an integral part of all processes of the FORTEC Group and is based on a systematic approach of risk identification, assessment and management that encompasses the entire Group. An internal control system supports the attainment of business policy objectives by ensuring the functionality and efficiency of business processes, compliance with laws and regulations, and the protection of business assets. The Management Board is responsible for the design of the control and risk management. Active monitoring controls by the board support the identification, assessment and handling of risks in the individual business areas of the PLC and within the subsidiaries.

The group has implemented a comprehensive QM management system for process organisation, which includes workinstructions for the preparation of financial statements and other accounting-related activities that help to prevent errors.

As part of the control and risk management from the participations, monthly evaluations of the segments facilitate
the prompt identification of any deviations in the planned figures for incoming orders, the order inventory, stock on hand, as well as turnover, gross margin and costs, and the implementation of countermeasures if necessary. The maturity of receivables, in particular debtors, is reviewed regularly.

The measures aimed at the correctness and reliability of accounting ensure that business transactions are recorded fully and promptly in accordance with the legal and statutory regulations, that inventories are carried out correctly, and that both assets and liabilities are accurately recognised, valued and reported in the annual financial statements. The processes serve to ensure that the accounting records provide reliable and comprehensible information.

External consultants with appropriate expertise in accounting processes, such as auditors, accountants, as well as software providers, are included in the internal risk management.

10.2 Risk report

The risks listed below - subdivided into risk categories - can affect the company as a whole (overall risk), the two segments, the financial situation (financial risks) and the results (earningsoriented risks). Further system-related risks are the personnel risk and technical risk. The Group is permanently exposed to the risks listed below.

The principle insurable natural hazards are covered by a comprehensive insurance policy. This is reviewed annually, but may not be sufficient in individual cases.

For both segments, potential risks that FORTEC must take in order to exist and survive in the market are the product risk, the risk of price changes and default risk, as well as the market risk and the dependence on upstream suppliers.

Market price risks
In times of high demand and product availability shortages, such as during the pandemic from 2020 to 2023 and due to the general increase in energy prices, the prices for purchased parts increased dynamically. A decrease in demand along with
improved delivery capability is currently increasing the market risk, as price implementation becomes more difficult.

Price change risks, which consist of a potential loss due to adverse changes in the market price or price-influencing parameters, are minimised through contract negotiations.

Although the FORTEC Group has always succeeded in managing this risk in the past, it is not possible to guarantee that market price risks will not result in future losses.

However, this risk is currently classified as low.
Procurement risks
a) Inventory risks

A significant earnings-oriented risk lies in the material planning of inventories. Incorrect scheduling can lead to considerable losses despite a multi-stage procurement process.

However, the risk of having unsaleable goods in stock is not only based on an incorrect estimation of future demand, but also depends on a different perception of quality standards between customers and producers, in particular with respect to the quality of the goods (especially from the Asian region), and on EU directives and regulations regarding the constituents and use of the goods. Product liability is an ongoing risk for the FORTEC Group, for example due to changes in purchasing rights (e.g. Brexit). The risk is minimised through the careful selection of suppliers and the monitoring of assessments. However, in the event of deception and criminal acts on the part of upstream suppliers, Group companies are each liable to the customer as importers.
b) Changes in suppliers

Close cooperation with only a few strategic partners in the product area poses a major risk that is inherent in the system, which must not be underestimated. Success with Asian suppliers in particular is often based on a long-standing personal relationship between the decision-makers, in particular in the power supplies segment. As such, a change in personnel - be it due to the departure of the decision-maker(s) from the company or a change in the company's shareholder structure - can lead to the loss of existing business relationships. An expected
concentration process on the supplier side could also have a negative effect on the company. In extreme cases, this could result in the termination of the supply relationship. The tensions between China and Taiwan currently pose a particular risk on the supplier side. The company counteracts the risks by establishing alternative secondary suppliers in certain areas and adjusting the inventory.
c) Availability of goods and procurement prices

The market for power supplies and display technology is heavily dominated by the Far East. In times of high demand and product availability shortages due to limited capacities, this can lead to price effects (rising purchase prices), delivery delays and even to the non-delivery of products or, in the event of low demand and high delivery capability, to decreased purchase prices, meaning that a loss of sales or lower margins could arise in the worst case scenario. The group attempts to counteract this risk through a forward-looking procurement policy and back-up inventories.

Group management report: 10. Risk and opportunity report

Risk reporting in relation to the use of financial instruments The Group holds financial instruments including: Current and investment accounts, supplier credits and receivables or similar. The FORTEC Group has a solvent and highly creditworthy customer base, which is also generally covered by trade credit insurance for deliveries of goods to groups listed in the DAX 40 index above a receivables amount of EUR 10,000. Losses arising due to bad debts are not expected to be of a magnitude that could endanger the Group's existence.
Liabilities are paid within the agreed payment periods.
To hedge the liquidity risk a liquidity plan is prepared on a weekly basis and the value of receivables, especially debtors, is reviewed regularly. To further secure liquidity, the group has sufficient bank balances that exceed current liabilities from deliveries and services.
Furthermore, the group has one long-term bank loan with favourable conditions from the management's perspective. Credit lines amounting to EUR 7.6 million have also been granted at group level, but these are not in use at the moment. The goal of financial and risk management is to secure the company's success against any form of financial risk.

The risk is currently classified as low.

Legal and warranty risks
A constantly increasing risk lies in customer requirements, which extend beyond the previous warranty period and the usual standard of a supply contract. In recent years, customers have gradually developed a sense of entitlement that places a clear burden on the supplier. Claims arising from the supply contract can be considerably higher than the value of the goods and legal disputes with corresponding risks are increasingly resulting from this.

The FORTEC Group has been able to deal with this risk so far and therefore assumes a low risk.

Default risks
Default risk is the risk of financial loss if a customer or a contracting party to a financial instrument fails to meet their
contractual obligations. A default risk generally arises from the Group's receivables due to deliveries and services, as well as debt securities held as financial investments.
As a general rule, the Group checks the creditworthiness of the customer relationship with a trade credit insurer for all new customers and otherwise on an annual basis. Uninsured relationships are individually assessed and entered into through bank guarantees, other hedges or advance payment. Accounts receivable are constantly monitored and known risks are reflected in value adjustments.

The risk is currently classified as low risk.
The "expected credit losses" (ECL) model is used for receivables arising due deliveries and services.

Personnel risks

Success in the market remains heavily dependent on the comprehensive knowledge, long-term experience and, at the present time in particular, very much on the health of the employees. Any large-scale change in personnel or individual key members of staff could jeopardise the success achieved so far. Hiring new employees against the background of a highly discernible shortage of skilled workers and enhancing attractiveness as an employer in a regional environment of full employment has presented a particular challenge. The risk is reduced through cooperation with external personnel service providers, active sourcing with the inclusion of social media, recruitment of employees abroad, relocation offers as well as a new, modern working environment and individual working models. Furthermore, the FORTEC Group endeavours to secure and keep the expertise within the company through early succession planning for employees who are set to leave the company. FORTEC also provides targeted support for young people through the continuous training of young employees.

Nevertheless, the risk is classified as moderate.

Corporate strategy risks and competitive risks
If the industrial customers of the FORTEC Group were to change their strategy and to cease production in Central Europe on
a long-term basis and in doing so, rely on local suppliers, this would call the business model of FORTEC as a supplier of technically sophisticated products into question.

A similar effect would arise in the event of a future change in the behaviour of the upstream suppliers of the FORTEC Group, resulting in these suppliers realising sales directly to industrial customers via the internet and no longer selling their products exclusively through the established distribution channels.

The same effect could occur if the trading margin to be achieved is below the costs incurred by the FORTEC Group due to the competitive information available to all customers via the Internet, which is mainly influenced by personnel expenses. Extensive production capacities, in particular in the data visualisation segment, increase the risk of not being able to react flexibly to market conditions due to the fixed cost block.

The risk is currently classified as high.
IT risks / cyber risks
A technical risk lies in the Group's entire IT network. Any possible failure or serious malfunction in the computer system could cause considerable damage to the FORTEC Group. Misuse by internal or external parties despite security precautions - in particular through theft of information or through inadequate data protection precautions - can endanger the company in extreme cases. This risk is minimised through the implementation of an internal MRS 5 network and the associated reduction of external interfaces, the ongoing training of employees, multi-factor authentication and cooperating with an external information security officer.

Nevertheless, the risk is currently classified as high.

Compliance risks

As an international company that is oriented towards the capital market, the FORTEC Group operates in an environment of varied legal regulations. Numerous compliance laws and regulations, e.g. tax matters, as well as the ongoing changes to these regulations influence the company. Violations of
these regulations, as well as the EU General Data Protection Regulation (GDRR) can result in significant fires, additional costs and negative reports. Violations of applicable directives by employees of the FOTRIC Group is a risk to which the company is exposed. The company faces these risks proactively by training employees, observing legislative changes precisely and ongoing consultation with lawyers and accountants.

The risk is therefore classified as low.
Currency risks
Foreign currency risks are avoided insofar as possible by conducting business in a single currency. Nevertheless, changes, in particular with regards to the dollar and yen parity as well as fluctuations of the Swiss franc and the British pound against the euro, dollar and yen, can have negative effects for the group. Currency risks can arise in particular as a result of the foreign activities, because currency fluctuations there directly influence the group's results.

Based on ongoing monitoring, the risk is classified as low.
Interest rate risks
The FORTEC Group has significant cash and cash equivalents that earn interest, as the company invests its money for terms of up to 3 months. Therefore, an interest reduction to shortterm interest would cause a decrease in interest income.
The risk is currently classified as low, as interest income is currently of low importance in comparison to the remaining sources of income.

The list of risks is not exhaustive; additional risks may arise that we are currently unaware of or do not consider significant.

Group management report: 10. Risk and opportunity report

Summary risk assessment
The overall risk position of the Group is operationally unchanged compared to the previous year. At the present time, it is not possible to definitively assess whether and what effects the war in Ukraine, the ongoing differences between the USA and China, and the issues relating to Taiwan could still have.
At the present time, no risks are identifiable that could endanger the continued existence of the Group as a whole.
In addition to the risks, the following opportunities, in the form of opportunity management, have been integrated into the management manual. This manual is updated annually as part of the management review, in order to continuously develop the Group.

10.3 Opportunity report

The FORTEC Group sees a number of opportunities to successfully develop the company in the coming years.

The company philosophy "Big enough to compete, small enough to care" continues to create new opportunities compared to the previous year.

New market opportunities are identified by the Management Board through targeted market observation, analysed and further developed together with the Supervisory Board within the framework of the strategic orientation. Outside the Germanspeaking region, we are seizing further market opportunities through subsidiaries in Great Britain and the USA.

Product opportunities also arise for the FORTEC Group as a technology company through its own products and production services in the area of display controls, touch solutions with the optical bonding process and high-quality industrial monitors due to the current trend towards digitalisation; above all through the rapidly developing Industry 4.0, i.e. the networking of industrial applications. This fourth industrial revolution with the scenario of a thoroughly rationalised factory will bring a productivity gain, from the management's perspective in particular in Central Europe. The FORTEC Group, as a supplier to the capital goods industry, could benefit from this for years. Definitive opportunities are identified by the external sales team, for example, or initiated
by product marketing and evaluated in regular exchange with the company management. If applicable, the results are included in roadmaps and realised in new projects, which tie up money and resources and therefore represent a potential risk in their own right.
In the power supplies segment, the FORTEC Group possesses expertise in application, problem solving and technical service. In the data visualisation segment (display and embedded computer technology), the technology expertise for complete and functionally tested subsystems is a growth driver.

Further opportunities arise due to the consolidation of operational activities within the subsidiaries, which results in synergies in accordance with the "Grow Together 2025 Strategy". The "FORTEC One" project with the common brand identity implemented this year is an important milestone in merging together to become a global partner for unlimited technology solutions. Further measures for a successful future are anchored in the "Strong Together 2030 Strategy".

With the newly-established FORTEC EGYPT development site in Cairo, Egypt, FORTEC is increasing its own development capacities to generate growth with new products and to inspire customers with the new possibilities.
Although this cannot be guaranteed for the future, the FORTEC Group is confident that the expanded mix of Distribution, Development, Production \& Solutions in both segments offers good opportunities for long-term, sustainable growth.
The financial situation enables the group to respond with flexibility and speed to strategic options as they arise in the light of market and industry developments.

Overall assessment of the risk and opportunity situation
From the perspective of the management of a technology company, the opportunities for the future development of FORTEC outweigh the risks. Although the entrepreneurial risks are constantly increasing, the demands on products are permanently higher and the product life cycles are becoming ever shorter, the group remains of the opinion that the market environment for both segments can undergo positive change overall, in particular due to the digitalisation trend in connection with Industry 4.0 as a subset of the Internet of Things (IoT).

Nonetheless, the worldwide crises could continue to have a negative impact on the Group's delivery capability and sales market. The Management Board is monitoring and analysing the developments very closely.

The financial situation enables the group to respond with flexibility and speed to strategic options as they arise in the light of market and industry developments.

Group management report: 11. Further information in accordance with section 315a of the German Commercial Code

The number of shares on 30 June 2024 stands at 3,250,436 with a nominal value of EUR 100 per share. There is currently neither conditional capital nor a share buyback programme.
The subscribed capital consists exclusively of ordinary bearer shares with voting rights. There are no restrictions on voting rights, nor are there any restrictions on the transfer of shares.

The AGM of 15 February 2023 authorised the Management Board, with the approval of the Supervisory Board, to increase the company's share capital by up to EUR 1,625,218 by issuing up to 1,625,218 no-par value bearer shares on one or more occasions against cash and/or non-cash contributions by 14 February 2028 (Authorised Capital I). The Management Board was also authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in the following cases:
(i) for fractional amounts;
(ii) for capital increases against contributions in kind;
(iii) in the case of cash contributions up to an amount not exceeding 10 percent of the share capital existing at the time this authorisation becomes effective or - if this value is lower - at the time this authorisation is exercised, provided that the issue price of the shares is not significantly lower than the stock exchange price of the already listed shares of FORTEC at the time the issue price is finally determined.

The authorised capital on 15 February 2023 (Authorised Capital 2023/I) amounts to EUR 1,625,218 on the balance sheet date.

The AGM of 07 February 2024 authorised the Management Board, with the approval of the Supervisory Board, to acquire the company's own shares by 06 February 2029 up to a total of 10\% of the company's existing share capital at the time of the date of resolution or, if this value is lower, at the time of exercising the authorisation. The shares acquired as part of this authorisation, together with the company's other shares that the company has

Group management report: 11. Further information in accordance with section 315a of the German Commercial Code

already acquired and still owns or that are attributable to it in accordance with section 71a ff. of the German Stock Corporation Act (AktG) must never exceed $10 \%$ of the relevant share capital.

Appointment and dismissal of the Management Board take place in accordance with the statutory provisions (sections 84, 85 of the German Stock Corporation Act (AktG)). Compensation agreements in the event of a change of control or a takeover bid have been concluded with the Management Board. However, in the event of a change of control as a result of a takeover bid, the supplier contracts essential to the company may be terminated by the contractual suppliers. This danger exists in particular if the contractual supplier has reason to fear the entry of a competitor. Amendments to the articles of association require a majority of $75 \%$ of the votes cast at the AGM.

Further disclosures in accordance with section 315a, paragraph 1 no. 3 of the German Commercial Code are provided in the notes to the consolidated financial statements.

