Semi-annual Financial Statements Asseco Business Solutions Group

Semi-annual Financial Statements

Asseco Business Solutions Group

for the Six Months Ended 30 June 2025

assecobs.pl/inwestor

Contents

Selected financial data of the Asseco Business Solutions Group 5

Interim consolidated profit and loss account and statement of other comprehensive income of the Asseco Business Solutions Group 7

Interim consolidated balance sheet of the Asseco Business Solutions Group 9

Interim consolidated statement of changes in equity of the Asseco Business Solutions Group 11

Interim consolidated statement of cash flows of the Asseco Business Solutions Group 12

Additional explanation to the condensed consolidated interim financial statements 13

1. Basic information 13

2. Basis for the preparation of these condensed consolidated interim financial statements 14

   1. Basis for the preparation 14

   2. Impact of the political and economic situation on the territory of Ukraine on the ABS Group's business 15

   3. Statement of compliance 15

   4. Functional currency and presentation currency 15

   5. Estimates and professional judgement 16

   6. Changes in accounting rules used 16

   7. New standards and interpretations that have been published and not yet in force 17

   8. Accounting policy 17

      1. Operating revenues 17

      2. Operating expenses 20

      3. Financial revenues and expenses 20

      4. Tax on profit or loss 21

      5. Earnings per share 21

      6. Property, plant and equipment 21

      7. Intangible property 21

      8. Right-of-use assets 23

      9. Asset impairment tests 23

      10. Receivables and assets from contracts with customers 24

      11. Prepaid expenses and accrued income 25

      12. Other assets 25

      13. Inventories 26

      14. Cash and deposits 26

      15. Social assets and liabilities to the Company Social Benefit Fund 26

      16. Bank loans 26

      17. Lease liabilities 27

      18. Trade and other liabilities 28

      19. Liabilities from contracts with customers 29

      20. Provisions 29

      21. Accruals and deferrals 29

      22. Off-balance sheet liabilities 30

      23. Organization and changes to the structure of the Asseco Business Solutions Group, including units subject to consolidation 31

   9. Estimates 31

      1. Operating revenues 31

      2. Tax on profit or loss 31

      3. Property, plant and equipment 32

      4. Intangible property 32

      5. Right-of-use assets 33

      6. Asset impairment tests 33

      7. Receivables and assets from contracts with customers 34

      8. Lease liabilities 34

      9. Liabilities from contracts with customers 34

      10. Provisions 34

      11. Accruals and deferrals 34

3. Organization and changes to the structure of the Asseco Business Solutions Group, including units subject to consolidation 35

4. Information on operating segments 35

5. Explanatory notes to the condensed consolidated interim financial statements 38

   1. Explanatory notes to the consolidated profit and loss account and statement of other comprehensive income 38

      1. Structure of operating revenues 38

      2. Structure of operating expenses 39

      3. Financial revenues and expenses 41

      4. Tax on profit or loss 42

      5. Earnings per share 43

      6. Information on dividends paid 43

   2. Notes to the balance sheet 45

      1. Property, plant and equipment 45

      2. Intangible property 45

      3. Right-of-use assets 48

      4. Inventories 49

      5. Other assets 49

      6. Prepayments 50

      7. Receivables and assets from contracts with customers 50

      8. Cash and deposits 51

      9. Own shares 51

      10. Bank loans 52

      11. Lease liabilities 52

      12. Liabilities under contracts with customers; trade liabilities and other liabilities 53

      13. Provisions 55

      14. Accruals and deferrals 55

      15. Related party transactions 56

   3. Other explanatory notes 58

      1. Additional explanations to the consolidated cash flow statement 58

      2. Contingent liabilities 58

      3. Headcount 59

      4. Seasonality and cyclicality 59

      5. Significant events after the balance sheet date 59

      6. Significant events concerning previous years 59

      7. Signatures of Management Board Members 60

‌Selected financial data of the Asseco Business Solutions Group

The table below contains selected financial data of the Asseco Business Solutions Group

Selected financial data presented in these condensed consolidated interim financial statements has been converted into the EURO as follows:

• the ABS Group's cash position at the end of the current reporting period and at the end of the comparable period is translated at the average exchange rate announced by the National Bank of Poland on the balance sheet date,

• on 30 June 2025, 1 EUR = 4.2419 PLN,

• on 31 December 2024, 1 EUR = PLN 4.2730,

• selected items from the semi-annual condensed statement of comprehensive income and the semi-annual condensed statement of cash flows are translated at the exchange rate being the arithmetic average of the average exchange rates announced by the National Bank of Poland on the last day of each month,

• in the period from 1 January to 30 June 2025: EUR 1 = PLN 4,2208,

• in the period from 1 January to 30 June 2024: EUR 1 = PLN 4,3109.

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

Condensed Consolidated Interim Financial Statements

for the Six Months Ended 30 June 2025

prepared in accordance with IAS 34 Interim Financial Reporting approved by the EU

‌Interim consolidated profit and loss account and statement of other comprehensive income of the Asseco Business Solutions Group

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

Non-controlling shareholders (26) (26) - -

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

8

‌Interim consolidated balance sheet of the Asseco Business Solutions Group

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

9

Condensed interim balance sheet, cont.

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

10

‌Interim consolidated statement of changes in equity of the Asseco Business Solutions Group

Profit in reporting period - - - 50,750 50,750 (26) 50,724

Dividend for 2024 1.6 - - - (108,905) (108,905) - (108,905)

Acquisition of a subsidiary 2.2 - - - - - 1,368 1,368

Transactions with employees settled through equity instruments

1.2 - - 11,043 (3,588) 7,455 - 7,455

As at 30 June 2025

(unaudited)

167,091

62,543

(25,106)

129,899

334,427

1,342

335,769

As at 1 January 2024 167,091 62,543 - 149,626 379,260 - 379,260

Profit in reporting period - - - 47,126 47,126 - 47,126 Dividend for 2023 1.6 - - - (86,887) (86,887) - (86,887)

Other adjustments - - - (8) (8) - (8)

As at 30 June 2024

(unaudited)

167,091

62,543

-

109,857

339,491

-

339,491

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

11

‌Interim consolidated statement of cash flows of the Asseco Business Solutions Group

Paid tax on profit or loss (3,437) (7,832)

Receipts from obtained loans 24,171 -

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

‌Additional explanation to the condensed consolidated interim financial statements

1. ‌Basic information

   Grupa Kapitałowa Asseco Business Solutions - The Asseco Business Solutions Group ("ABS Group") is a capital group having Asseco Business Solutions S.A. as the parent ("Parent," "Issuer," "Company"). The ABS Group consists of Asseco Business Solutions S.A. and Tax Order Sp. z o.o.

