ATOSS Software AG — Interim / Quarterly Report 2023

Aug 11, 2023

2023 HALF-YEAR REPORT

1

Brief an die Aktionäre

Half-year Report 2023 2

ATOSS | 2023 Half-year Report

Letter to shareholders

Dear Shareholders, Ladies and Gentlemen,

ATOSS Software AG remains on course for further growth and is continuing its sustained corporate success in the first half of 2023. The consistent revenues and earnings records achieved through the highly dynamic pace of growth in the cloud are clear evidence of the success and competitive strength of ATOSS and are closely aligned with the rising demands made by companies on the digitization and optimization of their processes.

Smart.New.Work.

Since its inception, ATOSS has pursued the goal of shaping the transformation of the work environment for the benefit of companies, employees and society. Today, this task is more important than ever and its significance continues to grow in companies in the face of an ever increasing shortage of specialists and workers as well as demographic changes. Against this background, it is essential for companies of every sector and size to prioritize the digitization of their HR processes to enable them to maintain their profitable position in the market. Companies can only be successful in the market if they succeed in managing the deployment of their staff with pinpoint accuracy and responding quickly, flexibly and individually to supply and demand fluctuations.

At the same time, companies face the challenge of providing their staff with a modern, attractive and more humane working environment that meets first and foremost the growing needs of the younger generation in terms of work-life balance. ATOSS Workforce Management solutions provide companies with a suitable tool, enabling them to act compliantly, create a positive employee experience and work more transparently, efficiently and flexibly.

As the technology leader, we are proud to support companies' digital transformation in the 21st century. For this reason, we are investing in the refinement of our digital workforce management solutions.

ATOSS Workforce Management solutions provide companies with a suitable tool, enabling them to act compliantly, create a positive employee experience and work more transparently, efficiently and flexibly.

Andreas F.J. Obereder CEO | ATOSS

Growth and stability

This investment is reaping rewards – as is impressively evidenced by our revenues and earnings figures at the end of the first half of 2023. In the first six months, for example, consolidated revenues were up by a very appreciable 37 percent year-on-year to EUR 73.2 million (previous year: EUR 53.6 million). In particular, the company made significant progress in expanding its cloud business. Revenues from Cloud & Subscriptions climbed 64 percent to EUR 24.8 million (previous year: EUR 15.1 million) and now account for 34 percent of total revenues (previous year: 28 percent). The return on revenues relative to operating earnings (EBIT) as of June 30 stands at 33 percent, significantly higher than the forecast made at the start of the year of at least 27 percent for the whole of 2023.

Growth stock on the TecDAX

This growth story is also attracting attention on the capital market. For example, ATOSS Software AG was admitted to Deutsche Börse AG's TecDAX at the start of trading on May 10, 2023. This ranking positions ATOSS as one of the 30 largest companies in the technology sector by market capitalization and trading volume in the Prime Standard within the family of DAX indices. At the same time, ATOSS Software AG remains part of the SDAX. We are exceedingly delighted by this admission, not least as it represents the exchange's confirmation and recognition of our long-term corporate strategy. At the same time, however, we also see it as a strong incentive to not only continue our profitable growth in our current 18th record year in succession but also to maintain this course in future. The involvement of General Atlantic as one of the world's most successful growth equity investors offers us a major opportunity here to leverage the enormous growth potential in our market even more actively. With General Atlantic as an investor and strategic sparring partner, we will maintain our success story and secure an even more prominent position for ATOSS on the global stage within a shorter timeframe.

Reaffirmed by the outstanding business development in the first half of the year, we have raised our previous guidance for the full year 2023 and now expect total revenues of at least EUR 142 million for the current year (previously: EUR 135 million) and an EBIT margin for the year of around 30 percent (previously: at least 27 percent).

With best wishes

Andreas F.J. Obereder Dirk Häußermann Pritim Kumar Krishnamoorthy Christof Leiber CEO Co-CEO CTO CFO

Economic environment

The Germany economy has weakened appreciably in recent months and is now below its pre-Covid level. In June 2023, the ifo business climate index suffered a surprisingly sharp drop to 88.5 points from 91.5 in the previous month.¹ Industrial weakness, in particular, has left the German economy adrift in choppy waters. As a result, in the first half of the year, several economic research institutes lowered their forecasts for German economic growth for the current year. For example, most economic pandits are now expecting the German economy to stagnate in the current year. Economic recovery will essentially depend on developments in China. As of June 2023, the German inflation rate stands at 6.4 percent.²

By comparison with the overall economy, the digital economy continues to prove largely crisis-proof and is looking at the future with optimism. This is evidenced by surveys from Bitkom and the ifo Institute. The digital index jointly prepared by both organizations stood at 12.1 points in June 2023, thereby clearly outpacing the overall economy. Information technology, in particular, is benefiting from consistently strong growth rates. The digital association Bitkom is expecting growth in the software sector of around 9.6 percent to EUR 41.5 billion.³

The company

The positive growth in revenues and earnings in the first half of 2023 proves customers' continuing interest in professional workforce management solutions as well as ATOSS' competitive strength.

The long-term growth of the key financial indicators remains very pleasing and matches the forecasts announced by the company.

