Half-Year Interim Report 2025

Consolidated Key Figures

		Q2 2025	Q2 2024	Half-yearly report 2025	Half-yearly report 2024
Incoming orders	(EUR million)	15.8	15.4	35.3	31.9

Orders on hand	(EUR million)			23.4	30.9

Revenue	(EUR million)	21.6	23.1	43.9	47.3

EBITDA (IFRS)	(EUR million)	1.8	1.3	2.6	3.9

EBIT (IFRS)	(EUR million)	–0.4	–0.9	–1.8	–0.4

EBIT (operating)	(EUR million)	0.4	–0.3	0.4	–0.3

Consolidated profit (IFRS)	(EUR million)	–0.5	–1.6	–1.9	–1.4

Earnings per share (IFRS)	(EUR)	–0.05	–0.17	–0.19	–0.15


Non-current assets	(EUR million)			53.5	60.0

Current assets	(EUR million)			51.1	49.6

Equity	(EUR million)			50.3	53.0


Equity ratio				48.0 %	48.4 %

Cash and cash equivalents	(EUR million)			6.5	6.3

Number of employees (as of June 30)				412	443

Letter from the CEO	02
Softing Shares	04
Interim Group Management Report	06
Responsibility Statement	11
Consolidated Income Statement	12
Consolidated Statement of Comprehensive Income	13
Consolidated Statement of Financial Position	14
Consolidated Statement of Changes in Equity	16
Consolidated Statement of Cash Flows	17
Consolidated Segment Reporting	18

Letter from the CEO

DEAR SHAREHOLDERS, EMPLOYEES, PARTNERS AND FRIENDS OF SOFTING AG,

The economic climate remained challenging in the second quarter of 2025, yet there were equally clear and encouraging signs of a turnaround. While revenue and orders on hand continued to decline, order intake rose sharply to EUR 35.3 million, up from EUR 31.9 million in the previous year. This is the first time in over a year that order intake has grown by more than 11 % over a six-month period, after having recorded a 28 % decrease in the same period last year.

We are particularly encouraged by the fact that the surge in order intake is primarily driven by the Industrial segment, which continued to suffer significant drops in revenue in the first two quarters of the year. The IT Networks and Automotive segments both saw their revenue grow. While this increase was only modest in IT Networks, Automotive continued to resoundingly buck the sector trend with impressive revenue growth of almost 20 %.

Although the outlook is encouraging, we cannot be satisfied with revenue and earnings in the first six months of the year. Half-year revenue was EUR 43.9 million, a decline of 7.2 % compared to the EUR 47.3 million recorded in the prior-year period. Group EBITDA dropped from EUR 3.9 million to EUR 2.6 million in the first half of the year. While the Group's key performance figure of operating EBIT (EBIT adjusted for capitalized development services and amortization on these as well as effects from purchase price allocation) improved from EUR –0.3 million to EUR 0.4 million in the first half of 2025, EBIT decreased from EUR –0.4 million to EUR –1.8 million. This resulted in a consolidated loss of EUR 1.9 million, down from a loss of EUR 1.4 million in the prior-year period. As a result, earnings per share came to EUR –0.19 in the first half of 2025 compared with EUR –0.15 in the previous year.

The Automotive segment delivered a particularly impressive performance in the first six months of the year. At a time when major automotive manufacturers are reporting dramatic revenue and earnings slumps and automotive suppliers are falling into insolvency almost every week, Softing Automotive recorded another 19 % rise in halfyearly revenue to EUR 16.1 million, having already reported a 35 % increase to EUR 13.5 million in the first half of 2024. This performance was driven by a combination of a robust core business of software tools and a major project with a premium manufacturer to equip its global automotive production facilities with programming devices.

Automotive is exceptionally well-positioned from a strategic perspective. We are currently running a series of highly promising trials focused on special-purpose vehicles and generic devices requiring diagnostics to reduce Softing Automotive's dependence on automotive production alone. We expect this shift towards software to generate considerably stronger margins in the future. Our earnings continued to be adversely affected by a weak order situation for development services in the wider economy. While GlobalmatiX was able to generate organic growth with its top customers, repeated project delays resulted in disappointing customer acquisition figures that also weighed on earnings. Operating EBIT rose to EUR 1.2 million from EUR –0.3 million in the previous year. EBIT fell from EUR 0.9 million in the previous year to EUR 0.5 million during the period under review due to a significant year-on-year reduction in capitalization and higher levels of depreciation and amortization.

