Fabasoft AG — Interim / Quarterly Report 2024

Aug 9, 2024

Fabasoft AG 2024/2025

3 Months Report 1 April – 30 June 2024

KEY DATA

in kEUR	April – June 2024	April – June 2023	Change
Sales revenue	20,434	19,691	3.8 %
Result before income taxes	1,647	2,512	-34.4 %
EBIT (Operating result)1)	1,709	2,600	-34.3 %
EBITDA1)	3,698	4,485	-17.5 %
Result for the period	1,190	1,814	-34.4 %
Equity at end of period	31,201	28,185	10.7 %
Cash flows from operating activities	75	951	-92.1 %
Cash and cash equivalents at end of period	23,349	25,307	-7.7 %
Employees at end of period	495	466	6.2 %
Basic earnings per share (in EUR)	0.11	0.15	-26.7 %

1) Definition of the key figures: www.fabasoft.com under Investors, Business Reports, Alternative Performance Measures

TABLE OF CONTENTS

Key Data .	3
Performance Profile .	6
About the Fabasoft Group .	6
Group Structure .	7
Business Model .	7
Product Portfolio .	8
Report on the first three months of the 2024/2025 fiscal year .	16
Business Status .	16
Topics worthy of mention .	17
Outlook .	18
Consolidated Interim Financial Statement .	20
Consolidated Interim Balance Sheet .	20
Consolidated Statement of Comprehensive Income .	21
Consolidated Cash Flow Statement .	22
Consolidated Statement of Changes in Equity .	23
Notes to the Consolidated Interim Financial Statements .	24
Report on the auditors' review .	32
Imprint .	34

PERFORMANCE PROFILE

About the Fabasoft Group

Fabasoft is one of the leading software product companies and cloud service providers for digital document, process and records management in Europe. 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 use cases in all Fabasoft Ecosystems. 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 artificial intelligence as well as from faster and more cost-efficient work completion and improved compliance.

The Fabasoft Group is represented by subsidiaries in Germany, Austria and Switzerland as well as in the USA by 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 June 2024.

Group structure

Fabasoft Group as of 30 June 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
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 PROCECO partners in the professionalization of their company and offer comprehensive advice and support in all phases of cooperation.

PROCECO partners benefit from the support of the Fabasoft Competence Centers (CC) through know-how transfer, standards and best practices in the areas of organization, product development, AI, marketing, sales and professional services, among others. The Competence Center Products offers support in the development process of Fabasoft PROCECO Solutions, while the Competence Center AI designs and implements the AI use cases of Fabasoft PROCECO Solutions based on the Insight Services of Mindbreeze InSpire. The collaboration with the Competence Center Marketing focuses on the brand, positioning and the sales marketing process, i.e. lead generation via analog and digital channels. The leads generated in this way are further processed by the respective solution sales team with the support of the Competence Center Sales. The Professional Services Competence Center is responsible for the transfer of expertise 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 offer 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 focused on 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, thereby increasing transparency and decision-making reliability while simultaneously reducing process costs.

The Fabasoft PROCECO Cloud forms 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 creates the basis for seamless and efficient collaboration within the company and across company boundaries. The powerful feature set, as the basis of Fabasoft PROCECO Solutions, enables organizations of all sizes to optimize their digital business processes and drive digital transformation.

SEAMLESS INFORMATION TRANSFER

The shared process and data world creates a fast and consistent exchange of information across departments and locations. Everyone involved works with the same information and thus benefits from greater transparency and decision-making security. The comprehensive ECM functions of the Fabasoft PROCECO Cloud ensure efficient management, access from any location at any time, and the audit-proof storage of documents. Data is also protected by security technologies such as encryption, authorization concepts and audit trails.

The collaboration and the exchange of documents with internal and external business partners takes place in secure "Teamrooms". Role-based authorizations clearly regulate who can create, edit and view which content.

With the Fabasoft web cloud client and the seamless integration of common office software, users can also edit their documents directly in their familiar working environment. The Cloud folder also 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 in the web client or saved locally. Thanks to the mobile apps for iOS and Android, users also benefit from flexible task management. This means that users always have their important documents and tasks to hand, regardless of their location and device.

