Data Modul AG — Annual Report 2026

Mar 20, 2026

Annual Report 2025

DATA MODUL at a glance

Highest stock price

Group key figures per IFRS and alternative key performance indicators*

in KEUR	2025	2024	2023	2022	2021	2020	2019	2018	2017
Revenue	212,878	226,208	283,235	276,053	194,774	192,185	203,314	241,417	218,256
EBITDA 1)	2,490	16,594	28,432	32,970	18,575	17,745	15,644	23,587	18,324
EBIT 2)	(4,901)	9,321	22,296	27,149	12,704	11,829	10,194	20,801	15,913
EBIT margin in % 3)	(2.3)	4.1	7.9	9.8	6.5	6.2	5.0	8.6	7.3
Net income	(4,576)	5,577	14,487	18,367	7,898	7,563	6,507	14,277	10,623
Shareholders' equity	145,141	151,115	145,636	131,780	113,933	105,860	99,599	94,006	79,571
Shareholders' equity ratio in %	75.3	71.9	66.4	59.4	60.3	69.2	67.5	70.1	71.8
Working capital 4)	111,827	113,827	123,311	120,510	89,440	61,232	63,702	63,039	56,193
Cash flow 5)	180	21,728	23,848	(2,825)	(15,715)	10,777	10,447	10,797	6,756
Investments 6)	3,906	3,583	8,952	3,370	3,019	3,429	6,984	5,638	4,427
Number of employees7)	528	531	525	488	468	460	489	445	403
Revenue per employee	403	426	539	566	416	418	416	543	542
Earnings per share in euros	(1.30)	1.58	4.11	5.21	2.24	2.14	1.85	4.05	3.01
Cash flow per share in euros 8)	0.05	6.23	6.76	(0.80)	(4.46)	3.06	2.96	3.06	1.91
Dividend per share in euros 9)	0.25	0.12	0.12	0.12	0.12	0.12	0.12	0.12	0.12
Stock price at year end in euros	29.40	27.00	44.40	55.50	65.00	49.00	51.00	55.60	70.00
Highest stock price in euros	29.60	45.60	64.50	63.00	68.00	52.50	75.00	76.00	89.45
Lowest stock price in euros	20.60	23.40	42.40	51.00	45.60	28.60	45.00	55.60	49.00

1) EBITDA: EBITDA is an acronym for 'earnings before interest, taxes and depreciation'. This metric is calculated as EBIT after depreciation and amortization.

• 2) EBIT: EBIT is an acronym for 'earnings before interest and taxes'. This metric is calculated as gross profit minus research and development expenses, selling and general administrative expenses.
• 3) EBIT margin: EBIT margin is calculated as EBIT relative to revenue.
• 4) Working capital: Working capital is a measure of operating liquidity and thus short-term financial health. This metric is calculated as trade receivables plus inventories minus allowance for doubtful accounts and trade payables.
• 5) Cash flow: Cash flow refers to cash flow from operating activities. This metric is calculated as net income for the year minus non-cash income plus non-cash expenses.
• 6) Investments: Investments are calculated as capitalized development costs and capex/ investments in other intangible assets and property, plant and equipment.

7) Number of employees: Average number of employees during the year excluding apprentices.

• 8) Cash flow per share in euros: Cash flow per share means cash flow from operating activities per outstanding share.
• 9) Dividend per share in euros: The dividend amount proposed by management at the Annual Shareholders' Meeting in 2026.
• * The DATA MODUL Group utilizes alternative key performance indicators as part of its regular and mandatory reporting. These alternative performance indicators are in supplement to the ratios defined under IFRS and are not defined under International Financial Reporting Standards (IFRS). The alternative performance indicators utilized are listed and explained separately unless their meaning is obvious by the name.

DATA MODUL 2025 Annual Report

I.	Management Reports	02
	Executive Board Report	04
	Supervisory Board Report	06
II.	DATA MODUL worldwide	08
	Facts and Figures	10
III.	Our Competencies	12
	Our Business Model at a Glance	14
	Precision and trust for medical technology of tomorrow	16
	Holistic Display Solutions for the Gaming Market	18
IV.	Highlights of the Year	20
	Highlights 2025	22
V.	Sustainability	24
	Responsibility. Dialogue. Adaptability.	26
VI.	Annual report	30
	Group Management Report	32
	Consolidated Financial Statements	76
	Auditor's Opinion	121
	Management Representation & Financial Calendar 2026	127

Again in fiscal year 2025, DATA MODUL operated in a challen ging market environment affected by economic uncertainty. In the face of external factors, the Company kept focusing syste matically on its core competencies in order to resolutely stay the course set out under the strategic "Display the Future 2028" program. We act in the market on the basis of a firm conviction that we offer quality products and technologies—Curved Dis plays, Touch Technologies and Customized Display Solutions in particular. And we continue to move forward with our efforts to systematically expand internationally. Because of this con fidence in our strengths, we are certain that DATA MODUL will remain competitively successful in the market as an active pro vider of compelling, innovative solutions.

Clear course in a demanding market environment

Management Reports

Executive Board Report

Dear shareholders and friends of our Company,

"It doesn't matter how often you fall down. What matters is how many times you get back up!" – Tiger Woods

The results for the fiscal year ended indicate how challenging the business environment has been. Nor have the market and other circumstances improved in the first months of 2026 especially in Germany and Europe.

Despite the many "reassurances" given by the government, a wave of insolvencies is sweeping through Germany's SME sector as the domestic market erodes. This obviously poses a huge challenge for DATA MODUL.

We have to accept the situation however and work with the given circumstances. We engage in intensive efforts to do so every single day.

Economic conditions in 2025 were again worse than in the prior year, as the war in Ukraine is still raging with undiminished ferocity, global trade conflicts continue and geopolitical tensions re-escalate as soon as they appear to subside. The US is fulfilling its traditional role of the intervening global power, but this time exclusively in a sense of "America first".

Reforms announced in Germany are nowhere to be seen, while Europe remains bogged in overregulation. Brussels appears to be entirely unaware that Europe is in a dramatic economic decline. It's all "business as usual" at the EU's seat.

Despite tremendous internal effort, fiscal year 2025 was problematic for DATA MODUL overall, as the company recorded revenue of 213 million euros. This further decline was due to the weak German and Asian markets.

We were unable to break even despite extensive internal re-organization and cost-cutting measures. Earnings declined, EBIT falling to the loss of around 4.9 million euros despite strategic internationalization gains reflected in exports accounting for 55% of total revenue for fiscal year 2025.

One-time effects also negatively impacted earnings to around 8.6 million euros. Adjusting out one-time items, we recorded positive EBIT, which together with an over 9 million euro rise in orders gives us reason for optimism now in 2026.

The market situation remains difficult, thus we must stay clearly focused on executing our "Display the Future 2028" strategy. The robust equity the Company has built up in recent years still provides a certain foundation for the structural reorganization and investments necessary to move us further along our path.

Yet it is already clear that the first half of 2026 will be troubled—for the German market in particular. Accordingly, we will continue investing in internationalization and further innovation. Our business remains focused on touch, curved and custom solutions, flanked by distribution and EMS services.

This business model, we believe, will endure in today's intense competitive environment, with Asian players becoming increasingly aggressive in the market as full-service system solution providers, rather than solely as suppliers.

To achieve a turnaround we will be embracing today's extreme challenges, relying on our longstanding values of professionalism, commitment to innovation and team spirit. The

customer comes first, as always. And I want to take this opportunity to express my gratitude to our staff for their perseverance throughout these tough times.

Looking at the challenging market we will assuredly be seeing in the near future, we need to trim our cost structure further. Yet despite all, it is still important for us to be a good, reliable employer. For keeping a strong team is essential if we are to remain profitable.

We thank all of our stakeholders and hope most earnestly that you, our shareholders and investors, will be accompanying our enterprise further along our path, despite these trying times. Your supportive backing reveals your esteem for us and the confidence you have in our organization.

Facing the persistent major challenges in the current global economic environment and the lingering climate of uncertainty, we are working hard every day to ensure that DATA MODUL gets back on track for sustainable profitable growth throughout the future.

Dr. Florian Pesahl, Chief Executive Officer Munich, March 2026

Dr. Florian Pesahl CEO DATA MODUL

Supervisory Board Report

In the year under review the Supervisory Board addressed matters concerning the situation and growth of DATA MODUL AG in detail. The Board fulfilled the obligations incumbent upon it, advising and supervising the Executive Board in its work.

The Executive Board regularly informed the Supervisory Board both verbally and in writing regarding business developments at DATA MODUL AG.

In these meetings the Supervisory Board was informed regarding market challenges and how our sales volume, financial position and earnings are being impacted by factors including chiefly the war in Ukraine, growing tensions between China, Europe and the US, and a troubled global economy. DATA MODUL Group sales and profits were presented in quarterly reporting, including a breakdown by business segment.

Principal discussion topics of the Supervisory Board

In the period under review the Supervisory Board convened for four meetings. All meetings were attended by all members of the Supervisory Board. The main issues addressed in these meetings are outlined below.

At the Supervisory Board meeting in March 2025, the Annual Financial Statements prepared by the Executive Board for DATA MODUL AG and for the Group for fiscal year 2024 were presented and discussed in detail. The Supervisory Board adopted the Annual Financial Statements of DATA MODUL AG and approved the Consolidated Financial Statements. Representatives of Forvis Mazars GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Hamburg, which audited our Separate and Consolidated Financial Statements, attended this meeting. The Supervisory Board also reviewed the Dependent Company Report per Sec. 312 (1) of the German Stock Corporation Act (Aktiengesetz/AktG) on relations between DATA MODUL AG and its affiliated companies, which the Executive Board presented.

The German Corporate Governance Code declaration per Sec. 161 of the German Stock Corporation Act (Aktiengesetz/ AktG) and the Corporate Governance Declaration per Sec. 289f of German Commercial Code (HGB) were additionally discussed and adopted, among other Board activities. The Declaration of Compliance per Sec. 161 AktG and the Declaration on Corporate Governance per Sec. 289f and 315d HGB have been made publicly available on the Company website at www.data-modul.com.

In addition, in a meeting in March 2025 the Supervisory Board addressed the agenda of the 2025 Annual Shareholders' Meeting in detail and the resolution proposals for shareholders to vote on at the Meeting. Discussion focused as well on the business results and outlook thus far for fiscal year 2025.

The primary discussion items at the Supervisory Board meeting of May 2025 were current business performance and the 2025 shareholders' meeting.

The primary discussions items at the Supervisory Board meeting in September 2025 were the economic situation and business performance of the DATA MODUL Group in light of the ongoing war in Ukraine creating economic challenges in Europe. The Executive Board also noted one-time items in the current fiscal year and continuing challenges concerning the business model of the DATA MODUL Group.

At the meeting in November 2025, the CEO reported to the Supervisory Board on matters including the current business and financial situation of the Group and presented on the impact of strategic decisions made on DATA MODUL Group results in the current fiscal year thus far. The CEO also presented the financial plan for 2026, which the Supervisory Board approved. Additionally, the auditor reported regarding audit planning for fiscal year 2025.

The Company provides support to Supervisory Board members in connection with their appointment and continuing education. No onboarding events were conducted in fiscal year 2025 because no new members were court-appointed to the DATA MODUL AG Supervisory Board.

Dear shareholders,

Audit of the Separate and Consolidated Financial Statements

In early 2026 the Executive Board prepared the DATA MODUL AG Separate Financial Statements and Management Report for fiscal year 2025 in accordance with German Commercial Code (HGB) accounting rules; the Consolidated Financial Statements and Group Management Report were prepared in accordance with International Financial Reporting Standards (IFRS) applicable in the EU, and with the supplemental German GAAP accounting rules per Sec. 315e of German Commercial Code.

The Company's auditors audited both sets of Financial Statements including Management Reports, thereupon issuing unqualified audit opinions.

At its March 2026 meeting, the Supervisory Board discussed in detail the Financial Statements for fiscal year 2025 and Dependent Company Report. Representatives of the auditing firm attended the meeting, reported on their audit findings and provided additional information. In their review, the auditors found no material weaknesses regarding the structure or effectiveness of the internal control and risk management system in place.

The auditor also audited the Dependent Company Report. The report covers the period January 1 - December 31, 2025. The auditor issued the following unqualified audit opinion regarding the Dependent Company Report: The DATA MODUL AG Supervisory Board consists of three members. The Supervisory Board did not form any separate committees during the reporting period, as this is not expected to yield efficiency gains in view of the Supervisory Board being constituted of three members.

"Based on our professionally conducted audit and corresponding opinion, we confirm that 1. the factual information in the Report is correct and 2. consideration paid by the Company in the transactions disclosed in the Report was not unreasonably high." The Supervisory Board would like to thank and recognize the work of the Executive Board as well as the contributions of all DATA MODUL employees worldwide for their dedication in fiscal year 2025.

The Supervisory Board reviewed the Separate Financial Statements and Management Report of DATA MODUL AG, the Consolidated Financial Statements and Group Management Report for fiscal year 2025 and the Dependent Company Report. This review by the Supervisory Board did not result in the noting of any reservations regarding the Separate Financial Statements, Consolidated Financial Statements, Dependent Company Report, the Executive Board's concluding declaration in the Dependent Company Report or the auditor's findings from auditing of the Dependent Company Report. The Supervisory Board approved the 2025 Consolidated Financial Statements, adopted the 2025 Separate Financial Statements and agreed to the Executive Board's proposal for the appropriation of accounting profits.

Supervisory Board members

For the Supervisory Board

Richard A. Seidlitz, Supervisory Board Chair Munich, March 2026

Richard A. Seidlitz Supervisory Board Chair

Eberhard Kurz Head of R&D - Display Solutions

Salesh Rampersad Supervisory Board Deputy Chair

Worldwide presence – strategically aligned

DATA MODUL worldwide

In today's demanding environment and increasin gly global markets, it is essential for our success that DATA MODUL maintains a balanced internatio nal presence. This means we have to offer our core technological competency while maintaining uniform quality standards and ensuring process transparen cy across all relevant markets, staying close to our customers. DATA MODUL is an international enter prise, as evident from our strategic structure and operations from sites located around the world. The goal is to gradually expand in the global markets and strengthen our positioning in relevant markets on a

sustained basis.

Designed in Germany, made worldwide

The day-to-day operations of DATA MODUL as an international enterprise are conducted by our staff members, who hail from 35 different nations and closely collaborate across locations in Europe, North America and Asia. This global network makes it possible to meet customer requirements in a market- and industry-specific manner, adapting our portfolio of hardware, software and services specifically to individual target markets.

The Technology Flagship in Germany sets the standards for process, quality and manufacturing standards that apply group-wide. This structure is complemented by our expanded production capacity in Poland, local assembly in China in accordance with German standards, and our site in Hauppauge, USA, bundling sales, system engineering and technical support in the region. This balanced international organization supports the market positioning of the companies in Germany, Poland, the US and Italy. In today's challenging market environment of increasing competition and cost pressure, DATA MODUL is leveraging our over 50 years of expertise, technological knowhow and unswerving commitment to quality as a reliable basis for sustained success.

Global market presence with local expertise

20 DATA MODUL locations worldwide Madrid

Paris

Birmingham

Kolding

Stockholm

DATA MODUL upholds clearly outlined quality standards in day-to-day operations, systematically aligning the Company's products and services with customer needs. Fiscal year 2025 was the second year of strategic realign ment for the Company in a move to integrate hardware, soft ware and services together in order to operate as a holistic display systems provider. The Distribution and Customized Display Solutions business units have been carefully re-ali gned to this end.

They stand for two paths with a common goal: providing the right display solution for the application at hand—whether that means standardized, readily available products or spe cially developed custom display systems. DATA MODUL thus provides modular and scalable display solutions as a single source in our six core markets, demonstrating a clear commitment to quality and dependability.

Targeted further development of our competencies

Our Competencies

Our Business Model at a Glance

We create unique display solutions that turn our customers' ideas into reality: through hardware, software and services.

In a world where displays and other electronic components are viewed as individual parts, we see ourselves as a company that focuses on the bigger picture. We consider our areas of expertise hardware, software, and services – as building blocks that can be combined to create customised display solutions. In this way, even the most complex projects can be realised and market-specific challenges can be mastered. We stand by our customers' side from the initial concept idea through to series production.

Holistic medical competency and regulatory expansion The cross-functional DATA MODUL Medical team has development, quality control, supply chain and application responsibilities, drawing on Germany-based manufacturing expertise. Customers benefit from dedicated contacts, shorter development times and very dependable product feasibility in highly

The medical & healthcare market is subject to extremely stringent requirements for imaging quality, reliability, and regulatory compliance. Displays are a key component in modern diagnostic, therapeutic and surgical systems, playing a substantial role in ensuring correct clinical decisions and efficient workflows. Having anticipated rising demand for high-resolution, durable and hygienic display solutions early on, DATA MODUL consistently aligns its portfolio with the requirements of medical OEM customers. The surgical monitor strategy the Company outlined and adopted in the year 2025 marked a milestone.

Technological competency for operating rooms

DATA MODUL is developing a new high-end product family of endoscopic displays in various diagonal sizes for use in operating rooms and outpatient settings, thereby expanding the Company's medical portfolio in targeted fashion. Systems based on miniLED technology enable the displaying of medical content in Ultra High Definition (UHD). High luminance, excellent contrast values, rich color depth, stable viewing angles and HDR support are the features that will characterize the medical displays of the future. Screwless, hygienic housing and application-specific design reliably meet the special requirements inherent with medical environments.

Precision and trust for the medical technology of tomorrow

regulated markets. The Company has expanded in targeted fashion organizationally, in line with business plans to operate as a medical display systems distributor. This strengthens DATA MODUL's capabilities in the areas of regulatory strategy, risk management, technical documentation and conformity assessment, establishing us a full-service medical technology partner.

Modularity and lifecycle management

Modular platform concepts, long-term availability strategies and structured lifecycle processes enable validatable, economical solutions for different medical device concepts. These benefit customers by affording qualification, maintainability and product continuity for many years.

Business planning and outlook

The global surgical display systems market is growing steadily at a compound average annual growth rate (CAGR) exceeding 7% over the past few years, according to Statista. DATA MODUL is increasing its vertical integration in this highgrowth segment by strategically expanding into endoscopic displays, growing our regulatory expertise and positioning the Company as an independent distributor. This will enable the Company to tap new revenue sources, enhance customer loyalty through system-related solutions and improve margin quality. The medical sector will thus be an increasingly important source of stable, long-term revenue, making our business model more resilient.

Immersive experiences for modern game worlds

The casino and gaming market requires display systems that are sophisticated in terms of design, performance and reliability. Slot machines, electronic table games, jackpot displays – the visual experience is essential to the overall game experience. DATA MODUL supports gaming systems manufacturers as a provider of holistic display solutions that get attention, promote interaction and are durable for long-term operation in demanding environments.

Visual performance as key to player retention

Brilliant image quality, high contrast and intense color rendering are crucial to get gamers enthused. DATA MODUL offers a broad portfolio of monitor solutions ranging from compact screens to large-format 4K UHD monitors and curved LCD and OLED displays. Differing formats, screen sizes and resolutions open up new design options to enable an immersive gaming experience that clearly stands out from competitors. The portfolio is complemented by LED solutions and video walls for visual staging of gaming environments that garner maximum attention.

Intuitive interaction, robust system solutions

Interaction is key as well, alongside the visual element. Touch technologies, button decks and integrated peripherals enable intuitive, ergonomic operation. Gaming displays are furthermore designed for continuous use, made with reinforced, vandal-resistant glass, IP-protected housings and durable

Holistic display solutions for the gaming market

components to ensure stability and reliable daily operation. These systems unite functionality and robustness with attractive design.

Modularity, individualization and lifecycle management

Gaming applications require solutions that are both flexible and scalable. DATA MODUL hardware, software and services are combinable into modular systems that are precision-adaptable to customer requirements, including custom housing design, custom touch and LED concepts and custom embedded and controller solutions. Comprehensive lifecycle management is offered, ensuring long-term availability, maintainability and product further development.

Sustainable solutions for tomorrow's gaming market

Sustainability and resource efficiency are becoming increasingly important considerations alongside performance and design. DATA MODUL meets these needs by offering durable product concepts and energy-efficient display technologies via optimized supply chains. The goal is to support gaming manufacturers worldwide as a provider of reliable, futureproof display solutions that afford economic efficiency and meet high quality standards. In addition to standard products the DATA MODUL Gaming portfolio includes a full range of custom solutions. Our latest updated gaming brochure gives customers a comprehensive overview of our product and service array.

Despite a challenging market environment, DATA MODUL drove targeted initiatives aligned with its strategic priorities in the 2025 financial year. The focus was on technological developments, the expansion of the systems and solutions portfolio, and a stronger presence in international markets. At the same time, new formats to strengthen customer relationships were introduced, and the importance of employees was deliberately placed at the center of attention.

The following highlights provide an overview of selected activities and key developments during the year.

Highlights for 2025

Our highlights for 2025

2025 Highlights

DATA MODUL expanded its peripherals portfolio in targeted fashion to offer more add-on components for displays and industrial system solutions. "Peripherals" refers to a broad spectrum of system-relevant apparatus: from core components like processors, mass storage devices and SDRAM to control elements such as encoders, joysticks and wheel-on-display devices, on down to cables, power supply solutions and custom cooling solutions. This broad assortment makes system integration easier, so the customer gets a coherent overall architecture from a single source. Customers benefit from an expanded selection of inter-coordinated components and greater integration within their display systems.

The Wheel on Display is another innovative DATA MODUL user operation concept, uniting display and control element functionalities into a single unit for use in applications that are sophisticated in terms of their intuitiveness, robustness and design requirements. The Wheel on Display complements existing holistic display systems as an integratable, user-friendly interaction component within the peripherals portfolio. The product underscores DATA MODUL's commitment to being more than a display provider, instead offering complete system solutions for digital dialogue between man and machine.

Introducing the new eMotion UHD-III-G Scaler-Board-Generation

Expansion of the peripheral portfolio, enhanced systems expertise

Further development of the Wheel on Display

The newly developed 15.6" PCAP touch display is a real all-rounder in terms of modern HMI concepts, uniting precise touch operation with integrated RFID/NFC technology right inside the active display area. Touch and RFID interaction run seamlessly in parallel—even behind thick protective glass. The solution supports numerous LF and HF RFID standards, including NFC, and is perfectly suited for rugged outdoor applications like ticketing and entry systems. The technology allows sleek designs with no external reader hardware, and is scalable from 6.2 to 21.5". We see major market potential here in 2026, and anticipate a number of interesting customer projects coming to fruition in different industries.

15.6" PCAP touch display with RFID/NFC – major potential for 2026

In such a challenging year for business affected by global political and economic uncertainty, DATA MODUL made strategic use of international trade fairs to connect with prospective buyers in markets new and old. Exhibiting at embedded world in Nuremberg, G2E in Las Vegas, embedded world North America and Evertiq Expo in Malmö enabled the Company to showcase its technological expertise and pursue further dialogue with existing and potential customers.

In addition to our classic trade fair stand, DATA MODUL introduced a mobile presentation concept as a flexible marketing expansion option that enables products, technologies and solutions to be presented directly on-site at customer locations at exclusive "Tech Days" events.

International trade fair presence, mobile presentation concept

A special highlight of the year was the recognition of our long-serving employees. Colleagues with five to 35 years of service were honored during shared barbecue events and at the company's Christmas celebration. In a fast-moving world, this level of dedication and loyalty fills us with great pride. Through their commitment, experience and team spirit, they play a significant role in shaping the identity of DATA MODUL. They stand for continuity, loyalty and professional expertise – and therefore for the strong sense of unity that characterises our company.

Appreciation for Experience, The launch of the new eMotion UHD-III-G family of scaler Commitment and Team Spirit

boards represented another technological milestone. Designed for demanding 4K UHD applications, this new generation meets heightened requirements for performance, connectivity and integratability into modern display systems. This innovation marks another advance in DATA MODUL expertise with embedded and controller solutions as a technology especially suitable for custom display solutions.

Sustainability

In today's dynamic business environment of highly interconnected global supply chains and geopolitical challenges, DATA MODUL is taking targeted mea sures to ensure our continuing growth as an enter prise. Sparing use of materials and resources is a guiding principle for doing business in a responsible, future-aware manner. DATA MODUL promotes close cooperation with internal and external stakeholders along the entire value chain, acting as a reliable part ner. Such cooperation helps us make efficiency gains, contain risk early on and develop robust joint solu tions that conserve resources and add value for our employees and society.

Resilience, responsibility, and partnership as key value drivers

Responsibility. Dialogue. Adaptability.

In the wake of our first published sustainability report in 2024, sustainability remains an integral point within the DATA MODUL corporate strategy despite ongoing geopolitical tensions and regulatory uncertainties. The key topics identified in the previous year were further pursued in targeted fashion in fiscal year 2025, and specific measures taken accordingly. We strive to embed sustainability within decision-making, processes and projects, taking all three ESG dimensions into account: environmental, social and governance.

DATA MODUL sustainability concept is designed as a threepillared plan that forms the basis for specific initiatives and measures. In the global transformation process, close cooperation between corporate departments, sustainability management and external partners is a key success factor for further developing ideas and realizing measurable progress. "Our aim is to systematically integrate ecological responsibility into our business objectives so as to make DATA MODUL ever more efficient, resilient and competitive over the long term," said CEO Dr. Florian Pesahl.

A particular content focus in 2025 was on a circular economy pilot project for the electronics industry in partnership with the city of Munich. Concepts and approaches were developed in targeted fashion in this project and then integrated in order to optimize material usage and promote component reusage. Globally interconnected supply chain relationships require close communication with other firms in a spirit of constructive, cooperative partnership. The targeted development of stable structures and the anchoring of ESG issues as value drivers for innovation and competitiveness help us meet external requirements, make us more crisis-ready and save both money and resources over the long term.

our efforts to reduce CO2 emissions. In addition, large ceiling hangers were installed in 2025 to raise general employee awareness regarding energy and resource efficiency.

The key issues that emerged from the annual customer survey included a need for more resource-efficient packaging solutions. Thus in fiscal year 2025 efforts focused on developing a holistic concept—with close collaboration between the R&D, Warehouse and Logistics departments—for engaging customers more actively in dialogue on reusable packaging and alternative packaging materials, with the aim of reducing waste.

In addition to enhancing the energy efficiency of our products, more prudent use of materials is another main concern. Circular business models are becoming increasingly relevant in view of the limited availability of natural resources and the unreliability of global supply chains. As part of the model project, we evaluated how existing linear processes can be further developed into more sustainable product cycles. The main goal was to test out options like dismantling and targeted component recycling to enable reuse of used devices and conserve resources. Partnerships are generally beneficial when transitioning over to a circular economy, especially in regard to promoting innovation and implementing new business models.

S – Social Responsibility

Another challenging fiscal year has passed, but DATA MODUL demonstrated its strengths in taking corporate responsibility and offering support throughout good and bad times. As employer, maintaining a safe and stable work environment where our staff members can develop their skills and careers is extremely important to us. We have ever been committed to a team culture of cohesion in which change is seen as an opportunity and everyone has their role to play in our common success. This is how we cultivate a motivating work environment and corporate culture in which challenges are tackled and successes celebrated not alone but together. Two joint cooking events were held in the past year at the Munich and Weikersheim sites to honor long-time staff members—some of whom have been with the Company for 35 years—as an opportunity to say THANK YOU for their hard work. These service anniversaries are celebrated as occasions for recognizing reliability, dedication and collaboration.

We also value new people joining our team, who bring fresh perspectives and make us more innovative by putting existing processes to the test. The ideas contributed by new employees in combination with the sound experience of long-stan-

E – Environmental Responsibility

Efficient resource usage in production and in our internal processes is of central importance to us as a business. We have been conducting environmental management in accordance with DIN EN ISO 14001 since the year 2015. Our commitment to the environment hinges upon full compliance with legal requirements under RoHS, REACH and conflict minerals regulations.

In fiscal year 2025 we will be reporting based on the corporate carbon footprint drafted for the first time last year, in accordance with requirements under the Greenhouse Gas Protocol (GHG Protocol). A base of transparent and reliable data is key for gaining a holistic understanding of the greenhouse gas emissions generated across all locations worldwide. Analysis revealed that purchased goods and services account for over 75% of total emissions, thus representing a major driver. In light of that, the original goal of implementing a comprehensive decarbonization strategy has been postponed, instead of which a circular economy pilot project is being launched with a focus on materials. The carbon footprint report thus provides valuable insights in order to systematically identify reduction potential and steadily reduce operating costs.

The focus is on the production sites in Germany and Poland as the main energy-consuming entities. Continuous process optimization and the implementation of energy-efficient measures, regarding lighting in particular, are primary concerns in

Our three-pillared understanding of sustainability

Resource and energy efficiency

We take responsibility for our environment through innovative technologies for resource conservation and recycling. We promote product circularity with a focus on our customers' requirements.

Social Responsibility

Supply chain resilience

Long-term partnerships based on trust are the foundation on which we continuously develop the supply chain together with our customers and suppliers.

ding staff form a solid foundation for strategically aligned, forward-looking operations. Young people joining the firm for occupational training have an important role to play too, eight of whom joined our apprenticeship program this past fiscal year, training in seven different occupations. We thus now have 26 apprentices in all, plus one cooperative education student. We view the apprenticeship program as a valuable investment in our business future. For the program we operate a dedicated training workshop equipped with the latest technology at the Weikersheim production site, where our apprentices can learn the basics of their occupational field through a proven, hands-on approach. Among other factors, the success of our training program is reflected in a high rate of subsequent apprentice hiring. In recent years, all trainees with good performance have been hired after successfully completing their training. Currently, 42 employees work at the Weikersheim site, all of whom have completed or currently are completing apprenticeships here, including six individuals in managerial positions. University partnerships are particularly important in Lublin as a vibrant framework in which the academic and business communities meet and share ideas.

Targeted skills development is a key element in our longterm human resources strategy, which is designed to accelerate global knowledge exchange and promote cooperation across national borders. Specific training workshops are offered for targeted support as needed. Our aim is to promote continuous learning in a work environment where everyone is able to grow his or her skills and enjoy being part of the larger team.

Our social responsibility commitments are revealing about who we are, which include continuously striving to benefit our employees, business partners and the region at large. DATA MODUL has provided targeted financial support to relevant non-profit organizations for years. This year we again made donations to our partner charity Plan International, a non-profit aid organization for children and their families living in crisis areas. A "Hands on Life" training seminar was offered as a refresher course on handling medical emergencies which helps us keep our knowledge and skills upto-date. Many of our employees also participate in sporting events in Munich, Weikersheim and Lublin. Donation pro-

ceeds from charity runs go to benefit various good causes. Events like these cultivate team spirit while we deliver on our social responsibilities.

G for responsible corporate governance

The five DATA MODUL corporate values guide our dayto-day activities both internally and externally. These are: success, professionalism, innovation, passion and team ethical principles along the entire value chain.

spirit. Our corporate culture is informed by principles of fairness and characterized by open communication and feedback, transparency, flat hierarchies and active exchanging of ideas. Our Code of Conduct serves as a framework for both internal and external interactions. In the Code we define our understanding of our responsibility towards the Company, shareholders and broader society, in the interest of fully meeting the expectations of our customers, suppliers and business partners. This includes supplier audits, which are regularly conducted to ensure compliance with standards and our As a publicly traded enterprise, we have extensive reporting and disclosure obligations. To us, corporate governance means managing with responsibility and targeted cooperation between the Executive and Supervisory Boards. Our guidelines, practices and processes are designed to uphold the interests of our shareholders and stakeholders. An effective risk management system is in place to this end, which meets the applicable ISO standards for quality (ISO 9001, IATF In the Sustainability Report (Group Management Report, Section 6, Non-financial disclosures) DATA MODUL reports on the Company's sustainability activities in fiscal year 2025, the second such report. The focus in 2025 was on gradual integration of the sustainability concept into day-today business operations, on basis of the double materiality assessment conducted in 2024. In parallel, extensive discussions were held at the EU level on possible simplifications of reporting requirements, leading to continuing uncertainty regarding report scope and structuring. As in the previous year, the amended thresholds and the content of the Corporate Sustainability Reporting Directive (CSRD) still had not been implemented in national law by the end of 2025. The 2025 Sustainability Report was thus again prepared based on Sections 289b-e and 315b-e of German Commercial Code (HGB) and on German Accounting Standard (DRS) 20, drawing upon the criteria under German Sustainability Code (DNK), including selected performance standards under the Global Reporting Initiative (GRI).

16949 and ISO 13485) and for environmental protection (ISO 14001). Our administrative, executive and supervisory boards are principally responsible for coordinating and monitoring all business practices, including with regard to sustainability. Clearly defined responsibilities and transparent decisionmaking processes are therefore key for aligning business objectives with ecological objectives.

Contents

Group Management Report

1. Basic Principles of the Company	32
2. Economic report	34
3. Risks and rewards; Forecast	40
4. Control of Capital	51
5. Corporate governance declaration	51
6. Non-financial disclosures	51
7. Closing statement	73

	32
	34
	40
	51
$\mathsf{tion} _______\$	51
	51
	73

Group Management Report

1. Basic principles of the Company

1.1 Business model

DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen, Munich (DATA MODUL for short) manufactures and distributes innovative flatbed displays, monitors, electronic subassemblies and complete information systems. The Company is organized into two business segments: Displays and Systems. The Display Solutions business segment consists essentially of display sales and the production and distribution of touch displays and embedded components. Products in the System Solutions business segment feature the highest degree of in-house added value. Complex, customer-specific monitor systems are developed and produced in this segment.

We primarily supply customers in the industrial automation, mobility, smart building & white goods, medical & healthcare, entertainment and smart retail & signage markets. DATA MODUL is thus influenced by the general economic environment and by developments in mechanical engineering, which is our primary industry. The Company is also impacted by changes in customer ordering behavior, as order volume is steadily rising in parallel with product complexity, so that orders are increasingly part of longer-term projects in which we act as partners to our customers on a sustained basis.

The DATA MODUL Group maintains regional offices in Germany, Spain, Italy, France, the UK, Poland, Singapore, Hong Kong, Shanghai and the United States.

1.2 Control systems

DATA MODUL reflects the structure and philosophy of a classic small to medium-sized organization, yet has implemented additional processes and organizational directives which meet legal and other regulatory requirements for a publicly traded company. Management and controlling functions at DATA MODUL AG are structured in line with the German Stock Corporation Act, according to which company governance consists of three bodies: shareholders, the Executive Board and the Supervisory Board. The Executive Board prepares monthly reports which are reviewed and monitored by the Supervisory Board and discussed at Supervisory Board meetings. In addition, the Executive Board meets on a regular basis to discuss current events and strategies. Monthly Executive Board reports organized by business segment – Displays and Systems – serve as a basis for corporate decisionmaking, this structure being reflected in the Consolidated Financial Statements as well.

Orders received, revenue and EBIT are our primary management metrics and key financial performance indicators. The Executive Board manages the Company's operations at the top level.

1.3 Research and development

It is our goal to further strengthen our innovative capabilities. Our success depends substantially on our ability to continuously offer customers new products and solutions to meet their ever-changing requirements. Expenses for internal and external research and development in fiscal year 2025 totaled 6,708 thousand euros (previous year: 6,070 thousand euros).

The average number of R&D staff members during the year was 67 (previous year: 67 staff members). The R&D intensity ratio (R&D expense/revenue) was 3.2% (previous year: 2.7%).

In development projects we distinguish between research,

Group Management Report

product development and custom development, which may be recognized as costs to fulfill a contract. The activities of the R&D department are concentrated on next-generation products and solutions, and preparing these for successful market launch. In the year under review, assets derived from customer-specific development projects were recognized in the amount of 2,898 thousand euros (previous year: 3,141 thousand euros) and depreciated on a scheduled basis in the amount of 3,386 thousand euros (previous year: 4,619 thousand euros).

We capitalized development costs in the amount of 219 thousand euros in the year under review, recognizing intangible assets (previous year: 457 thousand euros). This corresponds to a capitalization/R&D expense ratio of 3.3% (previous year: 7.5%). Offsetting amortization was recorded in the amount of 709 thousand euros (previous year: 591 thousand euros), resulting in a net effect of -491 thousand euros (previous year: net effect of -133 thousand euros). Research expenses are not capitalizable.

Last year the focus was on further development of embedded and control electronics. Additionally, we have further pursued optical bonding and again expanded our portfolio of OEM products, curved TFT displays and industrial display solutions. And we have started designing our own product family of surgical monitor systems. Developing new products and solutions is only one part of our continuous improvement efforts. Ongoing quality enhancement is another key priority.

2. Economic report

2.1 Business performance

DATA MODUL faced challenging economic conditions in fiscal year 2025, seeing declines in revenue and earnings. Efforts continued unabated to systematically execute on the Data Modul strategy program titled "Display the Future 2028". The primary goals and issues addressed last year included:

• further supply chain optimization
• building up the new curved product portfolio
• international expansion of production capacity
• adjusting costs in line with lower revenue.

DATA MODUL met its forecasts and estimates in the fiscal year under review after re-revision in an ad-hoc release on October 16, 2025. Details regarding our performance metrics are discussed below.

In millions of euros	2025 Estimated	Ad-hoc announce ment dated October 16, 2025	2025 Actual
Orders received	181.3 – 221.5	191.3 – 211.5	210.4
Revenue	181.0 – 226.2	208.1 – 226.2	212.9
EBIT	1.9 – 5.6	(5.1) – (3.7)	(4.9)

Demand again rose slightly in the fiscal year under review, and new orders rose, particularly from the US. DATA MODUL recorded revenue for fiscal year 2025 in line with the previously communicated estimate. EBIT fell significantly short of the original estimate made in the year prior. One-time charges totaling 8,587 thousand euros weighed on EBIT substantially in fiscal year 2025, which included particularly the impact of the unfavorable EUR-USD-exchange rate movement, market entry costs for the new curved product portfolio and expenses incurred over the course of the year in connection with one-time personnel-related measures and internal reorganization.

