USU Software : Sustainability Report

Foreword

At a time when trust and reliability are key values in the digital economy, the USU Group was awarded the "Highest Trust" seal for the third time in a row at the end of 2023. The Focus study, conducted in collaboration with the IMWF Institut für Management- und Wirtschaftsforschung GmbH, was based on social listening data on the topics of reliability, recommendation, quality and trust. We are proud of this award, as it reflects our commitment to building and maintaining honest and authentic relationships with all our stakeholders - from our employees, to our customers, our partners and society as a whole.

As a software company, we stand at the

intersection­of technological innovation and human creativity. We understand that developing top-class software is more than just coding -

it requires a multitude of ideas, talents, and visions to realize the added value in practical application. This can only be achieved in a well-functioning team that collaborates with trust.

We recognize that our actions today shape the world of tomorrow. That's why in this report we want to show you how we integrate sustainability into many aspects of our business, how we promote diversity and inclusion in our workforce step by step, how we minimize our environmental impact through innovative practices and how our commitment to social responsibility is perceived by our USU colleagues. With this report, we aim to transparently document our sustainability activities and our progress. Our vision is a sustainable IT world in which innovation goes hand in hand with ethical behavior. It is therefore important to us to develop software solutions that are not only technologically leading, but also socially and environmentally responsible.

Our sustainability report is aligned with

­internationally recognized standards to enable comparability with other reports on economic, social and environmental performance indicators.

The 20 criteria of the German Sustainability Code, including the associated GRI performance indicator set, are explained below. This report fulfills the USU Group's EU reporting obligation under the CSR Directive Implementation Act. The non-financial (Group) statement is reviewed exclusively by the Supervisory Board.

USU Software AG at a glance

As a leading provider of software and services for IT and customer service management, USU enables

companies to master the challenges of today's digital world. Global organizations use USU solutions to cut costs, become more agile and reduce risks - with smarter services, simpler workflows and better collabo- ration. With over 45 years of experience and locations worldwide, the USU team brings customers into the future.

In addition to USU GmbH, which was founded in 1977, the subsidiaries USU GmbH, USU Solutions Inc. OMEGA Software GmbH, USU SAS and USU GK also belong to USU Software AG, which is listed in the Prime Standard of the German Stock Exchange.

The principles for sustainability-oriented action are an important basis for USU's business activities. The USU Group understands sustainability-oriented action to mean striking a balance between the three sustainability dimensions of economy, ecology and social issues and taking the interests of stakeholders into account in decision-making processes. USU is aware that this is a complex balancing process and that interdependencies cannot always be fully assessed in advance. However, USU strives to continuously scrutinize and develop itself in order to make a positive contribution to stakeholders and society through its actions. USU therefore designs its value creation and exchange processes with a focus on the market, the environment and society. The Management Board, management and employees are aware of their responsibilities. Sustainability and social, ethical action have been implicitly practiced at the USU Group since the company was founded and are therefore firmly anchored in the corporate culture. For USU, this is a continuous improvement process that can only succeed in ­constant dialog with stakeholders.

Social responsibility at USU Software AG has many facets and is firmly anchored in the company's management and business strategy. USU does not currently have a dedicated sustainability strategy, but rather

an overarching overall business strategy from which all other sub-areas are derived. One of these sub-areas is sustainability. The overall strategy comprises the three business principles "Company, Customers & Products", on which the company's understanding of values, its commitment to sustainable action and the associated operational planning are based. The "Company" principle ensures that USU is an attractive company for employees and investors as well as for the entire business environment. This means maintaining a fair and respectful relationship with stakeholders and also maintaining a focus on awareness and awareness of ecological and social responsibility. Only through such behavior can the company ensure long-term success and increase its attractiveness for employees and investors. The two principles of "Customers" and "Products" also contribute to the USU Group's sustainable success. The focus of USU's activities is on its customers, who are offered customized software solutions. This individuality and proximity help to build lasting customer relationships and partnerships. With its products, USU also stands for excellent software-­ based solutions and a high level of innovation. The quality of its products and the development of new innovations contribute significantly to the long-term success of the company.

The USU Group has an identity-forming corporate mission statement, which was developed by USU colleagues on the basis of many individual discussions, questionnaires and workshops with all stakeholders as part of an internal "More-U" project. In addition to the values, the Group's mission and vision were jointly designed, defined, tested and approved in an intensive communication process.

The mission statement defines what USU stands for and what the driving factors are: We master digital challenges in IT and Customer Service with efficiency, passion, innovation and knowledge.

The USU vision underlines the direction and the goal of where USU is heading and emphasizes the claim that services supported by USU are used worldwide: The whole world is touched by USU (em)powered services.

USU's economic success as a software company is based in particular on the performance and knowledge of its specialists and managers. The company is reliant on highly qualified personnel in order to continue to meet market requirements and individual customer needs in the future. It is also important to be an attractive employer in view of the shortage of specialists and managers in the industry. The loss of managers or employees in key positions can damage the company just as much as the absence of new knowledge carriers. In order to counteract this personnel risk, personnel measures focus not only on recruiting specialists and managers, but also on retaining and motivating existing staff. The partial variability of salaries for a large number of employees should also be seen in this context, which serves as an additional performance incentive to reward the achievement

of targets. An extensive and flexible company car program is also provided. The USU Group also continuously invests in the development and training of its workforce as part of its career and career path model. In addition to specialist qualification measures and the further development of soft skills, refresher and in-depth training courses are also offered for personnel development. In addition, a 36-month USU loyalty program was launched in 2023 with the distribution of a loyalty bonus in spring 2026. A share program was also implemented in which employees were able to purchase USU shares at a discount.

