Fabasoft AG — Interim / Quarterly Report 2024

Nov 8, 2024

Fabasoft AG 2024/2025

6 Months Report 1 April – 30 Sep 2024

KEY DATA

in kEUR	April – Sep 2024	April – Sep 2023	Change
Sales revenue	42,534	39,478	7.7 %
Result before income taxes	6,521	6,522	0.0 %
EBIT (Operating result)1)	6,629	6,697	-1.0 %
EBITDA1)	10,588	10,464	1.2 %
Result for the period	4,773	4,781	-0.2 %
Equity at end of period	33,280	27,930	19.2 %
Cash flows from operating activities	4,853	4,566	6.3 %
Cash and cash equivalents at end of period	23,986	19,202	24.9 %
Employees at end of period	495	488	1.4 %
Basic earnings per share (in EUR)	0.41	0.40	2.5 %

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
Six-months management report .	17
Report on the earnings, finances and assets situation .	17
Report, forecasts and other statements regarding future developments .	19
Report on opportunities and risks .	26
Significant transactions with related companies and persons .	35
Consolidated Interim Financial Statement .	36
Consolidated Interim Balance Sheet .	36
Consolidated Statement of Comprehensive Income .	37
Consolidated Cash Flow Statement .	39
Consolidated Statement of Changes in Equity .	40
Notes to the Consolidated Interim Financial Statements .	41
Report on the auditors' review .	48
Statement of all Legal Representatives .	50
Imprint .	52

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. In the unique Ecosystem Fabasoft PROCECO, Fabasoft unites selected, high-performance software solutions for document-intensive business processes. Numerous well-known private companies and public administration organizations have relied on Fabasoft's quality and experience for more than three decades.

The products help to digitalize, simplify, accelerate and improve the quality of business processes with the use of Artificial Intelligence (AI) use cases. They include the receipt, structuring, team- and process- oriented provision, processing and completion, secure storage and context-sensitive finding of all business documents as well as the preparation and provision of content for various publication channels.

Fabasoft offers innovative possibilities for cooperation across organizations and countries, both through informal interaction and structured workflows. Customers benefit from access to information that is independent of both location and equipment, efficient knowledge management, applied AI 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 Mindbreeze Corporation (a 100 % subsidiary of Mindbreeze GmbH) and Fabasoft Xpublisher Inc. (a 100 % subsidiary of Fabasoft Xpublisher GmbH). The Group is also active in other countries through 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 495 as at 30 September 2024.

Group structure

Fabasoft Group as of 30 September 2024

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 Oblivation GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Fabasoft Talents GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Hon24 Immobilien GmbH	Honauerstrasse 4	4020 Linz, Austria
Mindbreeze GmbH	Honauerstrasse 2	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Mindbreeze InTend GmbH	Honauerstrasse 2	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, 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	80333 Munich, Germany
Fabasoft Xpublisher GmbH	Schleissheimer Strasse 6-10	80333 Munich, Germany
	Edlmairstrasse 1	94469 Deggendorf, Germany
Fabasoft 4teamwork AG	Dammweg 9	3013 Bern, Switzerland
Mindbreeze Corporation	311 West Monroe Street	Chicago, IL 60606, USA
Fabasoft 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 by its own companies. These companies have their own project organizations and, if necessary, take on the role of general contractor for project implementation. In addition, the Group strives to further establish and develop sales and implementation partnerships.

Product Portfolio

The Ecosystem Fabasoft PROCECO

Fabasoft PROCECO is a unique, entrepreneurial business process ecosystem. As a curated ecosystem, it combines digital solutions carefully selected by Fabasoft for document-intensive business processes. The technological basis of the ecosystem is the powerful and certified Fabasoft PROCECO Cloud. This offers companies a secure and scalable environment for the provision and use of Fabasoft PROCECO Solutions.

The Ecosystem Fabasoft PROCECO not only opens up new opportunities for customers, but also accelerates the growth of partners, subsidiaries and affiliates. The Fabasoft Competence and Service Centers support Fabasoft PROCECO partners in professionalizing their business and offer comprehensive advice and support in all phases of cooperation.

PROCECO partners benefit from the support of the Fabasoft Competence Center (CC) through know-how transfer, standards and best practices in the areas of organization, product development, AI, marketing, sales and professional services. The Competence Center Products provides support in the development process of Fabasoft PROCECO Solutions, while the Competence Center AI designs and supports the implementation of the AI use cases of Fabasoft PROCECO Solutions based on the insight services of Mindbreeze. The collaboration with the Competence Center Marketing focuses on the brand, positioning and sales marketing process, i.e. lead generation via analog and digital channels. The leads obtained in this way are further processed by the respective solution sales team with the support of the Competence Center Sales. The Competence Center Professional Services is responsible for the transfer of know-how for the professional support of customer projects, in particular implementation and migration projects.

The Fabasoft Service Centers ensure that the Fabasoft PROCECO Solution Teams can focus on their value-adding activities, their business and the success of their customers. The Service Centers provide comprehensive support in the areas of accounting, purchasing, employer branding, recruiting, payroll, controlling, invoicing, internal infrastructure, internal systems and sustainability.

One shared business reality

Customers of Fabasoft PROCECO Solutions benefit from agile products that are tailored to their needs, can be implemented and expanded quickly, and ensure efficiency and security. The seamless interaction of all PROCECO Solutions creates a common, cross-organizational process and data world for customers ("One Shared Business Reality"). This enables a fast and consistent exchange of information across departments and locations, thus increasing transparency and decision-making security while reducing process costs.

The Fabasoft PROCECO Cloud provides the technological basis for the shared process and data world. It meets all the requirements of modern business process management (BPM), enterprise content management (ECM) and enterprise records management (ERM) software and provides the basis for seamless and efficient collaboration within and across companies. The powerful feature set at the core of Fabasoft PROCECO Solutions enables organizations of all sizes to optimize their digital business processes and drive digital transformation.

SEAMLESS INFORMATION TRANSFER

The common process and data environment enables a fast and consistent exchange of information across departments and locations. All participants work with the same information, thus benefiting from greater transparency and decision-making security. The comprehensive ECM functions of the Fabasoft PROCECO Cloud ensure efficient administration, location- and time-independent access, and audit-proof document storage. Data is also protected by security technologies such as encryption, authorization concepts and audit trails.

Secure "team rooms" are used for collaboration and document exchange with internal and external business partners. Role-based permissions clearly define who can create, edit or view which content. External members can be invited to collaborate directly from the respective team room by email.

With the Fabasoft web client and the seamless integration of common office software, users can also edit their documents directly in their familiar working environment. The cloud folder enables the synchronization of content stored in the Fabasoft PROCECO Cloud with end devices, so that all participants always have access to the latest version (single source of truth) – whether stored in the web client or locally. Thanks to the mobile apps for iOS and Android, users benefit from flexible task completion. This means that users always have their important documents and tasks at hand, regardless of their location and device.

FULL PROCESS AUTOMATION

The shared process and data environment ensures consistent business processes while simultaneously reducing errors and process costs. Companies not only benefit from increased productivity, but also from the ability to seamlessly model, optimize, automate and monitor processes across departmental and company boundaries. The Fabasoft PROCECO Cloud provides powerful workflow technology to achieve efficiency and transparency in business processes. To create workflows, users have access to ad hoc processes and a graphical BPMN 2.0 editor that allows them to model business processes without programming knowledge.

Support for BPMN 2.0 (Business Process Model and Notation) allows users to model individual business processes and take advantage of platform-independent notation. The workflow engine then directly executes the created process diagrams. Ad-hoc processes allow users to flexibly respond to situations and to invite internal or external persons to participate in process steps such as "review", "release" or "approve".

By integrating the digital signature into existing workflows, companies can also make binding processes more efficient and seamless. In addition to the simple electronic signature, the Fabasoft PROCECO Cloud also offers the option of adding a personal qualified electronic signature to documents. This signature meets the high security standards of the eIDAS regulation and is therefore legally valid throughout the European Union.

EFFICIENT TASK MANAGEMENT

All tasks and process steps from all Fabasoft PROCECO Solutions are combined in a clear, individual to-do list, the worklist. In addition, users receive push and e-mail notifications about newly received tasks. With the help of a PC, tablet or smartphone, these tasks can be processed in a structured manner. This way, users always have an overview and benefit from the efficient completion of their tasks.

The Fabasoft PROCECO Cloud offers companies a range of innovative ERM features that ensure the protection, availability and integrity of business-critical information. For example, the "time travel" function in the Fabasoft PROCECO Cloud allows you to view documents, metadata or Teamrooms at specific points in the past. All changes can be traced at any time. Older versions can be restored if necessary. The "Auditing" function logs all access to objects. In addition, there is the option of automatically applying dynamic watermarks to documents. The Fabasoft PROCECO Cloud is suitable for tamper-proof and GoB-compliant document storage, so that electronic documents are treated the same as paper originals. This seamless versioning of documents, as well as the automatic tamper-proof archiving, makes an important contribution to fulfilling the compliance management system.

INNOVATIVE AI FUNCTIONALITIES

The powerful combination of the Fabasoft PROCECO Cloud and Mindbreeze enables companies to unlock their knowledge, use it effectively and thus improve their decision-making. With semantic full-text search and insight services, users can find the required information faster and make more efficient, informed decisions. AI-generated 360-degree views also provide companies with personalized views of relevant information such as customers, projects, or products. Mindbreeze InSpire prepares information for specific roles in the company. Employees thus receive a view that is dependent on their function and role, even if they are searching for the same facts. With large language models and Mindbreeze InSpire, companies also receive summaries of facts in natural language. By combining large language models and insight engines (using RAG – retrieval augmented generation), such as Mindbreeze InSpire, companies can ensure the long-term security of their corporate data. Information is not passed on to third parties and analyzed. The sources provided allow the precise and fact-based answers to be verified at any time.

CONSISTENT USER EXPERIENCE

All Fabasoft PROCECO Solutions are characterized by a uniform functionality and user interface. This enables employees to work intuitively and facilitates the onboarding of new colleagues. The accessible and responsive user interface allows for easy operation and navigation, regardless of technical knowledge or language barriers – the Fabasoft PROCECO Cloud is available in 22 different languages.

The complete responsiveness of the Fabasoft PROCECO Cloud ensures a consistent user experience on all end devices. Regardless of whether users are working on a desktop, laptop, tablet or smartphone, the Fabasoft PROCECO Cloud automatically adapts to the respective screen size. Furthermore, the Fabasoft PROCECO Cloud is accessible to all users, regardless of their abilities or limitations. It supports users with visual impairments in both data entry and display. The web client also allows for full keyboard operation and thus efficient working without a mouse. Support for the WAI-ARIA standard also ensures that content is recognized and interpreted by screen readers and other tools.

The Fabasoft PROCECO Cloud user interface is clearly structured, easy to navigate and self-explanatory. A tree structure and breadcrumb trail quickly lead to the desired file, even in complex structures. Comprehensive dragand-drop functions allow users to complete their tasks quickly and easily. Files and entire folder structures can be conveniently imported or downloaded via drag-and-drop. Within the web client, drag-and-drop can be used to move documents and folders. In addition, the Fabasoft PROCECO Cloud offers a wide range of options for customizing the user interface to match corporate design guidelines, ensuring a consistent look and feel.

SIMPLE EXTENSION

The Fabasoft PROCECO Solutions are easy to extend thanks to their consistent functionality and user interface. This allows companies to quickly implement new solutions into their system landscape. Extensive low-code/ no-code functionalities in the Fabasoft PROCECO Cloud ensure that the solutions can be easily and individually adapted to the respective company – without any programming knowledge. Intuitive graphical user interfaces and modular building blocks enable specialist departments to implement new requirements independently and without additional IT personnel.

With user-defined forms, existing objects can be easily extended with individual data fields (e.g. metadata) using drag-and-drop fields. With low-code expressions, users can also control the behavior or logic of form fields. Intelligent functions such as calculations, field validations and visibility rules are available for implementing complex use cases.

Template management enables companies to create and manage individual templates and text modules in order to make them available to all users. Cloud administrators have control and an overview of all existing and released templates. In addition, each user has the option of defining personal templates, processes and preferences.

