Fabasoft AG — Interim / Quarterly Report 2023

Aug 11, 2023

Fabasoft AG 2023/2024

3 Months Report 1 April – 30 June 2023

KEY DATA

in kEUR	April – June 2023	April – June 2022	Change
Sales revenue	19,691	15,038	30.9 %
Result before income taxes	2,512	1,632	53.9 %
EBIT (Operating result)1)	2,600	1,677	55.0 %
EBITDA1)	4,485	3,261	37.5 %
Result for the period	1,814	1,118	62.3 %
Equity at end of period	28,185	28,120	0.2 %
Cash flows from operating activities	951	-836	213.8 %
Cash and cash equivalents at end of period	25,307	34,426	-26.5 %
Employees at end of period	466	390	19.5 %
Basic earnings per share (in EUR)	0.15	0.10	50.0 %

1) Definition of the key figures: www.fabasoft.com under investors, business reports, alternative key performance indicators.

TABLE OF CONTENTS

Key Data .	3
Performance Profile .	6
About the Fabasoft Group .	6
Group Structure .	7
Business Model .	8
Product Portfolio .	8
Report on the first three months of the 2023/2024 fiscal year .	14
Business Status .	14
Topics worthy of mention .	15
Outlook .	17
Consolidated Interim Financial Statement .	20
Consolidated Interim Balance Sheet .	20
Consolidated Statement of Comprehensive Income .	21
Consolidated Cash Flow Statement .	22
Consolidated Statement of Changes in Equity .	23
Notes to the Consolidated Interim Financial Statements .	24
Report on the auditors' review .	32
Imprint .	34

PERFORMANCE PROFILE

About the Fabasoft Group

Fabasoft is one of the leading software product companies and cloud service providers for digital document, process and records management in Europe. With the unique Fabasoft PROCECO ecosystem, Fabasoft unites selected powerful software solutions for document-intensive business processes. Numerous well-known private enterprises and public-sector organizations have trusted in the quality and experience of Fabasoft for over three decades.

The products help to digitalize, accelerate, simplify and boost the quality of business processes. They include the receipt, structuring, team and process-oriented provision, processing and handling, secure storage and context-sensitive finding of all business documents as well as the preparation and provision of content for different publication channels. This is complemented by digital, sustainable knowledge transfer based on neuroscientific findings.

Fabasoft offers innovative possibilities for cooperation across organizations and across national frontiers in the form of both informal collaboration and structured workflows. Customers benefit from access that is independent of both location and equipment, efficient knowledge management, applied artificial intelligence as well as from faster and more cost-efficient work completion and improved compliance.

The Fabasoft Group is represented by subsidiaries in Germany, Austria and Switzerland as well as in the USA by the Mindbreeze Corporation (a 100 % subsidiary of Mindbreeze GmbH) and the Xpublisher Inc. (a 100 % subsidiary of Xpublisher GmbH). It is also active in other countries via selected sales and implementation partners. Fabasoft AG, with its headquarters in Linz, Austria, acts as the Group's administrative body.

The company employed a workforce of 466 as at 30 June 2023.

Group structure

Fabasoft Group as of 30 June 2023

Fabasoft AG	Honauerstrasse 4	4020 Linz, Austria
Fabasoft International Services GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Fabasoft R&D GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Fabasoft Austria GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
	Waagner-Biro-Strasse 47	8020 Graz, Austria
Fabasoft Approve GmbH	Honauerstrasse 4	4020 Linz, Austria
Fabasoft Contracts GmbH	Honauerstrasse 4	4020 Linz, Austria
Fabasoft Talents GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Mindbreeze GmbH	Honauerstrasse 2	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Mindbreeze BidForce GmbH	Honauerstrasse 2	4020 Linz, Austria
Fabasoft Deutschland GmbH	THE SQUAIRE 13, Am Flughafen	60549 Frankfurt am Main, Germany
	Potsdamer Platz 1	10785 Berlin, Germany
	Bahnhofstrasse 38	99084 Erfurt, Germany
	Schleissheimer Strasse 6-10	80539 Munich, Germany
Xpublisher GmbH	Schleissheimer Strasse 6-10	80333 Munich, Germany
	Edlmairstrasse 1	94469 Deggendorf, Germany
Fabasoft 4teamwork AG	Dammweg 9	3013 Bern, Switzerland
	Oberer Graben 46	9001 St. Gallen, Switzerland
Mindbreeze Corporation	311 West Monroe Street	Chicago, IL 60606, USA
Xpublisher Inc.	311 West Monroe Street	Chicago, IL 60606, USA

Business Model

The Fabasoft Group's business model includes developing and distributing its own software products, as well as providing related services. Fabasoft software products can be used on a recurring usage fee basis or on a purchase model against one-time software license fees and optional recurring update fees.

Fabasoft addresses the market directly, through its own sales and service organizations and in collaboration with sales and implementation partners. Direct business is carried out via its own companies. These companies have their own project organizations. Where required, these organizations assume the role as general contractor for project implementation. In addition, the group seeks to further establish and develop sales and implementation partnerships.

Product Portfolio

Fabasoft PROCECO

Fabasoft PROCECO – One shared business reality.

Fabasoft PROCECO is a unique, entrepreneurial business process ecosystem. As a curated ecosystem, it combines digital solutions for document-intensive business processes selected by Fabasoft. The technological basis is the powerful and certified Fabasoft Cloud. Fabasoft PROCECO not only opens up new opportunities for customers, but also accelerates the growth of partners, subsidiaries and affiliates through professional support.

Customers benefit from agile PROCECO Solutions tailored to their needs, which can be implemented as well as expanded quickly and ensure efficiency and security. The integrated, cross-organizational process and data world ("One shared business reality") creates a fast, continuous exchange of information and thus increases decision-making reliability while reducing process costs.

The strategic partners draw on established structures, existing resources and a shared network when creating and developing their solutions. They benefit on the one hand from a reliable and sustainable partner, and on the other hand from the professionalization of their organizational and market development and thus from accelerated company growth.

Approve on Fabasoft PROCECO

Fabasoft Approve is a Fabasoft PROCECO Solution for managing technical data and documents in industry, that digitally maps the complete information lifecycle as a "single source of truth". The project partners work together with experts and certification bodies in cross-company testing, release and approval workflows to create complete overall documentation. Computer-supported quality processes based on this effectively, contribute to shortened project processing and reduced administrative effort, by means of standardized inspection plans and checklists. Fabasoft Approve is suitable for handling large-scale industrial projects, including those in the infrastructure sector or in special machinery and plant engineering.

Boards on Fabasoft PROCECO

Fabasoft Boards digital meeting management software is a Fabasoft PROCECO Solution for management-level meeting administration. The functionalities include the planning of meetings, the submission of business-relevant requests and the execution of votes. Subsequently, the audit-proof and unchangeable minutes are created. These can be digitally checked and approved by means of a circulation process. The product enables all meeting participants to prepare for and follow up on meetings efficiently and from any location and supports organizations in meeting their compliance requirements.