Declaration on Corporate Governance in accordance with section 315d of the German Commercial Code
According to section 315d HBG [Commercial Code], the company must submit a corporate governance statement for the Group. This declaration is made permanently accessible to the public on the Company's website at:
https://www.fortecag.de/investor-relations/corporategovernance/

Financial Report 2024

Consolidated balance sheet
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated cash flow statement

In thousand EUR	Annex	Consolidated balance sheet 30/06/2024	Consolidated balance sheet 30/06/2023
A. Non-current assets
I. Acquired goodwill	5	6,503	6,448
II. Intangible assets	6	331	312
III. Tangible fixed assets	6	4,452	4,536
IV. Rights of use	7	4,830	4,845
V. Financial assets balanced according to the equity method	8	86	77
VI. Financial assets	9	77	75
VII. Deferred tax assets	19	456	415
		16,771	16,709
B. Current assets
I. Inventories	10	22,290	32,556
II. Receivables from deliveries and services	11	14,795	11,408
III. Tax refund entitlements	11	2,100	1,829
IV. Other financial assets	11	236	145
V. Other assets	11	351	411
VI. Cash and cash equivalents	12	22,259	13,246
		62,031	99,595
Total assets		78,802	76,304

In thousand EUR	Annex	Consolidated balance sheet 30/06/2024	Consolidated balance sheet 30/06/2023
A. Equity capital
I. Subscribed capital	14	3,250	3,250
II. Capital reserve	14	14,481	14,481
III. Conversion adjustments	14/32	1,607	1,691
IV. Other reserves	14	32,813	28,022
V. Consolidated annual surplus	14	5,315	7,555
Equity of the owners of the parent company		57,766	54,999
Non-controlling interests		$-5$	6
Total equity capital		57,762	55,005
B. Non-current liabilities
I. Non-current bank liabilities	15/18	944	1,278
II. Non-current leasing liabilities	18	3,973	3,957
III. Other non-current financial liabilities	18	87	96
IV. Other non-current liabilities	18	24	239
V. Non-current reserves	17	400	398
VI. Deferred tax liabilities	19	352	543
		5,781	6,510
C. Current liabilities
I. Liabilities to credit institutes	15/18	333	333
II. Liabilities from deliveries and services	18	6,321	6,508
III. Current leasing liabilities	18	1,040	1,052
IV. Tax liabilities	18	4,408	2,740
V. Other current financial liabilities	18	1,275	1,534
VI. Other current liabilities	18	1,595	2,169
VII. Reserves	17	287	452
		15,260	14,789
Total liabilities		78,802	76,304

In thousand EUR	Annex	Group P&L 2023/2024	Group P&L 2022/2023
1. Gains revenues	22	96,522	105,867
2. Increased inventory of unfinished goods	22	$-227$	652
3. Other operating income	23	1,196	2,515
4. Cost of materials	24	$-61,744$	$-71,239$
5. Personnel expenses	25	$-16,566$	$-16,412$
6. Depreciation	26	$-1,739$	$-2,184$
7. Other operating costs	27	$-8,391$	$-8,507$
8. Operating result (CBIT)		7,058	10,680
9. Income from companies balanced according to the equity method	8	33	33
12. Other interest and similar income	29	148	6
13. Other interest and similar costs	29	$-134$	$-144$
14. Result before taxes		7,108	10,577
15. Taxes on income and earnings	30	$-1,803$	$-3,023$
16. Consolidated annual income		5,357	7,557
17. Other earnings	32	216	$-127$
18. Total earnings		5,319	7,424
Attributable to:
19. Shareholders of the parent company		5,530	3,180
20. Non-controlling shareholders		$-11$	0
21. Earnings per share (in euros)		1.63	2.32
22. Number of shares (in units)		3,250,436	3,250,436

In thousand EUR	Subscribed capital	Capital revenue	Currency conversion difference	Other reserves	Total	Non-controlling interests	Total equity capital
As at 01/07/2022	3,250	14,481	1,819	30,297	49,847	10	49,857
Consolidated annual surplus in financial year 2022/2023				7,555	7,555	$-3$	7,551
Addition to scope of consolidation
Change in other earnings			$-127$		$-127$		$-127$
Dividend payments				$-2,275$	$-2,275$		$-2,275$
Changes in financial year 2022/2023			$-127$	5,279	5,152	$-3$	5,148
As at 30/06/2023	3,250	14,481	1,691	35,576	54,999	6	55,005
As at 01/07/2023	3,250	14,481	1,691	35,576	54,999	6	55,005
Consolidated annual surplus in financial year 2023/2024				5,315	5,315	$-11$	5,303
Change in other earnings			216		216		216
Dividend payments				$-2,763$	$-2,763$		$-2,763$
Changes in financial year 2023/2024			216	2,552	2,767	$-11$	2,756
As at 30/06/2024	3,250	14,481	1,691	38,126	57,766	$-5$	57,762

Contents of the notes to the consolidated financial statements
General disclosures 30
Accounting and significant valuation principles 34
Scope of consolidation 44
Consolidation principles 45
Acquired goodwill 46
Intangible and tangible assets 49
Leases 49
Financial assets balanced according to the equity method 51
Financial assets 53
Consolidated statement of changes in gross assets 54
Inventories 56
Receivables from deliveries and services, tax refund entitlements, other current financial
and other current assets 56
Cash and cash equivalents 57
Subscribed capital 57
Equity capital 58
Financial instruments - fair value 59
Objectives and methods of risk management of financial instruments 62
Reserves 65
Liabilities 65
Deferred taxes 66
Other financial liabilities 67
Sales revenues 68
Change in inventories of unfinished/finished goods 69
Other operating income 69
Cost of materials 69
Personnel expenses 70
Depreciation 70
Other operating costs 71
Research and development costs 71
Interest result 71
Taxes on income and earnings 72
Segment reporting 73
Currency conversion 77
Notes to the cash flow statement 77
Capital management 78
Supervisory Board 79
Transactions with related companies and people 80
Remuneration of key management personnel 81
Auditor's fees 81
Other regulations according to stock corporation law 82
Other disclosures 83
Release for publication 83

Notes to the consolidated financial statements:

1. General disclosures

FORTEC Elektronix Aktiengesellschaft, Germering, Germany (henenafter "FORTEC"), as the highest-level parent company in accordance with section 315e of the German Commercial Code, prepares consolidated financial statements in accordance with the provisions of the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), London, effective as on the balance sheet date, as well as the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as applicable in the European Union as of 30 June 2024.

The basis for this is the obligation resulting from section 315e, paragraph 1 of the German Commercial Code in conjunction with Article 4 of Regulation (EC) No. 1606/2002 of the European Parliament and Council of 19 July 2002 concerning the application of international accounting standards.

All standards whose application was mandatory as of the balance sheet date have been taken into account.

Furthermore, all disclosures and explanations required by section 315e, paragraph 1 of the German Commercial Code, which are additionally required by German commercial law for consolidated financial statements to be prepared in accordance with IFRS, are published over and above the disclosure requirements under IFRS.

The company's consolidated financial statements consist of
New and amended standards and interpretations IAS 8.28: The Group has applied the following new and amended standards and interpretations, which are effective from 1 January 2023, for the first time in the past financial year.

Disclosures of accounting methods - amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 8 clarify how to differentiate between the amendments to accounting methods and accounting-related estimates. The differentiation is important, as amendments to estimates are to be applied prospectively to future business transactions and events while amendments to accounting
(bogether referred to as the Group).
In the power supplies segment, the Group offers the complete product range of power supplies and OC/DC converters. In the data visualisation segment with the product areas Display Technology and Embedded Computer Technology, the activities range from standard kits to complementary services and selfdeveloped product solutions to complete industrial monitors.

The business address of the parent company is Augsburger Str. 2b, B2110 Germering. The company is registered at the Munich district court under registration number HRB 247748.

The consolidated financial statements of FORTEC have been rounded in euros, the functional currency, minor, insignificant rounding differences may therefore occur. Unless otherwise stated, all values are rounded up or down to the nearest thousand euros (EUR thousands).

The consolidated statement of comprehensive income has been prepared using the nature of expense method. Where individual items on the consolidated balance sheet and the consolidated statement of comprehensive income have been combined for the sake of clarity, they are broken down and explained in the notes.

The Group has prepared its financial statements on the assumption that it will be able to continue as a going concern.
methods are to be applied retrospectively to previous business transactions and events, as well as to the current period. The amendments did not result in any changes to the financial statements.

Amendments the definition of accounting-related estimates amendments to IAS 8
The amendments to IAS 8 clarify how to differentiate between the amendments to accounting methods and accounting-related estimates. The differentiation is important, as amendments to estimates are to be applied prospectively to future business transactions and events while amendments to accounting
methods are to be applied retrospectively to previous business transactions and events, as well as to the current period. The amendments did not result in any changes to the financial statements.

Introduction of IFRS 17 Insurance contracts
The IASB published IFRS 17 Insurance contracts, a comprehensive new accounting standard that contains principles for recognition, measurement, presentation and disclosure requirements in relation to insurance contracts. With its entry into force, IFRS 17 replaces IFRS 4 Insurance contracts, which was published in 2005. IFRS 17 applies to all types of insurance contracts (i.e. life insurance, non-life insurance, direct insurance and reinsurance) and to certain guarantees and financial instruments with discretionary participation features, regardless of the type of issuing entity. Individual exemptions apply with regard to the scope of application. The overall objective of IFRS 17 is to create a more useful and consistent accounting model for insurers. In contrast to the regulations of IFRS 4 , which largely preserve the status quo with regards to previous local accounting rules, IFRS 17 represents a comprehensive model for insurance contracts that maps all relevant aspects of accounting. The core of IFRS 17 is the general model, supplemented by
$\rightarrow$ a specific variant for contracts with direct profit participation (variable fee approach ) and
$\rightarrow$ a simplified model (premium allocation approach ), usually for short-term contracts.

IFRS 17 is applicable for the first time to financial years beginning on or after 1 January 2023. Comparative information must be provided. Early application is permitted if the entity already applies IFRS 9 and IFRS 15 or applies them for the first time at the same time as IFRS 17.
IFRS 17 does not apply to the Group. The amendments therefore did not result in any changes to the financial statements.

Amendments to IAS 12 within the scope of Pillai 9
The amendments did not result in any adjustments during the reporting period.

Published standards whose application is not yet mandatory New and amended standards and interpretations that had been published by the date of the consolidated financial statements but were not yet mandatory are presented below. FORTEC intends to apply these new and amended standards and interpretations from their effective date.

Classification of liabilities as short-term or long-term amendment to IAS 1
The narrow amendment to IAS 1 clarifies that the classification of liabilities as short-term or long-term is based on the rights that apply at the end of the reporting period. The classification is independent of both management expectations and any events after the balance sheet date (e.g. receiving a waiver declaration or a breach of contract after the balance sheet date). The amendment also defines what is meant by "fulfillment" (settlement) of a liability in IAS 1.
If companies have considered the intentions of management when determining the classification of liabilities, this may have effects. This also applies to some liabilities that can be converted into equity capital.
The amendment must be applied retrospectively in accordance with IAS 8
To be applied as of 01 January 2024 (for the group as of 01 July 2024)

Amendments to IAS 21 Lack of exchangeability
In August, the IAS published the IAS amendments to IAS 21, which adds regulations for the exchangeability of currency to the standard. These regulations are intended to help companies to determine whether a currency can be exchanged into another currency. And which spot rate they must use if this is not the case. Before this amendment, IAS 21 only contained regulations on which exchange rate is to be used if exchangeability between two currencies is temporarily unavailable but did not specify the procedure for if exchangeability is missing permanently.

Notes to the consolidated financial statements:

1. General disclosures

The group does not expect any effects on the financial statements as a result.
To be applied as of 01 January 2025 (earlier application permissible)
Supplier financing agreements, amendments to IAS 7 and IFRS 7
The amendments to IAS 7 specify that the following must be specified in relation to supplier financing agreements among other things:

An explanation of the conditions of the agreements (e.g. extended payment periods).

At the start and end of the reporting period, the book values of the corresponding items of the financial liabilities, which are part of a supplier financing agreement and the book values of these liabilities for which the suppliers have already received payments.

The range of such financial liabilities and for comparable liabilities from deliveries and services that are not part of such a supplier financing agreement.

The amendments to IFRS 7 are intended to ensure that companies also consider supplier financing agreements and associated risks in the specifications for the liquidity risk. These expanded specifications also include risk concentrations that could arise from supplier financing agreements. IFRS IC already explained the reporting requirements in the balance sheet and the cash flow statements, as well as the disclosures in an agenda decision in December 2020 on the basis of the legal position at the time.

The group does not have any supplier financing agreements and therefore does not expect any effects.
To be applied as of 01 January 2024 (for the group as of 01 July 2024)

Amendments to IFRS 16 for sale and leaseback transactions in September 2022, the IASB finalised narrow amendments to the requirements for sale and leaseback transactions in IFRS 16
governing leases. These explain how an entity accounts for a sale and leaseback transaction after the date of the transaction. The amendments specify that in measuring the lease liability after the sale and leaseback transaction, the seller/lessee determines the "lease payments" and "modified lease payments" in a way that does not result in the seller/lessee of the gain or loss relating to the retained right of use. This could have a particular impact on sale and leaseback transactions where the lease payments include variable payments that do not depend on an index or interest rate.

The Group does not foresee any impact due to the standard. To be applied as of 01 January 2024 (for the group as of 01 July 2024)

Amendments to the classification and evaluation of financial instruments in accordance with IFRS 9 and IFRS 7
The amendments on 30 May 2024 are intended to provide targeted clarification for individual regulations and therefore to reduce different interpretations in accounting practice.

The following range of topics are primarily addressed:

Classification of financial assets with ESG or similar conditions In the event of financial assets such as loans that contain environmental, social and governance conditions (known as ESG conditions) or similar features, there were ambiguities in practice about the balance sheet effects that these have on the corresponding assets, especially as to whether they are to be evaluated "at amortised cost" or "at fair value through profit or loss." With the amendments, the IASB clarifies that ESG and similar conditions relating to debtor-specific and not to general market conditions do not conflict with a classification of the contractual cash flows of the assets as "solely payments of principal and interest" ("SRPP") under certain conditions and therefore that an "amortised cost" evaluation can take place. Fulfilling liabilities using electronic payment systems: When fulfilling financial assets or liabilities using electronic money transfers, there were difficulties in applying the relevant "derecognition requirements" from the point of view of the IFRS stakeholders. The IASB has published corresponding
clarifications here. In addition, a derecognition option was added to IFRS 9, which enables companies to consider liabilities fulfilled by electronic money transfers as fulfilled before the actual date of fulfilment if certain conditions are met. This option must be applied equally to all liabilities processed using the same electronic payment system.

In addition, IFRS 7 "Financial Instruments: Disclosures" was amended: New regulations were introduced especially for equity instruments designated as "fair value through other comprehensive income," as well as for financial instruments with ESG-related or similar conditions ("contingent features").

The EU endorsement is currently still outstanding. The group will analyse any effects.
To be applied as of 01 January 2026
Introduction of IFRS 18 (replaces IAS 1)
IFRS 18 comprises basic specifications for presenting the financial statements, as well as on required disclosures, which was part of IAS 1 Presentation of Financial Statements up to now. The evaluation of financial capability itself remains unaffected by IFRS 18 and is regulated in the applicable standards. IFRS 18 applies basically to all financial statement components and mainly entails the following amendments to three higher-level areas.

The newly-defined subtotals of "operating profit" and "profit before financing and income taxes" must be added to the profit and loss account in the future. Based on this, the income and costs must be classified and structured according to the following categories:
Operating.
Investing.
Financing.
Income taxes and
Discontinued operations

Information regarding the "Management-defined Performance Measures" (MPMs) and regarding corresponding offsetting and reconciliation of individual MPMs on the closed comparable IFRS subtotals must be added to the appendix in the future. MPMs as defined by IFRS 18 can be exclusively subtotals of costs and income and must be separated from other performance measures (such as the free cash flow).

In the primary financial statement components and the appendix, new principle-based aggregation and disaggregation regulations for grouping information must be considered in the future in order to provide the users of financial statements with additional relevant and comparable information.
The adjustments must be made retrospectively.
Evaluation of effects by the group
The introduction of IFRS 18 also causes adjustments to IAS 7 Statement of Cash Flows in order to also ensure increased cross-company comparability here. With regard to dividends and interest received and paid, the previous presentation alternatives are dispensed with my most companies in favour of a uniform regulation. As a result, interest and dividends paid must be declared in the financing cash flow in the future, while interest and dividends received must be declared in the investment cash flow. The starting point for the indirect method of cash flow determination is exclusively the operating earnings in accordance with the corresponding subtotal in the modified presentation of the profit and loss account.

Furthermore, IFRS 18 also results in selective amendments to other IFRS regulations, particularly IAS 33 Earnings per Share and IAS 34 Interim Financial Statements.
The EU endorsement is currently still outstanding.

Notes to the consolidated financial statements:

1. General disclosures

A final appraisal of the effects by the company is not yet available. To be applied as of 01 January 2027 (earlier application permissible)

Introduction of IFRS 19 ("Subsidiaries without Public Accountability")
Overview of the amendments due to IFRS 19
IFRS 19 introduces significant easements for authorised subsidiaries, which permit them to apply the recognition, valuation and reporting regulations of "full IFRS" with significantly reduced declaration obligations in the individual or partial group financial statements. As a result, authorised subsidiaries can basically comply with both their obligation to present individual financial statements and internal reporting for consolidation purposes with unified recognition and valuation methods and therefore, comply with the requirements of the parent company and the users of financial statements without having to use different accounting systems.
An authorised subsidiary is a subsidiary that is not subject to its own public accountability and with a top or intermediate parent company that publishes full IFRS consolidated financial

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

2.1 Individually acquired intangible assets (without goodwill) and tangible assets

Tangible and acquired intangible assets are valued at acquisition cost less accumulated depreciation and amortised over their expected useful lives.

The useful life was set at 3-5 years for software, 10-25 years for buildings, 3-6 years for vehicles, 3-4 years for tools, 3-5 years for office equipment and 4-10 years for fixtures and fittings. Repair costs were charged as expenses.
statements. A subsidiary (as defined by IFRS 10 Consolidated Financial Statements) is subject to public accountability if its equity or debt instruments are traded on a public market, it is in the act of issuing such instruments for trading on a public market or it keeps assets on a trust basis for a wide group of outsiders as one of its main lines of business.

The EU endorsement is currently still outstanding.
This will not have any implications on the group, as German companies that are subject to public accountability must compile German Commercial Code financial statements and the immediate and exclusive use of "full IFRS" in the individual financial statements is not being considered here.
To be applied as of 01 January 2027
FORTEC is continuously analysing the amendments and does not currently anticipate any impact on the group.

As of the balance sheet date, the recoverable amount of tangible assets had not fallen below its book value.

Only straight-line depreciation is used as the depreciation method. Additions are depreciated pro rata temporis.

The book values are reviewed on each balance sheet date for any objective indications of impairment.
Tangible assets are derecognised either upon disposal or when no further economic benefit is expected from the continued use
or sale of the recognised asset. Gains or losses arising from derecognition of the asset are valued as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognised in the income statement in the period the asset is derecognised.

The asset additions from initial consolidation were reported with their gross values under asset additions or addition value adjustments from initial consolidation for reasons of simplicity.

2.2 Stocks

Stocks are valued at the lower of acquisition or production cost and net realisable value. In the event of price changes, the mixed prices are changed accordingly. The average method is therefore applied.

The net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to realise the sale, except when goods are produced to order. Financing costs are not capitalised.

2.3 Cash

Cash and cash equivalents are valued at their nominal value.

2.4 Embedded derivatives

FORTEC concludes both sales and purchase contracts with customers and suppliers in currencies that differ from the functional currencies of both parties. The agreed currencies are US dollars. Foreign currency derivatives exist. However, these do not have to be separated if the currency used is the currency that is normally used for these transactions. An analysis of the transactions concerned revealed that there are no transactions subject to separation.

2.5 Discontinued operations

Non-current assets or disposal groups comprising assets and liabilities are classified as held for sale or held for distribution if it is highly probable that they will be realised principally through sale or distribution rather than through continued use.

Tangible and intangible assets are no longer depreciated and any equity-accounted investee is no longer accounted for using the equity method once they are classified as held for sale or held for distribution. FORTEC does not currently have any "discontinued operations".
2.6 Reserves

Reserves are realised in accordance with the principle of the best possible estimate pursuant to IAS 37 at the amounts that the company is expected to call upon. Any necessary discounting has been carried out.