   On 15 January 2025, Asseco Business Solutions S.A. joined and acquired 60% of shares in Tax Order Sp. z o.o., seated in Białystok. The purchase price was PLN 2,700 thousand paid in cash. Under the provisional accounting for the acquisition, the ABS Group recognised PLN 648 thousand as goodwill, representing the excess of the consideration transferred over the fair value of the net assets acquired. Tax Order Sp. z o.o. has been consolidated as from 27 March 2025, following the registration of the share acquisition in the National Court Register.

   Basic information about the Company

Name Asseco Business Solutions S.A.

Registered office ul. Konrada Wallenroda 4c, 20-607 Lublin

KRS 0000028257

Business ID REGON: 017293003

TIN/NIP 522-26-12-717

Core economic activity Information technology

Asseco Business Solutions S.A. ("Company," "Issuer," "Asseco BS") was established under a Notarial Deed dated 18 May 2001. The Company was established for an indefinite period of time.

The ABS Group is part of the international Asseco Group, a Europe-leading vendor of proprietary software. The Group is a constellation of enterprises engaged in the advancement of information technology and is present in 65 countries around the world, including most European countries and the USA, Canada, Israel, and Japan.

The comprehensive offering of the Asseco Business Solutions Group includes ERP systems that support business processes in SMEs, a suite of applications for small-company management, programs optimizing the HR area, mobile SFA applications for the mobile workforce marketed Europe-wide, data exchange platforms, and programs handling factoring transactions.

The Asseco Business Solutions Group operates two own Data Centres whose capacity parameters meet the highest standards of security, reliability and effectiveness of systems operation. All products designed by the Asseco Business Solutions Group are based on the knowledge and expertise of experienced

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025

professionals, a proven project methodology and the use of tomorrow's information technology tools. With the high quality products and related services, the software from the ABS Group has been successful in supporting the operations of tens of thousands of companies. The Company's track record covers dozens of completed software deployments in Poland and in most European countries.

The direct parent of Asseco Business Solutions S.A. is Asseco Enterprise Solutions a.s., headquartered in Bratislava, Slovakia, which holds 46.47% of the Company's shares. The parent of the entire Group is Asseco Poland S.A. which holds indirectly through subsidiaries 95.12% of shares in Asseco Enterprise Solutions a.s.

As regards Asseco Business Solutions S.A., the decision of maintaining control over the six months ended 30 June 2025 in accordance with IFRS 10 was based on the following factors:

• decisions at the General Meeting are taken by a simple majority of votes present at the meeting;

• the Company's shareholding is dispersed and, apart from Asseco Enterprise Solutions a.s. (a subsidiary of Asseco Poland S.A.), there are only two shareholders holding more than 5% of votes at the General Meeting; the largest shareholder holds 11.94% of votes, while the third largest one 10.06% of votes;

• there is no evidence that there is or was any agreement by or among any of the shareholders as to the joint voting at the General Meeting;

• within the last five years, i.e. from 2021 to 2025, the percentage of shareholders present at the General Meetings ranged from 69.36% to 76.36%. This means that shareholders' activity is relatively low or moderate. Considering that Asseco Enterprise Solutions a.s. currently holds 47.05% of the total number of votes at the General Meeting, the attendance would have to exceed 94.11% for Asseco Enterprise Solutions a.s. not to have the absolute majority of vote at the General Meeting. In the opinion of the Management Board, such a level of attendance is highly unlikely.

Given the above, in the opinion of Asseco Business Solutions S.A., despite the lack of an absolute majority in the share capital of the Company, Asseco Enterprise Solutions a.s. controls the Company within the meaning of IFRS 10.

1. ‌ Basis for the preparation of these condensed consolidated interim financial statements

   1. ‌Basis for the preparation

      These condensed consolidated interim financial statements have been prepared in accordance with the historical cost accounting model, except for financial assets measured at fair value through profit or loss or through other comprehensive income, financial liabilities measured at fair value through profit or loss.

      These condensed consolidated interim financial statements have been prepared on the understanding that the ABS Group intends to continue as a going concern for the period of no less than 12 months as of 30 June 2025. At the date of approval of these interim financial statements, no fact or circumstances were identified that might pose a threat to the ABS Group as a going concern.

      These condensed consolidated interim financial statements do not include all information and disclosures required in annual financial statements and should be read in conjunction with the financial statements of Asseco Business Solutions S.A. made public on 3 March 2025.

      Asseco Business Solutions Group

      Semi-annual Financial Statements for the Six Months Ended 30 June 2025

   2. ‌Impact of the political and economic situation on the territory of Ukraine on the ABS Group's business

      At the time of publication of these condensed consolidated interim financial statements, the ABS Group did not report any significant impact of the war in Ukraine and sanctions imposed against Russia its operations. The ABS Group does not conduct any significant business operation in Russia, Belarus, or Ukraine. The ABS Group does not employ personnel in Ukraine; that is why, the warfare in the territory of Ukraine does not impact it directly. The situation does not affect these financial statements directly, either.

      However, the ABS Group cannot rule out a scenario that in the event of this prolonged uncertain political and economic situation and its negative impact on the domestic and global economy, this may have an adverse effect on the ABS Group's operations or financial results, yet, at this point, it is not possible to determine to what extent or on what scale. Given the circumstances, the ABS Group attempts to lessen the possible negative impact of the situation on future financial results.

      If the Management Board find that the Group's operations need to be adapted to new market conditions, it will take appropriate action.

   3. ‌Statement of compliance

      These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union ("IAS 34").

      The scope of these condensed consolidated interim financial statements as part of the quarterly report is in line with the Regulation of the Minister of Finance of 29 March 2018 on current and periodic information provided by issuers of securities and on the conditions for recognition as equivalent of the information required by the laws of a non-member state (consolidated text: Journal of Laws of 2018, No. 33, item 757) ("Regulation") and covers a reporting period from 1 January to 30 June 2025 and the corresponding period of 1 January to 30 June 2024 for the income statement, cash flow statement, and statement of changes in equity, respectively, as well as the balance sheet as at 30 June 2025 and the comparable data as at 31 December 2024.

      The figures for the quarter from 1 April to 30 June 2025 and the corresponding period in 2024 were calculated as the difference between the cumulative data for the semi-annual period and the data disclosed in the quarterly consolidated financial statements of the ABS Group for the period ended 31 March 2025 and published on 29 April 2025. The condensed interim statement of profit or loss account and the condensed interim statement of other comprehensive income, together with the relevant notes, covering the data for the three-month period ended 30 June 2025 and comparative data for the three-month period ended 30 June 2024, have not been subject to review or audit by a statutory auditor.