The economic environment further deteriorated for DATA MODUL in 2025, facing a strained economic situation once again which negatively affected earnings. Continuing to systematically execute on the long-term DATA MODUL strategy program will ensure the Company's ability to succeed despite a clouded economic outlook or even crisis conditions.

Although the Company recorded a net loss for fiscal year 2025, the Executive and Supervisory Boards propose distributing a dividend of 0.25 euros per share to shareholders from accounting profits on the books from a carryforward. Shareholders approved a per-share dividend of 0.12 euros for fiscal year 2024, contrary to the proposal advanced by the Executive and Supervisory Boards.

Thus in summary, results for fiscal year 2025 were unsatisfactory for DATA MODUL due to the challenging economic conditions, leading to recording of a net loss. We foresee returning to profitability in the two fiscal years ahead, projecting favorable business developments in combination with the absence of the one-time charges noted above.

2.2 Macroeconomic and industry-specific conditions

a) Macroeconomic conditions

Political initiatives of the new Trump administration in the US, including especially the introduction of significantly higher import tariffs, strongly affected the economy in 2025. In July the US reached agreement with the EU on a one-sided general tariff of 15 percent.1) Governmental cooperation and business in the two economic regions have also been hampered by divergent policies on fundamental issues such as climate change, diversity and regulation. The US trade conflict with China over the supply of rare earths and high-performance chips led to a temporary easing of trade restrictions in November. Global crises like the war in Ukraine continued unabated despite determined peace-seeking efforts, while in Gaza/Israel, a fragile ceasefire was agreed after intermittent escalations in fighting (Israeli attacks on Iran and Qatar). Political uncertainty increased further overall, thus the economy remains under tremendous adaptation pressure.

Accordingly, the global economy gave a mixed picture despite monetary policy stimulus and falling short-term interest rates. Global growth stagnated in 2025 at the same level as in the previous year.2) Turning to the emerging markets, slowing growth in China again weighed on the world economy, which was plagued by a real estate crisis, weakening consumer spending, manufacturing overcapacity and high debt affecting local governments in particular, plus sharply increased US tariffs. Despite expansionary monetary and fiscal policies, the demand stimulus on domestic consumption did not compensate for weakness in goods exports. According to official statements, China did still attain its growth target of precisely 5% for 2025.3) Turning to the industrialized nations, the US growth rate fell significantly behind the previous year's level, with real GDP growth of 2.2% in 2025 (2024: 2.8%).4) The year started off burdened by accelerated goods imports to

• 1) EU 2025, https://ec.europa.eu/commission/presscorner/detail/en/ ip_25_1973
• 2) IWF World Economic Outlook 2026, https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-updatejanuary-2026
• 3) National Bureau of Statistics of China 2026. https://www.stats.gov. cn/english/PressRelease/202601/t20260119_1962328.html
• 4) Bureau of Economic Analysis 2026, https://www.bea.gov/ news/2026/gdp-advance-estimate-4th-quarter-and-year-2025

get ahead of anticipated tariff initiatives by the Trump administration. Housing starts and consumer spending were also weaker year-on-year due to a deteriorating employment situation. The government's austerity measures affecting spending and support programs and the elimination of government jobs hindered growth as well, while the tax cuts passed mid-year will only take full effect in future years. US tariffs have been particularly burdensome to Eurozone countries that are strong in manufacturing and industrial utilization lay well below the average at yearend.8) The capex and defense projects approved by the government despite ballooning the budget deficit provided only slight growth stimulus going into the end of the year. Despite falling interest rates, construction output and construction investment were lower year-on-year. Building permits and new orders in the primary construction industry have at any rate recovered. Although the German labor market has deteriorated further since the start of the year, the unemployment rate has stagnated at 6.3% since March 2025.9)

7) Federal Statistical Office 2026, https://www.destatis.de/DE/ Themen/Wirtschaft/Volkswirtschaftliche-Gesamtrechnungen-Inlandsprodukt/Tabellen/bip-bubbles.html?nn=2110

production. Besides Germany, this means Austria and Italy, whose economies expanded significantly less than the Eurozone average. The automotive industry, which is important to those countries, has been severely affected, and electrification and decarbonization remain major challenges despite isolated political relief measures such as protective tariffs and the adopted relaxation of emission standards. In France, the combination of unstable government, high consolidation pressure on the national budget and popular protests have led to a subdued business and consumer climate that has worried financial markets. Southern European countries, principally Spain, have benefited economically from continuing strength in tourism and service sector. Real GDP growth in the Eurozone as a whole accelerated to 1.5%, significantly narrowing the gap with the US.5) The "Readiness 2030" defense program initiated by the EU Commission at the start of the year granted member states greater fiscal leeway regarding aid to Ukraine and defense spending while making 150 billion euros6) in low-interest loans available, but the full impact of the program will only unfold over the next few years. In this environment, Germany recorded a slight increase after two years of declining real economic output. GDP increased by 0.2% in 2025 on an inflation-adjusted basis.7) The key GDP growth drivers were consumer spending, driven by real wage growth, and a sharp rise in government spending, offset by lower defense spending and lower net exports. The manufacturing sector remains a problem child, as in addition to the trade disputes with the US as Germany's most important export market that are affecting many goods producers, structural change in the central automotive industry and the electromobility trend are creating further negative impact. Mechanical engineering and other industries along the value chain have been affected as well. Manufacturing capacity Average inflation for 2025 came in at 2.2%10) for Germany (CPI), just slightly above the ECB's target level of 2%. Eurozone inflation (HCPI) was slightly below Germany's inflation level, at 2.1%.11) Falling energy, electricity and crude oil prices primarily led the decline, while core inflation and service sector inflation were unaffected, due primarily to rising wages and robust employment above the Eurozone average. The ECB continues to closely monitor service sector inflation and wages, and has committed to a data-driven approach without giving explicit forward guidance. Given that inflation is at its target level, the Council paused its interest rate cycle in July after four 25 basis-point rate cuts in 2025. The deposit rate, relevant as a monetary policy yardstick, was at 2.0% at yearend.12) The ECB liquidity policy remained unchanged however over the course of the year, without reinvesting maturing bonds within bond buying programs, thus gradually decreasing excess liquidity. b) Industry-specific conditions Germany's electrical and digital industries continued to suffer from the tough economic conditions in early 2025. Inflation-adjusted production declined 2.5% year-on-year in Q1.13) But in March 2025 domestic orders recovered by a nominal 21.2% on optimism around the federal elections to nearly reach the previous year's level.14) The announcement of reciprocal tariffs by US President Donald Trump initially caused 8) ifo business climate index January 2026, https://www.ifo.de/fakten/2026-01-26/ifo-geschaeftsklimaindex-unveraendert-januar-2026 9) Federal Employment Agency 2026, monthly report, December 2025, https://statistik.arbeitsagentur.de/SiteGlobals/Forms/ Suche/Einzelheftsuche_Formular.html?nn=627730&topic_ f=monatsbericht-monatsbericht

• 10)Federal Statistical Office 2026, https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Verbraucherpreisindex/Tabellen/Verbraucherpreise-12Kategorien.html#236130
• 11) Eurostat 2026, https://ec.europa.eu/eurostat/databrowser/view/ prc_hicp_ainr/default/table?lang=de&category=prc.prc_hicp.prc_ hicp_ecoicop2
• 12)EZB 2025, https://www.ecb.europa.eu/stats/policy_and_ exchange_rates/key_ecb_interest_rates/html/index.en.html

⁵⁾ Eurostat 2026, https://ec.europa.eu/eurostat/de/web/productseuro-indicators/w/2-30012026-ap

⁶⁾EU Commission 2025, https://defence-industry-space.ec. europa. eu/eu-defence-industry/safe-security-action-europe_en

¹³⁾ZVEI, Germany: Business Cycle Report, May 2025

¹⁴⁾ZVEI, Germany: Business Cycle Report, May 2025

a jump in exports to the US by Germany's electronics and digital industry (Q1 2025: +8.4%), which more than compensated for weak demand from China (Q1 2025: -17.2%).15) By mid-2025, the industry's situation had improved. Driven by foreign orders, which surged 39.4% in June 2025, nominal new order volume increased 5.8% year-on-year for the first half.16) The order backlog completion horizon improved slightly to 4.2 months (previous year: 4.1 months) while business expectations for the next six months rose by a net +4 index points (previous year: -9), indicating a more positive view of the business climate.17) Despite uncertainty surrounding US tariffs, the US overtook China as the country's largest export customer. In the first half of the year, the People's Republic of China purchased 12.2% fewer products from the German electronics industry, while German imports of Chinese goods increased by 7.5%.18) In the period January to November 2025, China remained the largest supplier, with a share of 29.9%.19) During the same period, the decline in real production improved again year-on-year, from -9.3% to -0.5%.20) Manufacturing orders continued to rise on strong foreign order flow, leading to a volume increase of 5.0%.21) The improved order situation yielded a 0.4 percentage point increase in capacity utilization (78.2%) year-on-year, but the order backlog completion horizon fell to 3.9 months during the same period.22) The German Electro and Digital Industries Association (ZVEI) projects a stagnated figure for the year 2025 due to weaker demand from the Far East and fallout from trade disputes.23) A slight recovery of around 2% is projected for the year ahead.24)

The performance of German mechanical engineering in 2025, as DATA MODUL's most important customer industry, was affected most by US tariff policy, which left a significantly higher (flat 15%) tariff level after the EU agreed a trade deal with the US. Many mechanical engineering products were furthermore affected by additional tariffs (50%) on steel and aluminum derivatives. The attendant documentation requirements create additional burden for machinery and plant manufacturers, and the future is uncertain, as "Section 232" is revised every four months, possibly leading to the 50%

• 15)ZVEI, Foreign Trade Report, May 2025
• 16)ZVEI, Germany: Business Cycle Report, August 2025
• 17)ZVEI, Germany: Business Cycle Report, August 2025
• 18)ZVEI, Foreign Trade Report, August 2025
• 19)ZVEI, Foreign Trade Report, January 2026
• 20)ZVEI, Germany: Business Cycle Report, January 2025 / January 2026
• 21)ZVEI, Germany: Business Cycle Report, January 2026
• 22)ZVEI, Germany: Business Cycle Report, January 2026
• 23)ZVEI, World Market, EDI Outlook up to 2026
• 24)ZVEI, World Market, EDI Outlook up to 2026

tariff rate being applied to further steel derivatives. Following a 6.9% decline in real production in 2024, the negative trend continued in 2025, with another 2.8% decline over the first ten months of the years versus the same period in the previous year.25) A similar picture emerged with regard to new orders, which decreased 8% in 202426) and then stagnated over the first eleven months of 2025 on an inflation-adjusted basis.27) New orders from Euro partner countries were a positive factor, which rose 8% in the same period.28) The ifo Business Climate Survey for November 2025 showed that over 40% of mechanical engineering firms see insufficient new orders (versus 36% for the manufacturing sector overall).29) Industry weakness was directly reflected in exports, as German mechanical engineering firms recorded a nominal 3.1% decline in exports to 147.9 billion euros for the first three quarters of 2025. This corresponds to a decline of 4.6% on an inflation-adjusted basis.30) As expected, exports to the US were hit particularly hard by introduction of the flat tariff, falling 9.4%.31) Business with China also declined significantly over the first three quarters of 2025, with exports of mechanical engineering products to the country declining 8.8% versus the same period in the previous year.32) Exports to the EU also declined during the same period, by 2.2% year-on-year, but have recently regained some momentum.33) Of the 20 main export countries for German machinery manufacturers, increases were recorded only to Italy (+5.6%), Brazil (+3.7%), Romania (+2.0%) and Belgium (+0.5%).34) While US tariff policy is likely to continue having a negative impact on machinery manufacturers, recovery is still expected for 2026, albeit perhaps slight. The main ray of hope here is the economic stimulus package with special fund adopted by the Federal Government, which encourages expectations of a sustained economic recovery and structural reforms (reduced bureaucracy, social security reform, etc.). The persistent low interest rate environment should also favor capital expenditure. As a late-cycle industry, mechanical engineering will likely benefit from improving customer mood and capacity utilization, albeit with some delay. The German Mechanical Engineering Asso-

• 25)VDMA, Germany: Economic Update, January 2026
• 26)VDMA, Germany: Economic Update, March 2025
• 27)VDMA, Germany: Economic Update, January 2026
• 28)VDMA, Germany: Economic Update, January 2026
• 29) ifo Economic Forecast 10/2025, October 2025
• 30)VDMA, Germany: Economic Update, December 2025
• 31)VDMA, German machinery exports by country or by machinery group, December 2025
• 32)VDMA, German machinery exports by country or by machinery group, December 2025
• 33)VDMA, German machinery exports by country or by machinery group, December 2025
• 34)VDMA, German machinery exports by country or by machinery group, December 2025

2.3 Group business situation

a) Earnings

The previous year's level of 201,406 thousand euros in new orders was exceeded, this figure coming in at 210,431 thousand euros in order volume. Order backlog declined to 132,569 thousand euros on weaker order flow and a book-to-bill ratio slightly below 1 (previous year: 141,270 thousand euros). At fiscal year-end, revenue totaled 212,878 thousand euros (previous year: 226,208 thousand euros). The Company again recorded a high percentage of international revenue and an export quota of 54.9%, reflecting our continuing strong commitment to internationalization.

Revenue broke down by region as follows:

Revenue breakdown in millions of euros	2025	2024
Germany	96.1	107.0
Europe36)	80.8	76.4
America	20.4	22.5
Asia/Pacific/Africa	15.5	20.2
Rest of World	0.1	0.1
Total	212.9	226.2
Export rate	54.9%	52.7%

ciation VDMA thus sees production output rising only slightly in real terms in 2026, by 1%.35) portfolio and expenses relating to staffing measures created additional expenditures.

DATA MODUL recorded significantly declining revenue across all regions and industries in 2025, except for "Rest of Europe".

The change in key expenses and income items in fiscal year 2025 is shown below.

• Cost of sales decreased year-on-year to 182,257 thousand euros (previous year: 183,737 thousand euros). This was mainly due to the 5.9% decrease in revenue and reduced use of temporary personnel in connection with staffing measures conducted during the fiscal year under review. Several cost factors had a counter-effect however, as in addition to higher procurement costs resulting from an unfavorable EUR-USD-exchange rate movement, incidental acquisition costs and import duties increased as well. In addition, market entry costs for the new curved product

35)VDMA, Germany: Economic Update, January 2026

36) Revenue from European markets excluding Germany is shown here.

• The gross profit margin was 14.4% for fiscal year 2025 (previous year: 18.8%), which was significantly impacted by the negative factors outlined above.
• Research and development expenditure increased to 6,708 thousand euros compared to 6,070 thousand euros in the previous year, mainly due to higher depreciation and amortisation and increased personnel costs.
• Selling and administrative expenses were lower yearon-year at 28,857 thousand euros (previous year: 29,162 thousand euros). Selling expenses accounted for 17,103 thousand euros of total expenses reported (previous year: 18,104 thousand euros), while administration expenses came to 11,754 thousand euros (previous year: 11,058 thousand euros). The decline in selling expenses was mainly due to implemented staff cuts and other costsaving measures, including streamlined trade fair marketing. Administrative expenses increased slightly on the other hand, due mainly to a currency loss of 474 thousand euros (previous year: currency gain of 644 thousand euros reported under 'Other operating income').

The financial result came in at -1,217 thousand euros, above the previous-year figure of -1,347 thousand euros. The higher financial result mainly reflects a decrease in interest on borrowed capital to -77 thousand euros (previous year: -169 thousand euros). Interest expense on embedded derivatives rose however to -150 thousand euros (previous year: -48 thousand euros).

Earnings before interest and taxes (EBIT) came in at -4,901 thousand euros, reflecting rising production costs (previous year: 9,321 thousand euros). The EBIT ratio was -2.3% (previous year: 4.1%). Consolidated earnings before taxes of -6,118 thousand euros was recorded (previous year: 7,974 thousand euros). Tax income of 1,542 thousand euros was recorded (previous year: tax expense of 2,397 thousand euros), and the income tax rate was 25.2% (previous year: 30.1%). Consolidated net income for the year changed in line with pretax profit, coming in at -4,576 thousand euros (previous year: 5,577 thousand euros). Earnings per share for 2025 came to -1.30 euros as compared to 2024 of 1.58 euros (based on a weighted average number of shares of 3,526,182).

Displays segment

Revenue in the Displays business segment fell 7.7% to 126,601 thousand euros due to continuing challenges in the market environment (previous year: 137,194 thousand euros). EBIT of -1,378 thousand euros was recorded (previous year:

2,880 thousand euros). The segment generated consolidated net income for the year of -1,594 thousand euros (previous year: 1,544 thousand euros). Displays recorded a 1.6% increase in new orders, up to 114,881 thousand euros (previous year: 113,099 thousand euros). Order backlog as of December 31, 2025 was 80,207 thousand euros (previous year: 98,383 thousand euros).

Systems segment

Revenue in the Systems segment declined 3.1% to 86,277 thousand euros (previous year: 89,014 thousand euros) for EBIT of -3,523 thousand euros (previous year: 6,441 thousand euros). Consolidated net income for the year for the segment thus came to -2,982 thousand euros (previous year: 4,033 thousand euros). Orders received rose 8.2% to 95,550 thousand euros (previous year: 88,307 thousand euros), Order backlog as of December 31, 2025 was 52,362 thousand euros (previous year: 42,887 thousand euros).

Furthermore, both segments were equally affected by the economic environment and associated cost pressures that further impacted earnings.

b) Financial position

Capital structure

To the extent possible, DATA MODUL Group finances its operations from internal resources, supplemented by borrowings from financial institutions when necessary. Currently, DATA MODUL Group generally uses natural hedges to protect against potential currency risks with respect to the US dollar, the Japanese yen and the Hong Kong dollar. No hedging instruments were held at the reporting date.

The equity ratio was 75.3% (previous year: 71.9%), the debt ratio was 24.7% (previous year: 28.1%). The Group's leverage ratio was 32.8% (previous year: 39.0%—debt/equity).

Debt consists primarily of

• 15,501 thousand euros in discounted leasing liabilities recognized in accordance with IFRS 16 (previous year: 16,899 thousand euros)

The maturity breakdown of the undiscounted expected cash flows is shown below.

Lease liabilities		< 1 year 1-5 years > 5 years		Total
KEUR	3,561	10,183	6,525	20,269

• Non-current contract liabilities of 5,370 thousand euros (previous year: 5,980 thousand euros)
• Trade accounts payable of 11,693 thousand euros (previous year: 15,877 thousand euros).
• Other current liabilities of 7,724 thousand euros (previous year: 7,395 thousand euros)
• Other current financial liabilities of 2,192 thousand euros (previous year: 4,169 thousand euros)

Liabilities due within one year break down by currency as follows (in thousand euros):

Trade accounts payable	< 1 year
USD (euro equivalent)	8,808
EUR	2,236
PLN (euro equivalent)	205
Other (euro equivalent)	444
Total	11,693

The Company also has guaranteed bills outstanding in the form of bank guarantees in the amount of 1,655 thousand euros (previous year: 1,826 thousand euros).

The maturities are as follows (in KEUR):

Guaranteed bills outstanding		< 1 year 1-5 years > 5 years		Total
KEUR	0	750	905	1,655

Group companies have credit lines totaling 48,500 thousand euros at their disposal until further notice. These lines had not utilized as of the reporting date. DATA MODUL AG is jointly and severally liable with DATA MODUL Weikersheim GmbH for the full debt amount of any credit lines drawn upon by DATA MODUL Weikersheim GmbH. No special financing measures or projects were conducted in the period under review.

Capital expenditure

In the fiscal year ended we adjusted our capital expenditure in alignment with business changes. Capital expenditure focused on capacity expansion, streamlining and increasing manufacturing productivity and further developing and improving the quality of our displays and services. A significant portion of capital expenditure in 2025 went to migrating our existing ERP system over to a new, technologically advanced ERP version and expanding production capacity in Lublin and Shanghai. Capital expenditure in fiscal year 2025 (excluding right-of-use assets per IFRS 16) totaled 3,905 thousand euros (previous year: 3,583 thousand euros).

The main capital expenditure items were:

• euros).

• and

• Capital expenditure in the Systems segment of 2,078 thousand euros (previous year: 1,960 thousand euros).

Liquidity

Cash flows from operating activities as of the reporting date came to 180 thousand euros (previous year: 21,728 thousand euros). This figures reflects the net loss for the year and further negative effects from lower other liabilities, contract liabilities and trade accounts payable, offset by high depreciation and impairments and lower other assets year-on-year. Days sales outstanding (DSO) improved to 46.34 days as of 12/31/2025 (previous year: 49.26 days).

• Additions to intangible assets in the amount of 1,455 thousand euros (previous year: 1,093 thousand euros) and • Additions to property, plant and equipment in the amount of 2,450 thousand euros (previous year: 2,490 thousand A breakdown of capital expenditure by segment is provided below: • Capital expenditure in the Displays segment of 1,827 thousand euros (previous year: 1,623 thousand euros) The balance sheet total decreased by 17,419 thousand euros year-over-year to 192,652 thousand euros (previous year: 210,071 thousand euros). The decrease in assets was primarily due to trade accounts receivable declining by 3,558 thousand euros and cash and cash equivalents decreasing by 7,432 thousand euros. Lower tax receivables in the amount of 2,306 thousand euros and lower contract assets in the amount of 1,814 thousand euros also had negative impact. This was offset by the balance sheet total increasing by 3,249 thousand euros due to higher deferred tax assets on loss carryforwards.

Increased investment in intangible assets and property, plant and equipment in 2025 resulted in cash flow from investing activities of -3,906 thousand euros (previous year: -3,514 thousand euros). After the dividend distribution for fiscal year 2024, cash outflows for leases and the redemption of bank debt, cash flow from financing activities came euros).

As at the balance sheet date, there are no other significant investment commitments, with the exception of the commitment already entered into to purchase a new production machine at the Lublin site in the amount of 2,520 thousand euros. As of the reporting date, the DATA MODUL Group equity ratio was 75.3% (previous year: 71.9%). 2.4 Financial and non-financial performance metrics

As of the reporting date, open orders with suppliers totaled 87,130 thousand euros in volume (previous year: 96,351 thousand euros).

c) Financial status

to -3,715 thousand euros (previous year: - 11,855 thousand At the end of the year the Group held cash and cash equivalents totaling 12,996 thousand euros (previous year: 20,428 thousand euros). Net cash (cash and cash equivalents less borrowings) totaled 12,996 thousand euros as of the reporting date (previous year: 20,425 thousand euros). DATA MODUL was able to reach its revenue and EBIT targets for fiscal year 2025 as revised on October 16. The investments we have made, however, in our production sites in Poland and China put us in a strong position to meet future challenges in the marketplace. The Group holds 12,996 thousand euros in cash and cash equivalents in addition to unused credit lines, thus the Group has sufficient liquidity to meet its payment obligations.

A dividend was distributed in the reporting period for fiscal year 2024 in the amount of 423 thousand euros (previous year: 423 thousand euros). At the balance sheet date the Company did not have any non-current bank liabilities.

a) Financial performance metrics and key figures

The table below shows the financial and other key performance indicators for both the year under review and the previous reporting year.

Key figures in KEUR	2025	2024
Orders received	210,431	201,406
Order backlog	132,569	141,270
Revenue	212,878	226,208
EBIT	(4,901)	9,321
Consolidated net income for the year	(4,576)	5,577
Return on equity37)	-3.4%	6.2%
EBIT margin38)	-2.3%	4.1%

37)EBIT/equity (-4,901 thousand euros / 145,141 thousand euros) 38)EBIT/revenue (-4,901 thousand euros / 212,878 thousand euros)

b) Non-financial performance indicators

See section 6 for details regarding non-financial performance indicators. Non-financial disclosures in the Group management report.

3. Risks and Rewards; Forecast

3.1 Risk report

Global economic trends, exchange and interest rate movements, volatile commodity and energy prices and uncertainties regarding customer ordering behavior constitute risks which may have a lasting impact on our business. We are aware of these risks and carefully monitor their impact on our business operations. As a multinational enterprise, DATA MODUL Group is exposed to a number of risks which are inextricably linked to our business activities. Efficient management of these risks is of key importance as they serve as an early warning system.

The term "risk" is used to refer to the possibility of events or developments occurring which may directly or indirectly impact our ability to realize our business targets. The risk management regime we have in place is designed to facilitate the identification, assessment, management and monitoring of such uncertain, potential developments. The overarching goal is to ensure that the Company is able to effectively attain its business targets by minimizing the occurrence of negative impacts.

Our understanding of risk is that it is an inevitable part of doing business, thus we see it our duty to systematically study risks to which we are exposed and take appropriate measures accordingly. Doing so enables us to anticipate potential negative consequences and take proactive steps to ensure the sustained viability of our enterprise as a prosperous going concern. Our risk management approach is designed to consider risks balanced against the opportunities we must take advantage of to succeed as a business over the long term.

Risk management system

Strategic principles

The DATA MODUL Group risk management system is intended to render transparent and manageable any known and arising risks and opportunities in the daily business operations of all Group companies.

The risk management system in place has been adapted to our enterprise-specific needs, based on the basis of the COSO framework. We view risk management as an ongoing process of recording, analyzing and assessing whenever possible the complete spectrum of potential and actual developments, and managing these accordingly. Our risk management regime represents an integral part of the larger management system in place. The aim is to identify at an early stage risks which could threaten the growth or existence of the Company and take appropriate measures accordingly in order to contain their impact. Extending beyond pure risk management, our approach involves measures to identify arising opportunities for DATA MODUL as well. By profitably exploit these we can achieve sustainable growth and increase our enterprise value. To achieve this, all our employees and our decision makers in particular must be aware of any existing and potential risks to which the Company is exposed. A wide array of instruments are integrated into business processes to achieve this goal, which facilitate management on all tiers of the Group's hierarchy.

Organization and responsibilities

The DATA MODUL Executive Board bears overall responsibility for effective risk management; the Board defines the Company's risk-bearing capacity levels and decides on actions to be taken in response to particularly significant, core risks. It also updates the Supervisory Board regularly concerning the Company's risk exposure. Risk management is the responsibility of the Group Controlling Department, which ensures that risk management is an integral part of regular business management rather than a mere response to specific risks. This function enables better identification of risks affecting the entire Group. The Group Controlling Department coordinates risk management processes, assists responsible staff with all risk management aspects, defines risk thresholds, and is responsible for adequate reporting.

Each department and business segment has been assigned a risk manager charged with identifying, analyzing and monitoring risks within his/her area of responsibility. This individual initiates risk response measures and their implementation after consultation with Risk Control or the Executive Board. Our risk management manual, available to all staff, outlines all relevant risk management components.

Risk identification

The starting point of our risk management process is conducting a quarterly review to identify key risk factors and risk sources in the respective operational and functional risk areas. The process is conducted using suitable methods, such as interviews, checklists and questionnaires. We involve the individual departments in the risk inventory process so as to heighten risk awareness, which requires creating transparen-

cy around emerging risks. The goal is to identify risks before events occur causing damage to the Company. Risks are classified according to defined risk categories and documented regarding their cause, the actual risk involved and impact on the Company. All risks are recorded in a risk catalog, analyzed and assessed. Risk assessment and risk management changes and to the adequacy and efficiency of the risk strategy currently in place. Constant monitoring of proposed risk response measures and reporting on their status is an important risk control tool. Risk reporting by risk category and type is a standard element in the monthly reporting to the Executive Board, which ensures that Management maintains an overview of the Company's risk exposures. We thus prepare a quarterly risk report and discuss risks and rewards for the individual DATA MODUL business segments in monthly, quar-

Risks are assessed as to their impact and probability of occurrence, taking risk correlations into account. The Group's key performance metrics for the current and future years serve as reference points. If quantitative risk assessment is not possible, a qualitative method is used to assess impact. The tables below show the measurement charts for these two assessment variables (degree of impact and probability of occurrence), the risk classification matrix thereby derived and the change in risk exposure versus the previous year. Risk analysis results are presented within a risk portfolio and compared against risk-bearing capacity, which is tied to balance-sheet equity. A given risk is classified as "high", "medium" or "low" depending on the degree of potential impact on the Company's business operations, financial position, financial performance, cash flows or reputation, and on the estimated probability of occurrence. Depending on the risk perception and position, the Company introduces different risk strategies and specific counter-measures. A staff terly and year-end financial statement meetings. Additional ad-hoc risk reporting ensures that the Executive Board is always up to date regarding any significant newly arising risks. In view of the strong similarities between the business segments, opportunities and risks relevant for Group management are assessed on an aggregate level rather than being viewed distributed across the individual segments. These are not the only risks we are exposed to. Other risks not yet identified or considered immaterial at this time could also have an impact on our business. As of the reporting date we were not aware of any risks which could jeopardize the Group as a going concern. Opportunities and risks are shown in reporting on a net basis, i.e. net of any offsetting factors. a) Corporate strategy risk Business model risk Our business strategy is about growth and profitability. Decision-making within the Group regarding capital expenditure

member is then charged with implementation of these measures. Risk control measures are implemented based on our strategic risk principles. Risk monitoring and reporting Risks are subject to constant change, thus they are continuously monitored by the risk owners and risk officers as to and acquiring equity stakes are made with these business objectives in mind. Our portfolio of embedded and touch systems and curved monitors successfully introduced in the marketplace a few years ago has become integral to our business activities.

Corporate strategy risks may result from internal projects and strategic decisions which fail to meet expectations. In the Displays segment there is heightened risk from Asian suppliers copying our distribution business model and seeking direct access to our customers. In consequence, investments made may not pay off for example, or the decision to evolve into an end-to-end system solutions provider may prove inadvisable. In the Systems segment, we manage such risk on an ongoing basis though regular market analyses and conducting monitoring.

DATA MODUL has worldwide operations, with production sites and sales offices around the globe. Selecting business locations involves risk in that market potential, logistical efficiency, labor availability and other factors may not have been adequately planned for. Resource utilization and operating costs may be impacted as a result. DATA MODUL conducts in-depth analyses before selecting a business location to ensure having comprehensive information regarding all associated advantages, disadvantages and potential possible risks. Additionally, the appropriateness of existing locations is reviewed on an ongoing basis.

In strategic planning and internal coordination between key areas of the firm, DATA MODUL faces challenges in efforts to identify potential inefficiencies and structural risks and address these. The essential purposes of our internal control system furthermore include effective monitoring of projects and processes and timely recognition of warning signs, which help us avoid undesirable developments and mismanagement. The overall risk level is assessed as medium (previous year: low).

Management risk

Differing objectives on the part of DATA MODUL stakeholders can give rise to conflicts and obstacles for decisionmaking. Such differences can complicate strategic planning and decision-making, potentially leading to process inefficiencies and impaired ability to appropriately respond. Close coordination with shareholders, the works council and otherwise is essential in enabling us to define our common goals and move forward together in coherent fashion. This involves actively working to harmonize the interests of the various stakeholder groups and empower the Company to act more effectively. The risk level in this category is assessed as low overall.

Environmental risk

Environmental risk factors, which include natural disasters and climate change, can significantly impact business. Flooding, heat waves and storms and other extreme weather events can affect production processes, disrupt supply chains and reduce the availability of raw materials. The longer-term consequences of climate change, such as rising sea levels and altered climatic conditions, can have a lasting impact on site selection and operating costs. Systematically assessing these risks, taking preventive measures and integrating climate protection measures into our corporate strategy are the key steps we take to minimize potential impact on DATA MODUL and make our organization more resilient to changing environmental conditions. The risk level in this category is assessed as low overall.

b) Market risk

Economic conditions, sales volume risk Demand for DATA MODUL products is subject to a certain amount of cyclical fluctuation and volatility. In addition, demand rises and falls in line with the economic cycles in our primary markets, and could continue declining in future.

International conflicts continue to cause a high degree of uncertainty and volatile conditions that are impacting the economy. Despite isolated diplomatic initiatives, Russia and Ukraine are still at war as of early 2026, and a lasting resolution to the conflict is not in sight at this time. How the conflict may further play out is unknown, significant repercussions could continue to be felt, affecting economic stability in Europe and neighboring regions.

The situation in the Middle East remains tense as well, where despite temporary ceasefires and de-escalation efforts, risk of renewed escalation and the spreading of conflict to other states persists. Additionally, geopolitical tension has further risen around Greenland, which is of increasing strategic interest to international actors in the region, particularly in regard to national security and access to raw materials. Further political tension could conceivably lead to a conflict there. If these situations should further deteriorate, the international economic environment would accordingly become even more rattled.

Escalation or expansion of international conflicts and wars could lead to further economic restrictions, political instability, and heightened uncertainty in affected markets. DATA MODUL does not have and has not had any significant business relationships with customers or suppliers in the countries directly involved in the above conflicts.

As before, the present economic situation holds considerable uncertainties which could potentially impact our business activity. The troubled economic situation in Germany, with weak economic growth and structural problems, poses a particular challenge.

DATA MODUL primarily operates in markets characterized by a great deal of innovation and rapid technological change. Thus there is always a risk that the Company will not be able to adapt fast enough to new market trends or new technologies, and therefore lose market share to competitors. We maintain very close contact with leading display manufacturers and our customers in order to minimize this risk. Following market trends is not a sure path to lasting success, as decisions made based on short-term considerations may proved incorrect in the longer run. Losing key customers to competitors represents another substantial risk to DATA MODUL's business. Changes in legislation and new regulations may affect sales in certain industries and target markets.

Furthermore, trade policy conflicts persist at the global level that are undermining the international business environment. US trade policy has become a particular source of heightened uncertainty. Announced or potential protectionist measures, such as the introduction of additional punitive tariffs and the tightening of existing trade restrictions, could impact demand worldwide, affecting both the markets we sell to and the markets we purchase in. Asia to Europe are having additional negative impact. The security situation along key maritime trade routes, especially in the area of the Suez Canal, is causing longer delivery times and driving up shipping and insurance costs. DATA MODUL is addressing these risks by conducting active inventory management and strategically managing purchasing in a forward-looking manner.

We aim to be the innovation and technology leaders in our markets. This and the fact that we operate in markets driven by innovation pose particular challenges regarding our product portfolio and services. The flatbed displays business is highly competitive. Additionally, it is normal for prices of some of our products to fall during their life cycle. The ability to develop and successfully market new products that meet the market's needs will be of ever-greater significance in the future. We are addressing these challenges by intensifying our research and development efforts. Increasingly we are finding ourselves in direct competition with our Chinese suppliers, who are especially known for agility. Furthermore we strive to recognize our customers' needs early on so we can respond to these with appropriate products. The risk level in this category is assessed as high overall.

Procurement risk

The flat panel display market is dominated by a handful of manufacturers, most of whom are based in East Asia. The semiconductor supply situation is a mixed picture. Parts of the general market have stabilized, but supply bottlenecks persist for certain chip types—especially for specialized and high-performance components. Given the existing geopolitical tensions, particularly in connection with the China-Taiwan uncertainty.

US trade policy is creating additional uncertainty, as potential protectionist measures, such as additional tariffs or trade restrictions, could affect international trade and impact procurement costs, delivery times and the availability of intermediate products.

Due to concentration on a few suppliers and the need to maintain buffer inventory, there may be risk of inventory write-downs, due particularly to customers moving back delivery dates and canceling orders. Risk of falling prices is taken into account in regular inventory valuations, in accordance with applicable accounting rules. The average days sales in inventory was 189 stock days during the year under review, as compared to 188 stock days in the previous year, reflecting efforts to avoid supply problems. Persistent inflation is creating procurement price risk, which we manage by looking at our margins on an ongoing basis and adjusting sale prices accordingly.

conflict, the supply situation remains subject to heightened Logistical risks affecting the transport of goods from East Being the quality leader gives us an edge over our competition, and it is our goal to retain and widen that edge. This requires us, however, to rapidly identify and fix any product weaknesses, an ability we enhance through constant inno-

DATA MODUL has been carefully monitoring and assessing the economic, political, legal and social environment in order to take account of any arising risks or opportunities in our decision-making processes at an early stage. The risk level in this category is assessed as high overall.

c) Operational risk

Product risk

DATA MODUL has increased vertical integration of production in order to add more value for customers. This involves product quality and customer satisfaction risks, however. Systematic quality assurance processes have thus been implemented which play a key role in our value chain, enabling us to meet customers' expectations. Because of increased production capacity, general risks related to production processes may arise which jeopardize our product supply. Our QA department performs regular supplier audits, which we view as important for ensuring quality and reliable deliverability in our supply chain.

vation and quality improvement. We are liable to our customers for the quality of our products. Quality management and quality assurance are thus essential in our view to minimizing this risk. Nevertheless, experience has shown that a minor amount of risk remains. Legal disputes arise in connection with ordinary business activities, involving claims over improper product delivery or service provision, product liability, product defects, quality problems and title infringements. There is no guarantee that DATA MODUL's reputation will not suffer from these or other legal disputes.

Defective products may lead to warranty claims against companies of the DATA MODUL Group, or these companies may be held liable for damages. We have recorded provisions for warranty claims and legal disputes to the extent we believe such obligations will probably exist and the amount of damages can be adequately assessed. Certain legal risks are covered by appropriate insurance policies which are commonly used in the industry.