HIGH DATA SECURITY

Both the Fabasoft PROCECO Cloud as the technological basis and the Fabasoft PROCECO Solutions offer comprehensive security measures that ensure a high level of protection for company data. External and internal security analyses as well as audits of the technical, physical and organizational security measures and operating processes contribute significantly to the security of the Fabasoft PROCECO Cloud.

Data is stored in European data centers, optionally in Germany, Austria and Switzerland. Access to user data is authorized via Teamrooms. For each Teamroom access rights can be assigned to team members. These access rights are taken into account when searching for user data. This means that only those hits are displayed which the respective user is authorized to access.

Authentication during login is always carried out using secure authentication methods, for example two-factor authentication. This ensures a protected and trustworthy working environment. The Fabasoft PROCECO Cloud also allows users to log in via digital certificates, single sign-on via Active Directory Federation Services (AD FS) or SAML 2.0, so that they can log in to the cloud without having to enter an additional login and password.

The Fabasoft Secomo appliance offers secure end-to-end encryption for the Fabasoft PROCECO Cloud. End-toend encryption protects documents already at the workplace or on mobile devices. The keys remain exclusively with the operator of the appliance. The keys are protected by a hardware security module (HSM) that meets the requirements of FIPS 140-2 Level 4. Fabasoft Secomo can also be used in combination with the Fabasoft PROCECO Cloud for storing company certificates for legally compliant digital signatures of PDF documents.

INTEGRATED DEVELOPMENT ENVIRONMENT

With the integrated development environment in the Fabasoft PROCECO Cloud, developers create customized applications and solutions seamlessly and efficiently. Fabasoft app.ducx, Fabasoft app.test and Fabasoft app. telemetry help developers to implement new PROCECO Solutions quickly and easily.

With Fabasoft app.ducx, the intuitive and powerful development system of the Fabasoft PROCECO Cloud, solution developers can create new applications in the shortest possible time. Based on several declarative modeling languages that C++, C#, and Java programmers should be familiar with, Fabasoft app.ducx offers the perfect combination of rapid application development and the power of the Fabasoft PROCECO Cloud. With Fabasoft app.ducx, developers intuitively create object models, methods, user interfaces, processes, access permissions, etc. in domain-specific languages.

Fabasoft app.test is the tool for the functional automation of software tests in the Fabasoft PROCECO Cloud. When automating tests, Fabasoft app.test ensures that the software is tested in the same way as real users would use the application, namely by actually interacting with the user interface in the web browser. The tests can be recorded either via a tree view of the user interface or via a click recorder and then executed locally at the workstation.

Fabasoft app.telemetry provides the ideal basis for service level management and user support by monitoring the availability and response times of applications. The product tracks the transactions triggered by user requests, mapping their path through the hardware and software infrastructure and enabling the analysis of execution in Fabasoft products and in instrumented third-party products. With this information, the 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 for operational processes.

The Fabasoft PROCECO Solutions

Approve on Fabasoft PROCECO

The document and quality management system Fabasoft Approve increases project quality in industry and ensures efficient and transparent processing. Companies in the special-purpose machine, plant and infrastructure construction sectors benefit from a shared database for exchanging technical documents, contract-related communication with suppliers and customers and the necessary testing, approval and quality processes.

Comprehensive features for document, quality, and process management ensure a high level of user-friendliness and the rapid implementation of customer-specific requirements: the Interactive Exploded View enhances documents with additional information for effortless navigation in technical databases. The AI chat with documents also answers content-related questions in natural language. By analyzing past projects, the AI offers context-specific answers that can be directly integrated at every step of the 8D process. Digital workflows accelerate collaboration with internal and external partners along the entire value chain.

Boards on Fabasoft PROCECO

The meeting management solution Fabasoft Boards ensures that meetings are organized, held, and followed up on efficiently. It guarantees that the strict compliance requirements for highly confidential meetings on management and administrative boards, for example in the finance sector, are met.

In addition to effortless scheduling, the digital sending of invitations and the automated definition of agenda items speed up preparation. AI-generated summaries and translations provide essential information quickly – even for multilingual committees. The AI also makes decisions on previous, similar proposals available, generates draft resolutions based on these and thus promotes rapid decision-making. The integrated timer ensures reliable time management. An audit-proof protocol enables the seamless documentation of decisions and follow-up tasks and can be transmitted to the participants via workflows that are free of media discontinuity.

Contracts on Fabasoft PROCECO

The contract management solution Fabasoft Contracts enables the AI-supported, efficient creation, digitization and management of contracts throughout their entire lifecycle. Those responsible for legal, compliance, purchasing and sales in all industries benefit from intelligent, automated metadata extraction when digitizing documents.

New agreements can be quickly generated thanks to an existing clause library and checked or approved across the organization using digital workflows. The integration of an advanced and qualified electronic signature in accordance with the eIDAS regulation also ensures approval processes without media discontinuity. The cloudbased standard software offers further helpful features for processing, managing and controlling the contract portfolio: these include, among other things, the intelligent analysis of clauses, the semantic full-text search, the simple creation of summaries and the chat function for questions regarding content.

DORA on Fabasoft PROCECO

The outsourcing management Fabasoft DORA supports the legally compliant implementation of the EU DORA regulation (Digital Operational Resilience Act) applicable to the financial sector. The solution demonstrably ensures the management of IT services over the entire outsourcing cycle, including the necessary reporting requirements.

The AI-supported solution minimizes the use of resources as well as the risk and error potential of outsourcing, compliance and data protection officers in financial companies such as banks, insurance companies, rating agencies and pension funds in the continuous, intelligent digitization of outsourcing management. With the AI-based contract inventory analysis, existing agreements can be checked for compliance with the provisions of the Digital Operational Resilience Act without manual effort. The clause library enables the rapid creation of new contracts and supplementary agreements. In addition, the software automatically generates the required audit reports, such as the information register, in the defined format. Digital workflows ensure audit-proof compliance with legal requirements.

Oblivation on Fabasoft PROCECO

The sustainability reporting solution Fabasoft Oblivation uses generative AI to efficiently capture, securely store, and effortlessly provide data for CDP sustainability reporting. By combining the core functions of Mindbreeze and Fabasoft PROCECO, finance and sustainability teams optimize their collaboration and ensure reliable CDP project management.

A consistent authorization concept and digital workflows assign roles, tasks, and deadlines to colleagues and external experts. The intelligent search is tailored to CDP questions and makes it easy to find crucial information. Thanks to generative AI, comprehensible English responses can be provided automatically, regardless of the input language. Finished reports are available directly in the required format for quick and easy upload to the CDP online portal.

OneGov GEVER on Fabasoft PROCECO

The digital business management software OneGov GEVER ensures the AI-supported, legally compliant creation, processing and management of dossiers. Thanks to the latest cloud and AI technology, the solution enables Swiss authorities at federal, cantonal and municipal level, as well as institutions close to the administration, to intuitively design and intelligently automate business processes.

With powerful low-code/no-code features, users can quickly implement new requirements – without any programming knowledge. The AI-powered chat with documents speeds up the understanding of extensive, case-specific information and provides comprehensible answers with automatically generated source information.

Talents on Fabasoft PROCECO

The personnel file Fabasoft Talents enables the AI-supported, audit-proof and transparent digitization of HR processes across the entire personnel life cycle. HR managers ensure that documents are stored in compliance with the law, that they can be found quickly using the intelligent search function, and that interaction with employees is improved. In addition to automating routine tasks, such as the timely disposal of documents in accordance with the GDPR, self-service functions reduce the administrative burden on the HR department. Digital workflows accelerate the exchange of documents and the submission of applications. Integrated skills management facilitates the recording, validation and evaluation of employee skills.

The KnowledgeFox learning app is designed to effectively and sustainably impart knowledge using the "microlearning" principle. Short, customized units in the mobile app promote an active, playful learning experience and regular use. The fields of application include both hard and soft skills ranging from onboarding to sales training and executive education.

Xpublisher on Fabasoft PROCECO

The multichannel publishing solution Fabasoft Xpublisher ensures the efficient creation, intuitive management and automated publication of content in any channel. Media and publishing houses, as well as companies in a range of industries, are using the certified PROCECO solution to digitize their entire publishing process, thereby increasing the impact of their content and reaching target groups with different information interests more economically.

The system's own production planning forms the basis for the design and organization of digital or printed content. With the integrated editor, media-neutral, semantically structured content can be intuitively created and enriched with metadata and assets. This ensures efficient content production and a flexible response to market and consumer changes. AI also enables the rapid generation of text variants, such as social media teasers. Thanks to automated image tagging, content benefits from increased findability and reusability. Digital review and approval workflows reduce manual tasks and ensure rapid and transparent release processes.

Fabasoft eGov

Fabasoft eGov-Suite

Fabasoft eGov-Suite is the leading product for electronic administrative 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 seamless documentation and audit-proof archiving. Business cases can be processed barrier-free, independently of location and time, and 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 Fabasoft eGov-Suite to increase efficiency and transparency in their areas of activity and to interact quickly with citizens, companies and other organizations.

Fabasoft Online Services provide a service platform for end-to-end digital interaction between citizens, companies and public administration. When an application is submitted, procedural data is transferred directly to the electronic file in Fabasoft eGov-Suite. This enables complete digitization, from creation to status information to downloading the final result of the process. The use of low-code/no-code enables administrative employees to easily add new forms independently, without in-depth programming knowledge.

Done! on Fabasoft eGov

Done! on Fabasoft eGov supports administrative staff with innovative automation. Text extraction identifies and extracts relevant information from incoming documents and requests. Fabasoft eGov-Suite uses automatic classification to understand the context of incoming documents and processes them. This data is then used to fill in the required form fields with suitable suggestions, thus supporting users in their daily tasks. In addition, the intelligent and transparent automation of business processes shortens the processing time for requests and applications, thereby improving service quality.

Fabasoft Folio

The business software Fabasoft Folio helps to ensure the secure capture, organization and storage of digital documents and files, as well as the easy digitization of business processes. The product is used for the efficient modeling and implementation of individual, document-centered business applications and workflows. Thanks to the intuitive user interface, users can access documents anytime and anywhere. Fabasoft Folio includes numerous interfaces via standard protocols and can therefore be quickly integrated into an existing IT landscape. In addition, the application offers out-of-the-box integrations for common business applications such as SAP.

Mindbreeze

Mindbreeze InSpire

Mindbreeze InSpire is a high-performance insight engine that analyzes company information and provides a comprehensive, consolidated view of the entire knowledge base of a company – regardless of where the data is stored or whether it is structured or unstructured. Employees receive personalized search results and relevant facts in so-called 360-degree views, with all the relevant information clearly laid out.

The connection to the company data sources is established via connectors from email and document management systems to industry-specific applications and archives. Mindbreeze InSpire uses a variety of AI methods to process the data, such as entity recognition, classification, semantic relation, proactive insight, knowledge extraction, and natural language processing. In addition, large language models (LLMs) are used.

Mindbreeze InSpire sustainably solves typical challenges when using LLMs, such as data hallucinations, authorization issues, problems with confidential data, or high training costs. This is because Mindbreeze InSpire provides the preferred LLMs of customers and partners with the relevant information for generating answers and references the sources used, so that each answer is traceable and can be validated. With Mindbreeze InSpire SaaS, selected LLMs are already provided and operated by Mindbreeze for customers and partners. In addition, Mindbreeze InSpire is delivered with pre-trained models. However, due to the usage of transformer models and open standards, models from communities like Hugging Face are also easy to use. If a customer is already using a specific model, it can be integrated.

The Mindbreeze Insight App Designer enables users without programming skills to create customized applications. These insight apps are tailored to the specific requirements of the respective department and use case, providing valuable support for business process transformation.

Mindbreeze InSpire is designed as an additive product and can be quickly and seamlessly integrated into existing IT infrastructures – whether on-premises installations, SaaS environments, or cloud marketplaces such as Amazon Web Services, Microsoft Azure, or Google Cloud. Mindbreeze InSpire is already successfully in use in various business sectors (customer service, maintenance and repair, project management, or people and culture management).

For software manufacturers, integrators, and developers, Mindbreeze offers interfaces and services that make it easy to incorporate the proven Mindbreeze technology into their own products and projects.

