Adesso : Annual Report 2025 (including the consolidated financial statements, the combined management report and the report of the Supervisory Board) (..adesso annual report 2025 en)

About this update from Adesso Se

Annual Report 2025 adesso Group Annual Report 2025 2 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Digital sovereignty -Creating balance With 14 per cent sales growth, adesso demonstrated its exceptional growth capability in 2025, despite the challenging economic climate. adesso is now the largest IT service provider based in Germany. At the same time, digital transformation is undergoing a structural shift. While efficiency, scalability and time-to-market have been at the centre of many IT decisions in recent years, additional dimensions are now gaining importance. Geopolitical uncertainties, regulatory requirements and growing dependencies on individual technology providers are compelling companies and public institutions to reassess their digital strategies. The digital sovereignty of companies is becoming increasingly important. In our 2025 Annual Report, this section on 'Digital sovereignty - creating balance' shows you why adesso is ideally suited to help organisations establish a stable digital foundation. The aim is to enable them to make technological decisions in a self-determined, informed and flexible way, while taking account of economic, legal and organisational aspects. This focus is a key differentiating factor. From page 18, you can read about the opportunities that a balanced digital strategy provides for customer companies and for adesso's core business, and how the risks of an overly narrow focus can be effectively addressed. Building Europe's Digital Future We aspire to be the company that uniquely brings together business, people, and technology like no other. Our expertise will form the foundation for Europe's digital transformation. We stand for digital excellence, offering services and products that enable our customers to grow reliably and successfully. Our ambition is to deliver technologically leading solutions that meet all requirements and provide our customers with long-term competitive advantages. Their success is the measure of our own. Despite our passion for technology, we place people's needs and goals at the heart of everything we do. We design systems and applications that serve and empower people. Only 21% of companies have a dedicated digital sovereignty strategy adesso Group Annual Report 2025 3 Management Report ⭘ Consolidated financial statement ⭘ Service 8 Foreword by the Executive Board 80 Consolidated Notes 11 Report by the Supervisory Board 158 Investor Relations 16 Highlights 2025 166 Management and Directors 18 Digital Sovereignty - Creating Balance 170 Glossary 38 Consolidated management report 173 Finance Calendar 72 Consolidated Financial Statement 173 Imprint Remuneration Report In accordance with Section 162 of the German Stock Corporation Act, we published the Remuneration Report for fiscal year 2025 as a separate report. The publication can be accessed at https://www.adesso-group.de/corporate-governance/ or, from the date the Annual General Meeting is convened, at https://www.adesso-group.de/hv/ . Key Figures in EUR k 2025 2024* Change in % Profit situation Sales revenues 1,465,782 1,285,945 179,837 14 domestic 1,225,680 1,062,000 163,680 15 foreign 240,102 223,945 16,157 7 EBITDA 123,568 94,760 28,808 30 EBITDA margin (in %) 8.4 7.4 1.1 14 Consolidated earnings 17,460 4,152 13,308 321 Balance sheet Balance sheet total 848,295 792,805 55,490 7 Equity 192,706 179,274 13,432 7 Equity ratio (in %) 22.7 22.6 0.1 0 Liquid assets 84,574 89,682 -5,108 -6 Net cash position -73,730 -46,556 -27,174 -58 Employees Employees (FTE) 11,298 10,320 978 9 domestic 8,901 8,312 589 7 foreign 2,397 2,008 389 19 Gross profit/Employees 114 110 4 4 Share Number 6,528,220 6,522,272 5,948 0 Price at the end of the period (in EUR) 88.70 88.00 0.70 1 Market capitalisation at the end of the period (in EUR m) 579.1 574.0 5.1 1 Earnings per share (in EUR) 2.83 0.41 2.42 590 Dividend per share (in EUR)** 0.78 0.75 0.03 4 P/E ratio 31 215 -183 -85 * In 2025, adesso reclassified two fixed-price projects as the development of Software-as-a-Service platforms. From 2025 onwards, and retrospectively in the comparative figures for 2024, these are reported as intangible assets in accordance with IAS 8.42. Instead of being treated as fixed-price projects with revenue, they are now valued at cost. This reduces deferred tax assets. The corresponding portion of operating cash flow is recognized in cash flow from investing activities (see details in the notes under "3. Adjustment according to IAS 8.42"). ** Subject to the approval of the Annual General Meeting in the year under review. ISIN DE000A0Z23Q5 | WKN A0Z23Q | ADN1 adesso Group Annual Report 2025 6 Growth in Sales in EUR m EBITDA Development in EUR m 1,286 1,136 900 678 2021 2022 2023 2025 2024 1,466 ↗ 14 % 92.9 94.8 84.1 80.0 2021 * 2022 2023 2025 2024 123.6 ↗ 30 % * without one-off effect (reported: 102.0) EBITDA Development (per Quarter) in EUR m Earnings per Share in EUR ↘ -1% ↗ 104% ↗ 4% ↗ 60% 45.2 38.9 40.5 28.2 20.2 17.8 17.6 9.9 Q1 Q2 Q3 Q4 4.78 2021 * 2022 2023 2025 2024 0.41 0.49 2.83 4.40 ↗ 590% 2024 2025 * without one-off effect (reported: 7.59) adesso Group Annual Report 2025 7 ‌FOREWORD BY THE EXECUTIVE BOARD In fiscal year 2025, adesso achieved further growth of 14% to almost EUR 1.5 billion in sales, despite a continued challenging market environment. This growth was almost entirely organic. Furthermore, we significantly achieved our targets, even slightly exceeding them in terms of revenue. This performance demonstrates that we are the right partner for many companies - the partner who supports them in their digital transformation. We are very pleased about this and intend to continue to be this partner in the future, building trusting relationships with our clients. Despite all this growth, we must not lose sight of our bottom line. Here, too, we have made good progress and will continue to work on increasing profitability. With EBITDA exceeding EUR 123 million, we increased this key performance indicator by 30% in 2025 compared to the previous year, reaching the upper end of our projected range and also improving the EBITDA margin by one percentage point to 8.4% (previous year: 7.4%). It is crucial that we do not let up, because despite the evident progress, we are still significantly below our targeted margin. A key element, alongside healthy cost and price sensitivity in our domestic markets, is our continued internationalisation. We are making good progress at our Indian locations. In 2025, we were able to launch new adesso locations in Belgium and Singapore. The opening of another European location is also planned for 2026. In particular, the development of SmartShore capacities, as well as the increasing integration of agentic software development, allows for more flexible cost structures. Artificial intelligence is already unavoidable. AI is opening up possibilities at a pace that excites us. For companies, the crucial question now is: How do we truly make AI usable? Not as an experiment, but as a technology that reliably delivers a return on investment. For adesso, this means: more and more agentic software development built on genuine expertise. Without compromising on quality. Not technology for technology's sake, but because it measurably benefits our customers. While AI is an important topic for our customers and for us, it is by no means the only one: The geopolitical