The situation in the industrial automation sector was particularly challenging, with major customers and competitors recording falls in revenue ranging from 8 % to more than 20 % due to an extreme reluctance to invest in the product and process industry. As already mentioned, we are seeing a clear turnaround in order intake, which rose over a six-month period for the first time in a while. This 16 % increase in order intake holds the promise of a marked improvement in revenue performance both in the second half of 2025 and in 2026. In the meantime, however, revenue fell from EUR 30.7 million to EUR 23.7 million in the fi rst half of 2025. By consistently managing costs, we were able to minimize the impact on EBIT, which stood at EUR –0.7 million, down from EUR 0.5 million previously. Operati ng EBIT fell to EUR 0.0 million aft er EUR 1.0 million in the previous year. The Company's performance in July, aft er the end of the fi rst half of the year, was parti cularly encouraging. We expect revenue to improve on the back of strong order intake in both EMEA and North America during the second half of the year. Both of these regions are likely to boost earnings considerably as the year progresses.

Although the underlying IT Networks market remains weak, intensive marketi ng eff orts enabled us to increase revenue slightly from EUR 3.5 million to EUR 3.7 million in the fi rst six months of 2025. EBIT and operati ng EBIT were sti ll impacted by signifi cant ongoing development and maintenance expenses in our own product portf olio, while customer acquisiti on initi ati ves in EMEA also weighed on earnings. As a result, EBIT remained negati ve at EUR –1.4 million despite these improvements, up from EUR –1.7 million in the previous year. The segment's operati ng EBIT of EUR –1.1 million conti nues to adversely impact consolidated profi t. Opti mized costs and a clear improvement in revenue will start to have a noti ceable eff ect from the fourth quarter onwards.

Pursuing our CORE (COsts down, REvenue up) effi ciency and focus program has prompted us to concentrate even more on our core business. We sold our third-party products business in Italy as it was outside of our core strategy, ti ghtening our focus further and creati ng additi onal liquidity. We plan to drasti cally reduce our debt by aggressively repaying outside capital, thus signifi cantly reducing our interest burden for the coming years. Our CORE program is also making an impact on the cost side, with personnel expenses falling from EUR 21.7 million in the prior-year period to EUR 19.7 million in the period under review.

We will use structural measures and revenue growth to ease the existi ng burden on consolidated profi t created by Globalmati X and the IT Networks segment and expect both units to make a positi ve contributi on to earnings in the coming year. We also see ourselves as well positi oned in the US market, where most European businesses have been adversely impacted by the Trump administrati on. We ensured that any additi onal costs arising from import tariff s are fully passed on to customers by reaching agreements with large key customers representi ng a combined 75 % of our total revenue. We achieved the same eff ect with our remaining customers by adjusti ng our prices.

The integrati on of Delta Logic, which we acquired in April, is proceeding according to plan. We expect revenue to rise further from the fourth quarter onwards once Delta Logic products have been integrated into the global Softi ng Industrial network. In additi on to anti cipati ng a marked improvement in revenue in the Industrial and IT Networks segments, we are in licensing discussions with customers that will provide a massive boost to earnings once successfully completed. We are therefore maintaining the guidance we originally issued at the start of the year.

By the ti me the challenges of 2024 and 2025 are behind us, Soft ing will have fully adapted to the new general environment. We will emerge from these years stronger than before and are excited to see what the future holds.

Sincerely yours,

Dr. Wolfgang Trier (Chief Executi ve Offi cer)

Softing Shares

MARKET CAPITALIZATION – TRADING VOLUME

Softing shares began the year at a price of EUR 3.16, dropped to EUR 3.08 in January and then reached their year-to-date high of EUR 4.04 in late March. The shares again shed value in the second quarter, falling to a low for the year of EUR 2.86 in mid-May, before recovering again to reach their current price of around EUR 3.30.

As a result, the market capitalization of Softing AG amounted to around EUR 32.8 million at the end of the second quarter (previous year: EUR 43.3 million). The share capital of Softing AG is EUR 9,925,881, divided into the same number of nopar-value shares.

During the reporting period, the average daily trading volume of Softing shares was 1,560 shares (Xetra and floor trading), largely on a par with the prior-year figure of 1,773 shares. Softing supports the liquidity of its shares by using two designated sponsors, ICF Bank AG Wertpapierhandelsbank and M.M. Warburg & CO (AG & CO.) KGaA.

On June 18, 2025, the General Shareholders' Meeting of Softing AG adopted a resolution not to distribute a dividend (previous year: EUR 0.13 per nopar share).

SHAREHOLDER STRUCTURE

As far as the Company is aware, Helm Trust Company Limited, St. Helier, Jersey, UK, is the single largest investor in Softing's 9,925,881 shares with 2,067,642 shares (20.8 %). Further major shareholders are Mr. Rudolf Noser/Noser AG with 1,955,704 shares (19.7 %) and Mr. Alois Widmann, Vaduz, Principality of Liechtenstein, with 1,450,000 shares (14.6 %), followed by a number of institutional investors and several private anchor investors. The remaining shares are in free float.

