Serviceware : Q4 Annual Report 2024/2025

About this update from Serviceware Se

Annual Report 2024/25 Ratios of the IFRS Financial Statements in EUR million 2024/2025 2023/2024 Income statement Sales revenues 115.3 103.3 thereof SaaS/Service 89.6 69.9 EBITDA 5.1 3.2 EBIT 1.0 -0.3 Earnings before taxes 1.3 -0.1 Earnings after taxes 1.8 -0.1 Balance sheet Cash and cash equivalents* 34.2 33.6 Equity 47.9 46.4 Contract liabilities (order backlog) 97.4 80.6 Total liabilities 123.5 108.7 Balance sheet total 171.4 155.1 Information about the share ISIN / Ticker symbol DE000A2G8X31 / SJJ Segment / Stock exchange Prime Standard (Regulated Market) / Xetra Outstanding shares 10.5 million Free float ca. 37.2 percent Xetra year-end price (on December 30, 2025) EUR 18.85 Market capitalization on December 31, 2025 EUR 197.9 million Further information Fiscal year December 1 to November 30 Head Office Idstein Headcount (on November 30, 2025) 444 Reporting IFRS * The item cash and cash equivalents includes the balance sheet items of liquid funds and non-current financial assets. ‌Content Letter from the Managing Directors 4 The Serviceware Vision 6 Efficiency gains and cost control through AI transformation 7 Highlights 2025 9 A new era in service management 10 The future of enterprise software is AI-native 14 Our contribution to increased sustainability 16 The Serviceware Share in 2025 19 Report by the Administrative Board 21 Combined Management and Consolidated Management Report 24 Consolidated Financial Statements 58 Consolidated Notes 65 Independent Auditor's Report 133 Declaration by the Legal Representatives 143 Company description / Contact 144 ‌Dr. Alexander Becker (COO), Dirk K. Martin (CEO) and Harald Popp (CFO) Dear Shareholders, We made the announcement - and we delivered. The 2024/2025 fiscal year was another record year for Serviceware. We achieved profitable growth and met our revenue forecast - which was recently updated to the upper end of the 10 to 15 percent growth range - as well as our expectations regarding earnings growth. However, our strong business development is not only reflected by our financial ratios; Serviceware is also operationally on track. With our AI-native Serviceware Platform, we hold a market-leading position in the field of Artificial Intelligence while successfully transitioning our business model from a license-based to a SaaS model and delivering strong international results. Total sales revenues for Serviceware increased by 11.7 percent from EUR 103.3 million to EUR 115.3 million in fiscal 2024/2025. In SaaS/Service, revenue grew disproportionately, climbing from EUR 69.9 million to EUR 89.6 million, which corresponds to an increase by 28.1 percent. As a result, the share of SaaS/Service revenue in total revenue reached 77.7 percent, up from 67.7 percent in the previous year. Serviceware's contract liabilities also grew substantially. They consist primarily of the residual values of current SaaS contracts and represent already secured future revenue. As of the balance sheet date, they increased by 20.9 percent from EUR 80.6 million to EUR 97.4 million. EBITDA according to IFRS amounted to EUR 5.1 million (PY: EUR 3.2 million). Earnings after taxes for the period improved from EUR -0.1 million in fiscal 2023/2024 to EUR +1.8 million in fiscal 2024/2025. We are particularly pleased with these increases in earnings because, unlike in previous years, we have ceased capitalizing internally generated intangible assets as of the 2024/2025 fiscal year. Furthermore, we are amortizing the capitalized internally generated intangible assets from the two previous years as scheduled, with recognition in profit or loss. The associated drag on earnings in fiscal 2024/2025 amounts to a low single-digit million-euro figure. A key growth driver for Serviceware is Artificial Intelligence (AI), which has been consistently integrated into the Serviceware Platform for years. Serviceware's modern software architecture is fundamentally designed for integration and interaction with AI. A major milestone in 2024/2025 was the release of the AI Process Engine, with which Serviceware ushered in a new era in the automation of service processes. Since the release of this innovative, AI-based process modeling software in December 2024, Serviceware has convinced numerous companies of the benefits of the AI Process Engine and acquired them as customers, including a renowned German bank as well as companies from the industrial, real estate, and education sectors. Demand for the AI Process Engine remains high and continues to gain momentum. Effective service management is a business-critical factor today. With our Serviceware Platform, we already support more than 1,100 customers in making their service management processes more efficient and reducing costs. If service management fails to meet contemporary requirements, the speed and quality of the entire service operation suffer. Rather than merely managing processes, IT systems, software, and services, resulting from a vast number of components, dependencies, and rapidly changing technologies, must be integrated and aligned within the ESM framework. To learn how our AI-native Serviceware Platform automates processes, enhances the service experience, and what potential AI agents offer, read "A new era in service management" on page 10. Sincerely, We have continued the consistent implementation of our internationalization strategy and secured a first deal in North America through our partnership with the Maryville Consulting Group. A large US food corporation is now utilizing the Serviceware Platform for IT cost management. Furthermore, Fortune 500 companies from the mechanical engineering and petroleum industries have opted for the Serviceware ESM Platform. In addition, we successfully acquired several new customers, including a leading postal and parcel service company in Central Europe and the EDAG Group, one of the world's leading engineering service pro- viders, with approximately 8,700 employees at around 70 locations across Europe, Asia, and North and South America. With our innovative Serviceware Platform, an excellent international market position, and a strong team, we consider ourselves ideally positioned to capture further market shares. For the current 2025/2026 fiscal year, we expect a significant increase in EBITDA and EBIT, as well as revenue growth of between 5 and 15 percent. We would like to thank our employees for their outstanding work and dedication during the 2024/2025 fiscal year. We also wish to express our gratitude to our shareholders, customers, and business partners for their continued trust. Together, we will continue to build on Serviceware's success story. Dirk K. Martin Harald Popp Dr. Alexander Becker CEO CFO COO ‌Annual Report 2024/2025 of Serviceware SE I The Serviceware Vision 6 THE SERVICEWARE VISION Serviceware enables people to achieve their ambitions in the service economy -revolutionized by AI ‌Annual Report 2024/2025 of Serviceware SE I Portfolio 7 Service Economy: Efficiency gains and cost control through AI transformation "The decision to use the Serviceware Platform is not just an operational fit for us -it is also technologically in full alignment with our corporate With innovations from the Serviceware portfolio, companies achieve decisive improvements in their digital processes across service and financial areas. In the Service Economy, the application of Artificial Intelligence (AI) serves as the central lever for increasing efficiency, transparency, and competitiveness. Serviceware addresses the demand from companies for solutions that enable agile business and service processes, cost control, analysis, and planning, based on a flexible and secure IT infrastructure. Serviceware supports its customers throughout the entire value chain - from strategic consulting for AI transformation and the development of service strategies to the implementation of the Serviceware Platform. In addition, Serviceware provides secure and reliable infrastructure solutions. As Europe's leading partner of CrowdStrike, Serviceware supports its customers in the field of IT security. Through managed services such as the Serviceware Wingman for CrowdStrike, as well as in-depth expertise in other leading technologies -including Vectra and Zscaler - Serviceware pursues a holistic security approach that enhances transparency and enables the early detection of threats. The core of the Serviceware portfolio is its proprietary, AI-native software platform. The Serviceware Platform is built on state-of-the-art technologies, more particularly sophisticated AI and machine learning (ML) capabilities. AI has been an integral part of the Platform from the very beginning - built-in rather than bolted-on. strategy. We no longer want to open tickets manually when automated processing is possible; for us, this is not a future scenario, but the present." Matthias Kreft Reisebank AG Annual Report 2024/2025 of Serviceware SE I Portfolio 8 The performance of the Serviceware Platform is also validated by external sources: In the international market analysis "The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025" , Serviceware was recognized as a Strong Performer . The evaluation particularly highlights the AI-native platform approach as well as strong capabilities in the areas of automation, service orchestration, and cost-effectiveness. The AI-native platform solutions are primarily utilized in the following areas: › IT and Enterprise Service Management - Process design, management, and automation of IT processes as well as all types of enterprise processes. › Customer & Employee Experience Management - Knowledge management, self-service, and AI assistance for efficient services and an optimized service experience for customers and employees. › Technology Business Management - Planning, budgeting, forecasting, and controlling for financial management in IT and other business processes, based on Serviceware's proprietary Digital Value Model (DVM). "Thanks to Serviceware and Zscaler, we can finally manage our employee access to SAP more securely and scalably, and with greater simplicity. Our work has become significantly more efficient, allowing us to focus on the essentials again." Lars Siefert Mosca GmbH "One of our first wins was enabling real-time insights into IT cost allocation through Serviceware Finan-cial's bottom-up and top-down cost flow visualization. We could clearly see how costs were distributed across regions, countries, and cost centers." Lisa Addimilio Aptar Group "With Serviceware, we have created a central knowledge base that makes our service more efficient. Our teams find the right answers faster, and our customers benefit from consistent, high-quality service across all channels." Martin Knibba Hamburger Hochbahn AG ‌Highlights 2025 Annual Report 2024/2025 of Serviceware SE I Highlights 9 February April January March IT Cost Management: Another Fortune 500 company relies on Serviceware South America: Go-live of the Serviceware Platform at major corporation The Netherlands: More than 400 Unilabs employees use the Serviceware Platform Knowledge Management: Serviceware convinces world-leading packaging company August International Leadership: July Serviceware Forum: June IT Financial Manage- Young Talents: New apprentices start their professional lives at Serviceware First workshop for international Serviceware managers Cybersecurity: Serviceware receives platinum rating from CyberVadis Serviceware introduces Agentic AI for its Platform ment: Serviceware is recognized as a FinOps Certified Platform May September Platform: EDAG Group relies on the AI-native Serviceware Platform for ITSM November December Austria: Customer Day Vienna with new impulses and exciting roundtables October Serviceware Platform recognized in international analysis in the ESM sector Horizon: Clear, new design for Serviceware ‌AI agents in service: A new era in service management Today, service is far more than a supporting function. In many companies, it has become a strategic success driver. A new stage of development is now beginning with AI agents: service organizations can respond faster, identify correlations better and manage processes in a more targeted manner. This is precisely what puts Serviceware in a strong position. When service becomes a strategic success driver How quickly requests are