Mindbreeze InTend

Mindbreeze InTend supports sales teams throughout the entire RFP and proposal management process – from identifying and pre-selecting relevant information to automatically answering questionnaires. Mindbreeze InSpire serves as the technological basis, which means that both structured and unstructured company data can be efficiently used.

With the help of generative AI, Mindbreeze InTend creates customized responses based on the extracted data. In addition, Mindbreeze InTend builds structured libraries to make all the knowledge from past tenders available. This ensures a significant increase in efficiency when responding to tender questions and optimizes offer management.

SIX-MONTHS MANAGEMENT REPORT OF FABASOFT GROUP AS AT 30 SEPTEMBER 2024

1) Report on the earnings, finances and assets situation

1.1. Business status in the first six months of the 2024/2025 fiscal year

In the first six months of the 2024/2025 fiscal year the Fabasoft Group recorded sales revenue of kEUR 42,534 (kEUR 39,478 in the corresponding period of the previous year). The increase in revenue reflects the continuing positive development of recurring revenues.

With EBITDA1) at kEUR 10,588 (kEUR 10,464 in the corresponding period of the previous year) EBIT1) was kEUR 6,629 (kEUR 6,697 in the corresponding period of the previous year).

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 on the interim balance sheet as at 30 September 2024 was 44.2 % (40.7 % as at 30 September 2023).

The balance of cash and cash equivalents changed in the period under review from kEUR 19,202 as at 30 September 2023 to kEUR 23,986 as at 30 September 2024.

The Fabasoft Group employed a workforce of 495 on the interim balance sheet date 30 September 2024 (488 employees on 30 September 2023).

1) Definition of the key figures in the management report section 1.3.

1.2. Second quarter of the 2024/2025 fiscal year (1 July 2024 – 30 September 2024)

In the second quarter of the 2024/2025 fiscal year the sales revenue of the Fabasoft Group amounted to kEUR 22,101 (kEUR 19,787 in the corresponding period of the previous year).

With EBITDA1) at kEUR 6,890 (kEUR 5,979 in the corresponding period of the previous year) EBIT1) was kEUR 4,920 (kEUR 4,097 in the corresponding period of the previous year).

1.3. Alternative Performance Measures of the Fabasoft Group

Within the scope of its periodical and obligatory reporting Fabasoft publishes alternative performance measures (APM). These performance measures are not defined in the existing accounting policy pursuant to the International Financial Reporting Standards (IFRS). Fabasoft calculates the APM with the aim of enabling comparability of the performance measures over time or a sectorial comparison. The following APM are determined by Fabasoft:

• Nominal change in sales revenue
• EBIT or operating result
• EBITDA
• Equity ratio
• Research & development ratio (will be published in the full annual report)

Nominal change in sales revenue

The nominal change in sales revenue is a relative indicator. It indicates the change in the sales revenue in percent compared to the previous year.

EBIT or operating result

EBIT stands for Earnings Before Interest and Taxes and shows the operative result of a company without the impact of effects arising from inconsistent taxation systems and different financing activities. EBIT (operating result) is calculated as follows:

Reconciliation

Results before income taxes

• Finance income

• Finance expenses

= EBIT (operating result)

EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. In addition to interest and taxes this indicator of success also neutralises the distortionary effects of operative business activities arising from different depreciation methods and valuation latitude. EBITDA is calculated on the same basis as EBIT plus depreciation and amortisation affecting income in the period or less reversals of impairment losses on intangible assets and property, plant and equipment.

Reconciliation

EBIT

• / – depreciation / amortization / reversals of impairment losses on intangible property and assets, plant and equipment

= EBITDA

1) Definition of the key figures in the management report section 1.3.

Equity ratio

The equity ratio indicates the proportion of equity in total capital.

Equity

x 100

Total Capital

Research & development ratio

Indicator that shows which proportion of the sales revenue the company reinvests in research and development.

Expenses for research and development

Revenue

2) Report, forecasts and other statements regarding future developments

x 100

2.1. Topics worthy of mention in the first half of the 2024/2025 fiscal year

BSI C5, SOC 2, ISAE 3402 and EU Cloud Code of Conduct

Fabasoft and Mindbreeze passed the audit again at the beginning of 2024 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 PROCECO Cloud (formerly Fabasoft Cloud) and the Fabasoft PROCECO Cloud-based PROCECO Solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROCECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO as well as for Mindreeze InSpire SaaS Services.

As part of the ISAE 3402 Type 2 audit, the design and effectiveness of the corresponding controls (based on COBIT 2019) were tested in relation to the services defined by Fabasoft and Mindbreeze. In addition, Fabasoft has once again achieved compliance level 3 of the EU Cloud Code of Conduct (CoC) for the Fabasoft PROCECO Cloud (formerly Fabasoft Cloud) including the solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO.

Swiss Medical Weekly uses Xpublisher as its publishing system

Swiss Medical Weekly (SMW), a medical journal from Switzerland, uses Xpublisher for the online publication of scientific articles based on JATS-XML. SMW wanted to implement an XML-first workflow based on Word documents and chose Xpublisher because of the customization options of the XML format used and the export to other formats.

Fabasoft Approve at Control 2024

Fabasoft Approve presented its cloud-based software for managing technical data and documents at Control, the leading international trade fair for quality assurance in Stuttgart, Germany, from 23 to 26 April 2024. The focus was on presenting how industrial companies are taking their quality management to a new level through the digitization of cross-company end-to-end processes and the use of AI. The leading international trade fair for quality assurance, which has been taking place since 1987, not only offers theoretical aspects but also practical insights into the wide range of options for ensuring defined quality requirements.

FutureHub: Authorities 2024

On 14 May 2024, the "FutureHub: Authorities" took place at Palais Berg in Vienna. Under the motto "Real people, real conversations", the event offered insights into the digitization of the public sector with a focus on AI, cybersecurity and smart government. Fabasoft played a key role in the program with a keynote speech and the presentation of concrete application possibilities of Fabasoft online services as well as comprehensive information on digital transformation with the Fabasoft eGov Solutions, particularly demos of the digital personnel file Talents on Fabasoft eGov.

Mindbreeze InSpire available on the Google Cloud Marketplace

With availability on the Google Cloud Marketplace, Mindbreeze offers another way for companies to use its AIbased knowledge management services without their own infrastructure. Mindbreeze InSpire is now available for customers and partners on the common online marketplaces (AWS Marketplace, Microsoft Azure Marketplace, Google Cloud Marketplace) in addition to the existing deployment options cloud, hosted by Mindbreeze, hybrid cloud or on-premises.

HEssenDIGITAL 2024

The focus of the HEssenDIGITAL congress on 29 May 2024 in Bad Homburg was on the requirements for implementing the digital transformation of public administration. In addition to a high degree of cooperation and information exchange, the implementation requires digitization strategies and digital administrative processes, combined with technologies such as cloud computing, AI or low code/no code. Fabasoft presented the functions and possible applications of the Fabasoft eGov Solutions.

Fabasoft SUCCESS 2024

Fabasoft SUCCESS 24 took place at the Aula der Wissenschaften in Vienna on 17 and 18 June 2024. The 17th century building provided the setting for this event, which brought together all employees of the Fabasoft Group. The event, which takes place every two years, focused on internal knowledge transfer and personal exchange in order to jointly develop new ideas for innovations.

Webinar with Handelsblatt: "The countdown is on: Implementing DORA efficiently"

How well prepared is the financial sector for DORA? What challenges do those responsible need to be prepared for during implementation? And how can the reporting obligations of the regulation be fulfilled with the help of smart tools? Thorsten Breuer, Managing Partner (CEO) & Founder of Kolibri Advisory & Services GmbH i.G., and Robin Schmeisser, Managing Director of Fabasoft Contracts GmbH, discussed this on 12 June 2024 in the Handelsblatt "How to Business" webinar "The countdown is on: Implementing DORA efficiently in the financial sector with digital management of IT service providers".

Austrian Digital Value e-Government Conference 2024

On 19 and 20 June 2024, the 20th ADV e-Government Conference took place at the Ursulinenhof Linz. The motto of the event was "Digital. Sovereign. Future-proof." and provided information on the latest developments in the field of digital public administration. The Fabasoft eGov team presented current projects and introduced the possible applications of Fabasoft Online Services and automation with Done! on Fabasoft eGov.

Future Congress State & Administration 2024

The 10th Future Congress State & Administration from 23 to 25 June 2024 in Berlin focused on the latest trends and challenges in the field of digital public administration. Fabasoft provided information about current customer projects, the advantages of the Fabasoft eGov-Suite and the Fabasoft eGov Solutions as well as the automation of administrative work using AI.

NEM Energy relies on Fabasoft Approve

NEM Energy B.V., the leading international OEM supplier of heat transfer technologies and exhaust systems, relies on Fabasoft Approve for managing technical documents along the supply chain. During the average two-anda-half-year term of a project, the company exchanges thousands of documents with suppliers, manufacturers and customers. Approve is now used by more than 250 users from the areas of project management, purchasing, technology and quality management, as well as by suppliers of NEM.

Fabasoft Xpublisher at the CrossMediaForum 2024

Fabasoft Xpublisher had a stand at the CrossMediaForum in Munich on 4 July 2024 and gave a presentation on the significance and implementation of the IT Standards Task Force together with an expert from Edupartner. At the event, more than 100 publishing managers and leading providers exchanged ideas and experiences on innovative and proven methods and tools for cross-media publishing under the motto "More creativity and customer-oriented media offerings through (AI) tool support and automation".

Mindbreeze designed a course as part of the KinderUni OÖ 2024

Mindbreeze was part of the KinderUni OÖ for the eighth time, designing the course "From Computers to Robot" at the Johannes Kepler University Linz (JKU). Mindbreeze specialists playfully introduced the participating children, aged seven to nine, to the topic of programming. After a brief introduction to the Choregraphe programme, the children programmed simple instructions for the robots under supervision.

Fabasoft Robotics Camp 2024

Fabasoft and the association Talente OÖ have organized the "Fabasoft Robotics Camp" at the Fabasoft headquarters in Linz for the eighth time in summer 2024. The aim of the camp is to introduce children between the ages of 8 and 14 to technology, computer science, and programming in a fun and playful way, sparking their interest in a future technical career at an early stage. A total of 38 children and young people had the opportunity to gain early knowledge from the world of technology and programming in different groups ("Rookies" and "Advanced") and to develop in the sense of sustainable support.

In three consecutive camps, the children worked diligently on the "mBot Ranger" robots. The focus was on assembly, including subsequent programming and the installation of sensors. On the last day of each camp, the children were able to present their ideas and results to their parents at the closing event. Fabasoft gave away the robots built during the camp to the participants to provide them the opportunity to continue practicing and programming at home.

Communications Congress 2024

On 12 and 13 September 2024, Fabasoft Xpublisher took part in the Communications Congress at the Congress-Center Berlin. In addition to manning the stand, the team gave a presentation on effective sustainability communication together with a representative from zNT. As an important event in the field of corporate communications, the congress provided an opportunity to exchange views on current trends and to demonstrate the expertise of Fabasoft Xpublisher in the industry.

BME webinar: "How KSB is improving supply chain resilience through digitalization"

Today, supply chains are subject to greater demands than ever. Particularly in project-related mechanical engineering, where customized solutions are developed for the customer, seamless interaction between all parties involved is crucial.

In a BME webinar on 24 September 2024, Christian Strobl, project manager and operational purchaser at KSB, and Andreas Dangl, managing director of Fabasoft Approve GmbH, discussed how to efficiently network suppliers and customers. 115 interested parties learned how KSB is improving the resilience of its supply chain with Fabasoft Approve.

Fabasoft presented ZERO³ project results at MODELS24

On 24 September 2024, Feyza Nur Bozkaya, research developer at Fabasoft, and Björn Fanta, Head of PROCECO Research, presented a prototype from the ZERO3 project on the topic "IoT-Edge-Cloud Continuum for BPMNbased quality assurance" at the Industry Day of MODELS24, an international conference in the field of model-based software development. The speaker focused on the implementation steps and used a live demonstration to illustrate the practical applications of this technology.