ANALYST RECOMMENDATIONS

Warburg Research has analyzed the Softing share regularly for years in research reports and published two updates on the share in 2025. The most recent update of May 16, 2025 confirms the buy recommendation, stating a price target of EUR 6.50.

Information about analysts' reports on Softing shares is available at www.softing.com under Investor, News & Publications, Research. The Press & Interviews section contains information about the growth prospects of the Softing Group published in a variety of financial newspapers and magazines such as 4investors, Bernecker-Daily, boersengefluester.de, Börse Online, DER AKTIONÄR, finanzen.net, Nebenwerte Magazin, Plusvisionen and others.

BASIC DATA OF THE SOFTING SHARE

ISIN / WKN	DE0005178008 / 517800
Supersector	Informati on Technology (IT)
Sector	Soft ware
Subsector	IT Services
Stock exchange symbol	SYT
Bloomberg / Reuters	SYT GR / SYTG
Market segment	Prime Standard, Offi cial Trading, EU-regulated Market
Stock exchanges	XETRA, Frankfurt, Stutt gart, Munich, Hamburg, Düsseldorf, Berlin-Bremen, Tradegate
Initi al listi ng (IPO)	May 16, 2000
Indices	Prime All Share Performance Index
Share class	No-par bearer ordinary share with a noti onal value of EUR 1.00 per share
Share capital	EUR 9,925,881
Authorized capital 2025	EUR 4,962,940 unti l June 18, 2030
Conti ngent capital 2025	EUR 4,962,940 unti l June 18, 2030
Designated sponsor	ICF Bank AG Wertpapierhandelsbank, M.M. Warburg & CO (AG & CO.) KGaA
Research coverage	Warburg Research

PRICE OF THE SOFTING SHARE FROM 07/01/2024 TO 07/31/2025 (XETRA)

FINANCIAL CALENDAR

November 24-26, 2025 German Equity Forum in Frankfurt/Main

August 14, 2025 Half-Year Interim Report 2025 November 12, 2025 Interim management statement Q3/9M 2025 November 12-13, 2025 Münchner Kapitalmarkt Konferenz

Interim Group Management Report for the 2025 Half-Yearly Financial Report

REPORT ON NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS

While the Automotive segment bucked the sector trend to continue recording revenue growth in the first half of the year, revenue in the industrial and IT infrastructure sectors was still hampered by a marked reluctance to invest in the second quarter of 2025. Our competitors in the industrial sector also recorded year-on-year revenue declines of between 10 % and 25 %.

Unlike in the first quarter, however, we are seeing the first signs of a clear improvement in revenue over the next six to 12 months, with our Industrial segment in the EMEA region recording its highest order intake for some time. Delta Logic is also performing very well since we acquired it in April, even though most of the revenue boost from integrating its products and using Softing's global distribution network is only expected over the coming year.

We are also seeing a shift in sentiment in North America, where our most important customers have become much more optimistic about the second half of the year despite the political uncertainty in this market. If this trend proves sustainable, we expect revenue in the Industrial segment in EMEA and North America to improve considerably in 2026 in particular.

In addition to strong revenue performance in the first half of the year, there are also promising business opportunities in the Automotive segment for 2026. We are currently running a number of preliminary projects that, if successful, will generate many years of profitable work in this segment.

Performance in the IT Networks segment improved markedly in EMEA but was considerably more restrained in North America in the first half of the year. This is why we continue to invest heavily in our sales channels in EMEA and have been creating incentives to buy by adding new features to all of our main revenue drivers during the first half of the year.

Consolidated revenue totaled EUR 43.9 million in the first half of 2025, down 7.2 % compared with the same period of the previous year. Other operating income amounted to EUR 1.2 million after EUR 0.8 million in the previous year. Due to the higher percentage of hardware revenue in total revenue, inventories fell by just 3.8 % from EUR 18.1 million in the previous year to EUR 17.4 million in 2025. The gross profit margin as a percentage of revenue fell slightly from 61.7 % to a healthy 60.4 % in 2025. Driven by cost-efficiency measures, personnel expenses decreased from EUR 21.7 million in 2024 to EUR 19.7 million during the current year.

The traditional product business in the Automotive segment continues on its growth trajectory, with revenue and earnings bucking what is a dramatic sense of crisis prevailing in the automotive industry. Revenue again surged by 19.1 % from EUR 13.5 million to EUR 16.1 million. Additional growth was prevented by a massive reluctance to order automotive engineering services, which saw losses despite implementing cost-efficiency measures. This resulted in EBIT in the Automotive segment of EUR 0.5 million after EUR 0.9 million in the previous year. While GlobalmatiX is experiencing growth with its key customers, new customer acquisition was disappointing in the first half of the year, as many customer projects were repeatedly postponed. Driven by the strong product business, operating EBIT in the Automotive segment still improved from EUR –0.3 million to EUR 1.2 million.