developments of recent weeks have once again highlighted the importance of digital sovereignty. For Germany. For Europe. And what bold decisions companies should be making today. This year, we are therefore publishing our annual report under the title "Digital Sovereignty - Creating Balance." We positioned ourselves early on for these future-oriented topics. By the third quarter of 2025, adesso had already more than doubled its GenAI revenue for the entire previous year. In total, over 100 projects had been implemented for more than 50 customers by that time. Our expertise in this area is paying off. adesso Group Annual Report 2025 8 Benedikt Bonnmann, Kristina Gerwert, Mark Lohweber, Andreas Prenneis, Michael Knopp (v. l. n. r.) As a result, EPS increased significantly in 2025 to EUR 2.83 per share (previous year: EUR 0.41 per share). The ongoing expenses in the IT Solutions segment were offset by compensating license revenues in the second and fourth quarters. Overall capacity utilisation was increased and stabilised. Going forward, we intend to continue hiring only very selectively and leverage our potential in the area of agentic software development together with our customers. We remain committed to our policy of paying a dividend and reinvesting the remainder in the growth areas of the Group. Therefore, with the approval of the Supervisory Board, the Management Board has resolved to propose a dividend increase to EUR 0.78 per share (previous year: EUR 0.75 per share). This marks the thirteenth consecutive dividend increase. adesso Group Annual Report 2025 9 In 2026, the overall economic situation will remain at a low level and will also be influenced by further energy price developments in light of the ongoing Middle East conflict. However, digitalisation will continue to take place in all sectors and is essential for companies and organisations to prepare for current and future challenges. The Executive Board therefore anticipates continued demand for adesso's comprehensive digitalisation portfolio. The forecast projects a further increase in sales to between EUR 1.6 and 1.7 billion. EBITDA is expected to rise to between EUR 130 and 150 million. We extend our sincere thanks to our stakeholders - our customers, our employees, and our partners, without whose contributions our success story would not have been possible. At the same time, we remain committed to our equity story of achieving sustainable, profitable growth. Dear shareholders, we thank you especially for your trust and continued loyalty. Dortmund, March 2026 The Executive Board Mark Lohweber Benedikt Bonnmann Kristina Gerwert Michael Knopp Andreas Prenneis adesso Group Annual Report 2025 10 ‌REPORT BY THE SUPERVISORY BOARD Prof. Dr. Volker Gruhn ADVISING AND MONITORING OF MANAGEMENT The Supervisory Board completed the tasks entrusted to it in financial year 2025 with the greatest of care and in accordance with the law and the Articles of Association. It continuously monitored the Executive Board's activities and provided assistance and advice in all important decisions related to the management of the company. In compliance with its duty to provide information in a timely and comprehensive manner, the Executive Board informed the Supervisory Board regularly, in written and oral form, about the situation and the course of business development at the company and its key subsidiaries, and about incidents and measures that were relevant for the company. The Supervisory Board received documents about the asset, financial and earnings situation for this purpose on a quarterly basis. Additionally, it received detailed information from the Executive Board about relevant business transactions. The Supervisory Board is thoroughly convinced that the operating and financial risks are hedged through organisational and internal approval processes. A sound reporting system and an internal control system exist for the company and the Group, both of which are subject to continued further development. The Supervisory Board was informed at regular intervals about the development of particularly relevant projects and the development of the Group companies. adesso Group Annual Report 2025 11 The members of the Supervisory Board had sufficient opportunity at all times to critically examine the reports and proposals presented by the Executive Board and contribute their own suggestions. In particular, the Supervisory Board discussed in depth all business transactions that were of significance for the company on the basis of written and oral reports by the Executive Board. The Supervisory Board issued its consent to individual business transactions to the extent required by the law, the Articles of Association or the rules of procedure. The Chairman of the Supervisory Board also met with the members of the Executive Board on a regular basis between meetings. There was a close and regular exchange of information and ideas, and issues regarding the company's strategy, business development, risk situation, risk management and compliance were discussed, ensuring that the Chairman of the Supervisory Board was informed about key developments. SUPERVISORY BOARD MEETINGS In financial year 2025, one extraordinary Supervisory Board meeting was held virtually and four regular Supervisory Board meetings were held in person. As described in detail below, some members took part in individual meetings via video conference. All members of the Supervisory Board, with the exception of Michael Kenfenheuer, attended all meetings. Michael Kenfenheuer was excused from the meeting on 3 June 2025 for an important reason. The attendance rate at meetings of the Supervisory Board and for the relevant members at committee meetings is set out in the attachment "Attendance of Supervisory Board members at Supervisory Board and committee meetings of adesso SE for the year 2025". The Supervisory Board consisted of six members throughout 2025. An essential component of the regular meetings were the Executive Board's reports on the current asset, financial and earnings situation within the context of the business development of the company and its subsidiaries; strategy; risk management and controlling; and personnel development and policies. The members of the Supervisory Board also discussed important individual business transactions and projects. In addition, individual current topics were discussed in regular meetings between the members of the Executive Board and the Chairperson of the Supervisory Board. The Supervisory Board was informed of events of extraordinary significance for the situation and development of the adesso Group without delay. Transactions that required the approval of the Supervisory Board were always discussed before they took place and in good time. FROM THE MEETINGS As in previous years, the March meeting focused on the financial statements of the individual companies, the Group and their development. The members met in person. At the beginning of the meeting, Michael Knopp, who has taken over the role of Chief Financial Officer (CFO) at adesso SE, introduced himself as the successor to Jörg Schroeder. The meeting centred on two key topics. Firstly, the scheduled recruitment offensive for 2025 was discussed with the goal of ensuring above-average growth in operational FTEs at adesso SE. As a result of the cautious recruitment policy in 2023 and 2024, growth was significantly below target. The current applicant situation was assessed as good, both in qualitative and quantitative terms, although high salary expectations and very specific skill