Data Modul AG

Earnings Release • Aug 8, 2025

Dear Shareholders,

Earnings for the second quarter of 2025 came in lower for DATA MODUL year-over-year due to continuing economic problems and ongoing competitive pressure from Asia.

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Orders received rose 3.4% in the second quarter to 51.5 million euros (previous year: 49.8 million euros). Versus the first half of last year orders received increased 4.0% to 104.0 million euros (previous year: 100.1 million euros). Second-quarter revenue was 5.5% higher year-over-year at 53.8 million euros (previous year: 51.0 million euros). The half-year revenue figure was down 5.6% year-over-year to 108.1 million euros (previous year: 114.5 million euros). Order backlog declined 12.9% year-over-year for the quarter to 130.6 million euros (previous year: 150.0 million euros).

EBIT for the second quarter of 2025 fell 126.7% to -0.4 million euros due to declining business as well as significant currency effects (previous year: 1.5 million euros) for an EBIT margin of -0.7% (previous year: 2.9%). For the half-year, EBIT fell 141.6% to -2.3 million euros (previous year: 5.6 million euros), for an EBIT margin of -2.2% (previous year 4.9%). Net income for the second quarter of 2025 fell 145.5% year-over-year to -0.4 million euros (previous year: 0.9 million euros). Net income for the period ending June 30, 2025 was 178.2% lower year-over-year at -2.8 million euros (previous year: 3.6 million euros).

Management still believes DATA MODUL is well-prepared for economically challenging times thanks to the firm's long-term strategy, which will continue to be systematically followed. A range of cost-cutting steps have already been taken in response to the current market uncertainty.

Interim Group Management Report

1. General economic conditions

Following a brief period of relative stabilization in early 2025, the global economic environment deteriorated significantly over the course of the year. The global economy continues to be impacted by geopolitical tensions, increasing protectionism and a general reluctance to invest in capital goods. The introduction of new trade barriers, by the US in particular, is significantly slowing world trade and hampering economic recovery. The EU economy is sluggish, especially the large national economies of Germany, France and Italy. Structural challenges including an aging population, high energy costs and increasing geopolitical fragmentation are undermining growth prospects. The European Central Bank (ECB) has suspended its planned round of interest rate cuts in light of declining inflation, emphasizing the importance of monetary policy restraint. Financing costs thus remain high, slowing capital expenditure in many Member States. The economic situation in Germany remains troubled, with manufacturing output showing a mixed picture. Machine and industrial equipment makers are suffering particularly from declining orders, weak foreign demand and a high level of regulatory uncertainty. Capacity utilization is below the long-term average, and willingness to invest in capital goods remains subdued. The electrical/electronic industry, being closely bound to the fortunes of manufacturing customer industries, has been distinctly impacted by this development. In June the ifo business climate index rose to a value of 88.4, up from 87.5 in May. Business confidence regarding the months ahead is thus up slightly despite the continuing problematic overall economic situation. The global economic environment in which DATA MODUL operates will remain fraught with complexity and uncertainty, creating challenges that we will have to face.

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	04/01 -	04/01 -		01/01 -	01/01 -
	06/30/2025	06/30/2024	Change	06/30/2025	06/30/2024	Change
Total revenue	53,752	50,994	5.4%	108,115	114,525	-5.6%
Displays	31,328	30,492	2.7%	64,426	69,432	-7.2%
Systems	22,424	20,502	9.4%	43,689	45,093	-3.1%
Orders received	51,528	49,793	3.5%	104,054	100,071	4.0%
EBIT 1)	(378)	1,492	-125.3%	(2,325)	5,587	-141.6%
EBIT margin2)	-0.7%	2.9%	-124.1%	-2.2%	4.9%	-144.9%
Net income for the period	(410)	897	-145.7%	(2,846)	3,636	-178.3%
Capital expenditure 3)	758	663	14.3%	1,261	1,987	-36,5%
Employees 4)	533	523	1.9%	533	523	1.9%
Earnings per share
(in euros)	(0.12)	0.25	-145.6%	(0.81)	1.03	-178.3%
Outstanding shares –
Basic	3,526,182	3,526,182	0.0%	3,526,182	3,526,182	0.0%