      The condensed interim financial results may not reflect the full realizable financial result for the financial year.

   4. ‌Functional currency and presentation currency

      These condensed consolidated interim financial statements are presented in the Polish złoty ("PLN") and all values, unless specified otherwise, are expressed in thousands of PLN. The functional currency of the

      Asseco Business Solutions Group

      Semi-annual Financial Statements for the Six Months Ended 30 June 2025

      ABS Group is also the Polish złoty. Possible differences in the total amount of up to PLN 1 thousand result from adopted roundings.

      Transactions denominated in currencies other than the Polish złoty are translated upon initial recognition into Polish złotys at the rate applicable on the date of transaction.

      As at the balance sheet date:

      • monetary items are translated using the closing rate, i.e. the average exchange rate for the currency announced by the National Bank of Poland on this day,

      • non-cash items measured at historical cost in a foreign currency are translated using the exchange rate on the date of the original transaction,

      • non-cash items measured at fair value in a foreign currency are translated using the exchange rate on the date of determining the fair value.

        For the purpose of the balance sheet valuation, the following EUR and USD rates were adopted (and parallel rates for other currencies quoted by the National Bank of Poland):

      • exchange rate effective on 30 June 2025, 1 EUR = 4.2419 PLN

      • exchange rate effective on 30 June 2024, 1 EUR = 4.3130 PLN

      • exchange rate effective on 30 June 2025, 1 USD = 3.6164 PLN

      • exchange rate effective on 30 June 2024, 1 USD = 4.0320 PLN

   5. ‌Estimates and professional judgement

      The preparation of consolidated financial statements in concert with the International Financial Reporting Standards ("IFRS") requires estimates and assumptions that affect the amounts indicated in the financial statements. Although the estimates and assumptions are based on the Group's management's best knowledge of the current activities and events, the actual results may differ materially from those projected.

      Item 9 Estimates of the explanatory notes shows the main areas which were of crucial importance in terms of the professional judgement of the management in the process of application of the accounting rules (policies), in addition to the accounting estimates; thus, any change in estimates in these areas could have a significant impact on the ABS Group's results in the future.

      In the six months ended 30 June 2025, there were no major changes to the method of making estimates disclosed in these financial statements and shown in Item 8 Accounting policy.

   6. ‌Changes in accounting rules used

      An overview of the principal accounting rules applied by the ABS Group is contained in Item 8 Accounting policy.

      The accounting rules (policies) used to prepare these condensed consolidated interim financial statements are consistent with those applied in preparing the Parent's financial statements for the year ended day 31 December 2024.

      New standards or changes effective from 1 January 2025:

      Asseco Business Solutions Group

      Semi-annual Financial Statements for the Six Months Ended 30 June 2025

      • Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (published on 15 October 2023) - applicable to annual periods beginning on or after 1 January 2025.

      The amended standards and interpretations applicable for the first time in 2025 do not have a significant impact on the ABS Group's condensed consolidated interim financial statements.

   7. ‌New standards and interpretations that have been published and not yet in force

      New standards and interpretations issued by the International Accounting Standards Board or the International Financial Reporting Interpretations Committee that have been published and not yet in force:

      • IFRS 18: Presentation and Disclosure in Financial Statements (published on 9 May 2024) - not approved by the EU until the date of approval of these financial statements - applicable to annual periods beginning on or after 1 January 2027;

      • IFRS 19: Subsidiaries without Public Accountability: Disclosures (published on 9 May 2024) - not approved by the EU until the date of approval of these financial statements - applicable to annual periods beginning on or after 1 January 2027;

      • Amendments to IFRS 9 and IFRIS 7: Contracts Referencing Nature-dependent Electricity (published on 18 December 2024) - applicable to annual periods beginning on or after 1 January 2026;

      • Amendments to IFRS 9 and IFRIS 7: Amendments to the Classification and Measurement of Financial Instruments (published on 30 May 2024) - applicable to annual periods beginning on or after 1 January 2026;

      • Annual Improvements, Volume 11 (published on 18 October 2024) - applicable to annual periods beginning on or after 1 January 2026.

      The effective dates are based on the standards published by the Financial Reporting Council. The dates of application in the European Union may differ from the dates of application resulting from the content of the standards and are announced at the time of EU's approval for application.

      The ABS Group is currently analysing how the introduction of these standards and interpretations may influence the financial statements and on the ABS Group's accounting rules (policy).

   8. ‌Accounting policy

      1. ‌Operating revenues

         The ABS Group recognises revenues in the amount of remuneration which, as expected by the ABS Group, is payable in exchange for the transfer of promised goods or services.

         The ABS Group sells licences and broad IT services and distinguishes the following types of revenue sources:

         • receipts from the sale of licences and/or own services,

         • receipts from the sale of licences and/or external services, and

         • receipts from the sale of hardware.

           1. Sale of licence and own services

              Asseco Business Solutions Group

              Semi-annual Financial Statements for the Six Months Ended 30 June 2025

              As part of "Licences and/or own services," revenues from contracts with customers are presented, their object being to provide own software and/or software-related services.

              • Comprehensive IT projects

                As regards this type of revenues, a greater part of them is raised from comprehensive IT projects in which the ABS Group undertakes to provide a fully functional IT system. Such a system is of greatest value to the customer as it is the final product containing own licences and related essential services (e.g. modification or implementation). In practice, in the case of such contracts, the ABS Group is almost always required to provide comprehensive goods or services to its customers. They include the supply of: own licences and/or own modification services and/or own implementation services. This means that the so-called comprehensive IT contracts usually provide for a separate obligation of performance consisting in providing the client with a functional IT system.

                Revenues related to the obligation to provide a fully functional IT system are recognised by the ABS Group in the period in which such a system is developed. Revenues may be recognised during the transfer of control over the provided services/goods, unless, as a result of such operations, assets are created of alternative use and, at the same time, for the entire duration of the contract, the unit enjoys an enforceable right to receive remuneration for its performance. In the opinion of the Management Board, in the case of delivering comprehensive IT projects, their alternative use from the vendor's point of view is excluded because these systems, along with the accompanying implementation services, are of a tailored nature. At the same time, the conducted analysis shows that practically in all cases for contracts concluded by the ABS Group the criterion of having an enforceable right to remuneration for performance throughout the duration of the contract is met. This means that the receipts from sales of comprehensive IT systems in which own licences and own services are sold are recognised according to the degree of progress (a method based on expenditure and percentage of cost progress) in the period when the customer takes control over goods/services sold. A special case is relatively small IT projects shorter that 12 months. The revenues earned from such projects is not considered significant by the Management Board; if so, the revenue is recognised on the basis of the right to invoice.