requirements continued to pose challenges. Secondly, the topic of employee representation and the positioning of the existing interest group "European Forum" was discussed. The Supervisory Board and the Executive Board exchanged views on this and reflected on current developments. The CFO reported on the key findings from the adesso Group's financial statements as at the balance sheet date. The item "Treasury shares", arising from the share buyback programme, was recognised in the balance sheet for the first time. As the programme was only completed in 2025, this item was not yet fully recognised as at the balance sheet date. The CFO then presented the Consolidated Financial Statements and commented on trends over time, on selected items in the Statement of Financial Position, the Statement of Profit or Loss, liquidity, and in the Statement of Cash Flows. At Group level, the discussion covered revenue trends by sector and region, tax effects, and the contributions of individual Group companies to earnings performance. The risk report was also presented, and it was confirmed that the Group continues to have sufficient risk-bearing capacity As part of its non-financial reporting, the Executive Board reported on environmental, employee and social aspects, the protection of human rights and fighting corruption and bribery. The report presented was prepared based on the European Sustainability Reporting Standards (ESRS) and reviewed by the Supervisory Board. The Supervisory Board determined that a non-financial report had been submitted and that the legally required aspects had been adequately covered; it approved the report for publication. adesso Group Annual Report 2025 12 The Supervisory Board acknowledged and adopted the audit reports by the auditor on the Annual and Consolidated Financial Statements of adesso SE as at 31 December 2024, together with the Consolidated Management Report - which was combined with the company's Management Report - and adopted the Annual Financial Statements and Consolidated Financial Statements for financial year of 2024. The Annual Financial Statements were thereby approved. The Executive Board proposed a dividend of EUR 0.75 per share for the financial year of 2024, corresponding to a dividend payment of EUR 4.8 million. The Supervisory Board agreed with the proposal. In the area of corporate governance, the Supervisory Board addressed the update of the declaration of compliance and the corporate governance statement. This included, among other things, adjusting the minimum number of independent Supervisory Board members from four to three, and making corresponding changes to the Supervisory Board's skills and expertise profile. The rules of procedure of the Board of Directors, including the responsibility schedule, were revised. Adjustments were also made to the existing option programmes and to the new conditional capital resolved in 2024. The related share option programme 2024/25 was approved. The Supervisory Board's report for the 2024 financial year was adopted, and the agenda items for the 2025 Annual General Meeting were approved. It was agreed that the Annual General Meeting in the 2025 financial year would be held as a virtual event. At the meeting on 3 June 2025, the CFO presented the key figures from the Q1/2025 quarterly statement to the Supervisory Board. Two focal topics were also addressed: the participation model to strengthen cooperation with the European Forum, and the Pricing Office, including measures to improve daily rates and gross profit, the progress of which is monitored regularly. At the Supervisory Board meeting in September, which Stefanie Kemp attended via video conference, Kristina Gerwert and Prof Dr Volker Gruhn reported on their summer tour of adesso sites in Germany. As part of this tour, they gave presentations on the "New School of AI" and then held discussions to address any questions and topics. The main themes were AI and productivity gains, leadership culture, salary, communication, junior staff, business-related topics, and the shortage of skilled workers. In October, an extraordinary Supervisory Board meeting was held, attended exclusively online. The possibility of selling treasury shares to an institutional investor was discussed at this meeting. This possibility was subsequently abandoned owing to the share price performance in the final quarter. At the December meeting, which Stefanie Kemp again attended via video conference, the CFO presented cost-saving measures at adesso SE. Mark Lohweber reported on incoming orders, which were assessed as comparatively strong in the automotive and manufacturing industries and were particularly influenced by negotiations with a major customer. The 2026 package of measures, support for focus customers, sales training, and the refocusing of corporate account management were presented. The Supervisory Board of adesso SE also considered the Executive Board remuneration system, its framework parameters, and possible areas for further development. It approved the tranche of share options relevant to the Executive Board remuneration system for 2026. The CFO discussed the adesso Group's results after the first nine months of the 2025 financial year. EBITDA increased at a faster rate than sales growth. Improvements were also achieved within the Statement of Financial Position, particularly in working capital. The CFO also presented the preliminary planning for 2026. Both the bottom-up planning and the more cautious top-down planning assumed a significant increase in sales and earnings. Cost-cutting measures were already taken into account. Based on the planned development, compliance with the covenants was considered achievable. The participants also reviewed the current corporate governance situation as a further agenda item. An updated declaration of compliance with the German Corporate Governance Code was adopted. All meetings involved the CFO explaining the business situation and the consolidated financial statements for the respective quarter, providing information on the current capital market outlook and giving updates on investor relations. adesso Group Annual Report 2025 13 Constitution of the Supervisory Board The Supervisory Board of adesso SE was newly elected at the Annual General Meeting on 3 June 2025. Hermann Kögler and Dr Friedrich Wöbking did not stand for re-election. They were succeeded on the Supervisory Board by Michael Kenfenheuer and Christoph Junge. The Supervisory Board would like to thank Hermann Kögler and Dr Friedrich Wöbking for their many years of commitment, their valuable work, and their constructive contribution to the development of the company. Prof Dr Volker Gruhn was unanimously elected Chairman of the Supervisory Board, and Rainer Rudolf was elected Deputy Chairman. The members of the Audit Committee were then elected. Christoph Junge was unanimously elected Chairperson and Rainer Rudolf as a further member. Finally, the members of the Nomination Committee were unanimously elected. Prof Dr Volker Gruhn was appointed as Chairperson and Rainer Rudolf as a further member. COMMITTEES The Audit Committee of adesso SE met quarterly during the 2025 reporting year. Its discussions focused on customer receivables and, in particular, on the problem of overdue receivables at some Group companies EXECUTIVE BOARD The Supervisory Board of adesso SE appointed Michael Knopp to the Executive Board of adesso SE with effect from 15 January 2025. His contract initially runs until 14 January 2028. He succeeds Jörg Schroeder as a member of the Executive Board; Schroeder's Executive Board contract expired on 30 April 2025. The Supervisory Board would like to take this opportunity to thank Jörg Schroeder once again for his valuable work and commitment during his time on the Executive Board. His leadership and expertise have significantly shaped the company. We wish him all the best for the future. 