processed, problems are solved and services are transparently managed has a direct impact on productivity, user satisfaction and competitiveness. At the same time, Artificial Intelligence is changing the way organizations work. Processes are no longer just being digitalized but are increasingly being intelligently supported and managed. With the deployment of AI agents, a new stage of development is now beginning for service organizations. They can respond faster, identify correlations better and manage processes in a more targeted manner. For this change to take effect in practice, processes, knowledge and data must operate together on a common basis. More than automation: what distinguishes AI agents AI agents are more than traditional chatbots or rule-based automation. They do not only answer questions and do not only trigger individual workflows. Their actual added value lies in evaluating information in the respective context, deciding on appropriate next steps as well as executing them autonomously and thus supporting service processes across systems, teams and data sources. What AI agents achieve in service Understand requests in their specific context Derive appropriate next steps Execute the necessary steps autonomously Support workflows across teams and systems Help to prepare decisions faster and on a more informed basis Make service processes more scalable and more adaptive This marks a fundamental shift in the service model: away from rigid if-then rules, toward a more intelligent form of orchestration. For companies, this is far more than just a technological leap. It is a structural transformation. From rigid processes to intelligent service orchestration Many service organizations reach their limits as complexity grows: too many isolated systems, too many manual handoffs, too little transparency, too long cycle times. This is exactly where AI agents come in. They help organize requests more effectively, detect incidents earlier, make knowledge more consistently accessible, speed up decision-making, and implement those decisions autonomously. How tangible this transformation is, can be seen, for example, in service-intensive corporate environments, such as internationally active retail, industrial or service companies. Where many users, departments, systems and countries come together, frictional losses quickly arise: requests come in through different channels, information is entered multiple times, processing statuses are not always transparent, and responsibilities shift along the process. Customer service reimagined: faster, more precise, more scalable This added value becomes particularly evident in customer service. In many organizations, complaints, returns, and delivery issues are still captured, assessed, and routed manually across multiple channels. That consumes time and ties up valuable resources. AI agents automatically structure incoming requests, classify them, and direct them to the appropriate destination. Based on similar cases, they recommend suitable solutions, support customers with context-aware self-service, and provide real-time status updates. And whatever action is required, is carried out. For companies, this translates into faster response times, fewer manual routine activities, and more capacity for handling complex issues. For customers, the main benefit is an improved service experience: service interactions become simpler, more consistent, and more reliable. IT service with foresight: detecting issues earlier, responding faster IT service also shows very clearly how fundamentally the understanding of service is changing. When disruptions occur, every minute often matters. Even so, incidents in many organizations are still logged manually, communicated through different channels, and prioritized only with a delay. AI agents intervene earlier in the process: they identify patterns, bundle related incidents, support prioritization, and help coordinate communication with affected user groups. In addition, they initiate autonomous solutions. This turns reactive incident management into a more proactive service approach. The result is greater operational stability, faster response times, and better traceability of decisions. In this respect, IT is not a special case, but a particularly illustrative example of how AI agents will transform service as a whole. Why "Chat with your data" is strategically relevant "Chat with your data" transforms not only access to information but also the quality of steering: Data becomes accessible in natural language Analyses become faster and more broadly usable The links between service performance and costs become more transparent Decisions can be made earlier and on a more informed basis Non-specialists also gain direct access to relevant steering information Knowledge as an enabling factor: the common basis for humans and AI For service processes like these to function reliably, AI needs a consistent knowledge foundation. That is exactly why knowledge management is becoming a critical success factor. In many companies, relevant knowledge today is scattered across emails, documents, PDFs, or individual employees. This leads to inconsistent answers, long search times, and unnecessary strain on the service desk. When knowledge is instead structured and maintained on a common basis, employees and AI agents can access it consistently. Responses become more reliable, self-service offerings more dependable, and processing times shorter. In addition, there is an important learning effect: recurring solutions can be identified and systematically incorporated into the knowledge base. In this way, knowledge is not merely documented but actively becomes a foundation for better and more adaptive service. From reporting to management: how AI agents leverage financial data A second level of impact becomes apparent in the financial management of services. This is often particularly evident in IT environments, as service procurement, usage data, and cost structures are closely interconnected. The underlying value, however, extends far beyond that. In many companies, there is still a lack of transparency regarding which services actually drive which costs, where budgets are deviating, or which services are particularly resource-intensive. AI agents help accurately assign costs to different services, projects, and areas of responsibility, making variances visible earlier, and identifying trends faster. This becomes even more relevant through the "Chat with your data" approach. Decision-makers can ask directly, in natural language, which services are causing the largest cost increases, where budgets are deviating from plan, or which cost drivers are affecting specific service areas. In this way, data usage becomes a management capability. Reporting becomes more conversational, faster, and accessible to a much broader group of users. Advancing service processes together: humans and AI as design partners An even more forward-looking perspective goes one step further: AI agents do not merely support existing processes; they also help evolve those processes together with the people in charge of them. They can identify bottlenecks, make recurring media disruptions visible, identify unnecessary approvals, and suggest improved workflows. Process owners retain functional and organizational control but gain a new instrument for adapting service processes more quickly and improving them more effectively. This creates a model of continuous optimization: processes are not designed once and then carried forward largely unchanged for long periods but are continuously refined based on actual usage and outcomes. This turns days into minutes in the digitalization and automation of new processes. For companies operating in dynamic markets, this represents a significant strategic advantage. Why AI agents need an end-to-end AI-native platform For AI agents to truly unlock this potential alongside their human colleagues, it is not enough to simply add individual AI capabilities to existing system landscapes. They need access to relevant data, knowledge, roles, rules, and processes. Above all, however, they need a reliable framework in which decisions are traceable, workflows are controllable, and responsibilities are clearly defined. For companies, this means that intelligence alone is not enough. What also matters is reliability, transparency, and scalability. Only when processes, knowledge, data, and steering logic are brought together can AI operate effectively in service environments and in a way that is fit for enterprise use. Why Serviceware is particularly well-positioned for this new service world For platform providers, the key question is whether they merely add AI or embed it at the architectural level. This is precisely where the strategic relevance of the Serviceware Platform lies. It does not treat AI as a retrofitted add-on, but as an integral part of an end-to-end service architecture. The platform connects service processes from different areas on a common basis, integrates workflows, knowledge, data, and analytics, and enables collaboration between human and digital actors. At the same time, control remains with the company: rules, responsibilities, and approvals remain transparent and controllable. This combination of integration, intelligence, and governance is essential to deploying AI effectively in business-critical service processes. The next stage in the evolution of service management The use of AI agents does not represent an isolated innovation step, but a fundamental transformation in how service is organized, delivered, and managed. Enterprise Service Management and Financial Management are converging more closely. Service quality, efficiency, and cost transparency are no longer viewed separately, but as interconnected steering dimensions. Companies that embrace this transformation early and in a structured manner can evolve their service organization from an operational support function into a data-driven management hub. This is exactly where Serviceware is particularly well positioned. We address not only the automation of individual tasks, but the next stage in the evolution of Service Management: a world in which services are delivered faster, coordinated more effectively, and managed with greater financial discipline. At the intersection of Enterprise Service Management and IT Financial Management in particular, this is creating a new understanding of service: more effective in execution, more transparent in impact, and more informed in management. ‌The future of enterprise software is AI-native Dr. Alexander Becker, COO Serviceware The cards are currently being reshuffled in the digitalization of service processes. A key success factor is the comprehensive integration of artificial intelligence. AI acts as a catalyst: it reveals the software architectures that are truly future-proof. However, the AI disruption currently taking place is not about artificial intelligence making software obsolete, as the public debate sometimes suggests. Software is and will remain an indispensable basis for corporate value creation. The decisive difference is the underlying architecture. While traditional systems are often based on rigid, rule-based structures that are designed only for operation by humans, there will be an increasing need for AI-na-tive software platforms that enable dynamic, learning systems and can interact with humans and AI agents alike. The replacement of such static architectures by AI-driven systems marks a central technological shift in enterprise software. Ultimately, only AI-native software platforms leverage the full efficiency potential of AI. Added value through AI nativity Serviceware recognized the potential of artificial intelligence early on and already aligned itself strategically with AI after its IPO in 2018. Since 2019, we have been operating our own AI competence center together with TU Darmstadt - one of the leading universities in the field of AI. This early focus has provided the foundation for the consistently AI-native architecture of our platform. Following the radical new development of central parts of the Serviceware Platform, artificial intelligence is not merely an add-on, but an integral component of our entire system architecture. Today, it is used throughout the platform for the automation, optimization and cost management of service processes. This clearly