                • Sale of own licences without significant accompanying services

                  Part of the ABS Group's revenues are revenues from the sale of licenses for proprietary ERP software. If own licences for the software are sold separately, i.e. they do not go with significant modification and/or implementation services, and therefore the sale of own licence is a separate obligation to perform, the ABS Group considers whether the promise to grant a licence is aimed at providing the customer with: the right to access the intellectual property of the unit in the form existing throughout the period of licence validity; or the right to use the intellectual property of the entity in the form existing at the time of granting the licence.

                  The vast majority of own licences sold by the ABS Group separately, and thus constituting a separate obligation to perform, are licences conferring the right to use intellectual property, which means that the revenue from the sale of such licences is recognised once at the moment of transfer of control over the licence to the customer. This means that in the case of own licences sold without significant accompanying services, regardless of the licence period, the moment of recognising revenue is the moment of transfer of control, which, consequently, leads to a one-time recognition of revenue at that moment. However, there are also cases of selling licences that grant the right to access intellectual property. Such licences are, in principle, sold for a definite period of time. In such a case, revenues are recognised in the period in which the ABS Group is obliged to provide software modifications and major updates.

                  Asseco Business Solutions Group

                  Semi-annual Financial Statements for the Six Months Ended 30 June 2025

                • Maintenance services and guarantees

                Within the category of own licences and own services, presented are also the revenues from own maintenance services, including revenues from guarantees. In the opinion of the Management Board, revenues from maintenance services are, in principle, a separate obligation of performance where the customer uses the goods/services as they are supplied to them, which, consequently, leads to the recognition of the relevant revenues on the supplier's side during the period of service provision. In all cases where both the maintenance service and the extended guarantee service are provided simultaneously, the revenue is recognized over time because the customer uses the service as it is supplied.

           2. Sale of licences and external services

              As part of "Licenses and/or external services," presented are the revenues from the sale of external licenses and provision of services which, for technological or legal reasons, must be rendered by subcontractors (hardware and licence maintenance and outsourcing services provided by their vendors)

              . Revenues from the sale of external licences are generally recognised as revenues from the sale of goods, which means that upon transfer of control over the licence, the revenue is recognised on a one-time basis.

           3. Sale of hardware

           In the category of revenues from the sale of hardware, presented are the revenues from contracts with customers for the supply of infrastructure. The revenues in this category are generally recognised upon transfer of control over hardware.

           In the case of contracts covering the provision of services and the provision of equipment, the Group has considered whether such contracts include a lease component (i.e. whether the Group confers the right to control the identified asset for a given period of time in return for payment). The ABS Group has not identified lease components in contracts with customers.

           • Variable pay

             If the remuneration specified in the contract includes a variable amount, the ABS Group estimates the amount of remuneration to which it will be entitled in exchange for the transfer of promised goods or services to the client and includes in the transaction price a part or the entire amount of variable remuneration only to the extent in which there is a high probability of no reversal of a significant part of the amount of previously recognised accumulated revenues when the uncertainty as to the amount of variable remuneration is no more.

             The ABS Group is a party to many contracts that provide for contractual penalties for the non-performance or improper performance of contractual obligations. The expected contractual penalties may, therefore, cause the fixed remuneration provided for in the contract to be subject to changes. When estimating the remuneration payable to the ABS Group under contracts, the ABS Group expected the expected value of payment by taking into account the probability of payment of contractual penalties and other items that could potentially reduce the remuneration. So, this may result in a decrease in the value of revenues as opposed to an increase in the value of provisions and relevant costs, as has been the case so far. In addition to contractual penalties, there are no other significant factors that may affect the amount of remuneration (such as rebates or discounts); however, if identified, they would also affect the amount of revenues recognised in the ABS Group.

           • Allocation of transaction price to obligations of performance

             The ABS Group allocates a transaction price to each obligation of performance (or separate goods or separate services) in an amount that reflects the amount of remuneration which, in accordance with the

             Asseco Business Solutions Group

             Semi-annual Financial Statements for the Six Months Ended 30 June 2025

             ABS Group's expectations, is payable in exchange for the transfer of promised goods or services to the customer.

           • Other practical exceptions applied in the ABS Group

           In justified cases, the ABS Group also applies a practical solution permitted by IFRS 15, namely if the ABS Group has the right to receive remuneration from a customer in the amount directly corresponding to the value of the ABS Group's previous performance for the customer (for example in the case of a service contract under which the unit charges the customer a fixed amount for each hour of the service performed), the ABS Group may recognise revenue in the invoiceable amount.

      2. ‌Operating expenses

         The ABS Group records its expenses by type. However, for the purpose of presentation of profit and loss, the multi-step model is applied.

         ABS Group's employee benefits include:

         1. wages and salaries and social security contributions,

         2. payments for short-term absences (e.g. paid holiday leave or paid sick leave),

         3. withdrawals from income and bonuses,

         4. non-cash benefits for currently employed personnel (e.g. medical care, housing or company cars).

         Own cost of sales includes costs directly related to the purchase of goods sold and preparation of services sold. Costs of sales include commercial costs and marketing costs. Administrative expenses include costs related to the management of the ABS Group and administration costs. The cost of employee benefits includes all forms of ABS Group's benefits offered in return for work performed by employees or for the termination of employment.

         The Cost of Goods Sold is the cost of purchasing goods or services from subcontractors (excluding personnel outsourcing) used to carry out projects. The costs relate to both revenues presented as own revenues (regarding revenues from services rendered by subcontractors, if the use of external resources is authorized by the ABS Group which treats external resources as a substitute for own resources) and external revenues (services that must be provided by external resources - most often software or hardware producers).

         The costs related to the Employee Capital Plans (PPK) are the costs of post-employment benefits in the form of a defined contribution plan and are recognized under Pension benefit costs (the relevant liability is disclosed in budgetary commitments).

      3. ‌Financial revenues and expenses

         Interest income is interest on granted loans, investment in securities held to maturity, bank deposits and other facilities.

         Interest income is recognised in accordance with the effective interest method in the profit and loss account. Upon the sale of investment in traded debt, the ABS Group recognises cumulative profit/loss from valuation in the financial result.

         Interest costs resulting from the financing obtained by the ABS Group and lease liabilities are calculated according to the effective interest rate.

         Exchange gains and losses are presented net (as a surplus of positive over negative or vice versa).

         Asseco Business Solutions Group

         Semi-annual Financial Statements for the Six Months Ended 30 June 2025

      4. ‌Tax on profit or loss

         The ABS Group recognises and measures current and deferred tax assets and liabilities by applying the requirements of IAS 12 Income Tax, taking into account the tax profit/loss, tax base, unsettled tax loss, unused tax reliefs, and tax rates while considering the assessment of uncertainties related to tax settlements.