2025 ANNUAL REPORT BDO AG Wirtschaftsprüfungsgesellschaft, Dortmund, the auditor elected by the Annual Shareholders' Meeting, has audited the annual financial statements and the consolidated management report of adesso SE and the Group for financial year 2025 and has issued an unqualified audit opinion. As the responsible auditor from BDO AG Wirtschaftsprüfungsgesellschaft, Andreas Dirks explained the key findings of the audit and was available to answer questions from the Supervisory Board. He informed the Supervisory Board about the services performed by the auditing company in addition to the audit. In addition, the auditor has formally audited the remuneration report, found the content to be complete and also prepared a report on it. The Supervisory Board examined in detail the annual and consolidated financial statements along with the combined management report of adesso SE and the Group as at 31 December 2025 along with the proposal by the Executive Board concerning the appropriation of profits. As part of its examination, the Supervisory Board also reviewed the content of the separate consolidated non-financial report submitted by the Executive Board for adesso SE as required by Section 171 AktG and the Group as required by Sections 289b and 315b HGB. This report was prepared based on the European Sustainability Reporting Standards (ESRS). The Supervisory Board decided that reporting of the non-financial information was legitimate, correct and appropriate. The Supervisory Board has acknowledged the reports on the audit of the financial statements and has taken into account the Audit Committee's assessment of the quality of the audit. The Supervisory Board has agreed with the findings of the audit of the annual financial statements and the consolidated management report of adesso SE and the Group by the auditor and has approved the annual financial statements and consolidated financial statements for financial year 2025. The annual financial statements have, therefore, been approved (Section 172 of the German Stock Corporation Act (AktG). The Supervisory Board concurs with the Executive Board's proposed appropriation of profits. adesso Group Annual Report 2025 14 ACKNOWLEDGEMENTS The Supervisory Board would like to express its sincere thanks to all employees, the Executive Board, and all other contributors for their dedicated cooperation. Their commitment makes a key contribution to the company's success. Dortmund, 19 March 2026 On behalf of the Supervisory Board Prof. Dr. Volker Gruhn, Chairperson Presence of Supervisory Board members in Supervisory Board and committee meetings of adesso SE in 2025 until 3 June 2025 Supervisory Board members Supervisory Board Meeting attendance Participation rate of the Supervisory Board Audit Committee Meeting attendance Nomination Committee Meeting Attendance Prof. Dr. Volker Gruhn 1/1 100% 1/1 Stefanie Kemp 1/1 100% Hermann Kögler 1/1 100% 1/1 Rainer Rudolf 1/1 100% 1/1 1/1 Dr. Friedrich Wöbking 1/1 100% Michael Zorc 1/1 100% since 3 June 2025 Supervisory Board members Supervisory Board Participation rate of the Audit Committee Nomination Committee Meeting attendance Supervisory Board Meeting attendance Meeting Attendance Prof. Dr. Volker Gruhn 3/3 100% 0/0 Christoph Junge 3/3 100% 3/3 Stefanie Kemp 3/3 100% Michael Kenfenheuer 2/3 67% Rainer Rudolf 3/3 100% 3/3 0/0 Michael Zorc 3/3 100% adesso Group Annual Report 2025 15 ‌HIGHLIGHTS 2025 JANUARY Award-winning: adesso named a Top Employer 2025 in Germany for the first time adesso has been recognized by the Top Employers Institute as a "Top Employer 2025 in Germany," placing it among the best employers in the IT sector. The company's core strategy is "Grow Together," fostering the growth of both entry-level and experienced professionals through collaborative projects, teamwork, and excellent professional development. The structured onboarding process, including preboarding, welcome days, and a culture code, as well as the modern work environment with offices designed as meeting places, were particularly praised. This certification validates the chosen path and provides valuable feedback for further improvements. FEBRUARY adesso orange becomes adesso business consulting adesso orange AG is now operating as adesso business consulting AG, thereby sharpening its profile as a leading SAP consulting firm. With the rebranding and adesso's increase of its stake to 100 percent at the beginning of January, the company strengthens its market position and aligns its branding clearly with the adesso group brand. As an internationally active consulting firm specializing in process, management, and IT consulting within the SAP environment, adesso business consulting remains committed to its full-service approach and high quality standards. adesso migrates the ERP system of the amedes group to SAP S/4HANA adesso is migrating the existing SAP R/3 ERP system of the amedes Group to RISE with SAP S/4HANA Cloud Private Edition. The project is being implemented by a joint team from the adesso Life Sciences business unit and adesso business consulting. Go-live for all companies is planned for early 2026. March adesso Services x Ticketing solution EVENTIM.Tixx adesso and CTS EVENTIM are launching a technology partnership, under which adesso will offer services and insights for the EVENTIM.Tixx ticketing solution. The adesso Sports Platform will be available to clubs and event organizers as an optimal partner solution within the EVENTIM.Tixx Product Suite, while selected EVENTIM.Tixx functionalities will be integrated into the adesso Sports Platform app. Sports organizations will benefit from more efficient processes, new monetization options, and a data-driven fan experience throughout the entire customer journey. APRIL Keyring Network relies on adesso's nearshore delivery expertise Since April 2025, adesso has been supporting the British blockchain startup Keyring Network with nearshore delivery services in quality assurance, test management, and product responsibility. A team in Austria handles project work and management, while adesso UK provides local customer support. This allows Keyring Network to focus on its core business in the dynamic stablecoin market and benefit from a scalable global delivery model. MAY adesso is a Solution Partner of Atlassian adesso has become an official Silver Solution Partner in the Atlassian Partner Program and supports customers with Jira, Confluence, Jira Service Management, Bitbucket, and the entire Atlassian portfolio for cloud and data center solutions. With a dedicated Atlassian consulting team, adesso provides comprehensive support to companies - from consulting and implementation to customization and training, all the way to operational management and the integration of suitable Marketplace apps. JUNE Expansion into Belgium adesso is expanding its presence in the Benelux region and has established a subsidiary in Belgium, based in Brussels, effective June 1, 2025. Proximity to EU institutions is intended to strengthen cooperation with public sector clients at the EU level. The subsidiary will initially focus on financial services and the public sector. Largest IT service provider from Germany: Lünendonk List 2025 In the Lünendonk