Half-Year Report 2025

INTERIM REPORT 2025

This financial report was approved on August 29, 2025 by the Board of Directors of Highlight Event and Entertainment AG.

Contact:

Bernhard Burgener

Chairman and Delegate of the Board of Directors

The notes on pages 6 - 12 are an integral part of these consolidated interim financial statements.

The notes on pages 6 - 12 are an integral part of these consolidated interim financial statements.

The notes on pages 6 - 12 are an integral part of these consolidated interim financial statements.

The notes on pages 6 - 12 are an integral part of these consolidated interim financial statements.

1. GENERAL INFORMATION ON THE GROUP

   The parent company of the Group, Highlight Event and Entertainment AG, has its registered office at Netzibodenstrasse 23b, Pratteln, Switzerland.

   On August 29, 2025, the Board of Directors of Highlight Event and Entertainment AG approved these unaudited, condensed consolidated interim financial statements for publication.

2. ACCOUNTING POLICIES

   The unaudited, condensed consolidated interim financial statements for the period from January 1 to June 30, 2025 have been prepared in accordance with the International Accounting Standard on Interim Financial Reporting (IAS 34).

   The condensed consolidated interim financial statements do not contain all the notes and disclosures required for the financial statements for the financial year and should be read in conjunction with the consolidated financial statements published by the company as of December 31, 2024.

   With the exception of the first‐time application of new or amended standards and interpretations explained in section 3.1, the accounting and valuation policies applied in preparing the condensed consolidated interim financial statements are the same as those used to prepare the consolidated financial statements for the 2024 fiscal year (see 2024 Annual Report 2024, notes to the consolidated financial statements, section 4).

   The condensed consolidated interim financial statements have been prepared in Swiss francs, which is the functional and reporting currency of the Group's parent company. Amounts are reported in thousands of Swiss francs (TCHF) unless stated otherwise.

   The Film segment and the Sports and Event segment are subject to seasonal fluctuations. The sales of the Film segment are dependent on the respective theatrical release dates and the subsequent exploitation chain. The Sports and Event segment generates lower sales in the summer months due to reduced advertising income, which dependents on broadcasting rights for sporting events. This leads to fluctuations in revenue and segment results in the quarters of the fiscal year.

   In preparing the condensed consolidated interim financial statements, management is required to make estimates and assumptions that affect the reported assets, liabilities, contingent liabilities and contingent receivables at the time of reporting as well as the income and expenses of the reporting period (see 2024 Annual Report, notes to the consolidated financial statements, note 5).

3. CHANGES IN ACCOUNTING POLICIES
   1. Relevant standards and interpretations applied for the first time

      The Group applied the following standard amendment for the first time in the current reporting period:

      • Amendments to IAS 21 - Effects of foreign exchange movements

        The application of the standard amendment has not had any significant impact on the Group's accounting policies or the need for retrospective adjustments.

   2. Relevant standards, revised standards and interpretations published but not yet adopted

      The HLEE Group waived early adoption of the new or revised standards and interpretations whose adoption is not yet required for Highlight Event and Entertainment AG. The Group considers the impact of these new standards and interpretations on current or future reporting periods and foreseeable future transactions to be immaterial, with the exception of changes in presentation and disclosure.

4. CHANGES TO THE SCOPE OF CONSOLIDATION

   On January 1, 2025, Constantin Television GmbH, Munich, acquired the remaining 49% of shares in the already fully consolidated Constantin TV Productions GmbH, Munich, and increased its shareholding to 100%. This is a transaction between equity providers. As a result of the transaction, the capital reserve decreased by TCHF 106 compared to December 31, 2024, and the non‐controlling interests increased by TCHF 106.

   Effective retroactively from January 1, 2025, Constantin Television GmbH, Munich, was merged into Constantin Film Produktion GmbH, Munich.

   Similarly, effective retroactively from January 1, 2025, Constantin Film Verleih GmbH, Munich, was merged into Constantin Film Vertriebs GmbH, Munich. This was subsequently renamed Constantin Film Distribution GmbH.

   In April 2025 the 50.1% of the shares in Match IQ GmbH (as well as its wholly‐owned subsidiary Event IQ GmbH) were sold for TCHF 95.