The decline in revenue in 2025 was considerable in Softing's largest segment, Industrial, with revenue dropping from EUR 30.7 million in the first half of 2024 to EUR 23.7 million in the first half of 2025. EBIT decreased from EUR 0.5 million to EUR –0.7 million, while operating EBIT fell from EUR 1.0 million to EUR 0.0 million. The figures for July were extremely pleasing, though. We expect improved revenue on the back of strong order intake in the second half of the year in the EMEA region, which should significantly boost full-year EBIT. We also anticipate a significant improvement in earnings in the North American business in the second half of the year.

As described earlier, the IT Networks segment continues to be affected by weak construction activity in almost all markets. Nevertheless, revenue increased slightly from EUR 3.5 million to EUR 3.7 million in the first half of 2025. EBIT and operating EBIT were still impacted by high development and maintenance expenses in the Company's own product portfolio. Despite year-on-year improvements of EUR –1.7 million to EUR –1.4 million in EBIT and of EUR –1.3 million to EUR –1.1 million in operating EBIT, the segment continued to depress consolidated earnings.

The Group's EBITDA fell from EUR 3.9 million to EUR 2.6 million in the first half of the year, with the EBITDA margin dropping from 8.2 % in 2024 to 5.9 % in the first half of 2025.

Operating EBIT (EBIT adjusted for capitalized development services and amortization on these as well as effects from purchase price allocation), the Group's main performance indicator, increased slightly from EUR –0.3 million to EUR 0.4 million in the first half of 2025. EBIT fell from EUR –0.4 million to EUR –1.8 million. Development costs of EUR 0.8 million were capitalized in the first half of the year. As the previous year saw a large number of new developments, these fell by around EUR 2.0 million year-on-year.

This resulted in a consolidated loss of EUR 1.9 million in the first half of 2025 after a consolidated loss of EUR 1.4 million in the previous year. Accordingly, earnings per share were EUR –0.19 in the first half of 2025, compared with EUR –0.15 in the previous year.

The Group had cash of EUR 6.5 million as of June 30, 2025, compared with EUR 9.3 million as of December 31, 2024. Cash flow from operating activities after six months totaled EUR 1.7 million after EUR 4.9 million in the prior-year period. Capital expenditure on property, plant, and equipment was made for replacement purposes and to strengthen network security in connection with the increased threat of cybercrime. Please refer to the Research and Development section for information on investments in products. Cash flow from financing activities in the amount of EUR –2.7 million was driven by the scheduled repayment of loans of EUR 1.4 million.

Overall, this translates into an equity ratio of 48.0 % as of June 30, 2025 (48.4 % as of June 30, 2024).

RESEARCH AND PRODUCT DEVELOPMENT

In the first six months of 2025, Softing capitalized internal expenses of EUR 0.8 million (after EUR 2.8 million in the previous year) for the development of new products and the enhancement of existing ones. New and improved products will be launched by all segments in the second half of 2025. Further development services for product maintenance were expensed.

EMPLOYEES

As of June 30, 2025, the Group had 412 employees (previous year: 443). No stock options were issued to employees in the reporting period.

RISKS AND OPPORTUNITIES FOR THE COMPANY'S FUTURE DEVELOPMENT

As of the reporting date of June 30, 2025, the Company's risk and opportunity structure had not deviated significantly from the description in the consolidated financial statements for the year ended December 31, 2024. Material changes are also not expected for the remaining six months of 2025. For more detailed information, we refer to our Group Management Report in the 2024 Annual Report, page 8 et seq.

SUBDUED INDUSTRIAL ECONOMIC DEVELOPMENT AND RECESSION SCENARIO

The persistently weak economic environment in Germany, Europe and the USA adversely impacted Softing's operating performance in the first half of the year. Inflation continued to decline due to falling energy and producer prices, giving the ECB opportunities to cut interest rates. Although the prospect of an economic recovery remained very difficult to assess in the first half of the year, initial improvements seen in order intake over the past three months contribute to a brighter economic outlook for 2026.

In risk management terms, this still means that Softing is implementing measures aimed at improving profitability – first and foremost cost-cutting programs. In spite of the steps taken, the risks cannot be controlled completely. We do not anticipate a significant loss of revenue that is not directly realizable because most of our products cannot be replaced in the short term in our customers' value chains. Increased marketing activities will also result in higher revenue in regions that Softing has yet to fully develop. These products and a stronger regional focus are the backbone of business in the Industrial segment and will further stabilize its revenue position.

