Fabasoft AG

Interim / Quarterly Report • Nov 7, 2025

Welcome to the Fabasphere.

A new paradigm. 6 Months Report 2025/2026

1 April – 30 September

Key data

in kEUR	April – Sep 2025	April – Sep 2024	Change
Sales revenue	43,641	42,534	2.6 %
Result before income taxes	6,939	6,521	6.4 %
EBIT (Operating result)1)	7,319	6,629	10.4 %
EBITDA1)	11,119	10,588	5.0 %
Result for the year	5,085	4,773	6.5 %
Equity at end of period	39,476	33,280	18.6 %
Cash flows from operating activities	832	4,853	-82.9 %
Cash and cash equivalents at end of period	29,325	23,986	22.3 %
Employees at end of period	497	495	0.4 %
Basic earnings per share (in EUR)	0.44	0.41	7.3 %

Our performance profile

• 08 Group structure
• 09 About the Fabasoft Group
• 09 The business model
• 10 The Fabasphere
• 19 Mindbreeze

Six-months management report

• 23 Report on the earnings, finances
• and assets situation
• 25 Report and forecasts as well as other information on expected developments
• 30 Report on opportunities and risks
• 37 Significant transactions with related
• companies and persons

Consolidated Interim Financial Statement

• 40 Consolidated Interim Balance Sheet
• 41 Consolidated Statement
• of Comprehensive Income
• 43 Consolidated Cash Flow Statement
• 44 Consolidated Statement of Changes in Equity
• 47 Notes to the Consolidated
• Interim Financial Statements
• 57 Report on the auditors' review

Further Information

• 61 Statement of all legal representatives
• 62 Imprint

Fabasoft's mission has always been to think digitally about business processes. 2025 marks the next chapter in this success story and opens up completely new perspectives. Because real transformation begins when you no longer think in fragments, but in contexts. And when an intelligent ecosystem reorganizes, connects, and expands document-intensive business processes in all directions. This paradigm shift has a name:

Fabasphere. Business with Higher Intelligence.

Our performance profile

Group structure

08

About the Fabasoft Group

09

The business model

09

The Fabasphere

10 – 18

Mindbreeze

19 – 20

The Fabasoft Group as at 30 September 2025

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
	Laxenburger Strasse 2	1100 Vienna, Austria
Fabasoft Research GmbH	Honauerstrasse 4	4020 Linz, Austria
Fabasoft Talents GmbH	Honauerstrasse 4	4020 Linz, Austria
	Laxenburger Strasse 2	1100 Vienna, Austria
Fabasphere GmbH	Honauerstrasse 4	4020 Linz, Austria
Hon24 Immobilien GmbH	Honauerstrasse 4	4020 Linz, Austria
Mindbreeze 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
	George-Stephenson-Strasse 15	10557 Berlin, Germany
	Bahnhofstrasse 38	99084 Erfurt, Germany
	Arnulfstrasse 31	80636 Munich, Germany
Fabasoft Xpublisher GmbH	Arnulfstrasse 31	80636 Munich, Germany
	Edlmairstrasse 1	94469 Deggendorf, Germany
Fabasoft Schweiz AG	Dammweg 9	3013 Bern, Switzerland
Mindbreeze Corporation	433 West Van Buren Street	Chicago, IL 60607, USA

Fabasoft Xpublisher Inc. 311 West Monroe Street Chicago, IL 60606, USA

Our performance profile

Visionary technology made in Europe

1. About the Fabasoft Group

As Austrian IT innovation leader and market leader in the field of electronic records management in the DACH region, Fabasoft sets standards for efficient and scalable processes in digital document and process management. The SaaS provider's technologies not only create solutions, but also define what excellence in digital transformation means. As a result, numerous well-known companies and public administration organizations have relied on Fabasoft's quality and experience for more than three decades.

In a digital ecosystem - the Fabasphere - Fabasoft offers networked software solutions for document-intensive business processes. The products digitize, simplify, and accelerate business processes - and sustainably increase their quality. All solutions are built on the technological basis of the Fabasphere AI Core, consisting of the Fabasoft Cloud and Mindbreeze AI.

Fabasoft also stands for digital sovereignty in its applications – with development, operation and data storage in data centers in the EU and Switzerland. The Group thus strengthens the European digital economy and reduces dependencies on non-European solutions.

Fabasoft sees itself as a partner to its customers, with ambitious collaboration on an equal footing that thrives on reliability, understanding, and transparency. The company's 497 employees (as of 30 September 2025) are passionate about enabling companies to realize their full potential and making them sustainably fit for the future.

Future-proofing is a top priority for the Fabasoft Group - which is why the company invests more than 30% of its turnover in research and development and continuously incorporates innovations into existing solutions.

The Fabasoft Group is represented by subsidiaries in Germany, Austria, and Switzerland as well as via Mindbreeze Corporation (wholly owned subsidiary of Mindbreeze GmbH) and Fabasoft Xpublisher Inc. (wholly owned subsidiary of Fabasoft Xpublisher GmbH) in the USA. The Group is also active in other countries through selected sales and implementation partners. Fabasoft AG, headquartered in Linz, Austria, acts as the Group administration within the Group.

Customer-friendly and flexible

2. The business model

The Fabasoft Group's business model is based on the development and distribution of its own software products and accompanying services. Fabasoft provides these software products primarily in the form of recurring usage fees.

Market access is achieved directly with own sales and service organizations as well as jointly with sales and implementation partners. Direct business is handled by the Group's own companies. These companies have their own project organizations and, if necessary, assume the role of general contractor for project implementation. In addition, the Group is striving to further develop and expand its sales and implementation partnerships.

3. The Fabasphere

Datacenter Cloud-native Infrastructure

(public/government/private/hyperscaler)

The Fabasphere is the new cloud-native home for documents and business processes. Based on the Fabasphere AI Core technology – consisting of the Fabasoft Cloud and Mindbreeze AI – the Fabasphere offers a connected ecosystem of solutions for a wide range of requirements. Smart workflows, AI-supported automation, and seamless integrations ensure clear structures and smooth collaboration. Instead of isolated solutions, users get intelligent knowledge management that adapts to the complex needs of leading companies and the people behind their success.

The aim of the Fabasphere is to make business processes more efficient, secure, and transparent. Its users gain access to a shared process and data environment that breaks down information silos, facilitates collaboration, and speeds up decision-making processes across departments and companies. Thanks to its cloud-native architecture, companies are always up to date with the latest technology and can respond quickly to new requirements.

Effortless efficiency

Complete process automation

AI-supported enterprise content management is the key to efficient business processes. With the solutions in the Fabasphere, companies and government institutions can classify, structure, and manage their documents seamlessly so that all content is available exactly where it is needed in the context of the respective business process. Routine tasks are intelligently automated using AI, while clear workflows ensure that all processing steps run seamlessly and on time. The solutions in the Fabasphere minimize errors, reduce costs, and, above all, give users one thing: time. Time to further develop their business, make important strategic decisions, and thus achieve sustainable growth.

Trust through control

Data security at the highest level

At the Fabasphere, sensitive customer data is given the highest priority – with security standards that go far beyond the norm. From software development to support services, we make every effort to ensure reliable data protection and information security standards for our customers. This is confirmed by regular BSI C5 and SOC 2 audits conducted by independent bodies as well as EU Cloud CoC Level 3 and ISO 27001/27018 certifications, which represent the highest requirements in these areas.

With European data storage and audit-proof architectures, the Fabasphere and its solutions comply with compliance requirements and ensure digital data sovereignty. Comprehensive protection mechanisms ensure maximum data security at all levels in the Fabasphere: data transmission and storage are always encrypted. End-to-end document encryption is available as an option. Robust access controls, role-based permissions in secure "team rooms" and configurable two-factor authentication ensure traceable, controllable security at the user level. This allows companies to maintain control at all times while providing a high level of user-friendliness for internal and external stakeholders.

Transparent & traceable

Single source of truth

The seamless interaction of all solutions in the Fabasphere creates the basis for a cross-company shared process and data world in which information is available in a networked form to internal and external parties. The entire lifecycle of every document is made fully traceable. To ensure maximum data quality and transparency, every processing step is logged and remains verifiable – regardless of whether changes are made to a document or in the team room. Even accidentally deleted data can be restored precisely when needed.

A boost for digital transformation

Innovative AI functionalities

The AI-powered solutions in the Fabasphere understand and analyze documents and information and proactively indicate where action is needed. To do this, Mindbreeze AI accesses only business-relevant data and minimizes misinformation (hallucinations). It extracts, interprets, and links existing knowledge to intelligently drive business processes – from contract review to decision support for management and C-level executives. This enables companies to not only optimize existing processes, but also transform their entire way of working – with maximum precision and fact-based decisions. As a result, strategies take effect more quickly, long-term competitiveness increases, and digitization becomes a driver of growth.

Workflows without obstacles

Consistent user experience

All solutions in the Fabasphere follow a consistent operating concept – for intuitive use and uniform workflows across all applications. The user interface is responsive and automatically adapts to any device, whether desktop, tablet, or smartphone. Barrier-free working is also fully possible: keyboard operation, WAI-ARIA support, and multilingual interfaces in up to 22 languages make the Fabasphere solutions accessible to everyone, regardless of technical knowledge or individual limitations.

3.1. The Fabasphere AI Core

At the heart of the Fabasphere is the Fabasphere AI Core – the technological foundation on which all digital business processes are built. It combines two of the most powerful components of the Fabasoft world: the secure, scalable, and highly available Fabasoft Cloud for document and process management and Mindbreeze AI for understanding information in the right context. Together, they form a strong foundation for digital transformation at the highest level. This combination makes the Fabasphere AI Core a unique starting point for companies that want to combine information sovereignty, efficiency, and inno-

vation – reliably, transparently, and "Made in Europe."

3.1.1. The Fabasoft Cloud

The Fabasoft Cloud enables companies to securely manage sensitive data, automate complex workflows, and seamlessly integrate into existing IT landscapes. And thanks to its scalability and adaptability, it lays the foundation for sustainable digitization at the highest level.

Documents and tasks available at any time

Enterprise content and enterprise records management

In the Fabasoft Cloud, information is structured, traceable, and permanently available – regardless of time, location, or device. As a powerful enterprise content management system (ECM) with integrated records management functions (ERM), it helps companies manage business-critical content in a legally compliant manner and establish end-to-end digital processes.

The entire lifecycle of a document – from receipt or creation to editing and approval to audit-proof archiving – is mapped seamlessly. The "time travel" function allows you to view previous versions at exactly the right moment, while audit trails log all changes and dynamic watermarks provide additional security. Tasks are also managed efficiently with personalized worklists, automatic notifications, and mobile availability.