Contracts on Fabasoft PROCECO

The contract management software Fabasoft Contracts enables the simple, transparent recording, creation, management and audit-proof archiving of agreements. It also promotes secure collaboration between internal and external stakeholders, including legal matter management.

The intelligent standard product reads out the relevant data, provides templates, text modules and a clause library, and provides the necessary overview for rapid information and decision-making through customizable lists and dashboards. An integrated workflow and deadline management system with reminder function, provides support in concluding contracts and meeting deadlines. In addition, the system's own legally valid digital signature accelerates the signing process. Fabasoft Contracts is used across all industries for all legal matters.

Talents on Fabasoft PROCECO

With Fabasoft Talents, both managers and employees benefit from faster and more transparent HR processes. The digital personnel file reduces administrative effort by automating routine tasks and improves communication between employees and the HR department. In addition, integrated skills management ensures that employees' skills are recorded, validated and evaluated.

The KnowledgeFox learning app serves the effective, verifiable and sustainable transfer of knowledge. The training content is prepared on the basis of neuroscientific findings via a web-based rapid authoring interface with a predefined "microlearning" structure. Short units in the mobile app, adapted to the individual level of knowledge, promote an active, playful learning experience and regular use. The areas of application include hard and soft skills and range from preboarding and onboarding, through sales training and training for external partners, to the training of specialists and managers.

Xpublisher on Fabasoft PROCECO

The Xpublisher multichannel publishing system enables the creation, management and automated publication of different content in any media channel. With the integrated XML editor "Xeditor", media-neutral, semantically structured content can be created and enriched with metadata and assets. Content is published via a single source. In this process, the system's own production planning forms the basis for the individual design and organization of digital or printed outputs for books, magazines, technical documentation and financial reports. As a certified cloud application, Xpublisher on Fabasoft PROCECO thus digitizes the complete publication process in media and publishing houses as well as companies in various industries.

Fabasoft eGov

Fabasoft eGov Ecosystem – One shared government reality.

The Fabasoft eGov ecosystem combines proven software solutions that are perfectly matched to each other and to the needs of public administration. As a product for digital records management, the Fabasoft eGov Suite forms the basis for the digital transformation of public authorities. Together with the personnel file Fabasoft Talents, the contract management Fabasoft Contracts and the automations of Fabasoft Done!, the Fabasoft eGov Ecosystem supports employees in the public sector in their daily work.

Fabasoft eGov-Suite

Fabasoft eGov-Suite is the leading product for digital administration work (e-government) in German-speaking countries. The scope of services covers the capture, workflow-controlled forwarding and processing of documents as well as their complete documentation and audit-proof archiving. Business cases can be processed barrier-free, independent of location and time, also via mobile devices. In addition, specialist applications and online platforms can be easily connected via interfaces. Authorities at federal, state, cantonal and municipal level use the Fabasoft eGov-Suite to increase efficiency and transparency in their areas of activity and for rapid interaction with citizens, companies and other organizations.

Contracts on Fabasoft eGov

Contracts on Fabasoft eGov enables efficient and legally compliant contract management in public administration. The product automates routine tasks such as obtaining approvals or reminding of renewals and comprehensibly documents all phases of the contract lifecycle. Text modules and clause libraries enable standardized template and contract creation. An intelligent search function also ensures that contracts and the required information can be found quickly.

Done! on Fabasoft eGov

Done! on Fabasoft eGov supports administrative staff with innovative automations. Text extraction identifies and extracts relevant information from incoming documents and queries. Through automatic classification, the Fabasoft eGov-Suite understands the context of incoming documents and processes them. The software then uses this data to fill required form fields with suitable suggestions, thus supporting users in everyday tasks. The intelligent assignment of incoming documents and the generation of process suggestions shortens the processing time of inquiries and applications and thus improves service quality.

Talents on Fabasoft eGov

Talents on Fabasoft eGov ensures efficient, digital personnel file management in public administration. The personnel file reduces administrative effort through automation and improves communication between employees and the HR department. The integration of Fabasoft Secomo protects all sensitive data end-to-end with end-to-end encryption and a customizable authorization concept ensures data protection within a public authority. In addition, a simple connection of common e-government applications and standards to Fabasoft Talents can be realized quickly. This makes it possible to work without media discontinuity and carry out personnel processes quickly.

Fabasoft Folio

The Fabasoft Folio business software helps to securely capture, organize and store digital documents and files and to easily digitize business processes. The product is used for the efficient modeling and implementation of individual, document-centric business applications and workflows. The intuitive user interface allows users to access documents from anywhere and at any time. Fabasoft Folio includes numerous interfaces via standard protocols and can thus be quickly integrated into an existing IT landscape. In addition, the tool offers out-of-thebox integrations for common business applications such as SAP.

Fabasoft 4teamwork

OneGov GEVER

The OneGov GEVER software solution is the records management system proven in numerous public administrations in Switzerland. With the user-friendly web application, all business-relevant information can be created, edited and managed throughout the entire lifecycle. In addition, OneGov GEVER offers seamlessly integrated workflows, e-mail archiving, document scanning and individual standard workflows. The intuitive interface enables business cases to be processed barrier-free, independent of location and time, even via mobile devices. In addition to cantons, municipalities and administration-related organizations in Switzerland are increasingly relying on OneGov GEVER, often also as a SaaS solution from the cloud.

teamraum

teamraum enables internal and external project teams to collaborate easily and securely: planning and conducting meetings, jointly storing documents, and exchanging information. The product is easy to use via a web app and can be accessed from any device. All of a team's work tasks can thus be completed completely online. The standardized interface between teamraum and OneGov GEVER also ensures greater efficiency in everyday work.

MYCOLEX 2.0

With the object management software MYCOLEX 2.0, memory and cultural institutions digitize and inventory their holdings and enable location- and time-independent access. MYCOLEX is used by both large and small organizations. Thanks to the flexibility and the standardized data model based on DCMI Metadata Terms, ISAD(G) and the specifications of Spectrum, it is possible to easily map the everyday work and the various fields of work of institutions with different disciplines, such as museums, archives, collections, monument preservation or archaeology. Interfaces to standards databases such as the Integrated Authority File (GND) also allow standardized data to be integrated and reused.

Digital Reading Room DLS

The digital reading room offers archives and memory institutions the possibility to make their historical treasures available to the public and the administration in an appealing way in a web application around the clock. The product is characterized by a service-oriented structure, uses state-of-the-art technologies and integrates archive information systems and digital long-term archives. A well thought-out security system also enables sensitive information to be encrypted and made available in secure rooms.

Mindbreeze

Mindbreeze Business Desicion Insights

With the innovative business ecosystem Mindbreeze BDI (Business Decision Insights) a professional basis was created to perfectly implement unique business models based on Mindbreeze InSpire and Mindbreeze Insight Services.

Mindbreeze BDI supports entrepreneurs in professionalizing their business and increasing their economic success. Thanks to careful selection of entrepreneurs and solutions as well as seamless and consistent integration, Mindbreeze creates an ecosystem that offers customers a first-class user experience.