Geopolitical uncertainty caused by Russia's war of aggression, and terror and war in the Middle East remains a concern. Because Softing AG's customer base is essentially limited to Western countries, we do not fear any direct negative impacts from this on our business model.

The Group takes the issue of cyber security and the potential widening of hostilities in this area extremely seriously. The current recommendations of the authorities are being reviewed and implemented taking into account the situation at Softing. Softing is in the process of liaising with other companies to determine its own position. Softing continues to invest substantial sums in cyber security and provides its staff with regular training on the subject. As no company is immune from a cyber attack, it is essential to ensure that resilience and recoverability are built into IT systems and that all employees remain vigilant.

We do not currently see a triggering event necessitating an unscheduled impairment test, but we, too, are monitoring the situation closely nonetheless.

However, as a development and distribution company, Softing is directly dependent on sufficient electricity supplies. Prolonged electricity supply outages would bring its business activities to a standstill.

Overall, we are currently still expecting results of operations to improve slightly in the second half of the year. For information on other risks and opportunities, we refer to the Group Management Report in the 2024 Annual Report, page 20 et seq.

IMPACT ON NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS

As of June 30, 2025, the Softing Group has cash and cash equivalents of EUR 6.5 million, current receivables of EUR 12.2 million and agreed but not yet drawn down credit lines of around EUR 8.2 million at its disposal. This means that the Group has up to EUR 26.9 million in near cash funds available at short notice to meet the challenges in these times of crisis.

There were no breaches of loan agreements. The banks relevant to Softing fully support the development of new technologies and products and the ongoing program to sharpen the Company's focus and reduce its costs. In addition to revenue and earnings from operations, this secures the Group's financing.

Softing continues to closely monitor its receivables management, and, with one exception, no deterioration in customer payment behavior has been observed so far. This is also due to the fact that most of Softing's customers are large international corporations with sufficient funds.

We currently expect to meet the medium to lower range of the 2025 guidance for the Group as published in the management report of the 2024 Annual Report (p. 27 et seq.).

Due to the Group's financial strength, orders on hand, strict cost discipline at all levels, additional financing options not yet utilized, and global positioning, the Executive Board sees no danger of developments threatening the continued existence of the Group as a going concern.

EVENTS AFTER THE REPORTING PERIOD

There were no events of special importance after the reporting date of June 30, 2025.

GENERAL ACCOUNTING POLICIES

The consolidated financial statements of Softing AG as of December 31, 2024 were prepared in accordance with the International Financial Reporting Standards (IFRSs) based on the guidance of the International Accounting Standards Board (IASB) applicable at the reporting date. The condensed interim consolidated financial statements as of June 30, 2025, which were prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", do not contain all of the required information in accordance with the requirements for the presentation of the annual report and should be read in conjunction with the consolidated financial statements of Softing AG as of December 31, 2024. In general, the same accounting policies were applied in the interim financial statements as of June 30, 2025 as in the consolidated financial statements for the 2024 financial year. This 2025 half-yearly report was prepared without an auditor's review.

CHANGES IN THE BASIS OF CONSOLIDATION

As of June 30, 2025, the following changes were made to the basis of consolidation compared to December 31, 2024:

ACQUISITION OF DELTA LOGIC GMBH

Softing AG acquired all shares in DELTA LOGIC Automatisierungstechnik GmbH on April 9, 2025, with commercial ownership of the business transferred to Softing on January 1, 2025. The entity was consolidated for the first time using the acquisition method in line with the provisions of IFRS 3 (Business Combinations).

The total purchase price to be paid was EUR 1,490 thousand, based on contractually defined conditions and schedules.

At the time of acquisition, the identifiable net assets of the acquired entity before purchase price adjustments totaled EUR 289 thousand.

The following material intangible assets were identified and recognized as part of the purchase price allocation (PPA):

Customer contracts totaling EUR 844 thousand with an expected useful life of 5 years
Software amounting to EUR 814 thousand, also with a useful life of 5 years

Deferred tax liabilities of EUR 465 thousand were recognized to take account of temporary differences.

Goodwill of EUR 8 thousand was recognized after deducting the fair value of net assets as well as deferred taxes. This figure reflects expected synergies, employee expertise and unidentifiable intangible assets. There is no need to have an allocated "distributable remainder" line item.

The accounting effects of the initial consolidation are presented in the consolidated statement of financial position as follows:

Assets side:

Customer contracts: EUR 844 thousand
Software: EUR 814 thousand
Goodwill: EUR 8 thousand
Total assets recognized: EUR 1,666 thousand

Liabilities side:

• Deferred tax provisions: EUR 465 thousand

Intangible assets are amortized on a straight-line basis over their respective useful lives. Goodwill is not amortized but is instead subjected to a regular impairment test pursuant to IAS 36.