1 ifo business climate index for Germany – results of ifo's economic surveys in June 2023; June 26, 2023

• 2 DESTATIS Federal Statistical Office; Press Release No. 255 dated June 29, 2023
• 3 Bitkom Press Release July 5, 2023 Digital sector shows stable growth in tough environment

in Mio. EUR

Software

revenues

* Pursuant to IAS 33.64, earnings per share (EPS) were adjusted retroactively for previous periods due to the stock split carried out in June 2020

Facts and figures at a glance

70.0

in Mio. EUR

Consolidated overview pursuant to IFRS

1 Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date 2 Dividend of EUR 2.83 on 05/04/2023 (KEUR 22,507) Dividend of EUR 1.82 on 05/04/2022 (KEUR 14,475) 3 at the end of the quarter/year

Half-year comparison in KEUR

	01/01/2023 - 06/30/2023	Proportion of total revenues	01/01/2022 - 06/30/2022	Proportion of total revenues	Change 2023 / 2022
Total revenues	73,249	100%	53,573	100%	37%
Software	51,807	71%	36,532	68%	42%
Licenses	9,332	13%	6,084	11%	53%
Maintenance	17,688	24%	15,369	29%	15%
Cloud & Subscriptions	24,787	34%	15,079	28%	64%
Consulting	16,400	22%	13,812	26%	19%
Hardware	3,359	5%	1,986	4%	69%
Others	1,682	2%	1,243	2%	35%
EBITDA	26,152	36%	15,813	30%	65%
EBIT	24,208	33%	13,853	26%	75%
EBT	24,389	33%	12,434	23%	96%
Net profit	16,189	22%	8,294	15%	95%
Cash flow	25,123	34%	8,120	15%	209%
Liquidity 1/2	56,887		40,605		40%
EPS in euro	2.04		1.04		95%
Employees 3	735		650		13%

Quarterly growth in KEUR

	Q2/23	Q1/23	Q4/22	Q3/22	Q2/22
Total revenues	37,026	36,223	32,033	28,310	27,571
Software	26,594	25,213	22,123	19,738	19,438
Licenses	4,647	4,685	3,651	2,872	4,036
Maintenance	8,917	8,771	8,357	7,906	7,645
Cloud & Subscriptions	13,030	11,757	10,115	8,960	7,757
Consulting	8,063	8,337	7,671	6,632	6,584
Hardware	1,565	1,794	1,388	1,102	915
Others	803	879	851	838	633
EBITDA	13,580	12,572	10,143	8,751	8,833
EBIT	12,615	11,593	9,186	7,763	7,843
EBIT margin in %	34%	32%	29%	27%	28%
EBT	12,727	11,662	8,949	7,927	7,143
Net profit	8,458	7,731	5,628	5,455	4,749
Cash flow	1,618	23,505	1,707	16,534	2,060
Liquidity 1/2	56,887	78,951	56,827	56,242	40,605
EPS in euro	1.07	0.97	0.71	0.68	0.60
Employees 3	735	715	693	679	650

Corporate Social Responsibility is an integral part of ATOSS' vision and has shaped our actions since its foundation. We want to create a world of work in which everybody benefits sustainably and long-term.

Christof Leiber CFO | ATOSS

ATOSS on the capital markets

In spite of numerous economic and geopolitical uncertainties, the first half of the year delivered eminently positive results on the stock markets. The leading German index grew 16 percent in the first six months. Analysts are generally more skeptical with regard to the second half of the year as inflation, the monetary policy of the central banks, recession worries, uncertain corporate outlooks, the war in Ukraine and international tensions are likely to continue to have a major impact on developments on the global exchanges.¹

Against this background, the share price of the ATOSS stock has risen by almost 50 percent since the start of trading on January 2, 2023 from EUR 139.2 to EUR 207.5 on June 30, 2023. The ATOSS share also still looks strong across a longer time frame: from 2013 to the end of June 2023, the share price has risen by 1,876 percent. By way of comparison, the DAXsubsector Software Performance-Index was only able to grow by 137 percent over the same period. Over the same period, the two indices SDAX and TecDAX on which ATOSS Software AG is traded also showed considerably lower increases of 154 percent and 285 percent respectively. The ATOSS stock has therefore significantly outperformed all three indices and grown faster than the market by an appreciable factor.

Dividend policy

Every year, ATOSS Software AG distributes around 75 percent of its earnings per share to its shareholders assuming there are corresponding profits to be distributed. The company has been systematically pursuing this transparent policy since 2003 having adjusted the dividend rate from 50 to 75 percent in 2020. In addition, financial years 2006, 2013, 2016, 2019 and 2023 were capped off with attractive special dividends. In total, long-term shareholders of ATOSS have received dividends of EUR 20.48 per share since the company went public.²

Given this distribution policy – in combination with highly positive earnings growth – ATOSS will retain its positioning in future as a technology company offering an attractive and reliable dividend return, as well as consistently positive development, plus the growth opportunities on offer.

Investor Relations

Share price movements 01/2013 – 06/2023

DAXsubsector Software Performance-Index

Quarterly comparison in EUR

	Q2/23	Q1/23	Q4/22	Q3/22	Q2/22
High	217.5	174.2	164	162	184.4
Low	163.2	130	111.2	109.6	118.8
Share price at the end of the quarter	207.5	166.6	139.2	114.8	121
Dividend per share 2	2.83	0	0	0	1.82
Cash flow per share	0.20	2.96	0.21	2.08	0.26
Liquidity per share 1/2	7.15	9.93	7.15	7.07	5.11
EPS	1.07	0.97	0.71	0.68	0.60
EPS (diluted)	1.07	0.97	0.71	0.68	0.60

1 Cash and cash equivalents, other current and non-current financial assets (deposits, gold) as of the reference date, adjusted for borrowings (loans) 2 Dividend of EUR 2.83 per share on 05/04/2023 (KEUR 22,507); dividend of EUR 1.82 per share on 05/04/2022 (KEUR 14,475)

• 1 Manager Magazin Online 06/30/2023 What the first half of the year delivered on the stock exchanges and what's in the offing in the second
• 2 For greater comparability, the figures shown are after the stock split carried out on June 19, 2021.