Mindbreeze BidForce

Mindbreeze BidForce bid management software supports sales teams throughout the entire bidding process from pre-selection and planning to compiling and responding to bid documents. With Mindbreeze InSpire as the technological foundation, insightful answers to relevant business questions can be extracted from both structured and unstructured enterprise data. Artificial intelligence (AI) is used to analyze and enrich company data. As a result, Mindbreeze BidForce is able to identify subject matter experts within the company to help sales teams answer complex questions. In addition, Mindbreeze BidForce enables the creation of structured libraries that store all knowledge about past tenders. As a result, responding to bid documents is much more efficient and the entire bid management process is optimized.

Mindbreeze InSpire

Mindbreeze InSpire (Insight Engine) analyzes information, understands it and thereby enables a variety of use cases such as a consolidated view of corporate knowledge - regardless of where (data sources) and how (structured, unstructured) it is stored. After connecting the relevant corporate data sources via an extensive range of connectors, for example for e-mail or document management systems, archives or even industry-specific specialist applications, Mindbreeze InSpire also analyzes structured and unstructured information using artificial intelligence methods.

This is made possible by the Insight Services developed by Mindbreeze. These combine a wide range of artificial intelligence techniques to understand and link information. They include services in the areas of entity recognition, classification, semantic relation, proactive insight, knowledge extraction and natural language processing. Mindbreeze InSpire provides users with a 360-degree view of the relevant information (documents, structured data, etc.) on the topic they are searching for.

Understanding the information is enabled by Mindbreeze developments in generative AI or Large Language Models (LLM). Mindbreeze InSpire forms the perfect product solution to overcome the typical hurdles in the use of LLMs such as data hallucinations, authorizations, critical intellectual property issues, expensive training costs or generally the technical implementation with confidential corporate data.

For example, the internal enterprise data that has been connected to the Insight Engine with the multitude of connectors serves as the basis for machine learning. Thus, the data and the models trained with it are always owned by the respective company and do not feed into a public model. Both existing and generated content are thus secure, correct, trustworthy and, above all, traceable. Since the solution references the source in addition to the answer, users are able to validate the answers at any time if necessary.

Mindbreeze leaves the selection of additional LLMs to its customers. The Insight Engine is delivered with pretrained models. However, due to the use of Transformer Models and open standards, models from communities such as Huggingface can also be used very easily. If a customer already has a specific model in use, this can also be integrated. In addition, Mindbreeze offers customers qualified support in the selection of a suitable LLM and the associated use cases.

The Insight App Designer developed by Mindbreeze allows users to design their own applications without any programming knowledge and is thus aimed at employees in the respective department. In this way, the different needs of the departments are quickly met by individual search applications and work steps are significantly simplified and shortened. Insight Services and Insight Apps form the basis for supporting companies in the area of applied artificial intelligence for business units.

Mindbreeze InSpire is used in various business areas such as customer service, maintenance and repair, project management or human resource management. The search applications available for this purpose are tailored to the requirements of the areas and thus provide an important basis for supporting business process transformation and in everyday work, for example as a research tool or for creating graphically prepared summaries. In addition, Mindbreeze InSpire provides interfaces and services so that software manufacturers, integrators and developers can easily use the proven Mindbreeze technology in their own products and solutions.

The comprehensive capabilities of Mindbreeze InSpire, especially in semantic search and search applications, combined with the outstandingly short implementation times – given the appliance and service character – also qualify the product particularly well as an essential component of in-house private and hybrid cloud infrastructures.

Technology Products

Fabasoft app.telemetry

Fabasoft app.telemetry provides the ideal basis for service level management and user support by monitoring the availability and response time behavior of applications. The product tracks transactions triggered by requests, thus reflecting their progression through the hardware and software infrastructure and enabling analysis of execution in Fabasoft products and instrumented third-party products. With this information, DevOps and support teams can quickly and accurately identify time-critical or conspicuous sequences and components and take appropriate action. The functions for monitoring the availability of extensive services or individual workflows round off the support of the operational processes.

Fabasoft Mindbreeze Enterprise

Fabasoft Mindbreeze Enterprise is the on-premises full text search for Fabasoft Folio and the Fabasoft eGov-Suite. Fabasoft Mindbreeze Enterprise searches structured content (metadata) as well as documents and displays the results clearly. Existing user rights are taken into account and the application context is preserved. Users continue to work seamlessly with the search hits, because the required application opens directly from the search hit.

Fabasoft Secomo

The Fabasoft Secomo appliance enables secure end-to-end encryption for the Fabasoft Cloud. End-to-end encryption protects data already at the workstation or mobile device. The keys remain exclusively with the appliance operator. The keys are protected with a hardware security module (HSM) that meets FIPS 140-2 Level 4 requirements. Fabasoft Secomo can also be used in combination with Fabasoft Cloud to store corporate certificates for a legally compliant digital signature of PDF documents.

REPORT ON THE FIRST THREE MONTHS OF THE 2023/2024 FISCAL YEAR

Business Status

In the first quarter of fiscal year 2023/2024 (1 April 2023 - 30 June 2023), the Fabasoft Group recorded revenues of EUR 19,691 thousand (EUR 15,038 thousand in the comparable period of the previous year).

With EBITDA1) of kEUR 4,485 (kEUR 3,261 in the corresponding period of the previous year), EBIT1) was at kEUR 2,600 (kEUR 1,677 thousand in the corresponding period of the previous year).

The increase in revenue reflects the continued positive development of recurring revenue and growth in project business.

The ongoing investments in the development and expansion of Fabasoft PROCECO Solutions, higher marketing and personnel expenses as well as the increased sales and travel activities had a negative impact on earnings in the reporting period.

The equity ratio1) of the Fabasoft Group as of the interim balance sheet date 30 June 2023 was 39.0 % (40.7 % as of 30 June 2022).

The Fabasoft Group's cash and cash equivalents changed from EUR 26,563 thousand as of 31 March 2023 to EUR 25,307 thousand as of 30 June 2023.

The Fabasoft Group employed a workforce of 466 on the interim balance sheet date 30 June 2023 (390 as of 30 June 2022).

In the first quarter of 2023/2024 fiscal year the sales revenues of Mindbreeze GmbH and its subsidiaries Mindbreeze Corporation and Mindbreeze BidForce GmbH amounted to kEUR 4,340 (kEUR 3,994 in the corresponding period of the previous year). With an EBITDA1) of kEUR 1,230 (kEUR 1,898 in the corresponding period of the previous year), EBIT1) was kEUR 840 (kEUR 1,469 in the corresponding period of the previous year).

1) Definition of the key figures: www.fabasoft.com under investors, business reports, alternative key performance indicators.

Topics worthy of mention

Fabasoft Approve at the Hannover Messe 2023

The Hannover Messe, one of the world's most important industrial trade fairs, took place this year from April 17 to 21 under the leading theme "Industrial Transformation - Making the Difference". 4,000 exhibitors and 130,000 visitors from all over the world were on site. The Fabasoft Approve team around CEO Andreas Dangl presented the software and the functions of Approve in live demos and with the help of VR glasses. Also the Austrian ambassador in Berlin, Dr. Michael Linhart, visited the Approve booth and informed himself about the possibilities of the data and document management system.