sets the Serviceware Platform apart from many solutions on the market, in which AI was only integrated retrospectively. The AI-native architecture of the platform enables the use of intelligent AI agents as an integral part of the solution. These agents can not only execute individual tasks but also automate entire business processes. They plan and orchestrate multi-step workflows, handle complex tasks, analyze information, and support users in decision-making. Based on context and data, they make autonomous operational decisions and optimize processes dynamically - from simple service requests to complex business processes. The more autonomously such systems work, the more important a secure and reliable database becomes. Ensuring traceable governance and data integrity will therefore remain a central component of modern enterprise software, as trust in such a solution is a decisive factor. The AI agents of the Serviceware Platform rely on structured knowledge databases, internal documentation and corporate systems. This allows them to deliver well-founded, consistent and transparent results and significantly reduce typical risks of generative AI, such as unreliable or inconsistent responses. Investments in AI worldwide at record level To further improve products and services and to remain competitive, companies worldwide are investing more than ever before in artificial intelligence. According to market research firm Gartner, investments in AI are expected to rise to USD 2.5 trillion in 2026, up 44 percent year over year. This reveals a fundamental principle of modern enterprise software: the software platform provides the infrastructure level of a company's value creation, including an intelligence level integrated into the infrastructure. With the increasing capabilities of AI, this infrastructure is becoming even more important. Instead of developing its own AI models, Serviceware makes targeted use of powerful AI models from specialized providers and integrates these into its own platform. The strategic focus is on the intelligent connection of these models with structured corporate data as well as the business processes of the customers. The system architecture of the Serviceware Platform aims to enable the connection to a wide range of different external AI models to benefit directly from technological progress and the competition among providers as well as to avoid technological dependencies. Furthermore, it enables customers to use their proprietary models, which are currently being developed in many organizations. Serviceware created the conditions to systematically structure corporate data and make it usable for modern AI models at an early stage. This allows the perfor- mance of external AI technologies and the specific knowledge within companies to be effectively combined with one another. With the Serviceware Platform, Serviceware has a mature software solution that has been proven in practice many times over, is stable in use and at the same time provides a solid basis for the integration of new AI innovations. We create added value With the Serviceware Platform, we particularly address the requirements of large corporations and large mid-sized companies with complex internal service processes. In such organizations, end-to-end service processes cannot be replaced by individual AI tools. Instead, numerous processes, systems and data sources must be intelligently orchestrated with one another. Artificial intelligence does not replace the enterprise software itself but fundamentally changes its architecture. Instead of monolithic structures, increasingly flexible, AI-supported systems are emerging that dynamically support and optimize processes. With the Serviceware Platform, companies digitalize and automate their service processes across various corporate divisions and at the same time create more transparency and efficiency. By integrating artificial intelligence at all levels of the Serviceware Platform, we are taking the automation of service processes to the next level. This means that companies can increase their efficiency, accelerate processes and reduce costs sustainably. As a result, we are witnessing a growing demand for the AI-native Serviceware Platform. The combination of many years of expertise in Enterprise Service Management and comprehensive AI functions strengthens our market position. Serviceware completed the transformation to an AI-native platform at an early stage and thus created important technological prerequisites that many software providers are only now beginning to establish. This gives us a clear strategic advantage. Our value-based pricing model creates additional added value by aligning software pricing with the actual benefits and value for the customer. As a result, Serviceware is very well positioned to benefit from the current technological disruption in the software market. ‌Responsibility for today and tomorrow: our contribution to increased sustainability Sustainability has always been an integral part of Serviceware's corporate culture, shaping daily operations, decision-making, and long-term corporate development. Serviceware is convinced that long-term economic success can only be ensured through the responsible stewardship of the environment, resources, and social concerns. In its Sustainability Strategy 2030 , Serviceware has defined concrete goals intended to achieve measurable progress and make a positive contribution across environmental, social, economic, and governance areas. This strategy incorporates numerous initiatives from previous years and is being successively expanded through new activities. In the 2024/2025 reporting year, Serviceware initiated and implemented further comprehensive measures to reach these targets, to continue driving sustainability initiatives within the company, and to create a supportive work environment for its employees. "Serviceware Arena": a modern way of working The "Serviceware Arena" was opened at the company's headquarters in Idstein in 2025. Designed as an open-plan office, the Arena offers employees state-of-the-art, flexible workspaces as well as quiet retreat areas for focused work. All furniture is mounted on casters, allowing workstations to be adapted quickly and flexibly to varying needs and team sizes. The open-plan concept fosters collaboration and communication among employees, leading to increased productivity and well-being. The "Serviceware Arena" can be used flexibly for internal events and serves as an interactive space for all employees. For lunch breaks and after-work gatherings, an additional lounge area featuring a modern sound system, lounge furniture, plants, and a selection of drinks and snacks is available. This lounge area serves as a counterpoint to the daily office routine and provides space for creative ideas. At the end of 2025, the Serviceware team in Hürth moved into new office premises at the euronova Campus. Light-filled spaces provide inspiration and creative energy - ideal for efficient collaboration. With the new office, Serviceware is creating even greater proximity to its customers and setting the stage for further growth. Serviceware is pleased to be part of the vibrant campus community. Satisfied employees: the key to success Serviceware regularly hosts team events at its domestic and international locations to further strengthen cohesion, communication, and team spirit. Approximately 20 years ago, Serviceware and its employees established shared principles of collaboration that serve as a guideline for successful cooperation. Each year, the "Maxi Award" is presented to honor employees who exemplify and embody Serviceware's values in an exceptional way. Candidates are nominated by their colleagues, providing a unique expression of peer appreciation. The success of Serviceware's employee satisfaction measures is reflected in key indicators such as the company's employee turnover rate. This rate improved significantly once again in 2025, reaching 11.4 percent (PY: 14.0 percent). By comparison, the nationwide average turnover rate in Germany has been around 30 percent for years. On average, Serviceware employees were on sick leave for 9.5 days per year. According to the health insurance provider DAK-Gesundheit, German employees were absent for an average of 19.5 calendar days due to illness in 2025. Furthermore, the proportion of women at Serviceware was 26.9 percent in 2025 (PY: 26.6 percent), significantly higher than the average female representation of approximately 19 percent in the German ICT sector. Your data is secure with us A modern and secure IT infrastructure and highly qualified staff ensure data protection compliance in the handling of employee and customer data. Serviceware regularly provides its employees with training and professional development, offering comprehensive learning resources and training opportunities through a company-wide e-learning platform. During the reporting period, the platform was expanded to include additional compliance-related training modules, including topics such as data privacy and IT security. Sustainability in software and hardware Serviceware also places a significant emphasis on sustainability within its own IT operations. Ecological efficiency criteria play a crucial role in this process. The goal is to minimize the environmental impact throughout the entire lifecycle of both software and hardware. By decommissioning legacy backup structures, simplifying and streamlining infrastructure through the targeted use of existing hardware, and repurposing internal IT infrastructure, IT energy consumption was reduced by approximately 20 kWh. This represents a decrease in energy consumption of approximately 5 percent. Further reduction of the carbon footprint in offices Serviceware was able to reduce the carbon footprint of its locations in 2023/2024 by approximately 24 percent to around 325 tons. The carbon footprint of the vehicle fleet was also significantly reduced by approximately 7 percent. Serviceware continued the transition of its vehicle fleet toward alternative drive technologies. Electric and hybrid vehicles now account for 35 percent of the fleet, up from 27 percent in the previous year. In addition, employees have the option to use company bicycles or receive a subsidized transit pass ("Jobticket") for public transportation. Code Gaia, a provider of ESG software solutions for corporate sustainability management, determined a carbon emission volume of 4,346 tons for Serviceware in 2025 for the 2023/2024 fiscal year in areas directly influenced by the company (PY: 2,758 tons). This temporary increase is primarily attributable to IT investments, whose carbon footprint was calculated based on the total investment volume, as well as higher emissions resulting from an increase in business travel, which has returned toward "pre-COVID levels" in recent years. Personal contact and direct exchange with customers build trust and strengthen relationships - a decisive factor for Serviceware's long-term corporate success. Most business travel is by rail. Serviceware is committed to the sustainable reduction of its carbon emissions and aims to continuously evolve and improve across all areas of sustainability. ‌The Serviceware Share in 2025 Share price of Serviceware SE With a year-on-year increase of 50.8 percent, the Serviceware share was able to achieve significant outperformance in the above-mentioned environment. It reached its high of EUR 21.40 on August 12, 2025. The low was on January 3, 2025 at EUR 11.60. At the end of 2025, the Serviceware share was quoted at EUR 18.85, following a closing price of EUR 12.50 in 2024. The market capitalization of Serviceware SE stood at EUR 197.93 million as of the reporting date. Stock markets nationally and globally For Serviceware shareholders and investors on the German stock market, 2025 was a successful year on the stock market. The Serviceware SE share performed significantly better than the most important stock indices, which rose on a broad basis. The German Stock Index (DAX) recorded its best year since 2019 and rose by 23 percent over the full year. The mid-cap and small-cap indices MDAX and SDAX also showed a positive development with price gains of approx. 20 percent and 25 percent, respectively. The value increases for the TecDAX were less pronounced. The technology index, which lists the 30 largest German technology companies, rose by approx. 