TecDAX

The previous majority shareholder of ATOSS Software AG, AOB Invest GmbH, which is controlled by the founder and CEO of ATOSS Software AG, Andreas F. J. Obereder, sold 20 percent of its shares in ATOSS Software AG to General Atlantic with effect from June 30, 2023. Since the sale, AOB Invest GmbH holds a share of 30.000028 percent in ATOSS Software AG

Admission to the TecDAX

ATOSS Software AG was admitted to Deutsche Börse AG's TecDAX at the start of trading on May 10, 2023. The TecDAX comprises the 30 largest companies in the technology sector by market capitalization and trading volume in the Prime Standard within the family of DAX indices. At the same time, ATOSS Software AG remains part of the SDAX.

Analysts praise the excellent business development in the first half of the year with a slight increase in the forecast

Shareholder structure* 50.01% Free float 19.99% General Atlantic Chronos GmbH 30.00% AOB Invest GmbH

For the analysts from Warburg Research and Hauck & Aufhäuser, ATOSS was once again able to impress with strong business figures in the first half of the year. In addition to new records in revenues and earnings and a slight increase in the forecast, the impressive expansion of cloud activities was particularly highlighted. Against this background, the price target was raised several times by the analysts at Warburg Research, most recently when the ad-hoc report on the results of the first half of the year was presented and the associated increase in the forecast to EUR 230. In view of the slight increase in the forecast for the 2023 financial year, the Warburg analysts continue to rate the ATOSS share as "buy" because of the consistently strong figures and the growth momentum, which is also estimated to be high in the long term. The analysts at Hauck & Aufhäuser come to the same conclusion and continue to rate the share as "buy" after raising the price target to EUR 221 in July.

Further information: www.atoss.com/en/company/investor-relations/stock

*Direct shareholdings as of 06/30/2023

1. Business and operating conditions: The global economy's recovery proving slow

Important factors which played a major part in the slowdown of the global economy last year improved significantly at the start of the year. For example, falling energy prices, a drop in overall inflation and China's renunciation of its zero Covid policy contributed to a slow economic recovery.¹ The OECD believes the global economy is now over the worst even if the path to powerful, sustainable growth is likely to still be a long one.

After the end of the coronavirus pandemic, the economy is also gradually hitting its stride again in the Eurozone.¹ According to a forecast from the EU Commission, the economy will grow modestly but on a stable basis in the current year. The Commission is expecting average growth across the 27 EU member states of one percent and an increase of 1.1 percent for the euro currency area.² In the early summer, the German economy continues to find itself in choppy waters. After two quarters of negative growth in succession in the six winter months of 2022/23, the latest economic indicators are pointing to a modest start to the second quarter. In particular, the negative effects of energy price rises, global economic weakness and unfavorable financing conditions are still making themselves felt, delaying economic recovery.³

By comparison with the overall economy, the ICT sector continues to operate at a significantly higher level and benefit from full order books. Companies in the IT and telecommunications sector assess their business position as good overall as surveys conducted by Bitkom and the ifo Institute continue to show. The digital index jointly prepared by both organizations stood at 12.1 points in June, leaving the overall economy – once again under water at -6.6 points according to ifo – trailing in its wake.⁴

Against this backdrop, ATOSS recorded very pleasing business development in the first half of 2023, with revenues growth of 37 percent as well as a rise in operating earnings (EBIT) of around 75 percent. This business growth is primarily due to the sustainable expansion of its cloud business and the increasing share of recurring revenues as a direct result.

Group interim management report

1 Kiel Economic Reports – Global Economy in Summer 2023 No. 103 (2023 I Q2)

• 2 European Commission: Spring 2023 Economic Forecast: an improved outlook amid persistent challenges
• 3 Federal Ministry for Economic Affairs and Climate Protection Press Release dated 06/14/2023:

2. Earnings: Strong performance in the first half of the year

In the first half of fiscal 2023, ATOSS boosted overall revenues by 37 percent to EUR 73.2 million (previous year: EUR 53.6 million). Of this amount, software revenues contributed a 42 percent increase in revenues totaling EUR 51.8 million (previous year: EUR 36.5 million). Driven by the dynamic expansion of the cloud business, revenues from Cloud & Subscriptions were up by 64 percent to EUR 24.8 million (previous year: EUR 15.1 million) and now account for 34 percent of total revenues (previous year: 28 percent). Moreover, the revenues record in software in the first half of the year is also due in particular to the significant increase in non-recurring revenues of on-premises licenses compared with the first half of the previous year. Together with the 15 percent rise in software maintenance revenues amounting to EUR 17.7 million (previous year: EUR 15.4 million), recurring revenues advanced year-on-year by 40 percent, reaching EUR 42.5 million (previous year: EUR 30.4 million). Notwithstanding the strong increase in software licenses revenues, the share of recurring revenues from cloud and maintenance in total revenues remained stable at 58 percent (previous year: 57 percent). In the first six months consulting services revenues expanded to EUR 16.4 million (previous year: EUR 13.8 million).

In spite of a year-on-year rise in R&D expenditure as a result of extending our technological lead and steadily expanding personnel, operating earnings (EBIT) grew by EUR 10.4 million to reach EUR 24.2 million. The EBIT margin amounts to 33 percent (previous year: 26 percent) and has thus far outstripped the forecast made at the start of the year for the whole of 2023 of at least 27 percent.

Earnings before taxes (EBT) were 96 percent higher at EUR 24.4 million (previous year: EUR 12.4 million). Net income for the first half of the year amounted to EUR 16.2 million (previous year: EUR 8.3 million). Earnings per share increased from EUR 1.04 to EUR 2.04.