2. Key figures

1) EBIT: Earnings before interest and taxes

2) EBIT margin: EBIT relative to revenue

3) Capital expenditure: Investments in intangible assets and property, plant and equipment

4) Employees: Number of employees as of the reporting date

All figures in KEUR except for number of employees, earnings per share and number of shares

3. Business results

DATA MODUL recorded revenue of 53,752 thousand euros for the second quarter of 2025 (previous year: 50,994 thousand euros), up 5.4% year-over-year. In a half-year view, revenue declined 5.6% to 108,115 thousand euros from 114,525 thousand euros in the previous year. The Displays business segment recorded revenue of 31,328 thousand euros in the second quarter (previous year: 30,492 thousand euros), and the Systems division recorded revenue of 22,424 thousand euros (previous year: 20,502 thousand euros). Orders received rose 3.5% for the Group versus the same quarter last year to 51,528 thousand euros (previous year: 49,793 thousand euros). The cyclical decline in revenue in the first half of the year visited the German market in particular. Revenue from other European markets increased however, boosting the export rate to 57.8% (previous year: 53.4%).

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4. Earnings

The economic environment remains challenging for DATA MODUL given the overall modest growth of the global economy and revenue declining across all industries and for German mechanical engineering in particular. The Europe region was the exception to this trend, where revenue for the first half of the year rose. EBIT for the second quarter of 2025 was -378 thousand euros (previous year: 1,492 thousand euros). This resulted in EBIT margin narrowing to -0.7% (previous year: 2.9%). Unfavorable exchange rate developments were a significant influencing factor. For the half-year, EBIT fell 141.6% to -2,325 thousand euros (previous year: 5,587 thousand euros), and EBIT margin came in at -2.2% (previous year 4.9%). The Displays business segment recorded EBIT of -942 thousand euros (previous year: 384 thousand euros) while the Systems segment recorded EBIT of -1,383 thousand euros (previous year: 5,203 thousand euros). Net income for the second quarter of 2025 fell 145.7% to -410 thousand euros (previous year: 897 thousand euros). The year-todate income recorded as of June 30, 2025 of -2,846 thousand euros was down 178.3% year-over-year (previous year: 3,636 thousand euros), for earnings per share of -0.81 euros (previous year: 1.03 euros). The financial result includes financial income and expenses from derivative financial instruments measured at fair value through profit or loss on embedded foreign currency derivatives. Net income of 422 thousand euros was recorded from these embedded derivatives (previous year: net expense of 136 thousand euros).

5. Balance sheet

The balance sheet total decreased by 7,190 thousand euros since calendar year-end to 202,880 thousand euros (December 31, 2024: 210,071 thousand euros). On the assets side of the balance sheet, this decrease was largely attributable to lower inventories and cash and cash equivalents. On the liabilities and equity side, the decline in the balance sheet total resulted primarily from lower trade accounts payable and lower equity from the negative net income for the 2025 period.

Cash flow from operating activities came to -1,637 thousand euros as of June 30, 2025 (previous year: 14,498 thousand euros), primarily reflecting decreased trade payables and negative income for the period. Investments in intangible assets and property, plant and equipment in the first half of 2025 resulted in cash flow from investing activities of -1,261 thousand euros (previous year: -1,987 thousand euros). Cash flow from financing activities, after cash outflows for the dividend distribution and for leases, amounted to -1,631 thousand euros for the first half of 2025 (previous year: -10,289 thousand euros). At the reporting date the Group held 15,840 thousand euros in cash and cash equivalents (December 31, 2024: 20,428 thousand euros).

At the end of the second quarter of 2025 DATA MODUL had an equity ratio of 72.3% (December 31, 2024: 71.9%). The Group thus remains solid financially, having sufficient liquidity.

6. Capital expenditure

Capital expenditures in the first half of 2025 totaled 1,261 thousand euros (previous year: 1,987 thousand euros). A large part of this investment was made to expand production and logistics capacity at the site in Lublin (Poland) and the updating of the ERP system. Capital expenditures planned for this fiscal year primarily concern IT and maintenance and repairs at production sites. We will continue investing in research and development to ensure that we remain competitive.

7. Number of employees

The Group had 533 employees as of June 30, 2025 (previous year: 523). The number of temporary and agency workers employed was reduced from 97 at the end of 2024 to 43 as of June 30, 2025.