#nextlevel-Talk: "Digital contract management: the 'stepchild' in companies?"

Contracts form the basis for entrepreneurial action. As a result, it requires active management in digital form in order to recognize and exploit the associated potential and risks. It is therefore all the more surprising that knowledge of contract content is often limited to just a few people in the company. What are the advantages of digitizing contract management? What are the reasons for the current relatively low level of application? And what does it take to successfully automate the associated business processes? Georg Harer, lawyer at EY Austria, Sophie Martinetz, Director Legal Tech Center at the Vienna University of Economics and Business, and Robin Schmeisser, Managing Director of Fabasoft Contracts GmbH, discussed these and other questions at the #nextlevel-Talk on 18 April 2023 at k47 Vienna. Jakob Zirm, Head of Economist at the daily newspaper "Die Presse", acted as moderator.

Fabasoft eGov-Suite at the "Digital State" Congress in Berlin

The congress "Digital State" from 25 to 26 April 2023, dealt with questions around the motto: "State in transformation - this is where the administration of tomorrow is being created". Extensive expert forums focused primarily on the topics of digital sovereignty, cloud and online access law (OZG). Interested parties from politics and administration exchanged views on challenges and impulses for a modernized digital everyday life of public authorities. Other important points of discussion were how to cope with the shortage of skilled workers and how to ease the workload of employees in public authorities. Numerous existing and new customers came to the Fabasoft booth to find out about product innovations in the Fabasoft eGov-Suite ecosystem and current projects.

New subsidiary: Mindbreeze BidForce GmbH

On 27 April 2023 the foundation of the Mindbreeze subsidiary "Mindbreeze BidForce GmbH" took place. Felix Breiteneder takes over the management of the company. As the first solution in the Mindbreeze "Business Decision Insights (BDI)" ecosystem and with Mindbreeze InSpire as its technological basis, Mindbreeze BidForce understands company information and is thus able to provide insightful answers to important business questions. For example, Mindbreeze BidForce supports sales teams in creating, editing, and closing bid documents and optimizes the entire bid management process. Managing Director Felix Breiteneder specialized in artificial intelligence and the optimization of business processes through the use of intelligent technologies in his studies. An internship at Mindbreeze was followed by a permanent position as a technical consultant, where he was able to gain numerous experiences in supporting proof of concepts with customers from a wide range of sectors.

Certification of audit security according to IDW PS 880 granted again

KPMG Advisory GmbH again audited Fabasoft Cloud with regard to audit security in accordance with Austrian, German and Swiss commercial and tax law and issued the certificate in accordance with IDW PS 880. Fabasoft Cloud thus complies with the required storage regulations (GAAP-compliant archiving) in Germany, Austria and Switzerland.

BSI C5, SOC2, ISAE 3402 and EU Cloud Code of Conduct

Fabasoft and Mindbreeze again passed the audit at the beginning of 2023 in accordance with the requirements of the current BSI C5:2020 requirements catalog and the SOC-2 Trust Service Criteria (TSC) for Security. The corresponding certificates were issued for the Fabasoft Cloud and for Mindbreeze InSpire SaaS Services. As part of the ISAE 3402 Type 2 audit performed, the design and effectiveness of the corresponding controls (based on COBIT 2019) were tested in relation to the services defined by Fabasoft. In addition, Fabasoft has again achieved Compliance Level 3 of the EU Cloud Code of Conduct (CoC) for the Fabasoft Cloud including the solutions Approve on Fabasoft PROCECO and Contracts on Fabasoft PROCECO.

Luftfahrt-Bundesamt: Migration to the e-file Bund completed

Following the roll-out of the federal e-file last year, the German Federal Aviation Authority Luftfahrt-Bundesamt (LBA) has now also completed the migration of data to the new system. In a total of three productive migrations, more than 50,000 files, 330,000 processes, approximately 1.5 million documents and more than two terabytes of content were migrated.

Change of name KnowledgeFox GmbH to Fabasoft Talents GmbH

The change of name of Knowledgefox GmbH to Fabasoft Talents GmbH as well as the relocation of the registered office from Vienna to Linz took place at the beginning of June 2023. The address of the Fabasoft Talents GmbH Vienna branch remains unchanged at Laxenburger Strasse 2, 1100 Vienna.

Eight out of nine Austrian provinces are working productively with Fabasoft eGov-Suite

Since March 2023, the eighth Austrian province has been actively using the Fabasoft eGov-Suite. As of this date, the first district administration of Burgenland (Eisenstadt-Umgebung) was set productive. At the beginning and middle of May, the district administrative offices of Neusiedl am See and Mattersburg followed. The roll-out is progressing rapidly thanks to an innovative training concept.

BayWa AG digitizes contract management with Fabasoft Contracts

A broad network of suppliers results in tens of thousands of contracts at BayWa AG every year, which have to be actively managed. In order to be able to map the different business processes of the individual divisions of energy, agriculture and construction in an uniform manner and at the same time design them flexibly, the internationally active trading and service company digitized its supplier agreements with Fabasoft Contracts. The decision was made in favor of Fabasoft because of its intuitive usability and high quality and security standards. With the help of transparent workflows and clear document preparation, the company is always informed about all contract contents and deadlines. This also means that current governance and compliance regulations are always taken into account.

Fabasoft eGov Ecosystem and Xpublisher at the Future Congress in Berlin

At this year's Future Congress State & Administration, the leading event for modern and digital Germany, new ways for the (digital) administration of the future were on the agenda from 19 to 21 June 2023 – for the first time at the Westhafen (WECC) Berlin. Key topics included the use of artificial intelligence, the use of low-code/ no-code platforms in the implementation of the OZG (Online Access Act) and sustainability as part of the digital transformation of the public sector. Fabasoft provided information on the product innovations of the Fabasoft eGov ecosystem, including the intelligent automation of processes in Fabasoft Done! as well as on current projects.

Fabasoft at e-Government Conference in Graz

"Austria's way into Europe's digital decade": this was the motto of ADV Austrian Digital Value's e-Government Conference 2023, which took place on 21 and 22 June 2023 at Messe Congress Graz. The European Digital Decade offers the opportunity for Austria to become a pioneer in digital development. Fabasoft is making a significant contribution to this goal in the area of public administration: Eight out of nine Austrian federal states work with ELAK - the digital file management system based on the Fabasoft eGov-Suite. The conference focused on the main topics of the EU's digital compass: government, infrastructure, skills and business.

Outlook

Transformation of the business

Pursuant to a general trend in the software industry as a whole, the software product business of the Fabasoft Group continues to undergo a transformation process: the use of software products is moving away from the model of purchasing user rights for these products against an one-off fee – usually linked to a maintenance contract – more in the direction of an ongoing monthly user fee for cloud services, SaaS offers and/or appliances.

Depending on the target markets, this transformation process is currently developing differently: In public tenders, purchase models for the software are still predominantly in demand. The client then often operates the software in its own data centers with the support of Fabasoft. The majority of private customers are primarily interested in cloud solutions and appliances. The flexibility of the Fabasoft product portfolio continues to support on-premises projects as well as hybrid models, where required.