Overall, the Group's order situation is robust despite the clouding of the economic environment. This is based on the significantly higher than planned order intake in the previous year, which more than compensates for the slight weakening of demand in the first half of 2023 compared to prior year period. This is reflected in a cloud order backlog of EUR 56.3 million (December 31, 2022: EUR 43.3 million) and in an on-premises order backlog of EUR 5.9 million (December 31, 2022: EUR 7.3 million). The cloud order backlog shows revenues from contractually secured cloud usage fees within the next 12 months. Cloud Annual Recurring Revenues (in short: ARR) increased by 25 percent to a total of EUR 51.5 million (December 31, 2022: EUR 41.0 million). Total ARR (consisting of cloud usage fees and maintenance revenues) trended upwards to EUR 87.1 million as of June 30, 2023 (December 31, 2022: EUR 74.8 million).

3. Net assets and financial positione

In the first six months of the year, cash flow from operations totaled EUR 25.1 million (previous year: EUR 8.1 million). Liquidity (cash and cash equivalents less borrowings) increased compared with the previous year period from EUR 23.7 million to EUR 26.8 million. The overall position comprising liquidity and other current and non-current financial assets increased from EUR 40.6 million to EUR 56.9 million over the prior year comparative period in spite of the dividend payment of EUR 22.5 million (EUR 2.83 per share) at the beginning of May 2023. Liquidity per share as of June 30, 2023 including these other current and non-current financial assets and adjusted for borrowings stood at EUR 7.15 (previous year: EUR 5.11).

The principal factors which impacted positively on cash flow from operations include net income and the increase in contractual liabilities. Effects that reduced cash flow derived primarily from the reduction in other current financial and non-financial liabilities as a result of the payment of salaries and commissions.

The positive cash flow from investing activities results from the reversal of fixed-term deposits in an amount of EUR 2.5 million (previous year: EUR 11.5 million). The acquisition of fixed assets (EUR 1.3 million; previous year: EUR 0.4 million) had a negative impact on the cash flow from investing activities.

Furthermore, the payment of a dividend of EUR 2.83 (previous year: EUR 1.82) per share – i.e. total amount distributed of EUR 22.5 million (previous year: EUR 14.5 million) and the repayment of lease liabilities in an amount of EUR 1.4 million (previous year: EUR 1.4 million) had the effect of reducing liquidity.

As of June 30, 2023, ATOSS is reporting an equity ratio of 46 percent (previous year: 47 percent).

Thanks to its overall good earnings position and continuing sound financial position, the company expects its ability to meet its financial commitments to remain unchanged in the future.

4. Product development

Research and development remains an important element in ATOSS' growth strategy with the objective of further expanding its strong positioning as the technology leader in workforce management. Research and development costs in the first six months were up by 23 percent compared with the previous year and stood at EUR 11.5 million as of June 30, 2023 (previous year: EUR 9.3 million). R&D costs as a proportion of overall revenues amounted to 16 percent (previous year: 17 percent).

The company continues to refrain from capitalizing the expense of developing product innovations. All such expenses are recognized in profit or loss in the period in which they are incurred.

5. Employees

The number of employees rose to 735 compared with 650 in the previous year. As of June 30, 2023, ATOSS Software AG employed 283 staff in Development (previous year: 225), 171 in Consulting (previous year: 182), 171 in Sales and Marketing (previous year: 151) and 110 in Administration (previous year: 92).

Personnel costs for the current financial year totaled EUR 34.4 million on June 30, 2023 (previous year: EUR 28.7 million).

6. Report on opportunities and risks

The consolidated management report as of December 31, 2022 describes the risks and opportunities that might have a material impact on the financial position and financial performance of ATOSS Software AG. In addition, it also includes a description of the structure of the risk management system.

In the course of the first half of 2023, no significant changes occurred in the overall risk position including risks resulting from the uncertainty in the global economy and on the financial markets as a consequence of the war in Ukraine. Negative effects from this war on revenues growth, production processes as well as purchasing and distribution processes and resulting price increases in commodities, energy and intermediate goods, remain on the cards. All of this could lead to further upheavals in the global economy and on the currency, capital and foreign exchange markets and consequently also affect the investment behavior of our customers. As a matter of principle, ATOSS Software AG does not maintain any business relationships in Russia or Ukraine. However, we continue to pay close attention to the economic, political, geopolitical and regulatory environment to enable us to thus quickly detect changes, evaluate potential effects on the results of operations, financial position and net assets, assess risks and adjust our actions accordingly.

The market risk associated with financial assets available for sale largely concerns the fair value of existing investments in investment funds and the company's gold holdings, which stood at EUR 5.1 million and EUR 3.0 million respectively as of June 30, 2023, and this risk is dependent on the performance of the share price and movements in the gold price moving forward.

7. Outlook

ATOSS Software AG can look back on an exceptionally successful first half of the year with new records set in revenues and earnings. Consequently, ATOSS remains a guarantor of growth and stability and, with its business model, is excellently positioned to continue growing in the future in the very attractive growth markets revolving around workforce management and digitization across all customer segments. This position is based on a clear vision and strategy, forward-looking technologies, and solutions that generate sustainable added value for the company's customers.

Reaffirmed by the outstanding business development in the first half of the year, the Management Board has raised its previous guidance for the full year 2023 and now expects total revenues of at least EUR 142 million for the current year (previously: EUR 135 million) and an EBIT margin for the year of around 30 percent (previously: at least 27 percent).