The presented concept enables the smooth processing of sensor data – for example in production lines – from local servers to central cloud systems. This ensures lower latency, higher security and improved scalability – ideal conditions for quality assurance processes in industry. The pre-processed data creates a communication link from machines to BPMN-based CAQ systems like Fabasoft Approve.

Fabasoft again certified as family-friendly employer

Fabasoft has held the basic "berufundfamilie" certificate since 2021 and has been awarded the "family-friendly employer" seal of quality. In September 2024, the "berufundfamilie" certificate was extended for further three years.

The compatibility of family and career plays an important role for Fabasoft. The award underlines Fabasoft's special commitment to maximizing the compatibility of career and family. Fabasoft implements various measures in projects in the areas of working hours, management culture, information and communication policy, parental leave and career return, and personnel development.

Fabasoft DORA masters EU "dry run"

As part of the ongoing DORA preparations, the European Supervisory Authorities (ESAs) have launched the "dry run" – a Europe-wide test run for the creation and submission of the information register in accordance with the Digital Operational Resilience Act (DORA). Customers in the financial sector also took part in the dry run. With the help of Fabasoft DORA they created and submitted the required information register automatically and on time. The smart outsourcing software accesses all relevant information from a uniform, digital database and creates the required audit reports in accordance with DORA on an automatic basis. Unlike spreadsheet programs, the contents are automatically transferred to the finished register without manual maintenance. The result is a constantly synchronized, digital information register that can be easily exported in the specified data format and shared with the authorities.

EY Innovation Index 2024:

Fabasoft once again takes first place with the highest R&D intensity in Austria

Who invests the most in innovation? EY addressed this question in a study and analyzed the research and development intensity of the 30 listed companies in Austria with the highest research and development spending last year. In the 2023/2024 fiscal year, Fabasoft spent 31.4 % of its revenue on research and development, and – as in previous years – took first place among the top 10 companies in Austria with the highest R&D intensity.

2.2. Products, research and development

Dedicated product teams within the Fabasoft Group are responsible for product-related research and for software development. The development activities of these teams are based on the agile method framework "Scrum", with the aim of creating innovation and added value in compliance with the principles "quality, usability & style". Regular feedback from existing customers and from discussions with analysts, as well as continuous market observation are used to identify market trends at an early stage and incorporate them into product development. Moreover, research topics were handled in international partnerships within the framework of digitization.

2.2.1. The Ecosystem Fabasoft PROCECO

Fabasoft PROCECO Cloud

The focus of research and development for the Fabasoft PROCECO Cloud in the first half of the 2024/2025 fiscal year was on optimizing the use of AI in PROCECO Solutions. The use of Mindbreeze Insight Services (semantic and vector-based search or 360-degree views) has also been further expanded and optimized in terms of usability.

In addition, a large number of enhancements and customizations have been implemented in the Fabasoft PROCECO Cloud. These include for example improvements in the area of e-mail communication, process and form design, and the simplification of the Mindbreeze configuration to support use cases in the area of AI.

Furthermore, various improvements in the area of development tools have been implemented to support and further optimize the development of PROCECO Solutions. For example, advanced troubleshooting options are now available.

Approve on Fabasoft PROCECO

Fabasoft Approve focused on further development of AI-supported use cases, especially to chat with documents and complex document structures. Of particular note is the implementation of chat with instruction documents for test steps in the context of test planning. In addition, further audit and change management functionality has been implemented in the quality management area.

Boards on Fabasoft PROCECO

Fabasoft Boards focused on the technical connection to the Fabasoft eGov-Suite and to OneGov GEVER on Fabasoft PROCECO. In addition, the functional scope of Boards has been significantly expanded and the first AI-supported use cases have been implemented, such as summarising and translating applications into the language selected by the user. Particularly noteworthy is the option in application management to define the entire application process using BPMN 2.0.

Contracts on Fabasoft PROCECO

At Fabasoft Contracts the team researched the use of AI for the automatic review of non-disclosure agreements in the first half of the 2024/2025 fiscal year. This involves analyzing the agreements for various aspects such as one-sidedness or two-sidedness, confidential information and contractual penalties. This helps to accelerate processes in legal departments and relieve the workload on employees.

DORA on Fabasoft PROCECO

The new Fabasoft DORA solution offers companies in the financial sector the opportunity to seamlessly digitize their outsourcing management and report in a legally compliant manner. In this context, one of the team's priorities in the first half of 2024/2025 was to develop an AI-based contract review for compliance with the EU DORA regulation.

Oblivation on Fabasoft PROCECO

At Fabasoft Oblivation the research and development focus during the reporting period was on developing a solution to automate the CDP sustainability reporting process. The research combines AI-powered information retrieval with Mindbreeze InSpire and workflow automation in the Fabasoft PROCECO Cloud to deliver this business reporting use case to customers.

OneGov GEVER on Fabasoft PROCECO

OneGov GEVER focused on AI-supported use cases such as chatting with a dossier or summarizing documents. It is particularly noteworthy that the summary of documents is also translated into the language of the user interface set by the user. Furthermore, additional functions for the migration path to the new generation of OneGov GEVER were implemented.

Talents on Fabasoft PROCECO

Fabasoft Talents focused on the further development of KnowledgeFox on Fabasoft PROCECO (skills management), in particular on the design of the user interface. Based on a revised design concept, the development of technical features and content was driven forward.

Xpublisher on Fabasoft PROCECO

In the case of Fabasoft Xpublisher, a particular research focus was on AI use cases, such as automatic text summaries for social channels or specific target groups. In addition, the interface has been expanded to easily connect peripheral systems such as a web CMS. Various production services such as Adobe InDesign or Antenna House enable customers to create print products either partially or fully automatically.

2.2.2. Fabasoft eGov

In the first half of the 2024/2025 fiscal year, the Fabasoft eGov-Suite development team focused increasingly on implementing AI-based use cases. Among other things, a use case was developed for interacting with business objects, such as files, using the Mindbreeze InSpire AI chat. This solution enables users to communicate with a business object in natural language in order to retrieve information on the persons or documents involved.

In addition, development activities with regard to the operation of Fabasoft eGov-Suite in a cloud-native infrastructure have been intensified. This has created the essential foundations for operating Fabasoft eGov-Suite as a web service in container environments in the future.

Done! on Fabasoft eGov

With Done! on Fabasoft eGov, a solution has been developed that provides automation use cases. Done! on Fabasoft eGov enables convenient training of a model based on Mindbreeze Insight Services for text classification and extraction directly from Fabasoft eGov-Suite. In addition, the processing of the delivered information has been upgraded to a low-code/no-code model in order to accelerate processes in business administration or, if necessary, to be able to automate them completely.

2.2.3. Mindbreeze

In the first half of the 2024/2025 fiscal year, the research and development focus at Mindbreeze was on generative AI with large language models. For example, numerous optimizations were made to Mindbreeze InSpire for the AI-based understanding and finding of answers based on natural language questions. Another topic was in the area of large language models and the possibility of using models from other providers in Mindbreeze deployment environments.

In addition, the Mindbreeze InSpire AI chat has been made available in the Insight App Designer. Companies can now enhance their Insight Apps with Mindbreeze InSpire AI chat. The display can be flexibly customized to the respective application, which also applies to the information sources from which Mindbreeze InSpire AI Chat generates the answers. This allows users to narrow down and focus the answers using input and filters. With the help of the provided preview function, users can chat with documents and get questions answered or summaries created. Only the content from the selected documents is considered for generating the text.

For administrators, the retrieval and generation process (RAG pipeline) has been extended to include evaluation frameworks. The insight into search queries and used prompts enables a precise tracking of the retrieval and generation processes.

With Mindbreeze InTend, the focus was on the integration and further development of retrieval-augmented generation (RAG) and generative AI in proposal processes. Now, by providing targeted instructions to the AI system, such as limiting the data sources, users can receive even more precise suggested answers and also customize them for specific target groups.

2.3. Forecast report

Transformation of the business

In line with a general trend in the software industry, the Fabasoft Group's software product business continues to undergo a transformation process: the use of software products is shifting from the model of acquiring usage rights to these products for a one-off fee, usually combined with a service contract, towards an ongoing monthly usage fee for cloud services, SaaS offerings and/or appliances.

This transformation process is currently progressing differently depending on the target markets: in public tenders, purchase models are still predominantly required for the software. The customer then often operates the software in its own data centers with the support of Fabasoft. Fabasoft is increasingly supporting its customers in the transformation of their IT infrastructure to cloud-native. Private customers are particularly interested in cloud solutions. If required, the flexibility of the Fabasoft product portfolio continues to support on-premises projects as well as hybrid model variants.

In terms of sales, Fabasoft continues to strive 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 Group, which successfully implements the core topics of digital change with its comprehensive and tried-and-tested range of products and services, will continue to be well positioned in a difficult market environment characterized by global political and economic upheaval.

The Ecosystem Fabasoft PROCECO for digital business processes

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

Applications of artificial intelligence

IT trends are characterized by AI application solutions. The biggest challenge in a society and economy shaped by algorithms will be to underpin AI ethically – with humans at the center – and to make its decision-making explainable.

In December 2023, the European Union was the first major economic area to create and progressively implement a reliable framework for the use of AI with a proposed regulation to establish harmonized rules for AI systems.

Fabasoft will support its customers in two directions in particular. Firstly, by increasing the degree of automation in those business processes in which sufficient training material is available for AI to be able to extract sufficient semantics and assign documents, thereby counteracting the ongoing labor shortage. The second approach is to utilize the linguistic competence of generative AI. Retrieval Augmentation Generation (RAG) offers the possibility of optimizing the output of the Large Language Model (LLM) used with specific information. In order to provide reliable answers, it is necessary to supply the model with current and valid company data. With the help of insight engines such as Mindbreeze and the use of RAG, LLM are able to provide context-related and specific answers to queries more quickly.

Investments in growth measures

In order to continue the Fabasoft Group's growth path, the investment focus for the remainder of the 2024/2025 fiscal year will be on product innovation, AI (including the expansion of AI capacities in the data centers), strengthening sales and marketing as well as attracting new talent to take advantage of future opportunities.

Fabasoft will continue to invest in the development, distribution and marketing of content-focused solutions. In addition to entrepreneurial organic growth opportunities, inorganic options will continue to be evaluated and pursued.

SAP forms the financial backbone of the Fabasoft Group, just as it does for its customers. Fabasoft is switching from SAP R/3 to SAP S/4HANA Public Cloud and SAP SuccessFactors for all Group companies in order to continue its growth and further standardize and professionalize its Group-wide financial processes. As part of this greenfield project, all financial processes are being rethought and the document-centric business processes in Fabasoft PROCECO Solutions are being integrated with SAP across the board. By consistently using the possibilities offered by the AI of the Fabasoft PROCECO Cloud and the automation potential in the SAP Cloud, the aim is to increase the efficiency of digital processes and offer users an even higher level of support, for example through the SAP Analytics Cloud, in their decision-making.

Another focus is on establishing and expanding successful international partner infrastructures. This would involve considerable upfront investments, particularly in international marketing, supra-regional presence, partner support and personnel expansion.

These investments, expansion and growth measures as well as the increase in personnel costs due to the recruitment of new talent and inflation-related salary increases (collective agreement) will continue to impact the profitability of the Fabasoft Group in the further course of the 2024/2025 fiscal year. Furthermore, the focus on topics that are considered future-oriented and sustainable will be given priority over short-term profitability considerations where necessary.

3) Report on opportunities and risks

3.1. Major opportunities of the Fabasoft Group

Major opportunities for the Fabasoft Group are seen in the following areas in particular:

3.1.1. The Ecosystem Fabasoft PROCECO

Fabasoft PROCECO – Business Process Ecosystem

The shared process and data world ("One Shared Business Reality.") in the Ecosystem Fabasoft PROCECO is based on the certified Fabasoft PROCECO Cloud and enables seamless information transfer between departments and across organizational boundaries. Companies benefit from increased process quality, process speed and process reliability, while at the same time reducing process costs. The consistent user interface and the common basic functional scope across all Fabasoft PROCECO Solutions also enable native integration and fast user onboarding.