list for "IT Consulting and System Integration" 2025, adesso is for the first time the largest originally German IT service provider and achieves fourth place overall. The above-average revenue growth demonstrates that adesso can grow sustainably and profitably even in a challenging market environment. adesso Group Annual Report 2025 16 JULY adesso receives SAP certifications for Operations Partners As part of the SAP Operations Partner program, adesso has received four key SAP certifications - including those for SAP S/4HANA, SAP SuccessFactors, and SAP BTP. These awards confirm adesso's comprehensive expertise in the high-quality operation of SAP solutions and underscore its commitment to further expanding its SAP portfolio in the areas of Managed Services and Application Management Services, supporting customers from transformation to ongoing operations. SEPTEMBER adesso and Abacus are transforming lottery sales in retail. adesso and Abacus Solutions International are joining forces to revamp lottery sales in North American retail. At the heart of the partnership is the combination of the adesso lottery tablet with the Abacus Fusion Platform as a highly secure transaction gateway. This allows lottery processes to be seamlessly integrated into existing retail infrastructures -from sales to ticket validation - without any additional development effort for lotteries or retailers. adesso renews the portal architecture of the AOK adesso is supporting AOK as a strategic partner in building a shared, future-proof portal architecture for all central front-end applications. The new platform forms the basis for a high-performance, interoperable digital ecosystem that enables rapid time-to-market, seamless system integration, and maximum future-proofing. In a major project initially planned for four years with a volume of up to €20 million, a scalable, modularly expandable architecture and a central design system are being developed. These will simplify processes, reduce development costs, and ensure a consistent digital customer experience across all AOK entities. OCTOBER National subsidiary in Singapore adesso is expanding its international presence and opening a subsidiary in Singapore. The location will serve as a strategic hub for the Asia-Pacific market and will initially focus on financial services, insurance, and retail. As a specialized integration partner of Flowable, adesso is systematically building local expertise in Singapore and working closely with the delivery team in India to offer customers in Asia local proximity and scalable implementation. adesso launches GenAI offering br.AI.n adesso has developed br.AI.n (business ready AI now), a GenAI platform that offers companies secure, scalable, and rapidly deployable AI solutions. Templates for common use cases, over 100 immediately usable modules, and compatibility with common Large Language Models shorten development cycles and make complex processes explainable and automatable. br.AI.n will be distributed in the future by its wholly-owned subsidiary, br.AI.n solutions GmbH. Fifth time in a row: BigData Insider Award 2025 adesso has won the BigData-Insider Award in Platinum for the fifth consecutive time. In the "Big Data Consulting" category, adesso once again took first place, underscoring its continuous excellence in data and analytics, particularly in the areas of data-driven business models and modern data platforms. NOVEMBER adesso awarded the TOTAL E-QUALITY seal for the second time The award covers the years 2025 to 2027 and recognizes the strategic, holistic approach to promoting equal opportunities and diversity. The focus is on measures related to work-life balance, staff development, diversity promotion, and a discrimination-free, fair working environment. DECEMBER License profits in the fourth quarter At the end of the year, further license revenues from the insurance product business in the high single-digit million euro range were recorded. adesso Group Annual Report 2025 17 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service ‌Bringing balance to a digital future on your own initiative Global changes require a rethink of IT strategies Digital transformation is undergoing a structural shift. While efficiency, scalability and time-to-market have been at the centre of many IT decisions in recent years, additional dimensions are now gaining importance. Geopolitical uncertainties, regulatory requirements and growing dependencies on individual technology providers are compelling companies and public institutions to reassess their digital strategies. The concept of digital sovereignty has established itself as a central framework within this context. adesso does not see digital sovereignty as a departure from globally proven technologies. Rather, it describes the ability to make technological decisions in a self-determined, informed and flexible way, while taking account of economic, legal and organisational aspects. For adesso, digital sovereignty is not a political buzzword, but a strategic principle for supporting long-term value creation. Those who wish to make sovereign IT decisions in a globalised world must neither isolate themselves nor become dependent. Finding the right balance requires expertise and a keen instinct. adesso Group Annual Report 2025 18 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Sovereignty ensures a dynamic balance between risk, investment requirements, control and performance. Sovereignty: a design principle of modern IT architectures When it comes to practical implementation, digital sovereignty cannot be a static state. It arises from conscious management and architectural decisions and must be continuously developed. Organisations face the task of ensuring control over data, identities, access and compliance without sacrificing the innovation potential of modern platforms. As a result, hybrid and modular IT landscapes are increasingly gaining ground. Public cloud services from global hyperscalers are combined with private cloud approaches, European cloud providers and open-source technologies (see also our article on cloud strategies from page 22). This requires far more than simply selecting individual providers. The guiding principle is the ability to counteract dependencies and maintain alternatives where necessary. Sovereignty thus becomes a dynamic balance between risk, investment requirements, control and performance. Changing framework conditions increase strategic relevance The growing importance of digital sovereignty is closely linked to global economic and geopolitical developments. Increasing trade and technology conflicts, compounded by territorial claims and acts of war, have jeopardised trust in partnerships and longstanding alliances. A significantly more fragmented global economy necessitates a sharpening of awareness regarding digital vulnerabilities. At the same time, companies in Europe face complex regulatory requirements, including in data protection, IT security and critical infrastructure. These requirements form the foundation for transparent and controllable IT structures. Digital infrastructure is thus increasingly seen as a strategic production factor. The European Union is supporting this development through initiatives such as the EU Data Act and cross-sectoral cloud and data room concepts. For companies, this means that digital sovereignty is not just a risk issue, but also a competitive advantage promoting long-term resilience and investment security. adesso Group Annual Report 2025 19 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service