FULL PROCESS AUTOMATION

The shared process and data world ensures consistent business processes while simultaneously reducing errors and process costs. Companies benefit not only from increased productivity, but also from the ability to model, optimize, automate and monitor processes seamlessly across departmental and company boundaries. The Fabasoft PROCECO Cloud features powerful workflow technology to achieve efficiency and transparency in business processes. Ad-hoc processes and a graphical BPMN 2.0 editor are available to users for creating workflows, enabling them to model business processes even without programming knowledge.

BPMN 2.0 (Business Process Model and Notation) support allows individual business processes to be modelled and the benefits of platform-independent notation to be realized. The process diagrams created are executed directly using the workflow engine. Ad-hoc processes allow users to react flexibly to situations and invite internal or external persons to participate in process steps such as "check", "release" or "approve", etc.

By integrating digital signatures into existing workflows, companies can also design binding processes more efficiently and without media discontinuity. In addition to simple electronic signatures, the Fabasoft PROCECO Cloud offers the option of adding a personal qualified electronic signature to documents. This signature meets the high security standards of the eIDAS Regulation.

EFFICIENT TASK MANAGEMENT

All tasks and process steps from all Fabasoft PROCECO Solutions are summarized in a clearly arranged individual to-do list, the worklist. Additionally, users receive push- and e-mail-notifications about new tasks. These tasks can be processed in a structured manner using a PC, tablet or smartphone. This means that 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 functions that ensure protection, availability and integrity of business-critical information. The "Time Travel" function in the Fabasoft PROCECO Cloud, for example, enables documents, metadata or even Teamrooms to be viewed at any points in time in the past. All changes can be tracked at any time and older versions can be restored if required. The "Auditing" function logs all access to objects. It is also possible to automatically add dynamic watermarks to documents. The Fabasoft PROCECO Cloud is suitable for the audit-proof and GoB-compliant storage of documents so that they are equivalent to the paper original in electronic form. This seamless versioning of documents and automatic audit-proof archiving make 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 tap into their knowledge, use it effectively and thus improve their decision-making. With the semantic full-text search and the Insight Services, users can find the information they need more quickly and thus make well-founded decisions more efficiently. 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. This gives employees an activity- and role-dependent view, 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. Through the combination of large language models and insight engines (via RAG – Retrieval Augmented Generation), such as Mindbreeze InSpire, companies can guarantee the long-term security of their corporate data. Information is not passed on to third parties or analyzed. The precise and fact-based answers can also be checked at any time using the sources provided.

CONSISTENT USER EXPERIENCE

All Fabasoft PROCECO Solutions are characterized by a uniform functionality and user interface. This enables users to work intuitively and onboard new colleagues quickly. The accessible and responsive user interface enables easy operation and navigation, regardless of previous 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. What is more, the Fabasoft PROCECO Cloud is accessible to all users, regardless of their abilities or limitations. It supports users with visual impairments with both input and display. The web client also enables full keyboard operation and therefore efficient working without a mouse. Support for the WAI-ARIA standard also ensures that the content is recognized and interpreted by screen readers and other aids.

The user interface of the Fabasoft PROCECO Cloud is clearly structured, easy to navigate and self-explanatory. The tree structure and breadcrumbs quickly lead to the desired storage location, even for complex structures. Thanks to comprehensive drag-and-drop functions, users can complete their tasks quickly and easily. Files and entire folder structures can be conveniently imported or downloaded using drag-and-drop. Within the web client, drag-and-drop is used to move documents and folders. In addition, the Fabasoft PROCECO Cloud offers extensive options for adapting the user interface to the customer-specific corporate design to ensure a uniform appearance.

SIMPLE EXTENSION

Fabasoft PROCECO Solutions are easy to expand due to their consistent functionality and user interface. Companies thus benefit from rapid adaptation to their needs. Extensive low-code/no-code functionalities in the Fabasoft PROCECO Cloud ensure simple and individual adaptation of the solutions to the respective company - without any programming knowledge. Intuitive graphical interfaces and modular building blocks enable specialist departments to implement new requirements independently and without additional IT staff.

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

Template management enables companies to create and manage individual template and text module collections and make them available for all users. Cloud administrators have control and an overview of all existing and approved templates. In addition, each user has the option of defining personal templates, processes and default settings.