6 percent in 2025. International stock markets showed a similar picture. The US S&P 500 index increased by 18 percent. The EURO STOXX 50 also ended the year with a plus of approx. 18 percent. Despite numerous uncertainties, wars, geopolitical tensions, and new tariffs, the EUR 21 20 19 18 17 16 15 14 13 12 11 Xetra price Serviceware SE from 1.1.2025 to 31.12.2025 development of the stock markets in 2025 was very gratifying overall. Price drivers included interest rate cuts by central banks, robust corporate profits, and the ongoing trend in Artificial Intelligence. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: https://www.ariva.de/aktien/serviceware-se-aktie/chart/chartanalyse Stock exchange activity 2025 In 2025, a total of around 2.75 million Serviceware shares were traded on all German stock exchanges, of which around 1.07 million shares were traded on Xetra. On average 10,881 Serviceware shares were traded daily on all stock exchanges. Xetra accounted for an average of 4,233 shares. The resulting average trading volume per stock exchange day was EUR 176,205 (Xetra: EUR 68,394). Analyst coverage Bank Last update of Recommendation Upside target Montega February 02, 2026 Buy EUR 25.00 Quirin Privatbank March 03, 2026 Buy EUR 30.00 The business and share price development of Serviceware is currently covered by analysts from the research houses Montega AG and Quirin Privatbank AG in regular analyst studies. Both research houses recommend the Serviceware share as a buy. At the time of compiling this Annual Report (Q1 2026), the analysts' assessment is as follows: Compared to the share price at the beginning of March 2026, this represents an upside potential of approx. 93 percent and approx. 133 percent, respectively. Investor Relations activities With its listing in the Prime Standard of the Frankfurt Stock Exchange, Serviceware meets the highest transparency requirements. The information needs of the capital market are a high priority for Serviceware. The company regularly provides information via corporate news and, if applicable, ad-hoc disclosures regarding current developments, and also publishes interim reports for the quarters and annual reports for the full year. In the 2024/2025 fiscal year, the management of Serviceware again held numerous discussions with existing and potential investors, analysts, and media representatives, reporting on the business model, corporate strategy, and operational developments. In addition, Serviceware participated in a total of four capital market conferences. Detailed information on the company and the share is available on the corporate website https://www.serviceware-se.com in German, English, and in some cases, Dutch. Stock market information ISIN Ticker symbol DE000A2G8X31 / SJJ Segment / Stock Exchange Prime Standard (Regulated Market) Xetra Number of shares outstanding 10,500,000 Free float ca. 37.20 percent Xetra opening price on January 2, 2025 EUR 12.60 Annual high EUR 21.40 Annual low EUR 11.60 Xetra year-end price on December 30, 2025 EUR 18.85 Market capitalization on December 31, 2025 kEUR 197,925 Designated Sponsor ICF Bank Analyst coverage Montega, Quirin Privatbank ‌Dear Madam or Sir, In the 2024/25 fiscal year, Serviceware was again able to significantly improve sales revenues and earnings despite a continued challenging economic environment. For the first time since the IPO, a positive EBIT was reported. The guidance for the past fiscal year, which was even narrowed down to the upper range in terms of growth towards the end of the year, was achieved. The Administrative Board assesses the overall result achieved as positive, especially against the background of the economic challenges in the core markets of Germany and Austria. The Administrative Board expects the course of a continued positive revenue and earnings development to continue in the future. The past fiscal year was characterized, on the one hand, by the successful market launch of the AI Process Engine, the new centerpiece of the AI-native Serviceware Platform, and, on the other hand, by the further internationalization of Serviceware. Thus, numerous new customers were convinced of the launch and many existing customers of the upgrade to the new technology. International analysts also see the market relevance of the AI-native Serviceware Platform. For example, it was recognized by the renowned US analysis firm Forrester Research as one of the leading providers for Enterprise Service Management (ESM). In the report "The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025," Serviceware was included for the first time and classified as a "Strong Performer." Internationally, well-known customers such as another Fortune 500 Europe company, a world-leading packaging company, or an Asian Fortune Global 500 company were acquired. Activity in existing markets such as the USA was expanded through the cooperation with Thavron Solutions, a leading independent consulting company in the field of ITFM. New markets such as France are being opened up. The launch of the new Serviceware corporate design at the end of the fiscal year is representative of the further international focus of Serviceware marketing. Activities of the Administrative Board The Administrative Board fulfilled in fiscal 2024/2025 the tasks and obligations to be accomplished in accordance with the law, the bylaws and the internal regulations with greatest care and regularly supervised the work of the Managing Directors. In this connection the body convinced itself at all times of the lawfulness and regularity of the executive management. We have constantly been available for the Managing Directors in an advisory capacity in our function and have jointly developed the management of the company with the goals set in an ongoing dialog with the Managing Directors. The Administrative Board was at all times involved in all decisions which were of direct relevance for Serviceware. This was achieved more particularly through a transparent management by the Managing Directors. Meetings of the Administrative Board In the meetings of the Administrative Board, the Managing Directors reported comprehensively in writing and orally about the current and the economic situation of Serviceware SE and, moreover, informed about all important aspects and business transactions of the company. All three acting members of the Administrative Board participated in all Administrative Board meetings in the 2024/2025 fiscal year. The Administrative Board meeting on December 6, 2024 took place as a conference call. The Administrative Board meeting on June 13, 2025 was held as a video conference. All other meetings took place in person. Christoph Debus joined the meetings on February 3, 2025 and March 19, 2025 via video conference, as did Prof. Dr. Peter Buxmann on September 5, 2025. Otherwise, all members of the Administrative Board were personally present at all in-person meetings. The members of the Administrative Board were provided in due time prior to all the meetings with all relevant information and always had the possibility to critically deal with the reports and draft resolutions submitted by the Managing Directors. They were able to submit suggestions without any problems. The reports on the position and on the development possibilities of the company were discussed constructively by the Administrative Board and the Managing Directors. The Administrative Board had, moreover, an ongoing and regular exchange of information with the Managing Directors about the current business development between the different meetings. The meetings of the Administrative Board focused on the following topics, among others: Focus of the deliberations at the Administrative Board The market launch of the AI Process Engine as the new centerpiece of the AI-native Serviceware Platform was a key topic that the Administrative Board accompanied throughout the entire fiscal year. The Managing Directors reported, for example regularly on the status of the program for the market launch of the new solution and the corresponding lighthouse projects. In this context, the further development of the AI Process Engine and the expansion of the entire Serviceware Platform were discussed as well. The Administrative Board also accompanied the ongoing transition of the Serviceware business model from one-off sales to "Annual Recurring Revenue" (ARR), including the associated organizational adjustments in Customer Success Management and Financial Management, in the past fiscal year. Another focus of the meetings of the Administrative Board was the regular risk analysis in the dimensions relevant for Serviceware. During the meeting of the Administrative Board of March 19, 2025, and after the report by the attending auditor, the financial statements of Serviceware SE and the combined consolidated management report for fiscal 2023/2024 and the consolidated financial statements of the Serviceware Group and the combined consolidated management report for fiscal 2023/2024 were adopted and hence approved. Another focus was the international growth of Serviceware. Serviceware's market entry in France and the expansion of the international partner ecosystem were, for example, intensively discussed in the Administrative Board. The review of measures for further earnings improvement was another focus of the deliberations of the Administrative Board in the past fiscal year, which regularly followed the CFO's report. Committees of the Administrative Board The Administrative Board, consisting of the statutory number of three members, also acts as the Audit Committee. There are currently no other Board committees. All topics were covered together and within the meaning of the highest possible efficiency by the entire body. Composition of the Administrative Board During the 2024/2025 fiscal year, the members of the Administrative Board were: › Christoph Debus (Chairman) (Member since January 30, 2018, last elected on May 6, 2021) › Harald Popp (Member since January 30, 2018, last elected on May 12, 2022) › Until May 22, 2025: Ingo Bollhöfer (left office upon expiry of the term) › From May 22, 2025: Prof. Dr. Peter Buxmann (first elected on May 22, 2025) Corporate Governance The Managing Directors and the Administrative Board supervise compliance of Serviceware SE with the rules of the German Corporate Governance Code. The Administrative Board adopted the declaration of conformity in accordance with § 161 AktG (German Stock Corporation Act) on February 4, 2026. Serviceware SE meets the overwhelming part of the recommendations of the Code. The few deviations are explained in the Declaration of Conformity under https://serviceware-se . com/en/company/investor-relations/corporate-governance. Adoption of the financial statements The consolidated financial statements and the consolidated management report of Serviceware SE as well as the financial statements and the management report were prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable within the European Union (EU), and the supplementary provisions under the German Commercial Code (HGB) to be complied with in accordance with § 315e Para 3 HGB. Nexia GmbH Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Düs-seldorf ( "Nexia GmbH" ), that was elected by the General Meeting on May 22, 2025 as the external auditor of the financial statements for the fiscal year 2024/2025, has audited the financial statements and the consolidated financial statements of Serviceware SE as well as the management report and consolidated management report for fiscal 2024/2025 and issued an unqualified audit certificate. During the meeting of the Administrative Board on March 24, 2026 deliberations took place with the Managing Directors in the presence of the external auditor who reported about the main findings of his audit. All mentioned documents and audit reports of the external auditor were circulated in due time to the members of the Administrative Board and intensively reviewed by them. The result of the review corresponds entirely to the result of the external auditor. The financial statements of Serviceware SE as well as the consolidated financial statements were approved by the Administrative Board on March 25, 2026. This also applies to the consolidated management report and the management report submitted. The financial statements are thus adopted. The Administrative Board