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8. Opportunities and risks

In fiscal year 2025 DATA MODUL will remain focused on growth in its core competency areas: hardware, software and services. Global economic trends, exchange rate movements, rising 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. Currently, there are no apparent going-concern risks for the DATA MODUL Group. No significant changes have occurred vis-a-vis the information provided in the Risks and Opportunities section of the 2024 Annual Report.

9. Events after the reporting period

We are not aware of any significant events occurring after the reporting date of June 30, 2025 which would have had a major influence or impact on the Company's earnings or balance sheet.

10. 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 this time 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.

Economic conditions are unfavorable going into the second half of 2025, with political uncertainty, trade warring, rising tariffs and persistent inflation putting pressure on global markets and making business planning more difficult. The US Federal Reserve (Fed), the European Central Bank (ECB) and other major central banks will likely leave key interest rates unchanged through yearend given the degree of economic uncertainty, as inflation remains moderate. The global economy is projected to grow at a rate of 2.3% year-over-year in 2026.

There are increasing signs of the US economy slowing. High budget deficits, protectionist measures and an unclear monetary policy stance have undermined the economic strength and attractiveness of the dollar area. In the short term however, declining imports will likely support economic growth there. The Fed remains in waitand-see mode despite tariffs thus far having had little inflationary effect. An initial interest rate cut will not likely be seen until mid-2026. Leading economic research institutes are forecasting GDP growth of 1.1% the US in 2026.

The ongoing war in Ukraine and major dependence on imported energy make the EU vulnerable to oil price fluctuations. In June the EU launched a 150 billion euro loan instrument as part of the Readiness 2030 plan to strengthen European defense capability. Initial disbursements are expected in the second half of 2025. Customs negotiations with the United States remain a key issue, both sides will be significantly affected if talks break down, even though the US is under the most pressure to reach agreement. The ECB continues to rely on a data-driven approach to navigate the uncertainties around geopolitical risks and tariffs. Economists are forecasting 1.5%. growth for the euro zone in 2026.

In June, the German Federal Cabinet approved a growth stimulus package with a volume of 46 billion euros, to remain in place through 2029. Key points include enhanced investment depreciation, electric company car subsidies and a gradual corporation tax reduction. The stimulus package is expected to be passed into law without any significant changes before the legislative summer break. The GDP forecast for 2025 has been raised to 0.2% on robust economic data for the second quarter and an upward revision of the Q1 figures (0.4% versus the previous quarter). For 2026 economists estimate GDP growth of 1.4%.

The high level of uncertainty worldwide creates a challenging market environment for DATA MODUL, like most other enterprises. Nonetheless, the Group intends to continue systematically executing on its long-term strategy program as a successful path to follow throughout good times and bad for the economy. Given the current orders situation and how business has been going thus far, our key figures for fiscal year 2025 are expected to be in line with our announced estimates.

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11. Related party disclosures

Per a disclosure dated April 11, 2017, ARROW Central Europe Holding Munich GmbH, Neu-Isenburg, holds approximately 69.2% of voting rights in DATA MODUL AG. The trade relationships with the ARROW Group involve purchases and sales at arm's length.

Consolidated Statement of Financial Position as of June 30, 2025

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ASSETS	06/30/2025	12/31/2024
Non-current assets
Goodwill	2,419	2,419
Intangible assets	3,322	3,194
Property, plant and equipment	19,842	21,149
Right-of-use assets	13,639	14,411
Capitalized costs to fulfill a contract	7,422	7,657
Deferred tax assets	772	745
Total non-current assets	47,416	49,575
Current assets
Inventories	95,069	95,847
Trade accounts receivable
including impairments	27,561	29,509
(2025: 53; 2024: 62)
Contract assets	4,411	4,563
Tax receivables	1,705	2,779
Other current assets	5,479	4,411
Other current financial assets	5,399	2,959
Cash and cash equivalents	15,840	20,428
Total current assets	155,464	160,496
Total assets	202,880	210,071