         Income tax includes current tax and deferred tax. Current income tax is a fixed sum on the basis of tax regulations. It is calculated on taxable profit for a given period and recognised as a liability in the paid amount or as a receivable if the amount already paid for current income tax exceeds the payable amount. Deferred tax assets and liabilities are treated in their entirety as long-term and are not discounted. They are subject to offset if there is a legally enforceable right to offset the recognised amounts.

         Deferred tax assets and deferred tax provisions are calculated using tax rates to be effective at the time of realization of particular asset or release of particular provision, based on tax rates (and tax legislation) legally or practically effective as at the balance sheet date.

      5. ‌Earnings per share

         Basic net profit per share for each period is calculated by dividing the net profit from continuing operations for a given period by the weighted average number of shares in the reporting period.

         Diluted net profit per share for each period is calculated by dividing the net profit from continuing operations for a given period by the total weighted average number of shares in a given reporting period and all potential shares of new issuances.

      6. ‌Property, plant and equipment

         Property, plant and equipment, other than land, are carried at cost less decommitment and impairment loss. Initial cost of property, plant and equipment comprises the acquisition cost plus all costs directly related to their acquisition and adaptation for use. This cost also includes the cost of replacing component parts of machinery and equipment when incurred, if the criteria of their recognition in the value of assets are met. Costs incurred after the date of commissioning of a fixed asset to be used, such as maintenance and repair costs, are charged to profit or loss when incurred.

         Property, plant and equipment at the time of purchase are divided into components which are items of significant value to which a specific period of economic useful life may be assigned. Components are also the cost of overhauls.

         Investment in progress concern the tangible assets in the course of construction or assembly and are disclosed at purchase price or production cost, less any impairment losses. Assets under construction are not subject to depreciation until the end of construction.

         The item of property, plant and equipment may be derecognised from the balance sheet if sold, or if there are no expected economic benefits resulting from its further use. Any gain or loss resulting from the derecognition of the asset from the balance sheet (calculated as the difference between the net sales proceeds and the carrying value of the asset) are recognized in profit or loss for the period in which such derecognition was made.

      7. ‌Intangible property

         Acquired intangible assets

         Asseco Business Solutions Group

         Semi-annual Financial Statements for the Six Months Ended 30 June 2025

         Intangible assets acquired in a separate transaction are recognised at acquisition price. The purchase price of intangible assets acquired in a business combination is equal to their fair value at the date of the combination.

         Goodwill

         Goodwill is an asset representing future economic benefit arising from assets acquired through business combination that cannot be either identified individually or recognised separately. In the consolidated financial statements, goodwill represents the value arising from the acquisition of control over business entities. This value was initially calculated as the excess of the price paid over the acquired identifiable net assets.

         Internally generated intangible assets

         In separate categories, the ABS Group presents the end products of development projects ("internally generated software") and products that have not yet been completed ("cost of uncompleted development projects"). An internally generated intangible asset as a result of development (or completion of a development stage/milestone of own project) is recognised if and only if the ABS Group is able to demonstrate:

         • the technical possibility of completing the development of an intangible asset so that it can be used or sold;

         • the intention to complete an intangible asset;

         • the capacity to use or sell an intangible asset;

         • that an intangible asset will generate probable future economic benefits.

         • the availability of technical, financial and other means necessary to complete the development and use or sale an intangible asset;

         • that it can assess reliably the expenses incurred during the development that can be assigned to the developed intangible assets.

         The cost of internal generation of an intangible asset is the sum of expenditures incurred from the date when the intangible asset meets the recognition criteria described above for the first time. The value of expenditure previously included in costs is not subject to activation. The cost of internal generation of an intangible asset includes expenditures that can be directly allocated to the activities of designing, producing and adapting an asset for use in a manner intended by the management.

         These costs include, in particular: employee benefits, expenditure on materials and services used or directly consumed in the project, depreciation costs of equipment used in the development process and the cost of office space occupied by the development team.

         Until the completion of development works, the cumulative costs that are in direct relation to these works will be recognised as "Cost of uncompleted development projects". Upon the completion of development works, the ultimate result of the development process is transferred to the category "Internally generated software," and from then on the ABS Group begins to depreciate such internally generated software. Development costs that meet the above criteria are capitalized and reduced in the balance sheet by accumulated depreciation and accumulated impairment losses. Any expenditure related to completed development are amortized over the expected period of obtaining revenue from the sale of the project.

         Amortization allowance for intangible asset with determined use is recognized in profit or loss in weight in this category, which corresponds to the function of the intangible asset.

         Intangible assets with an indefinite useful life and those that are not in use are, at least once a year and whenever there are grounds for that, verified for possible impairment. Intangible assets with an indefinite useful life, those that are not in use, and other intangible assets are subject to impairment tests whenever there are grounds for their possible impairment. If the carrying amount exceeds the estimated

         Asseco Business Solutions Group

         Semi-annual Financial Statements for the Six Months Ended 30 June 2025

         recoverable amount (the higher of the following two values: net selling price or value in use), the value of these assets is reduced to the level of recoverable amount.

         Gains or losses resulting from the removal of intangible assets from the balance sheet are valued according to the difference between net sales proceeds and the carrying amount of an asset and are recognised in the profit or loss account in other operating cost or income upon the derecognition of this asset.

      8. ‌Right-of-use assets

         An agreement is a lease or contains lease if it transfers the right to control an identified asset over a given period in exchange for payment. The right of control is transferred to the lessee under a concluded agreement if, throughout the entire period of use, the lessee enjoys:

         • the right to reap essentially all economic benefits from the use of the identified asset and

         • the right to direct the use of the identified asset.

           The ABS Group recognises right-of-use assets at the beginning of lease in its balance sheet

           (i.e. as at the date when an asset covered by the lease agreement is made available to the ABS Group for use). Right-of-use assets are initially recognized at cost. The cost of a right-of-use asset covers the amount of the initial valuation of lease liability, any lease payments paid on or before the initial date of the lease, less any leasing incentives received, initial direct costs incurred by the lessee, and an estimate of the costs to be incurred by the lessee in connection with the disassembly and removal of the underlying asset. The ABS Group measures a right-of-use asset using the cost model, i.e. less depreciation write-downs and possible losses due to impairment, but also after appropriate adjustment for recalculated lease liabilities (i.e. modifications that do not require the recognition of a separate lease).