It must be considered that the structure of the appliance business differs in its nature from the software licence business: the hardware components of the appliances are purchased by Fabasoft or Mindbreeze, the customer undertakes to pay periodically for the use that is agreed for a fixed period of time. The revenue for use is received monthly and the hardware components are also amortized on a monthly basis.

In terms of sales, Fabasoft is continuing its overall efforts to supplement the direct sales model with an indirect, partner-oriented, international sales and marketing model, particularly for Fabasoft PROCECO Solutions and Mindbreeze InSpire.

The Fabasoft PROCECO ecosystem for digital business processes

In line with the growing trend of digital transformation, the focus remains on further developing and expanding Fabasoft PROCECO as an ecosystem for internal and cross-company business processes. Increasing the market presence of existing and future Fabasoft PROCECO Solutions and their visibility in the individual target markets remain key tasks. Fabasoft continues to focus on standardization and rapid deployment in order to meet customer requirements for immediately usable solutions.

The further development of the solutions goes hand in hand with the strategy of establishing Fabasoft PROCECO as an ecosystem for digital business processes, on which solutions from partner companies can also be built. The current and growing market demand for highly scalable and flexible business applications is thus taken into account.

Development of certain expense items

In order to continue the Fabasoft Group's growth course, investments in the 2023/2024 fiscal year will continue to focus on the areas of product innovation, strengthening sales and marketing, as well as expanding the workforce and attracting new talent to take advantage of future opportunities.

In particular, Fabasoft will invest in the further development, sales and marketing of content-focused solution offerings based on Fabasoft PROCECO. In addition to entrepreneurial organic growth opportunities, inorganic options are to be evaluated and exploited.

In the area of public sector clients, Fabasoft is striving to expand its customer base from the federal government, states, cantons and municipalities in Austria, Germany and Switzerland by strengthening sales and marketing through new products and features, additional services and expanding the circle of users.

Another focus of the required investments is the ongoing development of Mindbreeze InSpire: the company is continuously striving to establish and expand a successful international partner infrastructure. This would entail considerable upfront investments, particularly in international marketing, cross-regional presence, partner support and personnel expansion in this segment.

These expansion and growth measures, as well as the expected increase in personnel costs due to the acquisition of new talent and inflation-related salary increases, will continue to impact the profitability of the Fabasoft Group in the 2023/2024 fiscal year.

Conclusion

The Fabasoft Group that successfully implements the core issues of digital transformation with its comprehensive and field-proven range of products and services, will remain promisingly positioned for opportunities, even in a difficult market environment characterized by global political and economic upheavals. In particular, the development of Fabasoft PROCECO Solutions again showed strong growth in the reporting period.

The positive customer response reflects the innovative strength and solutions expertise in the Fabasoft Group. Further development will depend greatly on the extent to which and how quickly this positive market response can be realized in the form of correspondingly large (new) customer orders and further scaling of the business model can be achieved.

Even in a difficult environment, the company intends to take advantage of opportunities as they arise, for example in recruiting high-caliber talent or in pursuing inorganic expansion and growth options.

Furthermore, not least in view of the Group's solid cash position, priority will be given, where appropriate, to pursuing issues judged to be future-oriented and sustainable over short-term profitability considerations.

Consolidated interim balance sheet as at 30 June 2023

Assets in kEUR	Note	30/06/2023	31/03/2023
Non-current assets
Property, plant and equipment	3.1./3.4.	18,176	16,519
Intangible assets	3.1.	7,988	7,443
Other financial assets	3.3.	153	153
Other non-financial assets		314	413
Deferred income tax assets		649	490
		27,280	25,018
Current assets
Trade and other receivables		16,402	15,653
Contract assets		3,213	3,058
Income tax receivables		66	82
Cash and cash equivalents		25,307	26,563
		44,988	45,356
Total assets		72,268	70,374

Equity and liabilities in kEUR	Note	30/06/2023	31/03/2023
Equity	3.2.
Capital and reserves attributable to the Parent Company's equity holders
Share capital		11,000	11,000
Capital reserves		19,555	19,555
Other reserves		-666	-666
Adjustment item for currency conversion		213	115
Retained earnings		-4,133	-5,996
		25,969	24,008
Non-controlling interest		2,216	2,710
		28,185	26,718
Non-current liabilities
Provisions for severance payments		2,758	2,708
Deferred income tax liabilities		582	666
Other payables	3.3./3.4.	7,582	6,965
Investment grants	3.4.	128	139
		11,050	10,478
Current liabilities
Trade and other payables		14,739	12,954
Liabilities for income taxes		1,320	1,472
Contract liabilities	3.4.	16,974	18,752
		33,033	33,178
Total equity and liabilities		72,268	70,374

Consolidated statement of comprehensive income for the first quarter of the 2023/2024 fiscal year

in kEUR	Note	April – June 2023	April – June 2022
Sales revenue	5.	19,691	15,038
Other operating income		40	178
Expenses for purchased services		-1,269	-845
Employee benefits expenses		-10,666	-8,475
Depreciation and amortization expenses	5.	-1,885	-1,584
Other operating expenses		-3,311	-2,635
Operating result	5.	2,600	1,677
Finance income		3	0
Finance expenses		-91	-45
Result before income taxes		2,512	1,632
Income taxes		-698	-514
Result for the period		1,814	1,118
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion		121	24
Other result		121	24
Total result		1,935	1,142
Result for the period attributable to:
Equity holders of the Parent Company		1,662	1,063
Non-controlling interest		152	55
Total result attributable to:
Equity holders of the Parent Company		1,760	1,089
Non-controlling interest		175	53
Diluted and basic earnings per share in terms of the result for the period for result attributable to the equity holders of the Parent Company in the fiscal year (expressed in EUR per share)		0.15	0.10

Consolidated cash flow statement for the first quarter of the 2023/2024 fiscal year

in kEUR	Note	April – June 2023	April – June 2022
Cash flows from operating activities
Operating result		2,600	1,677
Adjustments in non-cash items
Depreciation and amortization expenses	5.	1,885	1,584
Effects from currency conversion		-26	-203
Changes in non-current provisions		49	-194
Changes in other non-financial assets recognized in profit and loss		99	-113
Loss from disposal of property, plant and equipment		205	0
Income from the dissolution of investment grants	3.4.	-11	-17
		4,801	2,734
Adjustments in net current assets
Changes in trade and other receivables (without income tax receivables)		-781	-1,066
Changes in contract assets		-146	-39
Changes in trade and other payables (without income tax and lease liabilities)		1	-796
Changes in contract liabilities		-1,825	-133
		-2,751	-2,034
Cash generated from operations		2,050	700
Interest paid		-83	-16
Income taxes paid		-1,016	-1,520
Net cash generated from operating activities		951	-836
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	3.1.	-2,058	-618
Investment grants received	3.4.	88	0
Net cash used in investing activities		-1,970	-618
Cash flows from financing activities
Redemption of lease liability		-464	-293
Payments from transactions with non-controlling interest	2.2.2.	157	289
Net cash used in financing activities		-307	-4
Changes in cash and cash equivalents		-1,326	-1,458
Development in cash and cash equivalents
Cash and cash equivalents at beginning of period		26,563	35,823
Effect of exchange rates changes		70	61
Decrease		-1,326	-1,458
Cash and cash equivalents at end of period	4.	25,307	34,426