Avoiding development errors is crucial in order to ensure product quality and reliability. Development errors are not only costly; they can damage our image and reputation. We thus follow defined processes and use comprehensive checklists as part of efforts to eliminate error potential. Having such structured workflows ensures that review and validation loops are systematically conducted throughout the development cycle. The goal is to minimize error risk through unambiguous policies and standardized procedures that ultimately ensure our ability to deliver high-quality products to our customers. The risk level in this category is assessed as medium overall.

Production risk

Managing production risk is crucial in order to enjoy smooth and efficient operations. The goal is to ensure that manufacturing processes for our products run as smoothly and consistently as possible. Identical production technologies are utilized at the Weikersheim (Germany) and Lublin (Poland) implemented emergency procedures to mitigate potential negative effects. The risk level in this category is assessed as low overall.

IT-related risk

sites, and partly in Shanghai (China), as a means to effectively manage the risk of production infrastructure outages. We see this as a significant production advantage, as a technical failure at one location as production can still continue, thus containing the risk of a major manufacturing disruption. We furthermore conduct regular maintenance and full inspections at our production facilities. Such preventive measures enable identifying and remedying defect potential at an early stage, thereby maximizing manufacturing process reliability and efficiency. We manage risk around rising energy costs by concluding long-term contracts with utility providers. Backup generators have been purchased for the Weikersheim and Lublin locations to ensure that our facilities maintain power in the event of a blackout. DATA MODUL is furthermore exposed to external risks such as natural disasters, fires and accidents. Business activity could be disrupted due to resulting damage to buildings, production facilities or warehouses. We contain these risks in various ways. In addition to insurance coverage, we have Personnel risk Management believes that the success of DATA MODUL Group is due to our comprehensive expertise and many years of experience in the field, and also to our highly motivated and dedicated employees. Accordingly, we are at pains to structure our HR policies in alignment with the company philosophy of "Success through expertise and responsibility". The Group is responding to ever-intensifying competition for highly qualified specialist personnel and managers, and the associated risks of losing know-how through staff turnover, by providing attractive training opportunities, targeted staff development offerings and performance-based pay components and remuneration schemes. DATA MODUL's flat hierarchical structure, open communication policy and continuous knowledge-sharing promote employee satisfaction. We secure new talent for the Company by regularly providing apprenticeships for many young people. In parallel with the deteriorating economic situation we are seeing the labor market loosen up, so that skilled labor is more available. The risk level in this category is assessed as low overall.

IT risk has become a core concern for in today's increasingly digitalized business environment. Ensuring IT integrity, availability and confidentiality is critical so that potential threats to data, systems and business processes can be proactively identified and managed. Approval procedures, access profiles and technologies are deployed to contain threats. Critical data files are backed up on a daily basis, and we conduct regular disaster recovery testing. Reviewing our IT security regime was an especially high priority in the wake of a cyber attack. Enhanced security measures have been taken to better defend against attacks and protect against data loss, modification and theft. In addition to regular training sessions that are mandatory for all staff, we have invested in IT infrastructure in terms of both software and hardware. These measures include security protocols and improved backup procedures that effectively reduce the risk of falling victim to a cyberattack. In addition, our protective measures are tested by external experts to verify their effectiveness and efficiency. Our IT systems are continuously checked and improved to ensure the security and efficiency of our business processes on an ongoing basis. Furthermore, employees are required to comply with our IT policies. DATA MODUL took extensive measures in the year under review aimed at minimizing IT risk. The risk level in this category is assessed as medium overall.

Logistics risk

War, natural disasters and other disruptions like the recurring pirate attacks on ships by Houthi rebels can significantly impact international shipping. Unpredictable incidents of this nature can cause delays and necessitate rerouting, ultimately pushing up freight costs to unexpected levels. Transport insurance is obtained to cover financial losses connected with logistical risk and price analysis has been introduced as a standard measure to facilitate flexible response to market fluctuations. The risk level in this category is assessed as low overall.

d) Stakeholder risk

Financial risks

Our global business activities result in many payment flows in various currencies. The US dollar, Polish zloty, Chinese renminbi and Hong Kong dollar are the foreign currencies of greatest importance to Company's operations. The Group is exposed to risk from foreign exchange rate movements, thus hedging is an integral part of our risk management strategy. We mainly use natural hedges to hedge against risks from foreign currency business transactions calculated in euros. Foreign exchange hedges are employed to secure our calculated margins, avoiding potential foreign exchange losses, which would increase the cost of purchased components. The credit facilities available for financing our global business operations are subject to interest rate risk. If interest rates on loans remain high, this could lead to greater interest expenses being reportable on the Consolidated Financial

Statements. In certain cases, membership in the ARROW Group has been detrimental for DATA MODUL's rating with lenders.

Currently the DATA MODUL Group has credit lines and bank guarantees totaling 48,500 thousand euros (credit lines unused as of the reporting date). These credit facilities are granted by various banks under bilateral agreements. The credit agreements in place with banks do not contain financial covenants other than the standard quarterly reporting obligations. Management believes we will continue to have these credit lines at our disposal in the same amounts or amounts which meet our requirements. The Group's liquidity situation is good, as before, and we have virtually no liquidity risk at this time. In the event of a future change of control, the Group will negotiate new arrangements with lenders going forward.

Default risk exists in that a contractual partner may be unable to fulfill or may be delayed in fulfilling obligations, causing DATA MODUL to suffer financial losses. In order to contain bad debt risks we verify our customers' credit standing and obtain trade credit insurance for trade accounts receivable. In some cases, precautionary/surety measures are agreed directly with the customer when deemed necessary. The average days sales outstanding (DSO) figure for 2025 was 46.34 days (previous year: 49.26 days). An increase in bad debts is not expected in fiscal year 2025, thanks to existing trade credit insurance and our credit checking policy. The risk level in this category is assessed as low overall.

Compliance risk

DATA MODUL is subject to many different laws and regulations as an enterprise with international operations and access to capital markets. The international business practices of the corporate group are thus influenced by wide-ranging compliance requirements and tax and customs regulations, which furthermore change over time. Non-compliance, including any breach of the EU General Data Protection Regulation (GDPR), can result in significant fines, additional expense and negative media coverage for the Company. The Company is also exposed to risk through the potential for violations of applicable laws and regulations by its employees. DATA MODUL proactively manages such risk by obtaining professional legal and tax advice on an ongoing basis. The Company closely monitors legislative changes and takes measures as necessary to ensure that its business practices conform with applicable laws. The Company has implemented internal control mechanisms to this end, and Company employees receive compliance training as necessary. The risk level in this category is assessed as low overall.

Reputation risk

DATA MODUL is at pains to preserve the Company's positive image vis-a-vis the public. Negative media coverage of a breach of environmental regulations or corporate governance issues, for example, could tarnish that image. In addition to harming the Company's public reputation, such incidents undermine the trust that our investors, customers and other stakeholders place in us. Targeted public relations, full compliance with all applicable rules and regulations and taking proactive measures are key to preserving the longterm credibility and market position of DATA MODUL. The risk level in this category is assessed as low overall.

Fraud risk

We have exposure to fraud risk in various forms, which can harm us on the financial and operational levels. We conduct constant monitoring to manage financial fraud risk, and have implemented stringent control mechanisms aimed at preventing illegal transactions and manipulation. We have fraud risk exposure in the supply chain, for example if suppliers provide false information or falsified documentation, which can lead to disruptions and greater cost. Insider fraud is a risk as well, in situations such as the fraudulent obtaining of benefits and the misuse of Company resources by an employee. Identity theft is another risk, involving challenges around protecting sensitive data and preventing unauthorized access. We effectively address these risks to maintain workflow integrity by implementing technological solutions, conducting mandatory training and upholding a culture of vigilance. The risk level in this category is assessed as low overall.

Conclusions

As of the reporting date the Executive Board saw no risks which pose a going-concern threat to the DATA MODUL Group. Nor did risks in aggregate pose an evident going-concern threat to the DATA MODUL Group as of the reporting date.

Internal controls and risk management with regard to Group financial accounting

Our internal control system, based on the COSO framework, comprises the standards, processes and measures introduced by Company management and aimed at organizational implementation of management decision-making to ensure efficient and cost-effective operations (including asset security and the prevention and discovery of pecuniary losses), correct and reliable internal and external invoicing, and compliance with legal requirements applicable to the Company.

DATA MODUL has Group-wide controlling instruments deployed as part of its internal control and risk management system and utilizes financial performance indicators and metrics. Target vs. actual comparisons of financial performance indicators are used principally to measure attainment of DATA MODUL objectives. Project cost control and the degree of deviation from planning are especially important performance indicators. Performance indicators are checked versus quantitative and qualitative non-financial indicators. DATA MODUL monitors these indicators as part of integrated project management and controlling. The DATA MODUL AG Executive Board receives periodic reports and ad-hoc reports as necessary. In the reporting, all projects are thoroughly analyzed, taking into consideration the complete set of performance indicators.

Accounts receivable are regularly reviewed to ascertain any value impairment. The Company consults credit agencies to verify credit standing prior to the first-time customer delivery, and periodically thereafter. As soon as there is any indication of a change in a customer's credit standing, a new credit check is performed. Corresponding impairment losses are recorded as necessary.

DATA MODUL ensures the correctness of its financial accounting through use of an internal control system. The internal control system is structured with measures of an organizational and technical content, such as coordination processes, automated plausibility segregation of functions.

The Executive Board bears overall responsibility for the internal control and risk management system with respect to the departments in the Consolidated Financial Statements.

which have a major impact on our business accounting and on the overall view presented by the Consolidated Financial Statements and Group Management Report. In particular,

these are as follows:

• Identifying material risk and control areas relevant to Groupwide financial accounting
• Monitoring of Group accounting processes and their results on the levels of the Group Executive Board, the strategic business segments and the Group companies included in the Consolidated Financial Statements
• Preventive control measures in Group finance and accounting and at the consolidated companies as well as operating, performance-related business processes, generating material information for inclusion in the Consolidated Financial Statements including the Group management report, including segregating of functions and controlling of predefined approval processes in relevant areas, and
• Measures to ensure appropriate computer-aided processing of Group accounting-related issues and data.

financial accounting processes of consolidated companies and to Group consolidated accounting processes. A strictly defined management and reporting structure regulates the inclusion of all companies, strategic business segments and Business principles, organizational structures, workflows and accounting-related processes comprising the internal control and risk management system are documented in Groupwide organizational policies which are regularly updated in response to the latest external and internal developments. With respect to the accounting processes of associated companies, we consider those aspects of the internal control and risk management system to be of material importance Opportunities are defined as uncertain events or circumstances of potential positive impact with regard to the attainment of our business objectives. Inherent to our risk management regime is a tacit acknowledgment that uncertainty is not in itself fundamentally negative. Rather, we understand opportunity as potential for advantageous developments which, if correctly identified and taken advantage of, can further the Company's objectives. Our risk management regime is designed not only for recognizing and managing risks, but also to facilitate the proactive identifying and exploiting of opportunities. This balanced approach helps us in seeking and pursuing positive developments while at the same time containing potential negative impacts. Managing opportunities in systematic fashion enables us to better realize the full potential of our enterprise and be success on a sustained basis.

3.2 Opportunities

Alongside risk factors, we also identify opportunities arising in the course of our business operations, which we analyze in order to take steps accordingly. The most significant opportunities are outlined below, prioritized by their current estimated significance for DATA MODUL. The opportunities outlined below are not necessarily the only ones perceived. Also, the estimated impact of these opportunities is subject to regular change due to the rapid developments constantly taking place within the Company and our markets as well as to technology in general. New opportunities may arise from such changes, and existing opportunities may become less or more pertinent. It is also possible that opportunities perceived today may be unrealizable.

Economic environment and product portfolio. We live in a world of fast information flows. Receiving, processing and responding to information from every corner of the world has become an important factor in everyday life. In the coming years, information will be increasingly communicated via displays. It is a world in which people's quality of life will be directly affected by technological progress. We believe our products represent a meaningful contribution in this regard, and are the right products for the market.

Changes in general economic conditions present opportunities for DATA MODUL as well. We believe DATA MODUL will experience stable to slightly rising business growth over the coming fiscal years (see Management Report section 3.3., "Forecast") as the global economy stages a moderate recovery over the medium term and customers invest more in modern communication media.

We base these growth expectations on our heightened R&D efforts in the field of control electronics and in our industry-related business, in which we operate as OEM supplier of specially developed niche products. There is additional potential in the Embedded sector thanks to our newly developed expertise in the field of touch and optical bonding technology and in display manufacturing for curved modules. Certain orders placed by customers have been illustrative of this potential.

With the US threatening punitive tariffs on Asian products, we see expansion of our product portfolio to include displays "Made in Europe" as a key selling point for our products in the competitive American market.

Attractive growth opportunities for DATA MODUL also lie in the further globalization of our business. Expansion of our business activities in the US and China over the medium term will open up growth opportunities. This will allow us to sustainably grow the Company's enterprise value over the long term. We classify the general level of opportunity in this area as high.

Acquisitions and competition

We look out for acquisition, investment and partnership opportunities which could help us consolidate on our technology leadership, tap market potential and further optimize our product portfolio, and we continue observing the situation in our current markets with regard to opportunities for strategic partnerships and acquisitions augmenting our organic growth. Such activities can further efforts to strengthen our position in our current markets, enter new markets and add select areas of technology to our portfolio.

The intense competition in the markets in which we currently operate constantly challenges us and our customers to strive for innovation. The DATA MODUL business model provides a good basis for realizing these business opportunities. However, the present market situation holds opportunities as well for gaining market share through weaker competitors potentially exiting the market. Because our business units operate in different market and industry segments, DATA MODUL has little dependence on particular industries.

We classify the general level of opportunity in this area as high.

Adding value

DATA MODUL AG may be able to better manage costs by relocating value-creating activities to lower-cost countries. This goal is to be accomplished in part through our expansion production sites in Poland and China. Transferring certain value-adding activities, such as procurement, production, development and maintenance to markets such as the BRICS countries would allow us to reduce costs and strengthen our global competitive standing, particularly with respect to competition from countries where cost structures are more favorable. Additionally, we are working to develop and implement cost-cutting initiatives, adjust capacity, improve processes and rebalance our portfolio constantly. In highly competitive markets, competitive cost structures enhance the competitive advantage of innovation capability.

DATA MODUL sees itself as well-positioned to exploit the market opportunities in the fiscal years ahead, thanks to a cutting-edge product portfolio and the capability to develop new, advanced technologies. We classify the general level of opportunity in this area as high.

Nonetheless, uncertainties remain which could endanger any sustainable improvement in business conditions (see point 2.2. 'Macroeconomic and industry-specific conditions' and point 3.3. 'Forecast' of the Management Report).

3.3 Forecast

The statements made in the following regarding the future business results of DATA MODUL Group and assumptions regarding market and industry trends deemed material in relation thereto are based on opinions which we believe are realistic at the time of report preparation given the information available. However, these assumptions and assessments are subject to uncertainty and involve an inevitable risk that projected developments may not actually occur, with respect to either their direction or extent.

General economic conditions

Business conditions will remain challenging in 2026. 39) The economy will again be heavily influenced by political decision-making and policy choices, and by developments in Ukraine, the Middle East and other geopolitical crisis areas. In our baseline scenario, we assume that the war in Ukraine will continue despite repeated peace initiatives, and that peace in the Gaza Strip will remain fragile. New crises could emerge in Venezuela or Greenland. After an intense exchange of blows between the US and China, there is likely to be a lull in tariffs and export restrictions on rare earths in 2026. However, with Chinese exports now shifting to Europe, creating further burden on a manufacturing sector already weakened by high energy prices, we anticipate selective additional tariffs between the EU and China. The most important date on the polling numbers for the AfD party.

39) BayernLB Research, Perspektiven 10/2025, updated in Perspektiven 1/2026 and 2/2026

After years of recession and stagnation, we estimate GDP growth of 1.0% for Germany in 2026, which is slightly above the estimated long-term "potential" growth figure of around 0.5%. Public and private investment will play a key role in the recovery, significantly relieving pressure on consumption to serve as driver of the economy. Manufacturing and construction will also benefit from this, whose production output should continue to stabilize. The recovery is fueled by a government fiscal stimulus that will sharply push up the aggregate national budget deficit next year, but this is manageable for now since debt is still below 70%. The improved economic situation comes with stabilizing employment. Inflation is likely to remain slightly above the ECB's target level.

US election calendar are the midterm elections coming up in November. A two-thirds majority in both houses, which would allow overriding of the President's veto, remains virtually unattainable for the Democrats. Looking to Europe, the political situation in France remains fragile. In the event of early parliamentary elections or even a presidential election, there is a risk of a shift to the right, which could further restrict the EU's ability to act. Five state elections are scheduled in Germany, with the elections in Saxony-Anhalt and Mecklenburg-Vorpommern in September being of particular interest given high Looking at the economy however, there is reason for cautious optimism. Economic recovery in the Eurozone is expected to gain momentum in 2026, due partly to export activity normalizing after the tariff dispute. Exports will not significantly contribute to growth however due to lost competitiveness caused by tariffs, a stronger euro and high energy costs. Domestic demand is the main growth driver, as rising government defense spending by all member states is likely to have an effect. There is low commitment to reducing bureaucracy at the EU level (simplification instead of deregulation), so only minor growth stimulus can be expected from such initiatives. New jobs continue to be created in the service sector in Southern Europe, thus employment is expected to remain robust despite manufacturing job losses, likely increasing over the course of the year. The ECB is expected to leave the slightly expansionary deposit rate unchanged at 2.0% until the fourth quarter of 2026, as the economic environment improves. An interest rate hike could be seen towards the end of the year in view of gradually rising inflationary pressure. ECB bond portfolios continue to shrink, and excess liquidity in the Eurozone will further decrease. The biggest economic risks to be faced in 2026 again have their roots in politics. Unpredictable actions by the US government could cause noticeable problems ahead of the mid-term elections in November, such as re-escalation of the trade war with China and the EU, or in the form of pressure stemming from US fiscal and monetary policy measures. US withdrawal from involvement in Ukraine or from NATO could lead to a huge defense and security budget problems for Europe. The power struggle between the US and China is straining the international order and forcing Europe to adapt its economic and security policies. Furthermore, regional conflicts and struggles over access to raw materials (especially energy and rare earths) and intermediate products could pose new challenges for the export-oriented economies of Germany and Europe. If extremist parties grow in popularity, particularly following the German state elections or a possible election in France, European governments may have limited ability to respond given the global and domestic economic challenges faced. Highly expansionary fiscal policy could lead to significantly rising bond yields, having a slowing effect on the economy. Financial market price bubbles and the non-revival of demand on the real estate market pose a risk of a severe temporary setback. The widening, intransparent "private credit" spread in the US poses risks to the banking system. Economic opportunities lie in the potential for a further rise in consumer spending as real wages increase as the savings rate is declining, and also in increased government and corporate capex spending with stable interest rates. Heightened multiplier effects in government spending on defense and infrastructure could spark a resurgence for heavy industry. Production could expand in the electronics and mechanical engineering industries if China stages a comeback as global buyer, or if European trade relations with the US stabilize.

DATA MODUL outlook for 2026

In 2026 DATA MODUL will continue its business realignment as part of the Display the Future 2028 strategy, building upon our proven strengths and paving the way to a successful future. The strategy is focused on sustainable global growth in a market environment that is becoming increasingly complex while consolidating at the same time. We intend to align our products even more closely with our target markets' needs and offer even more comprehensive and innovative products and solutions, thus enhancing our global competitiveness over the long term.

The processes and structures implemented on the basis of the double materiality assessment and the sustainability concept developed in 2024 served as framework for the progressive integration of the sustainability concept into everyday business operations as a high priority in fiscal year 2025. Due to regulatory uncertainties, reporting remains a challenging task generally. Please refer to section 6 for further information on sustainability at DATA MODUL. Non-financial disclosures in the Group management report.

We aim for balanced sales growth in Europe, the US and Asia, with Germany remaining the backbone of the Group's business. Plans are in place to further develop sites in Poland, China and the US as part of efforts to expand capacity on a 'local for local' basis. Currently the Group has plans for total capital expenditure of 4 - 6 million euros. Depending on the developments in fiscal year 2026, we will either invest the full amount or reserve part of the funds. We will stay the course strategically, acting in line with the success factors of "investment, innovation and internationalization". We intend to leverage the tremendous display technology experience we have accumulated in over 50 years in the market to capitalize on cutting-edge global trends, developing solutions for more energy-efficient and resource-saving products and for new markets like artificial intelligence and digital health. We thus believe DATA MODUL will continue to enjoy good business opportunities in 2026 and beyond, despite challenges and uncertainties in the global market environment.

These plans are made on the basis of a number of assumptions, including particularly projected revenue. A detailed, reliable forecast is not possible due to the inability to determine the extent to which stabilizing factors could compensate for uncertainties. Because of the aforementioned risks and opportunities, actual circumstances for DATA MODUL could differ from our projections, either positively or negatively. Our projections are based on the following assumptions:40)

• German economic growth: 1.0%
• European economic growth: 1.3%
• US economic growth: 1.8%
• Global economic growth: 2.5%
• Stable USD and JPY exchange rates

Summary

We foresee macroeconomic and geopolitical risk factors playing a highly significant role again in 2026, and that resulting market shifts will require businesses to respond flexibly and adapt. Geopolitical crises in Ukraine and the Middle East, the US-China power struggle, a volatile orders situation and the deleterious effects of trade restrictions and tariffs are giving businesses pause to consider how to wisely and resolutely respond.

Despite noticeably improving employment and the more advantageous position employers now enjoy, attracting qualified and dedicated young professionals will remain an important issue in 2026. As an employer, we aim to retain our staff over the long term provide targeted career pathing and skills development opportunities. Over the next few years we expect the number of Company employees to decline. Any positions coming open are to be filled by individuals who are energetic, internationally oriented team players. Fiscal year 2026 will be a further year of transition for us as we react to changes occurring in the constantly shifting environment by modifying our course and making decisions which at times are subject to a high degree of uncertainty. Assuming a scenario of prolonged recession followed by modest economic recovery, the Executive Board anticipates a sideways trend in revenue but a profitable overall year for the DATA MODUL Group due to cost savings obtained. While weaker growth is projected, we expect increasing revenue over the long term from our expanded business activities in the USA and China, and from our new product portfolio of curved displays.

If the recession is not overcome until late this year, marked by a slight economic recovery, the Executive Board expects slight declines in the Company's key figures and metrics.

in millions of euros	Guidance in 2026	Fiscal year 2025
Orders received	195.0 – 235.0	210.4
Revenue	195.0 – 225.0	212.9
EBIT	0 – 4.2	(4.9)

4. Control of capital

a) Subscribed capital

DATA MODUL AG is classified as a technology firm and has 10,578,546 euros of share capital. The shares are listed on the Regulated Market in Frankfurt (in the Prime Standard trading segment since January 1, 2003), at the Deutsche Börse Xetra and in Munich and also trade on the Open Market in Berlin, Düsseldorf, Hamburg and Stuttgart. The Company's share capital is comprised of 3,526,182 no par value bearer shares. Each share represents 3.00 euros of subscribed capital.

At the balance sheet date, DATA MODUL AG held no treasury shares, thus the number of shares outstanding was 3,526,182.

b) Significant shareholders

The disclosures per Sec. 315a (1) no. 3 of German Commercial Code (HGB) of direct and indirect holdings of share capital exceeding ten percent of voting rights are published in the notes to the Consolidated Financial Statements.

c) Voting rights restrictions The Executive Board is not aware of any restrictions on the transfer of shares such as rights of first refusal or lock-up clauses. Likewise, there are no restrictions on voting rights or controls, and no shareholders hold special rights of any kind. The statutory provisions are observed when appointing and replacing members of the Executive Board. Changes in Executive Board composition are made in accordance with Secs. 84 and 85 German Stock Corporation Law (AktG); changes to the Articles of Incorporation are made in accordance with Secs. 133 and 179 of the German Stock Corporation Law.

5. Corporate governance declaration

The Executive and Supervisory Boards are required to submit corporate governance declaration pursuant to Sec. 289f and Sec. 315d of German Commercial Code (HGB). This declaration is made available to the public on the Company website www.data-modul.com under Company => Investor Relations => Corporate Governance.

6. Non-financial disclosures41)

Introduction

41)The content of this section are unaudited components of the management report.

referred to as the Sustainability Report), DATA MODUL is reporting comprehensively on its sustainability activities in fiscal year 2025 for the second time.

The focus in 2025 was on gradual integration of the sustainability concept into day-to-day business operations, on basis of results from the double materiality assessment conducted in 2024. In parallel, extensive discussions were held at the EU level on possible simplifications of reporting requirements, leading to continuing uncertainty for affected companies regarding report scope and structuring. As in the previous year, the amended thresholds and the content of the Corporate Sustainability Reporting Directive (CSRD), which will in the future affect companies with more than 1,000 employees and 450 million euros in revenue had still not been implemented in national law by the end of 2025.

The 2025 Sustainability Report is thus still being prepared similar to the previous year

• on the basis of Sections 289b-e and 315b-e of German Commercial Code (HGB) and German Accounting Standard (DRS) 20,
• drawing upon the criteria under German Sustainability Code (DNK, Checklist 2023), including selected performance standards under the Global Reporting Initiative (GRI), and
• at designated locations oriented around CSRD and European Sustainability Reporting Standards (ESRS), as these comprise a modern framework for transparency with regard to environmental, social and governance aspects of corporate responsibility.

Due to regulatory uncertainties, sustainability reporting remains a challenging task. This Sustainability Report was prepared on the basis of processes implemented last year and in close cooperation between Sustainability Management, the Accounting and Controlling departments and local management boards and department heads at the corporate subsidiaries. The Report documents DATA MODUL's efforts to continuously embed sustainability in decision-making, processes and projects, meet stakeholder expectations and create value for employees and society.

General information

DATA MODUL develops, manufactures and distributes a wide range of display solutions ranging from custom solutions to premium distribution products. Customers turn to us for high-quality displays, intelligent software and professional service. Our solutions are utilized in many different markets including industrial automation, medicine & healthcare, mobility, smart building & white goods, smart retail & signage and entertainment.

In issuing these non-financial disclosures (hereinafter

The DATA MODUL headquarters is in Munich. The Group and its 508 employees are active at more than 20 locations worldwide, comprising roughly 52,000 sqm of production, logistics and administration facilities. DATA MODUL—an enterprise with over 50 years of experience that invested roughly 11 million euros in research and development in fiscal year 2025—is synonymous with stability and innovation.

The integrated Sustainability Strategy was defined in fiscal year 2024 on the basis of the United Nations' 17 Sustainable Development Goals, among other factors. Building upon this, the extended management team has developed the sustainability concept, which elaborates a three-pillared understanding of sustainability at DATA MODUL and outlines strategic action areas. These areas underwent further specification in fiscal year 2025.

Values [GRI SRS-102-16]

The five corporate values of the DATA MODUL Group form the foundation for global corporate strategy and enterprisewide cooperation.

The double materiality principle

In fiscal year 2024 DATA MODUL conducted its first materiality assessment, in accordance with the ESRS principle of double materiality:

• The inside-out perspective (impact materiality), which concerns the materiality of impacts, looks at the potential and actual positive and negative impacts of business activities on people and the environment.
• The outside-in perspective (financial materiality), on the other hand, concerns materiality from a financial standpoint, i.e. risks and opportunities which do or could financially impact the enterprise.

The purpose was to systematically identify, assess and prioritize key sustainability-relevant impacts, risks and opportunities (IROs).

DATA MODUL conducted its double materiality assessment in three steps, as follows:

1. Create a list of topics of potential material importance

The company first compiled a list of potentially important topics, utilizing various scientifically sound tools and sources. The identified topics were then classified as ESRS topics, sub-topics and sub-sub-topics.

2. Identify and assess impacts, risks and opportunities

This list then served as the basis for three topical workshops held with the heads of the respective areas. The workshop participants identified specific IROs, defined materiality thresholds and assessed whether the IROs identified are material or non-material applying ESRS guidelines.

3. Incorporate the perspective of stakeholders

Internal representatives who have many years of experience and extensive knowledge were selected to facilitate incorporating the perspectives of suppliers, customers and other key external stakeholders.

Materiality assessment update

During the period under review there were no significant changes to the business model, product portfolio, value chain or organizational structure of the Company. Thus in 2025 the material topics were only reviewed as to their present relevance on the basis of the methodology and results from the previous year. The review focused in particular on new or changed impacts, emerging risks and opportunities, and whether existing IROs had become more or less materially relevant. No external circumstances were identified which necessitated a fundamental reassessment of the key topics. The key topics identified in 2024 will thus continue to form the basis for strategic management of our sustainability activities.

Sustainability concept

6.1 Strategy

Sustainability as integral part of business strategy

DATA MODUL believes that sustainability is a key issue for future business viability. DATA MODUL addresses the three dimensions of ESG—environmental, social and governance—holistically, both in and outside the framework of our The Sustainability Report for fiscal year 2025 covers the entire DATA MODUL Group: parent company DATA MODUL AG and all controlled subsidiaries. For more information on the Company business model and locations see section 1.1 of the Group Management Report, "Business Model". For more information on the scope of consolidation see section 3 of the Consolidated Financial Statements, "Consolidation".

global "Display the Future 2028" program, deriving guidelines for responsible, future-oriented action. The goal is to systematically ensure alignment between business objectives and the demands of ecological responsibility. All departments thus work together to continuously develop ideas and concepts to move us forward in our global transformation process.

6.2 Material topics

Sustainability in the business environment

DATA MODUL is a player in the electronics and display industry, which involves global value chains and innovative technologies. The industry is driving digitalization forward while taking ecological responsibility by focusing on resource conservation, energy efficiency and reducing climate-affecting emissions as a path towards realizing more resilient business models.

Businesses in the industry are burdened by heightening regulatory requirements, but the requirements do promote transparency and the rethinking of existing processes. Ongoing geopolitical conflicts and trade tariffs continue to disrupt supply chains, making exporting more difficult. For more information on the Company's economic environment see section 2.2 of the Group Management Report.

Success

As a strong and focused partner, we strive for sustainable growth together with our customers.

Professionalism

We work in a reliable, structured and disciplined way to fulfil highest requirements in all areas.

Innovation

With curiosity, courage and competence, we take on tomorrow's technology trends already today.

Passion

Excitement for challenges and personal engagement inspire us every single day to fully commit to our tasks and our customers.

Team spirit

As a global company, we assume joint responsibility and support each other in achieving our goals.

Our three-pillared understanding of sustainability

Resource and energy efficiency

We take responsibility for our environment through innovative technologies for resource conservation and recycling. We promote product circularity with a focus on our customers' requirements.

• Scrapping and waste
• More sustainable packaging and transport alternatives
• Recycled materials and recyclability

Supply chain resilience

Long-term partnerships based on

trust are the foundation on which we continuously develop the supply chain together with our customers and suppliers.

• Production-oriented procurement

• Transparent product data

• • ESG criteria in supplier selection and evaluation processes

Respect, appreciation and integrity are firmly anchored in our corporate culture. We stand for equal opportunity and are committed to our employees and society.

• Employee retention • Training and continuing

education

• International cooperation

ESG topic	Topic CSR Implementation Act (CSR-RUG)	ESRS topic	ESRS sub-topic	IRO	Description
	Environmental matters	Climate change (ESRS E1)	Climate protection	Negative impact	CO2 emissions from air transport in the supply chain
				Positive impact	Focus on local production and supply chain partners near production sites
				Risk	More stringent environmental protection regulations impact production processes
			Energy	Negative impact	Gas heating at production sites
Environ ment		Circular economy (ESRS E5)	Resource inflows	Positive impact	Increased use of recycled materials
			Resource outflows	Negative impact	Recycling not possible due to non-reworkable design
				Positive impact	Reuse of components
			Waste	Negative impact	Electronic waste resulting from production-related wastage factors
				Positive impact	Increased use of returnable packaging, reduced use of packaging material
	Employee related matters	Own workforce (ESRS S1)	Work hours	Positive impact	Flextime to reduce overtime
			Adequate pay	Positive impact	Special incentive payments and performance bonuses
			Work-life-balance	Negative impact	Restrictive home office policies
				Positive impact	Flexible work hours models
Social			Training and skills development	Positive impact	Performance review and training concept
	Social matters	Consumers and End-users (ESRS S4) Data protection		Positive impact	Heightened IT security through extensive staff training
				Risk	Increased attacks
			Freedom of expression	Positive impact	Intensive dialogue with customers to strengthen customer relationships
			Access to high-quality information	Negative impact	IP protections – know-how leaving the Company
Gover nance		Business conduct (ESRS G1)	Management of relation ships with suppliers	Risk	Trade conflicts affecting key display components

In 2024 the management team outlined strategic action areas and the sustainability concept, consisting of the three pillars of resource and energy efficiency, social responsibility and supply chain resilience. In the 2025 reporting year efforts focused generally on phased integration of the sustainability concept and the specification of qualitative medium and long-term goals:

Resource and energy efficiency

• Reducing scrapping and waste
• Developing more sustainable packaging alternatives
• Increasing the proportion of recycled materials used

Social Responsibility

• Raising employee retention
• Expansion of the training program
• Improving global cooperation

Supply chain resilience

• Expanding production-related procurement
• Greater product data transparency
• Increased implementation of sustainability considerations in supplier selection and evaluation

Outlook

In fiscal year 2026 DATA MODUL will continue concentrating on materials usage, further development of more sustainable packaging solutions and systematically engaging in dialogue with customers and suppliers along the supply chain. The existing control structures will remain in place, with Sustainability Management responsible for overarching coordination and monitoring progress towards the sustainability goals. Operational project responsibility lies with the respective department heads. These teams work closely together with Sustainability Management, regularly reviewing implementation status and initiating adjustments as needed.

6.4 Value chain

DATA MODUL is part of a complex international value chain comprising raw materials extraction, production, distribution, use and disposal or recycling. The extraction of raw materials, such as rare-earths, is the starting point of the upstream value chain. Next comes the production of materials and components for displays, touch sensors and embedded components from direct and indirect suppliers. DATA MODUL's own business operations involve procurement, pure distribution or development and production of complete custom systems at our international production facilities, plus delivery. In the downstream value chain, corporate customers use our products through the end of their useful lives, when they are then disposed of or partially recycled.

6.3 Goals

Goal for 2025: Phased integration of the sustainability concept into day-to-day business operations

DATA MODUL had adopted the following sustainability management goals for fiscal year 2025:

• Increasing the focus on resource conservation in materials and packaging projects
• Further developing structures, reporting processes and climate balance data quality; more detailed specification of ESG indicators.
• Expanding dialogue with customers and suppliers in the supply chain

Further definition of sustainability goals

As the basis for defining relevant goals, the United Nations Global Sustainable Development Goals (SDGs) were studied for reference in 2023. The following SDGs are relevant for DATA MODUL, and continue to serve as orientation framework.

Sustainability considerations in the value chain

DATA MODUL is aware that sustainability considerations play an important role in every stage of the value chain. For example, raw materials extraction can be a source of harm to the environment and can be linked to human rights violations in global supply chains. Compliance on the part of our suppliers with globally recognized standards is thus particularly important to us. This importance is reflected in a regime that includes a code of conduct, supplier audits and annual evaluations. Materials usage and technological innovation are special focuses in DATA MODUL operations. The primary risk factors for DATA MODUL stem from ongoing trade conflicts and the China-Taiwan conflict. Nearly almost all flat display manufacturers are located in East Asia, thus logistical risks concerning the transport of goods to Europe from that region are increasingly on our radar screen.

Electronic waste is becoming an increasingly important issue generally, as the worldwide volume of discarded electronic

devices has increased 82.4% since 2010, reaching over 62 million tons in 2022 according to the 2024 Global E-Waste Monitor; this includes nearly 6 million tons of screens and monitors. This figure is forecast to increase by another 32.3% to over 82 million tons by the year 2030. Less than a quarter of this volume was properly collected and recycled in 2022, thus strategically valuable resources worth billions of dollars were wasted or landfilled. The report furthermore establishes that electronic waste recycling covers only 1% of demand for rare earths. Demand for electronic devices is steadily rising, so developing efficient solutions is crucial to meet demand while properly managing the electronic waste crisis.

In dialogue with our partners

The intense dialogue initiated in 2024 with stakeholders in the upstream and downstream value chain was continued in fiscal year 2025. Reducing packaging materials, efficient use of materials and resources, and logistics processes continue to pose key challenges. Improvement measures concern particularly the pooling of purchasing volumes, expanding relationships with local suppliers and promoting more environmentally friendly transport routes, using ocean shipping instead of air freight. Working together with customers and suppliers as partners creates a basis for developing and implementing future-focused solutions along the entire value chain.

6.5 Responsibility, rules, and processes Responsibility

DATA MODUL has clearly defined responsibilities around sustainability issues. Sustainability Management was formed in 2024 as a central unit that reports directly to the CEO, reflecting its close relevance to the strategic management level. The Executive Board is responsible for the integration of ESG issues into the corporate strategy. The Executive Board and Sustainability Management have jointly further developed the integrated sustainability strategy, which is executed in coordination with Sustainability Management. The Executive Board and Sustainability Management coordinate monthly on operational and strategic issues. The respective department heads hold responsibility for specific ESG projects.

Rules and processes

Execution of the sustainability strategy is to take place in accordance with clearly defined standards, rules and processes. A management system integrating key standards like ISO 9001 for quality and ISO 14001 for environmental protection provides a framework for such structured execution. Core Company principles, such as codes of conduct for employees and suppliers and company, quality and environmental policies specify the sustainability requirements DATA MODUL has adopted for itself and its business partners.

Remuneration policy [GRI SRS-102-35]

For more information on the Company compensation policy see section 8, of the Remuneration Report, "Supplementary Disclosures", in the Notes to the Consolidated Financial Statements, or the Remuneration Report published online on the Company website.