thanks the customers for their trust and all employees of Serviceware SE and the Managing Directors Dirk K. Martin, Harald Popp and Dr. Alexander Becker for their strong commitment and constructive co-operation during fiscal 2024/2025. Idstein, March 2026 Christoph Debus (Chairman of the Administrative Board) ‌Combined Management and Consolidated Management Report 2024/2025‌ Serviceware SE, Idstein Combined Management and Consolidated Management Report 25 General Economic Development 25 Sector development 26 Business Development 28 Situation of the Group 30 Capital Expenditure 32 Financial Situation and Capital Structure 32 Presentation of the Situation and Outlook of Serviceware SE (financial statements according to HGB) 33 Cash Flow Statement 34 Employees 34 Research and Development 35 Opportunities and Risks 36 Global Risks and Opportunities 37 Strategic Opportunities and Risks 39 Personnel Management Opportunities and Risks 40 Opportunities and Risks from Software Projects 41 Financial Opportunities and Risks 42 Accounting-related Risk Management System and Internal Control System 43 Corporate Governance Statement according to §§289f, §315d HGB 44 Compensation System 48 Disclosures in accordance with §289a und §315a HGB 49 Supplementary Report 55 Outlook 55 ‌Combined Management and Consolidated Management Report The Serviceware Group (hereinafter referred to as Serviceware) is a European provider for the digitalization of business processes. The financial statements of Serviceware SE are prepared in accordance with the provisions of HGB (German Commercial Code) and AktG (German Stock Corporation Act); the consolidated financial statements are prepared in accordance with §315e HGB based on the International Financial Reporting Standards ("IFRS"). The reporting on the situation of the Group corresponds basically to the reporting on Serviceware SE. Supplementary information on the financial statements of Serviceware SE is provided in Section 1.7. General Economic Development According to the first preliminary calculation by the Federal Statistical Office, the price-adjusted gross domestic product (GDP) was 0.2 percent higher in 2025 than in the previous year. This means that the German economy grew slightly again after two years of declining economic output. Despite this positive development, structural burdens again impeded the economic momentum. For example, the German export industry faced strong headwinds, such as higher tariffs, the appreciation of the euro, and growing international competition, which again weighed on exports over the course of the year. At the same time, investment activity remained weak, and energy-in-tensive sectors as well as the construction industry again suffered losses. After two years of negative growth, the year 2025 thus marks a slight intermediate increase in economic output, even though economic risks and external uncertainties persist. 1 Over the course of 2025, economic development showed an inconsistent picture. After the German economy had grown moderately in the first quarter, the price-, sea-son-, and calendar-adjusted GDP fell slightly in the second quarter and stagnated in the third quarter. In the fourth quarter, economic output rose by 0.3 percent compared to the previous quarter, primarily supported by higher private and government consumption expenditure. Thus, after two years of recession, the German economy ended the year 2025 on a positive note. Gross value added also developed unevenly in 2025. Overall economic gross value added declined slightly, with the manufacturing sector again significantly below the previous year's level. Key sectors such as mechanical engineering and the automotive industry were particularly affected, having to bear noticeable structural burdens and international competitive pressure. In energy-intensive industrial sectors such as chemicals, activity remained at a low level. Value added also decreased noticeably in the construction industry, with the residential construction segment in particular suffering from high costs and weak demand. In contrast, the service sector showed a mixed picture: sub-sectors such as trade, transport, and hospitality achieved increases in terms of value added, while business service providers and other service groups lagged behind the previous year. Private consumption contributed to overall economic development again in 2025 but remained only a moderate stimulus factor on the whole, supported by increased spending, particularly in the health and mobility sectors. 2 The Federal Government's preliminary budget statement for 2025 shows that the fiscal and budgetary framework remained challenging during the reporting year. For a large part of the year, operations were conducted on the basis of provisional budget management, as the federal budget was passed with a delay. While revenues increased during the reporting year, total expenditures also rose. Net borrowing amounted to EUR 66.9 billion, which was below original projections but remained at a high level. https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_017_811.html https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_035_811.html ‌Delays in the parliamentary process meant that certain planned expenditures were not fully implemented, particularly regarding investment measures. Overall, the preliminary annual financial statements illustrate that the tense macroeconomic situation and political uncertainties were also clearly felt in the area of public finances. 3 The average annual inflation rate in 2025 was 2.2 percent, remaining at the same level as the previous year. This represents a significant easing compared to 2023 and 2022, when the annual inflation rates were 5.9 percent and 6.9 percent, respectively. The development of energy prices had a particularly dampening effect; they declined on an annual average, thereby cushioning overall price increases. However, the prices of services increased at an above-average rate on an annual average, exerting a noticeable and measurable influence on inflation. The monthly inflation rate, measured as the change in the consumer price index compared to the same month of the previous year, moved around the general level of approximately 2 percent throughout the year. In December 2025, it stood at 1.8 percent, the lowest value since September 2024 (1.6 percent). 4 The business climate in Germany remained at a low level overall in 2025 and showed only minor changes throughout the year. The ifo Business Climate Index, determined by the ifo Institute, rose by only around 2.8 points between January and November, which amounts to a near standstill and remained significantly below the values of previous years. In December 2025, the Business Climate Index fell slightly month-on-month, pointing to a renewed deterioration in sentiment; companies continued to view future developments with caution. Overall, the economic sentiment in the German economy remains pessimistic, even though individual sectors showed temporary improvements over the course of the year. 5 The business climate in the digital sector remained at a significantly higher level compared to other economic sectors, indicating the relative resilience of this industry. 6 The economic development in 2025 has so far had a relatively minor impact on the labor market. According to preliminary calculations by the Federal Statistical Office, the annual average number of persons in employment with their place of work in Germany was approximately 46.0 million, which was only slightly below the previous year's level. Within the labor market, however, varying trends emerged: while the service sector recorded employment growth, the number of persons in employment in the manufacturing and construction industries declined. 7 The unemployment rate rose slightly over the course of the year. In December 2025, it stood at 6.3 percent, which was above the previous year's figure of 6.0 percent. 8 Sector development The German digital industry proved to be a stable growth factor again in 2025 and continued to stand out significantly from the overall economic environment. According to estimates by the industry association Bitkom, the market for information technology, telecommunications, and consumer electronics grew by 4.6 percent in 2025, which was noticeably stronger than the economy as a whole. The main growth driver remained the information technology sector, particularly the software segment, which benefited from the sustained high demand for digital solutions, cloud services, and data-driven applications. 9 https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2026/01/2026-01-23-vorlaeufiger-jahresabschluss-bhh-2025.html https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_019_611.html https://www.ifo.de/pressemitteilung/2025-12-04/geschaeftsklima-stagnierte-2025 https://www.bitkom.org/Presse/Presseinformation/Digitalwirtschaft-bleibt-Stabilitaetsanker https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_001_13321.html https://www.destatis.de/DE/Themen/Wirtschaft/Konjunkturindikatoren/Arbeitsmarkt/arb210a.html https://www.bitkom.org/Bitkom-Dataverse/Marktzahlen?tab_name=ITK+Marktzahlen The digital economy thus confirmed its role as an anchor of stability in an environment still characterized by economic uncertainty. From an industry perspective, the outlook for 2026 remains positive. Despite a slight dampening of sentiment at the end of 2025, the Bitkom-ifo Digital Index continues to be significantly higher than the general business climate. 10 Overall, Bitkom expects that the digital economy will continue to grow in 2026 and will expand its structural importance for the German economy. 11 The use of Artificial Intelligence (AI) has become significantly more important in the German economy and is increasingly perceived as a key technology of the future. According to a representative Bitkom survey, around one in three companies now use AI applications, while another large proportion are planning or specifically discussing their use. As a result, AI is gaining relevance not only operationally but also strategically. A significant proportion of companies assume that Artificial Intelligence will contribute decisively to competitiveness in the coming years. More than half of the companies surveyed are of the opinion that companies that do not use AI have no future in the long term. Willingness to invest is correspondingly high, as many companies plan to expand their AI activities or initiate such projects for the first time. At the same time, around four out of five companies see AI primarily as offering opportunities for their own business model. Bitkom President Dr. Ralf Wintergerst emphasizes: "There is a great deal of openness towards AI in Germany, as well as high expectations for AI, both in the business community and among the general public. With AI, the cards are being reshuffled in many areas." Overall, the study indicates that Artificial Intelligence is increasingly developing into an integral part of corporate planning and investment. 12 Employment in the ICT sector continued to develop positively in 2025. According to data from Bitkom Dataverse, the number of persons employed in the ICT sector was around 1.35 million, once again exceeding the previous year's level. The long-term build-up of employment in the digital economy thus continued, although growth has recently developed more moderately. 13 At the same time, the shortage of IT specialists remains a central challenge for companies. According to the Bitkom study on IT specialists, more than 100,000 IT positions remained vacant in 2025. Bitkom CEO Dr. Bernhard Rohleder points out that the shortage of skilled workers is slowing down the digital transformation of many companies and that the use of Artificial Intelligence can contribute to relieving IT specialists of routine tasks without replacing them. 14 Global spending on Artificial Intelligence continues to be on a strong growth path. According to a current forecast by the analyst firm Gartner, worldwide enterprise spending on AI is expected to reach a total of USD 2.5 trillion in 2026, representing an increase of around 44 percent compared to the previous year. This growth is primarily driven by investments in AI infrastructure, such as optimized servers and data centers to support large volumes of data and complex models. 