From modeling to signature

Powerful business processes

With its business process management (BPM) functions, the Fabasoft Cloud helps companies map their business processes digitally, efficiently, and transparently from start to finish – from the initial model to the legally compliant signature. A graphical BPMN 2.0 editor makes it easy to design, optimize, and automate individual processes without any programming knowledge. Ad hoc processes offer the flexibility needed to respond to new requirements as they arise and to involve both internal and external participants in all process steps in a targeted and platform-independent manner.

Electronic signatures can be seamlessly integrated into existing workflows for binding decisions. In addition to simple signatures, the Fabasoft Cloud also supports qualified electronic signatures in accordance with the eIDAS Regulation – for EU-wide legally valid and media-break-free process completion. Behind the processes, a well-thought-out organizational structure ensures clear responsibilities and simple assignment of rights and roles. Members, teams, organizational units, and positions can be managed centrally and their authorizations controlled. This ensures that tasks and responsibilities remain clear at all times, even with complex requirements.

Tailored flexibility

Customization down to the last detail

The FabasoftCloud offers users a wide range of options for customizing their environment with low-code and no-code functionalities. Processes can be modeled and mapped based on requirements, categories control the behavior of objects, and user-defined forms capture exactly the data that is relevant for the respective organization. Reusable templates and structured text modules promote resource-efficient use of knowledge and enable the efficient creation of consistent documents, even for complex requirements.

Analysis and display options can also be customized: Insight Apps provide an aggregated view of information that can be adapted to specific roles and tasks. With customizable views and search patterns, users get exactly the information they need – quickly, accurately, and in the right context. The result is an environment that grows with users and fits seamlessly into existing processes and structures.

The cloud for different requirements

Flexible operating models

Thanks to its cloud-native architecture, the Fabasphere offers companies maximum flexibility in choosing the optimal operating model. Companies select the setup that best meets their security requirements, operational conditions, and regulatory requirements. There are four cloud operating models to choose from:

• Public Cloud Certified provision of the Fabasphere on Fabasoft's own hardware infrastructure in certified data centers in Germany, Austria, and Switzerland. Fabasoft operates the Fabasphere in the public cloud model. Test reports and certificates document the measures taken in the areas of information security and data protection.
• Government Cloud The operating model is reserved exclusively for government organizations. Provision is similar to the public cloud operating model.
• Private Cloud Fabasoft delivers the Fabasphere as a container. The customer is responsible for operation on their infrastructure and for the associated measures in the areas of information security and data protection.
• Hyperscaler Cloud The division of responsibilities is identical to the "Private Cloud" operating model.

Highly available and reliable

Public cloud operations at the highest level

The Fabasphere is provided in certified data centers in Germany, Austria, and Switzerland, with two redundant locations per site. The data centers meet the highest standards for security, fire protection, power supply, and climate control. The Fabasphere is operated exclusively by Fabasoft employees on Fabasoft's own hardware.

In combination with a cloud-native architecture and a sophisticated software design, this infrastructure enables high reliability and stable performance – even with heavily fluctuating workloads. A minimum availability of 99.9% per quarter is contractually guaranteed. At the same time, the average response time on the web server is less than one second – continuously monitored and transparently documented by Fabasoft app.telemetry. Various support models are available to Fabasphere customers. Fabasoft app.telemetry provides content support for the analysis of support requests.

Demanding certifications and audits attest to the technological excellence of Public Cloud Operations and make the Fabasphere the new benchmark in the European market.

Seamlessly connected

Integrations and interfaces

Whether ERP, CRM, or collaboration solutions, the Fabasphere integrates seamlessly into existing IT systems and enables consistent, media-breakfree processes. Thanks to certified SAP connectivity, business documents can be automatically archived, managed in an audit-proof manner, and integrated into existing workflows. Content can be created, edited, shared, or stored directly in Microsoft Office applications, including access to central text modules and cloud functions.

In addition, the standardized OData interface allows structured access to business data for transparent reports, automated evaluations, and informed decisions. In addition, open interfaces, such as those based on Web DAV, OpenAPI, or CMIS (Content Management Interoperability Services), ensure maximum flexibility when connecting external systems. CMIS enables manufacturer-independent management and access to documents and content in various content management systems.

Integration with calendar and contact services is also possible – for centralized information flows across system boundaries. This makes the Fabasphere a reliable hub in the digital ecosystem of companies.

3.1.2. Mindbreeze AI

The Fabasphere AI Core – and therefore every solution – includes Mindbreeze AI. The AI understands business-relevant information in context, intelligently links knowledge, and makes it immediately usable for informed decisions and automated processes. This turns documents and information into a real competitive advantage.

Automated intelligence for documents

Intelligent Document Processing (IDP)

With Intelligent Document Processing (IDP), Mindbreeze AI automates the entire information processing workflow, from extraction and classification to semantic interpretation. Using technologies such as semantic analysis and natural language processing, Mindbreeze AI recognizes relevant structures in documents and metadata, extracts them, and links them to existing objects.

IDP is used wherever large volumes of documents need to be processed in a time-critical, secure, and traceable manner – for example, in contract management, invoice verification, or digital inboxes. The information gained forms a reliable basis for downstream processes, promotes efficiency, and creates new insights based on existing knowledge.

Context-based automation

Process control with Agentic AI

The Fabasphere AI Core goes beyond traditional automation: with Mindbreeze AI's ability to make context-based decisions, document flows and business processes are increasingly controlled autonomously. Agentic AI means that processes and tasks are controlled or completed by AI based on current information and predefined goals. This reduces the workload for employees, speeds up processes, and creates space for strategic tasks. This is how automation becomes true process intelligence.

Dialogue with documents

Natural language as the key to corporate knowledge

Understanding user queries in natural language is one of Mindbreeze AI's strengths. To extract relevant facts and provide users with accurate answers, Mindbreeze AI uses Natural Language Question Answering (NLQA) and accesses business data, considering permissions.

In addition, Mindbreeze AI enables Retrieval Augmented Generation (RAG) using powerful Large Language Models (LLMs) to generate context-based answers based on secure company data. Unlike generic LLMs, which are based solely on static training knowledge, RAG always accesses indexed company data. Customer data is not used as training data for general LLMs (zero data retention) and also remains in the customer's own tenant. Customers can flexibly choose their own language models and integrate them as needed.

Whether it's automatically answering complex technical questions or comparing regulatory requirements with internal company documents, the result is an insightful dialogue with files, team rooms, and documents that yields insights far beyond the original question.

Know what matters when

Proactive information management

Mindbreeze AI helps users stay informed based on their interests. Instead of constantly searching for information, Mindbreeze provides them with relevant context early on and derives recommendations from it – for example, in the event of delivery bottlenecks, missed deadlines, or process deviations. To do this, Mindbreeze AI analyzes all available data sources in context and provides a 360° view of business processes, contracts, projects, and participants. This eliminates the need to search for crucial information – instead, relevant content finds its way to the right person at the right time. This increases response times and improves decision-making quality.

3.2. The solutions in the Fabasphere

Fabasoft 6 Months Report 2025/2026

The Fabasphere brings together carefully curated solutions for different industries and use cases. They help customers make informed, AI-driven decisions based on secure information and transform their company's knowledge and information management for the future.

Fabasoft Approve

FabasoftApprove, the AI-supported document and quality management solution, improves project quality in manufacturing and ensures efficient and transparent processing. Companies in the special-purpose machinery, plant, and infrastructure construction sectors benefit from a shared database for exchanging technical documentation, contract-related communication with suppliers and customers, and the necessary testing, approval, and quality processes.

The comprehensive functions for document, quality, and process management offer high user-friendliness and enable the rapid implementation of customer-specific requirements. The Interactive Exploded View adds additional information to documents for effortless navigation in technical databases. The AI chat with documents also answers content-related questions in natural language. By analyzing past projects, Mindbreeze AI provides context-specific answers at every step of the 8D process that can be integrated directly. Digital workflows accelerate collaboration with internal and external stakeholders along the entire value chain.

Fabasoft Boards

Fabasoft Boards meeting management helps companies organize, run, and follow up on meetings efficiently. The solution makes sure they meet strict compliance requirements for highly confidential board and management meetings, like in the financial sector. In addition to easy scheduling, digital invitations and agenda items that can be updated and expanded at any time make preparation a breeze. AI-generated summaries and translations provide essential information quickly, even for multilingual committees. The integrated timer ensures reliable time management. Decisions and follow-up tasks are documented in an audit-proof protocol and transmitted to participants via media-breakfree workflows.

Fabasoft Contracts

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

New agreements can be quickly generated using an existing clause library and reviewed or approved across organizations via digital workflows. The integration of an advanced and qualified electronic signature in accordance with the eIDAS Regulation ensures media-break-free approval processes.

The cloud-based software also offers other helpful features for processing, managing, and controlling the contract portfolio, including intelligent clause analysis, semantic full-text search, easy creation of summaries, and an integrated chat function for questions about content.

Fabasoft Dora

Fabasoft Dora outsourcing management supports companies in the financial sector in implementing the EU's Digital Operational Resilience Act (DORA) in compliance with the law. The solution demonstrably ensures the management of IT services throughout the entire outsourcing cycle, including all reporting requirements.

The AI-supported solution minimizes resource usage and the risk and error potential for those responsible for outsourcing, compliance, and data protection in financial companies – such as banks, insurance companies, rating agencies, and pension funds – through the end-to-end, intelligent digitization of outsourcing management. The AI-based contract portfolio analysis allows existing agreements to be checked for compliance with the provisions of the Digital Operational Resilience Act. An integrated clause library enables new contracts and supplementary agreements to be created quickly. In addition, the software automatically generates the necessary audit reports, such as the information register, in the defined format. Digital workflows also ensure audit-proof compliance with legal requirements.

Fabasoft Talents

The Fabasoft solution for digital personnel files, Fabasoft Talents, enables the audit-proof and transparent digitization of HR processes across the entire personnel lifecycle. HR managers benefit from legally compliant document storage, quick document retrieval using intelligent search functions, and improved interaction with employees. Routine tasks, such as the timely disposal of documents in accordance with the GDPR, are automated, and practical self-service functions reduce the administrative workload in the HR department. Digital workflows speed up the exchange of documents and the submission of applications. Integrated skills management facilitates the recording, validation, and evaluation of employee competencies.

Fabasoft Xpublisher

The cloud-native editing and publishing system Fabasoft Xpublisher supports the book and publishing industry as well as public research institutions, institutes, and associations. With its consistent "content first" approach, it optimizes the entire content lifecycle: from planning and creating structured, media-neutral content to managing editorial coordination processes, automated print production, and efficient distribution across all digital channels – collaboratively in a single source of truth and in compliance with the highest European data protection standards.

Mindbreeze AI frees up time for creative tasks and ensures consistently high editorial quality. Teasers, translations, and texts tailored to specific tones can be created automatically, and recurring routine tasks can be handled efficiently. Automated tagging improves the findability and reusability of content and increases productivity throughout the entire editorial and publication process.

With the continuous integration of intelligent functions and the consistent automation of processes, Fabasoft eGov-Suite continues to position itself as the central and forward-looking product for modern administrative work at all levels.