With a curated selection of solution areas, Fabasoft creates an ecosystem of entrepreneurs who develop high-performance solutions for digital business processes. As a strategic partner, Fabasoft ensures the financial stability, strategy development and brand positioning of the scale-ups, which gain additional trust and reputation through their affiliation with a stock listed group. Thanks to certified administrative processes, the entrepreneurs can focus entirely on their value-adding activities. They also benefit from best practices, sales coaching and access to new marketing and sales channels.

Fabasoft PROCECO Cloud

With the Fabasoft PROCECO Cloud, the technological basis of the Ecosystem Fabasoft PROCECO, developers of new solutions benefit from Fabasoft's many years of experience in cloud-native technology as well as from the basic functionalities of the Ecosystem Fabasoft PROCECO and thus from a significantly accelerated time-tomarket efficiency.

All Fabasoft PROCECO Solutions are based on the Fabasoft PROCECO Cloud infrastructure with a common user interface. In addition to secure, traceable data exchange across organizational and national borders, this also includes automated checking and approval processes including encryption and digital signatures. All assigned tasks are clearly displayed in the shared task list and those responsible receive reminders of open tasks and deadlines.

Intelligent automation through AI-supported process optimization relieves employees of repetitive duties. In addition, individual processes can be designed efficiently with the graphical BPMN editor, even without programming knowledge. Low-code/no-code functionalities enable, for example, the simple creation of forms and the independent addition of metadata fields. Overall, accelerated business processes that meet maximum quality and security standards contribute to greater customer satisfaction.

In addition, the Fabasoft PROCECO Cloud has received numerous international certifications and awards for reliability, data and data center security and accessibility.

Opportunities and growth potential in the Ecosystem Fabasoft PROCECO

There is growth potential in increasing the number of Fabasoft PROCECO Solutions through organic and inorganic growth of the Fabasoft Group. Fabasoft Competence Centers support the rapid, high-quality and strategic growth of Fabasoft PROCECO Solutions by transferring know-how on standards, processes, tools, best practices and key figures.

Opportunities arise from the expansion of the number of users, both through the comprehensive roll-out to existing customers and the acquisition of new customers.

With the use of AI, existing resources can be better utilized and routine tasks can be automated. In order to meet the requirements of demographic change, Fabasoft is already increasingly relying on the use of AI in the form of solution-specific use cases in the Ecosystem Fabasoft PROCECO, which can be monetized directly with both new and existing customers.

Fabasoft sees additional opportunities and growth potential in the sale of further Fabasoft PROCECO Solutions to key accounts (cross-selling), whereby customers benefit from the consistent user interface and the common basic functional scope across all Fabasoft PROCECO Solutions as well as native integration and fast onboarding of users.

3.1.2. Fabasoft eGov

Fabasoft eGov Solutions enable public authorities to efficiently digitize and automate their document-intensive business processes. The technological basis for this is provided by the powerful Fabasoft eGov-Suite (reference architecture) and the Fabasoft PROCECO Cloud (cloud-native architecture, both public cloud and private cloud). The solutions are specifically designed to meet the specific technical requirements of public administration and enable rapid project planning.

The implementation of a cloud-native architecture significantly strengthens the resilience of public administration by providing a flexible, scalable and secure infrastructure that is up to the challenges of the modern digital landscape. With its eGov Solutions, Fabasoft is addressing the current and future tasks of public administration.

Fabasoft eGov-Suite

The Fabasoft eGov-Suite, as the established cross-sectional application for electronic records management and document management, is the focus of Fabasoft eGov Solutions and provides administration-specific use cases. Thanks to years of experience with public administration in the DACH region, the Fabasoft eGov-Suite optimally reflects the requirements of this customer segment.

New requirements arising from changes in social, legal and technical conditions can be implemented flexibly and efficiently using low-code/no-code, automation and AI-supported use case optimization. Realized best practices are incorporated into further product development via the Fabasoft Community.

The focus is on improving the quality of service in interactions with citizens and companies, accelerating internal and external processes, and providing the best possible support for employees.

Opportunities and growth potential in public administration

The demographic change in Europe is a challenge for society and economic policy that will lead to a further increase in the demand for qualified specialists in the coming years, while the working population as a whole will decline.

The use of AI technologies in public administration is increasingly changing the way the administration interacts with citizens and businesses, as well as the way it works internally. Fabasoft eGov Solutions use AI methods and innovative automation to support administrative staff, significantly increasing the quality and speed of process execution.

Low-code/no-code technology enables public administration employees to quickly define new internal processes for their authority, even without IT expertise. This improves the authority's service quality while also reducing the workload on employees.

By strengthening sales and marketing, Fabasoft is addressing the potential in the market segment for implementing further additive Fabasoft Solutions in public administration. The potential of Fabasoft eGov Solutions is seen as an opportunity to increase the share of recurring revenues in the public administration segment.

Fabasoft therefore considers itself very well positioned for upcoming public tenders as a long-standing and proven provider with a high-performance product offering and excellent references, and will continue to participate intensively in such procedures.

3.1.3. Mindbreeze

Mindbreeze has been working in the fields of enterprise search, information insight, knowledge management, and AI for almost two decades. The product Mindbreeze InSpire uses generative AI (GenAI) and other AI methods to help companies analyze, understand, and efficiently network their business-critical information. It has been in productive use at well-known international customers for many years. The company's achievements in this area are also reflected in numerous positive ratings by analyst companies. The resulting visibility in the international market offers a good starting point for further growth with and among international key accounts and partners who are specifically looking for AI-based technologies for business use.

Opportunities and growth potential of Mindbreeze

The comprehensive use of Mindbreeze technology within the Ecosystem Fabasoft PROCECO allows users to use AI applications such as a 360-degree view of an object (file, component) or chatting with documents directly in their familiar working environment (workplace integration). Mindbreeze sees opportunities in the provision of AI applications for public administration or industry, which are subject to special security requirements. Accordingly, the strategic goal is to implement further specializations for business-critical use cases in specialized fields. Insight Apps provide the basis for this through "no-code" customizability.

In addition to the partner model with a focus on value-added resellers (VAR), Mindbreeze is also making efforts with regard to independent software vendors (ISV) and value-added partners (VAP). By integrating Mindbreeze InSpire and Mindbreeze Insight Services into "content-managing" software products (content management systems), they are able to provide their customers with the advantages of AI-based applications such as 360-degree views without a lengthy development project. The partner programs are designed to further expand and strengthen the company's presence in Europe and North America and to tap into new customer groups. Mindbreeze sees opportunities for further growth in the continuing development of the existing key account management system and the provision of specialized applications such as Mindbreeze InTend to existing customers and partners, or by upselling existing installations.

3.1.4. Audits and certifications

The protection of customer and company data is an exceptionally high priority for Fabasoft. This is underpinned by targeted, consistent certifications and audits in accordance with internationally recognised standards. Ensuring the highest quality, security and service standards is guaranteed by an integrated and certified management system in accordance with ISO 9001, ISO 27001 including ISO 27018 and ISO 20000-1, among others. The certificates in accordance with ISO standards 9001, 27001 including 27018 and 20000-1 were renewed in November 2023 as part of a cross-company certification audit by the accredited certification body Quality Austria - Trainings-Zertifzierungs und Begutachtungs GmbH. The integration of further Fabasoft Group companies into the Fabasoft Group's existing ISO certificates will continue in the coming years.

At product level, this certification strategy is supplemented by demanding audits and certifications for the Fabasoft PROCECO Cloud (formerly Fabasoft Cloud) and the Fabasoft PROCECO Solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROCECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO developed on it, as well as for Mindbreeze InSpire SaaS Services:

The test report in accordance with the requirements of the criteria catalogue BSI C5:2020, issued by the BSI (German Federal Office for Information Security), is a recognised and reliable proof of the level of information security of the Fabasoft PROCECO Cloud and the Fabasoft PROCECO Solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROCECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO as well as Mindbreeze InSpire SaaS Services developed on it.

The BSI's catalogue of requirements specifies the minimum requirements that cloud service providers must fulfil. The defined information on the framework conditions ensures transparency with regard to jurisdiction and locations, availability and troubleshooting in normal operation, restart parameters in emergency operation, availability of data centres, handling of investigation requests from government agencies and certifications or attestations.

Fabasoft and Mindbreeze completed the audit again at the beginning of 2024 in accordance with the requirements of the current BSI C5:2020 criteria catalogue. Fabasoft commissioned Pricewaterhouse-Coopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), Germany, as the auditor. The corresponding audit reports were issued by PwC for Fabasoft PROCECO Cloud Services and Mindbreeze InSpire SaaS Services.

The SOC 2 audit was conducted in the 2023/2024 fiscal year for the Fabasoft PROCECO Cloud and the Fabasoft PROCECO Solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROCECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO as well as for Mindbreeze InSpire SaaS Services. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), Germany, audited whether the Trust Service Criteria (TSC) for security – issued by the American Institute of Certified Public Accountants (AICPA) – were complied with. As part of an ISAE 3000 audit, the implementation of controls was tested during a defined audit period. The audit results were finally reported to Fabasoft and Mindbreeze in an ISAE 3000 SOC 2 report.

As part of the ISAE 3402 Type 2 audit, the design and effectiveness of selected controls (derived from the COBIT 2019 framework) in the audit period from 1 January 2023 to 31 December 2023 for the Fabasoft PROCECO Cloud and the Fabasoft PROCECO Solutions Approve on Fabasoft PROCECO, Boards on Fabasoft PROCECO, Contracts on Fabasoft PROCECO, Talents on Fabasoft PROCECO and Xpublisher on Fabasoft PROCECO as well as for Mindbreeze InSpire SaaS were audited.

In May 2021, SCOPE Europe, as the responsible monitoring body, confirmed the compliance of the Fabasoft PROCECO Cloud with the requirements of the EU Cloud Code of Conduct at the highest conformity level 3 for the first time. Security and transparency are top priorities for Fabasoft. This is clearly reflected in Fabasoft's commitment to creating a trustworthy environment for European Cloud customers. In May 2024, conformity was reconfirmed by SCOPE Europe at conformity level 3.

The EU Cloud CoC was developed by representatives of European and multinational companies and organisations that are significantly involved in cloud computing. The focus was on requirements that enable cloud service providers to demonstrate their ability to comply with the GDPR. Specifically, the Code offers cloud-specific approaches and recommendations that are based on the GDPR and international standards such as ISO 27001 and ISO 27018.

The EU Cloud Code of Conduct aims to make it easier for cloud customers to decide whether certain cloud services are suitable for their intended purpose. Through its transparency, the EU Cloud CoC will create more trust and a high level of data protection in the European cloud computing market.

In December 2023, the Cyber Trust Austria Gold Label was extended for Fabasoft. The Austrian seal of approval for cyber security is based on the Cyber Risk Rating of the Competence Centre for Secure Austria (KSÖ).

The Fabasoft PROCECO Cloud fulfils the requirements of WCAG 2.1 - AA for accessible web content to a high degree and was once again awarded the WACA certificate (Web Accessibility Certificate) at silver level by TÜV Austria in June 2022, which is valid for three years. This web application does not exclude any users and enables optimal operation for all people, even with the required input/output devices such as keyboard, voice input, screen reader programme, etc.

Mindbreeze InSpire also fulfils the requirements of WCAG 2.1 - AA for accessible web content to a high degree and was awarded the WACA Silver level certificate by TÜV Austria for the first time in November 2022.

The WACA certificate is Austria's first and only seal of quality for recognising accessibility on the web (website/ applications) in accordance with the international W3C guidelines. In October 2019, Fabasoft was the first provider of a web app to be awarded the WACA certificate in silver.

3.2. Significant risks and uncertainties for the Fabasoft Group

Significant risks and uncertainties for the Fabasoft Group are seen in the following areas in particular:

3.2.1. Market and product risks

Risks in business with public sector clients

A significant part of Fabasoft's business is generated from government customers, especially in the German-speaking region. Projects in the public sector are characterized by lengthy lead and decision times, formal tendering requirements, demanding allocation procedures, and long-drawn-out testing. In project agreements and tendering procedures, such clients frequently specify increasingly stringent contractual requirements.