      9. ‌Asset impairment tests

         At every balance sheet date, the ABS Group carries out valuation of its non-financial assets concerning any impairment. If any such indication exists, or if it is necessary to perform an annual impairment test, the ABS Group will estimate the recoverable amount of an asset or cash-generating unit to which the asset is assigned.

         The recoverable amount of an asset or cash-generating unit is fair value less costs to sell the asset or unit or its value in use, depending on whichever is higher. The recoverable amount is determined for individual assets unless an asset does not generate cash flows independently, and most of them are generated independently by other assets or groups of assets. If the carrying value of an asset exceeds its recoverable value, impairment takes place and a write-down is made up to the level of estimated recoverable value. When estimating value in use, projected cash flows are discounted to their present value using a discount rate which reflects the current market estimate of time value of money and the risks specific to the asset. Impairment losses of assets used in continuing operations are recognised as an item of operating expenses.

         At each balance sheet date, the ABS Group assesses whether there is any indication that an impairment loss, which was included in previous periods for an asset, is redundant, or whether it should be reduced. If any such indication exists, the ABS Group estimates the recoverable amount of the asset. Previously recognised impairment loss is reversed if and only if since the last impairment loss recognised, there has been a change in the estimates used to determine the recoverable amount of the asset. In this case, the carrying value of an asset is increased to its recoverable amount. The increased value cannot exceed

         Asseco Business Solutions Group

         Semi-annual Financial Statements for the Six Months Ended 30 June 2025

         the asset's carrying value that would have been determined (after allowing for depreciation), if in previous years no impairment loss had been recognised in respect of that asset. Reversal of impairment loss for an asset is recognized immediately as a reduction in operating expenses. After the reversal of an impairment, amortization/depreciation charge for the asset in subsequent periods is adjusted in a way that allows systematic write-down of its revised carrying value less its residual value throughout the remaining useful life.

         Goodwill: impairment test

         After initial recognition, goodwill is recorded at acquisition cost less any accumulated impairment losses. Impairment test is carried out annually or more frequently if there are grounds for doing so. Goodwill is not amortized. At the date of acquisition, goodwill acquired is allocated to each cash-generating units that can benefit from the merger synergy. Each unit or a group of units to which goodwill has been allocated: corresponds to the lowest level in the ABS Group in which goodwill is monitored for internal management needs and is no larger than one operating segment determined in accordance with IFRS 8 Operating segments. An impairment loss is determined by estimating the recoverable amount of cash-generating unit to which a given goodwill is allocated. Where the recoverable value of the cash-generating unit is less than carrying value, impairment loss is recognised. Such impairment increases the financial expenses in the ABS Group. Reversal of a previous impairment loss is not possible.

         Where goodwill forms part of the cash-generating unit and part of the activities within the unit is sold, in determining profit or loss from sales of such an activity, goodwill associated with the sold activity is included in its carrying amount. In such circumstances, the sold goodwill is determined on the basis of the relative value of sold activity and the value of what remains of the cash-generating unit.

      10. ‌Receivables and assets from contracts with customers

          Assets under contracts with customers confer the right to remuneration in exchange for goods or services that the entity has delivered to the customer.

          Assets from contracts with customers result from the fact that the progress of implementation contracts is more advanced than issued invoices. As regards these assets, the ABS Group has fulfilled its obligation to perform, but the right to remuneration depends on other conditions than just the passage of time, which makes contract assets different from trade receivables.

          Trade receivables whose maturity is usually from 14 to 30 days are recognised and presented at initially invoiced amounts, taking into account an allowance for receivables. Receivables with distant maturity dates are recognised at the present value of the expected payment less possible allowance due to expected credit loss.

          Trade receivables from non-invoiced delivery are for those services that were provided during the reporting period (the ABS Group provided its contracted services) but were not invoiced before the balance sheet date. As at the balance sheet date, the ABS Group recognises, however, that it has an unconditional right to receive its due remuneration, which is why it classifies this asset item as a receivable.

          Allowance for expected credit losses in relation to receivables and contract-based assets

          In estimating an allowance for expected credit losses related to trade receivables, the ABS Group takes a simplified approach by measuring the allowance at an amount equal to expected credit losses over the life of receivables. In order to estimate the value of such expected credit losses, the ABS Group uses a provisioning matrix prepared on the basis of historical payments received from customers, where appropriate adjusted by the impact of forward-looking information. To this end, the ABS Group divides its

          Asseco Business Solutions Group

          Semi-annual Financial Statements for the Six Months Ended 30 June 2025

          customers into homogeneous groups and carries out a statistical age analysis and a debt collectability analysis based on data from at least two years back.

          Allowance for expected credit losses on trade receivables is updated on each reporting day.

          For trade receivables that are past due over 180 days, apart from the statistical method of estimating the amount of allowance for expected credit losses based on the provisioning matrix, the ABS Group also applies an individual approach. For each amount of trade receivables that is significant and past-due more than 180 days, the management exercise professional judgement taking into account the contractor's financial standing, the type of security, the progress of contract performance, the current rating, and other relevant facts and circumstances.

          The allowance for expected credit losses related to trade receivables and assets from contracts with customers is included in operating activities.

          In the case of other receivables and other financial assets, the ABS Group measures the write-down on expected loan losses in the amount equal to 12-month expected loan losses. If the credit risk associated with a given financial instrument has increased significantly since initial recognition, the ABS Group measures the write-down on expected credit loss on the financial instrument in an amount equal to the expected loan loss over the entire life cycle.

          Allowances for expected credit losses related to the value of other receivables are included in other operating activities or financing activities if a receivable was attributed to a transaction of investment disposal or other activity whose income and expenses, as a rule, fall under financing activities. Allowances for the balance of receivables resulting from accrued interest are included in financial expenses.

          If the reason for the allowance is no longer relevant, the whole or a part of the previously made allowance increases the value of the given asset.

      11. ‌Prepaid expenses and accrued income

          In accruals and deferred income, expenses incurred until the balance sheet date are recognised which relate to future periods (prepaid expenses) or relate to future revenues. In particular, prepayments include: (i) external prepaid services (including maintenance services) to be provided in subsequent periods, (ii) prepaid insurance, subscriptions, rents, etc., and (iii) other expenses incurred in the period and related to future periods.

          In addition, the ABS Group recognizes as an asset the costs of conclusion of a contract with a customer and the costs of performance of the agreement if the ABS Group expects to recover such costs.

      12. ‌Other assets

          The ABS Group qualifies financial assets to the following categories specified in IFRS 9:

          • measured at fair value through other comprehensive income;

          • valued at amortised cost;

          • measured at fair value through profit or loss.