Consolidated Balance Sheet as of 06/30/2023

Assets (EUR)	06/30/2023	12/31/2022
Non-current assets
Intangible assets	250,735	160,302
Property, plant and equipment	4,190,786	3,585,518
Rights of use	8,072,802	9,574,749
Capitalized contract costs	4,466,217	4,858,064
Other non-current financial assets and precious metals	1,346,756	1,317,666
Total non-current assets	18,327,296	19,496,299
Current assets
Trade receivables	10,469,759	10,129,556
Other current financial assets	26,971,373	29,294,487
Other current non-financial assets	5,574,220	4,662,823
Cash and cash equivalents	29,113,977	26,757,678
Total current assets	72,129,329	70,844,544
Total assets	90,456,625	90,340,843

Equity and liabilities (EUR)	06/30/2023	12/31/2022
Equity
Subscribed capital	7,953,136	7,953,136
Capital reserve	387,244	202,206
Equity deriving from unrealized profits/losses	78,726	78,726
Unappropriated net income	33,146,536	39,464,522
Equity attributable to the equity holders of the parent company	41,565,642	47,698,590
Non-controlling interests	-109,013	-109,013
Total equity	41,456,629	47,589,577
Non-current liabilities
Pension provisions	2,545,150	2,409,757
Other non-current provisions	1,769,149	1,184,028
Non-current leasing liabilities	8,208,354	9,640,601
Deferred tax liabilities	1,518,522	944,879
Total non-current liabilities	14,041,175	14,179,265
Current liabilities
Trade accounts payable	1,179,481	1,743,384
Contractual liabilities	10,298,059	4,156,084
Current leasing liabilities	450,410	610,001
Other current financial liabilities	4,980,506	4,678,801
Other current non-financial liabilities	13,655,075	15,847,592
Tax liabilities	4,323,929	1,464,778
Other provisions	71,361	71,361
Total current liabilities	34,958,821	28,572,001
Total equity and liabilities	90,456,625	90,340,843

Consolidated Income Statement from 01/01/2023 to 06/30/2023

	Quarterly report		6-month report
EUR	04/01/2023 - 06/30/2023	04/01/2022 - 06/30/2022	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022
Sales revenues	37,025,663	27,570,715	73,248,739	53,573,398
Cost of sales	-8,348,344	-7,169,805	-17,546,993	-14,794,936
Gross profit on sales	28,677,319	20,400,910	55,701,746	38,778,462
Distribution costs	-6,709,135	-5,451,543	-12,920,388	-10,852,295
Administration costs	-3,424,521	-2,388,010	-6,696,024	-4,896,603
Research and development costs	-5,923,876	-4,760,044	-11,521,662	-9,349,548
Other operating income	118,828	100,958	183,644	272,886
Other operating expenses	-113,514	-57,326	-156,616	-96,667
Net impairment on financial assets	-10,592	-1,526	-382,509	-2,908
Operating profit	12,614,509	7,843,419	24,208,191	13,853,327
Interest and similar income	301,183	139,570	429,632	455,230
Interest and similar expenses	-189,625	-839,603	-248,739	-1,874,224
Earnings before taxes	12,726,067	7,143,386	24,389,084	12,434,333
Taxes on income and earnings	-4,267,885	-2,393,906	-8,199,695	-4,139,986
Net income for the year	8,458,182	4,749,480	16,189,389	8,294,347
Attributable:
Equity holders of the parent	8,458,182	4,749,480	16,189,389	8,294,347
Non-controlling interests:	0	0	0	0
Earnings per share (undiluted)	1.06	0.60	2.04	1.04
Earnings per share (diluted)	1.06	0.60	2.04	1.04
Average number of shares in circulation (undiluted)	7,953,136	7,953,136	7,953,136	7,953,136
Average number of shares in circulation (diluted)	7,953,136	7,953,136	7,953,136	7,953,136

Consolidated Statement of Comprehensive Income from 01/01/2023 to 06/30/2023

EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022
Period net income	16,189,389	8,294,347
Components not reallocated in profit and loss	0	0
Other comprehensive income for the period after taxes	0	0
Comprehensive income after taxes	16,189,389	8,294,347

Consolidated Cash Flow Statement from 01/01/2023 to 06/30/2023

EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022
Earnings before taxes	24,389,084	12,434,333
Depreciation	1,943,663	1,960,267
Interest and similar income	-429,633	-478,235
Interest and similar expenses	197,733	1,897,228
Non-cash personnel expenses	185,038	246,676
Change in net current assets
Trade receivable	-340,204	1,840,765
Inventories and other non-financial assets	-656,481	476,444
Capitalized contract costs	391,847	-940,123
Other assets	-7,125	0
Trade accounts payable	-563,903	279,859
Other current financial and non-financial liabilities	-1,305,690	-4,447,447
Other provisions	0	42,500
Contractual liabilities	6,141,975	2,762,747
Interest received Income taxes received	140,697 53,003	111,220 3,579
Income taxes paid	-5,017,480	-8,069,894
Cash flow generated from operating activities (1)	25,122,524	8,119,919
Cash flow from investment activities
Expenditure for the purchase of tangible and intangible assets	-1,261,069	-401,708
Expenditure for the purchase of financial assets	0	-34,431
Proceeds from the disposal of financial assets	2,473,200	11,511,050
Cash flow generated from investment activities (2)	1,212,131	11,074,911
Cash flow from financing activities
Redemption element leasing liabilities IFRS 16	-1,443,244	-1,375,526
Interest element leasing liabilities IFRS 16	-78,744	-52,585
Dividends paid	-22,507,375	-14,474,708
Cash flow generated from financing activities (3)	-24,029,363	-15,902,819
Changes in cash and cash equivalents – total (1) to (3)	2,305,477	3,292,011
Cash and cash equivalents at the beginning of the period	26,757,678	20,452,712
Effects of exchange rate changes on cash and cash equivalents	51,007	0

Cash and cash equivalents at the end of the period 29,113,977 23,744,723

Statement of Changes in Consolidated Equity as of 06/30/2023

		of the parent company	Equity attributable to the properties
	Subscribed capital	Capital re serve	Equity deriving from unrealized gains/losses	Unappro priated net income	Non controlling interests	Total
01/01/2022	7,953,136	-291,146	-2,671,898	34,561,783	-109,013	39,442,862
Period net income				8,294,347		8,294,347
Other comprehensive income of the period			0			0
Comprehensive income of the period after taxes			0	8,294,347		8,294,347
non-controlling interests		246,676				246,676
Dividend				-14,474,708		-14,474,708
06/30/2022	7,953,136	-44,470	-2,671,898	28,381,422	-109,013	33,509,177
01/01/2023	7,953,136	202,206	78,726	39,464,522	-109,013	47,589,577
Period net income				16,189,389		16,189,389
Other comprehensive income of the period			0			0
Comprehensive income of the period after taxes			0	16,189,389		16,189,389
non-controlling interests		185,038				185,038
Dividend				-22,507,375		-22,507,375