HIGH DATA SECURITY

Both the Fabasoft PROCECO Cloud as the technological basis and the Fabasoft PROCECO Solutions have comprehensive security measures that guarantee the protection of company data at high level. 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 or 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, such as two-factor authentication. This creates a protected and trustworthy working environment. The Fabasoft PROCECO Cloud also enables login via digital certificates, single sign-on via Active Directory Federation Services (AD FS) or SAML 2.0, so that users can log in to the Cloud without having to enter an additional login and password.

The Fabasoft Secomo appliance enables secure end-to-end encryption for the Fabasoft PROCECO Cloud. End-toend encryption protects the documents at the workstation or on the mobile device. The keys remain exclusively with the appliance operator. The keys are protected with 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 to store company certificates for the legally compliant digital signature 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 support developers in implementing new PROCECO solutions quickly and easily.

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

Fabasoft app.test is the tool for the functional automation of software tests in the Fabasoft PROCECO Cloud. During test automation, Fabasoft app.test ensures that the software is tested in the same way that real users 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 time behavior of applications. The product tracks the transactions triggered by requests, maps their path through the hardware and software infrastructure and thus makes it possible to analyze the execution in Fabasoft products and in instrumented third-party products. With this information, the DevOps and support teams can quickly identify time-critical or conspicuous sequences and components and take appropriate measures. The functions for monitoring the availability of extensive services or individual workflows round off the support for operating processes.

The Fabasoft PROCECO Solutions

Approve on Fabasoft PROCECO

The technical document management Fabasoft Approve is the Fabasoft PROCECO Solution for the efficient management of technical data and documents in the industry. Cross-company processes network project partners along the value chain and digitally map the entire information life cycle for industrial products. Thanks to the simple adaptability via no-code/low-code, customer-specific requirements in the area of technical documentation, quality management or transmission management can be implemented within a very short time. Fabasoft Approve is suitable for handling large-scale industrial projects, sometimes in the infrastructure sector or in special machine and plant construction.

Boards on Fabasoft PROCECO

The digital meeting management Fabasoft Boards is the Fabasoft PROCECO Solution for the efficient organization and execution of meetings at management level. The functionalities include planning meetings, submitting motions and conducting votes. The audit-proof and unalterable minutes are then created. These can be digitally checked and approved using a circulation process. The product enables all meeting participants to prepare and follow up meetings efficiently and from any location and it supports organizations in meeting their compliance requirements.

Contracts on Fabasoft PROCECO

The digital contract management Fabasoft Contracts is the Fabasoft PROCECO Solution for the simple creation, transparent management and audit-proof archiving of contracts. It also promotes secure collaboration between internal and external stakeholders, including in legal matter management. The intelligent standard product reads out the relevant data, provides templates, text modules and a clause library and provides the necessary overview for rapid information and decision-making thanks to customizable lists and dashboards.

Integrated workflow and deadline management with a reminder function provides support when concluding contracts and meeting deadlines. In addition, the system's own legally valid digital signature speeds up the signing process. Fabasoft Contracts is used across all industries for any legal matters.

Oblivation on Fabasoft PROCECO

The AI-based reporting software Fabasoft Oblivation is the Fabasoft PROCECO Solution for automated CDP sustainability reporting. More than 25,000 companies report to the CDP every year.

Fabasoft Oblivation uses AI capabilities to optimize data collection and collaboration between finance and sustainability teams. Companies are able to identify critical data points, collaborate with subject matter experts, and improve their CDP scores through accurate score estimates and actionable recommendations.

OneGov GEVER on Fabasoft PROCECO

The digital business administration OneGov GEVER is the Fabasoft PROCECO solution for the legally compliant creation, processing and management of dossiers. The solution enables the simple and intuitive design of individual business processes and their AI-supported automation. Powerful low-code/no-code functions ensure the rapid implementation of new requirements – even without programming knowledge. With the native app for mobile devices, users can also process activities from anywhere at any time.

Talents on Fabasoft PROCECO

The digital personnel file Fabasoft Talents is the Fabasoft PROCECO Solution for efficient and transparent personnel processes. Based on the audit-proof personnel file and digitized HR processes, the administrative effort is reduced by automating routine tasks and improving the interaction between employees and the HR department. In addition, integrated skills management ensures that employees' skills are recorded, validated and evaluated.