            The ABS Group classifies financial assets based on the ABS Group's business model in terms of managing financial assets and the characteristics of contractual cash flows for a given financial asset. The ABS Group reclassifies investments in debt instruments if and only if the asset management model changes.

            Asseco Business Solutions Group

            Semi-annual Financial Statements for the Six Months Ended 30 June 2025

      13. ‌Inventories

          Inventories are valued at the lower of the following two values: purchase price/production cost or net realizable value.

          The purchase price or production cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition, both in the current and previous year, and are determined as follows:

          • Materials in the acquisition price defined by the FIFO method,

            Finished products and products in progress: cost of direct material and labour and an appropriate markup of indirect production overheads determined given the normal capacity utilization, excluding borrowing costs,

          • Goods in the purchase price determined by the FIFO method.

          • The selling net realizable price estimates the selling price in the ordinary course of business less the estimated costs of completion and costs necessary to make the sale.

      14. ‌Cash and deposits

          Cash and cash equivalents presented in the balance sheet consist of cash at bank and on hand, short-term deposits with a maturity not exceeding three months and other high-liquidity instruments.

          The balance of cash and cash equivalents disclosed in the cash flow statement consists of the above-defined cash and cash equivalents. For the purposes of the cash flow statement, the ABS Group adopted the principle of reducing the balance of cash and cash equivalents by the value of overdraft facilities, which were regarded as an element of financing of current operation, and restricted cash. The ABS Group recognises only those revolving loans and demand features as a cash equivalent which are an integral part of the cash management of the ABS Group. The ABS Group consistently applies this approach, including, in particular, classifying revolving facilities as cash equivalents for the purpose of presentation in the statement of cash flows, when the bank balance fluctuates frequently, and the Company's management use the overdraft facility in order to manage liquidity.

      15. ‌Social assets and liabilities to the Company Social Benefit Fund

          The Act of 4 March 1994 on the Company Social Benefit Fund with amendments (Journal of Laws of 2023, items 998, 1586) provides that the Company Social Benefit Fund ("Fund") be established by employers with over 50 full time employees. The purpose of the Fund is to finance social activities, loans to employees, and other social costs and expenses. Allowances to the Company's Social Benefit Fund during the year are the cost of the period in which they were made. The ABS Group offset the Fund's assets with its commitments to the Fund because these assets do not fall within the definition of Company assets.

      16. ‌Bank loans

          The ABS Group classifies its financial liabilities into one of the categories:

          • measured at amortised cost,

          • measured at fair value through profit or loss.

            The ABS Group measures bank loans and debt securities at amortised cost. Upon first recognition, all credits and loans are posted at acquisition price corresponding to the fair value of received cash, less transaction costs that can be attributed directly to acquisition or issuance of financial liabilities. Subsequently to such initial recognition, interest-bearing credits, loans and debt securities are measured

            Asseco Business Solutions Group

            Semi-annual Financial Statements for the Six Months Ended 30 June 2025

            at amortized cost using the effective interest method. Upon determination of amortised cost, the costs related to obtaining a credit or loan, the cost of issuance of commercial paper facilities as well as discounts or bonuses obtained on repayment of the liability are taken into account.

            The ABS Group removes financial liabilities from the statement of financial position when the liability ceases to exist, i.e. when the relevant contractual obligation has been fulfilled, cancelled or has expired. Differences between the book value of an expired financial liability and the amount of the payment, including all non-cash assets carried over, are recognized in profit or loss.

      17. ‌Lease liabilities

          An agreement is a lease or contains lease if it transfers the right to control an identified asset over a given period in exchange for payment. The right of control is transferred to the lessee under a concluded agreement if, throughout the entire period of use, the lessee enjoys:

          • the right to reap essentially all economic benefits from the use of the identified asset and

          • the right to direct the use of the identified asset.

            Lease liabilities - initial recognition

            At the inception of the lease, the ABS Group measures the lease liability in the amount of the current value of lease payments remaining due on that date. The ABS Group discounts lease payments using the lease interest rate if it can be easily determined. Otherwise, the ABS Group discounts lease payments using the marginal interest rate.

            Lease payments include fixed fees (including essentially fixed lease payments) less any leasing incentives, variable lease fees that depend on the index or rate, the amount of guaranteed final value and the price in the case of taking advantage of the purchase option (if it can be stated with reasonable certainty that the ABS Group will use this option) and fines for termination (if there is reasonable certainty that the ABS Group will use from this option).

            Variable lease payments that do not depend on the index or rate are recognized immediately as the cost of the period in which the event or condition behind the payment occurs.

            Lease liabilities - later valuation

            In subsequent periods, the lease liability is reduced by repayments and increased by accrued interest. To calculate interest, the ABS Group uses the lessee's marginal rate which is the total of the risk-free rate (for its determination, the ABS Group uses the quotas of relevant derivative instruments - IRS - or government bond interest rates for relevant currencies) and the ABS Group's credit risk premiums, which is quantified based on the offering of margins for investment loans available to the ABS Group and secured on the ABS Group's assets.

            If a lease agreement is amended, e.g. if there is a change to the period or amount of substantially constant leasing payments or a change in judgement regarding the purchase option for the leased asset, then, the lease liability is recalculated to reflect the changes. Adjustment of the value of the liability also requires adjustment of the value of right-of-use assets.

            Lease term for renewable agreements

            The ABS Group determines the lease term as the irrevocable term, including the periods covered by the option to prolong the lease, if it can be expected with reasonable assurance that the option will be used, and the periods covered by the option to terminate the lease, if it can be expected with reasonable assurance that the option will not be used.

            Asseco Business Solutions Group

            Semi-annual Financial Statements for the Six Months Ended 30 June 2025

            The ABS Group has the option, under some lease agreements, to extend the term of asset lease. The ABS Group exercises judgement when assessing whether there is reasonable assurance of using the extension option. This means that all the relevant facts and circumstances that represent an economic incentive for the extension of the agreement or an economic penalty for non-extension. After the commencement date, the ABS Group reassesses the lease term if a significant event or new circumstances occur under its control that affect its ability to use (or not use) the extension option (e.g. a change to the business strategy).

            Lease period for indefinite agreements

            The ABS Group has indefinite lease agreements and agreements that have been transformed into indefinite agreements where both parties have the option to terminate. When determining the lease period, the ABS Group uses the period of agreement enforceability. Lease ceases to be enforceable when both the lessee and the lessor exercise the right to terminate the agreement without having to obtain the other party's consent and without incurring penalties greater than negligible. The ABS Group assesses the significance of broadly understood penalties, i.e. apart from strictly contractual or financial issues, it takes into account all other significant economic factors discouraging termination (e.g. significant investments in the subject of lease, availability of alternative solutions, relocation costs). If neither the ABS Group as the lessee nor the lessor incurs a significant penalty for termination (broadly understood), the lease ceases to be enforceable and its period is reduced to the period of notice. However, where either of the parties, based on professional judgement, pays a significant penalty for termination (broadly understood), the ABS Group determines the lease period as sufficiently certain (i.e. over which it can be assumed with sufficient certainty that the agreement will continue).