Equity attributable to the properties of the parent company
EUR	Subscribed capital	Capital re serve	Equity deriving from unrealized gains/losses	Unappro priated net income	Non controlling interests	Total
01/01/2022	7,953,136	-291,146	-2,671,898	34,561,783	-109,013	39,442,862
Period net income				8,294,347		8,294,347
Other comprehensive income of the period			0			0
Comprehensive income of the period after taxes			0	8,294,347		8,294,347
Transactions with non-controlling interests		246,676				246,676
Dividend				-14,474,708		-14,474,708
06/30/2022	7,953,136	-44,470	-2,671,898	28,381,422	-109,013	33,509,177
01/01/2023	7,953,136	202,206	78,726	39,464,522	-109,013	47,589,577
Period net income				16,189,389		16,189,389
Other comprehensive income of the period			0			0
Comprehensive income of the period after taxes			0	16,189,389		16,189,389
Transactions with non-controlling interests		185,038				185,038
Dividend				-22,507,375		-22,507,375
06/30/2023	7,953,136	387,244	78,726	33,146,536	-109,013	41,456,629

1. General information

The present condensed, consolidated half-year financial statements as at June 30, 2023 were prepared in compliance with the regulations of IAS 34. The requirements of the German Accounting Standard (DRS) No. 16 for interim reporting were also met.

The consolidated half-year financial statements do not comprise all the disclosures in the notes that financial statements for a full financial year usually include. The present consolidated half-year financial statements must therefore be read in conjunction with the consolidated financial statements for the financial year ending on December 31, 2022.

The accounting policies adopted correspond to those for the prior financial year and the associated interim reporting period.

The indicators covered in the report have been rounded to the nearest whole number. Rounded figures can occasionally cause numbers in this report not to add up exactly to the total given and percentages not to match the values presented.

The Management Board is satisfied that the net assets, financial position and results of operations portrayed in the present consolidated half-year financial statements as well as the cash flows convey a true and fair picture of the company's financial position. The present half-year financial report was not subjected to a review by the auditor nor to a full audit of the financial statements.

2. Reporting period

These condensed, consolidated half-year financial statements were prepared as of June 30, 2023 for the reporting period from January 1, 2023 to June 30, 2023.

3. Currency

All figures are stated in euros. Amounts are rounded up to whole euro units.

Notes to the consolidated half-year financial statements

4. Consolidated group

In addition to the parent company, ATOSS Software AG, Munich, these consolidated half-year financial statements as of June 30, 2023 also include all subsidiary companies:

ATOSS CSD Software GmbH, Cham, Germany (100%) ATOSS Software Ges. mbH, Vienna, Austria (100%) ATOSS Software AG, Zurich, Switzerland (100%) ATOSS Software S.R.L., Timisoara, Romania (100%) ATOSS Aloud GmbH, Munich, Germany (93%) ATOSS North America Inc., West Hollywood, USA (100%)

The companies are fully consolidated. ATOSS Software AG, Munich, prepares the consolidated financial statements for the smallest and largest consolidated group.

5. Financial liabilities

As of June 30, 2023, the contractual maturities of the Group's non-derivative financial liabilities were as follows:

Contractual maturities of financial liabilities in EUR	Up to 3 months	3 months to 1 year	Over 1 year	Total contractual cash flows	Carrying amounts of liabilities
As of 06/30/2023
Trade accounts payable	1,179,481	0	0	1,179,481	1,179,481
Lease liabilities	702,267	1,976,479	6,278,540	8,957,286	8,658,764
Total non-derivatives	1,881,748	1,976,479	6,278,540	10,136,767	9,838,245

As of 06/30/2022

Total non-derivatives	2,054,367	1,932,581	8,311,581	12,298,529	12,211,829
Lease liabilities	730,349	1,932,581	8,311,581	10,974,512	10,887,811
Trade accounts payable	1,324,018	0	0	1,324,018	1,324,018

6. Changes in equity

The development in equity is evident from the statement of changes in consolidated equity.

The share capital of ATOSS Software AG as of June 30, 2023 amounted to EUR 7,953,136 (12/31/2022: EUR 7,953,136) and is divided into 7,953,136 bearer shares. Each share represents EUR 1.00 of the share capital.

7. Sales revenues

The company's sales revenues in the first half of the year are composed as follows:

Total sales revenues The geographic breakdown of sales revenues was as follows:	73,248,739	53,573,398
Others	1,682,209	1,244,357
Hardware	3,359,236	1,985,595
Consulting	16,400,063	13,811,521
Total software	51,807,231	36,531,925
Cloud & Subscriptions	24,787,065	15,078,977
Maintenance	17,688,372	15,368,782
Licenses	9,331,794	6,084,166
EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022

Total sales revenues	73,248,739	53,573,398
of which other countries	3,761,058	3,067,924
of which Switzerland	2,821,275	2,574,857
of which Austria	4,556,687	3,596,050
Abroad	11,139,020	9,238,831
Domestic	62,109,719	44,334,567
EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022

The sales revenues were distributed between product groups as follows:

EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	60,831,161	44,717,305
ATOSS Time Control (ATC)	10,506,685	7,677,014
Crewmeister	1,910,893	1,179,079
Total sales revenues	73,248,739	53,573,398

8. Personnel expenses

Consolidated personnel expenses in the first half of the year are composed as follows:

EUR	01/01/2023 - 06/30/2023	01/01/2022 - 06/30/2022
Wages and salaries	29,593,747	24,187,909
Social security contributions and expenditure on retirement pensions and welfare	4,838,376	4,467,355
Total personnel expenses	34,432,123	28,655,264

9. Other operating income and expenses and net impairments on financial assets

Other operating income in the amount of EUR 183,644 (previous year: EUR 272,886) essentially includes income from exchange rate differences of EUR 141,627 (previous year: EUR 152,536).