Annual total compensation ratio [GRI SRS-102-38] Data for this metric are published in the online Remuneration Report.

6.7 Stakeholder-oriented innovation and product management

Stakeholders

DATA MODUL identified the Group's key stakeholders in a stakeholder mapping process. The primary stakeholder groups are:

Interests and expectations	Communication channels
Employees
• Job security • Pay in line with market • Good working conditions • Positive image and reputation • Skills development and career opportunities	• Information meetings • E-mail • Intranet • On-site signage • Annual performance evaluation discussions, feedback meetings • Training seminars, e-Learning courses • Works Council representation
Customers
• High product and service quality • Delivery deadline adherence • Compliance with laws, policies and standards • Provision of required documentation	• E-mail • Phone • Website • Company publications • Trade fairs • Audits • Customer satisfaction surveys
Suppliers
• Stable, long-term business relationships • Compliance • Liquidity	• E-mail • Phone • Website • Company publications • Trade fairs • Audits • Supplier evaluations
Investors
• Preserving invested capital and generating investment returns • Profit expectations • Compliance with international exchange trading and capital markets legislation	• Direct communications • Annual shareholder meetings • Website • Financial reports

Communication with stakeholders is essential in order to understand their interests, needs and expectations and take these into account accordingly in the sustainability strategy. Long-standing partnerships based on transparency and trust are a source of valuable input, as is internal communication with employees. Such internal communication takes place in particular at regular information events, feedback sessions and post-project lessons-learned sessions. The work to increase awareness of sustainability issues begun in 2024 continued in 2025. This involved for example installing ceiling hangers on resource and energy efficiency at the production sites. A group-wide employee suggestion scheme is in place to encourage staff members to get involved in sustainability management. The sustainability statement, published for the first time in fiscal year 2024, informs stakeholders about sustainability management at DATA MODUL.

Engaging in dialogue with customers is a core activity for DATA MODUL. Questions about ESG issues were included in the annual customer survey for the second time in 2025. As in the previous year, compliance and risk management, energy efficiency and product lifespan and more sustainable packaging and logistics solutions remain customers' primary concerns. Recycling and reuse are also becoming increasingly important. These results continue to be incorporated into global sustainability management at DATA MODUL, and are more specifically elaborated in dialogue with customers. [GRI SRS-102-44]

Active dialogue with suppliers is additionally important to enable integrating existing approaches into the Company's own portfolio. In 2026 DATA MODUL will be stepping up these efforts to achieve resilience gains in globally interconnected supply chains.

Innovation and product management

Global innovation process

Innovation is firmly anchored as one of our five corporate values. We generally define innovation as products, technologies and services which afford significant benefits or progress for DATA MODUL. Innovations also generate revenue, open up new markets or solve existing challenges, including sustainability issues like resource and energy efficiency.

DATA MODUL has established a structured innovation process to accelerate and streamline the "go-to-market process" from initial idea to market-ready product. This process creates opportunities for employees to submit their ideas via intranet to a central desk. A mixed committee of personnel from Product Management, R&D and Sales evaluates these proposals from both a technical and a commercial standpoint, considering questions around market potential, volume

Specific ESG projects are conducted by the respective department heads, who decide regarding measures, timelines and resources and monitor adherence accordingly, in close cooperation with Sustainability Management. Integrating sustainability into existing corporate structures is a special priority. Select projects are presented at Executive Management meetings, where progress, results and effectiveness are jointly discussed and steered.

Sustainability risks and opportunities are regularly identified and assessed as part of our risk management. The results were directly communicated to the Executive Board to ensure that they flow into proactive, strategic management. For more information on control systems see section 1.2 of the Group Management Report, "Control Systems". More information on risk management can be found in section 3, "Risks and Rewards, Forecast".

6.6 Performance indicators and incentive schemes Control

DATA MODUL utilizes the following performance metrics for sustainability management purposes:

• General: customer satisfaction (primarily product and service quality)
• Environment: energy consumption, scrapping and waste and greenhouse gas (GHG) emissions
• Social: number of apprentices, staff turnover and sick leave rates

Where possible, DATA MODUL collects data directly and on a location-specific basis, in accordance with uniform standards. Where direct data collection is not possible—on emissions along the value chain, for example—the relevant data is requested from the responsible third parties. Where data cannot be obtained with reasonable effort, we utilize on publicly available average and estimate data.

The data collection and management responsibilities and processes defined in 2024 were further developed in the fiscal year ended. The central Sustainability Management unit works closely together with the Controlling, Accounting, Quality Management and Human Resources departments and our locations around the world. In addition to improving data quality, uniform assessment bases and methodologies for analyzing relevant control variables over the long term are a particular priority.

Incentive schemes

At this time, measurable sustainability goals are not integrated into the executive compensation scheme or executive performance evaluations at DATA MODUL nor are there any plans to do so over the medium term.

and potential quantities, among other factors. All ideas submitted are centrally documented and tracked. This creates a transparent basis for decision-making so that resources are focused on promising projects. Approved projects are then jointly implemented by project management, Product Management and R&D with subsequent incorporation into the product portfolio. For more information see section 1.3 of the Group Management Report, "Research and Development." The production sites in Weikersheim and Lublin have their own local programs in addition for continuously improve existing products and processes.

Sustainability and Innovation in the product portfolio

DATA MODUL products can have negative impacts for people and the environment, by resulting in electronic waste, for example. The production sites regularly conduct reviews of materials and products with the aim of reducing environmental impact. Innovation thus plays a key role here as well. DATA MODUL is researching alternative adhesives for bonding that are more suitable for a circular economy. The Company is also studying ways to heighten energy efficiency without affecting product performance characteristics, such as display brightness. The product portfolio includes energyefficient display technologies such as e-paper, which require power solely when changing image content. We develop intelligent, future-proof products with which we expand our hardware portfolio, and move into important software market segments including cloud services, artificial intelligence, machine learning and cybersecurity. Our products add value in medicine & healthcare and other socially and ecologically relevant sectors, like electromobility.

The pilot project "Circular economy for electrical and electronic equipment" launched in fiscal year 2024 was successfully completed in 2025. In this joint effort with the city of Munich, the focus was on conducting a comprehensive analysis of the stakeholder ecosystem around industrial open-frame monitors, including the relevant legal and organizational frameworks. A compact, interdisciplinary team studied how existing linear processes can be further developed into more sustainable product cycles. To this end, old devices were retrieved from the customer and disassembled; operating time was read out, and various optical and electronic tests were carried out on select components. The results showed that the components selected are reusable without issue after proper testing and prepping. This opens up resource conservation possibilities, as recycled components could reduce demand for new parts, thus reducing waste for both customer and manufacturer. Close collaboration between the customer and colleagues from the R&D, Operations and Sales departments was essential, as their expertise enabled performing a comprehensive analysis. The pilot project yielded valuable insights on potential scalability in take-back processes. A network of reliable and experienced partners from Logistics, Dismantling and Cleaning provides additional support with the general challenges around implementing a new business concept. In 2026 DATA MODUL will be looking for customers to test out this concept on a larger scale with a product yet to be defined.

Outlook

In fiscal year 2026 DATA MODUL will be attending the Embedded World trade fair to address the current state of development, challenges and potential opportunities around "Eco-friendly Displays" in a dialogue-stimulating technical presentation. In preparation, select display suppliers were surveyed regarding their status quo for such technologies to get an overview of the latest market developments.

As a system provider and distributor, DATA MODUL has limited influence regarding fundamental product and technology decision-making, especially in the displays market. Global, predominantly Asian manufacturers are largely behind more sustainable innovations in the market, which are influenced accordingly by demand—especially in the high-volume consumer market. The comparatively lower production volumes for industrial applications limit the ability to have a direct influence on technological decision-making by display manufacturers. This underscores however the importance of sound market observation and providing competent customer advice. In this context, DATA MODUL sees itself as an active market and industry partner that systematically monitors technological and regulatory developments and regularly discusses these with manufacturers. The Company's systems business is a key focus of the sustainability strategy, which includes open-frame monitors, touch monitors and HMIs. These system solutions afford substantial design options and influencing possibilities throughout the entire product life cycle. Building on the circular economy pilot project completed in 2025, durability-focused design approaches will be further developed, flanked by increased involvement of local suppliers and more resource-efficient logistics processes.

Sustainability information (ESG) 6.8 Environment Management concept

In 2024 Company management formed a central sustainability management unit for the entire DATA MODUL Group. The unit reports directly to the CEO, and is responsible for working together with the respective specialist departments to ensure the attainment of ecological goals, activities and metrics.

The primary environmental topics of relevance to DATA MODUL are in the area of Climate Change (ESRS E1) and Resource Use and Circular Economy (ESRS E5). Focusing on resource and energy efficiency, the following are the defined qualitative goals:

• Reducing scrapping and waste
• Developing more sustainable packaging alternatives
• Increasing the proportion of recycled materials used

DATA MODUL has had an environmental management system per DIN EN ISO 14001 in place since 2015, which organizationally is part of Quality Management. This system helps us comply with environmental regulations, such as RoHS, REACH and requirements for handling conflict minerals, and minimizes negative impacts while promoting resource conservation and energy efficiency. The management system also integrates systematic monitoring and continuous improvement in the area of environmental performance. Ecological projects, including project results and effectiveness, are regularly discussed with Sustainability Management and department heads in Executive Management meetings.

The three main projects for 2025 were: Circular Economy, Packaging and Carbon Footprint. The latter project revealed that purchased goods and services (Scope 3.1) account for over 75% of the main emission drivers. Thus in both resource conservation and climate protection, our efforts concentrate on materials and circular economy.

Risks

Environmental risks were identified and evaluated as part of regular risk management and the materiality assessment. Overall, the level of general environmental risk to which DATA MODUL is exposed is classified as low. The sole finding in the materiality assessment concerned risk around products, pricing and processes being impacted by more stringent environmental protection requirements than is the case today.

6.8.1 Resource consumption

DATA MODUL will publish Scope 1 and 2 data in accordance with the GHG standard for the second time in 2025 (see section 6.8.3, Climate-relevant emissions). The carbon footprint analysis indicates what natural resources are used in or impacted by our business activities.

• Land: around 52,000 square meters of surface-sealed land
are used for the headquarters, production and logistics
sites and sales offices worldwide
• Water
• Fossil fuels

• Wood for paper and cardboard
• Waste
• Emissions

The following are the primary product components:

• Glass
• Plastics (PET, PC)
• Indium tin oxide (ITO)
• Chemical elements and chemicals (adhesives)
• Metals (including rare earths) and semi-metals
• Liquid crystals
• Organic semiconductor materials (OLED)

In the interest of greater transparency, the energy monitoring measures implemented in 2024 are being expanded, particularly at the production sites, which are major energy consumers.

6.8.2 Resource management Measures and activities

The legally required energy audits per DIN 16247-1 for the Weikersheim production site are regularly conducted and recommendations for optimization are implemented accordingly. Further measures were implemented in fiscal year 2025 that build upon the transformation concept of 2024, which outlined the goals of heightening energy efficiency and reducing climate-damaging emissions. To this end, energy monitoring was expanded, zone control valves were installed on ceiling fan heaters and the heating control system in a production hall was refurbished.

At the Lublin production site, electrical and lighting systems in production and storage halls were analyzed in order to optimize power consumption. New zones were then introduced as an optimization measure, which can now be controlled separately. In addition, a plant-wide leak test of the compressed air system was conducted, which led to the elimination of compressed air losses, reducing the amount of power consumed by the compressors. A system for controlling cleanroom ventilation and an automated dispensing system for liquid substances were additionally implemented. The latter system affords reduced packaging use while reducing risk of mixing up substances, thanks to separate reusable bottles.

In parallel to measures implemented at the plant, employees in Lublin are strongly encouraged to make use of public transportation. Bus departure times from the industrial park were adjusted in coordination with the public transportation company to meet employees' needs. Employees who do not use public transportation organize carpools to commute to work together.

In addition to expanded energy monitoring, large-scale ceiling hangers were installed at both production sites to raise awareness among employees about the need for greater resource and energy efficiency. Extensive process improvements and training of bonding employees remain a particular focus in order to further reduce production-related scrapping. The production sites in Germany and Poland both have a reprocessing workstation for reworking.

The pilot project launched in 2024 in partnership with the city of Munich was completed. Technical and commercial studies were conducted as part of the project of two takeback scenarios for open-frame monitors, tested out with the involvement of a DATA MODUL customer. The result: a logistically optimized, decentralized method that feeds mainly electronics components into a cycle. For further information, see section 6.7, 'Stakeholder-oriented innovation and product management'.

Concerning packaging, guidelines on reusable shuttle packaging were jointly outlined in 2025 with the Product Management, Warehouse and R&D departments and initial approaches were discussed with the packaging service provider. The aim is to reduce waste by using alternative packaging materials and methods, recycling packaging where possible. DATA MODUL already uses reusable shuttle packaging with select customers and suppliers, and plans are in place to gradually expand this practice. A holistic approach that takes various product specifications and transport frequency and distance into account is key.

Regarding purchasing, the Code of Conduct for suppliers was expanded to include relevant passages on waste reduction, energy consumption and GHG emissions, and sustainability criteria were added to the supplier evaluation. These revisions will take effect for the first time in fiscal year 2026.

A purchasing project for a thesis standardizing the screw catalog was launched in 2025. The major streamlining should lower Purchasing and Logistics process costs associated with having many different variants and suppliers in the catalog. This means fewer single purchases, less required warehouse space and easier assembly thanks to standardized Torx drives. Possibilities are also being looked at of sourcing the new standard via a KANBAN system to reduce both administrative effort and packaging material usage.

Energy consumption [GRI SRS-302-1]

Due to the partial lack of consumption data for 2025 as of publication of the Sustainability Report, the energy consumption of the DATA MODUL Group was again determined based on available data and supplemented by average values from the previous years. The slight difference compared to the previous year is due to a minor decline in the number of units produced.

Energy type in MWh	2025	2024
Electricity	4,644.6	4,879.4
Fossil fuels	3,557.3	3,763.6
District heating	355.1	254.7
Total	8,557.0	8,897.7

Reduction of energy consumption [GRI SRS-302-4]

The amount of energy saved has not been quantified. The rollout of energy management software planned for 2025 to ensure greater transparency at production sites, which are the Company's main energy consumers, has been postponed as part of a general capital expenditure freeze. Plans are to install the necessary hardware in 2026/2027. Energy monitoring at the production sites has been further expanded, and a monthly review is conducted to afford greater transparency on current and future energy costs.

Water withdrawal [GRI SRS-303-3]

Due to the partial lack of consumption data for 2025 as of publication of the Sustainability Report, water consumption for the four main locations in Munich, Weikersheim, Lublin, and Shanghai was again determined on the basis of available data and supplemented by average values from the previous years.

Water consumption in megaliters	2025	2024
Total	5.2	5.5

Waste generated [GRI SRS-306-3]

The Company's four main locations — Munich, Weikersheim, Lublin and Shanghai — generated a total of around 570.7 tons of waste in fiscal year 2025 (previous year: 536.2 tons). Disposal of waste accumulating at the production sites in Weikersheim and Lublin is conducted with structured documentation by waste code number. Close monitoring of scrapping performance metrics is conducted at both production sites as a key control indicator. The increase is mainly due to an extraordinary scrapping campaign in 2025 and increased transport waste from Asia.

Waste type, in tons	2025	2024
Paper	196.1	196.2
Plastics and synthetics	127.4	113.9
Wood	117.3	73.8
Electronic waste	62.4	71.7
Glass	32.6	42.1
Mixed metals	17.1	25.0
Paint and varnish waste	12.5	8.4
Other waste	5.3	5.1
Total	570.7	536.2

Outlook

In 2026 we will continue focusing on production, materials and packaging. This includes inspecting the compressed air system at the Weikersheim site, analyzing existing products and better integrating sustainability considerations into the product development process, such as by studying the use of secondary raw materials. Further suppliers are to be converted over to reusable shuttle packaging, accompanied by increased customer dialogue. Additionally, we will continue conducting regular training workshops to further reduce production-related scrapping and steadily improve process quality.

6.8.3 Climate-relevant emissions Carbon footprint

DATA MODUL has prepared its second corporate carbon footprint in accordance with the internationally recognized Greenhouse Gas Protocol, for fiscal year 2025. The corporate carbon footprint is a report structured as

• Scope 1 emissions from sources owned or controlled by the company
• Scope 2 indirect emissions from purchased energy
• Scope 3 all other emissions across the value chain, upstream and downstream

Last year the main concerns were raising awareness among the staff members involved and implementing reporting processes, whereas in 2025 data quality improvements were more of a priority.

The table below provides an overview of generated emissions. [GRI SRS-305-1], [GRI SRS-305-2]

Emissions in tCO2e	2025	2024
Scope 1	806.4	1,040.5
Scope 2	2,283.7	2,585.0
Total	3,090.1	3,625.5

The decrease in emissions compared to the previous year is mainly due to an extraordinary replenishment of coolants in 2024 and a slight decrease in the number of units produced in 2025.

Other indirect (Scope 3) GHG emissions [GRI SRS-305-3]

As in the previous year, a comprehensive analysis of the Scope 3 categories relevant for DATA MODUL was done and the corresponding GHG emissions were calculated. The data were not yet fully available at the time of publication of the Sustainability Report. Data collection challenges arose in connection with purchased goods and services in particular, as a major driver of emissions, so the calculation for this category rests heavily upon assumptions and estimates.

For fiscal year 2025 DATA MODUL applied the transitional and relief arrangements in accordance with the Delegated Regulation (or "Quick Fix") released by the EU Commission on July 11, 2025 amending the first sentence of the ESRS (Delegated Regulation (EU) 2023/2772). Accordingly, no information on Scope 3 emissions is provided this year.

Reduction of GHG emissions [GRI SRS-305-5]

There is no transparency in terms of a direct, quantifiable link between individual measures and specific emissions reductions. Nonetheless, various initiatives have been implemented which contribute indirectly to reducing energy consumption and waste. These include in particular various technical projects at the production sites in Weikersheim and Lublin, targeted staff training and installation of ceiling hangers raising awareness on resource and energy efficiency (see section 6.8.2, 'Resource management').

Climate strategy approach and outlook

The Scope 3 emissions analysis revealed that category 3.1, 'Purchased goods and services', is a particularly significant climate protection lever. It was thus decided to postpone developing a comprehensive, overarching climate strategy and implement specific projects instead. Thus the focus is on operational approaches along the value chain, particularly materials-related optimizations, in order to measurably reduce emissions over the short to medium-term. For further information on the Circular Economy model project, see section 6.7, 'Stakeholder-oriented innovation and product management'. In close coordination with the department heads and Controlling, in 2026 DATA MODUL will be concentrating more on further elaborating key performance indicators. In addition to emissions data from the carbon footprint, energy costs and production-related scrapping will be high priorities.

6.8.4 Information on the EU taxonomy Objectives and disclosure obligations

The Taxonomy Regulation (EU) 2020/852 (hereinafter 'Taxonomy') has been in force since June 18, 2020. The Taxonomy is the EU's primary instrument for promoting sustainable investments and implementing the Green Deal, providing a uniform classification system for defining what economic activities can be considered environmentally sustainable. The purpose of the Taxonomy is to create a common language for businesses, investors and political decision-makers with which they can direct financing into sustainable projects and enterprises.

The following environmental objectives are set out under Article 9 of the EU Taxonomy Regulation:

• 1. Climate change mitigation
• 1. Climate change adaptation
• 1. Sustainable use and protection of water and marine resources
• 1. Transition to a circular economy
• 1. Pollution prevention and control
• 1. Protection and restoration of biodiversity and ecosystems

An economic activity is taxonomy-eligible if it is included in the list of EU taxonomy-eligible activities (Delegated Regulation (EU) 2021/2139, Delegated Regulation (EU) 2023/2486 and the related amendments) which contribute significantly toward one or more of the six environment objectives. Taxonomy-eligibility does not mean that a specific activity in question is ecologically sustainable – only that it could qualify as sustainable.

An economic activity is taxonomy-aligned if it

• contributes substantially (SC = "substantial contribution") to at least one ore more of the defined environmental objectives
• without causing significant harm to other environmental objectives (DNSH = "do no significant harm"), and
• conforms with minimum social standards ("MS = Minimum Safeguards").

An activity is taxonomy-aligned when it is ecologically sustainable according to the framework of the EU Taxonomy Regulation.

Pursuant to Article 8 of the Taxonomy, undertakings falling within the scope of the Non-Financial Reporting Directive (NFRD) are required to report their "ecologically sustainable" sales revenue, capital expenditure (CapEx) and operating expenditure (OpEx). As a non-financial undertaking that falls within the scope of NFRD requirements for the second time in fiscal year 2025, DATA MODUL is reporting taxonomy information in its non-financial report. The analysis was conducted in close coordination between Controlling and Accounting; the amounts referenced to calculate the figures for revenue, CapEx and OpEx are based on figures reported in the Consolidated Financial Statements.

All business activities Group-wide were reviewed for the analysis; activities referenceable to the activities described in the EU taxonomy were identified as a first step. The activity CE 1.2 "Manufacture of electrical and electronic equipment" was identified as taxonomy-eligible for DATA MODUL, as a distributor and manufacturer of displays and systems, in accordance with Delegated Regulation 2023/2486, Annex 2. This activity corresponds to the environmental objective of "circular economy". Further review of cross-cutting activities not directly related to our primary economic activities and are non-revenue-generating yet relevant to DATA MODUL sustainability activities indicated correspondence with activity CCM 6.5 'Transport by motorbikes, passenger cars and light commercial vehicles' and activity CCM 7.7 'Acquisition and ownership of buildings'.

Data is collected in accordance with IFRS for this report, taken directly from the balance sheet and profit and loss account.

DATA MODUL has no revenue, capital expenditure or operating expenditure on activities listed in Template 1 of Annex XII 2022/1214.

Line Nuclear energy related activities

• 1. production, as well as their safety upgrades, using best-available technologies.
• 1. nuclear energy, as well as their safety upgrades.

1.	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innova tive electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	No
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best-available technologies.	No
3.	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electric ity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	No
	Fossil gas related activities
4.	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	No
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	No
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	No

Fossil gas related activities

• 1. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
• 1. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation

Proportion of taxon- omy-compliant (A,1) or taxonomy-ready (A,2) revenue in 2024	Category (enabling activities)	Category (transition- al activities)

Revenue					Criteria for significant contribution							DNSH criteria (Do no significant harm)
Economic activities (1)	Code (2)	Revenue (3)	Share of revenue (4)	Climate protection (5)	Adaptation to climate change (6)	Water & marine resources (7)	Avoidance of environmen- tal pollution (8)	Circular economy (9)	Biological diversity (10)		Climate protection (11)	Adaptation to climate change (12)	Water & marine resources (13)	Avoidance of environmen- tal pollution (14)	Circular economy (15)	Biological diversity (16)	Minimum protection (17)	Proportion of taxon- omy-compliant (A,1) or taxonomy-ready (A,2) revenue in 2024 (18)	Category (enabling activities) (19)	(20)
		KEUR	%	%	%	%	%	%	%		Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. Taxonomy-aligned activities			0 %															0%
A.1. Sustainable activities (taxonomy-aligned)
Revenue from sustainable activities (taxonomy-aligned) (A.1)		0	0 %	0 %	0 %	0 %	0 %	0 %	0 %		-	-	-	-	-		- -	0%
A.2 Taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities)
Manufacture of electrical and electronic equipment	CE 1.2	86,277	40.5%	N/EL	N/EL	N/EL	N/EL	EL	N/EL									39.4%
Revenue from taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities) (A.2)		86,277	40.5%	0	0	0	0	100%	0									39.4%
Total (A.1+A.2)		86,277	40.5%	0	0	0	0	100%	0									39.4%
B. Non-taxonomy-eligible activities
Revenue from non-taxonomy-eligible activities		126,601	59.5%
Total (A+B)		212,878	100 %

OpEx							Criteria for significant contribution			DNSH criteria (Do no significant harm)
Economic activities (1)	Code (2)	OpEx (3)	Share of OpEx (4)	Climate protection (5)	Adaptation to climate change (6)	Water & marine resources (7)	Avoidance of environmen- tal pollution (8)	Circular economy (9)	Biological diversity (10)		Climate protection (11)	Adaptation to climate change (12)	Water & marine resources (13)	Avoidance of environmen- tal pollution (14)	Circular economy (15)	Biological diversity (16)	Minimum protection (17)	Proportion of taxon- omy-compliant (A,1) or taxonomy-ready (A,2) OpEx 2024 (18)	Category (enabling activities) (19)	Category (transition- al activities) (20)
		KEUR	%	%	%	%	%	%	%		Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. Taxonomy-aligned activities			0 %															0%
A.1. Sustainable activities (taxonomy-aligned)
OpEx for sustainable activities (taxonomy-aligned) (A.1)		0	0 %	0 %	0 %	0 %	0 %	0 %	0 %		-	-	-	-	-		- -	0%
A.2 Taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities)
Manufacture of electrical and electronic equipment	CE 1.2	11,853	99.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL									99.1%
OpEx for taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities) (A.2)		11,853	99.3%	0	0	0	0	100%	0									99.1%
Total (A.1+A.2)		11,853	99.3%	0	0	0	0	100%	0									99.1%
B. Non-taxonomy-eligible activities
OpEx for non-taxonomy-eligible activities		87	0.7%
Total (A+B)		11,670	100%

CapEx					Criteria for significant contribution							DNSH criteria (Do no significant harm)
Economic activities	Code	CapEx	Share of CapEx	Climate protection	Adaptation to climate change	Water & marine resources	Avoidance of environmen- tal pollution	Circular economy	Biological diversity		Climate protection	Adaptation to climate change	Water & marine resources	Avoidance of environmen- tal pollution	Circular economy	Biological diversity	Minimum protection	Proportion of taxon- omy-compliant (A,1) or taxonomy-ready (A,2) CapEx 2024	Category (enabling activities)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)		(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)	(20)
		KEUR	%	%	%	%	%	%	%		Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. Taxonomy-aligned activities			0 %															0%
A.1. Sustainable activities (taxonomy-aligned)
CapEx for sustainable activities (taxonomy-aligned) (A.1)		0	0 %	0 %	0 %	0 %	0 %	0 %	0 %		-	-	-	-	-		- -	0%
A.2 Taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities)
Manufacture of electrical and electronic equipment	CE 1.2	1,985	41.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL									41.8%
Transport by motorbikes, passenger cars and light commercial vehicles	CCM 6.5 500		10.4%	EL	N/EL	N/EL	N/EL	N/EL	N/EL									13.3%
Acquisition and ownership of buildings	CCM 7.7 401		8.3%	EL	N/EL	N/EL	N/EL	N/EL	N/EL									11.4%
CapEx for taxonomy-eligible activities that are not sustainable (non-taxonomy-aligned activities) (A.2)		2,886	60.0%	31.2%	0	0	0	68.8%	0									66.5%
Total (A.1+A.2)		2,886	60.0%	31.2%	0	0	0	68.8%	0									66.5%
B. Non-taxonomy-eligible activities
CapEx for non-taxonomy-eligible activities		1,593	33.5%
Total (A+B)		4,806	100 %

Percentage of revenue/ total revenue

	Taxonmy aligned per goal	Taxonomy eligible per goal
CCM	0%	0%
CCA	0%	0%
WTR	0%	0%
CE	0%	40.5%
PPC	0%	0%
BIO	0%	0%

Percentage OpEx/ total OpEx

	Taxonmy aligned per goal	Taxonomy eligible per goal
CCM	0%	0%
CCA	0%	0%
WTR	0%	0%
CE	0%	99.3%
PPC	0%	0%
BIO	0%	0%

Percentage CapEx/ total CapEx

	Taxonmy aligned per goal	Taxonomy eligible per goal
CCM	0%	18.7%
CCA	0%	0%
WTR	0%	0%
CE	0%	41.3%
PPC	0%	0%
BIO	0%	0%

Revenue

DATA MODUL generated 212,878 thousand euros in total revenue for 2025, recorded by its Displays and Systems segments. The Systems segment contains proprietary DATA MODUL products and its operations correspond fully to activity CE 1.2 "Manufacture of electrical and electronic equipment". Accordingly, we have classified revenue of 86,277 thousand euros recorded by the Systems segment as taxonomy-eligible. The percentage of taxonomy-eligible revenue is thus 40.5%. Review of the technical screening criteria (TSC) for the taxonomy-eligible activities indicated that cumulative fulfillment is not given. As a result, no separate review of the minimum safeguards was necessary. There is therefore an alignment of 0%.

OpEx

In accordance with Annex 1, point 1.1.3.1 of Delegated Regulation (EU) 2021/2178, total operating expenses, recorded in the amount of 11,670 thousand euros, include all direct, noncapitalized costs related to research and development, building renovation measures, short-term leases, maintenance and repairs and other direct expenses relating to day-to-day maintenance of property, plant and equipment assets. Where possible, operating expenses were referenced to the identified taxonomy-eligible activity CE 1.2 using data derived directly from our financial systems. Taxonomy-eligible operating expenses of 11,583 thousand euros for fiscal year 2025 represents 99.3% taxonomy eligibility relative to total operating expenses of 11,670 thousand euros. The alignment percentage is 0% because operating expenses are not linked to taxonomy-aligned economic activities.

CapEx

The reference value (denominator) for our taxonomy-eligible activities is determined in accordance with Annex 1, point 1.1.2.1 of Delegated Regulation (EU) 2021/2178. For fiscal year 2025 the reference amount is 4,806 thousand euros. That figure includes investments in property, plant and equipment per IAS 16, intangible assets per IAS 38 and leases per IFRS 16 stated in the annual report. Capital expenditure for pro-jects and long-term lease contracts is referenced to activities CE 1.2, CCM 6.5 and CCM 7.7 identified as taxonomy-eligible by means of finance systems and interviews with personnel from the responsible departments. For the fiscal year 2025 Capex of 2,886 thousand euros was attributable to the identified activities of 60.0%. Review of the technical screening criteria (TSC) for the taxonomy-eligible activities indicated that cumulative fulfillment is not given. As a result, no separate review of the minimum safeguards was necessary. There is therefore an alignment of 0%.

6.9 Social 6.9.1 Employee interests Management concept

Our employees are the foundation for DATA MODUL's success. The topic of "Own workforce" (ESRS S1) is thus obviously of material importance for DATA MODUL. At the end of 2025 the Group had 508 employees (2024: 519). The average workforce headcount for the year decreased slightly by 0.5% to 528 staff members (2024: 531) Work hours, fair pay, work-life balance, and training and skills development are key factors of relevance for employees.

Social Responsibility, as one of the three pillars of DATA MODUL's understanding of sustainability, is comprised of the following focus areas: employee retention, training, personnel development and international cooperation.

Accordingly, we are at pains to structure our HR and continuing education policies in alignment with the company philosophy of "Success through expertise and responsibility". This involves regular evaluation of standard metrics like length of employment, sick leave rate and turnover in relation to the averages for the industry. The respective HR area managers are responsible for this. Workforce-related projects, their results and their effectiveness are discussed at Executive Management meetings as needed.

Risks

Potential risks concerning the Company's own workforce were systematically identified and assessed in ongoing risk management and as part of the double materiality assessment. Such risks include particularly loss of know-how due to staff turnover. As the economic situation remains challenging, we are seeing the labor market loosen up, meaning that skilled labor is more readily available.

Measures and activities

DATA MODUL manages the risk of losing know-how due to staff turnover by providing attractive continuing education offerings, targeted skills development opportunities and performance-based bonuses and incentive schemes. We engage in continuous efforts to optimize the recruiting process. These focus on recruiting talented individuals who, in addition to meeting the specialized skill requirements, are also a good fit for the Company culture on a personality level. Such recruiting can lower the voluntary termination rate, increasing employee retention over the long term. Relevant measures include employer branding, targeted recruiting, selection process optimization, rolling out a new recruiting tool for an improved candidate experience, transparent communications and a comprehensive onboarding and feedback process.

6.9.1 .1 Employee rights Our approach

DATA MODUL is committed to upholding nationally and internationally recognized standards for employee rights at all Company locations. This includes strict compliance with laws governing fair work conditions, including fair pay and regulated work hours. In certain areas we make sure to exceed minimum legal requirements in the interest of maintaining a safer, healthier and more attractive work environment. Specific measures were taken in response to the minimum wage increase in 2026.

Measures and activities

German standards – also abroad

DATA MODUL is a global enterprise with sales, production and logistics locations in Europe, Asia and the US. We enforce German standards at our international locations in order to ensure uniform quality as well as safety, adapted to conform with local laws as necessary.

Healthy and safe work environment

Occupational safety instructions are regularly given to ensure that employees are properly trained so as to minimize risk. DATA MODUL furthermore engages in wellness and prevention activities including vaccination campaigns, vision testing, sports and athletics courses, gym and e-bike leasing. [GRI SRS-403-4]

Flexible work hours and fair pay

Staff involvement to further sustainability

DATA MODUL promotes staff participation in sustainability management by means of a group-wide employee suggestion scheme. The scheme promotes ongoing contributions of innovative ideas and their further pursuit. Corporate volunteering campaigns are also held on a regular basis as opportunities to actively support social and ecological projects. In-person dialogue between Sustainability Management and our staff is being progressively furthered.

Work-related injuries [GRI SRS-403-9]

In fiscal year 2025, six minor accidents without serious consequences involving an absence time of more than 3 days were recorded Group-wide.

Work-related ill health [GRI SRS-403-10]

No work-related illnesses were recorded Group-wide in fiscal year 2025

6.9.1.2 Diversity and equal opportunity Our approach

DATA MODUL offers flexible work hours and a corresponding pay structure with fixed salary plus variable components, including bonuses to reward individual performance. A transparent wage scheme was introduced at the production sites in 2024 which clearly outlines structures, expectations and career development opportunities. This scheme is expected to be fully implemented in fiscal year 2026. Inclusion and integration DATA MODUL strives to maintain an inclusive work environment that supports individuals with differing skillsets. In fiscal year 2025 DATA MODUL had employees hailing from 33 nations, including refugees from Ukrainian working at our site in Poland. In addition to employment, these individuals have received assistance with getting integrated into society in their new life situation.

DATA MODUL is committed to proactively promoting equal opportunity and maintaining a work environment characterized by equal treatment and diversity. A Code of Conduct is in place documenting our commitment to equal treatment and equal opportunity irrespective of ethnic origin, skin color, gender, religion, nationality, sexual orientation, social class or political views—exclusively on a basis of democratic principles and tolerance of others who have a conflicting opinion.

Measures and activities

Hiring process

Employees are selected, hired and promoted based exclusively on their qualifications and skills. New hires contribute fresh perspectives that enhance our innovative capability and our dynamism as an international organization.

Work-life balance and gender equality

Flexible work hours time models help employees better balance work requirements with obligations in their personal lives. DATA MODUL is committed to actively supporting female managers at its domestic and international production and logistics sites.

Diversity [GRI SRS-405-1]

In fiscal year 2025 women comprised roughly 40% of all staff at the DATA MODUL Group (including apprentices). Women comprised 50% of the top hierarchical level, about 28% of all managers throughout the DATA MODUL Group, 24% of managers at DATA MODUL AG and 20% of managers at DATA MODUL Weikersheim GmbH. At the location in Poland, 16% of managers were female. Data collection clustered by age group (below age 30, age 30-50, over 50) is not performed at this time. Medium-term plans exist to record such data. In 2025, 3.65% of all DATA MODUL AG staff had a severe disability, thus the Company fell short of the legislatively mandated minimum of 5%. At DATA MODUL GmbH however, 5.3% of all staff have a severe disability, exceeding the mandated minimum.

Discrimination [GRI SRS-406-1] No incidents were noted in fiscal year 2025.

6.9.1.3 Training and continuing education Our approach

Employee training and continuing education are a high priority for DATA MODUL. We see our apprenticeship program as one of our greatest strengths, representing a valuable investment in young people. Our continuing education strategy has been designed to grow the individual skills of our employees so as to optimally prepare them for their position's responsibilities within a dynamic work environment. Knowledge transfer and skills development are also strategic focus topics.

The qualifications matrix outlines the necessary professional and personal skills requirements for the respective occupational areas. The manager records target versus actual values and determines in close coordination with HR what internal or external training may be necessary in order to reach the target. A training evaluation is conducted once such training has been completed, which is initiated by HR and performed by the employee's department.

Measures and activities

Apprenticeships

In the highly competitive job market of 2025, DATA MODUL attracted eight young people to start an apprenticeship in seven different occupations. We thus now have 26 apprentices in all, plus one cooperative education student. Our goal is to provide comprehensive training, which we achieve on the basis of a detailed apprenticeship plan, using our in-house apprenticeship workshop at the Weikersheim production site. The success is reflected in the number of hires: in recent years, all trainees with good performance have been hired after successfully completing their training. At the Weikersheim site, for example, we have 42 current and former apprentices working in all, six of whom are in managerial positions.

The "Meetings with Business" program was launched at the Lublin site in 2025 in partnership with the Technical University. These regular meet-ups promote collaboration between students, scientists and businesses.

Continuing education

Beyond apprenticeships, continuing education as the other side of the training coin is also crucial at DATA MODUL, in order to develop our existing in-house talent. The internal training platform INSIGHT SKILLS, specifically tailored to the needs of our staff, plays a key role in these efforts. In particular, product training courses can be taken on the platform allowing staff to acquire in-depth knowledge about the Company's portfolio. Training courses on department-specific processes are also available so staff can learn more about internal workflows. Employees can also benefit from custom designed specialist courses as well as language courses in business English and German. From time to time, individual team members are seconded to one of our international locations for a period of several months. Secondment assignments afford valuable learning experiences, promote global knowledge sharing and strengthen cooperation across national borders. By focusing squarely on the potential of the individual and providing targeted skills development and continuous learning opportunities we create a work environment in which each individual can grow, deploy his or her strengths and actively contribute to our common success.