   Sport1 Digital GmbH, Ismaning, was founded during the reporting period. Furthermore, the wholly‐owned subsidiary Borenite sp. z o.o., Warsaw, was founded.

   The effects of these transactions on these consolidated interim financial statements are immaterial.

5. NOTES ON SELECTED ITEMS OF THE STATEMENT OF FINANCIAL POSITION AND THE INCOME STATEMENT
   1. Film assets

      Compared to December 31, 2024 film assets increased by TCHF 11,678 as of June 30, 2025. This was due in particular to an increase in in‐house productions totaling TCHF 7,861.

   2. Contract assets

      The carrying amount of contract assets increased slightly, from TCHF 10,091 to TCHF 10,308.

   3. Cash and cash equivalents

      Cash and cash equivalents increased from TCHF 16,859 to TCHF 17,047 as of June 30, 2025. Financing activities resulted in a cash inflow of TCHF 13,927, primarily as a result of taking up current financial liabilities. The Group's investing activities resulted in a cash outflow of TCHF 53,271, which was mainly attributable to payments for film assets. Operating activities generated a positive cash flow of TCHF 39,679.

   4. Equity Subscribed capital

      As of June 30, 2025, the fully paid‐up share capital of the parent company, Highlight Event and Entertainment AG, amount to CHF 12,960,000 (December 31, 2024: CHF 12,960,000), divided into 12,960,000 bearer shares with a nominal value of CHF 1.00 per

      share (December 31, 2024: 12,960,000 bearer shares of CHF 1.00 per share).

      Treasury shares

      As of June 30, 2025, the separately reported item "Treasury shares" amounted to TCHF ‐15 (December 31, 2024: TCHF ‐15). The amount reflects the nominal capital of treasury shares.

      As of June 30, 2025, the number of directly held non‐voting treasury shares in Highlight Event and Entertainment AG was 14,840 (December 31, 2024: 14,840). No treasury shares were acquired or sold during the reporting period.

      Non‐controlling interests

      As of June 30, 2025, non‐controlling interests in consolidated subsidiaries amounted to TCHF 125,526 (December 31, 2024: TCHF 146,102).

      Remeasurement reserves and retained earnings

      As of the end of the reporting period, other reserves totaled TCHF 52,694 (December 31, 2024: TCHF 76,204).

      As of June 30, 2025, these essentially relate to the translation of the equity of companies that do not use Swiss francs as their functional currency.

   5. Contract liabilities

      The carrying amount of contract liabilities increased from TCHF 11,466 to TCHF 16,776.

   6. Amortization, depreciation and impairment

      (TCHF)	Jan. 01 to June 30, 2025	Jan. 01 to June 30, 2024
      Amortization of film assets	35,901	24,910
      Amortization of intangible assets	7,029	8,193
      Depreciation of property, plant and equipment	2,806	3,114
      Amortization/depreciation of right‐of‐use assets	3,298	3,349
      Amortization/depreciation	49,034	39,566
      Impairment of film assets	2,332	65
      Impairment	2,332	65
      Reversals of impairment of film assets	2,500	2,258
      Reversals of impairment	2,500	2,258

   7. Financial result

      Financial income (TCHF)	Jan. 01 to June 30, 2025	Jan. 01 to June 30, 2024
      Interest and similar income	657	909
      Gains from changes in the fair value of financial instruments	1	1,310
      Currency exchange gains	8,690	1,933
      Total	9,348	4,152

      Financial expenses (TCHF)	Jan. 01 to June 30, 2025	Jan. 01 to June 30, 2024
      Interest and similar expenses	10,505	8,981
      Losses from changes in the fair value of financial instruments	2,179	283
      Currency exchange losses	913	3,549
      Interest expenses from lease liabilities	421	371
      Total	14,018	13,184

6. DISCLOSURES ON FINANCIAL RISK MANAGEMENT
   1. Fair value of financial assets and liabilities

      The following table shows the allocation of financial assets and liabilities measured at fair value to the three levels of the fair value hierarchy:

      Fair value hierarchy

      June 30, 2025 (TCHF)			Level 1	Level 2	Level 3	Total
      Financial assets at fair value
      	Derivative financial instruments	FVTPL/ without category	‐	77	412	489
      	Financial assets at fair value through profit or loss	FVTPL	‐	11,564	‐	11,564
      	Financial assets at fair value through OCI	FVTOCI	‐	‐	20,719	20,719
      Financial liabilities at fair value
      Derivative financial instruments		FLTPL/ without category	‐	1,464	‐	1,464