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

Xpublisher on Fabasoft PROCECO

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

The Ecosystem Fabasoft eGov

Fabasoft eGov is the Ecosystem for the digital transformation of public administration. Based on the Fabasoft eGov-Suite, it offers selected solutions that are perfectly coordinated and tailored to the needs of the public sector. The focus is on intelligent automation and online services that improve interaction with citizens and companies, accelerate processes and increase service quality.

Fabasoft eGov-Suite

The Fabasoft eGov-Suite is the leading product for electronic administrative work (e-government) in Germanspeaking 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 transactions can be processed barrier-free, regardless of location and time, including via mobile devices. In addition, specialist applications and online platforms can be easily connected via interfaces. Authorities at federal, state, cantonal and municipal level use the Fabasoft eGov-Suite to increase efficiency and transparency in their areas of activity and for rapid interaction with citizens, companies and other organizations.

Fabasoft Online Services offer a service platform for end-to-end digital interaction between citizens, businesses and public administration. Process data is transferred directly into the electronic file of the Fabasoft eGov-Suite via the application process. This enables complete digitalization from the creation and status information to the download of the final procedure result. The use of low-code/no-code enables administrative staff to add new forms easily and independently, without in-depth programming knowledge.

Contracts on Fabasoft eGov

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

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. Through automatic classification, the Fabasoft eGov Suite understands the context of incoming documents and processes them. This data is then used to fill in the required form fields with suitable suggestions and thus support users with everyday tasks. In addition, the intelligent and transparent automation of business processes shortens the processing time for inquiries and applications, thereby improving service quality.

Talents on Fabasoft eGov

Talents on Fabasoft eGov ensures efficient, digital personnel file management in public administration. The digital personnel file lays the foundation for transparent and secure personnel processes, reduces administrative effort through automation and improves communication between employees and the HR department. With end-to-end encryption, all sensitive data within a public authority is consistently secured with a customizable authorization concept. It is also easy to connect common e-government applications and standards to Fabasoft Talents. This enables seamless work and fast personnel processes.

Fabasoft Folio

The Fabasoft Folio business software contributes to the secure capture, organization and storage of digital documents and files as well as the simple digitization of business processes. The product is used for the efficient modeling and implementation of individual, document-centric specialist applications and workflows. The intuitive user interface allows users to access documents from anywhere at any time. Fabasoft Folio includes numerous interfaces via standard protocols and can therefore be quickly integrated into an existing IT landscape. The application also offers out-of-the-box integrations for common business applications such as SAP.

The Ecosystem Mindbreeze BDI

Mindbreeze BDI (Business Decision Insights) is an innovative business ecosystem for the professional implementation of business models and insight solutions for intelligent knowledge management.

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

Mindbreeze InSpire

The Mindbreeze InSpire insight engine analyzes information and creates a consolidated view of corporate knowledge – regardless of where data is stored and whether it is structured or unstructured. Employees receive search results and relevant facts in so-called 360-degree views. Company data sources are connected via an extensive range of connectors, for example for email or document management systems, archives or industry-specific specialist applications.

Mindbreeze InSpire combines numerous artificial intelligence methods to understand and link information. These include services in the areas of entity recognition, classification, semantic relation, proactive insight, knowledge extraction and natural language processing.

The understanding of information is made possible by Mindbreeze developments in the field of generative AI and Large Language Models (LLMs). Mindbreeze InSpire is the perfect product solution to overcome the typical hurdles in the use of LLMs such as data hallucinations, authorizations, critical intellectual property issues, expensive training costs or the handling of confidential company data in general.

Mindbreeze InSpire uses the internal company data, which has been connected to the Insight Engine with the multitude of connectors, as the basis for machine learning. The data and the models trained with it are therefore always owned by the respective company; they do not flow into a public model and are not passed on to third parties. Both existing and generated content is therefore secure, correct, trustworthy and, above all, traceable. As the solution references the source in addition to the answer, users are able to validate the answers at any time.

Mindbreeze leaves the selection of LLMs to its customers. The Insight Engine is delivered with pre-trained models. Due to the use of Transformer Models and open standards, however, models from communities such as Hugging Face can also be used very easily. If a customer already has a specific model in use, this can be integrated. Mindbreeze also offers customers qualified support in the selection of a suitable LLM and the associated use cases.

The Mindbreeze Insight App Designer allows users to design their own applications without any programming knowledge and is therefore aimed at employees in the respective department. In this way, the different needs of the specialist departments are quickly met by individual Insight apps and work steps are significantly simplified and shortened.