Fabasoft OneGov

Fabasoft OneGov, a digital business management solution, supports Swiss authorities at the federal, cantonal, and municipal levels, as well as administration-related institutions, in the AI-supported, legally compliant creation, processing, and management of dossiers. Users benefit from the intuitive design and intelligent automation of business processes. With powerful low-code/no-code functions, they can quickly implement new requirements – without any programming knowledge. AI-supported chat with documents accelerates the understanding of extensive, case-specific information and provides traceable answers with source references.

Fabasoft eGov-Suite

Fabasoft eGov-Suite is the leading product for digital administration in German-speaking countries, setting new standards with Artifical Intelligence.

With the help of Mindbreeze AI, FabasofteGov-Suite transforms electronic documents into "intelligent files" by enabling a deep understanding of the content and how it is connected. Users benefit from precise answers to questions in natural language and the automatic generation of summaries, among other things. The product also automates the classification of documents, the extraction of relevant information, and its assignment to the corresponding business cases. Predefined templates initiate processes directly and enable comprehensive process automation while maintaining the traceability of each individual step.

Fabasoft eGov-Suite supports citizen-centric online services with intuitive low-code/no-code functions that allow specific processes to be flexibly adapted without programming knowledge. Citizens and businesses can easily submit applications via the service platform, with the relevant data flowing directly into the electronic file, creating seamless digital workflows from application to final result.

4. Mindbreeze

Mindbreeze is redefining how organizations engage with and interact with information with Mindbreeze InSpire. Using Artificial Intelligence, Mindbreeze transforms complex data into actionable insights for businesses. Mindbreeze analyzes, extracts, and interprets business-relevant facts and seamlessly connects them across different enterprise data sources for users. Insight Apps provide a perfect contextual visual representation of the results.

Insight Engine

Mindbreeze InSpire

Mindbreeze InSpire is an AI-based, powerful insight engine that analyzes structured and unstructured information from various enterprise data sources, consolidates it, and prepares it according to user access rights. Mindbreeze InSpire is designed as an add-on product and can therefore be easily integrated into existing IT infrastructures, regardless of whether these are on-premises installations, SaaS environments, or marketplaces such as Amazon Web Services, Microsoft Azure, Google Cloud, or Oracle Cloud. The connection to company data sources is established via connectors ranging from email and document management systems to industry-specific applications and archives. Mindbreeze InSpire forms the technological basis for specific application-centric solutions such as Mindbreeze InTend (proposal management) and Insight Workplace as the starting point for every interaction with company data.

In addition, Mindbreeze InSpire integrates seamlessly into work environments such as Microsoft Outlook, Microsoft SharePoint, and Salesforce. This means that employees can access relevant information more quickly and conveniently, as they do not have to switch work environments.

Understanding data – using knowledge Insight Services

Insight Services form the basis for AI-based information delivery in the areas of enterprise search, knowledge management, and generative Artificial Intelligence (GenAI). To this end, Mindbreeze combines various Artificial Intelligence methods such as fact extraction, classification (text, image), natural language question answering (NLQA), and large language models (LLMs). To minimize hallucinations when generating answers, Mindbreeze uses Retrieval Augmented Generation (RAG).

Mindbreeze provides interfaces and services for software manufacturers, integrators, and developers so that they can easily integrate the proven Mindbreeze technology into their own products and projects.

Knowledge that works with you

Insight Workplace

The Insight Workplace, as the central point of entry for interacting with company data, offers users a new way of accessing and preparing data. Mindbreeze InSpire understands questions asked in natural language and immediately provides a context-sensitive and clearly structured answer. The AI agent selects the optimal visual representation (Insight App) in the background. These can be lists, graphics, diagrams, with or without a chat window, which are automatically generated by the Insight App Designer. The entire generation and thought process is presented transparently and comprehensibly in a "chain of thought." References to the data sources from which the content originates serve to verify the results. Any further interaction with the results takes place easily in the Insight Workplace, such as chatting with documents or with any selected content, as well as creating summaries or suggested answers. Only the content of the selected information is used for generation, taking access rights into account. Depending on the use case, additional questions or tasks are asked or the answers are narrowed down and displayed in a more focused manner using detailed inputs and filters.

Knowledge paths for everyday business

Insight Touchpoints and Insight Journeys

To maintain clarity in Insight Workplace, queries are presented in a structured format in Insight Touchpoints and Insight Journeys. Each question is saved in Insight Workplace as an Insight Touchpoint. These can be updated and accessed at any time. Insight Journeys cluster multiple touchpoints into a single topic. A journey for the HR department, for example, contains all questions relating to the onboarding process for new employees. Without any further action, new employees always receive the latest information, as the journey is immediately updated when it is called up again.

Six-months management report of Fabasoft Group

Report on the earnings, finances and assets situation

23 – 24

Report and forecasts as well as other information on expected developments

25 – 30

Report on opportunities and risks 30 – 37

Significant transactions with related companies and persons 37

Six-months management report of Fabasoft Group as at 30 September 2025

1. Report on the earnings, finances and assets situation

1.1. Business status in the first six months of the 2025/2026 fiscal year

In the first six months of the 2025/2026 fiscal year, the Fabasoft Group recorded sales revenue of kEUR 43,641 (kEUR 42,534 in the corresponding period of the previous year). The increase in revenue reflects the continued positive development of recurring revenue in the first six months of the 2025/2026 fiscal year.

Despite ongoing investments in the development and expansion of the Fabasphere and higher personnel expenses, the Group achieved EBITDA1) of kEUR 11,119 (kEUR 10,588 in the corresponding period of the previous year) and EBIT1) of kEUR 7,319 (kEUR 6,629 in the corresponding period of the previous year) in the first six months of the 2025/2026 fiscal year.

Other operating expenses increased by 1.1% from kEUR 6,637 to kEUR 6,713 in the reporting period, developing at a lower rate than the sales revenue of Fabasoft Group.

The equity ratio1) of the Fabasoft Group on the interim balance sheet date (30 September 2025) was 41.3% (44.2% on 30 September 2024).

The amount of cash and cash equivalents in the Fabasoft Group increased from kEUR 23,986 (as at 30 September 2024) to kEUR 29,325 as at the interim balance sheet date 30 September 2025.

The Fabasoft Group employed a workforce of 497 on the interim balance sheet date 30 September 2025 (495 employees on 30 September 2024).

1.2. Second quarter of the 2025/2026 fiscal year (1 July 2025 – 30 September 2025)

In the second quarter of the 2025/2026 fiscal year the sales revenue of the Fabasoft Group amounted to kEUR 22,445 (kEUR 22,101 in the corresponding period of the previous year).

With EBITDA1) at kEUR 6,815 (kEUR 6,890 in the corresponding period of the previous year) EBIT1) was kEUR 4,909 (kEUR 4,920 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 Perfomance 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. Fabasoft calculates the following APM:

• Nominal change in sales revenue
• EBIT or operating result
• EBITDA
• Equity ratio
• Research & development ratio (is published in each case with 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.

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

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 Amortization. In addition to interest and taxes, this indicator of success also neutralizes 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 amortization 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

Equity ratio

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

Equity x 100 Total capital

Research & development ratio

Indicator that sets expenses for research and development in relation to the revenue.

Expenses for research and development x 100 Revenue

2. Report and forecasts as well as other information on expected developments

2.1. Topics worthy of mention in the first half of the 2025/2026 fiscal year

FANUC uses Mindbreeze for proactive knowledge management

FANUC Europe Corporation relies on Mindbreeze InSpire for intelligent information provision to customers, partners, and employees. By integrating the AI-based knowledge management solution into the FANUC service portal, users enjoy a new experience when searching for information.

FANUC Europe Corporation is the European subsidiary of the Japanese FANUC Corporation, one of the world market leaders in factory automation. FANUC Europe Corporation employs a total of around 1,800 people at various locations in Europe, including around 300 at its headquarters in Echternach.

Mindbreeze InSpire remains available via GSA Multiple Award Schedule

The existing framework agreement between the General Services Administration (GSA), based in Washington, D.C., and Mindbreeze Corporation has been extended for another five years. GSA Schedules are important procurement platforms for public administration in the US. They enable public sector organizations to order Mindbreeze products and services via this platform without a tender process. There is no obligation to purchase services.

Multimodal large language models available for Mindbreeze InSpire

Multimodal large language models such as Google Gemma are now available to Mindbreeze In-Spire users for processing and analyzing information. These models enable the processing of different data formats such as text, audio, and video files. This opens up new, automated use cases. For example, audio and video files can be automatically transcribed and summarized, giving users a quick overview of the relevant content. For Mindbreeze customers, this means expanded, user-friendly access to additional sources of information as a basis for informed decisions.

Fabasoft Contracts introduces new AI features for efficient contract management

With AI-supported checklists, contracts can be checked for a wide range of aspects, such as defined knockout criteria, checklists, or specific clauses. This feature provides valuable support in conserving resources and reducing risks, especially in the event of regulatory changes such as those brought about by the Supply Chain Act, the GDPR, or DORA. In addition, the new chat function enables information to be retrieved quickly and summaries to be generated from the contract content.

Fabasoft Boards: Contract awarded by the city of Biel

On 30 April 2025, Fabasoft 4teamwork AG1) was awarded a contract by the city of Biel – the largest bilingual city in Switzerland – to implement the Fabasoft Boards meeting management software. According to the tender, the city was looking for a SaaS application to manage the political parliamentary meetings of the city council. In total, more than 60 political decision-makers in the city will submit motions and vote digitally on the next decisions and projects for the city.

"GEVER – Quo vadis?" in Zurich

On 7 May 2025, Pascal Habegger, CEO of Fabasoft 4teamwork AG1) , took part in the panel discussion "GEVER – Quo vadis?" in Zurich, organized by Kompetenzzentrum Records Management AG. Representatives from various GEVER solution providers were also present. The discussion focused on the federal government's new GEVER strategy. The federal government is aiming to create a decentralized system that ensures documents are stored correctly across different locations. This should reduce the workload for employees, allowing them to focus more on their specialist tasks instead of dealing with organizational filing issues.

Fabasoft Approve at Control 2025

Fabasoft Approve was once again represented at Control, the international trade fair for quality assurance in Stuttgart, from 6-9 May 2025. This year, the event attracted more than 20,000 visitors from 70 countries and provided the perfect setting to present the AI-supported document and quality

¹⁾ As of 1 September 2025, Fabasoft 4teamwork AG was renamed Fabasoft Schweiz AG

management software to an international audience of experts. A particular highlight was the presentation by Managing Director Andreas Dangl, who illustrated the use of AI in quality management with concrete practical examples.

Quality Days digital – Software for quality assurance

As part of Quality Days on 13 May 2025, leading experts presented how smart technologies are shaping the future of quality management. In his presentation "Complaint management with AI: Automated control of quality documents", Andreas Dangl, Managing Director of FabasoftApprove GmbH, illustrated how AI creates real added value in complaint management.