Other operating expenses amounting to EUR 156,616 (previous year: EUR 96,667) essentially comprise expenses from exchange rate differences in the amount of EUR 120,437 (previous year: EUR 96,667). Net impairments on financial assets relate to trade receivables in the amount of EUR 382,509 (previous year: EUR 2,908).

10. Financial income and expenses

The financial investment income in the amount of EUR 429,632 (previous year: EUR 455,230) relates essentially to income from fixed-term deposits as well as investments of credit balances with banks in the amount of EUR 224,803 (previous year: EUR 5,136), income from the write-up of the Group's gold holdings in the amount of EUR 85,465 (previous year: EUR 260,335) as well as income deriving from the valuation of investment funds in the amount of EUR 49,787 (previous year: Expenses from the valuation and losses from the sale of investment funds amounting to EUR 1,768,286).

As of June 30, 2023, the Group has recorded financial expenses amounting to EUR 248,739 (previous year: EUR 1,874,224). These expenses constitute interest expenses as part of the pension provision of EUR 118,683 (previous year: EUR 53,349), finance costs in connection with accounting for lease liabilities under IFRS 16 amounting to EUR 78,744 (previous year: EUR 52,585), as well as expenses from the revaluation of a fixed-term deposit in US dollars in the amount of EUR 51,007 (previous year: write-up in the amount of EUR 111,220).

11. Earnings per share

Earnings per share is calculated by dividing the net result of EUR 16,189,389 (previous year: EUR 8,294,347) by the weighted average number of shares outstanding. As of June 30, 2023, the average number of shares in circulation amounted to 7,953,136. Earnings per share in the first half of the year amount to EUR 2.04 (previous year: EUR 1.04).

12. Employees

As of June 30, 2023 the Group has 735 employees (previous year: 650).

Total	735	650
Administration	110	92
Sales and marketing	171	151
Consulting	171	182
Development	283	225
	06/30/2023	06/30/2022

13. Management Board

Members of the Management Board as of June 30, 2023:

Andreas F. J. Obereder	CEO
Dirk Häußermann	Co-CEO
Pritim Kumar Krishnamoorthy	CTO
Christof Leiber	CFO

14. Supervisory Board

Following a resolution of the annual general meeting on April 28, 2023, the Supervisory Board was re-elected and is comprised as follows:

Moritz Zimmermann	Chairman
Rolf Baron Vielhauer von Hohenhau	Deputy Chairman
Klaus Bauer	Member of the Supervisory Board and Chairman of the audit committee

15. Board members' shareholdings

As of June 30, 2023, the following board members held the following volumes of ATOSS shares:

EUR	06/30/2023
Andreas F.J. Obereder (CEO)	2,385,943
Dirk Häußermann (Co-CEO)	3,400
Pritim Kumar Krishnamoorthy (CTO)	1,140
Moritz Zimmermann (Chairman of the Supervisory Board)	10,928
Total	2,401,411

After his sale of 1,590,627 shares to General Atlantic Chronos GmbH, Munich, on June 30, 2023, the majority shareholder, Andreas F.J. Obereder of Grünwald, holds 2,385,943 shares representing 30.000028 percent of the shares in ATOSS Software AG via AOB Invest GmbH, Grünwald, in which he owns 100 percent of the shares.

16. Notifiable participating interests

In the first six months of financial year 2023, the company received the following notifications regarding changes in participating interests pursuant to Sections 33 ff. of the German Securities Trading Act (WpHG):

On January 3, 2023, the shareholding of Barclays Plc, London, Great Britain, fell below the voting rights threshold of 3 percent of the share capital of ATOSS Software AG as a result of the sale of shares and amounted to 1.07 percent at this time.

On February 23, 2023, the shareholding of MainFirst SICAV, Strassen, Luxembourg, fell below the voting rights threshold of 3 percent of the share capital of ATOSS Software AG as a result of the sale of shares, and amounted to 2.70 percent at this time.

On June 30, 2023, the shareholding of AOB Invest GmbH, Munich, fell below the voting rights threshold of 50 percent of the share capital of ATOSS Software AG as a result of the sale of shares, and amounted to 30.000028 percent at this time. At the same time, the shareholding of General Atlantic Chronos GmbH, Munich, exceeded the voting rights threshold of 15 percent of the share capital of ATOSS Software AG as a result of the purchase of shares, and amounted to 19.99 percent at this time. In addition, the Company was notified by GASC MGP, LLC, Wilmington, Delaware, USA, as at 15 June 2023 and 30 June 2023, respectively, of voting rights notifications for call and put options with an exercise right as of 30 June 2023. Further details can be found in Note 17 below.

The actual number of voting rights may deviate from the number listed as a result of interim, nonnotifiable or unreported trading.