15 https://www.bitkom.org/Bitkom-Dataverse/Geschaeftsklima?tab_name=Bitkom-ifo-Index https://www.bitkom.org/Presse/Presseinformation/Digitalwirtschaft-bleibt-Stabilitaetsanker https://www.bitkom.org/Presse/Presseinformation/Durchbruch-Kuenstliche-Intelligenz https://www.bitkom.org/Bitkom-Dataverse/Erwerbstaetige?tab_name=Erwerbst%C3%A4tige+in+der+ITK-Branche https://www.bitkom.org/sites/main/files/2026-01/bitkom-studienbericht-it-fachkraefte-2025.pdf https://www.gartner.com/en/newsroom/press-releases/2026-1-15-gartner-says-worldwide-ai-spending-will-total-2-point-5-trillion-dollars-in-2026 ‌Business Development Serviceware ratios of the financial statements for fiscal 2024/2025 from December 1, 2024 to November 30, 2025 December 1 to November 30 In kEUR 2024/2025 2023/2024 Variation % ** Sales revenues 115,329 103,290 12,039 11.7 - thereof SaaS/Service 89,596 69,937 19,659 28.1 EBITDA 5,081 3,223 1,857 57.6 EBIT 971 -315 1,286 >100 Financial result 317 183 134 73.2 Earnings before taxes for the period 1,288 -132 1,420 >100 Income tax 558 61 497 >100 Earnings after taxes for the period 1,846 -72 1,918 >100 Churn Rate (SaaS & maintenance) 3.5% 3.2% 0.3% 9.3 Recurring revenues share 82.3% 77.8% 4.5% 5.8 30.11.2025 30.11.2024 Cash and cash equivalents * 34,212 33,611 602 1.8 Equity 47,865 46,371 1,494 3.2 Contract liabilities (order backlog) 97,436 80,598 16,839 20.9 Total liabilities 123,539 108,683 14,856 13.7 Balance sheet total 171,404 155,054 16,350 10.5 Please note: All figures have been rounded to the nearest thousand in accordance with commercial practice. This may result in rounding differences when totals are calculated. The relative change is calculated on the unrounded values. * The cash and cash equivalents item includes the balance sheet item liquid funds and the item non-current financial assets. ** In the case of relative changes of more than 100 %, in particular due to small absolute initial values, the change is indicated in simplified format as ">100 %". In the past fiscal year, Serviceware was able to significantly increase sales revenues and achieved growth of 11.7 percent compared to the previous year. Revenues amounted to EUR 115.3 million. The strategically central SaaS/Service area again recorded the highest growth momentum with an increase of 28.1 percent. As a result of this development, the share of recurring revenue increased by 4.5 percentage points to 82.3 percent of total revenues. Given a continued challenging economic environment, this high share of recurring revenue contributes significantly to the stability and predictability of revenue development. The churn rate for SaaS and maintenance revenue remained at a low level of 3.5 percent in the reporting year (PY: 3.2 percent). The positive revenue development also had an impact on earnings. EBITDA amounted to kEUR 5,081 in the fiscal year and was thus significantly higher than the previous year's figure of kEUR 3,223. A significant improvement was also achieved at the EBIT level: following a negative result of kEUR -315 in the previous year, a positive EBIT of kEUR 971 was reached in the reporting year. During the reporting year Serviceware continued to significantly increase the international presence of its AI-native Serviceware Platform. In an international analysis, the Serviceware Platform was included for the first time in the renowned Forrester Wave: Enterprise Service Management Platforms, Q4 2025 Report and rated as a "Strong Performer". Along with recognition by analysts, Serviceware was able to convince numerous new customers of the expanded AI functionalities. For example, a well-known German bank decided to use the AI-native platform to optimize knowledge management and end-to-end banking processes, while further AI-native service processes were successfully taken live at an SDAX corporation, underlining the range of use cases and efficiency benefits. There has also been increased international demand for the AI-native Serviceware Platform. A Fortune Global 500 company from Asia is expanding its use of AI-based solutions to increase digitalization and automation of standard processes beyond IT financial management. These successes not only demonstrate Serviceware's strong market position in Enterprise Service Management but also confirm the strategic course toward AI-based, internationally scalable platform solutions that realize long-term added value in customer processes. Serviceware's cash and cash equivalents increased by kEUR 602 (+1.8 percent) to kEUR 34,212 versus prior year. Thereof kEUR 26,406 are liquid funds (PY: kEUR 26,708) and kEUR 7,806 are non-current financial assets (PY: kEUR 6,902), which are held in government bonds and bonds of government institutions with very good credit ratings. Financial liabilities were fully repaid during the reporting period and now stand at EUR 0 (PY: kEUR 1,002). As of the reporting date November 30, 2025, Serviceware employed a total of 444 people and thus 28 fewer than on the corresponding prior-year reporting date, when 472 people were employed by the company. The decline in the number of employees is due to targeted process and organizational optimization measures aimed at sustainably increasing Serviceware's efficiency and strengthening its future earnings power. The personnel adjustments were primarily carried out through natural fluctuation. ‌Situation of the Group The Managing Directors assess the current development and the situation of the Serviceware Group as being in line with expectations. The increase in sales revenues forecast for the 2024/2025 fiscal year of between 5 and 15 percent versus prior year was achieved in the upper half of the expected range with a realized growth rate of 11.7 percent. At the EBITDA level, the result is kEUR 1,857 above the previous year and at a value of kEUR 5,081. EBIT was also increased by kEUR 1,286, although to a lesser extent than EBITDA, and is again in positive territory with a value of kEUR 971. The forecast improvement in the earnings situation was thus confirmed. Non-financial performance indicators, particularly regarding customer satisfaction and employee development, are collected but are not used for management purposes. Sales Revenue Development In the 2024/2025 fiscal year, Serviceware was again able to increase sales revenues and recorded growth of 11.7 percent compared to the previous year. Thus, the company continued its sustainable growth path and achieved revenues in the amount of EUR 115.3 million (PY: EUR 103.3 million), representing a new record high. SaaS/Ser-vice continued to develop particularly dynamically and contributed significantly to revenue growth. Revenues in this segment increased by 28.1 percent to EUR 89.6 million (PY: EUR 69.9 million). As a result, the share of SaaS/Service revenues in total revenues increased significantly from 67.7 percent in the previous year to 77.7 percent and underscores Serviceware's consistent strategic orientation toward recurring, predictable revenue models. Revenues from licenses decreased by 36.2 percent to EUR 11.1 million during the reporting period (PY: EUR 17.4 million). Maintenance revenues, at EUR 14.6 million, were also 8.2 percent below the previous year's figure (PY: EUR 15.9 million). This development reflects the ongoing transformation of the business model toward SaaS- and service-based solutions. This shift of revenues into the future is accompanied by higher visibility of revenues as well as increasing stability in revenue development. Sales revenues break down as follows In kEUR 2024/2025 2023/2024 Variation in % Revenues SaaS/Service 89,596 69,937 28.1 Revenues Licenses 11,126 17,440 -36.2 Revenues Maintenance 14,608 15,913 -8.2 Total 115,329 103,290 11.7 Orders in Hand The order backlog as of the reporting date at the end of the fiscal year is essentially represented by advance payments received from SaaS and maintenance contracts. These are to be classified as contract liabilities with terms of up to 60 months. On the basis of the underlying binding contractual agreements, the contract liabilities represent future revenue of Serviceware that has already been contractually secured. Sales revenues from SaaS and maintenance contracts are recognized on an accrual basis over the respective contract terms in accordance with the contractual service provision periods. Compared to the existing contract liabilities from SaaS and maintenance contracts as of November 30, 2024, this increased as of November 30, 2025, by 20.9 percent from EUR 80.6 million to EUR 97.4 million. The retention rate* for SaaS and maintenance contracts remained at a very high level of 96.5 percent (PY: 96.8 percent). Operating Result (EBITDA/EBIT) Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the 2024/2025 fiscal year amounted to kEUR 5,081. This means that EBITDA for the full year was kEUR 1,857 above the value for the prior-year period of kEUR 3,223. The prior-year result benefited from the capitalization of internally generated intangible assets in the amount of kEUR 1,703, that met the capitalization criteria according to IAS 38 "Intangible Assets" and therefore had to be capitalized. In the current reporting period, there were no more internally generated intangible assets that met the requirements for capitalization according to IAS 38, so that there was no positive impact on earnings from further capitalization of internally generated intangible assets. The internally generated intangible assets capitalized from June 2023 to November 2024, totaling kEUR 2,452, will be amortized as scheduled over the expected economic useful life of three years starting from the beginning of the current fiscal year. No further significant capitalization of internally generated intangible assets is expected for subsequent periods. The decline in one-off license revenues associated with the transformation of the business model toward a SaaS business model continues to have an inhibiting impact on earnings. However, the development of earnings shows that the progress in the transformation of the business model is increasingly reflected in the business figures. Consolidated earnings before interest and taxes (EBIT) amounted to kEUR 971 and were thus kEUR 1,286 above the result for the prior-year period of kEUR -315. Depreciation and amortization amounted to kEUR 4,109 and were kEUR 571 above the prior-year figure. The scheduled initial amortization of capitalized internally generated intangible assets accounted for kEUR 817. In contrast, amortization of the recognized values of the acquired trademark "cubus" was completed at the end of the 2023/2024 fiscal year, reducing depreciation and amortization by kEUR 462 compared to the previous year. The amortization of rights-of-use for leased premises and cars within the scope of IFRS 16 amounted to kEUR 2,120 (prior year: kEUR 1,818). * Retention rate corresponds to (1 - churn rate (SaaS & maintenance)) ‌Financial Result and Earnings before Taxes for the Period The financial result primarily comprises interest effects from lease liabilities in accordance with IFRS 16 as well as interest expenses in connection with the long-term financing of the most recent company acquisition. This is offset by interest income from the investment of cash and cash equivalents. Overall, the financial result amounted to kEUR 317 and thus improved by kEUR 134 compared to the prior-year figure of kEUR 183. Earnings before taxes (EBT) for the period reached kEUR 1,288 in the reporting year after kEUR -132 in the previous year and thus improved by kEUR 1,420 compared to the previous year. Income Taxes and Earnings after Taxes for the Period The Group's total tax expense results from the aggregation of the tax expenses of the individual companies. Positive results of individual Group companies lead to current tax expenses, which are partially offset by deferred tax income in companies with negative results. Furthermore, tax burdens arise from foreign withholding taxes. At the Group level, current and deferred taxes resulted in a total income tax relief of kEUR 558 (PY: kEUR 61). After taking income taxes into account, consolidated earnings for the 2024/2025 fiscal year amounted to kEUR 1,846 (PY: kEUR -72). Capital Expenditure In the 2024/2025 fiscal year, capital expenditure totaled kEUR 5,166 (PY: kEUR 3,851). In the area of intangible assets, kEUR 4,442 are attributable to additions to right-of-use assets for leased premises (PY: kEUR 1,315) in accordance