Average hours of training per year per employee

[GRI SRS-404-1]

DATA MODUL does not at this time collect this data, nor are there any plans to do so over the medium term.

Outlook

New HR software will be rolled out in fiscal year 2026 to provide more comprehensive support for HR processes. Another focus is on expanding personnel development and the associated training and continuing education measures, utilizing the qualifications matrix.

6.9.2 Human Rights

Management concept

DATA MODUL respects human rights and agrees to the Universal Declaration of Human Rights. Upholding human rights is of great importance to all locations worldwide, as this is part of ensuring an equitable, safe and respectful work environment. Supplier relationships were identified as a material topic (ESRS G1) in the double materiality assessment.

Supply Chain Resiliency—one of the three pillars of DATA MODUL's understanding of sustainability—consists of the following key areas: production-oriented procurement, product data transparency and better integration of sustainability in supplier selection and evaluation processes.

Measurable targets in the areas of human rights and supply chain were reviewed and discussed as part of the 2025 Sustainability Strategy. Procurement and Sustainability Management jointly decided that the human rights points relevant to the supply chain are bindingly anchored in the Code of Conduct. The Company believes that requiring suppliers to adopt the Code of Conduct is an appropriate steering measure for achieving the defined objectives. For this reason it has been decided to forego the implementing of further quantitative indicators at this time.

Risks

Potential risks concerning supply chain personnel were systematically identified and assessed in ongoing risk management and as part of the double materiality assessment. The assessment did not reveal any significant human rights-related risks in the supply chain.

Measures and activities

DATA MODUL has implemented a three-part structured process to ensure fulfillment of its due diligence obligations regarding the upholding of human rights, consisting of a binding code of conduct, audits and supplier evaluations.

Binding Code of Conduct

The Code of Conduct ensconces DATA MODUL's commitment to respecting human rights and acting to prevent discrimination, forced labor, child labor and any form of exploitation in the Company's own operations and in its supply chain. DATA MODUL has also adopted clearly formulated standards to which all business partners are subject—all new suppliers are required to sign the Code of Conduct for Suppliers. The Code of Conduct outlines social, environmental and ethical standards, including respect for human rights and bans on discrimination, child labor and forced labor.

Audits and on-site visits

DATA MODUL conducts supplier audits based on product relevance. The formal audit criteria do not however include a separate section on human rights at this time. DATA MODUL furthermore regularly organizes on-site visits at select suppliers' facilities worldwide to ensure adherence with standards, involving the first-hand inspection of working conditions and production processes.

Comprehensive supplier evaluations

Investment agreements subject to human rights scree
nings [GRI SRS-412-3]
As a rule, DATA MODUL invests in its existing locations, which
respect internationally recognized human rights—thus the
relevant total is 0.
Operations subject to human rights reviews [GRI SRS-412-1]
Protection of human rights is ensured at all DATA MODUL
company locations worldwide.
New suppliers subject to social screening
[GRI SRS-414-1]
All DATA MODUL suppliers who sign the Code of Conduct for
Suppliers confirm that they will adhere with and uphold the
Universal Declaration of Human Rights.
Social impacts in the supply chain[GRI SRS-414-2]
No separate supplier auditing is conducted.
6.9.3 Social responsibility
Management concept
Taking social responsibility is an aspect of sustainability;
mutual respect, appreciation and integrity are firmly ancho
red as values within the DATA MODUL corporate culture. We
stand for equal opportunity and are committed to our emplo
yees and society.
No significant impacts, risks or opportunities relating to social
responsibility or affected communities were identified how
ever in the double materiality assessment. Accordingly, the
re are still no plans to outline specific targets relating to this
topic in a strategic framework. Existing social responsibility
commitments will continue to be upheld. Monitoring of the
effectiveness of our social responsibility activities is not con
ducted at this time.
Measures and activities
Munich

Supplier evaluation is a continuous process aimed at verifying the quality, reliability and sustainability performance of our supply partners. This forms a basis for optimizing our business relationships, implementing specific improvements. Sustainability criteria were added to the supplier evaluation in 2025, compliance with which will be mandatory starting in 2026. sporting events in Munich, including charity runs whose proceeds go to support various worthy causes. Weikersheim Management at our Weikersheim location maintains regular dialogue with the city government and the city's trade and business association, discussing upcoming projects and

DATA MODUL is involved in both local and international social responsibility projects. This year the Group has repeatedly made donations to our partner charity Plan International, a non-profit aid organization for children and their families living in crisis areas. Our employees are also actively involved in

plans. An example of this is the municipal heating concept, in which the city works closely with local companies to make the regional energy supply more sustainable.

Additionally, DATA MODUL has been cooperating with Krautheimer Werkstätten for over 15 years, a certified waste disposal provider with an initial handling facility that ensures that electrical and electronic waste is sustainably recycled. The Werkstätten provide employment opportunities for people with disabilities and promotes their social integration and occupational advancement. Roughly 15 - 25 tons of electronic components are collected annually as part of our partnership, which are painstakingly taken apart on site before recycling in accordance with applicable laws.

The regional initiative "Creative Minds" enables students between the ages of 13 and 19 to get their first practical experience in the industry while realizing creative ideas in a practical setting. DATA MODUL has been involved in the project since 2023. Students select a participating company as partner with whom to jointly realize innovative projects involving mathematics, computer science and the natural sciences.

DATA MODUL also provides financial support to charitable institutions throughout the region, including the Bad Mergentheim food bank, the local branch of the German Red Cross in Weikersheim, the local kindergarten, the Tauberphilharmonie concert hall, the biennial opera at the castle, and the Skulpturen.SCHAU! sculpture exhibition.

Lublin

Social responsibility activities at the Lublin production site revolve mainly around education and health. DATA MODUL cooperates closely with the Electronics Technical School in Lublin to provide valuable practical experience opportunities to about 5 - 10 students annually in the fields of electronics, IT and mechatronics. As in the previous year, DATA MODUL AG took part in the St. Nicholas Charity Run organized by the Świdnik Running Association, which raises money for the treatment and rehabilitation of sick children. The Company is a sponsor of the event and had four participating employees out there running for charity. The sponsorship underscores the Company's interest in the physical health of its workforce.

One of the site's employees has been a lecturer at the Lublin Academy of Social and Medical Sciences since 2001, teaching about practical business topics like human capital management, incentive schemes and organizational communication. She is also a member of the Business Cooperation team, which is tasked with adapting curricula to labor market needs.

Direct economic value generated and distributed

[GRI SRS-201-1]

Please refer to the Consolidated Financial Statements regarding this topic.

6.10 Governance

6.10.1 Political influence

DATA MODUL is politically neutral and independent. The Company does not exert political influence, is not a member of any politically active organization, does not make submissions on legislative proposals, and does not support political parties, candidates, or activities by financial or other means.

The following legislative and regulatory processes are of primary relevance to DATA MODUL:

• NIS2 Directive (EU) 2022/2555: an EU directive establishing requirements for corporate IT security structures. The Directive entered into force on December 6, 2025, requiring registration with the Federal Office for Information Security (BSI) by March 6, 2026 and compliance with extensive reporting obligations by implementing a dedicated risk management system. Relelvant security mechanisms were already in place at DATA MODUL, but we are working with an external partner on compliance with the requirements.
• CSRD: an EU directive providing for more comprehensive standardized sustainability reporting. DATA MODUL started the process of ensuring compliance with requirements in fiscal year 2024, and in 2025 consistently monitored developments relevant on the international and national levels. In December 2025, the European Parliament and the Council of the European Union adopted major simplifications for sustainability reporting as part of the Omnibus I package while introducing new thresholds. Going forward, reporting obligations will only apply to companies with more than 1,000 employees and revenue of 450 million euros. To date however—as of March 2026—Germany has still not implemented the directive in national law.

Political contributions [GRI SRS-415-1] DATA MODUL does not donate to political parties.

6.10.2 Conformity with laws, directives and policies Management concept

Business conduct (ESRS G1) is a material topic for DATA MODUL pursuant to the double materiality assessment. Key considerations include corporate policies to protect whistleblowers and combat as corruption and bribery. The Executive Board is responsible for ensuring compliance with laws, directives and policies governing business conduct.

DATA MODUL is committed to complying with laws, directives and policies governing business conduct at all Company locations worldwide. As an international enterprise, the Group is broadly subject to national and international laws and regulations. DATA MODUL AG is furthermore as an exchange-listed company subject to German stock corporation law and capital market regulations and governed by the Company's own articles of association. This involves many reporting and disclosure obligations that afford transparency for our stakeholders. DATA MODUL has a comprehensive compliance regime in place to ensure consistent compliance with laws, internal policies and ethical principles. The three pillars of this concept are prevention, monitoring and response.

Prevention

Potential compliance risks are identified and assessed as part of ongoing risk management, and in the context of the materiality assessment. Potential risks to which we may have exposure include:

• Compliance breaches by the Company can result in significant fines, additional costs and negative media coverage.
• Employee policy violations

Risk exposure from compliance violations is assessed as low overall.

As a global corporation, DATA MODUL cooperates closely with accounting firms and specialized tax consultants and law firms at its locations to ensure compliance with national laws and regulations of the respective countries. All employees are bound by the Code of Conduct to conduct themselves in compliance with applicable laws and policies. ance is an integral part of the corporate culture, keeping the Company on secure legal and ethical grounding.

Monitoring

DATA MODUL has internal control procedures in place including software access restrictions, dual-review requirements and random checks designed to ensure compliance with laws and regulations.

DATA MODUL additionally empowers employees, customers and partners to report misconduct anonymously, in

Staff training is important in order to avoid compliance incidents. In the onboarding process, new hires are informed regarding compliance-relevant matters, including the Code of Conduct, data protection and the whistleblower system. All employees are required to attend mandatory external IT seminars on data protection. Information events are regularly held to raise awareness on IT attacks such as "fake president fraud". The Executive Board and senior management are always available to answer any questions. No violations were reported. Compliance with all applicable laws and other binding obligations is monitored by referencing the Company's legal register.

accordance with the Whistleblower Protection Act. Whist
leblowers are thus able to expose corruption, bribery and
other abusive activity in breach of of laws and regulations wit
hout fear of reprisal or negative consequences. All staff have
access to the whistleblower system via the website:
https://www.data-modul.com/en/whistleblower-system
Response
All reported cases violations or breaches are systematically
investigated. Confirmed violations are addressed by means
of appropriate disciplinary action or process revisions to pre
vent recurrence.
The DATA MODUL compliance regime is furthermore regu
larly reviewed and adapted to changes in legal requirements,
industry standards and international directives. Review fin
dings are taken as a basis to optimize policies, processes and
training measures. DATA MODUL thus ensures that compli

Operations assessed for risks related to corruption

[GRI SRS-205-1]
No risks related to corruption exist in regard to operations,
thus a separate assessment is not performed.

Confirmed incidents of corruption and actions taken

[GRI SRS-205-3]

No confirmed corruption incidents have taken place.

Non-compliance with laws and regulations

[GRI SRS-419-1]

Annex - Complete data at a glance

No.	Non-financial disclosures section	CSR Implementation Act (CSR-RUG)	German Sustainability Codex (DNK) criteria	Page
	Introduction			51
	General information		General information	51
	Sustainability concept			52
6.1	Strategy		1. Strategic analysis and action	52
6.2	Material topics		2. Materiality	53
6.3	Goals		3. Objectives	54
6.4	Value chain		4. Depth of the value chain	55
6.5	Responsibility, rules, and processes		5. Responsibility 6. Rules and processes	56
6.6	Performance indicators and incentive schemes		7. Control 8. Incentive schemes	56
6.7	Stakeholder-oriented innovation and product management		9. Stakeholder engagement 10. Innovation and product management	57
	Sustainability information (ESG)			58
6.8	Environment	Environmental matters	11. Usage of natural resources 12. Resource management 13. Climate-relevant emissions	58
6.8.1	Resource consumption		11. Usage of natural resources	59
6.8.2	Resource management		12. Resource management	59
6.8.3	Climate-relevant emissions		13. Climate-relevant emissions	61
6.8.4	Information on the EU taxonomy			62
6.9	Social			66
6.9.1	Employee-related matters	Employee-related matters	14. Employment rights 15. Equal opportunities 16. Qualifications	66
6.9.1.1	Employee rights		14. Employment rights	67
6.9.1.2	Diversity and equal opportunity		15. Equal opportunities	67
6.9.1.3	Training and continuing education		16. Qualifications	68
6.9.2	Human rights	Respect for human rights	17. Human rights	68
6.9.3	Social responsibility	Social matters	18. Corporate citizenship	69
6.10	Governance			70
6.10.1	Political influence		19. Political influence	70
6.10.2	Conformity with laws, directives and policies	Combating corruption and bribery	20. Conduct that complies with regulation and policies	70

7. Closing statement of the Executive Board on relationships with affiliated companies

In fiscal year 2025 DATA MODUL AG was a controlled affiliate of Arrow Central Europe Holding Munich GmbH, Munich, Germany per Sec. 312 of the German Stock Corporation Act. The DATA MODUL AG Executive Board thus compiled an Executive Board report on relationships with affiliated companies in accordance with Sec. 312 (1) German Stock Corporation Act (AktG) containing the following closing statement:

"The Company's Executive Board declares that DATA MODUL AG received consideration for all legal transactions stated in this Report on Relations with Affiliated Companies which was appropriate in light of the circumstances known to the Executive Board at the time the transactions were undertaken. No other actions were undertaken or omitted under the direction or in the interest of the controlling company during the fiscal year under review."

Munich, March 19, 2026

Dr. Florian Pesahl Chief Executive Officer DATA MODUL AG

Consolidated Financial Statements

Contents

Consolidated Financial Statements

Consolidated Statement of Financial Position	76
Consolidated Statement of Income	78
Consolidated Statement of Comprehensive Income	79
Consolidated Statement of Cash Flows	80
Consolidated Statement of Changes in Equity	81
Notes to the Consolidated Financial Statements	82
1. Description of Business	82
2. Summary of Significant Accounting Policies	82
3. Consolidation	85
4. Recognition and Measurement Methods	86
5. Notes to the Statement of Income	97
6. Notes to the Statement of Financial Position	102
7. Notes to the Statement of Cash Flows	112
8. Supplementary Disclosures	113

Assets	Notes	12/31/2025	12/31/2024
Non-current assets
Goodwill	[9]	2,419	2,419
Intangible assets	[9]	3,628	3,194
Property, plant and equipment	[9]	19,807	21,149
Right-of-use assets	[10]	12,757	14,411
Capitalized costs to fulfill a contract	[11]	7,159	7,657
Deferred tax assets	[7]	3,994	745
Total non-current assets		49,764	49,575
Current assets
Inventories	[12]	94,988	95,847
Trade accounts receivable Including write-downs for doubtful accounts (2025: 106; 2024: 116)	[13]	25,951	29,509
Contract assets	[13]	2,749	4,563
Tax receivables	[13]	474	2,779
Other current assets	[13]	4,572	4,411
Other current financial assets	[13]	1,158	2,959
Cash and cash equivalents	[14]	12,996	20,428
Total current assets		142,888	160,496
Total assets		192,652	210,071

All figures in KEUR

Consolidated Statement of Financial Position

as of December 31, 2025

[15]	10,579	10,579

10,579
24,119
115,110
1,307
151,115
1,102
216
5,980
13,830
1,506
22,634
15,877
215
3,069
3,743
1,852
3
7,395
4,169
36,322
58,956

All figures in KEUR

	Notes	2025	2024
Revenue	[1]	212,878	226,208
Cost of sales	[2]		(182,257) (183,737)
Gross margin		30,621	42,471
Other operating income	[3]	43	2,082
Research and development expenses	[4]	(6,708)	(6,070)
Selling and general administrative expenses	[5]	(28,857)	(29,162)
Earnings before interest and taxes (EBIT)		(4,901)	9,321
Financial income	[6]	172	81
Financial expenses	[6]	(1,389)	(1,428)
Consolidated net income (loss) for the year before taxes		(6,118)	7,974
Income tax expense	[7]	1,542	(2,397)
Consolidated net income (loss) for the year		(4,576)	5,577
Earnings per share – basic	[8]	(1.30)	1.58
Earnings per share – diluted	[8]	(1.30)	1.58
Weighted average number of shares outstanding – basic			3,526,182 3,526,182
Weighted average of shares outstanding – diluted			3,526,182 3,526,182

All figures in kEUR, except earnings per share and weighted average shares outstanding.

Consolidated Statement of Income

for the period January 01 to December 31, 2025

[15]	2025	2024
Consolidated net income (loss) for the year	(4,576)	5,577
Other comprehensive income (loss)
Other comprehensive income (loss) to be reclassified and reported in profit or loss in subse quent reporting periods
Adjustments from currency translation of foreign subsidiary results	(944)	326
Adjustments from currency translation of a net investment in a foreign operation	0	331
Attributable tax effects	0	(284)
Total other comprehensive income (loss) to be reclassified and reported in profit or loss	(944)	373
Other comprehensive income (loss) not to be reclassified and reported in profit or loss in subsequent reporting periods
Actuarial gains (losses) [16]	(44)	(69)
Attributable tax effects	13	21
Total other comprehensive income (loss) not to be reclassified and reported in profit or loss	(31)	(48)
Total other comprehensive income (loss)		325
Comprehensive income (loss) after tax		5,902

All figures in KEUR

Consolidated Statement of Comprehensive Income

for the period January 01 to December 31, 2025

Notes	2025	2024
Cash flows from operating activities [7]
Consolidated net income for the year	(4,576)	5,577
Non-cash expenses and income:
Income tax expense	(1,542)	2,398
Depreciation, amortization and impairments	10,778	11,892
Provisions for bad debts	82	61
Net interest	1,066	1,299
Net loss / gain from embedded derivatives measured at fair value through profit or loss	150	48
Other non-cash expenses and income	(193)	(319)
Changes:
Change in inventories	858	4,368
Change in trade receivables, costs to fulfill a contract and contract assets	2,401	6,930
Change in other assets	2,198	(2,819)
Change in trade accounts payable	(4,125)	(4,950)
Other liabilities and contract liabilities	(4,699)	1,995
Income tax payments made	(2,218)	(4,752)
Cash flows from operating activities	180	21,728
Cash flows from investing activities [7]
Proceeds from disposals of fixed assets	0	69
Capital expenditures on capitalizable development projects	(219)	(457)
Capital expenditures on other intangible assets and property, plant and equipment	(3,687)	(3,126)
Cash flows from investing activities	(3,906)	(3,514)
[7] Cash flows from financing activities
Outflows for the redemption portion of lease liabilities	(2,175)	(2,178)
Inflows from current financial liabilities (+)	1,450	2,002
Outflows from current financial liabilities (-)	(1,453)	(10,032)
Dividend paid	(423)	(423)
Interest received (+) / paid (-) (net)	(1,035)	(1,261)
Other financing activities	(79)	37
Cash flows from financing activities	(3,715)	(11,855)
Effects of exchange rate movements on cash & cash equivalents	9	(255)
Net change in cash and cash equivalents	(7,432)	6,104
Cash and cash equivalents at beginning of the fiscal year	20,428	14,324
Cash and cash equivalents at end of the fiscal year	12,996	20,428

All figures in KEUR

Consolidated Statement of Cash Flows

for the period January 01 to December 31, 2025

All figures in KEUR except number of shares

[15]	Share capital No. of shares	Share capital Amount	Capital reserves	Retained earnings	Other reserves	Total
BALANCE AS OF 01/01/2024	3,526,182	10,579	24,119	109,957	981	145,636
Consolidated net income for the year				5,577		5,577
Dividend				(423)		(423)
Other comprehensive income (loss)				(1)		(1)
Foreign currency translation					326	326
BALANCE AS OF 12/31/2024	3,526,182	10,579	24,119	115,110	1,307	151,115
[15]
BALANCE as of 01/01/2025	3,526,182	10,579	24,119	115,110	1,307	151,115
Consolidated net income (loss)				(4,576)		(4,576)
Dividend				(423)		(423)
Other comprehensive income (loss)				(31)		(31)
Foreign currency translation					(944)	(944)
BALANCE AS OF 12/31/2025	3,526,182	10,579	24,119	110,080	363	145,141

Consolidated Statement of Changes in Equity

for the period January 01 to December 31, 2025

1. Description of Business

DATA MODUL Aktiengesellschaft Produktion und Vertrieb von elektronischen Systemen, Munich, manufactures and distributes innovative flatbed displays, monitors, electronic subassemblies and complete information systems. DATA MODUL displays and easyTOUCH displays, electronic subassemblies and custom products for use in industrial applications and the automotive industry comprise the Displays business segment.

The Systems business segment comprises selling our easy-Board, easyPanel and easyEmbedded Solutions and special monitors for marine navigation and medical device applications, also targeting airport, rail and digital signage customers.

The main business address of the Company is Landsberger Strasse 322, 80687 Munich, Germany as recorded in the Munich Commercial Register under record number HRB 85591. The Consolidated Financial Statements as of December 31, 2025 were approved by the Executive Board in March 2026.

2. Summary of Significant Accounting Policies

Basis and methods

The reporting company in the Consolidated Financial Statements is DATA MODUL AG with registered office in Munich, and its corporate subsidiaries.

The Consolidated Financial Statements were prepared in accordance with International Financial Reporting Standards (IFRS) outlined by the International Accounting Standards Board (IASB), as adopted by the EU, and in accordance with

Sec. 315e (1) of German Commercial Code (Handelsgesetzbuch [HGB]) and applicable provisions of German commercial law.

The Consolidated Financial Statements of DATA MODUL AG were prepared in accordance with standard accounting policies pursuant to IFRS 10 (Consolidated financial statements). The recognition and measurement methods we applied did not significantly change versus the previous year, except where changes in IFRS accounting procedures required application on and after January 1, 2025.

The Consolidated Financial Statements consist of the consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flows, consolidated statement of changes in equity and the notes to the Consolidated Financial Statements. The disclosures in the Notes include the Company's segment reporting. The Consolidated Financial Statements are prepared in euros (EUR). For presentation purposes, euro amounts are rounded to thousands of euros (KEUR). For computation purposes, the tables and notes may include deviations from the accurately calculated amounts due to rounding. The fiscal year corresponds to the calendar year. In compliance with the Digitalization Directive (DiRUG) of August 1, 2022, the Consolidated Financial Statements will be published in the register of companies instead of the Federal Gazette (BAnz) starting in 2022. The income statement was prepared using the cost-ofsales method. Certain items on the statement of income and statement of financial position are combined for clarification purposes; explanatory comments are provided in the Notes. The balance sheet is organized to recognize current versus non-current assets and liabilities, in accordance with IAS 1

Notes to the 2025 Consolidated Financial Statement

(Presentation of Financial Statements). Assets, provisions and liabilities are classified as current if they are realizable or fall due within one year.

Amendment to IAS 21: The Effects of Changes in Foreign Exchange Rates

solidated Financial Statements.

Standards issued but not yet effective

Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments

Adoption of new accounting standards DATA MODUL initially applied the new and revised standards and interpretations outlined below in fiscal year 2025. The changes are applicable for fiscal years starting on or after January 1, 2026. The IASB has announced that early application of the amendments is permitted. EU endorsement was given on May 27, 2025.

The IASB published amendments to IAS 21 in August 2023. The amendment concerns determination of the exchange rate given a long-term lack of exchangeability, as IAS 21 heretofore had no provisions governing this. With these amendments, IAS 21 now includes On December 18, 2024 the IASB published "Contracts Relating to Nature-based Electricity (Amendments to IFRS 9 and IFRS 7)".

On May 30, 2024 the IASB published amendments which in particulare affected the classification and measurement of financial instruments. There has been discussion about the extent to which such ESG characteristics of financial instruments affect their classification in practical application, i.e. measurement at amortized cost or fair value. Subsequent measurement depends on the cash flow characteristics of the financial asset. With these amendments the IASB is clarifying the treatment of contractual cash flows from such instruments. The amendments also clarify the point in time when a financial asset or financial liability is to be derecognized. Additionally, an option is introduced allowing an entity to derecognize a financial liability before delivering cash on the settlement date if certain criteria are met.

• rules for determining whether one currency can be exchanged for another • instructions on how to determine the exchange rate if exchangeability is not given, and • additional corresponding disclosure requirements. The changes apply to fiscal years starting on or after January 1, 2025. EU endorsement was given on November 12, 2024. Application of these amendments had no effect on the Con-Businesses enter into contracts relating to nature-based electricity to get access to electrical power from wind turbines, solar and other natural sources. These are often structured as power purchase agreements (PPAs). Under these contracts, supply can fluctuate due to weather conditions and other unforeseen factors. Applying the latest accounting standards has impacted earnings in ways that in some cases did not adequately reflect these contracts' influence on the performance of the reporting entity. The IASB has made the following changes so that these contracts will be better reflected in reporting entities' financial statements:

The IASB also introduced additional disclosure requirements in these amendments regarding investments in equity instru-

ments measured at fair value through other comprehensive
income and financial instruments with conditional features
(e.g. ESG objectives).

Amendments to IFRS 9 and IFRS 7 – Contracts Relating to Nature-based Electricity

• Clarifications on application of the own-use exemption with these contracts
• Modification of hedge accounting rules to allow using contracts relating to nature-based electricity from renewable energy sources as a hedging instrument when certain conditions are met
• Introduction of additional disclosure requirements to enable investors to understand how these contracts impact an entity's financial performance and future cash flows.

The changes are applicable for fiscal years starting on or after January 1, 2026. The IASB has announced that early application of the amendments is permitted. EU endorsement was given on June 30, 2025.

IFRS 18 – Presentation and Disclosure in Financial Statements

On April 9, 2024 the IASB published the standard IFRS 18 "Presentation and Disclosure in Financial Statements". The primary purpose behind IFRS 18 is making it easier to accurately assess an entity's performance by means of a presentation that affords greater comparability. IFRS 18 replaces IAS 1, with most of the previous requirements retained unchanged but new ones added. Additionally, some regulations from IAS 1 were shifted to IAS 8 and IFRS 7. The IASB also made minor adjustments to IAS 7 and IAS 33.

A revised structure for the profit and loss account with new mandatory subtotals has thus been mandated. Expenses and income are to be classified to the following newly defined areas:

• operating
• investing
• financing.

Presentation options have also been eliminated.

Accordingly, the disclosure options for dividends and interest received and paid on the statement of cash flows are no longer available, and operating profit is mandated as the starting point when applying the indirect method.

IFRS 18 also provides useful information specific to the reporting entity, such as specifications as to whether and in what manner disclosures on management-defined performance measures (MPMs) are to be stated in the Notes. Additionally there are new rules on aggregation and disaggregation in the primary financial statement elements and in the Notes.

Application of IFRS 18 is mandatory for fiscal years starting on or after January 1, 2027. Earlier application is permitted. EU endorsement is pending.

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

On May 9, 2024 the IASB published a new accounting standard governing subsidiaries. Under IFRS 19, "Subsidiaries without Public Accountability: Disclosures", allows certain subsidiaries can apply IFRS accounting standards with fewer disclosures in the Notes.

A subsidiary can apply IFRS 19 if

• the subsidiary itself has no public accountability, and
• its parent company prepares IFRS Consolidated Financial Statements.

Public accountability is in particular given if the subsidiary has issued equity or debt instruments that trade on a public market. If a subsidiary fully applies IFRS in its separate or consolidated financial statements, the extent of disclosures required in the Notes can be reduced by optionally applying IFRS 19. The rules on recognition, measurement and presentation under other IFRS standards remain applicable, however. IFRS 19 will be applicable for reporting periods with start date on or after January 1, 2027. Earlier application is permitted. EU endorsement is pending.

Amendments to IAS 21 – Translation to a

Hyperinflationary Presentation Currency On November 13, 2025 the IASB published narrowly defined amendments to IAS21 "The Effects of Changes in Foreign Exchange Rates" clarifying how to translate financial data from a non-hyperinflationary currency into a hyperinflationary presentation currency. The changes concern practical issues regarding application of IAS21 and IAS29, and are intended to minimize inconsistencies and enhance the informative value of reporting.

The main thrust of these changes is that all amounts, including comparison figures, must be remeasured at the exchange rate as of the closing date of the most recent reporting period when translating from a functional currency of a non-hyperinflationary national economy into a hyperinflationary presentation currency. Transition rules were also defined for the case when a company's presentation currency ceases being hyperinflationary. Expanded disclosure requirements were also defined requiring companies to disclose that they are applying these new translation methods.

The changes are effective for fiscal years beginning on or after January 1, 2027; early application is permitted.

Amendments to IFRS 19 – Subsidiaries without Public Accountability: Disclosures

On August 21, 2025 the IASB published updates to IFRS 19 that align the lowered disclosure standard for subsidiaries without publicly accountability with more recent IFRS changes. In particular, the amendments relax disclosure requirements with regard to standards issued between February 2021 and May 2024, including IFRS 18, Changes to Supplier Financing Arrangements, international tax reforms and adjustments to IAS 21 and IFRS 9/7. The aim is to further reduce reporting burden without compromising inter-group transparency. The changes are applicable for fiscal years starting on or after January 1, 2027; early application is permitted. EU endorsement is pending.

Annual Improvements to IFRS – Volume 11

On July 18, 2024 the IASB published Volume 11 of its Annual Improvements to IFRS Accounting Standards as part of its regular improvement regime. These minor, non-urgent amendments clarify, simplify and correct inconsistencies in various standards including IFRS1, IFRS7, IFRS9, IFRS10 and IAS7. The changes concern matters including disclosure requirements for derecognition gains, credit risks, transaction prices, lease liability derecognition issues and the determination of a de facto agent. The aim is to increase the IFRS consistency and eliminate unintended contradictions. The improvements are mandatory for fiscal years starting on or after January 1, 2026; early application is permitted. EU endorsement was given on July 9, 2025.

DATA MODUL is studying how the standards, changes and interpretations listed will affect its Consolidated Financial Statements going forward. Management expects that the application of IFRS 18 will affect the consolidated financial statements, particularly regarding presentation of the income statement. Management expects that the application of IFRS 18 will affect the consolidated financial statements, particularly regarding presentation of the income statement.

3. Consolidation

Consolidation standards

All intercompany balances, income and expenses, unrealized gains and losses and dividends from intercompany transactions are fully eliminated in consolidation. The same consolidation methods applied as in the previous year were again applied without change.

Foreign currency translation

The Consolidated Financial Statements are prepared in euros, the functional currency of the parent company. The functional currency of foreign entities is determined by the primary economic environment in which these entities independently operate with respect to financial, economic and organizational considerations, and in which they predominantly earn and use their cash and cash equivalents. The functional currency of DATA MODUL Group subsidiaries is the respective local currency. The financial statement items of every subsidiary are recorded in the functional currency. Foreign currency transactions are first translated into the functional currency applying the transaction rate.

The Consolidated Financial Statements comprise the separate financial statements of DATA MODUL AG and its subsidiaries as of December 31, 2025, prepared using the accounting and measurement methods applied uniformly throughout the Group. Subsidiaries whose finance and business policies DATA MODUL AG is capable of directly or indirectly influencing to derive benefit from their activities are fully consolidated. Companies are deconsolidated when the subsidiary is no longer controlled by the parent company. ration, the date of the transaction is the date of initial recognition of the non-monetary asset or liability arising from the advance payment. Assets, including goodwill, and liabilities of subsidiaries whose functional currency is not the euro are translated into euros applying the exchange rate at the reporting date; income statement items are translated applying annual average exchange rates.

Monetary foreign currency assets and liabilities are translated into the functional currency applying the spot rate at the balance sheet date. Exchange gains or losses resulting from such currency translation are recorded in profit or loss under selling and general administrative expenses.

This does not include translation differences from a net investment in a foreign entity. These differences are recorded under other comprehensive income until the net investment is sold or partially or fully repaid; the cumulative full or partial amount is only reclassified to the profit and loss account upon its disposal or full or partial repayment. Taxes on such translation differences are likewise directly recorded in other comprehensive income.

Non-monetary Consolidated Balance Sheet items in foreign currency are carried at historical exchange rates. To determine the exchange rate applied for initial recognition of the associated asset, expense or income when derecognizing a non-monetary asset or liability arising from prepaid conside-

Any differences arising from the translation of the income statement at annual average exchange rates and of the balance sheet at period closing rates, or resulting from currency translation of asset and liability values versus the previous year, are recorded under equity as other comprehensive income in "Other reserves", with no effect on the income statement. Exchange gains or losses resulting from currency translation of equity items at historical or reporting-date rates were also recorded under "Other reserves". These accumulated translation differences are recorded in profit or loss at the date on which the Group company ceases to be part of the Group.

Exchange rate trends for the major currencies included in the Consolidated Financial Statements as related to the euro are as follows:

Exchange rate	12/31/2025 Statement of financial position	P&L	12/31/2024 Statement of financial position	P&L
EUR / USD	1.1748	1.1312	1.0411	1.0808
EUR / GBP		0.8732 0.8568		0.8303 0.8450
EUR / SGD	1.5102	1.4767	1.4191	1.4454
EUR / CNY	8.2511	8.0711	7.5006	7.6925
EUR / HKD		9.1447 8.8209	8.0851	8.4315
EUR / JPY	183.9700 169.4842		163.2500 163.9958
EUR / PLN	4.2200	4.2373		4.2710 4.3022

Scope of consolidation

Pursuant to IFRS 10, the Consolidated Financial Statements incorporate DATA MODUL AG and all its subsidiaries which DATA MODUL AG has a controlling influence.

The Consolidated Financial Statements as of December 31, 2025 include the following subsidiaries (no change):

Company name, registered office	Shareholding in %
DATA MODUL Weikersheim GmbH, Weikersheim, Germany	100
DATA MODUL France SARL, Paris, France	100
DATA MODUL Iberia S.L., Madrid, Spain	100
DATA MODUL Inc., New York, USA	100
DATA MODUL Italia S.r.l., Bozen, Italy	100
DATA MODUL Ltd., Cannock, United Kingdom	100
DATA MODUL Hong Kong Ltd., Hong Kong, China	100
DATA MODUL Electronic Technology (Shanghai) Co., Ltd., Shanghai, China	100
Conrac Asia Display Products PTE Ltd., Singapore	100
DATA MODUL Polska Sp. z o.o, Lublin, Poland	100

For fiscal year 2025 the domestic subsidiary DATA MODUL Weikersheim GmbH utilized all available exemptions per Section 264 (3) of the German Commercial Code (HGB).

4. Recognition and measurement methods

Significant judgments, estimates and assumptions

Preparation of the Consolidated Financial Statements pursuant to IFRS requires management to make judgments and assumptions as well as estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the balance sheet date and the reported amounts of revenue and expenses during the reporting period. The Executive Board believes that the assumptions and estimates made are appropriate. Actual results may differ from these estimates and assumptions. The primary areas in which judgments and estimates are made concern the impairment of goodwill and other non-financial assets, valuation of inventories, provisions for bad debts, measurement of financial instruments at fair value, capitalization of development expenses and recognition of deferred tax assets. Judgments and estimates are also in connection with IFRS 15, Revenue From Contracts With Customers, and IFRS 16, Leases. Any change in these discretionary judgments could have a material adverse effect on the Company's financial position, results of operations and cash flows.

Where relevant, significant uncertainty factors—connected for example with conflicts in Ukraine and the Middle East and potential negative impact from trade and customs policy measures – have been taken into account in the estimates and discretionary decisions made. Further information on developments in and challenges facing the German mechanical engineering and electro and digital industries, and on inflation rates and interest rate cuts, is presented in the relevant chapters of the Notes to the Consolidated Financial Statements and in the Group Management Report.

The most significant future-relevant assumptions, other main causes of estimation uncertainty extant as of the balance sheet date and discretionary judgments made which entail a significant risk of having to materially adjust the carrying amount of assets and liabilities are discussed below.

Impairment of goodwill and other non-financial assets

An impairment loss is recorded when the carrying value of an asset or cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the greater of its fair value less costs of disposal and value in use. The discounted cash flow method is used to calculate value in use. Measurement is based on medium-term corporate planning applying market and companyrelated discount rates, as well as projected growth rates and exchange rates. The assumptions made in this respect may be subject to changes which could result in impairment losses on those assets in future periods.