DELTA LOGIC Automatisierungstechnik GmbH has not made a material contribution to consolidated revenue or consolidated profit/loss for the reporting period ended June 30, 2025 since we acquired the business on April 9, 2025. As a result, no detailed presentation of the individual amounts is provided in these interim financial statements.

SALE OF SOFTING ITALIA S.R.L.

Subsidiary Softing Italia s.r.l. was fully deconsolidated during the period under review, with commercial ownership of the shares transferred on June 30, 2025. This deconsolidation resulted from the sale of all shares in the company by parent company Softing Industrial Automation GmbH. All of the divested entity's assets and liabilities were derecognized from the consolidated financial statements upon the transfer of control.

The following assets were derecognized as part of the deconsolidation (amounts in EUR thousand):

Intangible assets: 1
Property, plant and equipment: 163
Inventories (carrying amount): 915
Trade receivables: 2,541
Current tax assets: 40
Balances with banks: 1,401
Current financial receivables: 83

In addition, contingent considerations were recognized in the amount of:

EUR 80 thousand (sales-dependent component)
EUR 410 thousand (risk provision component)

The total derecognition of assets therefore amounted to: EUR 4,654 thousand.

On the liabilities side, derecognized liabilities included (amounts in EUR thousand):

Non-current liabilities: 88
Trade payables (external): 1,438
Intercompany liabilities: 97
Liabilities from construction contracts: 10
Non-financial liabilities: 53
Financial liabilities: 113

The total derecognition of liabilities amounted to: EUR 1,799 thousand.

Deconsolidation had a EUR 2,855 thousand net effect on equity.

In addition, the sales proceeds from the equity investment exceeded the carrying amount of the net assets at EUR 777 thousand, resulting in a corresponding gain on disposal.

At Group level, other operating income resulting from deconsolidation totaled EUR 979 thousand. As a result, the deconsolidation made a oneoff positive contribution to earnings during the reporting year, which is reported under other operating income.

No non-controlling interests or currency translation differences were associated with the changes to the basis of consolidation, as both companies are located in the euro zone.

RESPONSIBILITY STATEMENT

The condensed interim consolidated financial statements for the first half of 2025 were released for publication on August 14, 2025 by resolution of the Executive Board.

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

Haar, Germany, August 14, 2025

Softing AG

Dr. Wolfgang Trier Chief Executive Officer

Ernst Homolka Executive Board member

Consolidated Income Statement

EUR thousand	01/01/ – 06/30/2025	01/01/ – 06/30/2024	04/01/ – 06/30/2025	04/01/ – 06/30/2024

Revenue	43,906	47,289	21,585	23,076
Other own work capitalized	791	2,842	326	1,475
Other operating income	1,184	795	1,088	686
Operating income	45,881	50,926	22,999	25,237
Cost of materials / cost of purchased services	–17,387	–18,070	–8,466	–9,436
Staff costs	–19,706	–21,726	–9,841	–11,172
Depreciation, amortization and impairment losses	–4,308	–4,226	–2,187	–2,185
thereof depreciation / amortization due to purchase price allocation	–912	–834	–489	–418
thereof depreciation/amortization due to lease accounting	–823	–847	–408	–415
Other operating expenses	–6,230	–7,280	–2,908	–3,325
Operating expenses	–47,631	–51,302	–23,402	–26,118

Profit / loss from operations (EBIT)	–1,750	–376	–403	–881

Interest income	1	18	0	9
Interest expense	–370	–322	–176	–216
Interest expense from lease accounting	–133	–136	–64	–74
Other finance income/finance costs	10	0	10	0

Earnings before income taxes	–2,242	–816	–633	–1,162

Income taxes	337	–549	178	–410

Consolidated profit	–1,905	–1,365	–455	–1,572

Consolidated profit attributable to:
Shareholders of Softing AG	–1,669	–1,200	–604	–1,407
Non-controlling interests	–236	–165	149	–165

Consolidated profit	–1,905	–1,365	–455	–1,572

Earnings per share (basic = diluted)	–0.19	–0.15	–0.05	–0.17
Average number of shares outstanding (basic)	9,925,881	9,015,381	9,925,881	9,015,381

Consolidated Statement of Comprehensive Income

EUR thousand	01/01/ – 06/30/2025	01/01/ – 06/30/2024	04/01/ – 06/30/2025	04/01/ – 06/30/2024

Consolidated profit	–1,905	–1,365	–455	–1,572

Items that will be reclassified to consolidated total comprehensive income:
Currency translation differences
Changes in unrealized gains / losses	–4,719	1,242	–3,091	389
Tax effect
Total currency translation remeasurements	–4,719	1,242	–3,091	389

Other comprehensive inco0me	–4,719	1,242	–3,091	389

Total Consolidated profite for the period	–6,624	–123	–3,546	–1,183

Total consolidated comprehensive income for the period attributable to:
Shareholders of Softing AG	–6,388	42	–3,694	–1,018
Non-controlling interests	–236	–165	149	–165

Total consolidated comprehensive income for the period	–6,624	–123	–3,545	–1,183

Consolidated Statement of Financial Position

as of June 30, 2025

Assets	06/30/2025 EUR (in thsds.)	12/31/2024 EUR (in thsds.)