LIABILITIES AND SHAREHOLDERS' EQUITY	06/30/2025	12/31/2024
Shareholders' equity
Capital stock no-par-value bearer shares
(issued and outstanding: 3,526,182 as of	10,579	10,579
06/30/2025 and 12/31/2024)
Capital reserves	24,119	24,119
Retained earnings	111,841	115,110
Other reserves	149	1,307
Total shareholders' equity	146,688	151,115
Non-current liabilities
Pensions and non-current personnel liabilities	1,102	1,102
Non-current provisions	212	216
Non-current contract liabilities	5,525	5,980
Non-current lease liabilities	13,018	13,830
Deferred tax liabilities	1,371	1,506
Total non-current liabilities	21,228	22,634
Current liabilities
Trade accounts payable	12,681	15,877
Current contract liabilities	189	215
Current lease liabilities	3,213	3,069
Taxes payable	3,727	3,743
Current provisions	1,235	1,852
Liabilities due to financial institutions	0	3
Other current liabilities	8,138	7,395
Other current financial liabilities	5,781	4,169
Total current liabilities	34,964	36,322
Total liabilities	56,192	58,956
Total liabilities and shareholders' equity	202,880	210,071

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Consolidated statement of income

	04/01 – 06/30/2025	04/01 – 06/30/2024	01/01 – 06/30/2025	01/01 – 06/30/2024
Revenue	53,752	50,994	108,115	114,525
Cost of sales	(45,416)	(41,683)	(91,778)	(92,386)
Gross margin	8,336	9,311	16,337	22,139
Research and development expenses	(1,723)	(1,572)	(3,731)	(3,330)
Selling and general
administrative expenses	(6,991)	(6,247)	(14,931)	(13,222)
Earnings before interest and taxes (EBIT)	(378)	1,492	(2,325)	5,587
Financial income	461	5	517	9
Financial expenses	(296)	(281)	(603)	(853)
Earnings before taxes for the period	(213)	1,216	(2,411)	4,743
Income tax expense	(196)	(319)	(435)	(1,107)
Net income for the period	(410)	897	(2,846)	3,636
Earnings per share – basic	-0.12	0.25	-0.81	1.03
Earnings per share – diluted	-0.12	0.25	-0.81	1.03
Weighted average number of shares outstanding – basic	3,526,182	3,526,182	3,526,182	3,526,182
Weighted average number of shares outstanding – diluted	3,526,182	3,526,182	3,526,182	3,526,182

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

Consolidated Statement of Cash Flows

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	01/01 – 06/30/2025	01/01 – 06/30/2024
Cash flows from operating activities
Net income for the period	(2,846)	3,636
Non-cash expenses and income
Income tax expense	435	1,107
Depreciation, amortization and impairments	5,720	3,569
Provisions for bad debts	0	321
Net interest	91	708
Net loss (+) / income (-) from embedded derivatives measured at fair value through profit or loss	(6)	136
Other non-cash expenses and income	(251)	(125)
Changes:
Change in inventories	777	2,250
Change in trade receivables, costs to fulfill a contract and contract assets	377	12,352
Change in other assets	(2,330)	297
Change in trade accounts payable	(3,088)	(6,236)
Other liabilities and contract liabilities	(779)	(2,210)
Income taxes paid	263	(1,307)
Cash flows from operating activities	(1,637)	14,498
Cash flows from investing activities
Capital expenditures with capitalizable development cost	(88)	-184
Capital expenditures on other intangible assets and property, plant and equipment	(1,173)	(1,803)
Cash flows from investing activities	(1,261)	(1,987)
Cash flows from financing activities
Outflows for the redemption portion of lease liabilities	(1,077)	(1,141)
Inflows from current financial liabilities (+)	0	2,002
Outflows from current financial liabilities (-)	(3)	(10,031)
Dividend paid	(423)	(423)
Interest received (+) / paid (-) (net)	(91)	(708)
Other financing activities	(37)	12
Cash flows from financing activities	(1,631)	(10,289)
Effects of exchange rate movements on cash & cash equivalents	(59)	51
Net change in cash and cash equivalents	(4,588)	2,273
Cash and cash equivalents at beginning of the fiscal year	20,428	14,324
Cash and cash equivalents at end of the quarter	15,840	16,597