Mindbreeze InSpire is used in various areas of the company, such as customer service, maintenance and repair, project management and people and culture management. The Insight Apps available for this purpose are tailored to the requirements of the specific areas and therefore provide an important basis for supporting business process transformation, as Mindbreeze InSpire helps companies to manage data effectively. In day-to-day work, for example, insight apps serve as a research tool or for the creation of graphically prepared summaries.

Mindbreeze InSpire also provides interfaces and services so that software manufacturers, integrators and developers can easily use the proven Mindbreeze technology in their own products, projects and solutions.

Mindbreeze InSpire is characterized by short implementation times and can therefore be quickly and easily integrated into existing IT infrastructures. These features also make Mindbreeze an excellent choice for companies building their private or hybrid cloud infrastructures. In addition to the AWS and Microsoft Azure Marketplace, Mindbreeze InSpire is available worldwide via the Google Cloud Marketplace.

Mindbreeze InTend

Mindbreeze InTend supports sales teams in RFP and proposal management throughout the entire tendering process – from identification and pre-selection to compilation and response to tender documents. With Mindbreeze InSpire as the technological foundation, insightful answers to relevant business questions can be extracted from both structured and unstructured company data. With the help of generative artificial intelligence, Mindbreeze InTend creates customized answers to company queries and thus enables the automation of question catalogs. Mindbreeze InTend also enables the creation of structured libraries that store all knowledge about past tenders. This makes the creation of tender documents much more efficient and optimizes the entire tender management process.

REPORT ON THE FIRST THREE MONTHS OF THE 2024/2025 FISCAL YEAR

Business status

In the first quarter of the 2024/2025 fiscal year (1 April 2024 - 30 June 2024), the Fabasoft Group recorded sales revenues of kEUR 20,434 (Q1 2023/2024: kEUR 19,691). The increase in total revenues reflects the continued positive development of recurring revenues, which amounted to kEUR 11,658 (Q1 2023/2024: kEUR 10,495).

With ongoing investments in the development and expansion of the Ecosystem Fabasoft PROCECO as well as in the company's own software product technology, the cloud offerings based on it and in the field of digital transformation and AI, the Fabasoft Group generated EBITDA1) of kEUR 3,698 (kEUR 4,485 in the same period of the previous year) and EBIT1) of kEUR 1,709 (kEUR 2,600 in the same period of the previous year) in the first quarter of the 2024/2025 fiscal year.

The equity ratio1) of the Fabasoft Group on the interim balance sheet as at 30 June 2024 was 41.3 % (39.0 % as at 30 June 2023).

The balance of cash and cash equivalents changed in the period under review from kEUR 25,307 as at 30 June 2023 to kEUR 23,349 as at 30 June 2024.

The Fabasoft Group employed a workforce of 495 on the interim balance sheet date 30 June 2024 (466 employees on 30 June 2023).

1) Definition of the key figures: www.fabasoft.com under Investors, Business Reports, Alternative Performance Measures

Topics worthy of mention

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 Ecosystem Fabasoft eGov and 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 AI-based 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 Ecosystem Fabasoft eGov products and current use cases on site.

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 solutions in the Ecosytem Fabasoft eGov as well as the automation of administrative work using AI.

Outlook

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 for these products against an 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 demanded for software. The customer then often operates the software in its own data centers with the support of Fabasoft. However, Fabasoft is increasingly supporting its customers in the transformation of their IT infrastructure to become 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 Fabasoft Ecosystems for digital business processes

In line with the trend towards digital transformation, the focus remains on further developing and expanding the Fabasoft Ecosystems 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 artificial intelligence 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 artificial intelligence 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 based on the Fabasoft Ecosystems. 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 our 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 for the Fabasoft Ecosystems. This would involve considerable upfront investments, particularly in international marketing, supraregional 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.