Any changes in this customer group, such as the impacts of budget cuts and planned savings, short-term or sustained budget freezes, alterations to product and technology specifications, project priorities or award criteria plus the emergence of new competitors or new offers from existing players can have a considerable effect on the business of the Fabasoft sales companies concerned and as a consequence also on the Fabasoft Group as a whole.

Fabasoft endeavors to counter these risks overall by providing intensive, high-quality services to existing customers, benefit-generating product and project innovations and the submission of tenders for new projects that are as competitive as possible. Furthermore, stronger positioning is planned in particular for the new cloud and appliance offers for the expansion of the customer target groups and the sales and distribution channels, both over and above the public sector and beyond the geographical focus on Europe adopted to date.

Product risks

The development of software products is always subject to the risk of software errors, security gaps and functional restrictions, which even the use of extensive quality management and test procedures can never entirely exclude. Neither can it be ruled out completely that the protected legal positions of third parties are violated in the course of development or project implementation activities. This applies to both Fabasoft and third-party products and technologies on which Fabasoft products are based or with which they interact. Such errors or restrictions may have a negative impact on customer and partner satisfaction, data security, market reputation, chances for new business and the success of implementation and operational projects, or online offers.

In order to reduce these risks, during product development and project implementation, Fabasoft not only employs manual test procedures, but also automated checks. In addition, products and service offers are also being subjected to extensive certification processes.

A risk with regard to software products and online offers based on these products is seen in the possible deferral of delivery times. This can affect not only Fabasoft's own products, but also third-party products or technologies on which the products of the Fabasoft Group are based or with which they interact. Such delays could lead to impairment of the company's market and competitive position, revenue shifts or revenue losses and even consequences such as contractual penalties, liability claims, substitute performance or reversed transactions in the project business. Furthermore, prolonged development times also cause a corresponding increase in development costs.

Partner business risks

Risks in the partner business lie in particular in the limitation or complete lack of direct customer contact and thus also in the lack of direct customer feedback for Fabasoft and the general dependency on product and sales strategies of the partners in the respective region, the possibility of reduced product loyalty of partners and the danger of the product manufacturer's reputation also being damaged in the event of problems with the project – if even they may lie within the scope of responsibility of a sales partner. Furthermore, partner business frequently restricts Fabasoft's opportunities for positioning its own brand, safeguarding company secrets and acquiring additional business. From a commercial point of view, the partner conditions granted reduce the attainable profitability and price margins in the respective individual business transactions.

With partner business in general there may also be the danger of tough competition between partners, for example in the acquisition phase for the same end client, as well as the risk of conflicts between sales channels. A further risk is seen in Fabasoft not finding sufficient or the right partners to develop and market high-quality software solutions based on the Fabasoft Group's technology in order to achieve the necessary market penetration in the intended markets.

Project business risks

Where Fabasoft companies provide project services themselves, for example on the basis of fixed price quotations, there is a particular risk of unclear or misunderstood specifications, miscalculations, deadline overshoots, penalties, problems regarding technical implementation or operation, software errors, difficulties with project management, warranty and liability claims (compensation), and issues concerning human resources (for example if key members of staff are unavailable in critical project phases). These risks may affect the Fabasoft companies directly and also indirectly via their subcontractors or suppliers. In order to encounter such risks, Fabasoft uses a tried-and-tested procedures model for project work that is subject to continuous further development.

The implementation of extensive software projects is a process which frequently necessitates significant contributions and involvement on the part of the customer. This also gives rise to certain risks that are partially or entirely beyond the company's direct scope of influence, but may have a significant impact on the overall success of the project.

In the event of project business being conducted with the help of subcontractors or suppliers, Fabasoft may be exposed to a risk as a general contractor if the partner companies fail to fulfil their contractual commitments or only do so partially or inadequately. This could entail both a negative impact on the revenue development of the Fabasoft Group as well as compromise its reputation.

Competition

The software sector in general and the enterprise content management, information insight and cloud computing segments in particular, are undergoing an intensive wave of consolidation that is giving rise to larger and more international competitors with increasingly apparent economies of scale through mergers and acquisitions. There is also still an unabated trend towards smaller manufacturers forming alliances or significantly increasing their capital resources by bringing investors on board, in order to gain a stronger presence in the marketplace. In addition there are signs that software manufacturers who already dominate markets are beginning to enter further market segments with new or new positioned products, which in turn will result in even greater pressure on prices and margins and make the task of acquiring new partners more difficult. Moreover, the acceptance and establishment of new software offers is being further complicated by the increasing degree of saturation and consolidation in the software sector.

3.2.2. Strategic risks

Risks concerning company acquisitions

There are fundamental operative risks for acquired companies or parts of companies, as also presented in this report for companies of the Fabasoft Group. There are also specific risks involved in the market review, acquisition and integration phases.

The services of external consultants are normally used in the market review phase for identifying takeover candidates, whereby the ensuing fees do not normally depend on success or only do so in part. Frustrating external and internal expenses are incurred where no suitable takeover targets can be found or an acquisition cannot be concluded. Despite the commissioning of external consultants, there are risks involved in the acquisition phase in that the risks or bad debts of the target company are not identified or quantified correctly or that synergy potential or the future business development are not correctly assessed. Risks involved in the integration phase include among others the merging of different corporate cultures, market accesses, management styles, key technologies and corporate processes.

As the acquisition procedure is normally carried out confidentially, it is mostly impossible to gain knowledge of the stance of existing customers to an acquisition in advance. For this reason negative reactions of the existing customer base cannot be precluded. Furthermore, keeping key success-critical individuals in the company, and motivated also presents a challenge. There is also the risk in connection with the above-mentioned uncertainties that the acquisition target is purchased at a too high price and that the funds invested might well be lacking elsewhere for the corporate activities of the entire Group. If such risks occur during or after the integration phase, this could lead in particular to negative impacts on sales and revenues and as a consequence on balance sheet valuations and therefore also for the Group as a whole.

Internationalization risks

Entering new markets also entails certain risks. A lack of target market knowledge and lower company recognition levels than those in the home market, strong local competition, long lead times, high start-up costs, difficulties in finding staff for key positions, internationalization and localisation expenses for the products, and possible deficits in communication and control are exemplary note in this context. The aim is to limit these and similar risk factors by additionally concentrating on a partner-oriented model that is intended to reduce the immediate project risks that may arise from the company's own tendering in complex project situations and during project implementation.

General political and economic framework conditions in the individual countries, in particular trade restrictions and contradictions or overlapping in regulatory or tax provisions, could constitute additional risk factors for more intensively internationalized business operations.

Diversification risks

The efforts aimed at reducing the risks of excessive specialization and thus the dependency upon a narrow and volatile target segment through greater product, market segment and sales channel diversification also create new and increased risk potential. These include higher marketing and research and development expenses, multiple investment projects for market preparation, risks from strategic planning and increased planning uncertainty, heterogeneous sales and organizational structures, positioning risks and risks arising from a diversified and dislocated organizational and business structure.

Special importance is attached to recruitment and internal basic and further training as a defence against these risks. Moreover, internal reporting and controlling measures are continually supplemented and further developed.

3.2.3. Operational risks

IT risks

Malfunctions, for example in the hardware, data storage or network infrastructure, in the software, data transmission lines or on the part of Internet operators, operating errors, cyber attacks, DDoS attacks, viruses, phishing attacks, Trojans, ransomware and the like or events based on force majeure, can all have a negative impact on the operation of the systems of the company as well as important systems with which these are linked can jeopardize seamless data security and recovery.

One possible consequence of such problems can be the limitation or failure of online services, sales, development and administrative activities and the online presence of the company, including statutory or regulatory prescribed announcements on the website, data error, unauthorized data access or losses as well as a limited ability to make data transmissions. This can lead subsequently to comparable effects on other companies or organizations, which use the company's (online) services for a fee or free of charge. After taking costs and risks into consideration, the company has introduced organizational and technical precautions to provide defined service levels for its internal systems. Nevertheless, the complete exclusion of such risks, especially with regard to the targeted use of criminal energy, espionage resources or weaknesses and backdoors contained in third party components, is not possible.

Risks involved in the use of AI technologies, in particular machine learning

AI technologies and processes, in particular machine learning, are used in the company's products to a varying extent and in varying forms. This involves the creation of requirement-specific models and the use of a large number of (historical) inventory data to "train" these to recognize relevant patterns in future, to carry out allocations and categorisations and to supply better results and forecasts in the case of comparable tasks. In accordance with the nature of these processes, no fixed programmatic procedure is prescribed for finding solutions, instead the system "learns" incrementally within a specific framework with the aid of the available database. It is therefore that models, output data and training cycles determine the quality of the supplied results to a significant extent. Whereby under certain circumstances and depending on the model and data this could – sometimes even after a longer period of use – result in distortions, false identifications, non-detection and overfitting of the models, for example. This would subsequently lead to incorrect, incomplete or undesired results.

Risks with regard to information security and data protection

Fabasoft attaches great importance to the protection of confidential information and personal data. Nevertheless, the risk of unauthorized third parties gaining access to this sensitive material cannot be entirely ruled out. In view of the increase in global cyber attacks on companies in all sectors, Fabasoft is making intensive efforts to continuously expand its cyber resilience.

Various organizational, technical and physical barriers and measures have been put in place to prevent unauthorized access. A catalog of criteria implemented in the procurement workflow supports the selection of securityrelevant suppliers. All security-relevant contractors, such as data centers, hardware and software suppliers or special service providers, must meet defined Fabasoft requirements, such as relevant certifications, contractually defined service levels, demonstrable compliance with security precautions, order processing agreements and signed confidentiality declarations. The information security management system installed in the company is regularly reviewed by internal and external audits to ensure that it is up to date and effective.

In addition to the purely technical aspects of information security, there is also the risk of cyber attacks in combination with manipulation and fraud on a social level. In order to raise employees' awareness of the resulting risks, professional awareness training sessions are held regularly and possible threat scenarios are simulated. In addition, Fabasoft products and cloud services are regularly audited by external bodies and the corresponding audit reports are prepared.

3.2.4. Organizational risks

Risks concerning dependence on suppliers

Customer benefits are not only determined by the performance features of the software developed by the Fabasoft Group, but also to a large extent by third-party products such as hardware and software components from external suppliers. In this context, there are risks of delays, damage or loss in transportation and warehouse logistics, both in the procurement process and in delivery to the customer. There is also a risk of complete supplier failure, for example as a result of production interruptions, capacity bottlenecks or other delivery disruptions along the supply chain.

In order to reduce dependence on individual suppliers, Fabasoft's procurement process is based on a broad range of carefully selected sources of supply and appropriatet quality management measures. In addition, the Fabasoft Group endeavors to counter the risk described above through defined, documented and certified business processes as well as continuous training and further education of the team members involved.

Personnel risks

It is essential for Fabasoft's growth path to find a sufficient number of additional highly qualified specialists and to retain them in the company in the long term. The demand for specialists in the IT sector in particular clearly outweighs the supply on the labor market. Therefore, there is a risk that personnel requirements cannot be met with sufficiently qualified staff.

Another risk is that a large number of employees could leave the company at short notice and that no adequate replacement could be found in the short term. This would have a negative impact on business development and the company's ability to meet existing obligations and would likely lead to a negative development in customer satisfaction and revenue, including possible contractual penalties, liability claims or other adverse consequences for the company.

Understaffing can also mean that potential business opportunities cannot be realized or can only be partially realized. If such personnel risks materialize at suppliers, sales or implementation partners, this can also have a negative impact on the company.

Compliance and awareness risks

Fabasoft's business activities in all business fields are subject to the highest standards of information security, data protection, and adherence to comprehensive legal provisions and compliance standards. There is a risk that members of governing bodies or employees of the Fabasoft Group may violate legal provisions and internal company guidelines through conscious or unconscious misconduct, which could result in regulatory or even criminal consequences for the actors involved as well as considerable damage to Fabasoft's reputation.

In order to meet these strict requirements, Fabasoft attaches particular importance to its extensively implemented control mechanisms and internal compliance processes and guidelines. The valid and internationally recognized system and product certifications as well as internal training and awareness programs reflect Fabasoft's high level of compliance and ensure that key business activities meet both our own expectations and those of our partners and other stakeholders, in addition to legal requirements, in order to minimize compliance and awareness risks as far as possible.