17. Relationships with related parties

The previous majority shareholder of ATOSS Software AG, AOB Invest GmbH, which is controlled by the founder and CEO of ATOSS Software AG, Andreas F. J. Obereder, Grünwald, sold 20 percent of its shares (1,590,627 shares) in ATOSS Software AG to the financial investor General Atlantic for a price of EUR 222,687,780 with effect from June 30, 2023. Since the sale, AOB Invest GmbH holds a share of 30.000028 percent in ATOSS Software AG. The purchase agreement reached between General Atlantic and AOB also provides for put options for AOB Invest GmbH and call options for General Atlantic. If it exercises the options, General Atlantic will acquire up to very nearly a further 5 percent of the shares in ATOSS Software AG from AOB Invest GmbH. AOB Invest GmbH and General Atlantic have agreed only to sell the majority of their investment with the consent of the other party during a four-year standstill period. ATOSS Software AG has also given an undertaking to General Atlantic to immediately convene an Extraordinary General Meeting on completion of the share purchase and to propose an amendment to the articles of association to the meeting. The amendment to the articles of association provides for the company's supervisory board to be enlarged from three to four members in the course of which AOB Invest GmbH will be granted the power to appoint the fourth member of the supervisory board. The Extraordinary General Meeting has been convened for September 15, 2023 by ATOSS Software AG.

The wife of the Chief Executive Officer provides services to the company. In the first half of the year, the value of services provided on standard market terms amounted to EUR 1,500 (previous year: EUR 0). In addition, the daughter of the Chief Executive Officer is employed on standard market terms. The company incurred personnel costs in the amount of EUR 51,746 (previous year: EUR 48,627) in the first half of the year for this contract. As of June 30, 2023, there are short-term provisions for outstanding invoices from the wife of the Chief Executive Officer totaling EUR 1,500 (previous year: EUR 0) and short-term provisions for as yet unpaid variable remuneration to the daughter of the Chief Executive Officer amounting to EUR 8,192 (previous year: EUR 7,661).

18. Events after the reporting date

On July 3, 2023, AOB Invest GmbH granted Christof Leiber a special voluntary payment in an amount of EUR 2,220,000. This is to recognize the major contribution made by Christof Leiber over the last 24 years as the CFO of ATOSS Software AG, and the defining role he played in the appreciation of the ATOSS Software AG shares held by AOB Invest GmbH which was realized in the recent transaction between AOB Invest GmbH and General Atlantic.

No further reportable events of particular significance have occurred since June 30, 2023.

34 35

Declaration by the legal representatives

We declare that to the best of our knowledge and in accordance with applicable accounting principles for interim reporting, the consolidated interim financial statements provide a true and fair view of the company's net assets, financial position and results of operations and that the interim Group management report presents a true and fair view of the development of business, including the operating results and the position of the company, and also describes the significant opportunities and risks relating to the probable development of the company for the remainder of the financial year.

Munich, August 11, 2023

Andreas F.J. Obereder Dirk Häußermann Pritim Kumar Krishnamoorthy Christof Leiber CEO Co-CEO CTO CFO

Disclaimer

The present report contains forward-looking statements based on the convictions of the ATOSS Software AG's Management Board, reflecting its current assumptions and estimates. Such forward-looking statements are subject to risks and uncertainties. Many currently unforeseeable facts may cause the actual performance and results of ATOSS Software AG to turn out differently. Such circumstances may include: the non-acceptance of newly launched products and services, changes in the general economic and business situation, failure to meet efficiency or cost reduction targets or changes to the business strategy.

The Management Board is firmly of the opinion that the expectations contained in these forward-looking statements are sound and realistic. Should, however, the above-mentioned or other unforeseeable risks materialize, ATOSS Software AG cannot guarantee that the expressed expectations will prove to be correct.

Financial calendar

10/23/2023 Publication of the 9-monthly financial statements

09/15/2023 2023 Extraordinary General Meeting

11/27/2023 ATOSS at the German Equity Forum Declaration by the legal representatives | Financial calendar

Imprint

Responsible ATOSS Software AG Rosenheimer Straße 141 h | 81671 Munich | Germany T +49 89 4 27 71 0 | F +49 89 4 27 71 100 internet@atoss.com | www.atoss.com

Investor Relations ATOSS Software AG | Christof Leiber | investor.relations@atoss.com

ATOSS Software AG

Rosenheimer Straße 141 h | 81671 Munich | Germany T +49 89 4 27 71 0 | F +49 89 4 27 71 100 internet@atoss.com | www.atoss.com

Representations Germany

Berlin	ATOSS Software AG Knesebeckstrasse 62/63 10719 Berlin
Düsseldorf	ATOSS Software AG Robert-Bosch-Straße 14 40668 Meerbusch
Frankfurt	ATOSS Software AG Campus Carré Herriotstraße 8 60528 Frankfurt/Main
Hamburg	ATOSS Software AG Osterbekstraße 90 b 22083 Hamburg
Osnabrück	ATOSS Software AG Westerkappelner Straße 26 49497 Mettingen
Stuttgart	ATOSS Software AG Bertha-Benz-Platz 1 70771 Leinfelden-Echterdingen/Stuttgart

Representations Europe

Brussels	ATOSS Software AG Rue aux Laines 70 Wolstraat 1000 Brussels Belgium
Paris	ATOSS Software AG 40 Rue du Louvre 75001 Paris France
Stockholm	ATOSS Software AG Vasagatan 7 111 20 Stockholm Sweden
Utrecht	ATOSS Software AG Newtonlaan 115 3584 BH Utrecht Netherlands

Affiliated Companies Germany

Cham	ATOSS CSD Software GmbH Rodinger Straße 19 93413 Cham
Munich	ATOSS Aloud GmbH Rosenheimer Straße 141 h 81671 Munich

Affiliated Companies Europw

Vienna ATOSS Software Ges.m.b.H. | Ungargasse 64-66/Stiege 3/Top 503 | 1030 Vienna | Austria

Vienna	ATOSS Software Ges.m.b.H. Ungargasse 64-66/Stiege 3/Top 503 1030 Vienna Austria
Zurich	ATOSS Software AG Schärenmoosstr. 77 8052 Zurich Switzerland
Timisoara	SC ATOSS Software SRL Calea Torontalului 69 Timisoara 300668 Romania

Locations

ATOSS.COM

Brief an die Aktionäre

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