Consolidated statement of changes in equity for the first quarter of the 2023/2024 fiscal year

		Attributable to equity holders of the Parent Company
in kEUR	Note	Share capital	Capital reserves	Other reserves	Adjustment item for currency conversion	Retained earnings	Total	Non controlling interest	Total equity
Balance at 31 March 2023		11,000	19,555	-666	115	-5,996	24,008	2,710	26,718
First time application IAS 12.22 A		0	0	0	0	61	61	0	61
Balance at 1 April 2023		11,000	19,555	-666	115	-5,935	24,069	2,710	26,779
Other result		0	0	0	98	0	98	23	121
Result for the period		0	0	0	0	1,662	1,662	152	1,814
Total result		0	0	0	98	1,662	1,760	175	1,935
Dividend		0	0	0	0	0	0	-686	-686
Transactions with non controlling interest	2.2.2.	0	0	0	0	140	140	17	157
Balance at 30 June 2023	3.2.	11,000	19,555	-666	213	-4,133	25,969	2,216	28,185

		Attributable to equity holders of the Parent Company
in kEUR	Note	Share capital	Capital reserves	Other reserves	Adjustment item for currency conversion	Retained earnings	Total	Non controlling interest	Total equity
Balance at 31 March 2022		11,000	19,555	-950	394	-4,605	25,394	1,860	27,254
Other result		0	0	0	26	0	26	-2	24
Result for the year		0	0	0	0	1,063	1,063	55	1,118
Total result		0	0	0	26	1,063	1,089	53	1,142
Dividend		0	0	0	0	0	0	-565	-565
Transactions with non controlling interest		0	0	0	0	164	164	125	289
Balance at 30 June 2022	3.2.	11,000	19,555	-950	420	-3,378	26,647	1,473	28,120

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 30 JUNE 2023

1) Company details

Fabasoft is a European software manufacturer and provider of cloud services for digital document, process and records management in Europe. With the unique Fabasoft PROCECO ecosystem, Fabasoft unites selected powerful software solutions for document-intensive business processes. Fabasoft's products help digitalize, accelerate, simplify and boost the quality of business processes. They include the receipt, structuring, team and process-oriented provision, processing and handling, secure storage and context-sensitive finding of all business documents as well as the preparation and provision of content for different publication channels. This is complemented by digital, sustainable knowledge transfer based on neuroscientific findings.

Fabasoft AG with its headquarters at Honauerstrasse 4, 4020 Linz, Austria is the Group Parent Company.

Company shares have been quoted in the Prime Standard of the Frankfurt Stock Exchange (WKN (D) 922985).

The reporting period for the consolidated interim financial statements is from 1 April 2023 to 30 June 2023.

2) Accounting policies

2.1. Basis of preparation

The consolidated interim financial statements dated 30 June 2023 were drawn up in compliance with the International Financial Reporting Standard 34 (IAS 34).

The consolidated interim financial statements were drawn up in accordance with generally recognized accounting policies, which require the use of estimates and assumptions. These estimates and assumptions influence the amount and return on assets and liabilities shown in the balance sheet, the disclosed contingent assets and liabilities on the interim balance sheet date as well as the income and expenditures for the period under consideration. Although these estimates are calculated to the best knowledge based on current transactions, actual values may deviate from these estimates.

The same accounting and valuation principles applied for the last consolidated financial statements as at 31 March 2023 were also applied for the preparation of the interim consolidated financial statements.

The consolidated interim financial statements are prepared in thousands of Euros (kEUR), as are entries in the notes.

2.2. Consolidation

The consolidated interim financial statements of subsidiaries included in the interim financial statements were drawn up Group-wide on 30 June 2023 and in accordance with IFRS, as adopted by the EU.

2.2.1. Consolidation scope

As at the interim balance sheet date, 30 June 2023, the following companies in addition to Fabasoft AG, as the Parent Company, have been fully consolidated and are included in the consolidated financial statements:

Entity	Location of Headquarters	Direct share of Fabasoft AG as a %
Fabasoft International Services GmbH	Linz/Austria	100
Fabasoft R&D GmbH	Linz/Austria	100
Fabasoft Austria GmbH	Linz/Austria	100
Mindbreeze GmbH	Linz/Austria	85.5
Fabasoft Talents GmbH	Linz/Austria	100
Fabasoft Approve GmbH	Linz/Austria	80
Fabasoft Contracts GmbH	Linz/Austria	80
Fabasoft Deutschland GmbH	Frankfurt am Main/Germany	100
Xpublisher GmbH	Munich/ Germany	60
Fabasoft 4teamwork AG	Bern/Switzerland	70

Entity	Location of Headquarters	Indirect share of Fabasoft AG as a %
Mindbreeze Corporation	Chicago/USA	85.5
Mindbreeze BidForce GmbH	Linz/Austria	68.4
Xpublisher Inc.	Chicago/USA	60

2.2.2. Changes to the scope of consolidation

A subsidiary of Mindbreeze GmbH, Mindbreeze BidForce GmbH, with its registered office in the political municipality of Linz, was founded on 27 April 2023. Mindbreeze GmbH holds an 80 % interest in this company, the remaining shares are held by the management of Mindbreeze BidForce GmbH.

Full consolidation of Mindbreeze BidForce GmbH was effected for the first time with date of establishment.

On 27 April 2023 Fabasoft AG reduced its holding in Fabasoft Contracts GmbH from 100 % to 80 %. The shares were purchased by the management of Fabasoft Contracts GmbH.

2.2.3. Foreign currency translation

Interim financial statements in foreign currencies have been translated at the average relevant exchange rate. According to this method, the items on the interim balance sheet were translated at the exchange rates valid on the interim balance sheet date, whereas the items on the statement of comprehensive income were translated at the average exchange rate for the reported period. Differences in these currency conversions are recorded in the other result. Exchange differences which may occur when converting transactions and accounting items into foreign currencies are calculated using the valid exchange rate at the time of the transaction or valuation and recognized in profit or loss.

3) Notes to the balance sheet and the consolidated statement of comprehensive income

3.1. Investments

The purchases of property, plant and equipment and intangible assets mainly concern hardware and other office equipment.

3.2. Equity

As at 30 June 2023, the company's share capital was kEUR 11,000 (31/03/2023: kEUR 11,000). It is comprised of 11,000,000 individual shares (31/03/2023: 11,000,000) at a nominal value of EUR 1.00 per share.

The capital reserve amounting to kEUR 19,555 (31/03/2023: kEUR 19,555) affects premiums to the amount of kEUR 17,173 (31/03/2023: kEUR 17,173). The remainder results in an amount of kEUR 2,069 (31/03/2023: kEUR 2,069) from reorganizations and in an amount of kEUR 313 (31/03/2023: kEUR 313) from former options programmes.

Fabasoft AG holds no treasury shares as of the interim balance sheet date of 30 June 2023.