Consolidated interim balance sheet as at 30 June 2024

Assets in kEUR	Note	30/06/2024	31/03/2024
Non-current assets
Property, plant and equipment	3.1./3.4.	23,763	23,928
Intangible assets	3.1.	6,676	6,857
Other financial assets	3.3.	145	145
Other non-financial assets		325	376
Deferred income tax assets		858	822
		31,767	32,128
Current assets
Trade and other receivables		16,877	16,532
Contract assets		3,207	2,516
Income tax receivables		306	84
Cash and cash equivalents		23,349	25,068
		43,739	44,200
Total assets		75,506	76,328

Equity and liabilities in kEUR	Note	30/06/2024	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	-2,016	-2,016
Other reserves		-740	-740
Adjustment item for currency conversion		282	223
Retained earnings		1,171	-22
		29,252	28,000
Non-controlling interest		1,949	2,638
		31,201	30,638
Non-current liabilities
Provisions for severance payments		3,089	3,043
Deferred income tax liabilities		841	908
Other payables	3.3./3.4.	5,833	6,149
Investment grants	3.4.	97	106
		9,860	10,206
Current liabilities
Trade and other payables		14,779	13,704
Liabilities for income taxes		1,541	1,795
Contract liabilities	3.4.	18,125	19,985
		34,445	35,484
Total equity and liabilities		75,506	76,328

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

in kEUR	Note	April – June 2024	April – June 2023
Sales revenue	5.	20,434	19,691
Other operating income		18	40
Expenses for purchased services		-1,189	-1,269
Employee benefits expenses		-11,774	-10,666
Depreciation and amortization expenses	5.	-1,989	-1,885
Other operating expenses		-3,791	-3,311
Operating result	5.	1,709	2,600
Finance income		27	3
Finance expenses		-89	-91
Result before income taxes		1,647	2,512
Income taxes		-457	-698
Result for the period		1,190	1,814
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion		73	121
Other result		73	121
Total result		1,263	1,935
Result for the period attributable to:
Equity holders of the Parent Company		1,193	1,662
Non-controlling interest		-3	152
Total result attributable to:
Equity holders of the Parent Company		1,252	1,760
Non-controlling interest		11	175
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)		0.11	0.15

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

in kEUR	Note	April – June 2024	April – June 2023
Cash flows from operating activities
Result before income taxes		1,647	2,512
Net finance expenses		62	88
Operating result		1,709	2,600
Adjustments in non-cash items
Depreciation and amortization expenses	5.	1,989	1,885
Effects from currency conversion		-11	-26
Changes in non-current provisions		46	49
Changes in other non-financial assets recognized in profit and loss		52	99
Loss from disposal of property, plant and equipment		17	205
Income from the dissolution of investment grants	3.4.	-10	-11
		3,792	4,801
Adjustments in net current assets
Changes in trade and other receivables (without income tax receivables)		-293	-781
Changes in contract assets		-689	-146
Changes in trade and other payables (without income tax and lease liabilities)		264	1
Changes in contract liabilities		-1,898	-1,825
		-2,616	-2,751
Cash generated from operations		1,176	2,050
Interest received		20	0
Interest paid		-84	-83
Income taxes paid		-1,037	-1,016
Net cash generated from operating activities		75	951
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	3.1.	-888	-2,058
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		-1,286	-1,970
Cash flows from financing activities
Redemption of lease liability		-554	-464
Payments from transactions with non-controlling interest		0	157
Net cash used in financing activities		-554	-307
Changes in cash and cash equivalents		-1,765	-1,326
Development in cash and cash equivalents
Cash and cash equivalents at beginning of period		25,068	26,563
Effect of exchange rates changes		46	70
Decrease		-1,765	-1,326
Cash and cash equivalents at end of period	4.	23,349	25,307

Consolidated statement of changes in equity for the first quarter 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			73
				0	0	59		59	14
Result of the period		0	0	0	0	0	1,193	1,193	-3	1,190
Total result		0	0	0	0	59	1,193	1,252	11	1,263
Dividend distribution		0	0	0	0	0	0	0	-700	-700

		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	98	0	98	23	121
Result for the period		0	0	0	0	0	1,662	1,662	152	1,814
Total result		0	0	0	0	98	1,662	1,760	175	1,935
Dividend distribution		0	0	0	0	0	0	0	-686	-686
Transactions with non-controlling interest		0	0	0	0	0	140	140	17	157
Balance at 30 June 2023	3.2.	11,000	19,555	0	-666	213	-4,133	25,969	2,216	28,185

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 30 JUNE 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 June 2024.