Consolidated Statement of Changes in Equity

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	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	96,165	917	131,780
Net income for the period				7,108		7,108
Dividend				(423)		(423)
Other comprehensive income (loss)				52		52
Foreign currency					65	65
translation
BALANCE AS OF 06/30/2024	3,526,182	10,579	24,119	102,798	982	138,478
BALANCE AS OF 01/01/2025	3,526,182	10,579	24,119	115,110	1,307	151,115
Net income for the period				(2,846)		(2,846)
Dividend				(423)		(423)
Other comprehensive income (loss)				0		0
Foreign currency translation					(1,158)	(1,158)
BALANCE AS OF 06/30/2025	3,526,182	10,579	24,119	111,841	149	146,688

All figures in KEUR except number of shares

Consolidated Statement of Comprehensive Income

	04/01 – 06/30/2025	04/01 – 06/30/2024	01/01 – 06/30/2025	01/01 – 06/30/2024
Net income for the period	(2,437)	897	(2,846)	3,636
Other comprehensive income (loss) to be
reclassified and reported in profit or loss in
subsequent reporting periods
Exchange rate changes from currency
translation	(849)	43	(1,158)	196
for foreign subsidiaries
Adjustments from currency translation of a net	0	31	0	141
investment in a foreign operation
Comprehensive income after tax	(3,286)	971	(4,004)	3,973

Income tax

Income tax expense breaks down into the following principal items on the consolidated statement of income:

	01/01 – 06/30/2025	01/01 – 06/30/2024
Actual tax expense	(602)	(1,232)
Deferred income taxes	167	125
Income tax expense	(435)	(1,107)

All figures in KEUR

Dividend distribution

	06/30/2025	06/30/2024
Approved and distributed dividends on common stock	423	423

Notes to the financial statements

Principles for preparation of the accounts

The abbreviated consolidated interim financial statements and interim Group management report do not contain all information and disclosures required for preparing consolidated financial statements, and are thus to be interpreted in context with the consolidated financial statements and Group management report dated December 31, 2024.

The same recognition and measurement methods applied to prepare the Consolidated Financial Statements dated December 31, 2024 were applied in preparing this abbreviated Consolidated Half-year Financial Report dated June 30, 2025. These interim Consolidated Financial Statements have been prepared in accordance with IAS 34 – Interim Reporting. The new IFRS rules applicable in fiscal year 2024 did not have any material impact on the balance sheet or earnings. These interim financial statements and interim management report have neither been audited as per § 317 of German Commercial Code (HGB) nor reviewed by an auditor.

The Half-year Financial Report is prepared in euro denomination (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.

Segment reporting

For business management purposes, the Group is organized into business units based on products and services. The Group's two reporting segments are Displays and Systems.

Segment results 01/01 – 06/30/2025	Displays	Systems	Group total
Revenue	64,426	43,689	108,115
Net income for the period	(1,350)	(1,496)	(2,846)

Segment results 01/01 – 06/30/2024	Displays	Systems	Group total
Revenue	69,432	45,093	114,525
Net income for the period	(1,200)	4,836	3,636

12. Management Representation

I represent, to the best of my knowledge and in accordance with the applicable accounting principles for interim financial reporting, that the Interim Consolidated Financial Statements present a true and fair view of the Group's financial position, financial performance and cash flows, and that the Interim 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.

Dr. Florian Pesahl Chief Executive Officer

Disclaimer

This Half-year Financial Report contains certain forward-looking statements based on currently discernible and available information as well as assumptions and forecasts made by DATA MODUL management. These are mainly for information purposes and may be identified by terminology such as "believe", "expect", "forecast", "intend", "predict", "plan", "estimate" and/or "strive for". Accordingly, such statements only pertain to the circumstances as of the time of their publication. Various known and unknown risks, uncertainties and other factors may cause the actual results, financial position, business trends or performance of the Company to substantially deviate from the forecast given herein. DATA MODUL assumes no obligation to continue supporting forward-looking statements made, nor to revise such statements in light of events or developments. The Company shall not be liable and offers no guarantee, express or implied, for the updatedness, correctness or completeness of disclosed data and information.

DATA MODUL Aktiengesellschaft

Landsberger Str. 322 80687 Munich Tel. +49 (0)89 560 17-0 Fax +49 (0)89 560 17-119 www.data-modul.com

CALENDAR 2025/2026

Quarterly report as of September 30, 2025 on November 7, 2025

2025 Annual Report March 2026