Warranty provisions

FORTEC provides warranties as required by law to remedy defects that existed at the time of sale. Provisions for these warranties are implemented at the time of sale of the underlying products to the customer. Initial recognition is based on past experience. The estimate of costs related to warranties is reviewed annually.

2.7 Taxes

Current tax assets and liabilities are valued at the amount expected to be recovered or paid. The calculation of the amount is based on the tax rates and tax laws that have been enacted or substantively enacted by the reporting date in the countries where the Group operates and generates income subject to taxation.

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

Current taxes relating to items recognised directly in equity capital are not recognised on the income statement but in the equity capital. The Management Board regularly assesses individual tax matters to determine whether there is room for interpretation in light of applicable tax regulations. Tax provisions are applied if a need is identified.

Deferred taxes (tax assets or liabilities) are recognised for all taxable temporary differences except for differences arising on the initial recognition of goodwill that does not affect taxable profit and temporary differences associated with investments in subsidiaries, associated companies or interests in joint arrangements where FORTEC can control the timing of the reversal of the temporary differences and the temporary differences will not reverse in the foreseeable future.

Deferred tax assets on losses carried forwards are recognised to the extent that it is probable that sufficient taxable profit will be available in the future.

Deferred tax assets and liabilities are offset only when FORTEC has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority either against the same taxable entity or against different taxable entities that intend, in each future period in which they are expected to settle or recover significant amounts of deferred tax liabilities or assets, either to settle the current tax liabilities and assets on a net basis or to settle the liabilities simultaneously with the realisation of the assets.

An expected future average income tax burden (corporation tax, solidarity surcharge and profit tax) of between $17 \%$ and $30.2 \%$ depending on the tax regulations of the country of origin was used as a basis (previous year between $17 \%$ and $30.2 \%$ ).

Value added tax
Assets (e.g. inventories) are recognised net of VAT. Receivables and liabilities from deliveries and services are an exception.

2.8 Currency conversion

Currency conversion in the Group

The functional currency of the foreign subsidiaries is the local currency in each case, as the companies conduct their business independently in financial, economic and organisational terms.

Assets and liabilities are therefore converted at the closing rate on the balance sheet date, and costs and income at the average rate for the year (modified closing rate method). Goodwill arising in conjunction with the acquisition of a foreign operation and adjustments to the carrying amounts acquired are treated as assets and liabilities of the foreign operation and are also converted at the closing rate.

Foreign currency transactions and balances
Transactions in foreign currencies are converted into euros at the exchange rate applicable on the date of the transaction. Monetary assets and liabilities in foreign currencies existing at the balance sheet date are converted into euros at the exchange rate applicable on the balance sheet date. Exchange differences are recognised in profit or loss. Non-monetary items that are valued at historical cost in a foreign currency are converted using the exchange rate applicable on the date of the transaction; those that are recognised at fair value in a foreign currency are converted using the exchange rate on the date when the fair value was determined. The accounting system applied to the profit or loss on conversion of non-monetary items valued at fair value is based on the recognition of the profit or loss on the change in fair value of the item.

2.9 Classification rules

The IAS classification rules have been carried over from the previous year, with the exception of the presentation of other financial assets and liabilities, which are now presented separately in accordance with IAS 1.54.

Classification as current and non-current
Assets and liabilities are considered current if they fall due within one year. Receivables and liabilities from deliveries and services, as well as inventories are generally classified as current.

Deferred tax assets or liabilities are generally presented as noncurrent in accordance with IAS 1.56.

The preparation of the consolidated financial statements in compliance with IFRS requires that discretionary decisions are made and estimates used which have an effect on the amount of the book value of the assets and liabilities shown in the balance sheet, the income and expenses and the contingent liabilities. In individual cases, the actual values may differ from the discretionary decisions and estimates made. Changes are recognised in profit or loss as soon as better information is available.

2.10 Revenues from contracts with customers

FORTEC is active in the business fields of data visualisation and power supplies, and primarily provides related product deliveries and services, whereby the products are partly adapted to the customer's requirements.

Sales are recognised when control of the goods is transferred to the customer, irrespective of the payment date. Sales revenue is recognised in the amount of the consideration that FORTEC expects to receive in exchange for the goods. Interest income is recognised on a time-proportionate basis.
FORTEC considers itself to be the principal in all transactions.

This is because FORTEC bears the inventory risk and price risk before the goods are transferred to the customer.

Variable consideration
If a contractual consideration contains a variable component, the Group determines the amount of consideration to which it is entitled in exchange for the transfer of the goods to the customer. The Group grants some customers rebates in the form of bonus credits as soon as the value purchased during the period exceeds a certain sales level. In such contractual constellations, the Group estimates the probability of receiving the variable consideration at the beginning of the contractual relationship and only includes the variable consideration in the transaction price if it is highly probable that it will receive the full consideration. In addition, quantity discounts are granted in the form of price scales, which are, however, only applied to the respective individual order. Sales deductions from discounts, bonuses and rebates are deducted from sales revenue.

Warranty obligations

FORTEC typically provides warranties as required by law to remedy defects that existed at the time of sale. These socalled "assurance-type" warranties are recorded as warranty provisions. Details regarding the accounting method for warranty provisions can be found in section 17 "Reserves". Furthermore, FORTEC offers separate options to extend the statutory warranty as "Service Type" warranties. These warranties are recognised on a pro rata basis over the warranty period and are initially recognised as a contract liability.

Receivables from deliveries and services
FORTEC recognises receivables from deliveries and services when these have an unconditional right to settlement by the customer. The accounting methods for financial assets are explained in subsection 2.16. "Financial instruments - initial recognition and subsequent evaluation."

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

Contract liabilities (other liability)

A contract liability is recognised when the customer makes payment or payment fails due before the Group transfers the related goods or services to the customer. Contract liabilities are recognised as revenues when the Group fulfils its contractual obligations.
Borrowing costs incurred during the financial year are recognised as an expense because the criteria for capitalisation are not met.

2.11 Government grants

Government grants are recognised when there is reasonable assurance that the grants will be received and the entity will comply with the conditions attached to them. Expense-related grants are recognised as income over the period in which the related costs for which they are intended to compensate are incurred.

2.12 Development costs

Development costs of an individual project are only capitalised as an intangible asset if the Group can demonstrate the following:
$\rightarrow$ the technical feasibility of completing the intangible asset so that it will be available for internal use or sale
$\rightarrow$ the intention to complete the intangible asset and the ability and intention to use or sell it
$\rightarrow$ the manner in which the asset will generate future economic benefits
$\rightarrow$ the availability of resources for the purpose of completing the asset
$\rightarrow$ the ability to reliably value the costs attributable to the intangible asset during its development.

The criteria listed are currently not satisfied in relation to FORTEC's developments. As such, development costs are currently all recognised as costs in the period in which they are incurred (personnel expenses and other operating costs).

2.13 Assumptions and estimation uncertainties

The estimation uncertainties primarily relate to the recognition and valuation of assets and liabilities that may involve a significant risk in the coming financial years. These are included in the following items.
$\rightarrow$ Valuation of the allowance based on expected credit losses for receivables from deliveries and services, and contract assets. Key assumptions in determining the weighted average loss rate
$\rightarrow$ Inventories are valued at the lower of acquisition or production cost and net realisable value. To ensure that inventories are valued at the lower of cost and net realisable value, FORTEC determines net realisable values using discounts based on experience and consumption of inventory items. In addition to the standardised approach, FORTEC carries out a case-by-case assessment for inventories. Depreciation is typically realised for lack of marketability due to low consumption and sales volumes in the past.
$\rightarrow$ Recognition of deferred tax assets: Availability of future taxable profits against which deductible temporary differences and tax loss carry forwards can be utilised, as well as applicable tax rates
$\rightarrow$ Impairment test of intangible assets and goodwill: key assumptions underlying the determination of the recoverable amount (value in use). A discounted cash flow method is used to calculate the value in use. The cash flows are derived from the financial plan for the next five years. The recoverable amount depends on the discount rate used in the discounted cash flow method, as well as the expected future cash inflows and the growth rate used for extrapolation purposes. These estimates are most relevant for goodwill.
$\rightarrow$ Recognition and valuation of provisions and contingent assets and liabilities: significant assumptions regarding the probability and extent of the inflow or outflow of benefits. The value of provisions for warranty obligations is determined based on an estimate of the expected costs and the probability of occurrence. In doing so, historical values as well as ongoing processes are reviewed
$\rightarrow$ Acquisition of subsidiaries: Determination of the fair value of the consideration transferred (including contingent consideration) and preliminary determination of the fair values of the identifiable assets acquired and liabilities assumed.
$\rightarrow$ Determination of the term of leases with renewal and termination options where FORTEC is the lesser. FORTEC has entered into several lease agreements that contain renewal and termination options. FORTEC makes judgements when assessing whether there is reasonable certainty that the option to renew or terminate the lease will or will not be exercised. Factors that provide an economic incentive for FORTEC to exercise the renewal or termination option are considered. After the date of provision, the Group re determines the lease term if a significant event or change in circumstances occurs that is within its control and affects whether or not it will exercise the option to renew or terminate the lease (e.g. making a material leasehold improvement or material adjustment to the underlying asset).
$\rightarrow$ Estimation of the incremental borrowing rate: FORTEC cannot readily determine the interest rate underlying the lease. Therefore, FORTEC uses the estimated incremental borrowing rate to value lease liabilities. The incremental borrowing rate is the interest rate that FORTEC would potentially have to pay if FORTEC borrowed the funds for a comparable term with comparable security, rather than leasing.

2.14. Determining fair values for financial and non-financial assets and liabilities.

When determining the fair value of an asset or liability, the Group uses observable market data insofar as is possible. Based on the inputs used in the valuation techniques, fair values are categorised into different levels in the fair value hierarchy.
$\rightarrow$ Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities
$\rightarrow$ Level 2: Valuation inputs other than quoted prices included within Level 1, but observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices)
$\rightarrow$ Level 3: Valuation parameters for assets or liabilities that are not based on observable market data
if the inputs used to measure the fair value of an asset or liability can be categorised into different levels of the fair value hierarchy, the fair value measurement is categorised in its entirety within the level of the fair value hierarchy that corresponds to the lowest level input that is significant to the valuation as a whole. The Group recognises reclassifications between levels of the fair value hierarchy at the end of the reporting period in which the change occurs.

2.15 Impairment of non-financial assets

At the end of the financial year, FORTEC analyses whether there is any indication of impairment of non-financial assets. If any such indication exists, or when annual impairment testing for an asset is required, FORTEC formulates an estimate of the asset's recoverable amount. The recoverable amount of an asset is the higher of an asset's or a cash-generating unit's fair value less costs to sell and its value in use.
if the book value of an asset or a cash-generating unit exceeds its recoverable amount, the asset is impaired and written down to its recoverable amount. To determine the value in use, the expected future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. To the extent possible, recent market transactions are used to determine the fair value less costs to sell.
if no active markets exist, an appropriate valuation model (e.g. discounted cash flow method for goodwill impairment testing) is applied. The Group bases its impairment assessment on the most recent budget and forecast calculations, which are prepared separately for each of the Group's cash-generating units to which individual assets are allocated. Such budget and forecast calculations usually cover one year in the detailed planning and three more years in a forecast calculation. From the fifth year, a long-term growth rate is determined and applied to forecast future cash flows.
Impairment losses of continuing operations are recognised in profit or loss in the cost categories consistent with the function of the impaired asset in the entity. This does not apply to previously revalued assets, provided the increases in value

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

from the revaluation were recognised in other comprehensive income. In these cases, the impairment is also recognised in other comprehensive income up to the amount from a previous revaluation.

The Group assesses the extent to which climate-related risks could significantly influence or affect business operations (e.g. the introduction of regulations to reduce emissions may result in higher production costs). These risks are included as material assumptions if they have a material impact on the measurement of the recoverable amount. The assumptions were taken into account when determining the values in use using cash flow forecasts.

2.16 Financial assets and financial debts.

The following assessments have been made based on the facts and circumstances that existed on the date of initial application:

determination of the business model under which a financial asset is held
determination of certain equity investments held as financial assets, which are not held for trading purposes as FVOC (Fair Value through Other Comprehensive Income).

Financial assets
Initial recognition and evaluation
IFRS 9 provides the following three categories for classification of financial assets:

$\rightarrow$ at amortised cost

$\rightarrow$ at fair value through other comprehensive income (FVOC) (recognised directly in equity) with reclassification of accumulated gains and losses (debt instruments)
$\rightarrow$ at fair value through other comprehensive income (FVOC) (recognised directly in equity) without reclassification of accumulated gains and losses (equity instruments)
$\rightarrow$ at fair value through profit or loss with changes in value recognised in profit or loss (FVIPL) (recognised in profit or loss)

The group determined the classification of its financial assets at initial recognition.

Financial assets are valued at fair value on initial recognition. In the case of investments that are not classified at fair value through profit or loss, transactions that are directly attributable to the acquisition of the assets are also taken into account. The Group's financial assets include cash and short-term deposits, receivables from deliveries and services and other receivables, as well as equity investments.

Subsequent evaluation

The Group makes the subsequent evaluation of financial assets dependent on their classification

Financial assets at FVIPL (Fair Value through Profit and Loss)
The Group has not classified any financial assets in this category.
Financial assets at amortised cost
Receivables from deliveries and services and other financial assets with the exception of equity instruments are classified at amortised cost. Profits and losses are recognised in the profit or loss when the asset is derecognised, modified or its value is impaired.
Loans and receivables are non-derivative financial instruments with fixed or determinable payments that are not quoted in an active market. Following initial recognition, such financial assets are subsequently valued at fair value. Impairment losses are recognised in the statement of comprehensive income under financial expenses.

Financial assets at FVOC (Fair Value through Other Comprehensive Income)
Equity investments
The Group has classified its assets held as equity investments (participations), which the Group intends to hold on a long-term basis for strategic reasons, under this item. In accordance with IFRS 9, the Group has designated these investments as FVOCl on the date of initial application.

Following initial evaluation, equity investments are carried at fair value in subsequent periods. Dividends are recognised as income in the profit or loss unless the dividend is apparently a recovery of part of the cost of the investment. Other net gains or losses are recognised in other comprehensive income and are never reclassified to profit or loss.

The Group does not have any assets that are valued at fair value through profit or loss or that are valued at fair value through other comprehensive income with reclassification of the profits and losses on derecognition.

Impairment of financial assets
On each balance sheet date, the Group assesses whether there is objective evidence that a financial asset or group of financial assets is impaired.

If there is objective evidence of impairment, the amount of the impairment loss is valued as the difference between the asset's carrying amount and the present cash value of estimated future cash flows.

Financial liabilities
IFRS 9 applies to financial assets valued at amortised cost, contract assets and debt instruments valued at FVOCl, but not to equity investments held as financial assets.

IFRS 9 provides the following classifications for financial liabilities:
$\rightarrow$ Financial liabilities valued at fair value through profit or loss
$\rightarrow$ Financial liabilities valued at amortised cost (loans)
The group determined the classification of its financial liabilities at initial recognition.
All financial liabilities are initially recognised at fair value.
The group's financial liabilities include bank loans, liabilities from deliveries and services, lease liabilities and other financial liabilities.

Subsequent evaluation
The Group makes the subsequent evaluation of financial liabilities dependent on their classification.

Financial liabilities valued at fair value through profit or loss
The Group has not classified any financial liabilities as at fair value through profit or loss.

Loans and liabilities
Loans and liabilities are non-derivative financial instruments with fixed or determinable payments that are not quoted in an active market. Following initial recognition, such financial liabilities are subsequently measured at amortised cost less any increase in value.

Debiting
A financial liability is derecognised when the underlying obligation is satisfied, cancelled or expires.

2.17 Leases

At the start of a contract, the Group assesses whether a contract creates or contains a lease. This is the case if the contract gives the right to control the use of an identified asset for a certain period of time in return for a fee.
From 1 July 2019, leases are recognised as a right-of-use asset and the corresponding lease liability at the time the leased asset is available for use by the Group.

The Group as a leesee
The Group recognises and values all leases (other than shortterm leases and leases where the underlying asset is of low value) in accordance with a single model. The Group recognises liabilities to make lease payments and right-of-use payments for the right to use the underlying asset.

Rights of use
The Group recognises rights of use on the date of provision, i.e. the date on which the underlying leased property or item is

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

available for use. Rights-of-use assets are valued at cost less all accumulated depreciation and all accumulated impairment losses, adjusted for any revaluation of the lease liability. The cost of right-of-use assets includes the recognised lease liability, initial direct costs incurred and lease payments made on or before the date of provision, less any lease incentives received.

Leases for premises are generally agreed for fixed periods of 5-10 years and for vehicles for fixed periods of 36-48 months. Rights of use are amortised on a straight-line basis over the shorter of the useful life and the term of the underlying lease contract. If exercising a purchase option is reasonably certain from the Group's perspective, the asset is depreciated over the useful life of the underlying asset.

If ownership of the leased asset is transferred to the Group at the end of the lease term or the cost includes the exercise of a purchase option, depreciation is determined based on the expected useful life of the leased asset. Furthermore, right-ofuse assets are reviewed for impairment.

Leasing liabilities

On the date of provision, the Group recognises the lease liability at the present value of the lease payments to be made over the lease term. Lease payments include fixed payments (including de facto fixed payments) less any lease incentives to be received, variable lease payments linked to an index or (interest) rate, and amounts expected to be paid under residual value guarantees. Furthermore, lease payments also include the exercise price of a purchase option if there is reasonable assurance that the Group will exercise this, and penalties for termination of the lease if the term reflects that the Group will exercise the termination option.

Variable lease payments that are not linked to an index or (interest) rate are applied in the period in which the event or condition giving rise to the payment occurs. The Group determines the lease term based on the basic term of the lease that cannot be cancelled, and including the periods resulting from an option to renew the lease if it is reasonably certain that
this option will be exercised, or the periods resulting from an option to terminate the lease if it is reasonably certain that this option will not be exercised. Significant judgement on the part of management is required when assessing whether exercising these renewal and termination options is reasonably certain (see section 3).