            Lessee's incremental borrowing rate of interest

            The ABS Group is not able to easily determine the interest rate for lease contracts (real property lease); therefore, it uses the lessee's incremental borrowing rate when measuring lease liabilities. This is the interest rate that the ABS Group would have to pay to borrow - for a similar period, in the same currency and with similar securities - funds necessary to purchase an asset of a similar value to the right-of-use asset in a similar economic environment.

      18. ‌Trade and other liabilities

          Trade liabilities related to operating activities are recognised and reported at amounts due. These liabilities arise from invoiced supplies and services and those that have not been invoiced, but which, in the opinion of the Company's Management Board, are highly probable and whose value can be determined precisely.

          Budgetary commitments are liabilities such as taxes and public levies as well as social contributions and customs duties. These liabilities are determined in the amount of payment required in accordance with applicable regulations.

          Liabilities from project-related contractual penalties Project-related contractual penalties are payments for non-compliance or incorrect performance and result from contracts with customers rather than the legislation in a specific country.

          Project-related contractual penalties are a variable element of remuneration and reduce the transaction price; a project-related contractual penalty liability is a kind of obligation to return (part of) the remuneration, but it is not a liability from contracts with customers.

          Asseco Business Solutions Group

          Semi-annual Financial Statements for the Six Months Ended 30 June 2025

          Other liabilities are liabilities to employees due to unpaid remuneration as at the balance sheet date, liabilities from the purchase of fixed assets and intangible assets as well as any other liabilities.

      19. ‌Liabilities from contracts with customers

          Liabilities from contracts with customers are the unit's obligations to transfer goods and services to the customer in exchange for remuneration obtained by or due to the ABS Group from the customer.

          As liabilities from contracts with customers presented are the liabilities arising from the valuation of IT contracts and accrued income from licences carrying access rights unsettled until the balance sheet date are disclosed within liabilities from contracts with customers; the same applies to future revenues from services such as IT maintenance that are billable over time.

          Due to the large variety of performance obligations, it is difficult to determine one moment in time in which the ABS Group generally meets its performance obligations. Most often, in the case of contracts for the implementation of a comprehensive IT system and maintenance contracts, the ABS Group fulfils its obligations when providing services to customers. In the case of performance consisting in the delivery of a software licence to a customer (with the right to use), the ABS Group considers the obligation of performance fulfilled at the time of granting the licence, but not earlier than at the beginning of the period in which the customer can start using this software (usually after receiving the license key), which, in the ABS Group's opinion, is tantamount to transferring control over the licence to the customer.

      20. ‌Provisions

          A provision should be recognised when the ABS Group has an obligation (legal or constructive) as a result of a past event, and when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

          Post-employment benefits

          The provision for post-employment benefits is created for employee benefits (other than termination benefits and short-term employee benefits) that are payable after the completion of employment. The ABS Group has a defined contribution plan under which it pays fixed contributions into a separate entity (in Poland - the social insurance fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The ABS Group creates the provision for post-employment benefits based on calculations made by an independent actuary. Reassessment of liabilities for employee benefits pertaining to specific benefit schemes covering actuarial gains and losses is recognized in other comprehensive income and is not subject to subsequent reclassification to profit or loss.

          Provisions for litigation risks and other provisions

          Other provisions include mainly provisions for pending court proceedings and are based on available information, including, in particular, the opinions of lawyers and independent experts. The ABS Group creates provisions if, at the end of the reporting period, it has an obligation resulting from past events, and this obligation can be reliably estimated, and when it is probable that the fulfilment of this obligation will require the use of funds that offer economic benefits.

      21. ‌Accruals and deferrals

          Asseco Business Solutions Group

          Semi-annual Financial Statements for the Six Months Ended 30 June 2025

          Provision for unused leaves

          The ABS Group creates a "provision" (recognised as a component of accruals) for unused holiday leaves, which relate to periods preceding the reporting date and will be used in the future, for all of the Company's employees because in Poland unused holiday leaves constitute accumulating compensated absences (absences that are carried forward and can be used in future periods if the current period's entitlement is not used in full). The amount of such provision depends on the average monthly salary and the number of leave days not used but allocated to an employee as at the balance sheet date. The ABS Group recognises the costs of unused leaves on an accrual basis, based on estimated amounts, and discloses them in the profit and loss account under salaries (where they occur).

          Provision for bonuses

          An obligation under bonus plans results from employee service and not from a transaction with the Company's owners. Therefore, the cost of such plans (even if they provide for profit-sharing payments) is always recognised as an expense and not as a distribution of profit.

          The ABS Group recognises the expected cost of profit-sharing and bonus payments when and only when:

          • it has a current legal or constructive obligation to make such payments as a result of past events; and

          • a reliable estimate of the obligation can be made.

          A current obligation exists when, and only when, the Company has no realistic alternative but to make the payments.

          Grants related to asset development

          Grants related to asset development are government grants awarded under the primary condition that the eligible unit must purchase, generate, or otherwise acquire fixed assets. Such grants are usually subject to additional criteria that impose restrictions on the type of subsidised assets, their location, or the periods during which the assets must be acquired or retained by the unit.

          Grants are recognised when there is reasonable assurance that the ABS Group will comply with the conditions accompanying the grant and that the grant will be received. How the grant is received does not affect the accounting method adopted for that grant. What is important, however, is the purpose for which the grant is intended.

          Accordingly, grants are posted in the same manner regardless of whether they are received as cash or as a reduction of liabilities.

          If grants received by the ABS Group relate to assets, their value is disclosed in the balance sheet as deferred income and is subsequently recognised in the profit or loss account on a straight-line basis over the estimated useful life of the relevant asset, by reducing the depreciation cost.

      22. ‌Off-balance sheet liabilities

Off-balance sheet commitments they are primarily contingent liabilities understood us: a possible commitment that arises as a result of past events, the existence of which will be confirmed only when one or more uncertain future events occur that are not wholly under control of the entity, or a current commitment that arises as a result of past events but is not recognized in the financial statements because: (i) it is unlikely that the fulfilment of the obligation necessitates an outflow of economic benefits, or (ii) the amount of the obligation (liability) cannot be measured reliably enough.

Asseco Business Solutions Group

Semi-annual Financial Statements for the Six Months Ended 30 June 2025