SV-Informatik responds quickly to regulatory requirements with Fabasoft

Thanks to the combination of Fabasoft Contracts and Fabasoft Dora, SV-Informatik saves 310 days of work annually across the entire contract lifecycle. With smart digitization and AI-supported analyses, the subsidiary of SV SparkassenVersicherung quickly and securely implements regulatory requirements (DSA, NIS2, Solvency II, DORA, and many more) quickly and securely. With more than 100 specially created contract templates and text modules, automated reports, and digital workflows, manual administrative work is eliminated. This ensures compliance at all times and gives users more time for their core tasks.

Fabasoft Approve at the European FMEA Congress

The European FMEA Congress on 21 and 22 May 2025, is an important meeting place for FMEA managers and offers practical presentations from research and industry. FabasoftApprove was represented with a booth and presented its AI-supported document and quality management software with integrated FMEA module.

Fabasoft Xpublisher at the B2B Media Days of the German Trade Press

Fabasoft Xpublisher took part in the annual congress of the German Trade Press, the B2B Media Days, in Berlin on 22 May 2025. Matthias Kraus, founder and head of sales, contributed to the conference program with his presentation "Content First Instead of Copy and Paste: Efficient Publishing Processes Throughout the Entire Content Lifecycle." He presented triedand-tested approaches for the cost-effective implementation of structured content and AI-supported workflows in specialist publishing. The event was characterized by in-depth expert insights and a stimulating exchange with decision-makers from the media industry.

ADV Conference

The ADV e-Government Conference 2025 took place in Vienna from 3-4 June 2025. The Fabasoft eGov team demonstrated how digital administration can simplify processes for citizens and organizations. The focus was on the use of artificial intelligence and the end-to-end digitization of administrative procedures, which make administrative processes significantly more efficient.

Wachau Europe Forum

The Fabasoft eGov team was represented for the first time at the Wachau Europe Forum at Göttweig Abbey and on the Krems campus. From 11-13 June 2025, leading representatives from politics, business, and society met to discuss the future of Europe. At the own booth, the Fabasoft eGov team provided information about Fabasphere and Fabasoft eGov-Suite the leading product for smart, digital administration.

Fabasoft Xpublisher at the MVFP Media Forum and the Free Press Media Night

This year's MVFP Media Forum for the Free Press and the subsequent MVFP Free Press Media Night on 25 June 2025, were held under the motto "Responsibility, Reliability, and Change." As a strategic partner of the MVFP and sponsor of the event, Fabasoft Xpublisher was on site at the Allianz Forum in Berlin together with around 300 participants. The event brought together leading representatives from publishing houses, politics, and media companies and provided a platform for the exchange of ideas on media policy issues and industry trends.

New managing director at Fabasoft Xpublisher

Raphael Baier has been the new managing director of Fabasoft Xpublisher GmbH since 1 July 2025. The renowned industry expert brings with him over 20 years of experience at the crossroads of IT, media, and corporate management. The founders and previous managing directors Matthias Kraus and Thomas Werzmirzowsky remain shareholders of Fabasoft Xpublisher GmbH. Matthias Kraus will focus on new customer business in the future, while Thomas Werzmirzowsky will focus on supporting existing customers and partners.

E-Gov Days Berlin and Brandenburg

"Innovative solutions for administration and industry" was the motto of the E-Gov Days Berlin and Brandenburg organized by "Advantage Austria" on 1 and 2 July 2025, at the Austrian Embassy in Berlin. Fabasoft board member Matthias Wodniok gave insights into Fabasphere in a presentation and explained how AI turns electronic records into intelligent records. In the subsequent panel discussion, he discussed "debureaucratization through digitization" with experts from the e-government sector.

New Fabasoft office in Munich

Fabasoft employees in Munich moved into new offices on 1 August 2025. The new location is centrally located and promotes communication and creativity among teams thanks to its modern facilities and open design. The move sends a clear signal of further growth and the long-term strengthening of the company's market position.

Hessen Digital

On 21 August 2025, the Fabasoft eGov team was once again present at the HessenDIGITAL congress at the Maritim Hotel in Bad Homburg to provide information on how administrative work can be carried out digitally, AI-supported, and in a legally compliant manner today. The event provided an opportunity for reflection and outlook: Where does Hesse stand today? What steps will follow until 2030? Topics such as artificial intelligence, sovereign data access, and smart regions dominated the discussions, keynotes, and expert forums.

eGov Suite Community Day in Bern

On 27 August 2025, Fabasoft 4teamwork AG1) held its eGov-Suite Community Day in Bern. The Community Day offered customers and partners the

1) As of 1 September 2025, Fabasoft 4teamwork AG was renamed Fabasoft Schweiz AG.

opportunity to exchange ideas directly with experts and gain practical insights into the further development of the Fabasoft eGov-Suite.

Nordl@nder Digital

Under the motto "Together Digital – Shaping Saxony-Anhalt!", the Nordl@nder Congress in Magdeburg on 11 September 2025, focused on the opportunities offered by digitization. Fabasoft was there for the first time and presented the latest developments relating to Fabasphere, Fabasoft eGov-Suite, and the intelligent record, which ensures efficient, transparent, and legally compliant administrative processes.

LSZ Conference

On 11 September 2025, the LSZ Industry Conference for Public Authorities once again brought together IT and digitization managers from Austria's public sector in Vienna. In its presentation entitled "The Intelligent Record – Taking Administration to the Next Level", Fabasoft demonstrated how AI facilitates case processing, shortens processing times, and at the same time ensures greater citizen-friendliness.

Mindbreeze partners with EBHAR for AI-based Enterprise Intelligence

Mindbreeze partners with EBHAR, a leading consulting firm in data and analytics, to optimize the progress of AI innovation in the Kingdom of Saudi Arabia. With a strong focus on enabling data-driven innovation, EBHAR helps organizations unlock value and insights through advanced AI models, machine learning frameworks, and scalable data governance solutions.

This new partnership will combine EBHAR's regional expertise and implementation capabilities with Mindbreeze's intelligent search and insight engine, creating a powerful synergy that empowers organizations to surface and act on critical information faster. Together, the two companies will deliver cutting-edge AI solutions that enhance decision-making, streamline operations, and accelerate innovation across industries.

Fabasoft Approve at the VDMA conference on complaint management

On 23 September 2025, more than 100 specialists from the mechanical and plant engineering sector gathered at the VDMA conference on complaint management in Oberursel to discuss current trends and future challenges in quality management. Andreas Dangl, Managing Director of FabasoftApprove GmbH, showed in his presentation how AI-supported recommendations contribute to greater efficiency in the 8D process.

Fabasoft Contracts receives "Champion" award in contract management

Fabasoft Contracts once again achieved a top ranking as Champion in contract management in the "Professional User Rating: Digital Solutions 2026". The independent user survey was conducted by the research and analyst firm techconsult, a company of the heise group. The rating included customer satisfaction, range of functions, service, and innovation in contract management. According to users, Fabasoft Contracts creates a company-wide digital innovation culture and is perceived as an outstanding solution.

2.2. Products, research and development

Within the Fabasoft Group, dedicated product teams are responsible for product-related research and software development. The development activities of these teams follow the agile method framework "Scrum" with the aim of creating innovation and added value in accordance with the principles of "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. Furthermore, research topics in the context of digitalization are dealt with in international collaborations.

2.2.1. The Fabasphere

The Fabasphere AI Core

During the reporting period, new accessibility features were added to Fabasphere AI Core and existing features were refined. Furthermore, the connection to external systems (e.g. Outlook) was improved and the handling of metadata for image and 3D files was expanded. User-friendliness was optimized in the area of the signature process.

In the Fabasphere AI Core, the basis for the structured use of AI use cases was expanded. This includes enhancements in the areas of configuration, administration, and control options for indexing, as well as better insight into the current status of semantic indexing.

The user interface has been given a new design. As part of the Fabasphere rebranding, colors, icons, and many graphical elements of the user interface (e.g. widgets, dialogs, input fields, buttons, menus) have been updated.

The Fabasoft Solutions

Fabasoft Approve

Fabasoft Approve focused on AI-supported enhancements in quality management. The 8D process has been further optimized and now offers AI-based suggestions that significantly simplify processing. Chat functions and AI-generated recommendations on malfunctions, causes, and consequences provide support in FMEA. Audit management also benefits from new AI functionalities that make processes noticeably more efficient.

Fabasoft Boards

During the reporting period, Fabasoft Boards focused on further developing and optimizing logging in Microsoft Word. In addition, the range of functions offered by Fabasoft Boards was significantly expanded. Particular highlights include the redesign of the agenda view in tile design and the optimization of motion generation.

Fabasoft Contracts

During the reporting period, Fabasoft Contracts continued to focus on implementing new AI features. Among other things, the team researched the automated review of contracts based on a wide range of aspects such as knockout criteria or specific clauses. Customers can create individual review catalogs or use ready-made catalogs for specific use cases, such as reviewing non-disclosure agreements. In addition, the new AI chat function enables quick answers to questions about document content.

Fabasoft Dora

At Fabasoft Dora, research and development focused on further developing third-party risk management and validations for the automated information register, which financial companies must report annually on all outsourced ICT services in accordance with the EU DORA regulation. In addition, AI checklists were designed to assist in checking contracts for compliance with DORA regulations.

Fabasoft OneGov

The further development of Fabasoft OneGov focused on optimizing AI-supported use cases such as chatting with dossiers and automatically summarizing documents. It is now possible to generate a request for meeting management directly from a dossier. All documents from a completed meeting can also be transferred back to Fabasoft OneGov as a dossier. With regard to the new generation of Fabasoft OneGov, additional functions for the generation shift have been implemented.

Fabasoft Talents

At Fabasoft Talents, the focus during the reporting period was on further developing the personnel record, particularly the design of the user interface. Technical and content development was driven forward on the basis of a revised design concept.

Fabasoft Xpublisher

At Fabasoft Xpublisher, research and development during the reporting period focused on expanding AI based application possibilities. In addition to the automatic creation of text summaries, the function for pre-translating journal articles and extensive book manuscripts into different languages was further developed. A significant part of the development work also focused on expanding the integrated editor for structured XML documents. In addition, the research and development department was reorganized. The formation of independent product teams creates optimal conditions for steering innovation processes in a more targeted manner and driving new developments forward even more efficiently.

Fabasoft eGov-Suite

In the first half of the 2025/2026 fiscal year, the Fabasoft eGov-Suite development team focused increasingly on the implementation of government clouds as part of Fabasphere. The resulting potential, such as the use of Mindbreeze AI use cases from Fabasphere AI Core and the possibility of participating with other solutions in the Fabasphere, was taken up for Fabasoft eGov-Suite. To achieve this, the Fabasoft eGov-Suite modules were modified so that they could be loaded into the solution repository as part of the cloud-native infrastructure.