Non-current assets
Goodwill	10,529	11,428
Other intangible assets	32,975	34,754
Property, plant and equipment	8,756	9,944
Deferred tax assets	1,281	718

Non-current assets, total	53,541	56,844









Current assets
Inventories	24,998	26,734
Trade receivables	11,026	13,249
Current financial assets	359	244
Contract assets	1,149	883
Current income tax assets	165	240
Cash and cash equivalents	6,502	9,271
Current assets	6,890	7,420

Current assets, total	51,089	58,041

Total assets	104,630	114,885

Equity and liabilities	06/30/2025 EUR (in thsds,)	12/31/2024 EUR (in thsds,)

Equity
Subscribed capital	9,926	9,926
Capital reserves	34,065	34,065
Retained earnings	5,573	11,960
Equity attributable to shareholders of Softing AG	49,564	55,951
Non-controlling interests	668	905

Equity, total	50,232	56,856

Non-current liabilities
Pensions	1,299	1,299
Long-term borrowings	5,656	7,056
Other non-current financial liabilities	10,426	10,804
Deferred tax liabilities	5,316	5,289

Non-current liabilities, total	22,697	24,448

Current liabilities

Trade payables	8,811	13,468
Contract liabilities	6,962	4,863
Provisions	78	107
Income tax liabilities	774	458
Short-term borrowings	9,334	9,351
Other current financial liabilities	4,591	4,339
Current non-financial liabilities	1,151	995

Current liabilities, total	31,701	33,581

Total equity and liabilities	104,630	114,885

Consolidated Statement of Changes in Equity

	Sub scribed capital	Capital reserves	Treasury shares		Retained earnings			Equity attributable to share holders of Softing AG	Non controlling interests	Total equity
				Net retained profits and other	Remeasure ments	Currency translation	Total
	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)
Balance as of January 01, 2025	9,926	34,065		10,897	–995	2,057	11,960	55,951	906	56,856
Consolidated profit 2025				–1,669			–1,669	–1,669	–236	–1,905
Other comprehensive income 2025						–4,719	–4,719	–4,719		–4,719
of which from remeasurements
of which currency translation						–4,719	–4,719	–4,719		–4,719
of which tax effect
Total consolidated comprehensive income for the period				–1,669		–4,719	–6,388	–6,388	–236	–6,624
Dividend payment
Purchase of own shares
Changes in minority interests
Transactions with owners in their capacity as owners
Balance as of June 30, 2025	9,926	34,065		9,228	–995	–2,662	5,572	49,563	670	50,232

	Sub scribed capital	Capital reserves	Treasury shares		Retained earnings		Equity attributable to share holders of Softing AG	Non controlling interests	Total equity
				Net retained profits and other	Remeasure ments	Currency translation	Total
	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)	EUR (in thsds.)
Balance as of January 01, 2024	9,105	31,111	–485	13,933	–517	457	13,874	53,605	690	54,295
Consolidated profit 2024				–1,200			–1,200	–1,200	–165	–1,365
Other comprehensive income 2024						1,242	1,242	1,242		1,242
of which from remeasurements
of which currency translation						1,242	1,242	1,242		1,242
of which tax effect
Total consolidated comprehensive income for the period				–1,200		1,242	42	42	–165	–123
Dividend payment				–1,172			–1,172	–1,172		–1,172
Purchase of own shares
Changes in minority interests
Transactions with owners in their capacity as owners				–1,172			–1,172	–1,172		–1,172
Balance as of June 30, 2024	9,105	31,111	–485	11,561	–517	1,699	12,744	52,475	525	53,000