with 95 % of its revenue generated in Germany, Switzerland and Austria, adesso is the largest German IT service provider and the first point of contact for digital sovereignty issues. There is no way around cloud solutions in the age of AI. Nevertheless, it is worth aligning your own goals with the solutions available on the market so that you can continue to focus on your business in the long term. Opportunities for customers and the adesso Group For adesso's client companies, a sovereign IT approach opens up new scope for action. Freedom to choose between technologies and providers enables targeted use of innovation, cost control and efficient compliance with regulatory requirements. Analysis such as the Digital Sovereignty Index shows that decision makers are increasingly recognising this added value and are willing to invest in appropriate solutions (more on the Digital Sovereignty Index from page 34). Thanks to its broad positioning, adesso is able to support customers on this path. For instance, adesso maintains a large number of technology partnerships and holds top-level certifications, while always acting in a vendor-neutral way. Based on extensive experience with leading global cloud platforms, European alternatives and open source approaches, this technological breadth allows us to develop customised target architectures that combine innovation and sovereignty. adesso Group Annual Report 2025 20 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Increasing demand for sovereign IT architectures strengthens adesso's consulting services, increases strategic integration in the customer context and underscores the sustainability of customer relationships. Market position offers leverage for sustainable profitable growth adesso has a strong market position in German-speaking countries. Despite increasing internationalisation, around 95 per cent of revenue continues to be generated with customers in Germany, Austria and Switzerland. adesso has extensive industry and process knowledge, particularly in the public sector and regulated industries. adesso's expertise is also in high demand in the defence sector. According to Lünendonk market research ('Leading IT consulting and system integration companies in Germany'), adesso has further expanded its market share in Germany and is listed as the largest German IT service provider for the first time in the 2025 publication. Even though the three global IT players - Accenture, Capgemini and IBM - continue to report higher revenues in Germany, adesso's positioning is likely to prove significant, especially in the context of digital sovereignty and particularly for more sensitive projects. Many German and European customers attach great importance to proximity, regulatory understanding and long-term partnerships. adesso combines these needs with technological excellence and international scalability, and sees its own penetration of the market as a responsibility, with the aim of achieving digital sovereignty for customers. Significance for longterm value creation For adesso, digital sovereignty is directly relevant to the long-term development of the company. The increasing demand for sovereign IT architectures strengthens the intensity of consulting, increases strategic integration in the customer context and supports lasting customer relationships. At the same time, adesso addresses key societal concerns such as data protection, security and digital resilience. This development is also important from a capital market perspective. Digital sovereignty can act as a structural growth driver in Europe and favours providers that combine technological diversity, industry expertise and regulatory understanding. adesso is uniquely positioned to benefit from this trend over the long term. Digital sovereignty represents a mature understanding of digital transformation. It does not mean doing without, but rather conscious freedom of choice and long-term control. For adesso, it is an expression of our strategic aspiration to combine technological excellence with economic prudence and social responsibility. In an increasingly complex environment, this skill is becoming a key differentiating factor for customers and investors alike. adesso Group Annual Report 2025 21 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Hyperscalers and European alternatives -building bridges, not gaps Today, digital sovereignty cannot be achieved by doing without global cloud providers. Instead, it is achieved through smart combinations. European companies face the challenge of meeting innovation, scaling and regulatory requirements all at the same time. In doing so, it is apparent that hyperscalers and European cloud providers are not mutually exclusive but form the building blocks of a shared model. adesso Group AGensncuhaälfRtsebpeorritch2t020525 22 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Foreign authorities potentially accessing data held by European companies is a legitimate risk that can be mitigated. Global hyperscalers deliver technological depth, speed and an innovation ecosystem that is difficult to replicate in Europe. For their part, European providers create legal clarity, control and trust. The key question is not, therefore, which provider is the right one, but how different cloud models can be meaningfully combined. Against the backdrop of the US CLOUD Act, this question is even more pertinent. Access by foreign authorities to data held by European companies is a legitimate risk - and one that providers are currently addressing in very different ways. While hyperscalers establish technical and organisational safeguards, European platforms prioritise legal autonomy. Both are valid responses to the same challenge. adesso supports companies in weighing up the options: Which workloads belong where? Where are hyperscalers the right choice, and where would European alternatives be more suitable? And how can both worlds be combined into a consistent, controllable cloud architecture? Cloud providers significantly expanding infrastructure in Germany Amazon Web Services is investing around EUR 7.8 billion in a European Sovereign Cloud with a site in Brandenburg. Google is planning to spend around €5.5 billion on AI and cloud infrastructure by 2029 and has opened an AI centre in Berlin. Microsoft is investing around EUR 3.2 billion in a new data centre in the Rhineland region. European providers such as Schwarz Digits are also planning investments of around EUR 11 billion. Why are they doing this? Germany is one of the largest IT markets in Europe, with high demand from industry, healthcare and the public sector. In addition, it is subject to strict regulatory needs, which serve as a benchmark for the European market. Digital sovereignty is playing an increasingly important role in location and investment decisions. When considered at a global level, these sums remain part of a significantly larger investment volume by providers. Expansion increases available capacity and strengthens local infrastructure. Aspects such as operator structures, legal frameworks and the range of options remain key factors. EUR 7.8 billion invested by Amazon Web Services in computing capacity in Brandenburg adesso Group Annual Report 2025 23 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Hyperscalers under pressure - but evolving Major hyperscalers have significantly sharpened their focus in recent years. Technical isolation, organisational separation, European operation and external key management: what sounded abstract for a long time has now been