Short-term leases and leases with an underlying asset of low value
FORTEC applies the short-term lease exemptions in the case of leases with a term of less than twelve months from the date of provision and without an option to purchase. Furthermore, such an exemption is also applied to leases that are of low value such as printers or other office equipment. Lease payments for shortterm leases or leases of low value are recognised as an expense on a straight-line basis over the lease term.

2.18 Business combinations

The Group accounts for business combinations using the purchase method in accordance with IFRS 3 as soon as the Group obtains control. The acquisition costs are determined from the consideration transferred in the acquisition, which is measured at fair value on the acquisition date, and the fair value of the noncontrolling interest if less than $100 \%$ of a company is acquired Costs incurred in a business combination are recognised as an expense and reported under other operating expense.

The identifiable net assets acquired are generally measured at fair value. A gain on an acquisition at a price below fair value is recognised immediately in the consolidated statement of comprehensive income. Transaction costs are recognised immediately as an expense.

In the case of Emtron electronic GmbH, the difference was attributable to hidden reserves in fixed assets, creditable corporation tax and goodwill. With ALTRAC AG, hidden reserves in fixed assets and goodwill had to be reported within the framework of the acquisition.

In the case of the acquisition of the Data Display sub-group, the difference was attributable to goodwill and to hidden reserves in stocks and orders on hand. With the acquisition of Display Solutions Ltd, the difference was attributable to goodwill and hidden reserves in orders on hand.

The differences resulting from the capital consolidation insofar as they do not relate to hidden reserves - are shown as goodwill (section 5) in the fixed assets. Goodwill is recognised as an asset and subjected to an annual impairment test. Any impairment is immediately recognised in profit or loss. Any contingent consideration obligation is measured at fair value on the acquisition date.

If the contingent consideration is classified as equity capital, it is not revalued and a settlement is accounted for in the equity capital. Otherwise, other contingent consideration is valued at fair value on each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.

Notes to the consolidated financial statements:

Scope of consolidation

In addition to the parent company, the following subsidiaries are also included in these consolidated financial statements:

Name, registered office of the company	Direct shareholding/voling rights	Previous year
FORTEC Power GmbH (formerly Emtron electronic GmbH) ${ }^{11}$ Riedstadt-Wolfkleihlen, Germany	$100 \%$	$100 \%$
ROTEC technology GmbH i.L. ${ }^{12}$ Muggensturm, Germany	$100 \%$	$100 \%$
AUTRONIC Steuer- und Regeltechnik GmbH ${ }^{13}$ Sechsenheim, Germany	$100 \%$	$100 \%$
FORTEC Integrated GmbH (formerly CRSTEC GmbH Vertriebt von elektronischen Bauelementen) ${ }^{14}$ Germering, Germany	$100 \%$	$100 \%$
Data Display Solution GmbH \& Co. KG Hörselberg-Hoenich, Germany	$100 \%$	$100 \%$
Data Display Solution Verwaltung GmbH ${ }^{15}$ Hörselberg-Hoenich, Germany	$100 \%$	$100 \%$
FORTEC Switzerland AG (formerly AUTRAC AG) 06zerites, Switzerland	$100 \%$	$100 \%$
Fortec United States Corp. (formerly Apollo Display Technologies Corp.) Ronkonkoma, USA	$100 \%$	$100 \%$
FORTEC Technology UK Ltd (formerly Display Technology Ltd.) Huntington, UK	$100 \%$	$100 \%$
Name, registered office of the company	Indirect shareholding/voling rights	Previous year
Fortec Czech Republic s.o.o. (formerly Alfonso’s elektronické stavební skupiny a komponenty, spni. s.o.o.) Diplina, Czech Republic	$100 \%$	$100 \%$
aushang.online GmbH Germering, Germany	$55 \%$	$55 \%$
FORTEC electronic Design \& Solutions Egypt SMLC ${ }^{16}$ Giza, Egypt	$100 \%$	$0 \%$

Notes to the consolidated financial statements:

3. Scope of consolidation

FORTEC AG holds 100 \% of the shares in each of these companies, directly holds the majority of the voting rights and therefore exercises control in accordance with IFRS 10.6.

The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences. The individual financial statements of the material subsidiaries that are significant for the Group have been prepared on the reporting date of the consolidated financial statements and have been audited by independent auditors who have issued unqualified auditor's reports.

Fortec Czech Republic s.o.o., Diplina is 100 \% held by AUTRONIC Steuer- und Regeltechnik GmbH aushang.online GmbH is a subsidiary of FORTEC Integrated GmbH. It holds 55 \% of aushang.online GmbH.

FORTEC electronic Design \& Solutions Egypt SMLC, Giza was founded on 04/02/2024 as a subsidiary of FORTEC Integrated

GmbH. It holds 100 \% of FORTEC electronic Design \& Solutions Egypt SMLC.

Advantec Electronics B.V. has been appraised as an associated company according to IAS since the 2021/2022 financial year, as FORTEC AG is able to exert its influence at shareholder meetings due to its shareholding.
Advantec Electronics B.V. reported equity of EUR 320 thousand on the balance sheet date 31 December 2023 (previous year: EUR 800 thousand). The annual result for the 2023 financial year was EUR 110 thousand (previous year: EUR 108 thousand).

Fortec United States Corp. holds 100 \% of Apollo Ronkonkoma Inc. Apollo Ronkonkoma Inc. is not consolidated due to its minor importance for the Group in accordance with IAS 1.15 and 1.30. This applies to both qualitative factors (such as special risk) and the significance for the net assets, financial position and results of operations.

Notes to the consolidated financial statements:

4. Consolidation principles

In accordance with the statutory regulations, the financial statements of the individual companies are prepared uniformly for inclusion in the consolidated financial statements in accordance with the accounting and valuation methods applicable to FORTEC AG, or adjusted to these principles for consolidation. Similar items have been combined.
Control exists when the Group has exposure, or rights, to variable returns as a result of its involvement with the investee and has the ability to use its power over the investee to influence those returns.

In particular, FORTEC controls an investee when it possesses all of the following characteristics:
$\rightarrow$ power of disposition over the investee (i.e. FORTEC has the ability, based on rights existing at that time, to direct those
activities of the investee that have a significant effect on its returns)
$\rightarrow$ exposure to, or rights to, variable returns arising due to its involvement with the investee
$\rightarrow$ the ability to use its power over the investee to influence the investee's returns

FORTEC generally assumes that a majority of the voting rights results in control. To support this assumption, and when FORTEC does not have a majority of the voting rights or equivalent rights in an investee, FORTEC considers all relevant facts and circumstances in assessing whether FORTEC has power over that investee.
The consolidation of a subsidiary begins on the date on which the group obtains control of the subsidiary, and ends when

Notes to the consolidated financial statements:

Consolidation principles
the Group loses control over the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the reporting period are recognised in the consolidated financial statements from the date the group obtains control of the subsidiary until the date that control ceases.

Profit or loss and any component of other comprehensive income are attributed to ordinary equity holders of the parent company after deducting minority interests. If necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the group.

All inter-company assets and liabilities, equity, income and expenses, and cash flows arising from transactions that take place between group companies are eliminated in full on consolidation.

If the ownership interest in a subsidiary changes without loss of control, the transaction is accounted for as an equity transaction.

If the group loses control of the subsidiary, the related assets (including goodwill, liabilities, non-controlling interests and other equity components are derecognised. Any resulting gain
or loss is taken into consideration in the income statement. Any retained interest is recognised at fair value.

Notes to the individual balance sheet items
In accordance with IAS 1, the consolidated balance sheet is classified into current and non-current assets and liabilities. Assets and liabilities that fall due within one year are considered current. In accordance with IAS 1.56, deferred taxes are reported as non-current assets and liabilities.

Notes to the consolidated financial statements:

5. Acquired goodwill

As in the previous year, the goodwill is to be allocated to the cash-generating units (CGU) identified in the form of the two segments "data visualisation" and "power supplies" for the 2023/2024 financial year (section 31).

The book value of the goodwill for power supplies changes from EUR 2,905 thousand to EUR 2,947 thousand.

The book value of the goodwill for data visualisation changes from EUR 3,543 thousand to EUR 3,556 thousand.

The impariment test for goodwill was carried out per 31 May 2024. In accordance with IAS 36.10 (a), the book value was compared to the recoverable amount in the form of the value in use of the CGU.

The plans are based on past experience and business results as well as the best possible estimate of the future development of individual influencing factors. In our estimation, the currency influences on turnover will be offset in the following years.

Cash-generating unit Power Supplies
The recoverable amount of the cash-generating unit Power Supplies is determined on the basis of a value-in-use calculation using cash flow projections based on financial budgets prepared by the management covering a four-year period. The pre-tax discount rate used for the cash flow projections is 13.18\% (previous year: 14.33\%). Cash flows after the four-year period are extrapolated using a growth rate of $1.5 \%$ (previous year: $1.5 \%$ ). This growth rate corresponds to the expected long-term average growth rate in the power supplies sector. The analyses showed that the value in use is higher than the current carrying amount of the cash-generating unit.

Cash-generating unit Data Visualisation
The recoverable amount of the cash-generating unit Data Visualisation is likewise determined on the basis of a value-inuse calculation using cash flow projections based on financial budgets prepared by the management covering a four-year period. The projected cash flows have been updated based on current business expectations. The pre-tax discount rate used for the projections is $13.25 \%$ (previous year: 14.83\%). Cash flows after the four-year period are extrapolated using a growth rate of $1.5 \%$ (previous year: 1.5 \%). The analyses showed that the value in use is higher than the current carrying amount of the cash-generating unit.

The recoverable amount is essentially determined by the final value (perpetual annuity), which reacts sensitively to changes in the growth rate assumption as well as the discount factor. Within the framework of sensitivity analyses (increase of interest rate by $5 \%$ and decrease of cash flows by $5 \%$ in perpetual annuity), there was no requirement for impairment. Basic assumptions for the calculation of the value in use and sensitivity analysis to assumptions made:

For the following assumptions applied in the calculation of the value in use of the two CGUs Data Visualisation and Power Supplies, the largest estimation uncertainties exist in the following areas:
$\rightarrow$ Gross profit margins
$\rightarrow$ Discount rates
Gross profit margins
Gross profit margins are determined using the average values achieved in the previous financial years before the start of the budget period. In the Data Visualisation division, the value is around $35 \%$. For the cash-generating unit Power Supplies, the value stands at approx. $30 \%$. A growth rate of $4 \%$ to $13 \%$ (previous year: 2-7\%) was included for the sales revenues in the planning period. The gross margin is kept constant within the perpetual annuity and the business cost is increased by $4 \%$ to $13 \%$ (previous year: $2-6 \%)$.

Discount rates
The discount rates represent current market assessments of the risks specific to each cash-generating unit, taking into account the interest effect and the risks specific to the assets for which the estimated future cash flows have not been adjusted. The calculation of the discount rate takes into account the specific circumstances of the Group and its business segments and is based on its weighted average cost of capital (WACC).

Notes to the consolidated financial statements:

Acquired goodwill

The weighted average cost of capital takes into account both debt and equity. The cost of equity is derived from the expected return on equity of the Group's equity investors. The cost of debt is based on the interest-bearing debt for which the Group has to service the debt. The segment-specific risk is included by

The goodwill has developed as follows:

In thousand EUR	2023/2024	2022/2023
Goodwill on 10 July	6,648	6,863
Additions	0	0
Deductions	0	0
Depreciation	0	-560
Exchange differences	55	45
Goodwill on 10 June	6,503	6,648

Notes to the consolidated financial statements:

6. Intangible and tangible assets

The development of fixed assets at historical cost and depreciation for the financial year is shown in the consolidated statement of changes in fixed assets.

Intangible assets (there are no internally generated assets that can be capitalised) and tangible assets are recognised at acquisition cost less scheduled depreciation.

The useful life is as follows:

Software
Vehicles
Tools
Office equipment
Operating and business equipment
Buildings

Only the straight-line depreciation method is applied. Low-value assets are depreciated in the year of acquisition for reasons of simplification.

The amortisation of intangible assets and depreciation of tangible assets are reported in the consolidated statement of comprehensive income under item 6: Depreciation. Depreciation methods, useful lives and residual values are reviewed on each reporting date and adjusted if necessary.

Any gain or loss on the disposal of assets is recognised in the statement of comprehensive income.
The consolidated statement of changes in gross fixed assets includes an additional column for currency conversion differences, which represent exchange rate fluctuations for fixed assets that are not held in euros.

Notes to the consolidated financial statements:

7. Leases

FORTEC has entered into lease agreements for various items of operating and business equipment, motor vehicles and buildings that are used for operational purposes. Lease agreements for motor vehicles generally have terms of between 36 and 48 months. The leases agreements for premises usually have fixed terms between 5 and 10 years. Furthermore, some of the premises leases contain renewal options or ties to a price index for lease adjustments. The Group's obligations under its lease agreements are secured by the lessor's title to the leased assets. FORTEC has also entered into lease agreements
for office equipment of minor value and company bikes. In the case of these lease agreements, FORTEC applies the practical expedients applicable to short-term leases and lease agreements based on an asset of low value. The Group does not act as lessor.

The following tables show the book values of the right-of-use assets and lease liabilities recognised on the balance sheet, as well as the changes and amounts recognised on the P&L account during the reporting period:

Notes to the consolidated financial statements:

7. Leases

a) Amounts recognised on the balance sheet

The following items are recognised on the balance sheet in connection with leases:

Rights of use in thousand EUR	30/06/2024	30/06/2023
Buildings	4,379	4,539
Motor vehicles	318	223
Other	132	86
Total	4,825	4,943

Lease liabilities in thousand EUR	30/06/2024	30/06/2023
Buildings	4,569	4,714
Motor vehicles	309	210
Other	135	85
Total	4,613	4,690

b) Amounts recognised on the consolidated statement of comprehensive income

The consolidated statement of comprehensive income shows the following amounts in connection with leases:

Depreciations on rights of use in thousand EUR	2023/2024	2022/2023
Buildings	973	938
Motor vehicles	152	130
Other	38	31
Total	4,443	4,500

In thousand EUR	2023/2024	2022/2023
Interest expenses (included in the finance costs)	109	108
Expenses related to short-term leases (recognised in cost of goods sold and administrative expenses)	0	0
Expenses related to Leases of low-value assets not included in the short-term leases above (included in administrative expenses)	62	42
Expenses related to variable lease payments not included in lease liabilities (included in administrative expenses)	0	0
Total	174	162

Total lease payments in 2023/2024 amounted to EUR 1,253 thousand (previous year: EUR 1,182 thousand).
The maturity analysis of lease liabilities is presented in section 20.

Notes to the consolidated financial statements:

8. Financial assets balanced according to the equity method

The following table contains summarised financial information on the Group's investment in Advantec Electronics B.V.

The table also shows a reconciliation of the summarised financial information to the carrying amount of the Group's interest in

Advantec. The information for the financial year shown in the table includes the period from 1 January 2022 to 31 December 2023 for the latest available financial statements of Advantec Electronic B.V. The financial year corresponds to the calendar year for Advantec Electronic B.V.

Notes to the consolidated financial statements:
8. Financial assets balanced according to the equity method

In thousand EUR	$\mathbf{3 1 / 1 1 2 / 2 0 2 3}$	$\mathbf{3 1 / 1 2 / 2 0 2 2}$
Current assets	342	312
Non-current assets	3	5
Current liabilities	-26	-17
Non-current liabilities	0	0
Net assets 100\%	320	300
Group shares in the net assets: 36.8\% (previous year: 36.8\%)	117	110
Distribution	-33	-33
Rank value of the shares in the associated company*	$\mathbf{8 6}$	$\mathbf{1 5}$
Sales revenues	1,392	1,134
Result from the operation to be continued	110	108
Group share of the result 36.8\% (previous year: 36.8\%)	40	38

*The participation was not appraised according to at equity in the previous year. The participation was reported in the non-current financial assets. The revenue was reported as income from investments in the profit and loss account.

Notes to the consolidated financial statements:
9. Financial assets

The financial assets break down as follows on 30 June 2024:

In thousand EUR	$\mathbf{3 0 / 0 6 / 2 0 2 4}$	$\mathbf{3 0 / 0 6 / 2 0 2 2}$
Security deposits	23	25
Total non-current financial assets
Other current financial assets	236	167
Total financial assets	312	330

The non-current financial assets concern rental deposits paid for the FORTEC Integrated office in Cologne (EUR 3 thousand), the Fortec USA offices (EUR 25 thousand) and the Data Display Solution in Hörselberg-Hairich (EUR 49 thousand).

Current financial assets include creditors with debt balances (EUR 92 thousand), down payments and advances (EUR 43 thousand), social security receivables (EUR 51 thousand) and other receivables (EUR 50 thousand).