with IFRS 16 through extensions or new leases. A further kEUR 300 related to right-of-use assets from leased cars (PY: kEUR 496). kEUR 391 were invested in office and business equipment (PY: kEUR 323). In the previous year, internally generated intangible assets that met the capitalization requirements according to IAS 38 "Intangible Assets" in the amount of kEUR 1,703 were moreover capitalized as internally generated intangible assets. In the current reporting period, there were no internally generated intangible assets that met the criteria for capitalization, so that no corresponding additions were recorded for internally generated intangible assets. Financial Situation and Capital Structure Serviceware's asset and capital structure changed compared to the previous year primarily as a result of revenue growth and the resulting balance sheet effects, particularly from SaaS and maintenance contracts. The balance sheet total increased to kEUR 171,404 as of November 30, 2025 (November 30, 2024: kEUR 155,055). Equity amounted to kEUR 47,865 as of the balance sheet date (PY: kEUR 46,371). Due to the increase in the balance sheet total, the equity ratio decreased to 27.9 percent and was thus 2.0 percentage points below the value as of November 30, 2024. The increase in the balance sheet total is primarily attributable to the positive business development, particularly in the strategically significant SaaS/Service area. ‌Non-current assets increased by 12.1 percent to kEUR 69,563. Other intangible assets increased by kEUR 522. The change results primarily from changes in the right-of-use assets for leased items, which are recognized in the balance sheet under intangible assets in accordance with IFRS 16 ("Leases"), as well as from amortization of capitalized internally generated intangible assets in the amount of kEUR 817 (PY: kEUR 0) and amortization of intangible assets in the amount of kEUR 730 (PY: kEUR 1,192) attributable to the brands "SABIO" and "cubus" acquired in 2018 and 2019 and the associated customer bases. Non-current financial assets accounted for kEUR 7,806 (PY: kEUR 6,902). Contract receivables primarily include advance payments made for SaaS and maintenance contracts with a remaining term of more than 12 months (non-current contract receivables) or less than 12 months (current contract receivables). In total, contract receivables grew by 25.1 percent. Trade receivables, at kEUR 31,048, are 6.2 percent above the previous year. 90.7 percent (PY: 92.0 percent) of trade receivables were not yet due as of the balance sheet date. Cash and cash equivalents amounted to kEUR 26,406, which represents a decrease of kEUR 302 (-1.1 percent). In total, current assets increased by kEUR 8,858 (+9.5 percent). As in the previous year, subscribed capital amounted to EUR 10.5 million and includes 10.5 million shares with a nominal value of EUR 1.00 each. Reserves remained almost unchanged at kEUR 50,189 (PY: kEUR 50,142). In the cumulated other equity, which decreased by kEUR 399, effects with no impact on income, which included during the past fiscal year mainly currency and measurement effects, are reflected. Non-current liabilities increased by kEUR 6,724 to kEUR 42,142 in the 2024/2025 fiscal year versus November 30, 2024. The main driver here is non-current contract lia¬-bilities, which increased by kEUR 5,098 to kEUR 36,395. The balance sheet items concerning non-current and current contract liabilities essentially represent payments received for SaaS and maintenance contracts. These are contractual liabilities for a period of up to twelve or 60 months. Due to binding contracts, contract liabilities represent already fixed future sales revenues of Serviceware. Other non-current liabilities, under which obligations from long-term rental and lease agreements are recognized in accordance with IFRS 16, increased by kEUR 2,331 to kEUR 3,905 compared to the previous year's reporting date. There are no non-current financial liabilities. Current liabilities increased by kEUR 8,132 to kEUR 81,397 as at the balance-sheet date versus prior year. A major contribution to this increase is the rise in current contract liabilities by kEUR 11,741 to kEUR 61,041. Overall, the current and non-current contract liabilities have increased by kEUR 16,839 (20.9 percent), which secures the long-term sales revenues of Serviceware. The current income tax liability amounted on November 30, 2025 to kEUR 293 (PY: kEUR 181). Presentation of the Situation and Outlook of Serviceware SE (financial statements according to HGB - German Commercial Code) The balance sheet total of Serviceware SE amounts to kEUR 65,744. The asset structure is primarily characterized by liquid funds and investment securities in the amount of kEUR 13,608 as well as by shares in, loans to, and receivables from affiliated companies in the amount of kEUR 15,880 and kEUR 34,983, respectively. The company is financed primarily through equity, which amounts to kEUR 55,985. ‌The company's revenue results primarily from the recharge of management services to affiliated companies. In addition, international major customers from countries in which Serviceware SE is not represented by its own subsidiaries are regularly billed via Serviceware SE. Expenses primarily relate to personnel expenses, allocations of management services, and expenses for services received from affiliated companies. In addition, costs are incurred in connection with the company's stock exchange listing. As planned, no investment income was realized in the 2024/2025 fiscal year. At the end of the fiscal year, Serviceware SE reports a net loss for the year in the amount of kEUR 2,932 (PY: kEUR 1,840). The result decreased compared to the previous year primarily due to reduced interest income from loans to affiliated companies as well as increased investments in central marketing activities that are not recharged within the Group. The result of the single entity is thus at the lower end of expectations. A moderate improvement in the earnings situation is expected for the 2025/2026 fiscal year. Furthermore, income from investments is expected in the medium term. However, no significant investment income is currently expected for the 2025/2026 fiscal year. Cash Flow Statement Serviceware's cash and cash equivalents decreased by 1.1 percent to kEUR 26,406 as of November 30, 2025, compared to the level as of November 30, 2024. Operating activities resulted in a cash inflow of kEUR 3,919 in the 2024/2025 fiscal year (PY: kEUR 9,890). Investing activities resulted in a cash outflow of kEUR 1,057 (PY: kEUR 4,989). This essentially consists of investments in intangible assets and property, plant and equipment in the amount of kEUR 453, proceeds from disposals of kEUR 2,588, as well as payments for the acquisition of non-current financial assets in the amount of kEUR 3,394. In addition, interest income in the amount of kEUR 202 was received. Financing activities led to a cash outflow of kEUR 3,142 (PY: kEUR 3,221), which is primarily attributable to the scheduled repayment of non-current and current financial liabilities as well as to the repayment of lease liabilities in accordance with IFRS 16 in the amount of kEUR 2,129. In addition, exchange rate effects resulted in a decrease in cash and cash equivalents of kEUR 22 (PY: increase of kEUR 12) resulting from the valuation of cash and cash equivalents held in foreign currencies. Employees Serviceware employed a total of 444 employees as of the reporting date November 30, 2025. This corresponds to a net reduction of 28 employees compared to the prior-year reporting date. The majority of the workforce was active in Germany (353 employees). Furthermore, Serviceware employed 37 employees in Spain, 22 in the Netherlands, 11 in the United Kingdom, 9 in Bulgaria, 9 in Austria, 2 in Poland and 1 employee in Switzerland. Functionally, the 444 employees were distributed as follows: 101 employees were active in Sales and Marketing (PY: 100), 168 employees in Service & Support (PY: 185), 124 employees in Software Development (PY: 128) and 51 employees in Administration (PY: 59). ‌The reduction in the number of employees was accompanied by scheduled procedural and organizational optimization measures which have further increased Service-ware's efficiency and have a positive effect on future earnings power. The personnel adjustments were largely implemented through natural fluctuation. The fluctuation rate in the 2024/2025 fiscal year was 11.4 percent after 15.7 percent in the previous year and thus continued to be at a low level compared to the industry average. For a holistic assessment of employee development, qualitative aspects are taken into account at Serviceware in addition to a variety of quantitative key figures, in particu- lar the further development of the professional competencies of the employees. Filling positions in the IT sector continues to be an industry-wide challenge. However, through a targeted recruitment and training strategy, Serviceware has succeeded in filling open positions and at the same time further increasing the quality of the employee structure. Research and Development As a provider of software solutions for applications in the digitalization and automation of service processes (Enterprise Service Management), Serviceware does not have its own research. The focus is rather on the development and enhancement of our software platform, whose solutions enable companies to increase their service quality and manage their service costs efficiently. Serviceware recognized the potential of Artificial Intelligence early on and has already been offering its customers AI-supported services and innovations for seven years. Against the backdrop of ongoing technological change and the increasing speed of business transformation, Serviceware presented a new, AI-native technological basis as the core of the platform in the summer of 2024, which has been continuously improved since then. To further strengthen competencies in the area of Artificial Intelligence, a cooperation agreement exists with the Technical University of Darmstadt, a leading research institution in this field. The aim of the collaboration is joint, practice-oriented research as well as the development of new AI solutions that are integrated into the Serviceware Platform. The further development of the standard products is based on customer feedback as well as current industry and technology trends and includes both functional and technological enhancements. To be able to react quickly to new requirements and topics, software development works according to agile methods. A long-term development roadmap ensures the consistency of activities as well as a clear prioritization of development decisions. At the end of the past fiscal year, 124 employees were employed in software development (PY: 128 employees). ‌Opportunities and Risks Serviceware SE currently has numerous opportunities in view that are to be utilized in the future and are already being utilized in part. A particular focus is placed on the diverse and far-reaching changes associated with the use of Artificial Intelligence, which Serviceware views as a great opportunity to be even more successful in the future. However, many of these future opportunities are also associated with risks, which are described in more detail in this section. In order to better assess the risks and create more transparency regarding the risks and opportunities presented, risks and opportunities are categorized according to the following scheme: Likelihood of occurrence: high over 90 percent possible between 10 percent and 90 percent unlikely less than 10 percent Level of impact * : extreme business-threatening impact significant material impact moderate medium impact low low (immaterial) impact Serviceware SE's business policy is conservative. This means that, in principle, only those risks are entered into that are considered unavoidable in connection with business activities and the business model, but which are nevertheless assessed as manageable. At the same time, Serviceware SE always keeps the associated opportunities in mind in order to continuously develop its business model and business activities. The opportunities and risks of Serviceware SE essentially correspond to those of the Serviceware Group. Therefore, the opportunities and risks are presented below from the overall perspective of