Carrying of deferred tax assets

Deferred taxes are calculated applying the tax rates of the

existing project management model. To determine capitaliz-

individual countries (tax rates in effect or announced as of the reporting date) at the date at which the assets are realized or the liability settled, and on the estimates of the Group companies' future ability to generate taxable income. Any tax rate changes or any deviation of actual taxable income from estimates could result in deferred tax assets not being realized. When determining the amount of the deferred tax asset, management must exercise a substantial amount of discretion in estimating the amount and timing of future taxable income, as well as future tax strategies. Inventories Impairment losses recorded on inventories are measured based on the saleability classes for unrestricted inventory or on expected realizable net income (expected sale price less estimated completion costs and estimated selling expenses). Future consumption, actual income and outstanding costs could differ from the expected amounts. The first in, first out (FIFO) method is applied in measuring identical inventory assets, i.e. those inventories are deemed sold first which were recognized first as inventory, before items recognized as inventory at a later point in time. Development costs The initial recognition of development costs is done in accordance with IAS 38.57, and is based in particular on the management's opinion that technical and economic feasibility is given; this is generally the case when a development project reaches a certain milestone within the framework of an gation) or whether it is closely connected with subsequent serial production, thus representing a fulfillment activity for such production (rather than a discrete performance obligation). A number of factors are to be considered in making this assessment. All such factors are taken into account as time of signing of the development and serial production contracts, handover of work results and the customer's interest in independently using and right to use the development results. Upon weighing all of the relevant facts and circumstances in a given case, the decision will in many cases involve a certain degree of discretion, even if a uniform group-wide evaluation procedure is employed. In general, customer-specific development projects conducted by DATA MODUL are classifiable as a fulfillment activity for serial production of the respective end product, despite a sometimes large degree of complexity of the work required, because the development results are not handed over to the customer—even if the customer pays for the development work separately. If work results from a particular development stage are handed over, the customer still cannot have the product serially manufactured by any other manufacturer using those development work results. Development-related costs are deferred as costs to fulfill a contract and amortized straight-line over the term required for the projected sales volume of serial products, starting on the commencement date of production of the end product. The term is estimated based on the agreement in place with the customer, potentially adjusted to reflect on own experience and expectations. Changes in Management estimates may result in differences regarding the amount and timing of expenditures in subsequent periods.

able amounts management makes assumptions concerning the amount of the cash flows expected to be generated by the assets in question, the discount rate to be applied and the period in which the assets are expected to generate future cash flows. Significant adjustments could become necessary if certain expectations are not realized and a value adjustment is then required. Revenue from contracts with customers Estimates and discretionary judgments are made regarding the recognition of revenue from development services provided in connection with customer-specific development projects1) and the associated capitalization of costs to fulfill a contract and their amortization. The first step required is to verify whether the development work constitutes a good or service identifiable as discrete (discrete performance obli-11) This involves the development of complex customer-specific sys-In the next step, it must be reviewed whether the performance obligation identified in the contract with the customer for serial production of the end product exists over a defined period of time or at a specific point in time. Fulfillment of a performance obligation over a defined period of time is only in evidence if DATA MODUL creates an asset which does not have any possible alternative uses and is entitled to payment for the work already performed (cost plus an appropriate profit margin). DATA MODUL reviews all relevant facts and circumstances in a given case and then makes a decision as to the period over which revenue would be recognizable, which can involve a degree of discretion. Serial production generally relates to a point in time as a performance obligation. Revenue is therefore generally recognized upon delivery of the serially manufactured products. The general assumption is applied that disposal over the goods passes to the customer upon delivery, excepting individual contracts with consignment stock customers.

tem solutions and adaptation of existing standard products to meet individual design and functionality requirements.

As a rule, revenue is recognized at the point in time when the customer removes the goods from the consignment warehouse. For consignment warehouse customers under contracts requiring the delivery of customer-specific items subject to a legally binding acceptance obligation, revenue is recognized at the time of delivery to the consignment warehouse. All facts and circumstances are reviewed which are relevant to the case at hand in order to make a decision, which involves a certain degree of discretion. Indicators taken into consideration include current claims to payments, significant risks and opportunities, customer acceptance clauses, property rights and physical possession of the customer-specific items.

Measuring deferred revenue for extended warranties also involves discretionary decision-making and estimates. DATA MODUL exercises discretion in measuring the consideration we are likely to receive in exchange for granting warranty to a customer. The transaction price is determined on a percentage basis determined by Management. In exercising such discretion, DATA MODUL takes into account previous experiences had with the customer in question and factors beyond the scope of the relationship with the individual customer. Revenue is distributed over the contractually agreed extended warranty period starting from the effective date. Costs connected with the warranty are generally distributed evenly, and benefits for the customer are also distributed evenly over the contractually agreed term due to the nature of the warranty obligation, thus Management has decided to recognize revenue in linear form, accordingly. Changes to the above assumptions can affect the recording of revenue in future periods.

Leases

The Group determines the lease term based on the nonterminatable base term plus possible periods under a lease extension option as long as it is reasonably certain that the option will be exercised, or taking into consideration periods resulting from a lease termination option if it is reasonably certain that the Group will not exercise that option. DATA MODUL has concluded several lease contracts which have extension and termination options, and makes discretionary judgments in assessing whether there is sufficient certainty that the lease extension or termination option will or will not be exercised. This means that all relevant factors are considered which represent an economic incentive to exercise the renewal or termination option. DATA MODUL reassesses the lease term after the commencement date in case of a significant event or change in circumstances. For the lease term of buildings, the extension option was taken

into account in most cases because lease extension option is usually exercised with such contracts. This assumption is based on Management's current position that no shifting production or distribution to different facilities is planned for the near future. Motor vehicle lease renewal options are not included in the lease term because the Group generally leases vehicles for a maximum of three years, and therefore typically does not exercise a renewal option.

Additionally, periods following a termination option are only factored in as part of the lease term if it is reasonably certain that the termination option will not be exercised.

See Note [10], Leases, for details regarding potential future lease payments for periods after the exercise date of extension and termination options which were not factored into the lease term.

DATA MODUL cannot determine the interest rate implicit in the lease without additional information. The incremental borrowing rate is thus applied to measure lease liabilities. The incremental borrowing rate is the interest rate which the Company would pay if borrowing funds over a comparable term in a comparable economic environment for an asset of a value comparable to the right of use. The incremental borrowing rate has to be estimated if a monitorable interest rate cannot be referenced (e.g. for subsidiaries which do not conclude financing transactions). DATA MODUL estimates the incremental borrowing rate based on available, monitorable input factors (such as market interest rates), and has to make certain company-specific estimates (regarding for example any company-specific premium for credit and country risks).

Revenue from contracts with customers and costs to fulfill a contract

In accordance with IFRS 15, Revenue from Contracts with Customers, revenue is recognized when the disposal over specifiable goods or services is transferred to the customer, i.e. when the customer is capable of determining usage of the transferred goods or services and of deriving most of the residual benefit of these. The conditions for this include that a contract with enforceable rights and obligations must be in place and receipt of the consideration must be probable in view of the customer's credit standing. Revenue deductions resulting from rebates, cash discounts or bonuses, as well as sales tax and other charges are offset against revenues.

Revenue from customer-specific development projects is recognized based on a case-by-case assessment depending on the contractual agreement in place with the customer (see Compensation payable by the customer for development work represents a non-reimbursable upfront fee as payment for the activities necessary for fulfillment of the contract (in this case: development work). Because development work is not a performance obligation, this fee must be allocated to those goods which have been identified as a separate performance obligation (in this case: delivery of the end product). Revenue is then realized over the term of the contractual or expected sales volume as an increase in the corresponding unit price.

Note 4, Accounting and valuation methods, including particularly significant discretionary decisions, estimates and assumptions). Development work is generally not a performance obligation but rather a necessary fulfillment activity leading to the serial production contract. Through development work, products are modified to meet customer requirements, which can be of a highly specific nature, but the development results are not transferred to the customer because the customer is solely interested in the end product which has been modified to meet his requirements. A transaction price is thus generally not referenceable to customer-specific development work, thus revenue is not recorded for it. The conditions for capitalization as costs to fulfill a contract are met because development work is performed under a concluded or an anticipated customer contract, lead to the creation or improvement of resources of DATA MODUL and compensation for the costs incurred for such under the serial production contract has either been explicitly agreed with the customer or at a minimum is expected. The conditions for period-specific revenue recognition per IFRS 15 are not met in most cases, thus development costs accruing for product customizing are capitalized as costs to fulfill a contract and recorded as production expenses under cost of sales when the products are sold. These expenses are generally recorded with straight-line amortization over the term required for the contractual or expected sales volume. If a contract involves multiple specifiable goods or services, the transaction price is distributed across the performance obligations on the basis of the relative individual sale prices. If individual sale prices are not directly observable, a reasonable price estimate is made (see Note 4, Accounting and valuation methods, including particularly significant judgments, estimates and assumptions). Revenues from each performance obligation are either recognized at a specific point in time or during a specific period. Period-specific revenue recognition is required if the customer realizes ongoing benefit from the work products of DATA MODUL and simultaneously consumes these, if DATA MODUL creates or processes an asset controlled by the customer or if DATA MODUL creates an asset without alternative usages for its own benefit and is legally entitled to payment for the products/services provided. Invoices are issued in accordance with the contractual terms. The payment terms generally require payment within 30 days of invoicing. In line with IFRS 15, transactions are reviewed to identify deferrable commitments so as to accurately reflect the economic content of the transaction. Extended warranties gran-

Regarding DATA MODUL's consignment customers, revenues are are always recognized at the time of customer retrieval of the goods from the consignment warehouse. However, revenues from consignment customers whose contracts provide for customer-specific products under a purchase obligation are already recognized at the time of delivery to the consignment warehouse and recorded as contract assets (see Note 4, Accounting and valuation methods, including particularly significant judgments, estimates and assumptions).

ted to customers have been classified as deferred commitments and recognized accordingly as deferred revenue on the balance sheet, requiring estimates to be made for allocation of the transaction price for these (see Note 4, Accounting and valuation methods, including particularly significant judgments, estimates and assumptions). An extended warranty is in evidence if warranty is granted beyond the statutory warranty period. Deferred revenue is reported as current or non-current contract liabilities in accordance the period of its realization.

Advance payments from customers are usually short-term in horizon, thus they do not entail a significant financing component. These are likewise shown as a contract liability.

Expenses

Operating expenses are recorded in profit or loss either at the point in time of service utilization or at the point in time when they are incurred, applying the principle of accrual accounting.

Intangible assets

Intangible assets that were not acquired in the course of business combinations are initially recognized at cost or cost of sales. In subsequent periods, intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. With the exception of goodwill, intangible assets with a definite useful life are amortized as scheduled. Estimated useful life and remaining useful life are reviewed annually, as well as the method of depreciation. Useful life periods are adjusted for future periods as necessary when the underlying assumptions change. Such adjustments made due to a changed expectation of useful life or use of a different amortization method are treated as a change in estimates. Amortization of intangible assets with finite lives is recorded in the appropriate expense item of the income statement that reflects the purpose of the asset. Intangible assets with indefinite useful lives are not amortized; however, they are subject to an impairment test at least once every year or if there is any indication that either the asset or the cash-generating unit are impaired.

Intangible assets (except for goodwill) include purchased software and capitalized development costs. Purchased software is capitalized and amortized over the estimated useful life of three to five years using the straight-line method.

Pursuant to IAS 38 (Intangible Assets), research and development costs must be treated separately. Research is defined as independent investigations conducted according to plan with the aim of acquiring new scientific or technical knowledge or insights. Development is defined as the technical/technological implementation of research findings for commercial purposes. Pursuant to IAS 38, development costs must be capitalized if certain criteria are met, while research costs must be expensed in the period in which they are incurred. Development costs must be capitalized as intangible assets when it is more likely than not that the development activities will result in future cash flows and the economic benefits embodied in those cash flows will exceed the development costs. In addition, the development project concerned must be technically feasible, the technical and financial resources necessary to complete the project must be available and project-related costs incurred during development must be reliably measurable.

Capitalized development costs are amortized on a straightline basis over a useful-life period of 1 - 5 years depending on the respectively realizable revenue, beginning upon completion of the development phase and the time when the product is mature, i.e. ready for serial manufacturing. The intrinsic value of the development project is reviewed annually. Impairment losses on development projects recognized as intangible assets are presented in the income statement as production costs.

Goodwill

Goodwill incurred during a company combination is recorded in accordance with IFRS 3 as the difference between the value of the transferred compensation at the time of acquisition and the identifiable assets and liabilities of the acquired company as measured in accordance with IFRS 3. Goodwill is subsequently measured at cost less cumulative impairment losses. The value assigned to goodwill is reviewed annually (as of December 31). This value is also reviewed if circumstances indicate that impairment may have occurred.

The impairment is measured based on the recoverable amount of the cash generating entity to which the goodwill was allocated. If the realizable amount from the cash-generating unit is less than the carrying amount of that unit, an impairment loss is recorded. Impairment losses recorded on goodwill may not be reversed in future periods.

Property, plant and equipment

Property, plant and equipment is carried at acquisition or construction cost less cumulative scheduled depreciation and cumulative impairments. In addition to the purchase price and the directly attributable costs for bringing the asset to the location and in a state ready for operation as intended by management, cost includes estimated costs for the demolition of the asset, as well as restoration of the location where the asset was situated. Maintenance and repair costs are expensed as incurred. Scheduled depreciation is recorded pro rata using the straight-line method and attributed to the individual functional areas. The depreciation period corresponds to the estimated economic life. Estimated useful life is 3 years for computer hardware, 5 to 10 years for machinery, office equipment and leasehold improvements, and up to 25 years for buildings.

The useful lives and the depreciation method for property, plant and equipment are reviewed periodically and adjusted as necessary to ensure that the depreciation period and method reflect the expected economic benefits embodied in the asset. If the estimates deviate from the previously made assumptions, the respective changes are recorded as 'changes in estimates' per IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors). Impairments expected to last longer than the period of consumption of economic value through usage are recorded in line with IAS 36 (Impairment of Assets) when the recoverable amount of the asset falls below amortized cost. The recoverable amount is the higher of net realizable value and the value in use of the asset. If there are no longer any reasons for impairment losses recorded in previous years, impairment losses are reversed up to the recoverable amount or amortized cost, irrespective of past impairments recorded.

Inventories

Inventories are carried at the lower of cost or net realizable value. Item cost is primarily determined using the FIFO method. The cost of inventories includes the purchase price, import duties and other taxes, transport and processing costs and other costs directly attributable to the purchase. Discounts, rebates and similar amounts are deducted when calculating purchase cost.

In addition to attributable direct costs, cost of sales includes appropriate material and production overheads to the extent that these relate to production of the items. The net realizable value is the estimated sale price realizable in regular business operations less estimated costs of completion and estimated selling expenses.

Unrestricted inventories are carried at a discounted net sales value as necessary to reflect saleability, reduced usability and other inventory risks. If the reasons for impairment losses recorded on inventories no longer exist, impairment losses are reversed accordingly.

The historical cost and cumulative depreciation of assets that are sold or scrapped are derecognized. Fully depreciated non-current assets are shown at cost less cumulative depreciation until they are decommissioned. Gains and losses from the disposal of fixed assets are recorded in the respective cost accounts. percentages vary based on days overdue and any relevant information indicating potential credit losses expectable in future. Cash and cash equivalents

Contract assets and liabilities, receivables

If one party to the contract with the customer has fulfilled its contractual obligations, a contract asset, contract liability or receivable is recognized depending on the relation between service provision and the customer's payment. Receivables are recognized if the claim to receive the consideration is no longer in any way conditional.

Claims arising from performance by DATA MODUL for customers are generally reported as trade receivables. However, claims against consignment customers whose contracts provide for customer-specific products under a purchase obligation are shown as contract assets on the statement of financial position if the items have not been removed from the consignment warehouse. These are reported as current because they accrue within the ordinary business cycle.

Impairments on contract assets and receivables recorded to reflect credit risk exposures are measured using the method for financial assets at measured amortized cost. The Group utilizes an impairment matrix to calculate expected credit losses on trade receivables and contract assets. Impairment

Cash and cash equivalents include cash on hand, bank deposits available on call and other current, highly liquid financial assets not subject to any disposal limitations which have a maximum maturity of three months at the time of acquisition are carried at cost.

Impairment of intangible assets (excluding goodwill) and property, plant and equipment

The carrying amounts of intangible assets and of property, plant and equipment are subject to impairment testing on each balance sheet date, and whenever there are indications of potential impairment in accordance with IAS 36 (Impairment of Assets). To the extent the value of intangible assets or property, plant and equipment as determined according to the principles above falls below the recoverable amount at the balance sheet date, impairment losses are recorded on the carrying amount of the assets. The recoverable amount is the higher of the fair value less selling costs of the asset and value in use. Impairment losses are reversed up to the amortized cost if the reason for their recording no longer applies.

Embedded derivatives

Derivatives embedded in non-financial host contracts which are linked to financial liabilities are accounted for separately and measured at fair value (FVPL) if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated as held at fair value through profit or loss.

Financial instruments

A financial instrument is a contract under which a financial asset is created at one company and a financial liability or an equity instrument at another company.

The assets are classified upon initial recognition; subsequent recognition is based on the classification upon initial recognition. Financial assets are classified upon initial recognition in line with IFRS 9 (Financial Instruments) as follows:

Financial assets measured at amortized cost DATA MODUL carries financial assets which are debt instruments at amortized cost when the following two conditions are met:

• The financial asset is held under a business model the objective of which is to hold financial assets in order to realize contractual cash flows, and
• the contractual terms of the financial asset give rise to cash flows at fixed times which exclusively represent principal redemption and interest payments on the outstanding capital amount.

In subsequent periods, financial assets measured at amortized cost are measured applying the effective interest method and are subject to impairment testing. Gains and losses are recorded in profit or loss when the asset is derecognized, modified or impaired.

The financial assets measured at amortized cost held by Group include trade receivables, other financial assets and cash and cash equivalents.

Financial assets measured at fair value through other comprehensive income

The Group measures debt instruments at fair value through other comprehensive income if the following two conditions are met:

• The financial asset is held under a business model the objectives of which are to realize contractual cash flows and sell the financial assets, and
• the contractual terms of the financial asset give rise to cash flows at fixed times which exclusively represent principal redemption and interest payments on the outstanding capital amount; both collection of contractual cash flows and from sales of financial assets.

For debt instruments measured at fair value through other comprehensive income, interest income, remeasurements of foreign exchange gains and losses, impairment losses and impairment loss reversals are recorded on the income statement and their amount calculated as for financial assets measured at amortized cost. The remaining changes in fair value are recorded in other comprehensive income. Upon derecognition, the cumulative gain or loss from changes in fair value recorded in other comprehensive income is reclassified to profit or loss. As of December 31, 2025, no financial assets were held which are recognized in other comprehensive income at fair value.

Financial assets measured at fair value through profit or loss

Financial assets measured at fair value through profit or loss include financial assets held for trading, financial assets designated at fair value through profit or loss upon initial recognition and financial assets which are required to be measured at fair value.

Financial assets are classified as held for trading which are acquired for the purposes of sale or repurchase in the near future. Derivatives, including separately recognized embedded derivatives, are classified as measured at fair value through profit or loss, except for derivatives which are designated as and effectively are hedging instruments.

Financial assets that do not meet the criteria for classification to the business models of AC or HFVOCI are classified as FVPL. Financial assets measured at fair value through profit or loss are carried at fair value on the balance sheet, and changes in fair value are shown on the income statement.

Impairment of financial assets

IFRS 9 governs accounting for impairment losses on financial assets. Accordingly, an impairment model for projected credit losses must be applied to all financial assets (debt instruments) that are measured at either amortized cost or at fair value through comprehensive income.

The expected credit losses method is a three-stage approach to allocating impairments:

Stage 1: Expected credit losses within the next 12 months

Stage 1 is comprised of all financial instruments which have not seen a significant increase in credit risk since initial recording; this will typically include new financial instruments and contracts with payments less than 31 days past due. The portion of the expected credit losses over the term of the instrument which results from a default within the next twelve months is recorded.

Stage 2: Expected credit losses over the entire term credit quality not impacted

Financial assets that have become subject to a significant credit risk increase are classified to stage 2. Impairment losses are recorded for expected credit losses over the entire term of the financial asset.

Stage 3: Expected credit losses over the entire term credit quality is impacted

If the credit quality of a financial asset is impacted or it is in default, it is classified to stage 3.

Instruments at risk of default are classified to stage 3. An asset is considered at risk if one or more events have occurred which adversely affect estimated future cash flows from the financial asset (e.g., significant financial trouble, default, late payment or similar breach of contract).

The simplified method is applied for trade receivables and contract assets, which means these receivables are already classified to stage 2 upon initial recognition (carried at AC applying impairment matrix). Accordingly, there is no need to assess whether there has been a significant heightening of credit risk over the credit term.

DATA MODUL applies the exception option to stage classification for financial assets with low credit when debt instruments are concerned which are rated as investment grade. These are always classified as stage 1 debt. This applies to any credit balances with banks which had an investment grade rating and a short-term maturity throughout all of fiscal year 2025.

Impairment losses are recorded for expected credit losses over the entire term of the financial asset. Objective indications that the credit quality of a financial asset is impacted include payments being 91 days overdue and other information indicative of significant financial difficulties on the part of the debtor. The determination of whether a financial asset has incurred significantly heightened credit risk is made on the basis of a quarterly assessment of default probability in which both Foreign currency derivatives linked with financial liabilities and assets and which are embedded in non-financial host contracts are accounted for separately and measured at fair value (FVPL). Additionally, DATA MODUL regularly reviews whether there is a need to utilize derivative financial instruments to hedge interest rate and foreign exchange risks. As of the balance sheet date of December 31, 2025 there were no outstanding contractual agreements for hedging interest rate or foreign currency risk, nor in the previous year.

In stages 1 and 2, effective interest income is calculated based on gross book value. As soon as the credit quality of a financial asset is impacted and it is classified to stage 3, the effective interest income is calculated based on net book value (gross book value less risk provisioning).

external rating information and internal information about the credit quality of the financial asset are taken into account. Derecognition of financial assets

DATA MODUL Group holds a credit insurance policy to minimize risk of losses from doubtful accounts. In case of payment default, the credit insurance covers 90% of losses incurred within six months of the default date. The deductible amount remained unchanged versus the previous year

at 10%. To further minimize potential losses, the Company performs credit checks on new customers before accepting orders.

Derivative financial instruments

Expected credit losses are calculated as the probabilityweighted present value of all defaults over the expected term of the financial asset. A receivable is considered a bad debt when there is no longer any prospect of claim fulfillment, which is particularly the case when the debtor has filed for insolvency. loans and liabilities are shown after deduction of directly attributable transaction costs. The Group's financial liabilities include trade payables, other liabilities and liabilities due to financial institutions, including overdrafts.

A financial asset is derecognized when one of the following criteria has been met:

• contractual rights to receive cash flows from a financial asset have expired, or
• the Group has transferred its contractual rights to receive cash flows from the financial asset to a third party or assumed a contractual obligation to immediately pay out the received cash flow to a third party, thereby either having essentially transferred all risks and rewards associated with the ownership of the financial asset, or having neither transferred nor withheld essentially all risks and rewards arising pertaining to the ownership of the financial asset but transferred rights of disposal over the asset.

Offsetting/netting

Financial assets and financial liabilities are generally not netted. These are only netted if the Company has the right to offset the amounts at the current point in time and intends to settle the respective asset or liability by netting out.

Financial liabilities

All financial liabilities are initially measured at fair value, and

The subsequent measurement of financial liabilities depends on their classification, as follows:

Financial liabilities measured at fair value through profit or loss

Included in this category are derivative financial instrument contracts entered into by the Group which are not designated as hedging instruments in hedge accounting in accordance with IFRS 9.

Financial liabilities held at fair value through profit or loss are classified at the time of initial recognition if the criteria per IFRS 9 are met. As of the reporting date DATA MODUL did not have any financial liabilities classified as measured at fair value through profit or loss, except for foreign currency derivatives.

Financial liabilities measured at amortized cost

This category is of the greatest significance for the DATA MODUL Consolidated Financial Statements. Following initial recognition, interest-bearing loans are measured at amortized cost applying the effective interest method. Gains and losses are recognized in profit or loss when the liabilities are derecognized, also through amortization applying the effective interest method.

Derecognition of financial assets

A financial liability is derecognized when the underlying commitment has been fulfilled, canceled or extinguished for other reasons.

Risks resulting from the Company's financial instruments

DATA MODUL has various other financial assets and liabilities such as trade receivables and trade payables that directly result from its business operations. The primary risks connected with financial instruments held by DATA MODUL are liquidity risk, interest rate risk, currency risk and bad debt risk. The Executive Board reviews and adopts policies for managing these individual risks which are outlined below.

Interest rate risk

Interest rate risk is the risk of the fair value or future cash flows of a financial instrument fluctuating due to changes in market interest rates. Risk of market interest rate fluctuation to which the Group is exposed is primarily connected with long-term variable-rate loans. The credit facilities available for financing our global business operations are in part subject to interest rate risks. The Group manages its interest rate risk by taking out exclusively short-term loans at fixed interest rates. The Company held no interest-bearing loans as of December 31, 2025.

Foreign currency risk

DATA MODUL conducts a substantial portion of its business in US dollars, thus fluctuations in the US dollar/euro exchange rate could significantly impact DATA MODUL's balance sheet and earnings. The Group also makes transactions in PLN, CNY, HKD and JPY. The Company also has exposure to currency risks in its business transactions. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit's functional currency. Approximately 46.9% (previous year: 48.3%) of revenue and 63.2% (previous year: 56.7%) of costs are denominated in the functional currency of the respective unit.

Default risk

DATA MODUL trades only with customers having a good credit standing. It is the Company's policy that all customers who wish to trade on credit terms are subject to credit checks. Trade receivables balances are constantly monitored and allowances made for known and anticipated value adjustment risks. Otherwise there are no significant default risks within the credit term connected with ongoing business activities. For additional minimization of risks related to bad debt, the Company has purchased credit insurance for some of its operations. In respect to other customers that are not covered by such insurance policies, their credit standing is assessed, special terms of payment and payment guaranties are agreed upon and securities or collaterals are stipulated.

Liquidity risk

DATA MODUL's objective is to maintain a balance between the continuity of funding and flexibility by way of current account credits, bank loans, finance leases and hire purchase contracts. A short-cycle cash management program is utilized Company-wide as the basis for financial strategy and liquidity decision-making that involves rolling liquidity forecasting, analysis of strategic financial requirements using 1-year and 3-year projections and close cooperation with external banks and investors on that basis regarding the reviewing and adjustment of lines of credit.

Pensions and non-current personnel liabilities

Non-current personnel liabilities include long-term bonus claims and pension payment obligations to employees of DATA MODUL.

DATA MODUL measures payment claims applying the projected unit credit method, which calculates the actuarial present value of accrued credits. The provision amount is measured applying the net interest method, in which the net defined benefit pension liability (net asset value) recorded on the balance sheet is multiplied by the discount rate applied

Provisions

Provisions are recorded when – due to a past event – the Company incurs a current legal or constructive obligation towards a third party, the outflow of resources embodying economic benefits in order to settle the obligation is probable, and the amount can be estimated reliably. If a reimbursement is expected to be paid, at least in part, for a provision recorded under liabilities (e.g. liabilities under an insurance policy), the reimbursement is classified as a separate asset if there is a high probability of reimbursement occurring. The expense for the recorded provision is shown on the income statement less any reimbursement. If the obligations fall due within more than one year and payment can be reliably estimated in terms of both amount and timing, the non-current portion of the obligation is measured at present value if the corresponding interest effect is material. Net present value is determined based on market interest rates commensurate with risk and the period until the settlement of the obligation. In case of discounting, the increase in the provision due to the passage of time is recorded as interest expense in the financial result.

in measuring the defined benefit obligation (DBO). Expected changes in the net liability (or net asset) during the year due to contributions and pension benefit payments are to be factored in. This net interest component replaces interest expense from applying an interest rate to the pension obligation and the projected return on plan assets. Revaluation effects connected with pension commitments such as actuarial gains and losses and any differences between actual return and the return on plan assets implicitly recognized in other net interest income are immediately recorded in equity as "Other comprehensive income". The amount of obligations for pension plans is calculated applying an annual actuarial report based on biometric parameters and current market interest rates. There sole existing individual obligations are to a former Executive Board member, the wife of a former Executive Board member and three former senior employees. Personnel provisions are allocated for existing claims of employees against DATA MODUL. These include premiums, commissions, performance bonuses, severance, travel expenses, vacation and Christmas supplements and accrued vacation and overtime. Other provisions Other provisions consist primarily of outstanding invoices for auditing of the consolidated and separate financial statements, tax accounting services and other services not yet billed including transport, provision of temporary staff and services to be expensed in fiscal year 2025. Income taxes

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Provisions for warranty obligations

DATA MODUL provides the typical statutory warranties for remedying of defects extant at the time of sale. These assurance-type warranties are recorded in accordance with IAS 37. Provisions for warranties related to delivered products are recorded in the amount required for meeting legal requirements. Provisions are reversed upon expiration or elapsing of the respective guarantee obligation.

Personnel provisions

Taxes on income and earnings comprise all actual taxes on current taxable income of the consolidated subsidiaries under the tax laws applicable in the respective countries, as well as deferred taxes. The current tax assets and liabilities for the current and previous periods are measured at the expected amount of refund from or payment to the tax authorities. The local tax rate and tax laws applicable at the balance sheet date are used as a basis to determine this amount. Management regularly assesses individual tax issues to determine whether there room for interpretation under the applicable tax regulations in question. Tax liabilities are recognized as necessary.

Unless the initial recognition exemption applies or there are outside basis differences for subsidiaries, deferred tax assets and liabilities are reported applying the liability method as per IAS 12 (Taxes on Income) for temporary differences between carrying amounts in individual companies' tax reporting and carrying amounts shown on the Consolidated Financial Statements applying IFRS, and these are also factored in with regard to specific consolidation measures.

Deferred tax assets and deferred tax liabilities are measured based on the tax rate expected to be applicable in the period in which the temporary differences are expected to be reversed. The applicable or announced tax rates at the balance sheet date are used for this purpose. Deferred taxes that are directly related to equity items are also recorded directly in equity without any effect on profit or loss. Deferred tax assets and liabilities may be offset if and when the Group has an enforceable claim to offset the current tax assets against actual tax liabilities, and which are attributable to income taxes of the same taxable unit, and are imposed by the same tax authority.

Contingent liabilities and contingent assets

Pursuant to IAS 37 (Provisions, Contingent Liabilities and Contingent Assets), contingent liabilities are not recorded on the balance sheet. Contingent liabilities are potential obligations whose actual existence depends on the occurrence of one or more uncertain future events which are not entirely within the Company's control. In addition, contingent liabilities are existing obligations that will probably not result in an outflow of assets, or any outflow of assets cannot be reliably determined. The Notes show all contingent liabilities of the Group, such as bank guarantees, other guarantees, legal proceedings and other financial obligations.

These contingent liabilities are carried at the higher of their nominal value or settlement value. Contingent claims are disclosed in the Notes if an inflow of resources of economic benefit is probable.

Debt

DATA MODUL AG utilizes credit lines, overdraft lines and bank loans to ensure that the Company's liquidity needs are covered at all times and that the Company maintains the necessary flexibility, such as when supply chain problems arise. The fair values of liabilities due to financial institutions do not differ significantly from their carrying amounts, as interest payments on such loans and credit are mostly identical to the current market rates and the loans are short-term in nature. In addition to these credit facilities, DATA MODUL AG has bank guarantees which it can use in lieu of rent deposits or supplier guarantees. The Group has sufficient financing sources at its disposal.

Financial income/expenses

Financial income/expenses includes interest on money market borrowings and income/expenses from derivative financial instruments measured at fair value through profit or loss on embedded foreign currency derivatives separated from the host contract. If the interest effect from discounting is material, provisions are also discounted applying a pre-tax interest rate appropriate for the risks specifically relevant to the liability. In case of discounting, the increase in provisions due to the passage of time is recorded as interest expense.

Leases

The Group assesses at contract commencement whether the contract constitutes or includes a lease. This is the case if the contract grants entitlement to control usage of an identified asset in return for payment of a fee over a defined period of time.

The Group as lessee

The Group utilizes one single model for the recording and measurement of all leases (except short-term leases and leases with a low-value underlying asset). The model is used to record lease payment liabilities and right-of-use assets for the underlying asset.

Right-of-use assets

The Group records right-of-use assets as of the commencement date (i.e. the point in time when the underlying leased asset is available for use). Right-of-use assets are carried at acquisition cost less all cumulative depreciation and cumulative impairment losses, and are adjusted for any revaluation of the lease liabilities. The cost of right-of-use assets includes the recorded lease liabilities, initial direct costs incurred and lease payments made during or before commencement less any leasing incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the projected useful life of the leases, as follows: • Real estate 1 - 10 years

• Motor vehicles 1 3 years

If ownership of the leased asset is transferred to the Group at the end of the lease term or an exercised purchase option is included in cost, depreciation is measured based on the projected useful life of the leased asset. Right-of-use assets are also tested for impairment.

Lease liabilities

The Group records lease liabilities at the present value of the lease payments to be made over the lease term as of the commencement date. 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 or other rate, and amounts expected to be paid under a residual value guarantee. Lease payments also include the purchase option exercise price if it is reasonably certain that the Group will actually exercise the option, and include lease termination penalties if it is taken into account in the term that the Group will exercise the termination option. Variable lease payments not linked to an index or interest rate or other rate are expensed in the period in which the event triggering the payment occurs or triggering condition is met. The Group determines the lease term based on the non-terminatable base lease term plus possible periods under a lease extension option as long as it is reasonably certain that the option will be exercised, or taking into consideration periods resulting from a lease termination option if it is reasonably certain that the Group will not exercise that option. Management has to make significant judgments in assessing whether there is sufficient certainty that renewal and/or In calculating the present value of the lease payments, the Group applies its incremental borrowing rate as of the commencement date because the interest rate implicit in the lease cannot be determined without additional information. The incremental borrowing rate is the interest rate which the Group would pay if borrowing funds over a comparable term in a comparable economic environment for an asset of a value comparable to the right of use. After the commencement date, the lease liability amount is adjusted upward to reflect increased interest expense and downward to reflect the lease payments made. In addition, the carrying amount of lease liabilities is adjusted when there are changes to the lease, including changes in lease term and lease payments (e.g. changes in future lease payment amounts due to a change in the index or interest rate applied to determine the payment amounts), and when there are changes in the evaluation of an option to purchase the underlying asset.

Short-term leases and leases with an underlying lowvalue asset

termination options will be exercised, (see Note 4, Accounting and valuation methods, including particularly significant judgments, estimates and assumptions). 'Contract liabilities' on the statement of financial position. Noncurrent contract liabilities are recorded through profit and loss over the term of serial production of customer-specific development projects, or over the term of the extended warranties.

The Group as lessor

Leases in which the Group does not transfer all material risks and opportunities associated with ownership of an asset are classified as operating leases. Any resulting lease income is recorded over the lease term on a straight-line basis. Initial direct costs incurred to negotiate and conclude an operating lease contract are added to the carrying amount of the leased asset and expensed over the lease term in the same procedure as recognition of lease income. Contingent rent payments are recognized as income in the period in which they are generated.

5. Notes to the Statement of Income

[1] Revenues Concerning the transaction price applied to outstanding performance obligations connected with extended warranties and customer-specific development projects, please refer to

The Group utilizes the exception rule for current lease contracts for real estate and motor vehicles (i.e. leases without purchase option maturing in twelve months or less from the commencement date). The Group also utilizes the exception rule for leases for low-value underlying assets to leases for office equipment classified as low-value. Lease payments for short-term leases and for leases for a low-value underlying asset are expensed over the lease term on a straight-line basis. Revenue declined for DATA MODUL across nearly all industries and regions in fiscal year 2025. The European market excluding Germany was the only exception, where revenue increased, going against the general negative trend. Service revenue proved hardy, increasing slightly year-on-year. As of December 31, 2025, the unrealized transaction price from existing customer contracts amounts to a total of EUR

Revenue is classified by segment in line with the Executive Board's management reporting and realized in either Displays or Systems. Revenue breaks down by segment as follows:

Displays	Systems	Total
126,226	85,429	211,655
375	848	1,223
126,601	86,277	212,878

For fiscal year 2024:
KEUR	Displays	Systems	Total
Revenue from product sales	136,804		88,291 225,095
Service revenue	390	723	1,113
Total revenue	137,194		89,014 226,208

132,569 thousand (previous year: KEUR 141,270). The remaining transaction price will largely be realized within the next twelve months.

[2] Cost of sales

The table below shows a breakdown of cost of sales.

KEUR	2025	2024
Materials expenses	153,861	154,315
Other cost of sales	28,396	29,422
Total cost of sales	182,257	183,737

Other cost of sales is comprised primarily of wages and salaries, and overhead for the manufactured products and services sold. Manufacturing costs in fiscal year 2025 were impacted in particular by the unfavorable EUR-USDexchange rate movement, market entry costs for the new curved product portfolio and higher personnel expenses in connection with internal reorganization. Inventory writedowns in the amount of 3,178 thousand euros (previous year: 2,001 thousand euros) from the change in impairment and from scrapping expenses were likewise recorded under production costs in 2025.

[3] Other operating income

Other operating income in the amount of 43 thousand euros (previous year: 2,082 thousand euros) resulted from the reversal of provisions for bad debts in the amount of 43 thousand euros. Other operating income from the previous year in the amount of 2,082 thousand euros consisted of income from foreign currency revaluation in the amount of 644 thousand euros, insurance benefits in the amount of 1,435 thousand euros and reversed provisions for bad debts in the amount of 3 thousand euros.

[4] Research and development expenses

The Company distinguishes between research expenses and development expenses. Development projects are classified as either product development without a specific customer order, product development with a specific customer order or development of a product to market-readiness in connection with a customer order for a particular product. In addition, general development costs not related to a specific product are recorded as research and development costs. Individual expense items for research and development and their impact on the income statement for the fiscal years 2025 and 2024 are presented below:

Research and development expenses of 6,708 thousand euros were recorded in the profit and loss account (previous year: 6,070 thousand euros). Including order-specific development expenses recorded as cost of sales in the amount of 4,575 thousand euros (previous year: 5,257 thousand euros), the Group's total research and development expenses came to 11,283 thousand euros (previous year: 11,327 thousand euros). The residual carrying amount of capitalized development costs as of the balance sheet date was 1,572 thousand euros (previous year: 2,062 thousand euros). Capitalized costs to fulfill a contract include capitalized development costs to fulfill a contract in the amount of 7,159 thousand euros (previous year: 7,657 thousand euros).

[5] Selling and general administrative expenses

The table below shows selling and general administrative expenses.