Notes to the consolidated financial statements: Consolidated statement of changes in gross assets

In thousand EUR			Historical acquisition costs						Notes to the consolidated financial statements: Consolidated statement of changes in gross assets
	As at 01/07/2023	Additions 2023/2024	Additions Reputation 2023/2024	Additions to the scope of consolidation 2023/2024	Deductions 2023/2024	Repetitions 2023/2024	Exchange rate differences Transfers 2023/2024	30/06/2024
Intangible fixed assets
Goodwill	13,069	-	-	-	-	-	141	13,190
Business partner relationships	117	-	-	-	-	-	2	118
Software incl. quantity	945	124	-	-	-	-	-	-	1,000
Total intangible fixed assets	14,111	124	-	-	-	-	142	14,377
Tangible assets
Properties	548	-	-	-	-	-	-	548
Buildings incl. adv. payments made	3,448	-	-	-	-	-	-	3,448
Other structures	42	-	-	-	-	-	-	42
External facilities	176	-	-	-	-	-	-	176
Vehicles	125	-	-	-	$-48$	-	-	77
Tools	195	24	-	-	$-34$	-	-	186
Technical plant/ machinery	1,243	58	-	-	-	-	$-10$	1,292
Office equipment/?	653	84	-	-	$-10$	-	1	727
Operating and business equipment	1,554	229	-	-	$-7$	-	$-3$	1,773
Low value assets	152	22	-	-	$-1$	-	-	177
Total tangible assets	8,136	477	-	-	101	-	$-11$	8,642
Rights of use	8,594	980	162	-	$-3,676$	-	20	8,082
Total fixed assets	30,841	1,327	192	-	$-1,770$	-	131	30,981
For reporting only
Do notymy only a	2022/2023	2022/2023	2022/2023	2022/2023	2022/2023	2022/2023	2022/2023	30/06/2023
Intangible assets	14,005	175	-	-	$-202$	4	128	14,111
Tangible assets	7,611	341	-	-	$-113$	$-4$	1	8,136
Rights of use	8,224	180	389	-	$-165$	-	$-38$	8,594
Total fixed assets	82,141	701	389	-	$-480$	-	91	30,841

Notes to the consolidated financial statements: Consolidated statement of changes in gross assets

	Depreciation				Book values
	As at 01/07/2023	Additions 2023/2024	Additions to the scope of consolidation 2023/2024	Deductions 2023/2024	Exchange rate differences Transfers 2023/2024	As at 30/06/2024	As at 30/06/2024


6,602	-	-	-	-	85	6,687	6,448	6,503
69	15	-	-	1	85	47	33
680	92	-	-	-	$-1$	771	263	298
7,351	106	-	-	-	86	7,543	6,760	6,834

-	-	-	-	-	-	-	548	548
552	138	-	-	-	690	2,896	2,759
8	2	-	-	-	10	34	31
72	18	-	-	-	90	104	86
125	-	-	$-48$	-	77	-	-
185	11	-	$-34$	-	162	11	24
977	96	-	-	$-8$	1,074	256	217
519	32	-	$-8$	1	543	133	184
1,009	152	-	$-7$	$-3$	1,141	545	632
723	21	-	-	-	172	-	-
3,000	436	-	$-38$	$-10$	3,981	4,536	4,481
2,749	1,163	-	$-1,067$	8	3,032	4,865	4,830
14,500	1,738	-	$-1,785$	83	14,108	16,532	16,144
01/07/2022	2023/2023	2022/2023	2022/2023	2022/2023	30/06/2023	01/07/2022	30/06/2023
6,829	634	-	$-197$	85	7,351	7,176	6,760
3,261	430	-	$-113$	2	3,600	4,650	4,536
2,844	1,100	-	$-165$	$-30$	3,749	5,380	4,845
12,934	2,184	-	$-474$	56	14,699	17,207	16,142

Notes to the consolidated financial statements:

Inventories

The stocks broke down as follows as at 30 June 2024:

In thousand EUR	$\mathbf{3 0 / 0 6 / 2 0 2 4}$	$\mathbf{3 0 / 0 6 / 2 0 2 3}$
Goods/raw materials, auxiliary	19,285	29,198
and operating substances
Finished/unfinished goods	2,702	2,929

Subs
Advarice payments made	303
Total	22,290

Goods/raw materials, auxiliary and operating substances are recognised at acquisition cost, taking into account ancillary acquisition costs. Weighted average prices are used as a basis for this. Insofar as necessary, depreciation to the lower fair value - which corresponds to the net realisable value - has taken place. All recognisable risks have been taken into account by means of appropriate deductions.
Finished/unfinished goods are recognised at production cost, whereby directly attributable costs (such as production wages and material costs) as well as fixed and variable production overheads (production and material overheads) are taken into account. Costs in accordance with IAS 2.16 are not included. For information on impairment, refer to section 24 "Cost of materials".

Goods/raw materials, auxiliary and operating substances are recognised at acquisition cost, taking into account ancillary acquisition costs. Weighted average prices are used as a basis for this. Insofar as necessary, depreciation to the lower fair value - which corresponds to the net realisable value - has taken place. All recognisable risks have been taken into account by means of appropriate deductions.

Finished/unfinished goods are recognised at production cost, whereby directly attributable costs (such as production wages and material costs) as well as fixed and variable production overheads (production and material overheads) are taken into account. Costs in accordance with IAS 2.16 are not included. For information on impairment, refer to section 24 "Cost of materials".

Notes to the consolidated financial statements:

Receivables from deliveries and services, tax refund entitlements and other current assets

Receivables from deliveries and services, tax refund claims and other assets broke down as follows as at 30 June 2024:

In thousand EUR	$\mathbf{3 0 / 0 6 / 2 0 2 4}$	$\mathbf{3 0 / 0 6 / 2 0 2 3}$
Receivables from deliveries and services	14,795	11,408
Tax refund entitlements	2,100	1,829
Other assets	351	411
Total receivables	$\mathbf{1 1 , 1 4 4}$	$\mathbf{1 1 , 6 4 4}$

The receivables from deliveries and services and other assets reported here have a remaining term of less than one year. Details regarding the default risk and value adjustments can be found in section 16.
Other assets in the Group primarily consist of prepaid expenses in the amount of EUR 351 thousand (previous year: EUR 411 thousand).

Receivables from deliveries and services and loan receivables represent financial instruments according to IFRS 9 and are classified in the category "Amortised costs", because they are held in a business model to collect cash flows. They are measured at amortised cost.

Notes to the consolidated financial statements:

Cash and cash equivalents

The cash and cash equivalents broke down as follows as at 30 June 2024:

In thousand EUR	$\mathbf{3 0 / 0 6 / 2 0 2 4}$	$\mathbf{3 0 / 0 6 / 2 0 2 3}$
Cash in hand
Bank balances	22,252	13,240
Cash	$\mathbf{1 1 , 2 4 0}$	$\mathbf{1 1 , 2 4 0}$

Bank balances denominated in US dollars, Swiss francs, British pounds and Czech koruna were valued in the consolidated financial statements at the mean exchange rate on the balance sheet date. No bank balances were held in other foreign currencies. The change in cash and cash equivalents corresponds to the explanations given in section 33. The reported value of cash and cash equivalents corresponds to the
"Amortised costs".

Notes to the consolidated financial statements:

13. Subscribed capital

The share capital of FORTEC Elektronik AG on the balance sheet date was EUR 3,250,436 (previous year: EUR 3,250,436). The company's shares are divided into 3,250,436 no -par value shares (security identification number 577410/ISIN DE 0005774103) with a notional value of EUR 1.00 .

The AGM of 15 February 2023 authorised the Management Board, with the approval of the Supervisory Board, to increase the company's share capital by up to EUR 1,625,218.00 by issuing up to 1,625,218 no-par value bearer shares on one or more occasions against cash and/or non-cash contributions by 14 February 2028 (Authorised Capital I).

The Management Board was also authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription
rights in the following cases: (i) for fractional amounts; (ii) for capital increases against contributions in kind; (iii) in the case of cash contributions up to an amount not exceeding 10 percent of the share capital existing at the time this authorisation becomes effective or - if this value is lower - at the time this authorisation is exercised, provided that the issue price of the shares is not significantly lower than the stock exchange price of the already listed shares of the company at the time the issue price is finally determined.

The authorised capital on 15 February 2023 (Authorised Capital 2023/I) amounts to EUR 1,625,218.00 on the balance sheet date.

Notes to the consolidated financial statements:

14. Equity capital

The equity in the Group attributable to the owners of the parent company developed in the reporting year as follows:

In thousand EUR	The interests attributable to the owners of the parent company				Non- controlling interests	Total
	Subscribed capital	Capital reserve	Currency conversion differences	Other reserves/ consolidated annual surplus
As at 01/07/2022	3,250	14,481	1,819	83,297	10	49,897
Consolidated annual surplus				7,555	$-3$	7,551
Other earnings			$-127$		-	$-127$
Dividend payments				$-2,275$	-	$-2,275$
As at 01/07/2023	3,250	14,481	1,692	35,577	6	55,005
Other earnings			216		-	216
Dividend payments				$-2,763$	-	$-2,763$
Consolidated annual surplus				5,315	$-11$	5,303
As at 30/06/2024	3,250	14,481	1,907	38,128	$-9$	57,762

The capital reserve developed from 1 July 1998 in the amount of EUR 256 thousand plus a premium in 1999 of EUR 5,233 thousand less conversions of the capital reserve and increases due to exercising conditional capital to EUR 8,689 thousand. During the 2018/2019 financial year, the capital reserve increased by EUR 5,792 thousand to EUR 14,481 thousand due to the issue of new shares (share premium).

The conversion differences (DC) include all foreign currency differences due to the conversion of financial statements of
foreign subsidiaries as well as conversion differences from capital consolidation.

Other reserves show accumulated profits.
The company has consistently pursued the strict principle of building up its business on the basis of a high level of equity financing and aims for balance sheet equity ratios of $\leftrightarrow 50 \%$ after dividend distributions. As in previous years, hybrid forms of equity are not included in the definition of equity.

Notes to the consolidated financial statements:

15. Financial instruments - fair value

The following table shows the book values and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the book value is a reasonable approximation of fair value.

The financial instruments relate in detail to the following financial assets in accordance with IFRS 7.6 ff .

30/06/2024 in thousand EUR	Book value			Fair value
	Not measured at fair value	Measured at fair value	Total	Level 1	Level 2	Level 3
Non-current financial assets	77		77	-	-	-
Previous year	75		77	-	-	-
Receivables from deliveries and services	14,795		14,795	-	-	-
Previous year	11,408		11,408	-	-	-
Current financial assets	236		236	-	-	-
Previous year	143		143	-	-	-
Cash and cash equivalents	22,259		22,259	-	-	-
Previous year	13,246		13,246	-	-	-
Total	37,367		37,367	-	-	-
Previous year	35,873		35,873	-	-	-

The book value is compared with the fair value in accordance with IFRS 7.8:

In thousand EUR	Valuation category IFRS 9	Book value 30/06/2024	Fair value 30/06/2024
Non-current receivables Previous year	Amortised costs	77	77
		75	75
Receivables from deliveries and services Previous year	Amortised costs	14,795	14,795
		11,408	11,408
Other financial assets Previous year	Amortised costs	236	236
		145	145
Cash and cash equivalents Previous year	Amortised costs	22,259	22,259
		13,246	13,246
Total		$\mathbf{3 7 , 3 6 7}$	$\mathbf{3 7 , 3 6 7}$
Previous year		$\mathbf{3 7 , 3 6 7}$	$\mathbf{3 7 , 3 6 7}$

There were no reclassifications in the financial year.

The financial liabilities break down as follows:

30/06/2024 In thousand EUR	Book value			Fair value
	Not measured at fair value	Measured at fair value	Total	Level 1	Level 2	Level 3
Liabilities to credit institutes Previous year	$\begin{aligned} & 1,278 \ & 1,611 \end{aligned}$	-	$\begin{aligned} & 1,278 \ & 1,611 \end{aligned}$	-	$\begin{aligned} & 1,236 \ & 1,510 \end{aligned}$	-
Receivables from deliveries and services Previous year	$\begin{aligned} & 6,321 \ & 6,508 \end{aligned}$	-	$\begin{aligned} & 6,321 \ & 6,508 \end{aligned}$	-	-	-
Other financial liabilities Previous year	$\begin{aligned} & 1,362 \ & 1,630 \end{aligned}$	-	$\begin{aligned} & 1,362 \ & 1,630 \end{aligned}$	-	-	-
Total Previous year	$\begin{aligned} & 8,961 \ & 8,708 \end{aligned}$	-	$\begin{aligned} & 8,961 \ & 8,708 \end{aligned}$	-	$\begin{aligned} & 1,236 \ & 1,510 \end{aligned}$	-

FORTEC has determined that the fair values of cash and short-term deposits, receivables from deliveries and services, liabilities from deliveries and services, bank overdrafts and other current financial liabilities are close to their book values primarily due to the short maturities of these instruments. Furthermore, the lease liabilities are measured in accordance with IFRS 16.

The following methods and assumptions are used to determine the fair values:
The fair values of FORTEC's interest-bearing loans are determined using the discounted cash flow method. This is based on a discount rate that reflects FORTEC's borrowing rate at the end of the reporting period. The own non-performance risk was classified as low on 30 (une 2024.

The comparison of book value and fair value does not lead to any changes:

In thousand EUR	Valuation category IFRS 9	Book value 30/06/2024	Fair value 30/06/2024
Liabilities to credit institutes Previous year	At amortised cost	1,278	1,236
		1,611	1,510
Liabilities from deliveries and services Previous year	At amortised cost	6,321	6,321
		6,508	6,508
Other financial liabilities Previous year	At amortised cost	1,362	1,362
		1,630	1,630
Total Previous year		$\mathbf{6 , 9 6 1}$	$\mathbf{6 , 9 1 5}$

The liabilities due were settled at the time of balance sheet preparation, within the payment period granted (IFRS 7.39). The effects on the consolidated statement of comprehensive income in accordance with IFRS 7.20 are as follows :

In thousand EUR	Attribution 2023/2024	Value adjustments 2023/2024	Depreciation 2023/2024
Financial assets Previous year	0	0	0
Non-current receivables Previous year	0	0	0
Receivables from deliveries and services Previous year	0	0	0
Other financial assets Previous year	0	0	0
Cash and cash equivalents Previous year	0	0	0
Total Previous year	0	0	0

Notes to the consolidated financial statements: 16. Objectives and methods of risk management of financial instruments

The Group's most important financial liabilities include liabilities from deliveries and services, loans, lease liabilities and other liabilities. The main purpose of these financial liabilities is to finance FORTEC's short-term operations. The Group's most significant financial assets are receivables from deliveries and services, cash and short-term deposits resulting directly from operating activities. FORTEC has invested to a very limited extent in equity instruments. During the course of its operating activities, FORTEC is exposed to various financial risks, including market risk, default risk and liquidity risk. The management of these risks is the responsibility of the Management Board. The Group manages the risks through a credit check, fixed-interest loans and forwardlooking liquidity planning. The Group deliberately avoids the use of derivative financial instruments.

Default risk
Default risk is the risk of financial loss if a customer or a contracting party to a financial instrument fails to meet their contractual obligations. A default risk generally arises from the Group's receivables due to deliveries and services, as well as debt securities held as financial investments.

As a general rule, the Group checks the creditworthiness of the customer relationship with a trade credit insurer for all new customers and otherwise on an annual basis. As at 30 June 2024, 88% were secured by letters of credit and other forms of credit protection. Uninsured relationships are individually assessed and entered into through bank guarantees, other hedges or advance payment. Accounts receivable are constantly monitored and known risks are reflected in value adjustments. Further to this, no significant default risks exist from current business activities.

For receivables from deliveries and services, the Group determines the expected credit losses (ECL) based on the age distribution of the outstanding receivables. It is assumed that receivables that are overdue by more than 90 days and for which no specific bad debt allowance has yet been created for a specific reason will default. The expected credit losses as at 30 June 2024 amount to EUR 62 thousand (previous year: EUR 8 thousand).

	Receivables from deliveries and services

		Overdue in days
Figures In thousand EUR	Not overdue	1 to 30 days overdue	31 to 60 days overdue	61 to 90 days overdue	$>90$ days overdue	Total
Expected credit default rate	$0.01 \%$	$0.025 \%$	$0.05 \%$	$1.10 \%$	$8.00 \%$
Total gross book value previous year	12,115	1,371	483	254	717	14,951
Expected credit loss	7	0	0	0	37	45

In thousand EUR	2023/2024	2022/2023
Value adjustments on 01/07.	89	145
Additions	85	18
Consumption/release	$-12$	$-78$
Value adjustments on 30.06 .	162	850

The receivables from deliveries and services and other assets reported here have a remaining form of less than one yearw.

Cash and deposits with banks
The risk of default on balances with banks and financial institutions is managed in accordance with the Group's guidelines. Cluster risks are taken into account by spreading the investments over several banks.

Liquidity risk

The liquidity risk is the risk that the Group may not be able to meet its financial obligations as contractually required by delivering cash or other financial assets. The purpose of managing the Group's liquidity is to ensure, insofar as possible, that sufficient cash is always available to meet payment obligations as they fall due, under both normal and strained conditions, without incurring unacceptable losses or damaging the Group's reputation.

As at 30 June 2024, further impairments exist of EUR 94 thousand (previous year: EUR 81 thousand) for receivables from deliveries and services, which did not affect the calculated default rate.

Risk concentration
A mix of overdraft facilities, bank loans and finance leases is used to provide the Group with sufficient liquidity. The basis for the decision regarding the financing strategy is Group-wide cash management and corresponding planning of the financial requirements.

In accordance with IFRS 7.39 a, liquidity risk exists in full for liabilities due to deliveries and services as on the balance sheet date. At the time the balance sheet was prepared, the liabilities from deliveries and services had already been repaid and the liquidity risk no longer existed.

Both the default risk and the liquidity risk can be a burden on the operating business; however, they cannot become a threat to the existence of the company.

The contractual residual terms of the financial liabilities on the balance sheet date are set out in thousand EUR in the following, whereby the figures are based on the contractual, undiscounted payments.

Notes to the consolidated financial statements: 16. Objectives and methods of risk management of financial instruments

30/06/2024 In thousand EUR	Up to 12 months	1 to 5 years	$>5$ years	Total
Bank loans	348	962	-	1,310
Previous year	352	1,310	-	1,662
Liabilities from deliveries and services	6,321	-	-	6,321
Previous year	6,508	-	-	6,508
Leasing liabilities	1,137	3,318	866	5,320
Previous year	1,148	2,824	1,398	5,370
Other financial liabilities	1,275	87	-	1,362
Previous year	1,534	96	-	1,630
Total	3,021	4,787	803	15,772
Previous year	5,062	4,230	366	15,772

Liabilities with a remaining term of more than 5 years relate exclusively to liabilities from lease agreements. Liabilities with a term of between 1 and 5 years relate to liabilities to banks, liabilities from lease agreements, contractual liabilities, as well as liabilities from a finance purchase. All other liabilities have a remaining term of less than 1 year.

Foreign currency risk
The Group is exposed to foreign currency risks insofar as the quotations of currencies in which sales and purchase transactions as well as receivables and credit transactions are carried out do not match the functional currency of the Group companies. A significant proportion of the Group's business is conducted in US dollars because use of the US dollar is common in the electronics sector. Further to this, business is also conducted in GBP, DHF, C2X and JPY. The existing exchange rate risks in business transactions when transactions are conducted in a currency other than the functional currency of the national company can usually be covered by sale or purchase transactions performed in the same currency.