In addition, the low-code/no-code capabilities of Fabasoft eGov-Suite were further expanded. It is now possible to make full use of Fabasphere's basic "User Forms" feature in Teamroom. In addition, the ability to implement use cases based on pre-built building blocks and make them available on business objects was created.

The Fabasoft eGov-Suite's range of functions has also been expanded based on customer requirements and legal requirements.

2.2.2. Mindbreeze

At Mindbreeze, the focus of research and development in the first half of fiscal year 2025/2026 was on providing Agentic AI use cases in the Insight Workplace.

The Insight Workplace offers users a new way of providing and preparing data. Mindbreeze InSpire understands questions posed in natural language and independently selects the appropriate visual representation based on the content (Insight App). These can be lists, graphics, diagrams, with or without chat windows, which the Insight App Designer generates automatically. The entire generation and "thinking process" is presented transparently and comprehensibly in a "chain of thought". Links to the data sources from which the content originates are used to verify the results. Users interact with the information, select information, chat with it, or have summaries created. Only the content from the selected information is considered for generation. Depending on requirements, further questions or tasks are asked, or the answers are narrowed down using inputs and filters. During the reporting period, the development team focused on providing agentic AI use cases through the use of multimodal large language models in Mindbreeze In-Spire. This enables information to be extracted from images or videos, for example, and the appropriate process for the content to be initiated. Mindbreeze In-Spire independently decides which process or tool is suitable for execution.

The integration options (Seamless Workplace Integration) of Mindbreeze InSpire in workplace environments and business processes have also been expanded with the Mindbreeze InSpire app in the Microsoft Teams App Store. This allows users to work comfortably in the familiar Microsoft Teams environment in combination with all the functionalities of Mindbreeze InSpire. Existing workflows can thus be easily triggered from the Mindbreeze InSpire app in the Teams environment.

During the reporting period, developers focused further on providing AI-based neural reranking. This involves checking the relevance of responses (semantic match) even more intensively and obtaining more potential response options than originally requested by Mindbreeze, reevaluating them, and only then displaying them to the user. As a result, Mindbreeze customers not only receive high-quality content in the LLM context, but also benefit from significantly reduced token consumption and faster generation of high-quality responses.

In addition, further development of the "Model Context Protocol" (MCP) focus area was advanced. This open standard enables the efficient integration of external tools into LLM-based systems and thus forms the basis for scalable, open, and reusable Agentic AI use cases in the Insight Workplace.

2.3. Outlook

Like the entire software industry, the Fabasoft Group's software product business continues to undergo a transformation process characterized by technological developments, regulatory requirements, and changing customer needs.

Artificial Intelligence

After a phase of high expectations and public attention, the focus in the field of AI is increasingly shifting to concrete, economically viable applications. At Fabasoft, the sustainable benefits for customers, i.e., improving efficiency, quality, and access to information are at the forefront. The close technological cooperation with Mindbreeze forms a powerful basis for this. The AI functionalities are designed to meet the high requirements for security, transparency, and data sovereignty. Data does not leave the customer-specific environment, and existing rights and access concepts are maintained. In addition, sources are traceably identified – a key aspect for explainability, especially when using generative methods for text creation or content summarization. The areas of application are diverse and range from process automation and intelligent information processing to specific document use cases.

The greatest challenge in an algorithm-driven society and economy will be to underpin AI ethically – with the focus on people – and to make its decision-making processes explainable.

Cloud-native architecture

A central element of technological transformation is a consistent focus on cloud-native architecture. This is based on modular, container-based components and enables software solutions to be delivered in a flexible, scalable, and future-proof manner. Cloud-native also forms the basis for efficient further development, shorter innovation cycles, and better adaptability to different operating environments. While the private sector is increasingly relying on Fabasoft for its entire operations, the public sector continues to run many applications in its own data centers. Here, Fabasoft provides targeted support for the transformation to modern cloud-native operating models within the framework of customer-specific infrastructure.

Flexible operating models

The public sector and regulated industries in particular have high requirements for data protection, security, and digital sovereignty. Fabasoft meets these requirements by providing flexible operating models: customers can choose between public cloud, government cloud, private cloud, or operation via a hyperscaler of their choice. These options increase acceptance and allow individual security and compliance requirements to be met while supporting national cloud strategies and multi-cloud approaches. Such strategies are becoming increasingly important in the public sector in particular in order to reduce dependencies and strengthen sovereignty.

Software as a Service (SaaS)

The market is increasingly moving toward flexible, scalable, and service-oriented use. Customers expect modern software solutions that are available without high implementation costs and can be adapted dynamically. Fabasoft is responding to this change with a clear focus on cloud-native products that are based on a SaaS model and meet the long-term requirements of businesses and public authorities. At the same time, the company remains in a position to offer traditional purchase and license models in response to tenders – particularly in public administration, where the acquisition of perpetual usage rights is still required in some cases.

Investments in growth measures

In order to consistently continue on its growth course, the Fabasoft Group is setting clear investment priorities for the fiscal year 2025/2026: the focus will be on product innovations, the targeted expansion of expertise in the field of AI – including the development of corresponding capacities in the data centers – the strengthening of sales and marketing, and the acquisition of new talent to actively shape future opportunities. In addition, the company's organization will be specifically geared towards growth and the Fabasoft brand will be positioned for the future as part of a comprehensive rebranding.

Fabasoft will continue to invest in the development, distribution and marketing of content-focused solution offerings. In addition to business-oriented organic growth opportunities, inorganic options will also continue to be evaluated and pursued.

Just as it does for our customers, SAP forms the financial backbone of the Fabasoft Group. In order to optimally support further growth and to standardize and professionalize Group-wide financial processes in the long term, Fabasoft has initiated the transition to SAP S/4HANA Public Cloud and SAP SuccessFactors for all Group companies. This is an important step toward a future-oriented, scalable system landscape.

The company also aims to establish and expand successful international partner infrastructures. This would involve significant upfront investments, particularly in international marketing, cross-regional presence, partner support, and personnel expansion.

These investments and the planned expansion and growth initiatives will continue to impact the Fabasoft Group's profitability in the 2025/2026 fiscal year. At the same time, strategic issues of high relevance for sustainable and future-oriented development will continue to be given priority over shortterm earnings targets.

The Fabasoft Group, which successfully implements the core topics of digital transformation with its comprehensive and proven range of products and services, will continue to be well positioned to seize opportunities even in a difficult market environment characterized by global political and economic upheaval.

3. Report on opportunities and risks

3.1. Opportunities of the Fabasoft Group

Opportunities for the Fabasoft Group are seen in the following areas in particular:

3.1.1. The opportunities and growth potential of the Fabasphere

Fabasoft is well positioned to actively leverage the growing demand for reliable and high-performance software products in Europe and beyond. The digital transformation of business and public administration, along with increasing demands for security and efficiency, offer a wide range of market opportunities.

Significant growth potential lies in the targeted expansion of existing customer business. Fabasoft has an established portfolio that is successfully used by many customers. In addition to focused marketing and sales measures by the Fabasoft Solutions, the comprehensive rebranding and subsequent campaign to increase visibility are intended to sustainably increase market penetration. These measures are aimed at highlighting the significant added value of using multiple Fabasoft Solutions and increasing growth both with existing customers and in new customer acquisition. As the market leader in electronic records in German- speaking countries, Fabasoft also considers itself very well positioned for upcoming tenders – both technologically and in terms of excellent references and market knowledge.

Further growth opportunities arise from the targeted expansion of the existing portfolio with new functionalities, particularly in the area of AI. Mindbreeze AI in the Fabasphere offers the Fabasoft Solutions upselling potential within its existing customer base. There is also growing interest in intelligent enhancements to existing specialist applications in public administration, which is increasingly focusing on the automation of routine processes due to demographic change. In addition, technological advances, particularly in the area of cloud-native architecture, enable seamless integration into different operating environments. This allows the requirements of modern multicloud strategies to be optimally supported and digital administration processes to be implemented efficiently, confidently and in a future-proof manner.

In addition to the organic development of the product portfolio, Fabasoft is also consistently pursuing an inorganic growth strategy. Fabasoft continuously evaluates the development of new solutions and strategically appropriate acquisition opportunities that either offer technological additions, open up new market segments, or enable access to new customer groups. Fabasoft has a corporate organization that is geared towards bringing new solutions to market quickly and realizing customer benefits rapidly. This structured approach supports the expansion of the Fabasphere and strengthens its position as a trusted provider of business-critical digitalization solutions.

3.1.2. The opportunities and growth potential of Mindbreeze

Mindbreeze has been working on intelligent information processing (enterprise search, information insight, proactive knowledge management) and the use of AI for over two decades. The company's achievements are also reflected in the numerous positive reviews it has received from IT analyst firms. The resulting visibility on the international market provides a good starting point for further growth with and alongside major international clients and partners who are specifically looking for AI-based technologies for enterprise use.

Fabasoft and Mindbreeze see particular opportunities in the area of new customer acquisition through the user-oriented further development of Mindbreeze InSpire as the technological basis for specific application- centric solutions and the Insight Workplace. Further opportunities arise with the provision of modern interaction options through the integration of AI language models for generative AI.

The Insight Workplace takes interaction with company data to a new level. By using different AI methods and providing information from all connected company data sources, the Insight Workplace offers forward-looking interaction options with company data (summarizing content, chatting with documents, answering questions, content-specific visual representations) as a central starting point.

Mindbreeze uses Retrieval Augmented Generation to provide answers and minimize hallucinations. Mindbreeze InSpire is already in long-term productive use by well-known international customers. Currently, around 25 Mindbreeze customers are listed in the Forbes 2000. Fabasoft and Mindbreeze see opportunities for further growth through the targeted establishment and expansion of key account management in order to identify upselling potential or discuss further applications for Mindbreeze.

In addition, the partner network will be established and expanded to support customers with focused local and/or specific use cases and to tap into customer groups that are not directly served by Mindbreeze. Mindbreeze's partner programs are designed to further expand its presence in Europe and North America and strengthen Mindbreeze's position in the market.

Furthermore, Fabasoft and Mindbreeze see opportunities in the use of Mindbreeze AI for solutions in the Fabasphere.

3.1.3. Audits and certifications

To ensure high standards in the areas of information security and data protection, Fabasoft pursues a comprehensive certification strategy through regularly renewed and expanded audits and certifications. Ensuring high quality, security, and service standards is made possible by an integrated and certified management system.

As part of a cross-company monitoring audit in November 2024, carried out by Quality Austria Certification GmbH, Fabasoft's quality management system was recertified according to ISO 9001. During this audit, the information security management system was also recertified according to ISO 27001 including ISO 27018 (protection of personal data in public cloud services) and the service management system was recertified according to ISO 20000 by CIS – Certification & Information Security Services GmbH.