translated into concrete architectures. STACKIT: sovereignty through origin STACKIT is a European cloud model that is taking a fundamentally different approach. As part of the Schwarz Group, STACKIT is exclusively subject to European law. As things stand today, the CLOUD Act does not apply here, so additional safeguards are not necessary. STACKIT relies solely on open source and a European partner ecosystem. At the same time, the platform is deliberately leaner than products from global hyperscalers. Its strength lies less in maximum functionality and more in legal clarity. For organisations with particularly high data sovereignty requirements, this is a compelling argument in its favour. Google Cloud is going especially far. In addition to models such as the EU Data Boundary, Google is pursuing radical compartmentalisation with dedicated and air-gapped variants. In these scenarios, Google no longer operates the infrastructure itself - or is fully excluded in technical terms. Google promises that the kinds of access that the CLOUD Act seeks to address no longer exist. This approach shows how seriously this issue is now being taken. Amazon Web Services is pursuing a different, but equally clear path with its European Sovereign Cloud (ESC). The ESC is not a European version of the global cloud, but an independent environment - physically, organisationally and legally separate. Operation and control are in the hands of European companies, while the technological foundation remains identical. For companies, this means familiar AWS services, combined with a significantly reduced legal exposure. Microsoft Azure also relies on a multi-tier model, providing data processing within the EU, restricted access via mechanisms such as Customer Lockbox, external key management and confidential computing. It also operates national cloud models in tandem with European partners. The aim is to achieve sovereignty not through a single lever, but via multiple layers of security and control. All hyperscaler approaches have one thing in common: they are not trying to resolve the CLOUD Act politically, but rather to render it technically and organisationally ineffective. Courts will have to decide the extent to which this also applies to potential legal disputes. Hyperscalers have certainly laid the foundations for reliable cloud offerings from a data protection perspective. EUR 11 billion invested by Schwarz Digits in a data centre in Lübbenau, Brandenburg. AGensncuhaälfRtsebpeorritch2t020525 24 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Sovereignty emerges through orchestration In practice, it is becoming increasingly clear that many companies are choosing not just one cloud, but several. Business-critical core systems, sensitive data and applications subject to exacting regulatory requirements are being deliberately operated in sovereign or European environments. At the same time, organisations are using hyperscalers for innovation, scaling, data analysis or AI. What matters is the architecture, not the provider's brand. The interplay between hyperscalers and European alternatives does not represent a compromise, but a strategic approach. Today, digital sovereignty means being able to consciously decide where which data and applications are operated - and to provide the technical and organisational backing for these decisions. For that reason, adesso does not view digital sovereignty as an either-or decision, but rather as a design challenge. Taking a Vendor-neutral and technology-agnostic approach, and drawing on its deep understanding of both worlds, the company supports customers in developing cloud strategies that are high-performing, compliant and resilient. Digital sovereignty emerges where this interplay proves successful. Digital sovereignty is a long-term strategic issue Besides reducing dependencies and risks, digital sovereignty serves as the basis for well-founded IT decisions. Structured analysis of technologies, data, processes and skills helps companies manage dependencies in a targeted way and results in greater transparency, less shadow IT, lower costs and increased security. adesso Group Annual Report 2025 25 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Digital sovereignty is nothing new. What's new is the urgency. Peter de Lorenzi (58 ) is Head of the IT Management Consulting business area at adesso. With many years of experience and expertise, he ensures that customers can operate business-critical IT infrastructures, platforms and applications securely and reliably. At adesso, he is the leading expert for all matters relating to digital sovereignty. In this interview, he offers a fascinating, personal perspective on the topic. Peter de Lorenzi has a degree in banking and business administration and has been with the adesso Group since 2007. He heads the IT Management Consulting business area and is also responsible for adesso's services related to cloud-based Software-as-a-Service platforms such as ServiceNow. He oversees security consulting and managed services, as well as several subsidiaries. adesso Group Annual Report 2025 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Digital sovereignty isn't a trend; it's an ongoing management responsibility. As Head of a Business Area at adesso, how did you also come to be responsible for digital sovereignty at the company? Digital sovereignty extends to the entire corporate strategy - it's not just about the technology. This requires a holistic view of the organisation, processes and technology Do you believe that digital sovereignty is just a trend, or do you see it as a long-term concern? Digital sovereignty is nothing new. What's new is the urgency. Geopolitical tensions, supply chain crises, cyberattacks and the discussions around extraterritorial access have made it clear that digital dependencies present real business risks. In recent years, many companies have made significant optimisations in terms of efficiency, scaling and speed. Now a second perspective is coming into play: resilience and controllability. For that reason, I don't see this as a trend, but as an ongoing task of structural management. Why is adesso promoting digital sovereignty? Can't every company decide that for itself? Of course every company should decide for itself. But many are currently doing so based on assumptions rather than reliable data. You only have to take a look at our Digital Sovereignty Index. This is the first time that we have systematically surveyed how companies are assessing their dependencies, risks and competencies. It shows that there is often a perception gap between management and the operational level, and between strategic ambitions and technical reality. Can you give some examples of how customers can achieve quantifiable added value through digital sovereignty? Yes. This happens on a number of levels. First of all, risk costs. Reduced dependencies in the IT supply chain significantly lower the potential costs of downtime and reputational damage. Secondly, negotiating power. Companies with alternatives - such as multi-cloud strategies or a clear exit strategy - achieve better terms. Thirdly, time-to-market. Clearly structured governance and defined sovereignty criteria speed up decision-making instead of slowing it down. As you can see, digital sovereignty has a direct impact on efficiency and competitiveness. What's your view on the global hyperscalers? Are their offerings for the European market merely a fig leaf to avoid losing business here? I'm not one for black-and-white thinking, even though that's what you see