Sensitivity analysis to changes in exchange rates
The following illustrations show the sensitivity to a possible change in the exchange rate of the US dollar, the British pound, the Swiss franc and the Czech koruna. All other variables remain constant. The impact on the Group's profit or loss before tax is due to changes in the fair value of monetary assets and liabilities.

30/06/2024 Effects in EUR	Profit or loss		Equity capital after tax
	Strengthening of the foreign currency against the EUR	Weakening of the foreign currency against the EUR	Strengthening of the foreign currency against the EUR	Weakening of the foreign currency against the EUR
US$	1015 movement)	156	$(123)$	136
GBP (1015 movement)	130	25	050	27
DHF (1015 movement)	4	$(3)$	1	$(4)$
C2X (1015 movement)	1	1	2	1

Notes to the consolidated financial statements: 17. Reserves

The Group reserves broke down as follows as at 30 June 2024:

Reserves in thousand EUR	Warranty provisions	Other provisions	Total
30/07/2023	720	130	890
Additions	720	32	258
Utilisation	226	$-2$	$-338$
Release	$-356$	$-5$	$-66$
Currency conversion
30/08/2023	532	130	881
- of which current	282	5	287
- of which non-current	250	150	400

Other reserves were realised in accordance with IAS 37, taking into account all recognisable obligations at their probable settlement value. Required discounts were discounted using a pre-tax-interest rate that reflects current market expectations. Non-current reserves include the amounts set aside (years 2-10) for the legal obligation to keep business records and for obligations arising from warranties.
The remaining reserves are current reserves (term: <1 year). Reimbursement claims are not specified.

Notes to the consolidated financial statements: 18. Liabilities

The liabilities broke down as follows as at 30 June 2024:

In thousand EUR	30/06/2024	30/06/2023
Liabilities to credit institutes	1,278	1,611
Liabilities from deliveries and services	6,321	6,508
Leasing liabilities	5,014	5,009
Tax liabilities	4,408	2,740
Other financial liabilities	1,362	1,630
Other liabilities	1,610	2,488
Total liabilities	30,083	19,987

The liabilities are valued at amortised cost.
The bank loans were valued at EUR 1,278 thousand as at 30 June (previous year: EUR 1,611 thousand).

				30/06/2024		30/06/2023
In thousand EUR	Currency	Nominal interest rate ( $N$ )	Maturity year	Nominal value	Book value	Nominal value	Book value
Secured bank loans		1.29\%	2028	1,278	1,278	1,611	1,611
Interest-taxang financial Iune liabilities				1,611	1,611	2,361	2,361

The tax liabilities relate to taxes for the current year in the amount of EUR 2,298 thousand (previous year: EUR 1,954 thousand), of which income tax EUR 1,094 thousand (previous year: EUR 1,533 thousand), of which VAT EUR 1,054 thousand (previous year: EUR 262 thousand), wage tax EUR 151 thousand (previous year: EUR 153 thousand) and property tax EUR 0 thousand (previous year: EUR 6 thousand). EUR 1,966 thousand (previous year: EUR 772 thousand) relate to income tax back payments for previous years and correspond to the tax returns submitted.

Other liabilities include advance payments received in the amount of EUR 796 thousand (previous year: EUR 1,596 thousand), accrued liabilities for obligations in kind in the amount of EUR 722 thousand (previous year: EUR 642 thousand) as well as obligations to employees such as holiday days not taken in the
amount of EUR 516 thousand (previous year: EUR 530 thousand). Furthermore, the other liabilities of EUR 94 thousand (previous year: EUR 170 thousand) include contractual liabilities for extended warranties. Thereof, EUR 24 thousand (previous year: EUR 71 thousand) are non-current and EUR 70 thousand (previous year: EUR 99 thousand) are current.

The other financial liabilities include accrued liabilities for payments to be made in the amount of EUR 1,362 thousand (previous year: EUR 1,630 thousand). This includes obligations to employees of EUR 915 thousand (previous year: EUR 1,218 thousand). Of this amount, non-current liabilities owing to personnel account for EUR 87 thousand (previous year: EUR 96 thousand).

Notes to the consolidated financial statements: 19. Deferred taxes

Deferred taxes are accrued, according to the "temporary differences concept" of IAS 12, on temporary accounting and valuation differences between the valuations in the tax balance sheet and the corresponding valuations in the balance sheet according to IFRS. Deferred taxes have been calculated using the tax rates expected to apply at the time of realisation, based on the legal regulations valid on the balance sheet date.

For the purpose of forming deferred taxes, the average income tax burden (corporation tax, solidarity surcharge and tax on profit)
was estimated at $30 \%$ (previous year: $30 \%$ ). The calculation of deferred taxes for profits of FORTEC Switzerland AG (Switzerland) was based on an income tax burden of $17 \%$ (previous year: $17 \%$ ). The calculation of deferred taxes for profits of FORTEC Technology UK Ltd (UK) was based on an income tax burden of $25 \%$ (previous year: $20.5 \%$ ). The calculation of deferred taxes for profits of FORTEC United States Corp. (US) was based on an income tax burden of $21.3 \%$ (previous year: $27.5 \%$ ).
Deferred taxes due to valuation differences arose for the following balance sheet items:

In thousand EUR	30/06/2024		30/06/2023
	Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Intangible assets	0	0	0	0
From rights of use	61	0	48	1
Tangible assets (incl. low-value assets)	6	112	17	112
Financial assets	72	0	71	0
Inventories	162	137	168	311
Receivables	17	20	5	31
Losses carried forwards	26	0	0	0
Resanals	48	74	55	86
Liabilities	31	1	50	0
	44\%	36\%	41\%	56\%

As at 30 June 2024, profit tax loss carry-forwards not yet utilised exist of EUR 634 (thousand (previous year: EUR 2,471 thousand). For tax-deductible goodwill (outside basis differences), for which

Notes to the consolidated financial statements:

Other financial liabilities

On the balance sheet date, liabilities existed from operating lease agreements that were not recognised or not to be recognised as lease liabilities in accordance with IFRS 16 due to the simplification option for low-value leases.

In thousand EUR	30/06/2024	30/06/2023
up to 1 year	71	102
1 to 5 years	54	115
more than 5 years	-	-
Total	218	270

Notes to the statement of comprehensive income
All information relates to continuing operations. There are no discontinued operations in the current financial year or in the previous year.

The Group classifies its sales revenues according to the two segments: data visualisation and power supplies. While the power supplies segment offers the entire product range for power supplies and DC/DC converters, the data visualisation sales comprise the product areas of Display Technology and Embedded Computer Technology. No turnover greater than $10 \%$ is realised with any customer.

Revenues are recognised less sales deductions and price reductions such as rebates, discounts, bonuses and returned goods.

The breakdown by geographical segments before consolidation results in the following:

Group revenues in thousand EUR for 2023/2024	Data visualisation	Power supplies	Unassigned operations	Total
Domestic Internal group revenues	$\begin{gathered} 29,040 \ -261 \end{gathered}$	$\begin{gathered} 27,256 \ -91 \end{gathered}$	$\begin{gathered} 3,962 \ -3,959 \end{gathered}$	$\begin{gathered} 60,256 \ -4,310 \end{gathered}$
	28,728	27,163	4	25,940
Foreign Internal group revenues	$\begin{gathered} 30,232 \ -2,297 \end{gathered}$	$\begin{gathered} 12,578 \ -1,930 \end{gathered}$	$\begin{gathered} 387 \ -387 \end{gathered}$	$\begin{gathered} 43,196 \ -4,613 \end{gathered}$
	27,935	10,648	0	38,583
Total Internal group revenues	$\begin{gathered} 59,271 \ -2,558 \end{gathered}$	$\begin{gathered} 39,832 \ -2,020 \end{gathered}$	$\begin{gathered} 4,349 \ -4,345 \end{gathered}$	$\begin{gathered} 103,452 \ -8,923 \end{gathered}$
	56,714	37,811	4	54,529
of which, revenue from balances that were contained in the contractual liabilities at the start of the period	51	0	0	51
Group revenues in thousand EUR for 2022/2023	Data visualisation	Power supplies	Unassigned operations	Total
Domestic Internal group revenues	$\begin{gathered} 31,708 \ -208 \end{gathered}$	$\begin{gathered} 24,761 \ -62 \end{gathered}$	$\begin{gathered} 1,871 \ -1,871 \end{gathered}$	$\begin{gathered} 58,391 \ -2,292 \end{gathered}$
	31,437	24,676	0	58,008
Foreign Internal group revenues	$\begin{gathered} 40,631 \ -4,054 \end{gathered}$	$\begin{gathered} 15,517 \ -2,340 \end{gathered}$	$\begin{gathered} 136 \ -136 \end{gathered}$	$\begin{gathered} 56,284 \ -6,530 \end{gathered}$
	36,577	13,177	0	49,754
Total Internal group revenues	$\begin{gathered} 72,389 \ -392 \end{gathered}$	$\begin{gathered} 40,278 \ -2,422 \end{gathered}$	$\begin{gathered} 2,009 \ -2,008 \end{gathered}$	$\begin{gathered} 114,675 \ -8,821 \end{gathered}$
	67,998	37,856	0	105,854
of which, revenue from balances that were contained in the contractual liabilities at the start of the period	113	0	0	113

The sales revenues relate in part to contract manufacturing, in which goods are manufactured according to the customer's specifications and delivered to the customer. Further to this, the Group acts purely as a dealer of equipment.

Notes to the consolidated financial statements:

22. Change in inventories of unfinished/finished goods

This is the change in inventories of unfinished/finished goods from the data visualisation and power supply segments. The decline is due to the increased consumption and sales of finished goods, as well as the strained situation on the procurement market.

Notes to the consolidated financial statements:

23. Other operating income

Other operating income breaks down as follows:

In thousand EUR	2023/2024	2022/2023
Income from the disposal of assets	16	22
Reduction I/AI/ECL	2	33
Release of reserves	83	54
Benefits in kind	86	103
Income from exchange differences	831	1,062
Revenue from financial asset attribution	7	6
Other ordinary income	170	330
Other operating income	1,106	2,225

The other ordinary income includes income from compensation of EUR 71 thousand (previous year EUR 51 thousand).

Notes to the consolidated financial statements:

24. Cost of materials

The cost of materials includes outlay for the purchase of materials/goods and services for contract manufacturing. The cost of materials amounts to EUR 61,739 thousand (previous year: EUR 71,239 thousand).

Impairment of inventories, which are recognised as an expense in the period, amounts to EUR 384 thousand (previous year: EUR 482 thousand).

Notes to the consolidated financial statements:
25. Personnel expenses

Personnel expenses break down as follows:

In thousand EUR	2023/2024	2022/2023
Wages and salaries	14,069	14,079
Social security payments and pension costs	7,407	7,272
Personal expenses	10,380	10,413

Notes to the consolidated financial statements:
26. Depreciation

Depreciation for the financial year breaks down as follows:

In thousand EUR	2023/2024	2022/2023
Intangible assets	106	74
Tangible assets and low-value assets	470	449
Goodwill COJ Power Supplies	0	560
Rights of use	1,163	1,100
Depreciation	3,729	3,185

Notes to the consolidated financial statements:
27. Other operating costs

Other operating expenses break down as follows:

In thousand EUR	2023/2024	2022/2023
IT costs	1,542	719
Proposed services, interim management, consultation	1,044	974
Costs of delivery of goods	852	867
Currency losses	818	1,928
Advertising and travel costs	804	769
Room costs, ancillary room costs and cleaning	688	578
Insurance cover and premiums	551	487
Personnel acquisition, training and other ancillary personnel costs	359	387
Financial statement and auditing costs	276	221
Communication costs	220	142
Vehicle costs	175	161
Other operating costs	1,061	1,263
Other operating costs	8,581	8,501

Notes to the consolidated financial statements:
28. Research and development costs

Research and development costs are included in the Group income statement at EUR 2,570 thousand in the financial year (previous year: EUR 2,370 thousand). The expenses are primarily included in the personnel expenses and other operating expenses.

Notes to the consolidated financial statements: 29. Interest result

The interest result consists of the balance of interest income in the amount of EUR 149 thousand (previous year: EUR 6 thousand), and interest expenses in the amount of EUR 134 thousand (previous year: EUR 144 thousand). The interest includes EUR 109 thousand (previous year: EUR 108 thousand) in interest from IFRS 16.

Notes to the consolidated financial statements:

Taxes on income and earnings

Corporation tax, solidarity surcharge and trade tax as well as income taxes for Switzerland, Great Britain and the USA are reported in the consolidated financial statements at the tax rates applicable on the balance sheet date.

The Group income tax burden amounts to $25.4 \%$ (previous year: $28.6 \%$ ) and includes corporation tax and trade tax charges.

The income taxes are broken down according to origin as set out in the following (in thousand EUR).

In thousand EUR	2023/2024	2022/2023
Taxes paid or owing - Germany. - Abroad (CH, GB, USA, CZ)	$\begin{aligned} & 1,570 \ & 462 \end{aligned}$	$\begin{aligned} & 2,429 \ & 386 \end{aligned}$
	2,032	2,815
Deferred taxes. - From strong differences/consolidation - From losses carried forwards	$\begin{gathered} 2 \ -231 \end{gathered}$	$\begin{gathered} 241 \ -32 \end{gathered}$

The actual tax expense in the FORTEC Group of EUR 1,803 thousand (previous year: EUR 3,023 thousand) is EUR 179 thousand (previous year: EUR 174 thousand) below the theoretical tax expense resulting from applying an expected Group tax rate of $29.30 \%$ to the pre-tax Group result.

Reconciliation of the theoretically expected tax expense to the actual tax expense reported in the consolidated statement of comprehensive income is shown below (in thousand EUR).

In thousand EUR	2023/2024	2022/2023
Result before income taxes	7,106	10,575
Nominal income tax rate incl. trade tax	29.30\%	$30.24 \%$
Forecast income tax expense with uni. tax burden	2,082	3,198
Increase/decrease in income tax burden due to: - Lose tax burden abroad - Use of unrecognised losses carried forwards - Non-deductible operating expenses - Group-rotional income (dividends) - Tax effects from goodwill amortisation for tax purposes - Tax payments for previous years - Losses in the current year, for which no deferred tax assets were acquired - Goodwill amortisation in the group - Other deviations	$\begin{gathered} -27 \ -302 \ 15 \ 35 \ 0 \ 38 \ 0 \ 0 \ -38 \end{gathered}$	$\begin{gathered} -347 \ -347 \ 226 \ -7 \ 82 \ -217 \ 53 \ 0 \ 169 \ 0 \end{gathered}$

In the power supplies segment, FORTEC covers the complete product range of power supplies and OC/DC converters, from standard products from the Far East, through series devices modified in Germany, right to customer-specific developments for niche markets. The operating results of the segments are each monitored by the Management Board, the responsible company body, to facilitate making decisions about the allocation of resources and to determine the profitability of the units.

The development of the segments is assessed on the basis of the result and evaluated in accordance with the result in the consolidated financial statements. The segment reporting was adjusted to the revised summary of the operations, designed to control the company. The previous year is shown in comparable figures.

Notes to the consolidated financial statements:

31. Segment reporting

The Group is active in the areas of data visualisation and power supplies and has defined these areas as business segments for the purpose of internal management, as they are largely autonomous and managed separately within the Group. The customer and cost structures lead to the following breakdown in accordance with IFRS 8:

The "data visualisation" business segment combines two of the product areas "Display Technology" and "Embedded Computer Technology" into one data visualisation system. With this, FORTEC offers complex solutions for an innovative market. The fields of competence range from the delivery of system-tested standard kits, to support services in the area of hardware and software for the sale of standard devices, e.g. for professional display systems for industry or digital signage as well as complete monitors. Furthermore, the FORTEC portfolio also includes customer-specific product solutions with access to TFT controller and drive solutions developed in-house, as well as the latest generation of optical bonding technology.

Notes to the consolidated financial statements:

31. Segment reporting

2023/2024 In thousand EUR	Data visualization	Power supplies	Remaining	Total	Reconciliation	Total
External revenues Revenues between the segments	$\begin{gathered} 56,714 \ 2,558 \end{gathered}$	$\begin{gathered} 37,811 \ 2,020 \end{gathered}$	$\begin{gathered} 4,349 \end{gathered}$	$\begin{gathered} 94,529 \ 8,923 \end{gathered}$	$\begin{gathered} -6,923 \end{gathered}$	94,529
Total revenues	59,371	39,832	4,349	103,452	$-8,923$	94,529
Gross profit or loss	20,713	12,017	3,842	36,571	$-4,013$	32,558
Cost of sales	38,285	27,874	507	66,666	$-4,923$	61,744
Personnel expenses	9,842	5,061	1,664	16,556	-	16,566
Depreciation	1,125	527	88	1,739	-	1,739
EBIT	3,575	2,990	332	6,898	130	7,058
External orders received Internal orders received	$\begin{gathered} 39,689 \ 1,392 \end{gathered}$	$\begin{gathered} 25,221 \ 272 \end{gathered}$	-	$\begin{gathered} 64,910 \ 1,665 \end{gathered}$	$\begin{gathered} -1,665 \end{gathered}$	64,910
Total orders received	41,082	25,483	-	66,574	$-1,665$	64,910
External order backlog Internal order backlog	$\begin{gathered} 35,028 \ 508 \end{gathered}$	$\begin{gathered} 18,391 \ 124 \end{gathered}$	-	$\begin{gathered} 53,419 \ 727 \end{gathered}$	$\begin{gathered} -727 \ -727 \end{gathered}$	53,419
Total order backlog	35,626	18,522	-	54,106	727	33,618
Inventories	12,223	10,160	-	22,382	$-92$	22,290

2022/2023 In thousand EUR	Data visualization	Power supplies	Remaining	Total	Reconciliation	Total
External revenues Revenues between the segments	$\begin{gathered} 67,998 \ 4,411 \end{gathered}$	$\begin{gathered} 37,856 \ 2,437 \end{gathered}$	$\begin{gathered} 0 \ 3,058 \end{gathered}$	$\begin{gathered} 105,854 \ 8,849 \end{gathered}$	$-8,849$	105,854
Total revenues	72,630	42,583	3,590	114,104	$-8,849$	105,854
Gross profit or loss	24,566	11,586	1,725	37,877	$-2,610$	35,267
Cost of sales	47,990	29,198	283	77,470	$-6,231$	71,239
Personnel expenses	9,585	5,236	1,590	16,412	-	16,412
Depreciation	1,034	518	71	1,624	560	2,184
EBIT	9,128	3,370	$-1,168$	11,330	$-650$	10,680
External orders received Internal orders received	$\begin{gathered} 56,328 \ 3,352 \end{gathered}$	$\begin{gathered} 40,627 \ 487 \end{gathered}$	-	$\begin{gathered} 96,955 \ 3,834 \end{gathered}$	$\begin{gathered} -3,834 \ -3,834 \end{gathered}$	96,955
Total orders received	50,880	24,108	-	100,780	$-7,834$	96,955
External order backlog Internal order backlog	$\begin{gathered} 52,260 \ 1,160 \end{gathered}$	$\begin{gathered} 30,787 \ 220 \end{gathered}$	-	$\begin{gathered} 83,047 \ 1,380 \end{gathered}$	$\begin{gathered} -1,380 \ -1,380 \end{gathered}$	83,047
Total order backlog	53,420	31,027	-	84,427	$-1,380$	83,074
Inventories	17,750	15,064	-	32,874	$-258$	32,556

The value of segment results EBIT Group management and consolidation/intermediate results

EBIT

53	33
15	-139

Result before taxes	7,106	10,575

Notes to the consolidated financial statements:

31. Segment reporting

Information on geographical areas

Sales revenues
The breakdown of domestic and foreign revenue for the segments can be found in section 21.