The SaaS product portfolio of Fabasoft and Mindbreeze is also distinguished by demanding audits and certifications. The scope of the audits described below includes the Fabasoft Cloud and the Fabasoft Solutions (Fabasoft Approve, Fabasoft Boards, Fabasoft Contracts, Fabasoft Dora, Fabasoft Oblivation, Fabasoft OneGov, Fabasoft Talents, Fabasoft Xpublisher) as well as Mindbreeze InSpire SaaS. Fabasoft and Mindbreeze successfully completed the audit again in early 2025 in accordance with the requirements of the BSI C5 criteria catalog, SOC- 2 (Trust Service Criteria for Security), and ISAE 3402 for the Fabasoft Cloud and the Fabasoft Solutions as well as Mindbreeze Inspire SaaS. The observation period ranged from 1 January 2024 to 31 December 2024. The Type 2 audit method verifies the effective application and implementation of controls throughout the entire audit period using the ISAE 3000 reporting method. The audit reports were issued by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC) Germany.

The Cloud Computing Compliance Criteria Catalogue of the German Federal Office for Information Security (BSI C5) specifies minimum requirements for secure cloud computing and was developed to specify and verify the security requirements for cloud service providers. The SOC 2 audit is a standard for service companies that process customer data, particularly in the IT and cloud sector. Developed by the American Institute of Certified Public Accountants (AICPA), it checks whether companies meet criteria for security, availability, confidentiality, integrity of processing, and data protection. The ISAE 3402 Type 2 audit is an international standard for evaluating the internal control systems (derived from the COBIT 2019 framework) of service providers that perform financial and business processes on behalf of their customers, particularly for external services that have an impact on financial reporting.

In May 2025, SCOPE Europe, the responsible monitoring body once again confirmed the compliance of the Fabasoft Cloud and the Fabasoft Solutions developed on it with the requirements of the EU Cloud Code of Conduct at the highest compliance level 3. The EU Cloud CoC was developed by representatives of European and multinational companies and organizations 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 provides cloud-specific approaches and recommendations based on the GDPR and international standards such as ISO 27001 and ISO 27018. The EU Cloud CoC 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 greater trust and a high level of data protection in the European cloud computing market.

In December 2024, Fabasoft's Cyber Trust Austria Gold Label was renewed. The Austrian seal of approval for cybersecurity is based on the Cyber Risk Rating of the Competence Center Secure Austria (KSÖ).

The Fabasphere meets 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) in silver by TÜV Austria in October 2025, which is valid for three years. The Fabasphere does not exclude any users and enables everyone to use it optimally, even with the necessary input/output devices such as a keyboard, voice input, screen reader, etc. Mindbreeze InSpire also meets the requirements of WCAG 2.1 – AA for accessible web content to a high degree and was awarded the WACA certificate in silver by TÜV Austria for the first time in November 2022.

The WACA certificate is Austria's first and only quality seal for web accessibility (websites/applications) that makes compliance with international W3C guidelines visible to the public.

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, shortterm 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 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 triedand- 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 startup costs, difficulties in finding staff for key positions, internationalization and localization 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 conditions in individual countries, in particular trade restrictions and contradictions or overlaps in regulatory or tax provisions, may also represent risk factors for more internationalized business activities.

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 defense 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 – as well as operating errors, cyberattacks, DDoS attacks, malware (for example viruses, phishing attacks, trojans, or ransomware) 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

The company's products use generative AI technologies to varying degrees. Large language models (LLMs) are trained with a large amount of publicly available data to continuously improve their performance. However, this carries a high risk of misinterpretation in the results (hallucinations). To minimize this risk, the Fabasoft Group relies on retrieval augmented generation (RAG). This combines the performance of Mindbreeze as a fact provider with the language understanding of the LLM – for generated, context-based answers including the sources of the information. Nevertheless, it cannot be ruled out that content generated by AI systems may be offensive, illegal, or otherwise harmful. In addition, ineffective or inappropriate procedures in the development or implementation of AI by customers, partners, or the Fabasoft Group itself could lead to incidents that impair the acceptance of AI solutions or harm individuals, customers, or society or result in our products and services not functioning as intended.

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 measures and barriers have been implemented to prevent unauthorized access and to ensure the confidentiality, integrity, availability, and authenticity of information and systems.

A catalog of criteria implemented in the procurement workflow supports the selection of security-relevant 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.

Beyond the purely technical aspects of information security, there is also the risk of cyberattacks, targeted industrial espionage, and manipulation and fraud at the 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 appropriated 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. Sufficiently qualified staff may not be available to meet the personnel requirements.

There is also a risk 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 does not operate any subsidiaries or branches in Ukraine, the Russian Federation, Belarus, or Israel, nor does it procure any relevant development services from any of these countries. Likewise, there are no relevant end customer or partner businesses in any of the countries mentioned. From today's perspective, no significant effects on customers and partners are expected as a result of the armed conflict and the associated sanctions against Russia and other affected countries, for example through disruptions to supply chains, the overall economic climate, public finances, etc. However, the increased risk of cyberattacks or other attacks on critical infrastructure remains unquantifiable.

The formation of new governments in countries that are also relevant to the Fabasoft Group represents a significant source of uncertainty. Governments determine the future direction of their countries and thus also define key factors in global economic competition. The introduction of new trade barriers could therefore also have a negative impact on the Fabasoft Group's net assets, financial position, and results of operations.

Risks from pandemics and environmental disasters

The spread of a pandemic or any environmental or natural disasters could repeatedly lead to significant disruptions to operational business processes and public life. Fabasoft took comprehensive measures at an early stage to maintain business operations as best as possible, which will be maintained and continuously evaluated as necessary. Tried-andtested emergency and crisis plans and defined measures will be adapted or expanded as necessary to reflect new findings.

As the owner of its headquarters in Linz, Fabasoft bears the risk of damage caused by environmental disasters, which can result in both financial burdens and business interruptions. To counter these risks, insurance policies have been taken out for the headquarters to mitigate the consequences of such risk factors to the extent available on the market. For the leased locations, the risk of damage lies primarily with the landlords, but operational disruptions could also occur here.

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 centers 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 twelve 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 for all identified climate-related risks is currently below the internally defined materiality threshold, impacts on the financial position cannot be ruled out over the long term.

3.2.6. Financial risks

There is a risk that customer expectations of individual products 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.

The risk of defaults on receivables is still considered relatively low due to the customer structure in the public sector and the resulting composition of customer receivables. In particular, usage fees are collected at the beginning of the term and linked to the provision of services. There is an interest rate risk for both other financial assets and long-term financial liabilities. While financial assets pose only a low risk due to their short-term liquidity, an increase in interest rates could lead to higher financing costs for long-term bank liabilities with variable interest rates. This risk is monitored on an ongoing basis as part of liquidity and financial planning. Currency risks exist in particular where receivables or liabilities or balances with financial and insurance institutions are denominated in a currency other than the local currency of the company.

The effects of macroeconomic upheavals depend on their extent and duration. In such phases, increased risks may arise with regard to the security and value retention of assets held at financial and insurance institutions or with regard to outstanding receivables. In addition, in a persistently high inflationary environment, it may become difficult to secure the purchasing power of cash holdings and proceeds from continuing obligations. Against this backdrop,

The company's existing continuing obligation contracts with customers and partners for recurring revenues generally include options for inflation adjustments. These are usually measured against a general, published index. The adjustment option generally exists on specific dates or after specific periods and once certain thresholds are exceeded. This usually results in a time lag between the rise in inflation and the impact of price adjustments on revenue. Furthermore, it should be noted that price increases, particularly among suppliers, as well as the rise in personnel costs and personnel acquisition costs, may in some cases still be significantly higher than the published index figures used for contract adjustments.

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 that enables those responsible for control and processes to identify risks at an early stage, analyze them, and take appropriate countermeasures. Those responsible for controls and processes ensure that their controls and processes are appropriate, effective, and efficient. They ensure that internal and external sources of information relevant to the functioning of the controls and processes are considered and that controls are carried out at the defined time or at the defined intervals. They communicate the necessary information on the control objectives and implementation (control execution) to those responsible for carrying out the controls.

Fabasoft's Group-wide risk management system aims to identify significant developments that could jeopardize the continued existence of the company at an early stage through a risk early warning system. Climate-related opportunities and risks are also integrated into the risk management system.

Group accounting-related internal control and risk management system

A comprehensive reporting system based on key performance indicators has been implemented within the Fabasoft Group to enable risks to be identified at an early stage. The Finance organizational unit is responsible for reporting. The data consists of strategic and operational key performance indicators, which are reported on a monthly basis. During regular reviews between the Managing Board and the organizational units, the detailed plans are coordinated with the overall plan, the target/actual figures are compared, and an outlook for the following quarters is provided. In addition, an internal control system (ICS) has been set up, which is described as follows: Fabasoft has installed an internal control system in the areas of human resources, purchasing, revenue cycle, and tax, which uses control points and is based on a dual control principle and corresponding process definitions and guidelines to ensure compliance with laws and standards and to prevent dishonest and illegal actions.

The ICS guidelines for human resources, purchasing, revenue cycle, and tax have been comprehensively documented in writing and linked to a coordinated control matrix. These matrices contain all automated and manual internal controls that must be performed. The documents (ICS guidelines and control matrix) are revised or updated once a year or ad hoc in the event of fundamental changes. Compliance with the control points is checked at regular intervals by means of random samples. The responsibilities and accountabilities contained in the risk management and internal control system (ICS) apply to all subsidiaries and are centrally managed by the head office in Linz.