The following resolutions, among others, were made at the Fabasoft AG Annual General Meeting on 3 July 2023:

A dividend of EUR 0.30 per dividend-bearing share shall be paid out for the 2022/2023 fiscal year.

The Managing Board is authorized for the period of 30 months to acquire its own shares pursuant to Section 65 (1) (4) of the Austrian Stock Corporation Act for the purpose of issuing them to employees, company executives and members of the Managing Board of the company or an affiliated company respectively to Section 65 (1) (8) of the Austria Stock Corporation Act and up to a maximum holding of 10 % of the total share capital of the company. The equivalent value permissible at repurchase must not exceed 10 % above and must not be 20 % at the least below the average price at the close of Xetra trading on the Deutsche Börse AG of the last five stock exchange trading days prior to the fixing of the purchase price.

The Managing Board is authorized with the approval of the Supervisory Board to increase the share capital of the company within five years of this amendment to the articles being entered in the company register – possibly in several tranches – by up to nominally EUR 5,500,000.00 through the issue of up to 5,500,000 no-par-value shares both against cash deposit and also pursuant to Section 172 of the Austrian Stock Corporation Act against non-cash contribution to up to EUR 16,500,000.00 and stipulate the conditions of issuance in agreement with the Supervisory Board (authorized capital in the sense of Sections 169 ff Austrian Stock Corporation Act), whereby the Managing Board shall also be authorized to issue the new shares possibly with the exclusion of the subscription rights that the shareholders are otherwise entitled to (Section 170 (2) Austrian Stock Corporation Act).

3.3. Financial instruments

Balance sheet item in kEUR	Category to IFRS 9	Book value	Fair Value – Level I (through profit and loss)	Fair Value – Level III (through profit and loss)	Amortized costs
Other financial assets	At fair value through profit and loss	153	145	8	0
Other payables*	At fair value through profit and loss	1,242	0	1,242	0

The financial instruments measured at fair value on 30 June 2023 break down as follows:

*Book values cannot be adjusted with the respective balance sheet item as this itemization applies only to financial instruments.

The financial instruments on 31 March 2023 broke down as follows:

Balance sheet item in kEUR	Category to IFRS 9	Book value	Fair Value – Level I (through profit and loss)**	Fair Value – Level III (through profit and loss)	Amortized costs
Other financial assets	At fair value through profit and loss	153	145	8	0
Other payables*	At fair value through profit and loss	1,234	0	1,234	0

*Book values cannot be adjusted with the respective balance sheet item as this itemization applies only to financial instruments. **In the recurring evaluation of other financial assets, it was determined that the allocation to "Fair Value - Level I (through profit and loss)" is considered more appropriate. Accordingly, these other financial assets are now presented as "Fair Value - Level I" instead of "Fair Value Level II". The adjustment of the allocation does not lead to any accounting amendment.

Other financial assets relate to securities (investment certificates) to the amount of kEUR 145 (31/03/2023: kEUR 145) and other receivables to the amount of kEUR 8 (31/03/2023: kEUR 8). The fair values of the securities are derived from the current market value. Other receivables result from the aquisition of 4teamwork AG and derive from the valuation at fair value of the contingent purchase price.

Part of the purchase price was paid into an escrow account and will be paid out to the seller by 31 March 2025 at the latest, subject to compliance with the defined key performance indicators and the defined integration steps. The discounted cash flow method was used for the evaluation.

As of the reporting date of 31 March 2023, the defined performance indicators and the defined integration steps have been achieved. Therefore a first part of the contingent purchase price in the amount of TCHF 150 will be paid in the 2023/2024 fiscal year.

The amount reported under other payables measured at fair value constitutes the earn-out component from the acquisition of Xpublisher GmbH. The discounted cash flow method was used for the evaluation.

On attainment of the specific performance indicators, the undiscounted, potentially payable amount in the fiscal years ending on 31 March 2024 or 31 March 2025 is kEUR 1,300 (31/03/2023: kEUR 1,300). Should the specific performance indicators fall short of the targets no earn-out payment is made.

3.4. Further notes to the balance sheet and the consolidated statement of comprehensive income

The contract liabilities resulting from service contracts pursuant to IFRS 15 amounted to kEUR 508 as at 30 June 2023 (31/03/2023: kEUR 264).

The right-of-use assets pursuant to IFRS 16 are reported in the balance sheet item "Property, plant and equipment" and amounted to kEUR 7,881 as at 30 June 2023 (31/03/2023: kEUR 7,106), the leasing liabilities are reported at an amount of kEUR 6,340 as at 30 June 2023 (31/03/2023: kEUR 5,731) in non-current other payables and at an amount of kEUR 1,966 (31/03/2023: kEUR 1,761) in current trade and other payables.

Investment premiums are shown in the balance sheet item "Investment grants". These are grants from the Austrian Federal Government of up to 14 % of the investments made. They were recognized as a liability to the amount of kEUR 128 (31/03/2023: kEUR 139) and to the amount of kEUR 11 (corresponding period of the previous year: kEUR 17) as other operating income due to the dissolution over the period of the useful life of the assets.

4) Consolidated cash flow statement

The cash flow statement has been drawn up according to the indirect method. It shows the change in cash and cash equivalents for the Group during the reporting year through the inflow and outflow of funds.

On the cash flow statement, a differentiation is made between cash flows from operating activities, investment activities and financing activities.

5) Segment reporting

The Group's reporting format is structured according to geographical segments in terms of the location of the assets.

April - June 2023 in kEUR	Austria	Germany	Switzerland	Other countries	Group
Gross sales	13,332	9,554	2,045	2,204	27,135
Less intersegmental sales	-6,733	-566	-49	-96	-7,444
Sales with external customers	6,599	8,988	1,996	2,108	19,691
Operating result	1,398	1,249	276	-323	2,600
Depreciation and amortization expenses	1,244	258	138	245	1,885

Reconciliation in kEUR

Operating result segments	2,600
Financial result Group	-88
Result before income taxes	2,512

April - June 2022 in kEUR	Austria	Germany	Switzerland	Other countries	Group
Gross sales	10,262	7,536	431	2,133	20,362
Less intersegmental sales	-5,137	-98	-29	-60	-5,324
Sales with external customers	5,125	7,438	402	2,073	15,038
Operating result	814	936	-119	46	1,677
Depreciation and amortization expenses	1,013	288	17	266	1,584

Reconciliation in kEUR Operating result segments 1,677 Financial result Group -45

Result before income taxes 1,632

In order to take account of the general trend in the software industry in the reporting – namely the transformation process away from the model of purchasing rights of use against an one-off fee and in the direction of an ongoing monthly usage fee – a breakdown of sales by recurring revenue from ongoing obligations with varying terms or residual terms (recurring revenue) and sales not based on ongoing obligations (non-recurring revenue) follows.

Breakdown of sales by type of contract:

in kEUR	April – June 2023	April – June 2022
Recurring revenue	10,495	8,337
Non-recurring revenue	9,196	6,701
thereof software	244	140
thereof professional services	8,952	6,561
Total	19,691	15,038

Recurring revenue includes in particular software updates, fees for right of use for Mindbreeze InSpire, Fabasoft PROCECO Solutions and recurring professional services (e.g. for support and operation management).