3.2.5. External risks

Risks from the effects of the macroeconomic and geopolitical environment

Fabasoft operates neither subsidiaries nor branches in Ukraine, in the Russian Federation, in Belarus or in Israel, nor does it obtain any relevant development services from these countries. There is likewise no relevant end customer or partner business in any of the countries mentioned above. From today's perspective, no significant effects are expected for the company's business from military conflicts and the associated sanctions against Russia and others on customers and partners of the company, for example due to adverse effects on supply chains, the overall economic climate, public finances, etc. It is equally impossible to quantify the heightened risk of cyber attacks and other attacks on critical infrastructures.

Risks from pandemics and environmental disasters

The spread of a pandemic or possible environmental or natural disasters could repeatedly lead to significant disruptions of operational business processes and public life. Fabasoft has taken comprehensive measures at an early stage to maintain its operational business as best as possible, which are maintained and continuously evaluated for possible future use. Proven emergency and crisis plans as well as defined measures are adapted or expanded as needed in response to new findings.

Climate-related risks

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

When assessing climate-related risks, a distinction was made between acute and chronic physical impacts on business activities and transitory risks to the business model. Physical risks are natural events such as floods, forest fires or extreme heat, which primarily have an impact on the supply chain, the locations of offices and data centres or lead to price fluctuations due to a shortage of resources. Transitory risks exist in connection with the transition to a low-carbon economy. These can take the form of higher operating costs due to carbon prices, a changing regulatory landscape and the associated costs on the market.

A total of thirteen risks were identified as relevant to the Fabasoft Group. These include, for example, disruptions in the supply chain for raw materials that could affect the timely delivery of hardware or regional power outages that could lead to operational disruptions. Existing controls were considered when assessing the impact and probability of all climate-related risks.

Although the assessment of the residual risk is currently below the internally defined materiality threshold for all identified climate-related risks, the possibility of an impact on the financial position over a long-term horizon cannot be ruled out.

3.2.6. Financial risks

There is a risk that customer expectations of individual AI use cases of the Fabasoft Group will not be met in the medium term in such a way as to compensate for the significant initial investments and the resulting increase in monthly expenses. For example, if use cases prove not to be useful from the customer's perspective or if AI is used in areas for which it is not suitable. This can lead to a reduction in revenues and a simultaneous increase in expenses, which can have a negative impact on earnings.

Due to the customer structure and the resulting constellation of customer requirements the risk of defaults on receivables is still considered to be relatively low. Especially where usage fees are concerned, such fees are received at the start of the term and are coupled with performance of the service. An interest rate risk occurs in the case of other financial assets. As these can be converted into cash at short notice, the interest risk is therefore deemed immaterial. Exchange rate risks occur mainly when receivables or assets at financial and insurance institutions exist in a currency other than the local currency of the company.

Depending on the extent and duration of a macro-economic shock, higher risks could occur, for example, with regard to the security and impairment of assets at financial and insurance institutions and receivables as well as the difficulty entailed in maintaining the purchasing power of assets and revenues from ongoing obligations in a conceivable highly inflationary overall scenario.

The existing continuing obligation contracts of the company with customers and partners for recurring revenues normally include possibilities for inflation adjustment. This is usually measured based on a general, published index. The adjustment is often possible to specific effective dates or according to specific deadlines and after a specific threshold value has been exceeded. This normally gives rise to a time lag between the rise in inflation and the effectiveness of the respective price adjustments on sales. It can furthermore be observed that the price increases, in particular with regard to relevant suppliers and the upward trend of prices for personnel costs and personnel acquisition costs, are sometimes significantly higher than the published indices upon which contract adjustments are based. With regard to the company's cash and cash equivalents, there is still a risk that the gap between the current interest rate level and the loss of purchasing power as a result of rising inflation will widen further.

3.2.7. Internal control and risk management system

As part of its overall responsibility, the Managing Board of Fabasoft AG defines the principles of an internal control and risk management system which enables those responsible for control and processes to identify risks at an early stage, analyze them and take appropriate countermeasures.

The people responsible for controls and processes ensure that the controls and processes assigned to them are appropriate, effective and efficient. Moreover, they make sure that internal and external sources of information relevant to the functioning of the controls and processes are taken into account and that controls are carried out at the defined time or interval. They communicate the necessary information on control objectives and implementation (control execution) to those performing the control.

The group-wide risk management system of the Fabasoft Group with its uniform and process-oriented framework conditions pursues the goal of being able to identify significant developments that could jeopardize the continued existence of the company at an early stage by means of an early risk detection system.

Group accounting-related internal control and risk management system

The Fabasoft Group has an extensive reporting system based on key figures for the early identification of risks. Finance is the organizational unit responsible for reporting. The data comprises strategic and operative figures that are put together for reporting on a monthly basis. The regular reviews between the Managing Board and the organizational units are used to coordinate the detailed plans for the overall plan, the target/actual comparison and an outlook for the following quarters.

In addition to this an internal control system (ICS) has been established as follows: Fabasoft has installed an internal control system in the areas of Human Resources, Purchasing, Revenue Cycle and Tax that uses control points based on the two person principle and appropriate process definitions and guidelines to ensure that laws and standards are complied with and prevent dishonest and unlawful activities.

The ICS guidelines for Human Resources, Purchasing, Revenue Cycle and Tax have been thoroughly documented in writing and each one linked to a coordinated control matrix. These matrices contain all the automated and manual internal controls that must be carried out. The documents (ICS guideline and control matrix) are revised and updated once a year or as required in the event of fundamental changes. Observance of the control points is examined at regular intervals with random checks. Risk management and the internal control system (ICS) contain responsibilities and competencies, apply to all subsidiaries and are administered centrally from the Linz headquarters.

4) Significant transactions with related companies and persons

In the period under review no significant businesses of affiliated companies and persons were affected.

Linz, 6 November 2024

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

Consolidated interim balance sheet as at 30 September 2024

Assets in kEUR	Note	30/09/2024	31/03/2024
Non-current assets
Property, plant and equipment	3.1./3.4.	23,179	23,928
Intangible assets	3.1.	6,520	6,857
Other financial assets	3.3.	153	145
Other non-financial assets		263	376
Deferred income tax assets		830	822
		30,945	32,128
Current assets
Trade and other receivables		16,792	16,532
Contract assets		3,339	2,516
Income tax receivables		195	84
Cash and cash equivalents		23,986	25,068
		44,312	44,200
Total assets		75,257	76,328

Equity and liabilities in kEUR	Note	30/09/2024	31/03/2024
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
Treasury shares	3.2.1	-2,539	-2,016
Other reserves		-740	-740
Adjustment item for currency conversion		365	223
Retained earnings		3,432	-22
		31,073	28,000
Non-controlling interest		2,207	2,638
		33,280	30,638
Non-current liabilities
Provisions for severance payments		3,010	3,043
Deferred income tax liabilities		973	908
Other payables	3.3./3.4.	5,483	6,149
Investment grants	3.4.	87	106
		9,553	10,206
Current liabilities
Trade and other payables		13,170	13,704
Liabilities for income taxes		1,631	1,795
Contract liabilities	3.4.	17,623	19,985
		32,424	35,484
Total equity and liabilities		75,257	76,328

Consolidated statement of comprehensive income for the first half of the 2024/2025 fiscal year

in kEUR	Note	April – Sep 2024	April – Sep 2023
Sales revenue	5.	42,534	39,478
Other operating income		39	260
Expenses for purchased services		-2,389	-2,414
Employee benefits expenses		-22,959	-20,820
Depreciation and amortization expenses	5.	-3,959	-3,767
Other operating expenses		-6,637	-6,040
Operating result	5.	6,629	6,697
Finance income		69	14
Finance expenses		-177	-189
Result before income taxes		6,521	6,522
Income taxes		-1,748	-1,741
Result for the period		4,773	4,781
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion		182	199
Other result		182	199
Total result		4,955	4,980
Result for the period attributable to:
Equity holders of the Parent Company		4,544	4,431
Non-controlling interest		229	350
Total result attributable to:
Equity holders of the Parent Company		4,686	4,592
Non-controlling interest		269	388
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)		0.41	0.40

Consolidated statement of comprehensive income for the second quarter of the 2024/2025 fiscal year

in kEUR	Note July – Sep 2024	July – Sep 2023
Sales revenue	22,101	19,787
Other operating income	21	220
Expenses for purchased services	-1,200	-1,145
Employee benefits expenses	-11,185	-10,154
Depreciation and amortization expenses	-1,970	-1,882
Other operating expenses	-2,847	-2,729
Operating result	4,920	4,097
Finance income	43	11
Finance expenses	-87	-98
Result before income taxes	4,876	4,010
Income taxes	-1,292	-1,043
Result for the period	3,584	2,967
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion	109	78
Other result	109	78
Total result	3,693	3,045
Result for the period attributable to:
Equity holders of the Parent Company	3,352	2,769
Non-controlling interest	232	198
Total result attributable to:
Equity holders of the Parent Company	3,435	2,832
Non-controlling interest	258	213
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)	0.30	0.25

Consolidated cash flow statement for the first half of the 2024/2025 fiscal year

in kEUR	Note	April – Sep 2024	April – Sep 2023
Cash flows from operating activities
Result before income taxes		6,521	6,522
Net finance expenses		108	175
Operating result		6,629	6,697
Adjustments in non-cash items
Depreciation and amortization expenses	5.	3,959	3,767
Effects from currency conversion		65	-90
Changes in non-current provisions		-32	99
Changes in other non-financial assets recognized in profit and loss		113	63
Loss from disposal of property, plant and equipment		22	204
Income from the dissolution of investment grants	3.4.	-19	-23
Income from appreciation of other financial assets		-8	0
		10,729	10,717
Adjustments in net current assets
Changes in trade and other receivables (without income tax receivables)		-287	-756
Changes in contract assets		-817	362
Changes in trade and other payables (without income tax and lease liabilities)		-364	-1,606
Changes in contract liabilities		-2,306	-1,917
		-3,774	-3,917
Cash generated from operations		6,955	6,800
Interest received		35	10
Interest paid		-166	-173
Income taxes paid		-1,971	-2,071
Net cash generated from operating activities		4,853	4,566
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	3.1.	-2,182	-7,413
Proceeds from sale of property, plant, and equipment and intangible assets		2	0
Redemption of earn-out liabilities from company acquisitions	3.3.	-400	0
Investment grants received	3.4.	0	88
Net cash used in investing activities		-2,580	-7,325
Cash flows from financing activities
Redemption of lease liability		-1,107	-908
Payments for the purchase of treasury shares		-523	0
Dividend distribution		-1,090	-3,300
Dividend distribution to non-controlling interest		-700	-686
Payments from transactions with non-controlling interest		0	157
Net cash used in financing activities		-3,420	-4,737
Changes in cash and cash equivalents		-1,147	-7,496
Development in cash and cash equivalents
Cash and cash equivalents at beginning of period		25,068	26,563
Effect of exchange rates changes		65	135
Decrease		-1,147	-7,496
Cash and cash equivalents at end of period	4.	23,986	19,202

Consolidated statement of changes in equity for the first half of the 2024/2025 fiscal year

	Attributable to equity holders of the Parent Company
in kEUR	Note	Share capital	Capital reserves	Treasury shares	Other reserves	Adjustment item for currency conversion	Retained earnings	Total	Non con trolling interest	Total equity
Balance at 31 March 2024		11,000	19,555	-2,016	-740	223	-22	28,000	2,638	30,638
Other result		0	0	0	0	142	0	142	40	182
Result of the period		0	0	0	0	0	4,544	4,544	229	4,773
Total result		0	0	0	0	142	4,544	4,686	269	4,955
Dividend distribution		0	0	0	0	0	-1,090	-1,090	-700	-1,790
Purchase of treasury shares	2.2.3.	0	0	-523	0	0	0	-523	0	-523
Balance at 30 September 2024	3.2.	11,000	19,555	-2,539	-740	365	3,432	31,073	2,207	33,280

		Attributable to equity holders of the Parent Company
in kEUR	Note	Share capital	Capital reserves	Treasury shares	Other reserves	Adjustment item for currency conversion	Retained earnings	Total	Non con trolling interest	Total equity
Balance at 31 March 2023		11,000	19,555	0	-666	115	-5,996	24,008	2,710	26,718
First time application IAS 12.22 A		0	0	0	0	0	61	61	0	61
Balance at 1 April 2023		11,000	19,555	0	-666	115	-5,935	24,069	2,710	26,779
Other result		0	0	0	0	161	0	161	38	199
Result for the period		0	0	0	0	0	4,431	4,431	350	4,781
Total result		0	0	0	0	161	4,431	4,592	388	4,980
Dividend distribution		0	0	0	0	0	-3,300	-3,300	-686	-3,986
Transactions with non-controlling interest		0	0	0	0	0	140	140	17	157
Balance at 30 September 2023	3.2.	11,000	19,555	0	-666	276	-4,664	25,501	2,429	27,930

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2024

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 Ecosystem, Fabasoft combines selected, high-performance solutions for internal and cross-company 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 2024 to 30 September 2024.