4. Significant transactions with related companies and persons

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

Linz, 5 November 2025

Helmut Fallmann

Chairman of the Managing Board

Oliver Albl

Member of the Managing Board

Matthias Wodniok

Member of the Managing Board

Consolidated Interim Financial Statement

Consolidated Interim Balance Sheet 40

Consolidated Statement of Comprehensive Income

41 – 42

Consolidated Cash Flow Statement 43

Consolidated Statement of Changes in Equity

44 – 45

Notes to the Consolidated Interim Financial Statements

47 – 55

Consolidated interim balance sheet as at 30 September 2025

Assets in kEUR	Note	30/09/2025	31/03/2025
Non-current assets
Property, plant and equipment	3.1./3.4.	38,808	36,743
Intangible assets	3.1.	3,947	4,235
Other financial assets	3.3.	151	151
Other non-financial assets		75	159
Deferred income tax assets		1,339	955
		44,320	42,243
Current assets
Trade and other receivables		18,667	13,905
Contract assets		3,143	2,694
Income tax receivables		45	131
Cash and cash equivalents		29,325	34,283
		51,180	51,013
Total assets		95,500	93,256
Equity and liabilities in kEUR	Note	30/09/2025	31/03/2025
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.	-4,122	-4,024
Other reserves		-718	-718
Adjustment item for currency conversion		375	323
Retained earnings		11,641	7,637
		37,731	33,773
Non-controlling interest		1,745	2,323
		39,476	36,096
Non-current liabilities
Provisions for severance payments		3,189	3,098
Deferred income tax liabilities		1,275	1,159
Financial liabilities		10,239	10,672
Other payables	3.3./3.4.	6,472	4,503
Investment grants	3.4.	61	81
		21,236	19,513
Current liabilities
Financial liabilities		800	1,046
Trade and other payables		13,151	12,920
Liabilities for income taxes		2,364	2,096
Contract liabilities	3.4.	18,473	21,586
		34,788	37,647
Total equity and liabilities		95,500	93,256

Consolidated statement of comprehensive income for the first half of the 2025/2026 fiscal year

in kEUR	Note	April – Sep 2025	April – Sep 2024
Sales revenue	5.	43,641	42,534
Other operating income		376	39
Expenses for purchased services		-2,475	-2,389
Employee benefits expenses		-23,710	-22,959
Depreciation and amortisation expenses	5.	-3,800	-3,959
Other operating expenses		-6,713	-6,637
Operating result	5.	7,319	6,629
Finance income		4	69
Finance expenses		-384	-177
Result before income taxes		6,939	6,521
Income taxes		-1,854	-1,748
Result for the period		5,085	4,773
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion		72	182
Other result		72	182
Total result		5,157	4,955
Result for the period attributable to:
Equity holders of the Parent Company		4,820	4,544
Non-controlling interest		265	229
Total result attributable to:
Equity holders of the Parent Company		4,872	4,686
Non-controlling interest		285	269
Diluted and basic earnings per share in terms of the results for the period for result attributable to the equity holders of the Parent Company in the fiscal year
(expressed in EUR per share)		0.44	0.41

Consolidated statement of comprehensive income for the second quarter of the 2025/2026 fiscal year

in kEUR	Note	July – Sep 2025	July – Sep 2024
Sales revenue	5.	22,445	22,101
Other operating income		253	21
Expenses for purchased services		-1,233	-1,200
Employee benefits expenses		-11,597	-11,185
Depreciation and amortisation expenses	5.	-1,906	-1,970
Other operating expenses		-3,053	-2,847
Operating result	5.	4,909	4,920
Finance income		1	43
Finance expenses		-217	-87
Result before income taxes		4,693	4,876
Income taxes		-1,316	-1,292
Result for the period		3,377	3,584
Other result (possible reclassification in result for the period):
Change in adjustment item for currency conversion		-17	109
Other result		-17	109
Total result		3,360	3,693
Result for the period attributable to:
Equity holders of the Parent Company		3,220	3,352
Non-controlling interest		157	232
Total result attributable to:
Equity holders of the Parent Company		3,206	3,435
Non-controlling interest		154	258
Diluted and basic earnings per share in terms of the results for the period for result attributable to the equity holders of the Parent Company in the fiscal year (expressed in EUR per share)		0.29	0.30

Consolidated cash flow statement for the first half of the 2025/2026 fiscal year

in kEUR	Note	April – Sep 2025	April – Sep 2024
Cash flows from operating activities
Result before income taxes		6,939	6,521
Net finance expenses		380	108
Operating result		7,319	6,629
Adjustments in non-cash items
Depreciation and amortisation expenses	5.	3,800	3,959
Effects from currency conversion		107	65
Changes in non-current provisions		91	-32
Changes in other non-financial assets recognised in profit and loss		84	113
Loss from disposal of property, plant and equipment		6	22
Income from the dissolution of investment grants	3.4.	-21	-19
Income from appreciation of other financial assets		0	-8
		11,386	10,729
Adjustments in net current assets
Changes in trade and other receivables
(without income tax receivables)		-4,945	-287
Changes in contract assets		-442	-817
Changes in trade and other payables (without income tax and lease liabilities)		-57	-364
Changes in contract liabilities		-2,968	-2,306
		-8,412	-3,774
Cash generated from operations		2,974	6,955
Interest received		4	35
Interest paid		-378	-166
Income taxes paid		-1,768	-1,971
Net cash generated from operating activities		832	4,853
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	3.1.	-2,610	-2,182
Proceeds from sale of property, plant and equipment		29	2
Redemption of earn-out liabilities from company acquisitions		0	-400
Net cash used in investing activities		-2,581	-2,580
Cash flows from financing activities
Redemption of lease liability		-799	-1,107
Payments for the purchase of treasury shares		-98	-523
Dividend distribution		-1,077	-1,090
Dividend distribution to non-controlling interest		-590	-700
Payments from transactions with non-controlling interest		8	0
Payments for transactions with non-controlling interest		-20	0
Repayment and payment of financial liabilities	3.3.	-644	0
Net cash used in financing activities		-3,220	-3,420
Changes in cash and cash equivalents		-4,969	-1,147
Development in cash and cash equivalents
Cash and cash equivalents at beginning of period		34,283	25,068
Effect of exchange rates changes		11	65
Decrease		-4,969	-1,147
Cash and cash equivalents at end of period	4.	29,325	23,986

Consolidated statement of changes in equity for the first half of the 2025/2026 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	interest Non- controlling	Total equity
31 March 2025 Balance at		11,000	19,555	-4,024	-718	323	7,637	33,773	2,323	36,096
Other result		0	0	0	0	50	0	50	22	72
for the period Result		0	0	0	0	0	4,820	4,820	265	5,085
Total result		0	0	0	0	50	4,820	4,870	287	5,156
distribution Dividend		0	0	0	0	0	-1,077	-1,077	-590	-1,666
with non-controlling Transactions interest		0	0	0	0	2	261	263	-275	-12
treasury shares Acquisition of	3.2.1	0	0	-98	0	0	0	-98	0	-98
30 September 2025 Balance at	3.2.	11,000	19,555	-4,122	-718	375	11,641	37,731	1,745	39,476

Attributable to equity holders of the Parent Company

Total equity	30,638	182	4,773	4,955	-1,790	-523	33,280
Non interest controlling	2,638	40	229	269	-700	0	2,207
Total	28,000	142	4,544	4,686	-1,090	-523	31,073
Retained earnings	-22	0	4,544	4,544	-1,090	0	3,432
Adjustment item for currency conversion	223	142	0	142	0	0	365
Other reserves	-740	0	0	0	0	0	-740
Treasury shares	-2,016	0	0	0	0	-523	-2,539
Capital reserves	19,555	0	0	0	0	0	19,555
Share capital	11,000	0	0	0	0	0	11,000
Note						3.2.1.	3.2.
in kEUR	31 March 2024 Balance at	Other result	for the period Result	Total result	distribution Dividend	treasury shares Acquisition of	30 September 2024 Balance at

Notes to the consolidated interim financial statements as at 30 September 2025

1. Company Details

As an Austrian IT innovation leader and market leader in electronic files in the DACH region, Fabasoft sets standards for efficient and scalable processes in digital document and process management. The SaaS provider's technologies not only create solutions, but also define what excellence in digital transformation means. That is why numerous well-known companies and public administration organizations have been relying on Fabasoft's quality and experience for more than three decades. In a digital ecosystem – the Fabasphere – Fabasoft offers networked software solutions for document-intensive business processes. The products digitalize, simplify and accelerate business processes – while sustainably improving their quality. Fabasoft AG with its headquarters at Honauerstrasse 4, 4020 Linz, Austria is the Group Parent Company.

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

The reporting period for the consolidated financial statements is from 1 April 2025 to 30 September 2025.

2. Accounting policies

2.1. Basis of preparation

The consolidated interim financial statements dated 30 September 2025 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 2025 were also applied for the preparation of the interim consolidated financial statements.

The following standards and interpretations were adopted or amended by 30 September 2025 and are mandatory for the 2025/2026 fiscal year:

Standard	Content	To be applied to new fiscal years as of
IAS 21	Lack of currency convertibility	January 2025

The above listed new version or amendment has no significant impact 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 September 2025 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 2025, 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	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
Hon24 Immobilien GmbH	Linz/Austria	100
Fabasoft Research GmbH	Linz/Austria	100
Fabasphere GmbH	Linz/Austria	100
Fabasoft Deutschland GmbH	Frankfurt am Main/Germany	100
Fabasoft Xpublisher GmbH	Munich/Germany	75.5
Fabasoft Schweiz AG*	Bern/Switzerland	70
Entity	Location	Indirect share of Fabasoft AG as a %
Mindbreeze Corporation	Chicago/USA	85.5
Fabasoft Xpublisher lnc.	Chicago/USA	60

^* During the reporting period, Fabasoft 4teamwork AG was renamed Fabasoft Schweiz AG.

2.2.2. Changes to the scope of consolidation

On 9 April 2025, Fabasoft AG founded two wholly owned subsidiaries, Fabasoft Research GmbH and Fabasphere GmbH, based in the political municipality of Linz. Fabasoft Research GmbH and Fabasphere GmbH were fully consolidated for the first time when the companies were founded.

On 23 May 2025, the shareholders of Fabasoft Xpublisher GmbH unanimously resolved to increase the share capital by EUR 58,000.00 from EUR 42,000.00 to EUR 100,000.00. The increase in share capital was carried out as a cash capital increase. The amount of the increase in share capital was paid in full. The capital increase led to an increase in the shareholding of Fabasoft AG from previously 60 % to 75.5 %; as well as a dilution of the shares held by the co-shareholders, who now hold a 24.5 % stake.

On 26 June 2025, Fabasoft AG increased its stake in Fabasoft Oblivation GmbH from 51 % to 100 %. The shares were acquired from the former management of Fabasoft Oblivation GmbH. The purchase price corresponded to the proportionate share capital (each EUR 9,800) of the former shareholders of Fabasoft Oblivation GmbH. Both sellers, including Fabian Fallmann, who is a related party in accordance with IAS 24, received the same purchase price per share, so that from the perspective of the company management, the transaction can be assumed to be at arm's length.

The merger of Fabasoft Oblivation GmbH into Fabasoft AG was approved with economic effect as of 30 September 2025. At the time of preparing the half-yearly financial statement, the merger had not yet been entered in the commercial register.

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 the 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 consolidated statement of comprehensive income

3.1. Investments

Investments in property, plant and equipment and intangible assets mainly relate to hardware, software and construction investments in the office building.

3.2. Equity

As at 30 September 2025, the company's share capital was kEUR 11,000 (31/03/2025: kEUR 11,000). It is comprised of 11,000,000 individual shares (31/03/2025: 11,000,000) at a nominal value of EUR 1.00 per share.

The capital reserve amounting to kEUR 19,555 (31/03/2025: kEUR 19,555) affects premiums to the amount of kEUR 17,173 (31/03/2025: kEUR 17,173). The remainder results in an amount of kEUR 2,069 (31/03/2025: kEUR 2,069) from reorganizations and in an amount of kEUR 313 (31/03/2025: kEUR 313) from former options programs.

The following resolutions, among others, were made at the Fabasoft AG Annual General Meeting on 9 July 2025:

A dividend of EUR 0.10 per dividend-bearing share was paid out for the 2024/2025 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 (Aktiengesetz, AktG) 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 AktG 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 exchange trading days prior to the fixing of the purchase price.