the Group and apply in the same way to Serviceware SE. A Group-wide risk management system is established at Serviceware for the regular assessment of risks as well as for the identification and evaluation of new opportunities and risks, which is continuously further developed and adapted to current findings. Within this framework, business objectives, corporate processes, and risk control measures are regularly reviewed using the controlling systems, procedures, and reporting standards employed. * Since the impact can relate to different areas and/or KPIs, quantification along the lines of likelihood of occurrence is not possible. ‌Furthermore, the known risks in all business areas are assessed at regular intervals. All risks are assessed with regard to their likelihood of occurrence and their possible effects on the continued existence of the company. Existing measures are reviewed and - if necessary - additional measures are identified, introduced, and implemented. Despite continuous monitoring and improvement of risk management, risks cannot be completely ruled out. Only the risks classified as significant, which could materially influence the business as well as the assets, revenue and earnings, are described below. Global Risks and Opportunities A very significant opportunity arises for Serviceware from the global trend toward advancing digitalization and the increasing use of Artificial Intelligence. A consistent use of Artificial Intelligence both in our software solutions and in business operations, combined with increasing demand for our products as a result of digitalization, can also have a positive effect on our assets, revenue and earnings. We consider the likelihood of occurrence for this to be possible and the impact to be significant. With the global advancement of digitalization, the use of virtual communication solutions has, in addition, increased significantly. This has opened up the opportunity for Serviceware to make sales channels and collaboration more efficient without having to rely on physical on-site appointments in every case. International coordination can thus be realized more easily and efficiently. This particularly facilitates cross-border deals, which has already had a positive impact on our assets, revenue and earnings and could continue to do so in the future. At the same time, we emphasize that Serviceware continues to view and actively promote personal exchange with our customers and between employees as the preferred form of collaboration. However, the growing use of virtual formats increases efficiency and thus also the likelihood of international success. We assess the likelihood of occurrence as high and the impact as moderate. Another significant potential for Serviceware lies in the development of international markets. Current market analyses by renowned research firms assume that the markets relevant to Serviceware will achieve double-digit percentage growth in the coming years. This increasing market penetration and the expected market growth are likely to have a positive effect on our assets, revenue and earnings. We assess the likelihood of occurrence as possible, and the potential impact would be significant. Cooperation with international partners also offers the opportunity to expand our presence in our relevant markets and increase the closing likelihood, which would have a positive effect on our assets, revenue and earnings. The likelihood of occurrence is assessed as possible, and the impact would be moderate. The provision of our software as a cloud service and the offering of Software-as-a-Service models also opens up the opportunity for Serviceware to make our solutions easily available worldwide. Use by a larger, global customer base can have long-term positive effects on our assets, revenue and earnings. We assess the likelihood of occurrence as high and the potential impact as significant. In addition to the possibilities and opportunities presented, risks must be considered. Increasing internationalization is also associated with the risk that political or legal changes in individual markets could perceptibly influence day-to-day business. To counter this risk, Serviceware bases its decisions and business processes on comprehensive advice from internal and external experts. The likelihood of occurrence is estimated as possible, and the impact would be moderate. To identify and specifically manage social, political, macroeconomic, and regulatory developments at an early stage, we closely monitor relevant trends. Since these influencing factors are largely outside our direct sphere of influence, the possible countermeasures are naturally limited. Another significant risk is the global increase in conflicts and acts of war, which can lead to political instability and trade conflicts. The current war in Iran and the neighboring regions poses a further risk to global economic stability. This could impair international trade and have a negative effect on our assets, revenue and earnings. To limit risk, we focus our sales markets on politically stable regions with open trade. We assess the likelihood of occurrence as possible; the impact would be significant. Furthermore, there are general economic risks, such as in the form of a global economic slowdown, which could negatively influence our assets, revenue and earnings. Here too, we assess the likelihood of occurrence as possible and the impact as significant. Varying data protection laws as well as compliance requirements in the respective countries, which could cause legal challenges and financial burdens, represent a further risk. This would have a negative effect on our assets, revenue and earnings. To reduce this risk, we work closely with external experts. We categorize the likelihood of occurrence as low and the impact as moderate. As a provider of cloud-based services, we are also exposed to the risk of cybercrime, which could temporarily impair our business operations. This would have potentially negative effects on our assets, revenue and earnings. To mitigate risk, we protect our infrastructure according to the state of the art and regularly train our employees on the dangers and prevention measures in the area of cybercrime. In addition, the topic of IT risk management is given special attention by the Administrative Board; protective measures - particularly in the context of Artificial Intelligence - are reported on regularly. We assess the likelihood of occurrence as possible, and the impact would be significant. Since April 2025, the levying of tariffs in individual economic regions has increasingly moved into the focus of political action. Even if we, as a software manufacturer, are not directly affected by tariffs in foreign trade, the imposition of tariffs on European products in non-European countries can have a negative effect on our assets, revenue and earnings. Tariffs can result in overall negative effects on European foreign trade, meaning our customers have less financial flexibility to invest in Serviceware's software. We categorize the likelihood of occurrence as possible and the impact as significant. ‌Strategic Opportunities and Risks In 2023, we took the strategic decision to invest in the fundamental redevelopment of a completely AI-native platform architecture and to comprehensively redevelop a central part of our Serviceware Platform. By doing so, we have mitigated the risk that the increasing use of Artificial Intelligence in companies will result in enterprise software, such as that offered by Serviceware, providing less and less utility, thereby leading to a decline in demand. Rather, we see the opportunity that this redevelopment of our Serviceware platform will increase the likelihood of customers choosing software and services from Serviceware, as they can achieve significant cost savings and utilize Artificial Intelligence to its full extent within the Serviceware Platform. We assess the risk of our business model being challenged by the increased use of Artificial Intelligence in the corporate environment, thereby negatively impacting revenue and earnings, as unlikely; however, the impact would be significant. By contrast, we consider the opportunity to increase revenue and earnings through the AI-native architecture of the Serviceware Platform as possible, and the impact would be significant. Furthermore, our Serviceware Platform strategy aims to offer our customers tailored software modules for everything related to digital services. We assess this as a significant opportunity. This strategy enables our customers to integrate their data without media disruptions and use the software with ease. At the same time, it opens up the opportunity for us to further expand our Platform at the customer over time, thereby tapping into potential for up-selling and cross-selling. In this way, our customers can continuously increase the utility of their initial investment, which could have positive mid-to-long-term effects on the assets, revenue and earnings of Serviceware. We assess the likelihood of occurrence as possible and the impact as significant. We pursue the goal of marketing our ESM software modules worldwide. This international expansion creates the opportunity to win new customers and build international references, which in turn can attract further international customers. At the same time, we reduce our dependency on regional economic developments to a certain extent. This development could significantly influence revenue and earnings. We categorize the likelihood of occurrence as possible; the impact would be significant. In product development, we have relied on an agile approach for years. This allows us to incorporate market trends and customer feedback into the development of new products on short notice. In this way, we ensure that our software versions meet our customers' expectations and offer high utility. This approach could increase demand for our products and have a positive effect on the assets, revenue and earnings of Serviceware. The likelihood of occurrence is possible, and the impact would be significant. We see further potential in the strong customer retention and high loyalty toward Serviceware. Trust in our long-term performance is reflected, among other things, in a low churn rate. This stable base enables us to offer existing customers additional products and thus further increase revenue and earnings. The impact is significant, and we assess the likelihood of occurrence as possible. ‌However, the aforementioned strategic opportunities are also offset by strategic risks. Below, we explain these in more detail and show how we manage them to limit their impact. Our products and services are highly dependent on technological progress. The rapid development of new technologies can lead to existing products or services becoming outdated and losing relevance. We counter this by remaining agile in product development and obtaining early feedback from our customers to develop competitive products. We assess the likelihood of occurrence of this risk as possible and the impact as significant. A further risk results from our strategic focus on further strengthening the SaaS business with its recurring revenues. As a result, we do not realize revenue immediately, but continuously over the respective contract terms. This can lead to earnings and revenue potential being shifted into the future and short-term revenue and earnings momentum are restrained. At the same time, this strategy offers the opportunity to make our business model more profitable and resilient in the long term. We estimate the likelihood of occurrence of this risk as possible and the impact as significant. To further accelerate our growth, we continuously examine potential inorganic growth options alongside organic growth. There is a risk that companies or parts of companies that we acquire or have acquired perform worse financially than expected, which could have negative effects on the assets, revenue and earnings of Serviceware. Therefore, we perform careful due diligence before every acquisition and involve both internal and external experts to realistically assess the future development and possible risks of the target. On the other hand, inorganic growth offers the opportunity to positively manage transformation pressure and the high pace of innovation in our ma...

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