      June 30, 2024 (TCHF)			Level 1	Level 2	Level 3	Total
      Financial assets at fair value
      	Derivative financial instruments	FVTPL/ without category	‐	457	246	703
      	Financial assets at fair value through profit or loss	FVTPL	‐	14,733	‐	14,733
      	Financial assets at fair value through OCI	FVTOCI	‐	4,410	29,306	33,716
      Financial liabilities at fair value
      Derivative financial instruments		FLTPL	‐	772	‐	772

      FVTOCI: Financial assets at fair value through OCI FVTPL: Financial assets at fair value through profit or loss FLTPL: Financial liabilities at fair value through profit or loss
      Disclosures on level 3 financial instruments		Profit
      (TCHF)	Equity investments	participation rights	Embedded derivatives	Convertible loans
      Fair value as of December 31, 2023	18,167	1,636	237	‐
      Transfer to level 3	4,253	‐	‐	‐
      Gains/(losses) through profit or loss	‐	‐	50	‐
      Gains/(losses) through equity	‐9,900	‐1,636	1	‐
      Purchase	8,310	‐	127	‐
      Fair value as of December 31, 2024	20,830	‐	415	‐
      Gains/(losses) through equity	‐111	‐	‐3	‐
      Fair value as of June 30, 2025	20,719	‐	412	‐

      The financial assets measured at fair value and included in level 1 are measured using stock market prices.

      The derivative financial instruments in level 2 are measured at current market rates. A discounted cash flow method was used to determine the fair value of level 2 derivative financial instruments.

      Level 3 equity instruments were measured at fair value through other comprehensive income. In this context, discounted cash flow methods with discount rates in the double‐digit percentage range were utilized based on the five‐year planning of the respective companies. A discounted cash flow method was used to determine the fair value of level 3 derivative financial instruments.

      There were no reclassifications between the individual levels of the fair value hierarchy in the reporting period. They are reclassified quarterly in each reporting period if circumstances requiring a different classification arise.

   2. Financial assets and liabilities at amortized cost

      Given the short remaining term, the carrying amounts of current financial receivables and liabilities as of the end of the reporting period are approximately the fair value. Non‐current receivables are discounted according to their remaining term. Their carrying amounts are therefore also approximately the fair value.

   3. Fair value of non‐financial assets and liabilities

      As of June 30, 2025, and December 31, 2024, there were no non‐financial assets or liabilities measured at fair value.

7. SEGMENT REPORTING Segment information Jan. 01 to June 30, 2025

   (TCHF) Film

   Sports and

   Event Other

   Recon‐

   ciliation Group

   External sales		101,240	55,304	‐	‐	156,544
   Intragroup sales		437	182	85	‐704	‐
   Total sales		101,677	55,486	85	‐704	156,544
   Other segment income		36,744	2,042	39	‐429	38,396
   Segment expenses		‐142,571	‐81,056	‐3,461	1,133	‐225,955
   	thereof amortization and depreciation	‐38,170	‐10,864	‐	‐	‐49,034
   	thereof impairments and reversals of impairment	168	‐	‐	‐	168
   Segment earnings		‐4,150	‐23,528	‐3,337	‐	‐31,015
   Timing of revenue recognition
   	Over time	39,145	18,755	‐	‐	57,900
   	Point in time	62,095	36,549	‐	‐	98,644
   		101,240	55,304	‐	‐	156,544
   Sales by product type
   	Film	62,083	‐	‐	‐	62,083
   	Production services	39,157	‐	‐	‐	39,157
   	Sports and Event	‐	23,680	‐	‐	23,680
   	Platform	‐	24,255	‐	‐	24,255
   	Services	‐	7,369	‐	‐	7,369
   		101,240	55,304	‐	‐	156,544