2) Accounting policies

2.1. Basis of preparation

The consolidated interim financial statements dated 30 June 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 standards and interpretations were adopted or amended by 30 June 2024 and are mandatory 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 (Amendments to IAS 1)	January 2024
IAS 1	Non-current liabilities with covenants (Amendments to IAS 1)	January 2024
IAS 7 und 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 June 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 June 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
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

The scope of consolidation has not been changed during the reported period.

2.2.3. Foreign currency translation

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

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

3.1. Investments

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

3.2. Equity

As at 30 June 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 shall be 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

A total of 98,218 own shares are held on the closing date 30 June 2024. The costs this entailed for the company amounting to kEUR 2,016 are disclosed in a separate adjustment item in equity.

No treasury shares were sold in the period under review.

3.3. Financial instruments

Balance sheet item in kEUR	Category to IFRS 9	Book value	Fair Value – Level I (through profit and loss)	Fair Value – Level III (through profit and loss)	Amortized costs
Trade and other receivables*	At fair value through profit and loss	7	0	7	0
Other financial assets	At fair value through profit and loss	145	145	0	0
Other payables*	At fair value through profit and loss	529	0	529	0
Trade and other payables*	At fair value through profit and loss	286	0	286	0

The financial instruments measured at fair value on 30 June 2024 break down as follows:

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

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

Balance sheet item in kEUR	Category to IFRS 9	Book value	Fair Value – Level I (through profit and loss)	Fair Value – Level III (through profit and loss)	Amortized costs
Trade and other receivables*	At fair value through profit and loss	7	0	7	0
Other financial assets	At fair value through profit and loss	145	145	0	0
Other payables*	At fair value through profit and loss	526	0	526	0
Trade and other payables*	At fair value through profit and loss	684	0	684	0

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

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 145 (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 617 as at 30 June 2024 (31/03/2024: kEUR 739), the remaining amount of kEUR 17,508 (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 6,767 as at 30 June 2024 (31/03/2024: kEUR 7,115), the leasing liabilities are reported at an amount of kEUR 5,304 as at 30 June 2024 (31/03/2024: kEUR 5,623) in non-current other payables and at an amount of kEUR 1,940 (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 97 (31/03/2024: kEUR 106) and to the amount of kEUR 10 (corresponding period of the previous year: kEUR 11) as other operating income due to the dissolution over the period of the useful life of the assets.

4) Consolidated cash flow statement

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

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

5) Segment reporting

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

April – June 2024 in kEUR	Austria	Germany	Switzerland	Other countries	Group
Gross sales	14,763	9,580	1,745	1,583	27,671
Less intersegmental sales	-6,853	-298	-54	-32	-7,237
Sales with external customers	7,910	9,282	1,691	1,551	20,434
Operating result	828	909	82	-110	1,709
Depreciation and amortization expenses	1,459	256	74	200	1,989

Reconciliation in kEUR

Operating result segments	1,709
Financial result Group	-62
Result before income taxes	1,647

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

Reconciliation in kEUR

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

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

Breakdown of sales by type of contract:

in kEUR	April – June 2024	April – June 2023
Recurring revenue	11,658	10,495
Non-recurring revenue	8,776	9,196
thereof software	425	244
thereof professional services	8,351	8,952
Total	20,434	19,691

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

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

6) Other statements

6.1. Details of affiliated persons and employees

6.1.1. Average number of employees

	April – June 2024	April – June 2023
Employees	495	464

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.in Univ.Doz.in DIin Dr.in 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 16, corresponding period of the previous year kEUR 16).

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

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

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. The impact of the armed conflicts and the associated sanctions against Russia and similar measures on the company's customers and partners, for example by impairing supply chains, the overall economic climate, public budgets, etc., and thus possibly subsequently on the company's business, cannot currently be estimated. The increased risk of cyber attacks or other attacks on critical infrastructures cannot be quantified either. 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

No significant events in respect of this interim financial statement occurred after 30 June 2024.

Linz, 7 August 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 June 2024. These condensed consolidated interim financial statements comprise the consolidated interim balance sheet as of 30 June 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 June 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.

Linz, 7 August 2024

Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.

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

Imprint

Publisher responsible for the contents:

Fabasoft AG, FN 98699x, Honauerstrasse 4, A-4020 Linz, Austria, Phone: +43 732 606162-0, e-mail: office@fabasoft.com, website: www.fabasoft.com. Copyright © Fabasoft, 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 | TEL.: +43 732 606162-0 | FAX: +43 732 606162-609