KEUR	2025	2024
Selling expenses	17,103	18,104
General administrative expenses	11,754	11,058
Total expenses		28,857 29,162

Total expenses by cost type

Research and development expenses, selling and general administrative expenses and production expenses include personnel expenses, among others. The Company's total expenditure broken down by expense types is shown below.

Personnel expenses

KEUR	2025	2024
Wages and salaries		27,403 27,272
Social security	6,059	5,898
Total	33,462 33,170

Pension expenses of 3,242 thousand euros were recorded for fiscal year 2025 (previous year: 3,108 thousand euros). In fiscal year 2025 the Group employed an average of 528 employees versus an average 531 employees in the previous year. The increase in personnel costs in 2025 was mainly due to one-time staffing-related measures and internal reorganization. The average annual number of employees breaks down by functional area as follows:

Employees by functional area	2025	2024
Sales / Product Management	111	121
Development	67	67
Production	193	189
Service / Quality Assurance	32	30
Administration	55	60
Logistics	42	42
Materials requirement planning/ procurement	28	22
Total	528	531

The number of employees as of the reporting date is shown below broken down by functional area:

Employees by functional area	2025	2024
Sales / Product Management	101	116
Development	68	67
Production	179	180
Service / Quality Assurance	33	33
Administration	53	61
Logistics	45	40
Materials requirement planning/ procurement	29	22
Total	508	519

Significant expense items and depreciation/amortization Other significant expense items were as follows:

KEUR	2025	2024
Depreciation/amortization	4,826	4,766
Legal, consulting and project costs	4,071	3,747
Building costs and maintenance	3,578	3,859
Office and IT expenses	1,870	1,929
Vehicle and travel expenses	1,664	1,843
Packaging and freight costs	1,222	1,262
Advertising and trade shows	1,074	1,143
Insurance premiums	699	774
Other personnel costs	529	645
Addition to provisions for bad debts	53	3
Currency losses	474	0
Miscellaneous costs	1,041	1,199
Total	21,101	21,170

The decrease in the primary expense items shown for fiscal year 2025 down to 21,101 thousand euros (previous year: 21,170 thousand euros) mainly reflects lower building and maintenance costs in the amount of 3,578 thousand euros (previous year: 3,859 thousand euros) and lower vehicle and travel expenses in the amount of 1,664 thousand euros (previous year: 1,843 thousand euros). These effects were partially offset by currency losses in the amount of 474 thousand euros (previous year: 644 thousand euros shown under 'Other operating income') and higher legal, consulting and project costs in the amount of 4,071 thousand euros (previous year: 3,747 thousand euros).

[6] Financial income/expenses

The Company recorded financial income/expenses for the past two years as shown below:

KEUR	2025	2024
Interest and similar income	172	81
Interest expense from lease liabilities	(1,125)	(1,174)
Interest expense on current liabilities	(77)	(169)
Other interest-like expenses	(36)	(37)
Expenses from embedded derivatives	(150)	(48)
Total		(1,216) (1,347)

Income/expense from derivative financial instruments measured at fair value through profit or loss derives from embedded foreign currency derivatives separated from the nonfinancial trade contracts attached to the host contract.

[7] Income taxes

Income tax expense (+) and income (-) break down as outlined below.

KEUR	2025	2024
Current tax expenses
Germany	835	1,440
Foreign	493	1,158
Deferred taxes
Germany	(2,191)	(120)
Foreign	(679)	(81)
Total	(1,542)	2,397

Current tax expenses are taxes on income and earnings for the fiscal year recorded in profit or loss in the individual countries, as well as additional tax assessments and tax refunds for previous years. Deferred taxes result from timing differences between the tax bases of the consolidated companies. The tax rate applicable in the individual countries is used as a basis for calculation of deferred taxes of the foreign operations.

The income tax rate on which computation of German deferred taxes is based was 32.28% for DATA MODUL AG, and 29.13% for DATA MODUL Weikersheim GmbH as of December 31, 2025. The gradual reduction of the corporate tax and solidarity surcharge rates to a maximum 10% and 0.55% respectively has been taken into account, as long as reversal effects only occur in 2028 and years following. Tax rates for 2025 and 2024 are determined as follows:

in %	2025	2024
Corporate income tax	15.00	15.00
Solidarity surcharge	0.825	0.825
Trade tax	16.45 and 13.30 respectively	16.45 and 13.30 respectively
Income tax rate	32.28 and 29.13 respectively	32.28 and 29.13 respectively

The table below shows a reconciliation of projected income tax expense versus actual income tax expense recorded in the Consolidated Financial Statements applying the average German income tax rate of 32.28% for 2025 and 2024.

KEUR		2025 2024
Earnings before taxes reported	(6,118)	7,974
Projected income tax expense		(1,975) 2,574
Non-deductible expenses)	356	394
Tax reductions resulting from tax-free income	(431)	(25)
Difference amount at local tax rates		(69) (490)
Tax expense for foreign operations, foreign/ other tax losses	16	(183)
Taxes from previous years	515	99
Other	45	28
Reported tax expense (+) / tax income (-)		(1,542) 2,397

1) Balance of additions less deductions

As of December 31, 2025 DATA MODUL AG has tax loss carryforwards in the amount of 6,293 thousand euros for corporate income tax and 7,122 thousand euros for trade tax which are usable for tax purposes. The carryforwards are measured applying the corporate income tax rate of 15%, the solidarity surcharge rate of 0.83% and the trade tax rate of 16%, and are shown as deferred tax assets.

The subsidiary DATA MODUL Electronic Technology (Shanghai) Co. Ltd., Shanghai, China, has a tax loss carryforward in the amount of 1,472 thousand euros as of December 31, 2025. The carryforward is measured applying an income tax rate of 25% and shown as a deferred tax asset.

The subsidiary DATA MODUL Inc. (Hauppage), New York, USA, has a usable tax loss carryforward in the amount of 2,187 thousand euros as of December 31, 2025. The carryforward is measured applying an income tax rate of 27% and shown as a deferred tax asset.

Deferred tax assets arising from actuarial gains and losses on pension commitments recorded directly in equity increased equity by 13 thousand euros (previous year: 21 thousand euros). Deferred tax liabilities were not recognized for temporary differences in connection with investments in subsidiaries in the amount of 12,532 thousand euros, as it was not likely that these temporary differences would reverse in the foreseeable future. If this were the case, 5% of those temporary differences would be subject to tax.

[8] Earnings per share

Basic earnings per share is calculated by dividing consolidated net income for the year accruing to common shareholders by the weighted average number of common shares outstanding during the fiscal year under review.

Diluted earnings per share is calculated applying the weighted average number of common shares outstanding after potentially diluting events during the period under review.

In the fiscal years ended December 31, 2025 and December 31, 2024, no shares were deemed dilutive applying the treasury stock method (stock redemption method).

The table below shows the computation of earnings per share (diluted and undiluted):
	2025	2024
Consolidated net income for the year in thousand euros	(4,576)	5,577
Denominator (thousands of shares):
Denominator for undiluted earnings per share – weighted average number of shares	3,526	3,526
Denominator for diluted earnings per share – adjusted weighted average shares	3,526	3,526
Undiluted earnings per share	-1.30 euros	euros
Diluted earnings per share	-1.30 euros	euros

Deferred taxes consist of the following balance sheet items:

KEUR		2025	2024
Deferred tax assets from temporary differences	Germany 2,777		2,498
Deferred tax assets from tax loss carry-forwards	Germany	2,124	0
Deferred tax assets from tax loss carry-forwards	Foreign	959	351
Deferred tax assets from temporary differences	Foreign	475	395
Deferred tax assets from temporary differences		Total 5,834	3,244
Deferred tax liabilities from temporary differences	Germany (3,715) (4,005)
Total balance of deferred tax assets (+) / liabilities (-) (of which 13 thousand euros recorded as other comprehensive income in 2025)		2,119	(761)

Deferred taxes consist of the following balance sheet items:
	assets	Deferred tax	Deferred tax liabilities
KEUR	2025	2024	2025	2024
Current assets
Trade receivables and other assets	35	0	0	(38)
Contract assets	0	0	(276)	(524)
Inventories	139	164	(650)	(261)
Non-current assets
Intangible assets	74	86	(508)	(666)
Property, plant and equipment	76	0	(594)	(594)
Capitalized costs to fulfill a contract	0	0	(1,659)	(1,897)
Shareholders' equity	0	0	0	0
Current liabilities
Lease liabilities	620	588	0	0
Trade payables and other payables	0	48	(28)	0
Other provisions	98	158	0	0
Other current liabilities	24	0	0	(25)
Non-current liabilities
Provisions for pensions and similar obligations	69	66	0	0
Contract liabilities	1,616	1,783	0	0
Total	2,751	2,893		(3,715) (4,005)

[9] Fixed assets 2025				Acquisition expenses						Depreciation, amortization and impairments			Carrying amount
KEUR	Balance as of 01/01/2025	Currency translation	Additions	Disposals	Reclassifica tions	Balance as of 12/31/2025	Balance as of 01/01/2025	Currency translation	Additions	Disposals	Reclassifica tions	Balance as of 12/31/2025	Balance as of 12/31/2025
Intangible assets/Goodwill
Goodwill	3,112	0	0	0	0	3,112	693	0	0	0	0	693	2,419
Software	4,111	(8)	129	0	0	4,232	3,457	(5)	309	0	0	3,761	471
Development projects	11,666	0	219	0	0	11,885	9,604	0	709	0	0	10,313	1,572
Prepayments	478	0	1,107	0	0	1,585	0	0	0	0	0	0	1,585
Total	19,367	(8)	1,455	0	0	20,814	13,754	(5)	1,018	0	0	14,767	6,047
Property, plant and equip ment
Land and buildings	20,145	(79)	228	0	0	20,294	12,149	(52)	900	0	0	12,997	7,297
Technische Anlagen	12,857	56	135	426	0	12,622	6,560	20	1,355	417	0	7,518	5,104
Other equipment, fixtures and fittings, and office equipment	15,527	(28)	439	85	620	16,473	9,233	(43)	1,553	82	0	10,661	5,812
Assets under construction	562	4	1,648	0	(620)	1,594	0	0	0	0	0	0	1,594
Right-of-use assets	24,841	(82)	901	316	0	25,344	10,430	(95)	2,565	313	0	12,587	12,757
Total	73,932	(129)	3,351	827	0	76,327	38,372	(170)	6,373	812	0	43,763	32,564
Total	93,299	(137)	4,806	827	0	97,141	52,126	(175)	7,391	812	0	58,530	38,611

Fixed assets 2024

Acquisition expenses						Depreciation, amortization and impairments					Carrying
													amount
KEUR	Balance as of 01/01/2024	Currency translation	Additions	Disposals	Reclassifica tions	Balance as of 12/31/2024	Balance as of 01/01/2024	Currency translation	Additions	Disposals	Reclassifica tions	Balance as of 12/31/2024	Balance as of 12/31/2024
Intangible assets/Goodwill
Goodwill	3,112	0	0	0	0	3,112	693	0	0	0	0	693	2,419
Software	3,535	11	132	3	436	4,111	3,191	6	263	3	0	3,457	654
Development projects	11,209	0	457	0	0	11,666	9,013	0	591	0	0	9,604	2,062
Prepayments	0	0	504	0	(26)	478	0	0	0	0	0	0	478
Total	17,856	11	1,093	3	410	19,367	12,897	6	854	3	0	13,754	5,613
Property, plant and equip ment
Land and buildings	18,292	76	209	0	1,568	20,145	11,150	33	966	0	0	12,149	7,996
Technical equipment	10,925	69	585	214	1,492	12,857	5,391	21	1,358	210	0	6,560	6,297
Other equipment, fixtures and fittings, and office equipment	14,111	98	747	218	789	15,527	7,746	53	1,588	154	0	9,233	6,294
Anlagen im Bau	3,852	20	949	0	(4,259)	562	0	0	0	0	0	0	562
Right-of-use assets	24,059	353	1,173	744	0	24,841	8,478	109	2,524	681	0	10,430	14,411
Total	71,239	616	3,663	1,176	(410)	73,932	32,765	216	6,436	1,045	0	38,372	35,560
Total	89,095	627	4,756	1,179	0	93,299	45,662	222	7,290	1,048	0	52,126	41,173

ırments

6. Notes to the Statement of Financial Position

The additions to property, plant and equipment shown for the year under review primarily reflect investments to expand of production and logistics capacity at the plants in Lublin and Shanghai.

For further information on right-of-use assets shown under fixed assets, see Note [10] Leases. Fixed assets, excluding goodwill, are depreciated on a scheduled basis over their respective useful life. Except for goodwill, no intangible assets with an indefinite useful life are held.

Development costs for the development of new products and system solutions are capitalized. As of the reporting date, capitalized development costs totaled 1,572 thousand euros (previous year: 2,062 thousand euros). Development costs are allocated to Systems cash-generating unit. As in the previous year, there were no indications of any impairments affecting intangible assets or property, plant and equipment.

As of the balance sheet date, advance payments for property, plant and equipment in the amount of 1,080 thousand euros were recorded in connection with the purchase of a new production machine in Lublin. The machine has been contractually ordered; delivery and operational installation are scheduled for fiscal year 2026. The order contract additionally entails a significant investment obligation in the amount of 2,520 thousand euros which will affect cash flow upon delivery in the year following.

Goodwill acquired in business combinations was allocated across multiple cash-generating units for impairment testing. The carrying amount of goodwill for the fiscal years ended December 31, 2025 is shown below, broken down by reportable segment and cash-generating unit.

KEUR	Displays	Systems	Total
Cash-generating unit	Display Solutions	System Solutions
Balance as of 1/1/2024	1,032	1,387	2,419
Goodwill acquired during the period	0	0	0
Impairment during the period	0	0	0
Balance as of 12/31/2024	1,032	1,387	2,419
Goodwill acquired during the period	0	0	0
Impairment during the period	0	0	0
Balance as of 12/31/2025	1,032	1,387	2,419

Goodwill was impairment tested as of December 31, 2025. The recoverable amount for the cash-generating units was determined applying calculated value in use based on projected cash flows.

KEUR	Real estate	Vehicles	Total
Balance as of 01/01/2025	13,805	606	14,411
Foreign currency trans lation	(80)	(1)	(81)
Additions	402	499	901
Disposals	0	(3)	(3)
Depreciation expense	(2,037)	(434)	(2,471)
Balance as of 12/31/2025	12,090	667	12,757

KEUR	Real estate	Vehicles	Total
Balance as of 01/01/2024	15,197	384	15,581
Foreign currency trans lation	350	3	353
Additions	540	633	1,173
Disposals	(51)	(12)	(63)
Depreciation expense	(2,231)		(402) (2,633)
Balance as of 12/31/2024	13,805	606	14,411

The table below shows the carrying amounts of lease liabilities and the change therein during the period under review:

KEUR 2025 2024 Balance as of 01/01 16,899 17,884 Foreign currency translation (121) 84 Additions 901 1,173 Disposals (3) (64) Redemptions (2,175) (2,178) Balance as of 12/31 15,501 16,899 Of which current 3,392 3,069 Of which non-current 12,109 13,830

Lease liabilities are shown broken down by maturity under

section 8. Supplementary Disclosures.

The amounts below were recorded in profit or loss in the period under review:

KEUR		2025 2024
Depreciation expense for right-of-use assets		2,570 2,507
Interest expenses for lease liabilities	1,125	1,174
Income (-)/expense (+) from deferred taxes	(33)	(18)
Foreign currency translation gains (-)/losses (+)	(135)	(187)
Expenses from short-term lease liabilities	228	329
Expenses from low-value asset leases	70	70
Total expense recorded through profit or loss 3,825 3,875

The cash flow projections for all cash-generating units are based on a three-year forecast (2026 - 2028) approved by management and the Supervisory Board, extrapolated for 2029 and years thereafter. The before-tax discount rate applied for cash flow projections and revenue growth rates for the perpetual annuity starting in 2031 (starting in 2030 for 2024) are shown in the table below.

Cash-generating unit		Before-tax discount rates		Revenue growth rates
in %	2025	2024	2025	2024
Display Solutions	9.54	11.39	2.0	2.0
System Solutions	8.86	11.28	2.0	2.0

The recoverable amount is primarily determined by the final value (perpetual annuity), which is particularly sensitive to changes in growth rate assumptions and discount rates.

Impairment testing of goodwill and of non-current assets yielded no indication of impairment losses for fiscal years 2025 or 2024.

Basic assumptions for calculating value in use

The following assumptions applied in calculating value in use of the cash-generating units are subject to particular uncertainty:

• Gross profit margins
• Discount rates
• Growth rates during the projection period and in perpetuity

Gross profit margins

These margins are calculated based on average profit for the fiscal years prior to the projection period. The gross profit margin is adjusted during the projection period based on expected efficiency increases and corresponding risks.

Discount rates

Discount rates reflect current market estimates pertaining to specific risks attributable to the respective cash-generating units. The discount rate is estimated based on the average weighted cost of capital (WACC) which is common in the industry. Both debt and equity are factored into the weighted average cost of capital. Segment-specific risk is factored in by applying individual beta factors. Beta factors are defined annually based on publicly available market data for a relevant peer group of companies in the same industry. The lower discount rates primarily reflect lower equity costs versus the previous year. This decrease was principally due to a lower market risk premium and a lower peer group beta; the latter reflects how the shares of the Company's peer group firms in the electro industry show less volatility than the overall market.

Estimated growth rates

The growth rates are based on historical data from preceding years and on recent market studies. In fiscal year 2024, revenue growth rates of 2.0% were applied for the cash-generating units for the year 2028 and thereafter. For the Displays segment, for the years 2029 and 2030 an estimated growth rate of 5.0% was applied in fiscal year 2025. For the Systems segment, an estimated revenue growth rate of 8.0% was applied for the same period. The increased estimates versus the previous year reflect expected market growth according to the latest studies. The Company is projected to keep up with the market, as it has in the past, i.e. in line with historical revenue growth. To calculate the perpetual annuity a growth rate of 2.0% was applied for both cash-generating units.

The revenue growth rates used for the cash flow projections reflect the projected growth rates of the respective markets and product revenue growth projected by the DATA MODUL in the respective markets on the basis of a market analysis.

Assumption sensitivity

The Executive Board is of the opinion that no changes appearing reasonably possible to basic assumptions made in order to determine value in use of cash-generating units would cause the carrying amount of a cash-generating unit to substantially exceed its recoverable amount.

[10] Leases

The Group has leases for real estate, motor vehicles and operating and office equipment which are utilized in business operations. Real estate leases usually have terms of 1 - 10 years. Lease terms for vehicles and operating and office equipment are usually 1-3 years in duration. The Group's obligations under lease contracts are secured by the leased assets owned by the lessor. Numerous lease contracts feature extension and termination options, which are discussed in greater detail below.

The Group also has real estate and motor vehicle leases with a term of twelve months or less, and leases for lowvalue office equipment. The Group applies the simplification options available for its short-term leases and leases with a low-value underlying asset.

The table below shows the carrying amounts of recognized right-of-use assets and the change therein during the period under review:

The Group recorded cash outflows of 3,307 thousand euros for leases (previous year: 3,338 thousand euros). The Group also reported non-cash additions to right-of-use assets in the amount of 901 thousand euros (previous year: 1,173 thousand euros) and disposals of right-of-use assets in the amount of 3 thousand euros (previous year: 64 thousand euros).

The Group has concluded a number of lease contracts which feature extension and termination options. Management negotiates to have such options to be able to more flexibly manage the portfolio of leased assets to meet the Group's various business requirements. Management has to make significant judgments in assessing whether there is sufficient certainty that renewal and/or termination options will be exercised, (see Note 4, Accounting and valuation methods, including particularly significant estimates and assumptions).

The table below shows the undiscounted potential future lease payments for periods not factored into the lease term which apply in case of exercise of extension and termination options.

For fiscal year 2025:

KEUR	Within five years	More than five years	Total
Extension options not expected to be exercised		0 4,983 4,983
Termination options not expected to be exercised	0	0	0
Total		0 4,983 4,983

For fiscal year 2024:

KEUR	Within five years	More than five years	Total
Extension options not expected to be exercised		0 4,859 4,859
Termination options not expected to be exercised	0	0	0
Total		0 4,859 4,859

The Group holds no significant leases as lessor.

[11] Capitalized costs to fulfill a contract

As of the reporting date, capitalized costs to fulfill a contract included costs for development work for specific customer development projects which are capitalized up until serial production and recorded as cost of sales when the products are sold. These costs in the amount of 7,159 thousand euros are shown as capitalized costs to fulfill a contract, in line with IFRS 15 (previous year: 7,657 thousand euros). Contract fulfillment costs were capitalized in in the amount of 2,898 thousand euros in fiscal year 2025 (previous year: 3,140 thousand euros) and scheduled depreciation was recorded in the amount of 3,386 thousand euros (previous year: 4,619 thousand euros). As in the previous year, no impairments had to be recorded in the year under review.

[12] Inventories

Inventories as of the reporting date were as follows:

KEUR	2025	2024
Raw materials, consumables and supplies		25,704 21,595
Unfinished products, work in progress	9,272	10,572
Finished goods and merchandise		65,195 67,327
Impairment		(5,183) (3,647)
Total		94,988 95,847

Despite the declining order backlog, inventory levels remain at a high level. This is principally due high component cost and long procurement times for key components for our new curved display product range.

Inventory write-downs in the amount of 3,178 thousand euros (previous year: 2,001 thousand euros) from the change in impairment and from scrapping expenses were recorded under production costs in the 2025 profit and loss account. The increase mainly reflects the one-time effect of writedowns in the new curved display product range in the amount of 1,526 thousand euros.

In fiscal year 2025, inventories in the amount of 159,784 thousand euros (previous year: 157,835 thousand euros) were included as cost of materials on the statement of income.

[13] Trade receivables, contract assets, tax receivables, other current assets and other current financial assets

Trade receivables, contract assets, tax receivables, other current assets and other current financial assets broke down as follows as of the reporting date:

KEUR	2025	2024
Trade receivables, including impairments		25,951 29,509
Contract assets	2,749	4,563
Tax claims and prepayments	474	2,779
Other current assets:
Other assets	4,572	4,411
Other current financial assets:
Suppliers with credit balances	114	146
Positive fair values of embedded derivatives	680	2,487
Other financial assets	364	326
Total	34,904 44,221

debts as of December 31, 2025 and December 31, 2024 was 106 thousand euros and 116 thousand euros respectively.

The financial assets shown in the table are classified as measured at amortized cost, except for embedded derivatives. Embedded derivatives are classified as measured at fair value through profit or loss. Trade receivables are not interested-bearing, and are generally due within 30 days. The allowance for expected bad [14] Cash and cash equivalents Cash and cash equivalents held as of December 31, 2025 in the amount of 12,996 thousand euros (previous year: 20,428 thousand euros) consist of 12,992 thousand euros in bank balances (previous year: 20,422 thousand euros) and cash on hand of 4 thousand euros (previous year: 6 thousand euros).

change in the value adjustment accounts for expected bad debts as of the reporting date was as follows:

KEUR	2025	2024
Balance as of 01/01	116	109
Additions recorded in profit or loss	82	55
Utilization	(48)	(5)
Reversals	(43)	(44)
Effects from foreign currency translation adjustments	(1)	1
Balance as of 12/31	106	116

Contract assets in the amount of 2,749 thousand euros (previous year: 4,563 thousand euros) consist exclusively of receivables from sales to consignment warehouse customers for the supplying of customer-specific items. Under IFRS 15, revenue is recognizable upon delivery of such items to the consignment warehouse, giving rise to the corresponding receivables. Other assets consist primarily of sales tax refunds due DATA MODUL AG is classified as a technology firm and has 10,578,546 euros of share capital. The shares are listed on the Regulated Market in Frankfurt (in the Prime Standard trading segment since January 1, 2003), at the Deutsche Börse Xetra and in Munich and also trade on the Open Market in Berlin, Düsseldorf, Hamburg and Stuttgart. Share capital comprises 3,526,182 no par value bearer shares which are fully paid-in. Each share represents 3.00 euros of subscribed capital.

No impairments on contract assets or any other financial instruments had to be recorded for expected bad debts in fiscal year 2025.

in the amount of 3,268 thousand euros (previous year: 2,730 thousand euros), deferred items in the amount of 797 thousand euros (previous year: 924 thousand euros) and prepayments in the amount of 407 thousand euros (previous year: 615 thousand euros). At the balance sheet date, DATA MODUL AG held no treasury shares, thus the number of shares outstanding was 3,526,182.

Please see the comments on credit risk under Note 8., Supplementary Disclosures, regarding default risk and the presentation of the impairment matrix applied to gauge expected credit losses/bad debts on trade receivables.

Other financial assets consist of other receivables in the amount of 197 thousand euros (previous year: 163 thousand euros) and security deposits in the amount of 166 thousand euros (previous year: 163 thousand euros). Expected credit losses on trade receivables represent ongoing impairment expense. Receivables are only derecognized after final clarification of the collection prospects. The Although the Company recorded a net loss for fiscal year 2025, the Executive and Supervisory Boards propose distributing a dividend of 0.25 euros per share to shareholders from accounting profits on the books from a carryforward. The dividend distribution in 2025 for fiscal year 2024 was 0.12 euro per share (previous year: 0.12 euro per share). This corresponded to a distribution of 423 thousand euros (previous year: 423 thousand euros).

[15] Shareholders' equity

Share capital

Dividend

Capital reserves

Premiums collected on share offerings in previous years are allocated to capital reserves.

Retained earnings

Retained earnings broke down as follows as of December 31, 2024 and 2025 respectively:

KEUR	2025	2024
Retained earnings		115,110 109,957
Net income for the year	(4,576)	5,577
Other comprehensive income, dividend	(454)	(424)
Total	110,080 115,110

Other reserves

Other reserves consist exclusively of reserves for currency differences in the amount of 363 thousand euros (previous year: 1,307 thousand euros).

[16] Pension and non-current personnel liabilities

DATA MODUL maintains a salary-based non-contributory defined benefit plan that involves individual benefit obligations to former Executive Board members. The Company has purchased life insurance policies to cover the actuarial net present value of pension obligations.

The redemption value of these insurance policies as of the reporting date totaled 81 thousand euros (previous year: 84 thousand euros). The pledged reinsurance policies are netted out as plan assets in "Pensions and non-current personnel liabilities". The pension accruals as of December 31, 2025 and December 31, 2024 were calculated in December of the respective year. The mortality rates are based on the tables of Prof. Dr. Klaus Heubeck (2018 G). There were no changes to the defined benefit plan in the fiscal year ended.

The table below shows the balance sheet amounts recorded for defined benefit pension obligations.

KEUR		2025 2024 2023 2022 2021
Present value of pen sion obligations		1,051 1,103 1,134 1,236 1,570
Fair value of the plan assets	81	84	88	155	161
Funding status		970 1,019 1,046 1,081 1,409

Taking into account the principles of computation set forth in IAS 19, the current funding status of the pension obligations is as follows:

KEUR		2025 2024
Changes in the present value of pension obligations:
Pension obligations forecast at beginning of year		1,103 1,134
Accruing interest on expected pension obliga tions	31	36
Actuarial profit or loss recorded in other compre hensive income resulting from changed interest and trend assumptions	(12)	32
Actuarial gain/loss recorded in other compre hensive income resulting from funding level changes	56	37
Pensions paid		(127) (136)
Present value of pension obligations at yearend		1,051 1,103
Plan assets	(81)	(84)
Pension obligations		970 1,019

The net pension expenditure breaks down as follows:

KEUR		2025 2024
Accruing interest on expected pension obliga tions	31	36
Net periodic pension cost	31	36

The table below shows the change in the fair value of plan assets:

KEUR		2025 2024
Plan assets at the start of the year	84	88
Interest income	2	2
Other changes in the value of plan assets	8	7
Benefits paid	(13)	(13)
Plan assets at the end of the year	81	84

A return on plan assets of 10 thousand euros was recorded (previous year: 9 thousand euros). The fair value of the plan assets is determined by referencing exchange value or other market value.

The following average factors were used as basis for calculating pension obligations as of the reporting date:

in %	2025	2024
Weighted average assumptions:
Discount rate	3.20	3.00
Growth rate for future pension benefit payments		2.0 –3.0 2.0 –3.0

The average duration is 6 years (previous year: 6 years). The Company has pension plan benefit payment obligations as outlined below for fiscal years respectively ending on December 31:

	KEUR
2026	130
2027	124
2028	118
2029	111
2030	104
Cumulative 2031 through 2035*)	393

*Effects stemming from plan assets are not taken into account in future disbursements.

1) Pension trend sensitivity applies only to those portions of the pension obligations which have not been contractually agreed.

There were other long-term personnel obligations in addition to pension obligations as of the reporting date.

Expenses are recorded in profit or loss under net interest.		KEUR	Warran ties	Person nel	Other	Total
The sensitivity analysis below shows changes in carrying		Balance as of 01/01/2025	794	59	1,215	2,068
amounts resulting from changes in the parameters applied for calculating pension obligations under the projected unit	Foreign currency translation	0	0	(24)	(24)
credit method.	Additions	770	0	241	1,011
		Utilization	(21)	(6)	(1,028)	(1,055)
KEUR	12/31/2025	Reversals	(672)	0	(111)	(783)
Discount rate increase by 1.0%	(57)	Balance as of	871	53	293	1,217
Discount rate decrease by 1.0%	63	12/31/2025
Pension trend rise of 1.0%1)	59	Of which non-cur rent	174	0	0	174
Pension trend decline of 1.0%1)	(54)	Of which current	697	53	293	1,043

obligation was presented under current personnel liabilities for materiality reasons. Having reassessed the economic and legal circumstances, the TFR claim in the amount of 193 thousand euros (previous year: 272 thousand euros) is now recorded as a long-term obligation in the interest of greater transparency. The liability was reclassified in fiscal year 2025.

[17] Provisions

Quantifying warranty provisions are inherently subject to uncertainty regarding amount and due dates. The amount of the accrual is calculated based on historical data. Employment anniversary supplement obligations are reported under personnel provisions. Other provisions consist primarily of other liabilities, the amount of which is uncertain. The change in non-current and current provisions in fiscal year 2025 was as outlined below.

to pension obligations as of the reporting date.			KEUR	Warran ties	Person nel	Other	Total
KEUR		2025 2024	Balance as of 01/01/2024	1,194	54	618	1,866
Pension provisions	970	1,019	Foreign currency
TFR commitment	1932)	0	translation	0	0	10	10
Long-term bonus claims	83	83	Additions	693	5	1,049	1,747
Amount reported on consolidated balance sheet	1,246	1,102	Utilization	(17)	0	(303)	(320)
			Reversals	(1,076)	0	(159)	(1,235)
Under Italian law, employees are entitled to a legally regula ted severance payment (Fondo Trattamento di Fine Rappor to – TFR), irrespective of the reason for termination of the			Balance as of 12/31/2024	794	59	1,215	2,068
			Of which non-cur rent	216	0	0	216
employment relationship. In previous reporting periods this			Of which current	578	59	1,215	1,852

2) Severance pay provisions were reclassified from current to noncurrent in the year under review.

The change in non-current and current provisions in fiscal year 2024 was as outlined below.

[18] Non-current and current contract liabilities

As of the reporting date, contract liabilities included deferred revenue for contractually agreed warranty benefits for our customers beyond the scope of statutory warranty and for upfront payments from customers for customer-specific development projects.

As of the reporting date, non-current contract liabilities totaled 5,370 thousand euros (previous year: 5,980 thousand euros), while current contract liabilities totaled 168 thousand euros (previous year: 215 thousand euros). Revenue from extended warranties was recognized in the amount of 213 thousand euros in 2025 (previous year: 91 thousand euros), and revenue from development projects was recognized in the amount of 2,167 thousand euros (previous year: 3,238 thousand euros).

[19] Other current liabilities, other current financial lia bilities and tax liabilities

-

Other current liabilities, other current financial liabilities and tax liabilities consisted of the following items as of the reporting date:

KEUR	2025	2024
Taxes payable	525	3,743
Other current liabilities:
Personnel-related liabilities	2,984	3,296
Social security and payroll taxes	915	926
Advance payments received	346	244
Sales tax liabilities	3,480	2,929
Total current liabilities:	7,724	7,395
Other current financial liabilities:
Outstanding invoices	1,336	1,565
Customers with credit balances	92	183
Negative fair values of embedded deriv - atives	753	2,411
Other liabilities	11	10
Total, other current financial liabilities	2,192	4,169
Total		10,441 15,307

The financial liabilities shown in the table are classified as measured at amortized cost, except for embedded derivati ves. Embedded derivatives are classified as measured at fair value through profit or loss.

[20] Current borrowings from financial institutions

As of December 31, 2025, there are no liabilities to credit ins titutions.

-

Unused available credit lines, factoring in the bank guarantee and credit line interest in the amount to 0 thousand euros (pre vious year: 1,829 thousand euros) totaled 48,500 thousand euros on the reporting date (previous year: 53,671 thousand euros).

KEUR	2025	2024
Commerzbank, Munich		15,000 15,000
Sparkasse Tauberfranken, Tauberbischof - sheim		12,000 12,000
Bayerische Landesbank, Munich		7,000 14,000
Deutsche Bank, Munich		14,500 14,500
Total		48,500 55,500

-

In addition to these credit facilities, DATA MODUL has bank guarantees which it can use in lieu of rent deposits or sup plier guarantees. These bank guarantees are equivalent to letters of credit. Instead of receiving a cash deposit, the bank guarantees, for example, the deposit amount without actually depositing assets. These guarantees affect the total amount of cash the Company can borrow, as the guarantees pose a potential risk to the issuing banks.

[21] Financial instruments

The table below shows the carrying amounts and fair values of financial instruments additionally disclosable under IFRS 7 and their hierarchy levels per IFRS 13. If fair value is not stated for a financial instrument, the carrying amount of the financial instrument stated represents a reasonable estimate of its fair value due to the assets/liabilities in question being short-term in nature and not involving any identifiable credit risk.

The fair value of foreign currency derivatives is determined using the standard forward market model applying exchange rates from market trading. Nominal volume and maturity structure are determined using internal statistical procedures (thus level 3 per IFRS 13.72). The carrying amount of foreign currency derivatives changes as follows given a one-month shortening or lengthening of their maturity:

KEUR		-1 month +1 month
Other current financial assets
Derivatives	(632)	(797)
Other current financial liabilities
Derivatives	(735)	(801)

12/31/2025	IFRS 13 level hierarchy	IFRS 9 categories	Carrying amount	At amortized cost (AC)	Measured at fair value through other comprehen - sive income loss (FVOCI)	Measured at fair value through prof - it or loss (FVPL)	Not classified to an IFRS 9 category
Current assets
Trade accounts receivable	-	AC	25,951	25,951		-	-
Other current financial assets	-	AC	1,158	-		-	-
Derivatives	Level 3	FVPL	680	-		680	-
Other	-	AC	478	478		-	-
Cash and cash equivalents	-	AC	12,996	12,996		-	-
Non-current liabilities
Non-current lease liabilities	-	-	12,109	-		-	12,109
Current liabilities
Trade accounts payable	-	AC	11,693	11,693		-	-
Current lease liabilities	-	-	3,392	-		-	3,392
Liabilities due to financial institutions	-	AC	0	0		-	-
Other current liabilities	-	-	856	-		-	-
Derivatives	Level 3	FVPL	753	-		753	-
Other	-	AC	103	103		-	-

12/31/2024	IFRS 13 level hierarchy	IFRS 9 categories	Carrying amount	At amortized cost (AC)	Measured at fair value through other comprehen - sive income loss (FVOCI)	Measured at fair value through prof - it or loss (FVPL)	Not classified to an IFRS 9 category
Current assets
Trade accounts receivable	-	AC	29,509	29,509		-	-
Other current financial assets	-	AC	2,959			-	-
Derivatives	Level 3	FVPL	2,488			2,488	-
Other	-	AC	471	471		-	-
Cash and cash equivalents	-	AC	20,428	20,428		-	-
Non-current liabilities
Non-current lease liabilities	-	-	13,830			-	13,830
Current liabilities
Verbindlichkeiten aus Lieferung und Leistung	-	AC	15,877	15,877		-	-
Current lease liabilities	-	-	3,069			-	3,069
Liabilities due to financial institutions	-	AC	3	3		-	-
Other current liabilities	-		2,605			-	-
Derivatives	Level 3	FVPL	2,411			2,411	-
Other	-	AC	194	194		-	-

AC – Measured at amortized cost

FVOCI – Fair value through other comprehensive income FVPL – Fair value through profit or loss

7. Notes to the Statement of Cash Flows

The Statement of Cash Flows records inflow and outflow of funds from ordinary operations and investment and financing activities.

Exchange rate changes are eliminated in the relevant line and presented separately.

Cash flows from operating activities include all cash flows from ongoing operating activities and are presented using the indirect method. All non-cash income and expense items are adjusted based on net income for the year. Cash flow from operating activities came to 180 thousand euros (previous year: 21,728 thousand euros) due principally to the net loss for the year recorded of -4,576 thousand euros (previous year: net income 5,577 thousand euros), and also due to lower other liabilities, contract liabilities and trade accounts payable. The decrease in other assets versus the previous year positively impacted cash flow from operating activities.

Cash flows from investing activities reflect the capital outflow related to capitalized development costs and to other asset additions, and the cash inflows from the disposal of assets. Net cash flows from investing activities came to -3,906 thousand euros in 2025, reflecting further investment at the Lublin and Shanghai production sites (previous year: -3,514 thousand euros).

Cash flow from financing activities in fiscal year 2025 was -3,715 thousand euros (previous year: -11,855 thousand euros). Cash flow from financing activities includes cash outflows for leases, these payments being broken down into lease liability redemption and interest portions. The dividend distribution resulted in a cash outflow of 423 thousand euros in 2025 (previous year: 423 thousand euros). The dividend distribution in 2025 for fiscal year 2024 was 0.12 euro per share (previous year: 0.12 euro per share).