The Managing Board is authorized, with the approval of the Supervisory Board, to increase the company's share capital within five years of the entry of this amendment to the Articles of Association in the commercial register – in several tranches, if necessary – by up to 5,500,000.00 nominal value by issuing up to 5,500,000 no-par value shares, both against cash contributions and, in accordance with Section 172 of the Austrian Stock Corporation Act (AktG), against contributions in kind, up to EUR 16,500,000.00 and to determine the terms and conditions of issue in agreement with the Supervisory Board (authorized capital within the meaning of Section 169 et seq. AktG), whereby the Managing Board is also authorized to issue new shares, if necessary, excluding the subscription rights otherwise attached to the shares (Section 170 (2) AktG).

3.2.1. Treasury shares

The resolution of the Managing Board dated 23 September 2025, made after approval of the Supervisory Board, to make use of the authorization of the General Meeting on 9 July 2025 to purchase its own shares according to Section 65 (1) (4) and Section 65 (1) (8) of the AktG was made public on 23 September 2025 and can be viewed in detail on the investors section of www.fabasoft.com. Under this share buyback program, shares in the company were to be acquired up to a maximum total volume excluding incidental acquisition costs of EUR 2 million.

The share buyback program of Fabasoft AG started on 25 September 2025 and will run until 31 January 2027, at the latest. As of the reporting date 30 September 2025, a total of 229,428 no-par value shares (2.03 % of the share capital) were held as treasury shares, of which 5,801 no-par value shares were purchased in the second quarter of the 2025/2026 fiscal year. The costs this entailed for the company amounting to kEUR 4,122 are disclosed in a separate adjustment item in equity.

The share buyback is carried out under the management of a bank that makes its decisions on the timing of the acquisition of the shares independently and without influence from the company. The acquisition is made via the stock exchange in compliance with the safe harbor provision in Article 5 of Regulation (EU) No. 596/2014, with the exception of the repurchase purpose. This is broader than provided for in Article 5 (2) of Regulation (EU) No. 596/2014. 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 acquired shares can be used for all purposes specified in the authorisation of the Annual General Meeting on 9 July 2025, in particular in accordance with Section 65 para. 1 no. 4 AktG for issue to employees, senior executives and members of the Executive Board of the company or an affiliated company and in accordance with Section 65 para. 1 no. 8 AktG up to a maximum of 10 % of the share capital. No treasury shares were sold in the reporting period.

3.3. Financial instruments

The financial instruments measured at fair value on 30 September 2025 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	29,325	0	0	29,325	0
Trade and other receivables	18,667	0	0	16,002	2,659
Other financial assets	151	151	0	0	0
Other payables	6,472	0	0	0	6,472
Trade and other payables	13,151	0	0	4,495	8,656
Financial liability	11,039	0	0	11,039	0

The financial instruments on 31 March 2025 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	34,283	0	0	34,283	0
Trade and other receivables	13,905	0	6	11,789	2,110
Other financial assets	151	151	0	0	0
Other payables	4,503	0	0	0	4,503
Trade and other payables	12,919	0	0	3,538	9,381
Financial liability	11,474	0	0	11,474	0

The amount recognized at fair value under trade and other receivables relates to other receivables. These other receivables result from the acquisition of Fabasoft 4teamwork AG and arise from the fair value measurement of the contingent purchase price.

Other financial assets relate to securities (investment certificates) to the amount of kEUR 151 (31/03/2025: kEUR 151). The fair values of the securities are derived from the current market value.

The financial liabilities relate to a loan with a nominal amount of kEUR 12,000 and a term of 15 years, which was taken out in connection with the acquisition of the office building at Honauerstrasse 2 and 4, 4020 Linz on 30 October 2024. The financial liability is to be repaid in equal semi-annual installments (as of 31 March and 30 September). For the first five years, the interest rate is fixed at 3.77 %, after which it will be converted to a variable interest rate based on the 6-month EURIBOR. There are no loan agreements (covenants) for this financing. The effective interest rate for this financial liability is 3.80 % for the 2025/2026 fiscal year.

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

The contract liabilities resulting from service contracts (based on fixed-price projects) pursuant to IFRS 15 amounted to kEUR 1,008 as at 30 September 2025 (31/03/2025: kEUR 747), the remaining amount of kEUR 17,465 (31/03/2025: 20,838) related 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 7,733 as at 30 September 2025 (31/03/2025: kEUR 5,799), the leasing liabilities are reported at an amount of kEUR 6,472 as at 30 September 2025 (31/03/2025: kEUR 4,503) in non-current other payables and at an amount of kEUR 1,717 (31/03/2025: kEUR 1,565) 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 61 (31/03/2025: kEUR 81) and to the amount of kEUR 21 (31/03/2025: corresponding period of the previous year: kEUR 19) 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 locations of the assets.

April – September 2025 in kEUR	Austria	Germany	Switzerland	Other countries	Group
Gross sales	31,409	19,987	4,286	2,922	58,604
Less intersegmental sales	-14,459	-363	-117	-24	-14,963
Sales with external customers	16,950	19,624	4,169	2,898	43,641
Operating result	4,864	2,253	253	-52	7,319
Depreciation and amortization expenses	2,706	596	153	347	3,800

Reconciliation in kEUR
Operating result segments	7,319
Financial result Group	-380
Result before income taxes	6,939

April – September 2024				Other
in kEUR	Austria	Germany	Switzerland	countries	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

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.

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

Breakdown of sales by type of contract:

in kEUR	April – September 2025	April – September 2024
Recurring revenue	26,113	24,241
Non-recurring revenue	17,528	18,293
thereof software	306	548
thereof professional services	17,221	17,745
Total	43,641	42,534

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

Non-recurring revenues include one-time licenses (software) and non-recurring professional services revenues (e.g. consulting services, service contracts based on fixed-price projects). With the exception of one-time licenses, whose revenues are recognized at a point in time, revenues are recognized on an accrual basis.

6. Other statements

6.1. Details of affiliated persons and employees

6.1.1. Average number of employees

	April – September 2025	April – September 2024
Employees	499	498

6.1.2. Managing Board of Fabasoft AG

• Prof. Dipl.-Ing. Helmut Fallmann, Linz (Chairman of the Managing Board)
• Ing. Oliver Albl, Haag am Hausruck (Member of the Managing Board)
• Matthias Wodniok, Hofheim Wallau (Member of the Managing Board)

6.1.3. Supervisory Board of Fabasoft AG

• Friedrich Roithmayr, Linz (Chairman of the Supervisory Board)
• Ingrid Schaumüller-Bichl, Linz (Second Deputy)
• Andreas Altmann, Innsbruck (First Deputy)
• Michaela Schwinghammer-Hausleithner, Linz (Member)

6.1.4. Other affiliated companies und employees

• Fallmann & Bauernfeind Privatstiftung, Linz, main shareholder of Fabasoft AG
• Birgit Fallmann, wife of Helmut Fallmann, employee of Fabasoft AG (continuous emoluments kEUR 25, corresponding period of the previous year kEUR 29)
• Fabian Fallmann, son of Helmut Fallmann, managing director of Fabasoft International Services GmbH (continuous emoluments kEUR 70, corresponding period of the previous year kEUR 0), Fabasphere GmbH (no current payments, comparative period of the previous year: kEUR 0) and Fabasoft Oblivation GmbH (no current payments, comparative period of the previous year: kEUR 41) - with regard to the acquisition of the non-controlling interest in Fabasoft Oblivation GmbH, please refer to the information provided in section 2.2.2.

There are no further business relationships with other affiliated companies and employees in the first half of the 2025/2026 fiscal year.

6.2. Direct and indirect effects from the macroeconomic and geopolitical 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. 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 cyberattacks or other attacks on critical infrastructures cannot be quantified either.

The formation of new governments in countries that are also relevant to the Fabasoft Group represents a significant source of uncertainty. Governments determine the future direction of their countries and thus also define key factors in global economic competition. The introduction of new trade barriers could therefore also have a negative impact on the Fabasoft Groups' net assets, financial position, and results of operations. However, the specific impact of potential trade barriers depends heavily on the respective

political and economic situation in the countries affected and cannot be reliably quantified at present. Developments are being monitored on an ongoing basis and taken into account accordingly in risk reporting. At the time of the half-yearly financial statement as of 30 September 2025, there were no new specific findings compared to the previous reporting date.

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 occured after 30 September 2025.

Linz, 5 November 2025

Helmut Fallmann

Chairman of the Managing Board

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 2025 to 30 September 2025. These condensed consolidated interim financial statements comprise the consolidated interim balance sheet as of 30 September 2025 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 2025 to 30 September 2025 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.

Opinion on the condensed group management report and on the statement by the legal representatives pursuant to Section 125 BörseG

We have read the condensed interim group management report and assessed 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 half-year financial report contains the declaration of the legal representatives required by Section 125 para. 1 no. 3 BörseG.

Linz, 5 November 2025

Ernst & Young

Wirtschaftsprüfungsgesellschaft m.b.H.

Mag. Erich Lehner mp

Wirtschaftsprüfer / Certified Public Accountant

Further information

Statement of all legal representatives

61

Imprint

62 – 63

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, 5 November 2025

Helmut Fallmann

Chairman of the Managing Board

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, 2025. All rights reserved. All hardware and software names used are the trade names and/or brands of the respective manufacturers. Microsoft, Windows and the Windows Logo are registered trademarks of Microsoft Corporation in the United States and/or other countries. Adobe, the Adobe logo, Acrobat, the Adobe PDF logo, Adobe Premiere, Creative Cloud, InDesign, and Photoshop are either registered trademarks or trademarks of Adobe in the United States and/or other countries.

Future-related and other statements:

This report contains data which relate to expected future developments. These forward-looking statements are normally but not exclusively paraphrased with words such as "expect", "assume", "plan" etc. If these assumptions on which the statements have been based do not prove true or if risks materialise – such as those mentioned for example in the issue prospectus or in the risk report or if the current situation changes in the future, the actual results

may deviate from the result expected at present. The forward-looking statements assert no claim to correctness or completeness, are not updated and should therefore be treated with all due caution.

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

Austria

Fabasoft Austria GmbH

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

Fabasoft Approve GmbH

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

Fabasoft Contracts GmbH

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

Fabasoft Talents GmbH

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

Mindbreeze GmbH

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

USA

Mindbreeze Corporation

433 West Van Buren Street Chicago, Illinois, 60607, USA +1 312 300-6745

Fabasoft Xpublisher Inc.

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

Switzerland

Fabasoft Schweiz AG

Dammweg 9 3013 Bern, Switzerland +41 31 511 04 00

Contact Details

General Informationen:

office@fabasoft.com

Sustainability:

sustainability@fabasoft.com

Investor Relations: ir@fabasoft.com

Press Relations: pr@fabasoft.com Fabasoft 6 Months Report 2025/2026

Publisher