Non-recurring revenue includes one-off licenses (software) and sales of consulting services (professional services).

6) Other statements

6.1. Details of affiliated persons and employees

6.1.1. Average number of employees

	April – June 2023	April – June 2022
Employees	464	389

6.1.2. Managing Board of Fabasoft AG

Prof. Dipl.-Ing. Helmut Fallmann, Linz Ing. Oliver Albl, Haag am Hausruck Matthias Wodniok, Hofheim Wallau

6.1.3. Supervisory Board of Fabasoft AG

em. o. Univ.-Prof. Mag. Dr. Friedrich Roithmayr, Linz (Chairman of the Supervisory Board) FH-Prof.in Univ.Doz.in DIin Dr.in Ingrid Schaumüller-Bichl, Linz Prof. Dr. Andreas Altmann, Innsbruck Mag.a Michaela Schwinghammer-Hausleithner, Linz

6.2. Direct and indirect impacts of the war in Ukraine

Fabasoft does not operate any subsidiaries or branches in Ukraine, the Russian Federation or Belarus, nor does it procure relevant development services from any of these countries. Likewise, there is no relevant end customer or partner business in any of the aforementioned countries. The impact of the war and the associated sanctions and similar measures on the company's customers and partners, for example by impairing supply chains, the overall economic climate, public budgets, etc., and thus possibly subsequently on the company's business, cannot currently be estimated. The increased risk of cyber attacks or other attacks on critical infrastructures cannot be quantified either.

6.3. Climate related risks and opportunities of the Fabasoft Group

The Fabasoft Group is fully aware of its role and responsibility with regard to climate change and is clearly committed to regularly collecting and actively managing its climate-related risks and opportunities taking into consideration the recommendations of the TCFD (Task Force on Climate-Related Financial Disclosures).

The assessment of the residual risk for all identified climate-related risks and opportunities is below the materiality threshold defined internally, so that the overall impact on the business model, income statement and balance sheet of the Fabasoft Group are classified as immaterial.

6.4. Events after the balance sheet date

No significant events in respect of this interim financial statement occurred after 30 June 2023.

Linz, 8 August 2023

Prof. Dipl.-Ing. Helmut Fallmann Chairman of the Managing Board Ing. Oliver Albl Member of the Managing Board Matthias Wodniok Member of the Managing Board

REPORT ON THE REVIEW OF THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMETS

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements of Fabasoft AG, Linz, for the period from 1 April 2023 to 30 June 2023. These condensed consolidated interim financial statements comprise the consolidated interim balance sheet as of 30 June 2023 and the consolidated statement of comprehensive income, the consolidated cashflow statement and the consolidated statement of changes in equity for the period from 1 April 2023 to 30 June 2023 and the condensed notes, summarizing the significant accounting policies and other explanatory notes.

Management is responsible for the preparation of the condensed consolidated interim financial statements in accordance with International Financial Reporting Standards (IFRS's) for Interim Financial Reporting as adopted by the EU.

Our responsibility is to express a conclusion on these condensed consolidated interim financial and third parties. Our liability towards the Company and towards third parties is limited in accordance with Section 275 (2) of the Austrian Commercial Code (UGB).

Scope of review

We conducted our review in accordance with Austrian Standards for Chartered Accountants, in particular in compliance with KFS/PG 11 "Principles of Engagements to Review Financial Statements", and with the International Standard on Review Engagements (ISRE 2410) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

A review of interim financial statements is limited primarily to making inquiries, primarily of Company personnel, responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Austrian Standards on Auditing or International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing came to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Financial Reporting Standards (IFRS's) for Interim Financial Reporting as adopted by the EU.

Linz, 8 August 2023

Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.

Mag. Marion Raninger mp Wirtschaftsprüferin / Certified Public Accountant Mag. Erich Lehner mp Wirtschaftsprüfer / Certified Public Accountant

IMPRINT:

Publisher responsible for the contents:

Fabasoft AG, FN 98699x, Honauerstrasse 4, A-4020 Linz, Austria, Phone: +43 732 606162-0, e-mail: office@fabasoft.com, website: www.fabasoft.com. Copyright © Fabasoft, 2023. All rights reserved. All hardware and software names used are the trade names and/or brands of the respective manufacturers. Microsoft, Windows and the Windows Logo are registered trademarks of Microsoft Corporation in the United States and/or other countries. Adobe, the Adobe logo, Acrobat, the Adobe PDF logo, Adobe Premiere, Creative Cloud, InDesign, and Photoshop are either registered trademarks or trademarks of Adobe in the United States and/or other countries.

Future-related and other statements:

This report contains data which relate to expected future developments. These forward-looking statements are normally but not exclusively paraphrased with words such as "expect", "assume", "plan" etc. If these assumptions on which the statements have been based do not prove true or if risks materialise – such as those mentioned for example in the issue prospectus or in the risk report or if the current situation changes in the future, the actual results may deviate from the result expected at present. The forward-looking statements assert no claim to correctness or completeness, are not updated and should therefore be treated with all due caution.

This report has been complied with the highest degree of diligence and all data published have been checked. Rounding, typesetting and printing errors cannot be excluded, however. The addition of rounded amounts and percentages may result in differences in figures calculated due to use of automatic calculation aids. The translation of the original German version of the report has been included for the convenience of our English-speaking shareholders. The German version is authoritative.

AUSTRIA

Fabasoft Austria GmbH

Honauerstrasse 4 4020 Linz, Austria +43 732 606162-0

Fabasoft Approve GmbH

Honauerstrasse 4 4020 Linz, Austria +43 732 606162-0

Fabasoft Contracts GmbH

Honauerstrasse 4 4020 Linz, Austria +43 732 606162-0

Fabasoft Talents GmbH

Honauerstrasse 4 4020 Linz, Austria +43 732 606162-0

Mindbreeze GmbH

Honauerstrasse 2 4020 Linz, Austria +43 732 606162-0

Mindbreeze BidForce GmbH

Honauerstrasse 2 4020 Linz, Austria +43 732 606162-0

GERMANY

Fabasoft Deutschland GmbH

THE SQUAIRE 13, Am Flughafen 60549 Frankfurt am Main, Germany +49 69 6435515-0

Xpublisher GmbH

Schleissheimer Strasse 6-10 80333 Munich, Germany +49 89 54726178-0

SWITZERLAND

Fabasoft 4teamwork AG Dammweg 9

3013 Bern, Switzerland +41 31 511 04 00

USA

Mindbreeze Corporation

311 West Monroe Street Chicago, Illinois, 60606, USA +1 312 300-6745

Xpublisher Inc.

Convene 3rd floor 311 West Monroe Street Chicago, Illinois, 60606, USA +1 802 540 0445

CONTACT DETAILS:

General Informationen:office@fabasoft.com Sustainability: sustainability@fabasoft.com Investor Relations: ir@fabasoft.com Press Relations: pr@fabasoft.com

FABASOFT AG | HONAUERSTRASSE 4 | A-4020 LINZ | TEL.: +43 732 606162-0 | FAX: +43 732 606162-609