2) Accounting policies

2.1. Basis of preparation

The consolidated interim financial statements dated 30 September 2024 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 2024 were also applied for the preparation of the interim consolidated financial statements.

The following revised IASB standards are mandatory for the first time for the 2024/2025 fiscal year.

Standard	Content	Adopted and to be applied to new fiscal years as of
IFRS 16	Liabilities in a sale and leaseback	January 2024
IAS 1	Classification of liabilities as current or non-current	January 2024
IAS 1	Non-current liabilities with covenants	January 2024
IAS 7 and IFRS 7	Supplier Finance Arrangements	January 2024

The above listed new versions or amendments have not significant impacts on the assets, liabilities, financial position and profit or loss of the Group. 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 Septmeber 2024 and in accordance with IFRS and the interpretation of the IFRS interpretation committee as adopted by the EU.

2.2.1. Consolidation scope

As at the interim balance sheet date, 30 September 2024, 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 Oblivation GmbH	Linz/Austria	51
Hon24 Immobilien GmbH	Linz/Austria	100
Fabasoft Deutschland GmbH	Frankfurt am Main/Germany	100
Fabasoft 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 InTend GmbH	Linz/Austria	68.4
Fabasoft Xpublisher Inc.	Chicago/USA	60

2.2.2. Changes to the scope of consolidation

On 11 September 2024, Fabasoft AG founded a wholly owned subsidiary, Hon24 Immobilien GmbH, with its registered office in the political municipality of Linz. Full consolidation of Hon24 Immobilien GmbH was effected for the first time with date of establishment.

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 September 2024, the company's share capital was kEUR 11,000 (31/03/2024: kEUR 11,000). It is comprised of 11,000,000 individual shares (31/03/2024: 11,000,000) at a nominal value of EUR 1.00 per share.

The capital reserve amounting to kEUR 19,555 (31/03/2024: kEUR 19,555) affects premiums to the amount of kEUR 17,173 (31/03/2024: kEUR 17,173). The remainder results in an amount of kEUR 2,069 (31/03/2024: kEUR 2,069) from reorganizations and in an amount of kEUR 313 (31/03/2024: kEUR 313) from former options programmes.

The following resolutions, among others, were made at the Fabasoft AG Annual General Meeting on 2 July 2024:

A dividend of EUR 0.10 per dividend-bearing share was paid out for the 2023/2024 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 resolution of the Annual General Meeting of 3 July 2023 on item 11 of the agenda regarding "authorized capital" remains unchanged.

3.2.1. Treasury shares

The resolution of the Managing Board dated 13 August 2024, made after approval of the Supervisory Board, to make use of the authorization of the General Meeting on 2 July 2024 to purchase its own shares according to Section 65 (1) (4) and Section 65 (1) (8) of the Austrian Stock Corporation Act (Aktiengesetz, AktG) was made public on 14 August 2024 and can be viewed in detail on the investors section of www.fabasoft.com.

A total of 131,439 own shares are held on the closing date 30 September 2024, of which 33,221 were purchased in the second quarter of fiscal year 2024/2025. The costs this entailed for the company amounting to kEUR 2,539 are disclosed in a separate adjustment item in equity.

No treasury shares were sold in the period under review.

3.3. Financial instruments

The financial instruments on 30 September 2024 break down as follows:

Balance sheet item in kEUR	Book value	Fair Value – Level I (through profit and loss)	Fair Value – Level III (through profit and loss)	Amortized costs	No financial instrument
Cash and cash equivalents	23,986	0	0	23,986	0
Trade and other receivables	16,792	0	6	14,523	2,263
Other financial assets	153	153	0	0	0
Other payables	5,483	0	533	0	4,950
Trade and other payables	13,170	0	287	4,916	7,967

The financial instruments on 31 March 2024 broke down as follows:

Balance sheet item in kEUR	Book value	Fair Value – Level I (through profit and loss)	Fair Value – Level III (through profit and loss)	Amortized costs	No financial instrument
Cash and cash equivalents	25,068	0	0	25,068	0
Trade and other receivables	16,532	0	7	14,541	1,984
Other financial assets	145	145	0	0	0
Other payables	6,149	0	526	0	5,623
Trade and other payables	13,704	0	684	3,392	9,628

The amount reported under trade and other receivables measured at fair value constitutes other receivables. These other receivables result from the acquisition of Fabasoft 4teamwork AG and derive from the valuation at fair value of the contingent purchase price.

Other financial assets relate to securities (investment certificates) to the amount of kEUR 153 (31/03/2024: kEUR 145). The fair values of the securities are derived from the current market value.

The amount reported under other payables as well as trade and other payables measured at fair value constitutes the earn-out component from the acquisition of Fabasoft 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 2025, 31 March 2026 or 31 March 2027 is kEUR 900 (31/03/2024: kEUR 1,300). If the defined performance indicates are not met, the entitlement is transferred to the following year. Should the specific performance indicators fall short of the targets after 31 March 2027 no earn-out payment is made.

The defined performance indicators were achieved in the 2023/2024 fiscal year, for this reason part of the earn-out component amounting to kEUR 400 was paid out in the first quarter of 2024/2025 fiscal year.

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 826 as at 30 September 2024 (31/03/2024: kEUR 739), the remaining amount of kEUR 16,797 (31/03/2024: kEUR 19,246) relates to deferred revenue, in particular from software updates, fees for right of use and recurring professional services.

The right-of-use assets pursuant to IFRS 16 are reported in the balance sheet item "Property, plant and equipment" and amounted to kEUR 6,488 as at 30 September 2024 (31/03/2024: kEUR 7,115), the leasing liabilities are reported at an amount of kEUR 4,951 as at 30 September 2024 (31/03/2024: kEUR 5,623) in non-current other payables and at an amount of kEUR 2,034 (31/03/2024: kEUR 1,981) 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 and up to 30 % of the investments made in e-charging infrastructure. They were recognized as a liability to the amount of kEUR 87 (31/03/2024: kEUR 106) and to the amount of kEUR 9 (corresponding period of the previous year: kEUR 23) 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 – September 2024 in kEUR	Austria	Germany	Switzerland	Other coun tries	Group
Gross sales	30,005	19,739	3,759	3,354	56,857
Less intersegmental sales	13,526	629	108	60	14,323
Sales with external customers	16,479	19,110	3,651	3,294	42,534
Operating result	3,558	2,872	416	-217	6,629
Depreciation and amortization expenses	2,914	473	147	426	3,959

Reconciliation in kEUR

Operating result segments	6,629
Financial result Group	-108
Result before income taxes	6,521

April – September 2023 in kEUR	Austria	Germany	Switzerland	Other coun tries	Group
Gross sales	26,969	19,654	3,821	4,172	54,576
Less intersegmental sales	-13,734	-1,079	-99	-186	-15,098
Sales with external customers	13,195	18,575	3,722	3,986	39,478
Operating result	4,014	2,663	280	-260	6,697
Depreciation and amortization expenses	2,478	528	282	479	3,767

Reconciliation in kEUR

Operating result segments	6,697
Financial result Group	-175
Result before income taxes	6,522

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 – September 2024	April – September 2023
Recurring revenue	24,241	21,123
Non-recurring revenue	18,293	18,355
thereof software	548	756
thereof professional services	17,745	17,599
Total	42,534	39,478

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 – September 2024	April – September 2023
Employees	498	470

6.1.2. Managing Board of Fabasoft AG

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)

6.1.3. Supervisory Board of Fabasoft AG

em. o. Univ.-Prof. Mag. Dr. Friedrich Roithmayr (Chairman of the Supervisory Board) FH-Prof. Univ.Doz. DI Dr. Ingrid Schaumüller-Bichl (Second deputy) Prof. Dr. Andreas Altmann (First deputy) Mag.a Michaela Schwinghammer-Hausleithner (Member)

6.1.4. Other affiliated companies and employees

Fallmann & Bauernfeind Privatstiftung, Linz, main shareholder of Fabasoft AG

Mag.a Birgit Fallmann, wife of Prof. Dipl.-Ing. Helmut Fallmann, employee of Fabasoft AG (continuous emoluments kEUR 29, corresponding period of the previous year kEUR 28).

There are no further business relationships with other affiliated companies and employees in the first half of the 2024/2025 fiscal year.

6.2. Direct and indirect impacts of the macroeconomic and geopolticial environment

Fabasoft does not operate any subsidiaries or branches in Ukraine, the Russian Federation, in Belarus or in Israel, 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. From today's perspective, no significant effects are expected for the company's business from military conflicts and the associated sanctions against Russia and others on customers and partners of the company, for example due to adverse effects on supply chains, the overall economic climate, public finances, etc. The increased risk of cyber attacks or other attacks on critical infrastructures cannot be quantified either. Inflation-related effects and the changing interest rate level are included in the general risk assessment and are taken into account accordingly in the relevant business processes.

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

On 30 October 2024, the newly founded project company Hon24 Immobilien GmbH signed the purchase agreement for the office building at Honauerstrasse 2 and 4, 4020 Linz, with the previous owner for a purchase price of kEUR 15,000. Fabasoft's acquisition of the office building will now strengthen this location, where Fabasoft AG and some of its affiliated companies already had their headquarters.

A partial amount of kEUR 12,000 will be financed independently by the project company at matching maturities. For the remaining amount plus ancillary fees (real estate transfer tax, court registration fee for ownership and right of lien), the Fabasoft AG has made a grant commitment of kEUR 4,000. The purchase agreement is to be executed in the land register as soon as possible.

Linz, 6 November 2024

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 STATEMENTS

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements of Fabasoft AG, Linz, for the period from 1 April 2024 to 30 September 2024. These condensed consolidated interim financial statements comprise the consolidated interim balance sheet as of 30 September 2024 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 2024 to 30 September 2024 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.

Statement on the condensed consolidated interim management report for the 6 month period and on management's statement in accordance with Section 125 Austrian Stock Exchange Act (BörseG) We have read the condensed interim group management report and assesed whether it does not contain any obvious contradictions to the condensed interim consolidated financial statements. In our opinion, the condensed interim group management report does not contain any obvious contradictions to the condensed interim consolidated financial statements.

The interim financial information contains the statement by management in accordance with Section 125 (1) (3) Austrian Stock Exchange Act.

Linz, 6 November 2024

Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.

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

STATEMENT OF ALL LEGAL REPRESENTATIVES

We, Prof. Dipl.-Ing. Helmut Fallmann, Ing. Oliver Albl and Matthias Wodniok, as Members of the Managing Board and statutory representatives of Fabasoft AG confirm that, to the best of our knowledge, the condensed interim financial statements drawn up in accordance with the applicable accounting principles present the truest and fairest view possible of the assets, finances and earnings of all the companies included in the consolidation and that the interim six-months management report presents the truest and fairest view possible of the assets, finances and earnings with regard to the information stipulated in Section 125 (4) of the Austrian Stock Exchange Act 2018.

Linz, 6 November 2024

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

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, 2024. 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:

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 Oblivation 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 InTend 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

Fabasoft 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

Fabasoft 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 | PHONE: +43 732 606162-0 | FAX: +43 732 606162-609