Non-current assets
Non-current assets and investments break down as follows:

In thousand EUR	Domestic	Foreign
Goodwill Data Visualisation Previous year	$\begin{gathered} 2,559 \ 2,559 \end{gathered}$	$\begin{gathered} 997 \ 983 \end{gathered}$
Goodwill Power Supplies Previous year	$\begin{gathered} 236 \ 236 \end{gathered}$	$\begin{gathered} 2,710 \ 2,669 \end{gathered}$
Goodwill	2,796	3,707
Previous year	2,796	3,652
Inlyrigible assets Previous year	$\begin{gathered} 282 \ 241 \end{gathered}$	$\begin{gathered} 48 \ 72 \end{gathered}$
Tangible fixed assets Previous year	$\begin{gathered} 4,283 \ 4,331 \end{gathered}$	$\begin{gathered} 197 \ 206 \end{gathered}$
Rights of use Previous year	3,923 4,071	$\begin{gathered} 906 \ 475 \end{gathered}$
Total Previous year	$\begin{gathered} 17,205 \ 17,736 \end{gathered}$	$\begin{gathered} 4,800 \ 4,404 \end{gathered}$
Investments Previous year	706	134
	726	177

Notes to the consolidated financial statements:

32. Currency conversion

The total equity capital included EUR 1,907 thousand (previous year: EUR 1,691 thousand) of currency conversion differences from the conversion of foreign currency transactions. These have developed (in thousand EUR) as follows:

In thousand EUR
As at 01/07/2022	1,819
Addition 2022/2023	-127
As at 30/09/2023	1,691
Addition 2023/2024	216
As at 30/06/2024	1,907

The addition primarily results from the continued development of the currency conversion from the recognition of the goodwill of FORTEC Switzerland AG at the closing rate as well as from the conversion of the equity of the foreign subsidiaries Fortec United States Corp. (US), FORTEC Switzerland AG (CH), FORTEC Technology UK Ltd. (UK) and Fortec Czech Republic s.r.o. (CZ).

In the statement of comprehensive income, EUR 216 thousand (previous year: EUR -127 thousand) from currency conversions is recognised in profit or loss (income less expenses).

Notes to the consolidated financial statements:

33. Notes to the cash flow statement

The Group cash flow statement distinguishes between cash flow from operating activities (indirect method), from investments and from financing (direct method in each case).

Cash and cash equivalents (liquid funds) include cash on hand and bank balances. The composition of cash on hand and bank balances is shown in section 14. The cash and cash equivalents are not subject to any restraints on disposal.

The cash flow from financing activities includes repayments from rental and leasing contracts in the financial year amounting to EUR 1,144 thousand (previous year: EUR 1,074 thousand). Interest payments for rental and leasing relationships in the amount of EUR 109 thousand (previous year: EUR 108 thousand) are included in the operative items. The Group has been granted credit lines of EUR 8,000 thousand. Credit lines in the amount of EUR 7,629 thousand can be used in the short term (IAS 7.50b).

Notes to the consolidated financial statements:

Notes to the cash flow statement

The changes in liabilities from financing activities are as follows:

In thousand EUR	01/07/2023	Cash- effective	exchange rate changes	Changes to for value	New lease agreements	Other changes	30/06/2024
Current interest- bearing loans. Previous year	333	(333)	-	-	-	333	333
Current leasing liabilities Previous year	750	(750)	-	-	-	333	333
Non-current interest- bearing loans Previous year	1,052	$(1,144)$	4	-	320	808	1,040
	1,011	$(1,014)$	$(1)$	-	157	966	1,052
Non-current interest- bearing loans Previous year	1,278	-	-	-	-	(333)	944
	1,611	-	-	-	-	(333)	1,278
Non-current leasing liabilities Previous year	3,957	0	8	-	8	(808)	3,973
	4,508	-	$(1)$	-	417	(967)	3,957
Total liabilities from financing activities Previous year	6,621	$(1,478)$	12	-	1,137	0	6,291
	7,880	$(1,824)$	$(9)$	-	574	0	6,621

Notes to the consolidated financial statements:

Capital management

The Group monitors capital using a ratio of equity to net financial debt (capital controlling indicator). The capital tax ratio should be above four. Net financial debt includes all debts according to the balance sheet less cash and cash equivalents. The equity capital comprises the equity capital shown in the balance sheet.

In thousand EUR	30/06/2024	30/06/2023
Total debts Less cash and cash equivalents	21,041 (22,259)	21,299 (13,246)
Net debt	0	8,053
Equity capital	57,762	55,005
Capital controlling indicator	-	6.83

Notes to the consolidated financial statements:

Supervisory Board

Members of the supervisory board in the financial year were:

Christoph Schubert
Chairman
Dortmund, accountant | auditor
Dr Andreas Bastin
Deputy chairman
Hamm, Dr. Ing. Mechanical Engineering
Christina Sicheneder
Employee representative
Grafrath, Dipl. Kfh. (MBA in wholesale and foreign trade)
Mr. Christoph Schubert is also a member of the following control boards:
Müller - Die lila Logistik AG, Besigheim
Kath. St. Paulus GmbH, Dortmund
Cardiac Research Gesellschaft für medizin-botechnologische Forschung mbH, Dortmund

Deputy chairman Dr Andreas Bastin is also a member of the following control board:
Montanhydraulik GmbH, Holzwickede

The total remuneration of Supervisory Board members amounted to EUR 90 thousand in the reporting year (previous year: EUR 90 thousand).

Notes to the consolidated financial statements:

Transactions with related companies and people

Together, IstWe GmbH and die FloluICosMAr GmbH hold 25.07\% of the shares in FORTEC Elektronik AG. Based on quorum presence
majorities in the past, IstWe GmbH and FloluICosMAr GmbH could possibly control FORTEC Elektronik AG and would then be classified
as a controlling party. However, FORTEC Elektronik AG has no knowledge of any actual control to date.

Transactions with other related parties are as follows:

	Values of business transactions		Balances outstanding as at 30.06 .
in thousand EUR	2023/2024.	2022/2023	2024.	2025
Sale of goods and services to
- Participations/associated companies	254.	608	0	0
Purchase of goods from	-	-	-	-
- Non-consolidated subsidiaries	-	-	-	-
Room rental and leasing expenses of	0	663	0	0
- Other related parties	0	-	0	0
Procured services (consulting services, labour) to other related parties	0	0	0	0
Income from investments	33	33	0	0
- Participations/associated companies	33	33	0	0
Dividends to	0	688	0	0
- Associated companies (TWM Beteiligungsgesellschaft mbH)

Conditions of transactions with related companies and persons
Sales to and purchases from related parties take place in accordance with the customary market conditions. The sale of goods and services is realised with an appropriate profit mark-up.

There are no outstanding balances at the end of the financial year.

Notes to the consolidated financial statements:

37. Remuneration of key management personnel

The group establishes the Management Board members as key management personnel. In the current year, personnel costs were as follows:

In thousand EUR	2023/2024	2022/2023
Short-term employee benefits	734	787
Post-employment benefits	0	0
Other benefits due	39	48
Termination benefits	0	0
Share-based remuneration	0	0
	777	845

Notes to the consolidated financial statements:

38. Auditor's fees

The total fees of the auditor for the services rendered by the auditors of the consolidated financial statements, Rödi \& Partner GmbH, Wirtschaftsprüfungsgesellschaft, Munich, are shown in the table below:

In thousand EUR	2023/2024	2022/2023
Audits of financial statements	139	136
Accountancy services	0	0
Other auditing services	1	1
	160	157

The total remuneration of the Management Board of FORTEC AG amounts to EUR 773 thousand (previous year: EUR 845 thousand), which includes performance-related remuneration in the amount of EUR 233 thousand (previous year: EUR 288 thousand). The total remuneration also includes ancillary services, which are assessed according to the monetary benefit for tax purposes.

Notes to the consolidated financial statements:

Other regulations according to stock corporation law

The following notifications were submitted by the company in accordance with sections $33 / 34$ in conjunction with 40, paragraph 1 of the Securities Trading Act (formerly sections 21 in conjunction with 26, paragraph 1 of the Securities Trading Act) in the previous financial years up to the time of preparation:

Notifiable company	Reporting date of the notification	Share of voting rights on the reporting date	Reacring the notification threshold
TIRM Beteiligungsgesellschaft mbH	31/08/2012	$31 \pm 1 \%$	$3 \% .5 \%$ : $15 \%: 15 \%: 20$ $\%: 25 \%: 30 \%$
	15/09/2023 $17 / 05 / 2024$	$\begin{aligned} & 5.16 \% \ & 0.00 \% \end{aligned}$	$\begin{aligned} & 10 \% \ & 15 \%: 3 \% \end{aligned}$
Scherzer Co KG (formerly Scherzer \& Co. AG)	09/11/2012 10/01/2013 26/02/2013 18/07/2013 20/02/2014	$\begin{aligned} & 3.05 \% \ & 5.07 \% \ & 2.82 \% \ & 3.38 \% \ & 2.18 \% \end{aligned}$	$\begin{aligned} & 3 \% \ & 5 \% \ & 5 \%: 3 \% \ & 3 \% \ & 3 \% \end{aligned}$
KR Fonds Investmentgesellschaft mit variablem Kapital (SICM)	13/10/2016 15/04/2021	$\begin{aligned} & 4.41 \% \ & 2.17 \% \end{aligned}$	$\begin{aligned} & 3 \% \ & 3 \% \end{aligned}$
GS\&P\Vogtalanlagesgesellschaft Luxemburg	17/07/2018 26/07/2018	$\begin{aligned} & 3.077 \% \ & 2.93 \% \end{aligned}$	$\begin{aligned} & 3 \% \ & 3 \% \end{aligned}$
Schlafr GmbH	09/02/2022 23/02/2022	$\begin{aligned} & 3.08 \% \ & 5.20 \% \end{aligned}$	$\begin{aligned} & 3 \% \ & 5 \% \end{aligned}$
Joachim Weggand and Nikolaus Weggand	11/09/2023 15/09/2023	25.07\%	25\%
Jettie GmbH FlaluCosMor GmbH		10.06\% 15.01\%

1) Joachim Weggand and Nikolaus Weggand announced that the share of voting rights in FORTEC Elektronik AG was increased on 11 September 2023 by means of a purchase agreement and paid agreement and amounted to $25.07 \%$ (corresponding to 815,000 voting rights) on that day. In a purchase agreement, Jettie GmbH agreed to acquire 488,000 shares and FlaluCosMor GmbH agreed to acquire 327,000 shares from TIRM Beteiligungsgesellschaft mbH. Jettie GmbH and FlaluCosMor GmbH have agreed on the subsequent acquisition with shares from the purchase agreement as well as the exercise of voting rights from the shares to be acquired and have thus coordinated their activity by means of a corresponding agreement.

Jettie GmbH announced that the share of voting rights in FORTEC Elektronik AG was increased on 15 September 2023, and that the figure on that date amounted to 25.07\% FlaluCosMor GmbH announced that the share of voting rights in FORTEC Elektronik AG was increased on 15 September 2023, and that the figure on that date amounted to 25.07\%.

Jettie GmbH (share: 488,000 shares) and FlaluCosMor GmbH (share: 327,000 shares) have agreed on the exercise of the voting rights from the shares held by them and have therefore coordinated their activity through a corresponding agreement.

Notes to the consolidated financial statements:

Other disclosures

In the financial year, the Group employed an average of 243 (previous year: 237) employees, of which 2 are temporary staff (previous year: 2). On average, there were 3 trainees in various locations over the course of the year.

FORTEC AG had the following board members during the financial year:

Sandra Maile, Dipl. Kffr.
Management Board (Chair)
Ludwigsburg
Ulrich Ermel, Dipl. Ing. (FH)
Management Board
Maisach
Between the balance sheet date of 30 June 2024 and the date on which the financial statements are released for publication, no events occurred, which would indicate the need to adjust the assets and liabilities.

The Management Board and the Supervisory Board have issued the declaration on the application of the Corporate Governance Code required by section 161 of the German Stock Corporation

Act (ArtG) and made it permanently available to shareholders on the Internet at:
(https://www.fortecag.de/investor-relations/corporategovernance/) (sections 285 no. 16 and 314 (1) no. 8 HGB).

The Management Board proposes a total dividend of EUR 2,762,870.60 (previous year: EUR 2,762,870.60). A total of 3,250,436 no-par value shares with a nominal value of EUR 0.85 each (previous year: EUR 0.85) are entitled to a dividend payment. EUR 77,000 of deferred tax assets are subject to the payout block in accordance with section 268, paragraph 8 of the German Commercial Code. The excess amount of EUR 12,209,241.24 is to be carried forward as the profit carried forward to the new accounts.

The earnings per share amount to EUR 1.63 (previous year: EUR 2.32).

The following ad hoc announcement was published prior to the preparation of the consolidated financial statements.

22/05/2024
FORTEC Elektronik AG Adjustment to the turnover and earnings forecast for the 2023/2024 financial year

Notes to the consolidated financial statements:

41. Release for publication

The consolidated statements were prepared and authorised for issue by the Management Board on 26 September 2024.

Germering, 26 September 2024
FORTEC Elektronik AG

Sandra Maile
Ulrich Ermel
Chair of the Management Board
Management Board

Annual Report 2024

Responsibility statement	86
Auditors' report	86

We state that, to the best of our knowledge and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Company.

Germering, 26 September 2024

FORTIEC Elektronik AG

Sandra Male
Chair of the Management Board

Independent Auditor's Report

Auditor's opinions

We have audited the consolidated financial statements of FORTIEC Elektronik AG, Germering, and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 30 June 2024, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the financial year from 1 July 2023 to 30 June 2024, and notes to the consolidated financial statements, including a summary of significant accounting methods. We have also audited the group management report of FORTIEC Elektronik AG, Germering, for the financial year from 1 July 2023 to 30 June 2024.
Based on the findings of our audit, it is our opinion that
$\rightarrow$ the accompanying consolidated financial statements comply in all material respects with the IFRS as adopted by the EU and the additional requirements of German law in accordance with section 315e, paragraph 1 of the German Commercial Code and give a true and fair view of the financial position of the Group as at 30 June 2024 and of its financial performance for the financial year from 01 July 2023 to 30 June 2024 in accordance with these requirements;
$\rightarrow$ the accompanying group management report as a whole provides a suitable view of the Group's position. This group management report is consistent in all material respects with the consolidated financial statements, complies with German legal requirements, and accurately presents the opportunities and risks of future development.

In accordance with section 322, paragraph 3 clause 1 of the German Commercial Code, we hereby declare that our audit has not led to any reservations concerning the correctness of the consolidated financial statements and the group management report.

Basis for the audit opinions

We conducted our audit of the consolidated financial statements and the group management report contained in our auditor's report. We are independent of the Group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities pursuant to those requirements. Furthermore, pursuant to Article 10 section 2 W, (f) EU-AuditReg, we declare that we have not performed any prohibited non-audit services pursuant to Article 5 section 1 EU-AuditReg. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and the group management report.

Audit matters of particular significance in the audit of the consolidated financial statements
Audit matters of particular significance are those matters that, in our professional judgement, were of most significance to our audit of the consolidated financial statements for the financial year from 1 July 2023 to 30 June 2024. These matters were considered in the context of our audit of the consolidated financial statements as a whole, and in forming our auditor's opinion accordingly; we do not provide a separate opinion on these matters.

Impairment of goodwill

Reasons for designation as an audit matter of particular significance
Goodwill totalling EUR 6,503 thousand ( $8.25 \%$ of total assets or $11.26 \%$ of equity) is recognised in the consolidated financial statements of the company. Goodwill is subjected to an impairment test by the company once a year - or on an ad hoc basis - in order to determine a possible need for depreciation. The impairment test is conducted at the level of the groups of cashgenerating units to which the respective goodwill is allocated. Within the framework of the impairment test, the book value of the respective goodwill is compared with the corresponding recoverable amount. The recoverable amount is generally determined on the basis of the value of use. The basis for the valuation is regularly the present value of future cash flows of the respective group of cash-generating units. The cash values are determined using discounted cash flow models, whereby the starting point is the Group's approved medium-term plan; this is updated with assumptions about long-term growth rates. Expectations regarding future market development and assumptions about the development of macroeconomic factors are also taken into account. Discounting is carried out using the weighted average cost of capital of the respective group of cashgenerating units.