Consolidated Statement of Cash Flows

EUR thousand	01/01/ – 06/30/2025	01/01/ – 06/30/2024

Cash flows from operating activities
Profit (before tax)	–2,242	–817
Depreciation, amortization and impairment losses on fixed assets	4,308	4,226
Other non-cash changes	–2,064	532
Cash flows for the period	2	3,941
Interest income / Finance income	–1	–18
Interest expense / Finance costs	370	322
Change in other and accrued liabilities	–29	–122
Change in inventories	1,736	–2,113
Change in trade receivables	2,223	–273
Changes in financial receivables and other assets	–369	489
Change in trade payables	–4,657	1,265
Changes in financial and non-financial liabilities and other liabilities	2,918	1,753
Interest received / Finance income	1	18
Income taxes paid	–519	–344
Cash flows from operating activities	1,675	4,918
Cash paid for investments in new internal product developments	–792	–2,842
Cash paid for investments in new external product developments	0	–4
Investments in other intangible assets	–470	0
Cash paid for investments in property, plant and equipment	–630	–504
Cash flows from investing activities	–1,892	–3,350
Cash paid for dividends	0	–1,172
Repayment of lease liabilities	–777	–766
Cash received from long-term bank line	0	6,000
Cash repayment of bank loans	–1,417	–3,799
Interest, lease accounting	–133	–136
Other interest paid	–370	–322
Total interest paid	–503	–458
Cash flows from financing activities	–2,697	–195
Net change in funds	–2,914	1,373
Effects of exchange rate changes on cash and cash equivalents	146	31
Cash and cash equivalents at the beginning of the period	9,270	4,859
Cash and cash equivalents at the end of the period	6,502	6,263

Consolidated Segment Reporting

	Industrial		Automotive		IT Networks		Other		Total segments		Other consolidation		Total
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in
	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)
Revenues with third parties	23,617	30,539	15,461	13,383	2,842	2,636	1,986	731	43,906	47,289	0	0	43,906	47,289
Revenues with other segments	114	184	617	115	840	890	0	0	1,571	1,189	–1,571	–1,189	0	0
Total revenue	23,731	30,723	16,078	13,498	3,682	3,526	1,986	731	45,477	48,478	–1,571	–1,189	43,906	47,289
Depreciation / amortization	–1,719	–1,875	–1,948	–1,589	–472	–606	–598	–592	–4,737	–4,662	429	436	–4,308	–4,226
Operating segment result	–1	1,048	1,177	–347	–1,142	–1,346	–498	177	–465	–469	874	122	409	–347
EBIT	–745	533	513	942	–1,377	–1,711	–469	219	–2,078	–17	327	–360	–1,750	–376
Segment assets	81,851	92,119	42,424	41,581	10,085	11,088	–9,205						–9,966 125,155 134,822 –20,526 –25,222 104,629 109,601
of which IFRS 16	2,771	3,500	715	948	135	225	2,467	3,239	6,088	7,912	0	0	6,088	7,912
Segment liabilities	16,327	21,344	26,281	25,566	12,097	11,592	53,519			54,908 108,224 113,410 –53,826 –56,810			54,398	56,600
of which IFRS 16	2,580	3,192	660	849	18	87	1,902	2,666	5,160	6,794	0	0	5,160	6,794
Capital expenditure	451	3,838	629	2,452	228	131	236	131	1,545	6,552	1,666	0	3,211	6,552

Revenue from contracts with customers recognized over time	Industrial		Automotive		IT Networks			Other	Total
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in	EUR (in
	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)	thsds.)
Point in time	22,578	29,262	8,332	7,370	2,823	2,626	1,986	731	35,719	39,990
Over time	1,038	1,276	7,130	6,013	19	10	0	0	8,187	7,299
Total	23,616	30,538	15,461	13,383	2,842	2,636	1,986	731	43,906	47,289

Geographical segments:	Revenue		Fixed assets		Additions to fixed assets
	2025	2024	2025	2024	2025	2024
	EUR	EUR	EUR	EUR	EUR	EUR
	(in thsds.)	(in thsds.)	(in thsds.)	(in thsds.)	(in thsds.)	(in thsds.)
Germany	17,412	17,326	19,790	23,056	2,895	3,241
USA	11,413	16,883	16,995	19,702	162	3,236
Other countries	15,081	13,080	15,474	16,447	154	75
Total	43,906	47,289	52,260	59,205	3,211	6,552

Directors' Holdings

Boards	Number of shares
	06/30/2025	12/31/2024
Supervisory Board
Matthias Weber (chairman), Chief Financial Officer, Holzkirchen	–	–
Andreas Kratzer (Deputy chairman), certified public accountant, Zurich, Switzerland	10,155	10,155
Dr. Klaus Fuchs (member), graduate computer scientist / graduate engineer, Helfant	278,820	278,820
Executive Board
Dr.-Ing. Dr. rer. oec. Wolfgang Trier, Munich	166,234	166,234
Ernst Homolka, Munich	10,900	10,900

Softing AG Richard-Reitzner-Allee 6 85540 Haar/ Germany

Phone +49 89 4 56 56-0 Fax +49 89 4 56 56-399 [email protected] www.softing.com

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