   Segment information Jan. 01 to June 30, 2024

   (TCHF) Film

   Sports and

   Event Other

   Recon‐

   ciliation Group

   External sales		102,349	80,531	13	‐	182,893
   Intragroup sales		375	165	87	‐627	‐
   Total sales		102,724	80,696	100	‐627	182,893
   Other segment income		50,520	2,303	428	‐683	52,568
   Segment expenses		‐155,082	‐87,731	‐3,884	1,310	‐245,387
   	thereof amortization and depreciation	‐27,167	‐12,398	‐1	‐	‐39,566
   	thereof impairments and reversals of impairment	2,193	‐	‐	‐	2,193
   Segment earnings		‐1,838	‐4,732	‐3,356	‐	‐9,926
   Timing of revenue recognition
   	Over time	51,437	21,832	‐	‐	73,269
   	Point in time	50,912	58,699	13	‐	109,624
   		102,349	80,531	13	‐	182,893
   Sales by product type
   	Film	50,607	‐	‐	‐	50,607
   	Production services	51,742	‐	‐	‐	51,742
   	Sports and Event	‐	31,871	‐	‐	31,871
   	Platform	‐	39,333	‐	‐	39,333
   	Services	‐	9,327	13	‐	9,340
   		102,349	80,531	13	‐	182,893

   The elimination of inter‐segment transactions is reported in the reconciliation column.

8. FINANCIAL COMMITMENTS, CONTINGENT LIABILITIES AND OTHER UNRECOGNIZED FINANCIAL OBLIGATIONS

   Compared with the consolidated financial statements as of December 31, 2024, financial commitments, contingent liabilities and other unrecognized financial obligations and lease liabilities decreased by TCHF 44,415 to TCHF 106,601 as of June 30, 2025.

9. RELATED PARTY DISCLOSURES

   As part of its normal business activities, the company maintains relations with associates, joint ventures as well as with companies controlled by members of the Board of Directors.

   Related party disclosures
   (TCHF)	June 30, 2025	Dec. 31, 2024
   Receivables	14,776	15,983
   Current liabilities	5,600	2,544
   Current financial liabilities Swiss International Investment Portfolio AG (interest rate 5%)	46,371	46,618
   Current financial liabilities Personalfürsorgestiftung der Victorinox AG (interest rate 3%)	16,500	16,500
   Current financial liabilities Obotritia Capital KGAA (interest rate 6%)	673	677
   Current financial liabilities Pensionskasse der Victorinox AG (interest rate 3%)	600	600
   Current financial liabilities Victorinox AG (interest rate 3%)	14,300	13,300
   Current financial liabilities Miralco Holding AG (interest rate 3%)	1,000	1,000
   Other current financial liabilities (interest rate 3% to 6%; previous year: interest rate 3% / 6%)	9,400	5,200
   (TCHF)	Jan. 01 to June 30, 2025	Jan. 01 to June 30, 2024
   Sales and other income	‐	‐
   Cost of materials and licenses and other expenses	27	23
   Financial expenses for financial liabilities of Swiss International Investment Portfolio AG	1,171	1,196
   Financial expenses for financial liabilities of Personalfürsorgestiftung der Victorinox AG	248	248
   Financial expenses for financial liabilities of Obotritia Capital KGAA	20	33
   Financial expenses for financial liabilities of Victorinox AG	200	185
   Financial expenses for financial liabilities of Pensionskasse der Victorinox AG	9	18
   Financial expenses for other financial liabilities	194	157
   Associates and joint ventures
   (TCHF)	June 30, 2025	Dec. 31, 2024
   Receivables	144	148
   Liabilities	‐	‐

   As of June 30, 2025, there were liabilities amounting to TCHF 128 (December 31, 2024: TCHF 213) to various members of the Board of Directors and managing directors.

   Related parties include the members of the Board of Directors, the members of Group management and their relatives.

   Highlight Event and Entertainment AG did not perform significant services for companies controlled by related parties in the reporting period or in the same period of the previous year.

10. EVENTS AFTER THE END OF THE REPORTING PERIOD

On July 7, 2025, 100% of the shares in Plazamedia GmbH were sold to DMC Production GmbH.

On August 24, 2025, Highlight Event and Entertainment AG and its largest shareholders, Bernhard Burgener, Victorinox AG, and Pensionskasse der Victorinox AG, and Swiss International Investment Portfolio AG, signed a commitment letter with CSL Mindset Ltd., a company of the Clementy Schuman Legacy Foundation. The Clementy Schuman Legacy Foundation is active in the fields of space, cultural engagement, health, and infrastructure. The commitment letter provides for an equity investment by the investor in the amount of CHF 300 million.