Cash and cash equivalents comprise current bank deposits and cash on hand. Effects of exchange rate fluctuations on cash and cash equivalents are presented in a separate line item.

Reconciliation of debt movements to cash flows from financing activities

The reconciliation statement of debt to cash flow from financing activities required pursuant to IAS 7.44A is shown below.

8. Supplementary Disclosures

Objectives and methods of financial risk management

Business operations inevitably result in liquidity, credit and market risks. Market risks are effects from market price changes on fair value and future cash flows from financial instruments. Market risks include in particular interest-related cash flow risk, interest rate risk, foreign currency risk and other price risks. Strategies and control mechanisms for specific risks arising from the Group's use of financial instruments are outlined below. The Company has no significant concentration of credit risk.

Interest rate risk

Interest rate risk is the risk of the fair value or future cash flows of a financial instrument fluctuating due to changes in market interest rates. Risk of market interest rate fluctuation to which the Group is exposed is primarily connected with long-term variable-rate loans.

The credit facilities available for financing our global business operations are in part subject to interest rate risks. The Group manages its interest rate risk by taking out exclusively short-term loans at fixed interest rates. The Company held no interest-bearing loans as of December 31, 2025. Given the nature of business activities necessitating primarily shortterm financing, mainly trade accounts payable, interest rate risk is considered negligible at this time.

Currency risk

Currency fluctuations may materially affect the Group's balance sheet due to the significant volume of transactions in foreign currency. Risk exposure arises from sales or purchases by an operating unit in currencies other than the unit's functional currency. Approximately 46.9% (previous year: 48.3%) of Group revenue was generated in currencies other than the functional currency of the operating unit that generated the revenue, and 63.2% (previous year: 56.7%) of costs were incurred in a currency other than the functional currency of the operating unit to which they accrued. The Group may employ a range of hedging instruments such as currency futures contracts and options to minimize price and currency risks. Currency futures contracts must be in the same currency as the hedged item. It is the Group's policy not to enter into currency hedges until a fixed obligation has been agreed on. It is the Company's policy to negotiate the terms of hedge derivatives to correspond to those of the hedged item in order to maximize hedge effectiveness. As of December 31, 2025, no currency hedging contracts were held.

The table below shows a sensitivity analysis of Group earnings before taxes to exchange rate fluctuations in all key foreign currencies which are deemed reasonably possible on the basis of prudent business judgment. The most impact is seen from exchange rate fluctuations versus the USD, PLN and HKD. The impact on earnings before taxes due to an exchange rate increase or decrease relative to the average foreign exchange rate for the respective fiscal years was calculated. All other factors remain unchanged.

Impact on 2025 earnings before taxes

	Exchange rate change
KEUR	Increase by 5%	Decrease by 5%
USD	(1,396)	1,263
PLN	(618)	559
HKD	(146)	132
Total	(2,160)	1,954

Impact on 2024 earnings before taxes

	Exchange rate change
KEUR	Increase by 5%	Decrease by 5%
US	(280)	254
PLN	(572)	518
CNY	164	(149)
Total	(688)	623

Credit risk

Credit risk, or default risk, arises from the potential of business partners not meeting their obligations in operating business and financial transactions. Risk related to credit standing is minimized by means of an efficient credit and collections management system.

The Group only enters into transactions with third parties with good credit standing. It is the Company's policy that all customers who wish to trade on credit are subject to verification of creditworthiness. Trade receivables balances are constantly monitored and allowances made for known and anticipated value adjustment risks. Impairments on trade receivables were calculated as follows:

Change in financing debt			Not affecting cash flow
KEUR	Statement of financial position on 01/1/2025	Affecting cash flow	Addi tions/ dispos als	Interest accrued but not yet paid	FX	Fair value	Reclas sifica tion	Statement of financial position on 12/31/2025
Liabilities due to financial institutions	3	(3)	0	0	0	0	0	0
Lease liabilities	16,899	(2,175)	898		0 (121)	0	0	15,501
Total	16,902	(2,178)	898		0 (121)	0	0	15,501

Change in financing debt				Not affecting cash flow
KEUR	Statement of financial position on 01/1/2024	Affecting cash flow	Addi- tions/ dispos als	Interest accrued but not yet paid	FX	Fair value	Reclas- sifica- tion	Statement of financial position on 12/31/2024
Liabilities due to financial institutions		8,032 (8,032)	0	3	0	0	0	3
Lease liabilities	17,884	(2,178)	1,109	0	84	0	0	16,899
Total		25,916 (10,210)	1,109	3	84	0	0	16,902

Default rates as of 12/31/2025 for calculating impairment (in %)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days
DATA MODUL AG	0.00	0.02	0.07	19.14	20.43
DATA MODUL France	0.00	0.00	0.00	0.00	26.69
DATA MODUL Italia	0.00	0.00	0.00	0.00	26.91
DATA MODUL Iberia	0.00	0.00	0.00	0.00	0.00
DATA MODUL Ltd.	0.00	0.00	0.00	0.00	48.11
DATA MODUL Inc.	0.00	1.58	2.39	2.39	62.04
DATA MODUL Hong Kong	0.00	0.00	0.00	0.00	0.00
DATA MODUL Shanghai	0.00	0.00	0.00	0.00	0.00
Conrac Asia	0.00	0.00	0.00	0.00	0.00

Gross carrying amounts of trade receivables as of 12/31/2025 (in KEUR)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days	Total	Currency
DATA MODUL AG	11,433	2,713	624	78	29	14,877	EUR
DATA MODUL France	225	6	0	0	0	231	EUR
DATA MODUL Italia	1,700	481	415	58	1	2,655	EUR
DATA MODUL Iberia	1,941	412	97	1	1	2,453	EUR
DATA MODUL Ltd.	186	91	5	9	50	341	GBP
DATA MODUL Inc.	1,379	61	0	0	1	1,442	USD
DATA MODUL Hong Kong	2,323	19	434	0	0	2,776	HKD
DATA MODUL Shanghai	1,507	14	0	0	0	1,521	CNY
Conrac Asia	0	0	0	0	0	0	SGD
						26,295	Total in EUR

Impairments as of 12/31/2025 (in KEUR)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days	Total	Currency
DATA MODUL AG	0	0	0	15	7	22	EUR
DATA MODUL France	0	0	0	0	0	0	EUR
DATA MODUL Italia	0	0	0	0	0	0	EUR
DATA MODUL Iberia	0	0	0	0	0	0	EUR
DATA MODUL Ltd.	0	0	0	0	24	24	GBP (in EUR)
DATA MODUL Inc.	0	1	0	0	0	1	USD (in EUR)
DATA MODUL Hong Kong	0	0	0	0	0	0	HKD (in EUR)
DATA MODUL Shanghai	0	0	0	0	0	0	CNY (in EUR)
Conrac Asia	0	0	0	0	0	0	SGD (in EUR)
						47	Total in EUR

Default rates as of 12/31/2024 for calculating impairment (in %)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days
DATA MODUL AG	0.00	0.00	0.00	0.00	14.97
DATA MODUL France	0.00	0.00	0.00	0.00	35.65
DATA MODUL Italia	0.00	0.00	0.00	0.00	15.89
DATA MODUL Iberia	0.00	0.00	0.00	0.00	0.00
DATA MODUL Ltd.	0.00	0.00	0.00	0.00	27.06
DATA MODUL Inc.	0.00	1.58	2.39	2.39	39.52
DATA MODUL Hong Kong	0.00	0.00	0.00	0.00	0.00
DATA MODUL Shanghai	0.00	0.00	0.00	0.00	0.00
Conrac Asia	0.00	0.00	0.00	0.00	0.00

Gross carrying amounts of trade receivables as of 12/31/2024 (in KEUR)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days	Total	Currency
DATA MODUL AG	14,845	2,825	433	165	26	18,294	EUR
DATA MODUL France	137	22	0	0	10	169	EUR
DATA MODUL Italia	2,145	1,024	236	5	3	3,413	EUR
DATA MODUL Iberia	2,374	863	51	110	0	3,398	EUR
DATA MODUL Ltd.	193	264	13	138	71	679	GBP
DATA MODUL Inc.	1,652	181	0	37	18	1,888	USD
DATA MODUL Hong Kong	463	534	0	0	0	997	HKD
DATA MODUL Shanghai	300	71	68	0	0	439	CNY
Conrac Asia	58	0	0	0	0	58	SGD
						29,335	Total in EUR

Impairments as of 12/31/2024 (in KEUR)

	Not overdue	Overdue 1 - 30 days	Overdue 31 - 60 days	Overdue 61 - 90 days	Overdue > 90 days	Total	Currency
DATA MODUL AG	0	0	0	1	0	1	EUR
DATA MODUL France	0	0	0	0	0	0	EUR
DATA MODUL Italia	0	0	0	0	0	0	EUR
DATA MODUL Iberia	0	0	0	0	0	0	EUR
DATA MODUL Ltd.	0	0	0	0	16	16	GBP (in EUR)
DATA MODUL Inc.	0	3	0	1	0	4	USD (in EUR)
DATA MODUL Hong Kong	0	0	0	0	0	0	HKD (in EUR)
DATA MODUL Shanghai	0	0	0	0	0	0	CNY (in EUR)
Conrac Asia	0	0	0	0	0	0	SGD (in EUR)
						21	Total in EUR

The Group recorded an impairment loss based on the flat individual allowance for bad debts in the amount of 47 thousand euros in the year under review (previous year: 21 thousand euros). Individual impairments were also recorded in the amount of 59 thousand euros (previous year: 95 thousand euros) on trade receivables with a gross carrying amount of 95 thousand euros (previous year: 137 thousand euros ). The total allowance for expected bad debts as of December 31, 2025 and December 31, 2024 was 106 thousand euros and 116 thousand euros respectively.

It was not necessary to present the impairment matrix because in the last three years no bad debts were recorded from customers whose receivables were reported under contract assets. Other than that there are no significant default risks connected with ongoing business activities. Additionally, credit sale insurance policies have been taken out to limit risk under a 10% benefit.

In transactions not conducted in the country of the respective operating unit, the Company does not offer credit terms without a credit check. The Group thus does not face a major concentration of credit risks. With other financial assets of the Group, such as cash and cash equivalents, the maximum credit risk exposure through counterparty default is equal to the carrying amount of those instruments.

Liquidity risk

Liquidity risk concerns the Company's ability to at all times meet its payment obligations in full and in a timely manner.

The Group constantly monitors liquidity risk, employing a liquidity planning tool. This tool takes into account the maturities of both the financial investments and the financial assets, as well as projected cash flows from business operations.

The Company's objective is to meet liquidity requirements at all times while maintaining flexibility through the utilization of overdraft facilities and bank loans. As of December 31, 2025, 36.7% of the Company's debt reported on the Consolidated Financial Statements was due within one year (previous year: 39.5%)

As of the balance sheet date, the Company held 12,996 thousand euros in cash and cash equivalents (previous year: 20,428 thousand euros).

The table below shows the maturity structure of contractual, undiscounted and expected cash flows from financial liabilities. The cash flows consist of redemption payments and related interest.

The Company monitors its capital levels with respect to a capital management ratio which is the ratio of net debt to total equity plus net debt. The Company's net debt is its interestbearing loans and borrowings, trade payables, contract liabilities and other liabilities less cash and cash equivalents, other current assets and other current financial assets. Shareholders' equity is the equity shown on the balance sheet.

KEUR	2025	2024
Current borrowings	0	3
Trade payables and contract liabilities	17,231	22,071
Lease liabilities	15,501	16,900
Other liabilities	14,779	19,982
minus cash and cash equivalents and other current assets	(18,726)	(27,799)
Net financial debt	28,785	31,157
Total shareholders' equity	145,141	151,115
Shareholders' equity and net debt	173,926	182,272
Capital management ratio in %	16.55%	17.09%

Embedded derivatives

classifiable as hedges for projected sales to customers or purchases from suppliers for which these fixed obligations existed. As of the December 31, 2025 reporting date there were no hedged net investments in foreign business operations.

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12/31/2025 KEUR	< 12 months	1 - 5 years	> 5 years	Total
Liabilities due to financial institutions	0	0	0	0
Trade accounts payable	11,693	0	0	11,693
Lease liabilities	3,561	10,183		6,525 20,269
Other financial liabil ities	2,192	0	0	2,192
Total	17,446	10,183	6,525	34,154

12/31/2024 KEUR	< 12 months	1 - 5 years	> 5 years	Total
Liabilities due to financial institutions	3	0	0	3
Trade accounts payable	15,877	0	0	15,877
Lease liabilities	3,222	11,234	8,216	22,672
Other financial liabil ities	4,169	0	0	4,169
Total	23,271	11,234	8,216	42,721

Capital management

DATA MODUL enters into sale contracts with customers and purchase contracts with suppliers in currencies that are not the functional currencies of both parties. The contractual currencies under these contracts are USD and JPY. These contracts therefore contain embedded foreign currency derivatives which have to be separated from the host contract in accounting. These embedded foreign currency derivatives were measured at fair value through profit or loss on the basis of material observable valuation inputs. Fair value is calculated applying USD and JPY foreign exchange rates observable on an exchange over the average term of the customer or supplier orders, relative to order volume. The maximum average term of such order contracts with customers and suppliers is 10 months. Segment reporting In accordance with IFRS 8, Operating Segments, segments are defined using the "management approach". Segments are defined and information on these segments is thus disclosed according to internal criteria used by Company management to allocate resources and evaluate segment performance. The segment reports below were prepared in accordance with this definition, New orders, revenue and EBIT are the primary performance metrics. There is no revenue from transactions between the business segments. Segment costs are clearly allocatable to the respective segments. Assets and liabilities are not allocated to segments for management purposes, and are not internally analyzed to evaluate performance of the Company's business segments.

The main objective behind the Company's capital management activities is to maintain a high credit rating and a good equity ratio to support business operations and maximize shareholder value. The Company manages and adjusts its capital structure taking into account any changes to the general economic conditions. In order to maintain or adjust its capital structure, the Company may adjust dividend payments to shareholders, make share repurchases and issue new shares. No changes had been made to the objectives or policies as of December 31, 2025, nor in the previous year.

Contingent liabilities, contingencies and other financial obligations

Contingent liabilities and litigation

The fair values are stated in the Notes to the Statement of Financial Position—see Note [13], Other current financial assets, and Note [19], Other current financial liabilities. Hedging activities As of December 31, 2025, there were no financial instruments The Display Solutions business segment consists essentially of display sales and the production and distribution of touch displays and embedded components. Products in the System Solutions business segment feature the highest degree of in-house added value. Complex, customer-specific monitor systems are developed and produced in this segment.

The Group may be subject to litigation from time to time as part of the ordinary course of business. The Group's Executive Board and its legal advisors are not aware of any claims that could have a material adverse effect on the Company's business, balance sheet or earnings.

Contingencies from guarantees and warranties as of the balance sheet date totaled 1,655 thousand euros (previous year: 1,826 thousand euros).

The maturities are as follows (in KEUR):

KEUR		< 1 year 1-5 years > 5 years		Total
Guaranteed bills outstanding	0	750	905	1,655

Liabilities from open orders

As of the reporting date, open orders with suppliers totaled 87,130 thousand euros in volume (previous year: 96,351 thousand euros).

Business segments

Segment results	Fiscal year 2025		Fiscal year 2024
KEUR	Displays	Systems	Group total	Displays	Systems	Group total
Revenue from product sales	126,226	85,429	211,655	136,804	88,291	225,095
Service revenue	375	848	1,223	390	723	1,113
Total revenue	126,601	86,277	212,878	137,194	89,014	226,208
Cost of sales	(106,919)	(75,338)	(182,257)	(114,151)	(69,586)	(183,737)
Other operating income	27	16	43	1,403	679	2,082
Research and development expenses	(2,332)	(4,376)	(6,708)	(2,330)	(3,740)	(6,070)
Selling and general administrative expenses	(18,755)	(10,102)	(28,857)	(19,236)	(9,926)	(29,162)
Segment results (EBIT)	(1,378)	(3,523)	(4,901)	2,880	6,441	9,321
Financial income	118	54	172	31	50	81
Financial expenses	(871)	(518)	(1,389)	(1,025)	(403)	(1,428)
Income taxes3)	537	1,005	1,542	(342)	(2,054)	(2,397)
Net income for the year	(1,594)	(2,982)	(4,576)	1,544	4,033	5,577
Amortization of intangible assets and de preciation on property, plant and equipment	(1,948)	(2,878)	(4,826)	(2,983)	(1,783)	(4,766)
Investments in intangible assets, property, plant and equipment, and financial assets	1,827	2,078	3,905	1,623	1,960	3,583
Orders received	114,881	95,550	210,431	113,099	88,307	201,406

3) The allocation made in the previous year did not accurately reflect the segments' percentage contribution to net income, thus the adjustment made in the year under review.

Breakdown by geographical region

Regarding the geographical region data, revenues are allocated to countries applying to the country of destination principle. Non-current assets are accounted for at the location of the asset in question. Non-current assets shown in the chart exclusively concern fixed Capex assets, and do not include rights of use or capitalized contract costs to fulfill a contract. 'Domestic' refers to the headquarters of the parent company DATA MODUL AG located in Germany.

Revenue

Displays segment

KEUR	2025	2024
Domestic	50,505	56,675
Foreign	76,096	80,519
Total	126,601	137,194

Systems segment

KEUR	2025	2024
Domestic	45,567	50,374
Foreign	40,710	38,640
Total	86,277	89,014

Non-current assets

KEUR	2025	2024
Domestic
Intangible assets	5,940	5,005
Property, plant and equipment	8,506	11,109
Total domestic	14,446	16,114
Foreign
Intangible assets	107	130
Property, plant and equipment	11,301	10,518
Total foreign	11,408	10,648
Total	25,854	26,762

Related parties

According to IAS 24 (Related party disclosures), transactions with persons and entities that are controlled by the reporting entity or could control the reporting entity are to be disclosed unless these have already been included in the Consolidated Financial Statements as consolidated entities. Related parties of DATA MODUL AG include shareholders with significant influence, subsidiaries, Executive and Supervisory Board members and their related-party persons, and companies in which any of the aforementioned persons has an interest.

On April 23, 2015, ARROW Central Europe Holding Munich GmbH, Munich, notified the Company that its shareholding in DATA MODUL AG had exceeded the 50% threshold. Since that date, ARROW Central Europe Holding Munich GmbH has been the controlling company of DATA MODUL AG within the meaning of Sec. 17 AktG.

DATA MODUL AG in turn is a dependent company of Arrow Central Europe Holding Munich GmbH, Munich, and of the Arrow Group parent company Arrow Electronics Inc., Centennial, Colorado, USA. Accordingly, DATA MODUL AG as the largest corporate group is included in the Consolidated Financial Statements of ARROW Electronics Inc. Those Consolidated Financial Statements are available online at www. arrow.com.

Business transactions with the ARROW Group in fiscal 2025 included 228 thousand euros in purchases (previous year: 130 thousand euros) and 16 thousand euros in sales (previous year: 48 thousand euros). As of the reporting date, unsecured liabilities due to the ARROW Group totaled 17 thousand euros (previous year: 6 thousand euros), while receivables from ARROW Group totaled 0 thousand euros (previous year: 8 thousand euros).

The DATA MODUL Consolidated Financial Statements include all subsidiaries in which the parent company, DATA MODUL AG, holds an indirect or direct majority of voting rights. Business transactions with subsidiaries are eliminated as part of full consolidation.

Affiliated companies

Company name, registered office	Share- holding	IFRS equity	Net income
	in %	KEUR	KEUR
DATA MODUL Weikersheim GmbH, Weikersheim, Germany	100	14,352	704
DATA MODUL France SARL, Paris, France	100	762	47
DATA MODUL Iberia S.L., Madrid, Spain	100	834	333
DATA MODUL Inc., New York, USA	100	(389)	(1,662)
DATA MODUL Italia S.r.l., Bolzano, Italy	100	562	459
DATA MODUL Ltd., Cannock, United Kingdom	100	562	49
DATA MODUL Hong Kong Ltd., Hong Kong, China	100	7,540	126
DATA MODUL Electronic Technology (Shanghai) Co., Ltd., Shanghai, China	1001)	3,696	(200)
Conrac Asia Display Products PTE Ltd., Singapore	100	791	128
DATA MODUL Polska Sp. z o.o, Lublin, Poland	100	10,718	12

1) Indirect holding via DATA MODUL Hong Kong Ltd.

Segment results	Fiscal year 2024 after Correction				Fiscal year 2024
KEUR	Displays	Systems	Group total	Displays	Systems	Group total
Income taxes	(342)	(2,054)	(2,397)	(1,732)	(665)	(2,397)
Net income for the year	1,544	4,033	5,577	154	5,423	5,577

To DATA MODUL Aktiengesellschaft Produktion und Vertrieb von elektronischen Systemen, Munich

Report on the audit of the consolidated financial statements and of the group management report

Pursuant to § 322 (3) Sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the group management report.

Basis for the opinions

Key audit matters in the audit of the consolidated financial statements

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January to 31 December 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon; we do not provide a separate opinion on these matters.

We conducted our audit of the consolidated financial statements and of the group management report in accordance with § 317 HGB and the EU Audit Regulation (No 537/2014, referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements and of the group management report" section of 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 in accordance with these requirements. In addition, in accordance with Art. 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Art. 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial statements and on the group management report. ment and other comprehensive income, the consolidated cash-flow statement for the financial year from 1 January to 31 December 2025 and the consolidated statement of changes in equity for the financial year from 1 January 2025 to 31 December 2025, and notes to the consolidated financial statements, including a summary of significant accounting policies. In addition, we have audited the group management report of DATA MODUL AG for the financial year from 1 January to 31 December 2025. In accordance with the German legal requirements we have not audited the content of those parts of the group management report mentioned in the sec-In our opinion, on the basis of the knowledge obtained in the audit, • the accompanying consolidated financial statements comply, in all material respects, with the International Financial Reporting Standards (IFRS), as adopted by the EU, and the additional requirements of German commercial law pursuant to § 315e (1) HGB and, in compliance with these requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of 31 December 2025,

Independent Auditor's Report

Audit Opinions

We have audited the consolidated financial statements of DATA MODUL Aktiengesellschaft Produktion und Vertrieb von elektronischen Systemen, Munich, and its subsidiaries (the Group), which comprise the consolidated balance sheet as of 31 December 2025, the consolidated income statetion "other information" to our Auditor's report.

• and of its financial performance for the financial year from 1 January 2025 to 31 December 2025, and
• the accompanying group management report as a whole provides an appropriate view of the Group's position. In all material respects, this group management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our opinion on the group management report does not cover the content of the parts of the group management report mentioned in the section "other information".

For fiscal year 2025 the domestic subsidiary DATA MODUL Weikersheim GmbH utilized all available exemptions per Section 264 (3) of the German Commercial Code (HGB).

Executive and Supervisory Boards

Compensation paid to members of key management positions (Supervisory and Executive Board members) totaled 596 thousand euros (previous year: 734 thousand euros). This amount breaks down into 513 thousand euros of compensation due short-term (previous year: 661 thousand euros), and 83 thousand euros of compensation due longterm (previous year: 73 thousand euros).

Total compensation paid to Executive Board members for performance of their duties at the parent company and Group-wide totaled 506 thousand euros (previous year: 644 thousand euros). This amount includes performancerelated components amounting to 166 thousand euros (previous year: 295 thousand euros) and 83 thousand euros of compensation due long-term (previous year: 73 thousand euros).

The Supervisory Board members receive a fixed fee for the performance of their duties. The total fee amount is 90 thousand euros (previous year: 90 thousand euros) As of the balance sheet date, this amount was included in Other Current Liabilities.

Former Executive Board members and their surviving dependents received total compensation of 46 thousand euros (previous year: 46 thousand euros). The DBO for all pension commitments to former members of the Executive Board amounted to 302 thousand euros as of the reporting date (previous year: 318 thousand euros).

Executive Board member:

Dr. Florian Pesahl, Munich, CEO

Supervisory Board members:

• Richard A. Seidlitz, Chair
• Salesh Rampersad, Vice Chair
• Eberhard Kurz (employee), Employee Representative

Auditors' fees

The Company recorded fees for auditing services in the amount of 190 thousand euros in accordance with Sec. 314 (1) No. 9a of German Commercial Code (previous year: 190 thousand euros). Tax consultancy expenses as per Sec. 314 (1) No.9c German Commercial Code in the amount of 0 thousand euros (previous year: 0 thousand euros) were

recorded through profit or loss, as well as other services as per Sec. 314 (1) No. 9d German Commercial Code in the amount of 0 thousand euros (previous year: 25 thousand euros).

Events after the reporting period

In an ad-hoc release on October 16, 2025, DATA MODUL AG announced, among other things, that the Company had hired J.P. Morgan Securities plc to consult on strategic options for repositioning the company in the market, which may include the majority shareholder selling a majority stake in the company. This review will continue into 2026. In light of the escalating geopolitical situation in the Middle East (including the USA/Israel and Iran), there are fundamental risks to global supply chains, energy prices and financial and commodity markets. At the time of reporting, the course, duration and specific effects cannot be reliably predicted. A reliable quantitative assessment of potential effects is not currently possible. The company is continuously monitoring developments and assessing potential implications for its domestic and international business as part of its established risk and opportunity management processes. We are unaware of any further significant events that have occurred after the end of the fiscal year which would have had a major influence or impact on the Company's financial position, financial performance and/or cash flows.

Corporate Governance Declaration

In March 2026 the Executive and Supervisory Boards issued the declaration per Section 161 of the German Stock Corporation Act (AktG), noting what DCGK recommendations (outlined by the Government Commission on German Corporate Governance Code) have been complied with and will be in future. The declaration is publicly available on the DATA MODUL AG website, www.data-modul.com.

Munich, March 19, 2026

Dr. Florian Pesahl Chief Executive Officer DATA MODUL AG

We were able to satisfy ourselves that the systems and processes put in place and the accounting policies applied are appropriate and that the estimates and assumptions made by the legal representatives regarding the accounting of the capitalized costs to fulfil a contract are sufficiently justified and reasonable.

Other Information

The legal representatives or the Supervisory Board are responsible for the other information. The other information comprises the following parts of the Group management report that have not been audited:

• The corporate governance statement pursuant to § 289f and § 315d of the German Commercial Code (HGB), to which reference is made in the group management report
• the non-financial statement included in the chapter 6 "nonfinancial disclosures" in the group management report pursuant to § 315b and c in conjunction with sections 289b to e of the HGB,
• The remuneration report in accordance with § 162 AktG, to which reference is made in the group management report.

The other information also includes:

• the assurances pursuant to § 297 (2) sentence 4 and § 315 (1) sentence 5 of the German Commercial Code (HGB) on the consolidated financial statements and the Group management report
• the report of the Supervisory Board, and
• the other parts of the Annual Report without further crossreferences to external information - with the exception of the audited consolidated financial statements and Group management report and our auditors' report.

The legal representatives and the Supervisory Board as a whole are responsible for the remuneration report. The Supervisory Board is responsible for the Report of the Supervisory Board. Otherwise, the legal representatives are responsible for the other information.

Our audit opinions on the consolidated financial statements and the group management report do not cover the other information, and accordingly we do not express an audit opinion or any other form of conclusion on it.

In connection with our audit, our responsibility is to read the other information and to consider whether the other information

• is materially inconsistent with the consolidated financial statements, with the group management report or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.

Responsibilities of the executive directors and the Supervisory Board for the consolidated financial statements and the group management report

The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to § 315e (1) HGB, and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i. e., fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting, 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 executive directors are responsible for the preparation of the group management report that, as a whole, provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a group management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the group management report.

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

1) Valuation of inventory

Related disclosures in the annual financial statements For the applied accounting and valuation principles for inventories, please refer to the information in the notes in chapter 4, Accounting and valuation methods - Inventories.

Description of the Audit matter and risks for the audit

Inventories represent a significant part of DATA MODUL AG's assets. The valuation of inventories, in particular of semifinished and finished goods, is complex. Due to the general economic uncertainties, price risks can arise on the procurement and sales markets. Within the framework of the valuation routines, there is scope for discretion in estimating the marketability of certain inventories. Against this background and due to the complexity of the measurement principles for inventories, the valuation of the inventories were a Key audit matter within the scope of our audit.

Audit approach and results

Within the scope of our audit, we analyzed the processes implemented by the legal representatives as well as the accounting and valuation guidelines for the valuation of inventories for possible risks of error and obtained an understanding of the stages of the process. In addition, we assessed the design of the controls implemented by the legal representatives for the valuation of inventories for their basic effectiveness, and we additionally tested certain particularly important controls for their operational implementation. As part of the audit of the ERP system, we performed a system audit of the automated inventory valuation routines. We also questioned the management of DATA MODUL AG and other employees regarding the scope for discretion in determining the marketability discounts. In order to identify anomalies, we analyzed the write-downs over the course of the year and in comparison, to the previous year. We also tested the valuation of inventories on a sample basis.

We were able to satisfy ourselves that the systems and processes put in place and the accounting policies applied are appropriate and that the estimates and assumptions made by the legal representatives are sufficiently justified and reasonable to ensure the proper valuation of inventories.

2) Recognition, measurement and amortization of capitalized costs to fulfil a contract

Related disclosures in the consolidated financial statements and the group management report

For further information on the recognition and measurement policies applied regarding the recognition, measurement and amortization of capitalized costs to fulfil a contract, please refer to the disclosures in the notes to the consolidated financial statements in section 4. Recognition and measurement methods "Significant judgments, estimates and assumptions – revenue from contracts with customers", "Revenue from contracts with customers and costs to fulfill a contract" as well as section 5. Notes to the Statement of Income "Revenues" and section 6. Notes to the Statement of Financial Position "Capitalized costs to fulfill a contract" and "Contract liabilities".

Description of the Audit matter and risks for the audit

Revenue from contracts with customers is based on various agreements that also contain development services related to series orders. The recognition, measurement and amortization of capitalized costs to fulfil a contract is subject to judgment and estimates made by the executive directors of DATA MODUL AG. It has to be assessed whether the development services represent a distinct performance obligation, a performance obligation to be bundled with series production or an activity to fulfill an order for series production. In addition, the measurement and amortization of capitalized costs to fulfil a contract are based on estimates of the expected term of the contract to which these development costs are to be allocated. Against this background, the recognition, measurement and amortization of capitalized costs to fulfil a contract was a key audit matter in our audit.

Audit approach and results

We verified whether the accounting policies of DATA MODUL AG regarding the capitalized costs to fulfil a contract provide a suitable basis for the IFRS consolidated financial statements. In order to identify anomalies, we analyzed the capitalization and amortization of the capitalized costs to fulfil a contract in the course of the year. We compared the capitalized costs and amortization of selected projects with the customer contracts and timeline of the series production related to these development costs and other project documents of the Company.

We also interviewed the executive directors of DATA MODUL AG and other employees with regard to the status of the contract-specific development and the measurement of the capitalized costs to fulfil a contract. We reconciled the capitalized costs to the time sheets and analyzed the hourly rates. In addition, we performed a margin analysis for selected customer contracts in order to identify the need to recognize impairment losses on capitalized costs to fulfil a contract. Furthermore, we reviewed the completeness of the disclosures pursuant to IFRS 15 in the notes to the consolidated financial statements.

Auditor's responsibilities for the audit of the consolidated financial statements and of the group management report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the group management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our opinions on the consolidated financial statements and on the group management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this group management report.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the consolidated financial statements and of the group management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the group management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of these systems.

• evaluate the appropriateness of accounting policies used

by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.

• conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, 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, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the group management report or, if such disclosures are inadequate, to modify our respective opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
• evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to § 315e (1) HGB.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities 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 remain solely responsible for our audit opinions.
• evaluate the consistency of the group management report with the consolidated financial statements, its conformity with [German] law, and the view of the Group's position it provides.
• perform audit procedures on the prospective information presented by the executive directors in the group management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

requirements, and communicate 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 applied to eliminate independence threats.

Assurance Opinion

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with the relevant independence format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated financial statements and the accompanying group management report for the financial year from 1 January to 31 December 2025 contained in the "Report on the audit of the consolidated financial statements and of the group management report" above, we do not express any assurance opinion on the information contained within these renderings or on the other information contained in the file identified above.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter. OTHER LEGAL AND REGULATORY REQUIREMENTS Report on the assurance on the electronic rendering, of the consolidated financial statements and the group manage-We conducted our assurance work on the rendering, of the consolidated financial statements and the group management report, contained in the file identified above in accordance with § 317 (3a) HGB and the IDW Assurance Standard: Assurance on the Electronic Rendering, of Financial Statements and Management Reports, Prepared for Publication Purposes in Accordance with § 317 (3a) HGB (IDW AsS 410) (06.2022) and the International Standard on Assurance Engagements 3000 (Revised). Our responsibility in accordance therewith is further described in the "Group auditor's responsibilities for the assurance work on the ESEF documents" section. Our audit firm has applied the quality management standard requirements of the quality manage-

In our opinion, the rendering of the consolidated financial statements and the group management report contained in the abovementioned electronic file and prepared for publication purposes complies in all material respects with the requirements of § 328 (1) HGB for the electronic reporting

ment report, prepared for publication purposes in accordance with § 317 (3A) HGB ment at Audit companies (IDW QMS 1 (09.2022).

We have performed assurance work in accordance with § 317 (3a) HGB to obtain reasonable assurance about whether the rendering of the consolidated financial statements and the group management report (hereinafter the "ESEF documents") contained in the attached electronic file "DATA_MODUL_AG_KAuKLB_ESEF-2025-12-31-de.xbri" (MD5-Hashwert: e226fca1985a89b4ab3ba6a385d1625c) and prepared for publication purposes complies in all material respects with the requirements of § 328 (1) HGB for the electronic reporting format ("ESEF format"). In accordance with German legal requirements, this assurance work extends to the conversion of the information contained in the consolidated financial statements and the group management report into the ESEF format and therefore relates neither to the information contained within these renderings nor to any other information contained in the file identified above. The executive directors of the Company are responsible for the preparation of the ESEF documents including the electronic rendering of the consolidated financial statements and the group management report in accordance with § 328 (1) Sentence 4 No. 1 HGB and for the tagging of the consolidated financial statements in accordance with § 328 (1) Sentence 4 No. 2 HGB. In addition, the executive directors of the Company are responsible for such internal control as they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional noncompliance with the requirements of § 328 (1) HGB for the electronic reporting format.

Basis for the assurance opinion

Responsibilities of the executive directors and the Supervisory Board for the ESEF documents

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

Group auditor's responsibilities for the assurance work on the ESEF documents

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of § 328 (1) HGB. We exercise professional judgment and maintain professional skepticism throughout the assurance work. We also:

• identify and assess the risks of material intentional or unintentional non-compliance with the requirements of § 328 (1) HGB, design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
• obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.
• evaluate the technical validity of the ESEF documents, i.e. whether the file (made available,) containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, in the version in force at the date of the financial statements, on the technical specification for this electronic file.
• evaluate whether the ESEF documents enables an XHTML rendering with content equivalent to the audited consolidated financial statements and of the audited group management report.
• evaluate whether the tagging of ESEF documents with Inline XBRL technology (iXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in force at the date of the financial statements, enables an appropriate and complete machine-readable XBRL copy of the XHTML rendering.

Other information according to Art. 10 EU-APrVO

We were elected as group auditor by the Annual General Meeting on 8 May 2025. We were appointed by the Supervisory Board on 25 November 2025. We have been the group auditor of DATA MODUL AG without interruption since financial year 2021.

We declare that the opinions expressed in this auditor's report are consistent with the additional report to the Supervisory Board pursuant to Art. 11 EU-APrVO (audit report [Prüfungsbericht]).

OTHER MATTERS - USE OF THE AUDIT OPINION

Our audit opinion should always 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 converted to the ESEF format including the versions to be published in the Federal Gazette - are merely electronic reproductions of the audited consolidated financial statements and the audited group management report and do not replace them. In particular, the ESEF opinion and our audit opinion contained therein can only be used in conjunction with the audited ESEF documents provided in electronic form.

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT The auditor responsible for the audit is Stanimir Ivanov.

Munich, March 19, 2026

Forvis Mazars GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Christian Schönhofer Stanimir Ivanov Wirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)

Management Representation

I represent, to the best of my knowledge and in accordance with the applicable accounting principles for Consolidated Financial Statements, that the Consolidated Financial Statements present a true and fair view of the Group's financial position, financial performance and cash flows, and that the Group Management Report describes fairly, in all material respects, the Group's business performance, results and financial position, as well as significant risks and opportunities of relevance to the Group during the remainder of the fiscal year.

Munich, March 19, 2026

Dr. Florian Pesahl Chief Executive Officer DATA MODUL AG

Financial Calendar 2026

on May 11, 2026
on May 11, 2026
on August 7, 2026
on November 6, 2026

The DATA MODUL 2025 Annual Report is available in German and English.

Further information about DATA MODUL:

DATA MODUL AG

Investor Relations Landsberger Strasse 322, D-80687 Munich Tel. +49-89-56017-105, Fax +49-89-56017-102 E-mail: InvestorRelations@data-modul.com Internet: www.data-modul.com

Photos:

Dennis König, München Christine Singer, München

Translated by: W. Sam Stallard, M.A., staatlich anerkannter Übersetzer und Dolmetscher, stallard.translator@gmail.com

Printing: GC Digitaldruck Guido Coenen

DATA MODUL AG

Landsberger Str. 322, 80687 Munich, Germany Phone.: +49 89 56017 0, Fax +49 89 5 60 17 119 www.data-modul.com