The result of this valuation is highly dependent on the assessment of the legal representatives concerning the future cash inflows of the respective group of cash-generating units, the discount rate used and other assumptions, and is therefore subject to considerable uncertainty. Against this background and due to the complexity of the valuation, this matter was of particular significance in the context of our audit.

Our audit procedures
Within the framework of our audit, we verified such aspects as the methodical process for conducting the impairment test. After comparing the future cash inflows used in the calculation with the Group's approved mid-term planning, we assessed the appropriateness of the calculation - in particular by reconciling it with general and industry-specific market expectations. Furthermore, we also assessed the appropriate consideration of the costs of Group functions. Knowing that even relatively small changes in the discount rate used can have a significant impact on the company value determined in this way, we intensely scrutinised the parameters used in determining the discount rate and gained an understanding of the calculation scheme. We have reproduced the sensitivity analyses prepared by the company, in order to take into account the existing forecast uncertainties.

Independent Auditor's Report

Reference to related disclosures
The Company's disclosures regarding impairment testing and goodwill are included in section 2, subsection 2.13 "Assumptions and estimates" and section 5 "Acquired goodwill" of the notes to the consolidated financial statements.

Valuation of stocks

Reasons for designation as an audit matter of particular significance
The consolidated financial statements of the company contain an amount of EUR 22,290 thousand, reported under the balance sheet item "Inventories", which consists primarily of merchandise and finished goods. This item represents 28.29\% of the balance sheet total. To ensure the ability to deliver, FORTEC procures and stores significant quantities of various hardware components, some of which are subject to a sales risk due to general technical developments. Finished goods and merchandise are valued at acquisition and production cost using the cost formula method or at net realisable value if this is lower than the acquisition and production cost. In order to ensure an accurate valuation, FORTEC reviews the value of the inventories on a regular basis. The basis for the value adjustments are estimation routines regarding the usability of the stocks due to declining marketability, too high a range and too low a realisable sales price. The Management reviews the plausibility of the devaluations determined in this way and subjects them to a further devaluation analysis and adjusts them manually if necessary. The determination of the applied devaluation rates is based on assumptions from past experience and is therefore subject to the discretion of the company's legal representatives.

Our audit procedures
Taking into account the knowledge that there is an increased risk of misstatement in the financial statements due to the estimates and assumptions to be made, we reviewed the valuation procedures established by FORTEC and satisfied ourselves of their consistent application of the parameters for impairment testing. We also satisfied ourselves that manual valuation adjustments were reasonable based on the information available on the reporting date. Furthermore, we recalculated the devaluation amounts determined by the company on a
sample basis and compared the deposited valuation prices with the most recently achieved sales prices for selected items, and also performed further plausibility assessments on the basis of analytical audit procedures (margin analysis).

We obtained confirmation from the sub-division auditors that the valuation of the inventories for the foreign subsidiaries was correct.

Reference to related disclosures

Further information regarding the valuation of stocks can be found in subsection 2.13 "Assumptions and estimation uncertainties" and in subsection 2.2 "Stocks" under section 2 "Accounting and significant valuation principles" and in section 10 "Inventories" in the notes to the balance sheet in the notes to the consolidated financial statements of the company.

Other information
The legal representatives or the Supervisory Board are responsible for the other information. The other information comprises:
$\rightarrow$ the assurances in accordance with sections 297, paragraph 2, clause 4 of the German Commercial Code and 315, paragraph 1, clause 5 of the German Commercial Code regarding the annual financial statements and the group management report,
$\rightarrow$ the declaration on corporate governance in accordance with section 289f of the German Commercial Code in conjunction with section 315d of the German Commercial Code (reference in the group management report)
$\rightarrow$ the remaining parts of the annual report,
$\rightarrow$ the "Report of the Management Board", the "Report of the Supervisory Board", and the "Overview of key figures and share price development", as well as the "Sustainability report" that are scheduled to be provided to us after the date of this auditor's report
but not the annual financial statements, not the group management report and not our corresponding auditor's report.

The Supervisory Board is responsible for the "Report of the Supervisory Board". The legal representatives and the supervisory board are responsible for the declaration pursuant to paragraph 161 AktG concerning the German Corporate Governance Code. Furthermore, the legal representatives are responsible for the other information.

Our auditor's opinions on the consolidated financial statements and the group management report do not extend to the other information and, as such, we do not express an opinion or any other form of conclusion in relation to this information.

With regards to our audit of the consolidated financial statements, our responsibility is to read the above-mentioned other information and, in doing so, consider whether the other information is
$\rightarrow$ materially inconsistent with the consolidated financial statements, the content of the audited group management report or our knowledge obtained in the audit
$\rightarrow$ apparently otherwise materially misstated.
If, as a result of the work we have performed, we conclude that there is a material misstatement of such other information, we are required to report this. We have nothing to report in this regard.

Responsibility of the legal representatives and the Supervisory Board for the consolidated financial statements and the group management report
The legal representatives are responsible for the preparation and fair presentation of these consolidated financial statements in accordance with IFRSs as adopted by the EU and the additional requirements of German law in accordance with section 315e, paragraph 1 of the German Commercial Code and for such internal control as the legal representatives determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In addition, the management is responsible for such internal control as they deem necessary in order to permit the preparation of consolidated annual financial
statements that are free from material misstatement, whether due to fraudulent actions (i.e. manipulation of the accounting system or misstatement of assets) or error.
In preparing the consolidated financial statements, the legal representatives are responsible for assessing the Group's ability to continue as a going concern. Further to the above, the legal representatives are also responsible for disclosing matters related to going concern, insofar as these are relevant. The legal representatives are additionally responsible for accounting on a going concern basis, unless there is an intention to liquidate the group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the legal representatives are responsible for the preparation of the group management report, which as a whole provides a suitable view of the Group's position, is consistent in all material respects with the consolidated financial statements, complies with German legal requirements, and suitably presents the opportunities and risks of future development. Additionally, the legal representatives are responsible for implementing the provisions and measures (systems) that it has determined are necessary to enable the preparation of a group management report in accordance with the applicable German legal requirements and for providing sufficient appropriate evidence for the statements made in the group management report.

The Supervisory Board is responsible for overseeing the Group's accounting process for the preparation of the consolidated financial statements and the Group management report.

Auditor's responsibility for the audit of the consolidated financial statements and the group management report
Our objectives are to obtain reasonable assurance as to whether the annual financial statements as a whole are free from material misstatement, whether due to fraudulent actions or error, and whether the management report as a whole provides an appropriate view of the Group's position and is consistent in all material respects with the consolidated annual financial statements and the knowledge obtained in the audit, complies with German legal provisions and appropriately presents the opportunities and risks of future developments, as well as

to issue an auditor's report that includes our audit opinions on the consolidated annual financial statement and Group management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with section 317 of the German Commercial Code, EU-AuditReg and the generally accepted German standards for the audit of financial statements promulgated by the institute of German auditors (IDW) will always detect a material misstatement. Misstatements may arise from fraudulent actions or errors and are considered material if they could individually or mutually be reasonably expected to influence the economic decisions of users taken on the basis of these consolidated annual financial statements and this Group management report.
During the audit, we exercise professional judgement and maintain a critical attitude. Furthermore, we
$\rightarrow$ Identify and assess the risks of material misstatements in the consolidated annual financial statements and the Group management report, whether due to fraudulent actions or errors, plan and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of failing to detect material misstatements resulting from fraud is higher than the risk of failing to detect material misstatements resulting from errors, as fraud may involve collusion, forgery, intentional omissions, misleading representations or the override of internal controls.
$\rightarrow$ obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and actions relevant to the audit of the group management report, in order to plan audit procedures that are appropriate in the given circumstances, but not for the purpose of expressing an opinion on the effectiveness of those systems.
$\rightarrow$ evaluate the appropriateness of accounting policies employed and the reasonableness of the accounting estimates and related disclosures made by the legal representatives.
$\rightarrow$ draw conclusions on the appropriateness of the going concern basis of accounting employed by the legal representatives and, based on the audit evidence obtained, also on 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, in our auditor's report we are required to draw attention to the related disclosures in the consolidated financial statements and the group management report or, if such disclosures are inadequate, to modify our respective auditor's opinions. We draw our conclusions on the basis of the audit evidence obtained up to the date on which our auditor's report is formulated. Despite this, future events or conditions may nonetheless cause the Group to cease to continue as a going concern.
$\rightarrow$ evaluate the presentation, structure and content of the consolidated financial statements as a whole, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events such that the consolidated financial statements provide a true and fair view of the assets, financial position and results of operations of the Group in accordance with IFRSs as adopted by the EU and the additional requirements of German law in accordance with section 315e, paragraph 1 of the German Commercial Code.
$\rightarrow$ obtain sufficient appropriate audit evidence regarding the accounting information of the companies or business activities within the Group to express opinions on the consolidated financial statements and on the group management report. We are responsible for the direction, supervision and performance of the Group audit. We bear sole responsibility for our auditor's opinions.
$\rightarrow$ evaluate the consistency of the group management report with the consolidated financial statements, its compliance with laws and regulations, and the understanding of the Group's position as conveyed by the group management report.
$\rightarrow$ perform audit procedures on the forward-looking statements in the group management report as presented by the legal representatives. On the basis of sufficient appropriate audit evidence, we evaluate, in particular, the significant assumptions used by the management as a basis for its forward-looking statements, and evaluate the proper derivation of the forward-looking statements from these assumptions. We do not express an independent auditor's opinion regarding the forward-looking statements or the underlying assumptions. A significant unavoidable risk exists whereby future events may materially differ from the forward-looking statements.

We engage in discussions with the persons responsible for governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in the internal control system that we identify during our audit.

We also provide the persons responsible for governance with a statement confirming that we have complied with the relevant independence requirements, and discuss with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, the actions taken or safeguards implemented to address independence threats.

On the basis of the matters discussed with those responsible for governance, we determine those matters that were of particular significance to the consolidated financial statements of the current period and that are therefore the audit matters of particular significance. We describe these matters in the auditor's report unless law or regulation precludes public disclosure of the respective matter.

Other statutory and other legal requirements

Note regarding the audit of the electronic reproductions of the consolidated financial statements and the group management report prepared for disclosure purposes in accordance with section 317, paragraph 3a of the German Commercial Code

Auditor's opinion

In accordance with section 317, paragraph 3a of the German Commercial Code, we have performed a reasonable assurance review of whether the reproductions of the consolidated financial statements and the group management report contained in European Single Electronic Format in the file provided (FORTEC_AG_KA+LB_ESEF_30-06-2024.zip SHA-256-Hashwert: b3486a5880c968e31a4616edcbb64de36758e58f593659d6795c0e52f37f070b6) and prepared for disclosure purposes (hereinafter also referred to as the "ESEF documents") comply in all material respects with the electronic reporting format ("ESEF format") requirements of section 328, paragraph 1 of the German Commercial Code. In accordance with German legal requirements, this audit only covers the transfer of the information from the consolidated financial statements and the management report into ESEF format and therefore neither the information contained in these reproductions nor any other information contained in the aforementioned file.
In our opinion, the
reproductions of the consolidated financial statements and the group management report contained in the aforementioned attached file and prepared for the purpose of disclosure comply, in all material respects, with the requirements of § 328 section 1 HGB regarding the electronic reporting format. We do not express any auditor's opinion regarding the information contained in these reproductions or on the other information contained in the aforementioned file beyond this opinion and our opinions on the accompanying consolidated financial statements and the accompanying group management report for the financial year from 1 July 2023 to 30 June 2024 contained in the preceding "Report on the audit of the consolidated financial statements and the group management report."

Basis for the auditor's opinion

We conducted our audit of the reproductions of the consolidated financial statements and the group management report contained in the aforementioned attached file in accordance with section 317, paragraph 3a of the German Commercial Code and the draft IDW auditing standard. Audit of electronic reproductions of financial statements and management reports prepared for disclosure purposes in accordance with section 317, paragraph 3a of the German Commercial Code (IDW PS 410 09L2023). Our associated responsibility is further described in the section "Auditor's responsibility for the audit of the ESEF documents". Our auditing practice has complied with the quality assurance system requirements of the IDW quality assurance standard. Requirements for quality assurance in the auditing practice (IDW QS 1).

Responsibility of the legal representatives and the Supervisory Board for the ESEF documents
The legal representatives of the company are responsible for preparation of the ESEF documents with the electronic reproductions of the consolidated financial statements and the group management report in accordance with section 328, paragraph 1 clause 4, no. 1 of the German Commercial Code and for issuance of the consolidated financial statements in

accordance with section 328, paragraph 1 clause 4, no. 2 of the German Commercial Code.

Furthermore, the legal representatives of the company are responsible for such internal controls as they deem necessary to enable preparation of the ESEF documents free from material non-compliance, be it due to fraud or error, with the electronic reporting format requirements in accordance with section 328, paragraph 1 of the German Commercial Code.

The Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part of the financial reporting process.

Auditor's responsibility for the audit of the ESEF documents
Our objective is to obtain reasonable assurance as to whether the ESEF documents are free from material non-compliance, be it due to fraud or error, with the requirements of section 328, paragraph 1 of the German Commercial Code. During the audit, we exercise professional judgement and maintain a critical attitude. Furthermore, we
$\rightarrow$ Identify and assess the risks of material non-compliance with the requirements of section 328, paragraph 1 of the German Commercial Code - be it due to fraud or error - plan and perform audit procedures in response to those risks, and obtain audit evidence that is sufficient and appropriate to serve as a basis for our auditor's opinion.
$\rightarrow$ obtain an understanding of internal control relevant to the audit of the ESEF documents, in order to plan audit procedures that are appropriate in the given circumstances, but not for the purpose of expressing an auditor's opinion on the effectiveness of those controls.
$\rightarrow$ evaluate the technical validity of the ESEF documents, i.e. whether the file provided containing the ESEF documents complies with the technical specification for that file as set out in Delegated Regulation (EU) 2019/815 as applicable on the reporting date.
$\rightarrow$ assess whether the ESEF documents provide a consistent XHTML representation of the audited consolidated financial statements and the audited group management report.
$\rightarrow$ assess whether the inline XBRL (MBRL) issuance of the ESEF documentation provides an adequate and complete machine-readable XBRL copy of the XHTML reproduction of
the version applicable on the reporting date in accordance with Articles 4 and 6 of Delegated Regulation (EU) 2019/815.

Other information according to Article 10 EU-AuditReg
We were elected as auditors of the consolidated financial statements by the AGM on 07 February 2024. We were appointed by the Supervisory Board on 29 May 2024. We have served as auditors of the consolidated financial statements of FORTEC Elektronik AG, Germering, since the 2020/2021 financial year.

We herewith declare that the audit opinions contained in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 EU-AuditReg (audit report).

Other matter - Use of the auditor's report
Our auditor's report is always to be read in conjunction with the audited consolidated financial statements and the audited group management report, as well as the audited ESEF documents. The consolidated financial statements and the group management report provided in ESEF format, including the versions to be entered in the company register, are only electronic reproductions of the audited consolidated financial statements and the audited group management report. In particular, the ESEF remark and our audit opinion contained therein may only be used in conjunction with the audited ESEF documents provided in electronic form.

Auditor responsible
The auditor responsible for the audit is Felix Haendel.
Munich, 26 September 2024

Rödl \& Partner GmbH
Auditors
Accountants

Hager
Haendel
Auditor
Auditor

Legal Notice

Published by
FORTEC Elektronik AG
Augsdurger Str. 2b | 82110 Germering
Telephone: +49 0389 894450-0 | Fax: +49 0389 894450-123
Email: [email protected] | www.fortecag.de

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FORTEC Elektronik AG
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D-82110 Germering
www.fortecag.de

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FORTEC Elektronik AG

161_10-k_2024-10-30_ffc87d00-4c5a-4731-8685-154ed9d9ecf7.pdf

Financial Report 2024

Table of contents

Foreword

Sandra Maile

Financial Report 2024

Contents of the group management report

Group management report: 3. Research and development

Group management report: 4. Economic report

Group management report: 5. Business development

Group management report: 7. Asset situation

Investments

Group management report: 8. Financial and liquidity position

Group management report: 9. Forecast report

Group management report: 10. Risk and opportunity report

10.1 Risk management

Risk identification

Risk reporting

10.2 Risk report

Group management report: 10. Risk and opportunity report

Personnel risks

Compliance risks

Group management report: 10. Risk and opportunity report

10.3 Opportunity report

Group management report: 11. Further information in accordance with section 315a of the German Commercial Code

Group management report: 11. Further information in accordance with section 315a of the German Commercial Code

Financial Report 2024

Notes to the consolidated financial statements:

1. General disclosures

Notes to the consolidated financial statements:

1. General disclosures

Notes to the consolidated financial statements:

1. General disclosures

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

2.1 Individually acquired intangible assets (without goodwill) and tangible assets

2.2 Stocks

2.3 Cash

2.4 Embedded derivatives

2.5 Discontinued operations

Warranty provisions

2.7 Taxes

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

2.8 Currency conversion

Currency conversion in the Group

2.9 Classification rules

2.10 Revenues from contracts with customers

Warranty obligations

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

Contract liabilities (other liability)

2.11 Government grants

2.12 Development costs

2.13 Assumptions and estimation uncertainties

2.14. Determining fair values for financial and non-financial assets and liabilities.

2.15 Impairment of non-financial assets

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

2.16 Financial assets and financial debts.

$\rightarrow$ at amortised cost

Subsequent evaluation

2.17 Leases

Notes to the consolidated financial statements:

2. Accounting and significant valuation principles

Leasing liabilities

2.18 Business combinations

Notes to the consolidated financial statements:

Notes to the consolidated financial statements:

3. Scope of consolidation

Notes to the consolidated financial statements:

4. Consolidation principles

Notes to the consolidated financial statements:

Notes to the consolidated financial statements:

5. Acquired goodwill

Notes to the consolidated financial statements:

Notes to the consolidated financial statements:

6. Intangible and tangible assets