in much of the debate on LinkedIn or in the media. Global hyperscalers are drivers of innovation. At the same time, they're responding to regulatory requirements and political discussions. The fact that they are creating specific offerings for Europe shows that the market is evolving. The crucial question isn't USA or Europe, but rather which control mechanisms, contract models and technical architectures enable genuine controllability. We're seeing a wide range of models, from isolated sovereignty set-ups to partnerships with European operators. Whether this is sufficient will depend on the specific application. adesso Group Annual Report 2025 27 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service The current situation is like walking a tightrope. Companies operating in highly regulated markets or with a global presence are particularly feeling the pressure. Many know that they need to act, but they're unsure where to begin. >60% of companies currently rely on non-European providers for cloud, software and artificial intelligence. Why do you think adesso is the right partner for (re)establishing digital sovereignty? Because we consider technology, regulation and business models in the round. Digital sovereignty isn't a project of infrastructure, but one of transformation, encompassing architecture, governance, competencies and organisational structure. We have in-depth industry knowledge and work with all the relevant cloud and software providers. so we can offer technology-neutral advice. At the same time, we have developed a structured approach with our sovereignty toolkit and index. Isn't the risk of diminishing innovation in the competitive landscape greater than the benefit of digital sovereignty if I modify systems or even make them technologically separate? The risk exists - if sovereignty is misinterpreted. Those who confuse sovereignty with isolation will be at a disadvantage when it comes to innovation. Those who understand sovereignty as an architectural principle, including through modular systems, open interfaces and exit capabilities, will strengthen their ability to innovate. Sovereignty and innovation are also not opposites. Sovereignty creates the foundation for scaling innovation in a controlled way. Sensitive data remains in safe hands. There are now also European initiatives and providers. Which approach do you think is the most promising, and why? Hybrid approaches are the most promising. Purely European solutions can make sense in sensitive areas. At the same time, companies benefit from the global innovation dynamics of US hyperscalers. In my view, the future lies in clearly defined sovereignty zones: Which workloads are highly critical? Where are global platforms non-critical? Which data requires special protection? It's about architectural decisions, not ideological divisions. That's why I'm a big fan of hybrid solutions, rather than going with just one provider. Because then I'm also creating a dependency. adesso Group Annual Report 2025 28 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Do you see responsibility for digital sovereignty as lying primarily with IT partners and software companies, or should the companies alone be in charge? The responsibility clearly lies with the companies. They have to provide the initial, decisive impetus. IT partners can advise, implement and evaluate. But strategic risk assessment is the responsibility of management. At the same time, technology providers bear responsibility for transparent models, open standards and clear contracts. It's about the overall ecosystem. How do you rate the opportunities for adesso regarding our growth path and achievable margins? There are substantial opportunities for us in this area, not as a short-term revenue driver, but as a strategic differentiation factor. Digital sovereignty requires architecture consulting, transformation projects, governance models and the development of competencies. These are highly skilled services that offer considerable added value. This positions adesso even more strongly as a strategic partner at executive board level. Our services strengthen customer loyalty, project volume and long-term margin quality. You recently gave a presentation on digital sovereignty at WirtschaftsWoche's Summit of World Market Leaders. What was your key message, and what reactions did you observe from companies? My key message was actually very simple: digital sovereignty does not begin in IT, but in the boardroom. Many discussions revolve around technology, cloud models or specific providers. But the crucial question is which digital dependencies are we willing to accept, and which are we not. This is a strategic risk assessment, not a purely technical decision. I've heard a lot of agreement, especially from companies that operate in highly regulated markets or have a global presence. In such cases, this issue is being discussed by the C-suite. At the same time, there's a sense of insecurity: many know that they need to act, but they're unsure where to begin. Is digital sovereignty an important issue internationally, or is it primarily a German concern? The former. It's both a European issue and increasingly a global one. Europe, and we in Germany in particular, are discussing it intensively because we have strong international ties and may be more dependent on certain technologies from abroad than other regions. At the same time, we have high regulatory standards. But we are also seeing growing debate about data sovereignty, supply chain resilience and technological independence in Asia, North America and the Middle East. Thank you for the interview. Digital sovereignty requires architecture consulting, transformation projects, governance models and the development of competencies. These are highly skilled services that offer considerable added value. This positions adesso even more strongly as a strategic partner at executive board level. adesso Group Annual Report 2025 Company ⭘ Management Report ⭘ Consolidated financial statement ⭘ Service Embedding digital sovereignty in organisational structures For adesso, digital sovereignty is an integral part of modern digital transformation. It describes the ability of organisations to use digital technologies to secure operational capability, regulatory compliance and technological innovation over the long term. To implement this requirement systematically, adesso has established a four-stage process for strategically assessing, operationalising and embedding lasting digital sovereignty. 1 2 3 Strategy and requirements Digital sovereignty is strategically assessed by identifying relevant requirements in terms of business operations, regulation and risk. Dependencies on technologies, providers and jurisdictions are evaluated, along with organisational capabilities. This results in a prioritised framework for further decisions. Sovereignty assessment A tool-supported inventory systematically identifies levels of sovereignty in technologies, data, processes and organisational structure. The assessment considers the presence of dependencies and their manageability. This results in comparability and a measurable basis for strategic decisions. Actions and roadmap The results of the analysis are translated into actions: gaps are prioritised, target architectures and sourcing models are defined and competencies are developed. A cost-benefit analysis ensures economic viability. This results in an integrated roadmap for digital sovereignty. adesso Group Annual Report 2025 30

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