A shared value system, short information channels, a familiar working atmosphere and numerous employee events round off the wide range of measures. Although the USU Group sees a major risk in the area of human resources due to the shortage of specialists and managers, the recruitment of additional qualified employees and the associated expansion of the Group's workforce represents a significant opportunity to fully utilize the existing growth options in the product and service business.

The USU Group is also involved in numerous activities that can be subsumed under the postulate of sustainability -oriented action.

This include

• The expansion of dual training and talent development to secure specialists and manag- ers in the long term
• A pronounced social and cultural commitment, with particular attention paid to regionality and a connection to the corporate environment
• Ergonomic office equipment for all employees
• Flexible working hours and part-time models
• Services provided by a company doctor
• Flexible options for working from home
• Depending on the location, freshly cooked meals and free fruit every day, as well as the free provision of water dispensers to reduce resource consumption by reducing the use of disposable bottles
• The option for employees to use bicycles and pedelecs leased from the company
• The special promotion of company cars with a good CO₂ efficiency class, especially electric vehicles
• Optimizing power consumption, for example by consistently switching to LED technology or virtualizing servers
• A balanced CO2 balance for electricity and fuel consumption in Europe through energy-saving measures and the purchase of climate protec- tion certificates

The Management Board and management hope that this will provide a transparent view of the company, both for employees and for customers, partners and shareholders of USU Software AG.

The fields of action identified during the preparation of this report are intended to help raise awareness of the important issues, record their status and document improvements.

Without specifically aligning its efforts for sustainable action with a single international standard for sustainable business, the USU Group acts in accordance with the ten principles of the United Nations Global Compact (UN Global Compact) and the core labor standards of the International Labor Organization (ILO) in addition to legal requirements.

Materiality

The goal and prerequisite for all activities is the sustainable economic success of the USU Group. In ­addition to highly innovative products and solutions, a wealth of intangible assets ensure economic success. These include not only long-standing good customer relationships, strategic partnerships and cooperation with universities and institutes, but above all motivated employees who practice thinking in contexts and networks on a daily basis - true to the motto "Knowl- edge is market".

Success is not possible without cooperation based on trust. And trust has to be earned anew every day. The basic principle for this is open, fair and respectful interaction with one another - not only internally, but also with customers, shareholders and business partners. The USU Group's employees have formulated basic values and goals in team discussions with colleagues and across all divisions and locations. What is important has been summarized in core statements. These guidelines are used to determine where we stand and as goals to which all employees are constantly realigning themselves.

Curiosity

• Continuously rethink and question the status quo
• Be willing to learn in order to take the next step
• Be open to new ideas, topics and perspectives
• Take an interest in people
• Understanding feedback as an opportunity for personal development

Personal responsibility

• Carry out own tasks independently and reliably
• Take responsibility proactively, drive forward new topics proactively
• Hand over responsibility appropriately (empower- ment): with clear targets, offers of help, feedback.
• Make situational decisions in a team if possible

Community

• Revitalize and preserve the special USU spirit
• Act and perform as a team (also across departments)
• Work for each other instead of acting against each other
• Promote the diversity of different personalities
• Discuss critically, but always constructively

Consequence

• Act and act as a role model
• Making decisions and implementing them sustainably and comprehensibly
• Comply with Group-wide standards,
• Avoid exceptions to set standards, point out effects if necessary
• Align your own actions with the long-term corporate strategy in a targeted manner

Employees

Anyone who develops and sells software works with people for people. For this reason, non-monetary targets play a central role in USU's activities alongside traditional monetary targets. Accordingly, surveys are conducted at regular intervals to identify additional potential for improvement. In some cases, the USU Group is supported by independent, external service providers. The successful integration of new colleagues also reflects the sustainability of USU's corporate culture. USU GmbH has been awarded the "Top Company 2023" and "Most Wanted Employer 2022" seals of approval on the employer rating platform kununu.

USU was once again certified as an "Attractive Employer" by Great Place to Work® at the end of 2023. With this seal of approval, the Great Place to Work® Institute once again honors USU's special commitment to creating a trusting and supportive workplace culture.

The study includes independent, anonymous feedback from employees and an analysis of HR measures and programs. Overall, the participation rate among USU employees was an above-average 71%. Of these, 80 percent confirmed that USU is a "Great Place to Work", taking all aspects into account. The "leadership culture" of the respective direct manager was rated particularly positively. Employees rewarded aspects such as trust, recognition, dealing with mistakes and accessibility with top marks of between 93-97% ("almost completely agree", "mostly agree").

USU has also once again been recognized as an attractive employer. The latest study by Focus Business awarded USU the "Top Arbeitgeber Mittelstand 2024" seal.

In connection with this, continuous, high-quality employee training ensures that the required expertise will also be available in the future. In terms of sustain- ability, a key focus of the USU Group is therefore on human resources.

Social commitment

As a medium-sized software company, the USU Group considers its social commitment, particularly in the regional area, to be a particularly important aspect of sustainability. The company is aware of its social responsibility and wants to make a contribution to regional development. The company can only be successful in the long term in an intact environment in which appropriate living conditions prevail for employees and their families. Employees are also attaching increasing importance to soft factors such as social commitment and sustainability when choosing an employer. Due to the shortage of skilled workers in the IT sector, it is particularly important to communicate the company's inner DNA, consisting of a high understanding of values and a very good employee orientation, to the outside world. In addition to direct contact with the immediate environment, donations and sponsoring, USU also contributes to society in the form of material resources and expertise. This strengthens the company's public and social image and means that it is not only a good employer, but is also perceived as such.