NEXUS : Half-Year Report-2023

HALF-YEAR REPORT

01ST January to 30th of June 2023

__ Financial Highlights for the Half-Year 2023 and 2022

		30/06/2023	30/06/2022	Change
Sales and operating result	KEUR	KEUR	(in %)
Sales	111,842	100,032	11.8
Segment revenues NEXUS / DE (unconsolidated)	38,327	33,325	15.0
Segment revenues NEXUS / DIS (unconsolidated)	24,858	23,785	4.5
Segment revenues NEXUS / ROE (unconsolidated)	54,022	47,540	13.6
Domestic sales	58,326	52,544	11.0
Sales in foreign countries	53,516	47,488	12.7
EBITDA	22,276	20,823	7.0
EBITDA before acquisitions	23,328	-	-
EBIT	13,888	12,403	12.0
EBIT before acquisitions	15,373	-	-
EBT	14,729	11,956	23.2
EBT before acquisitions	16,170	-	-
Consolidated net income	10,734	9,151	17.3
Earnings per share (undiluted/diluted) in EUR	0.63	0.58	8.6
Ongoing development costs and depreciations
Capitalization of software developments	1,871	1,182	58.3
Total depreciation	8,388	8,420	-0.4
Acquisition-related depreciation from purchase price allocation	2,455	2,363	3.9
Assets and equity capital
Non-current assets	208,456	184,511¹⁾	13.0
Current assets	167,497	159,684¹⁾	4.9
Liquid assets including shortterm financial depositions	113,198	110,019¹⁾	2.9
Equity capital	245,180	238,946¹⁾	2.6
Share price (closing price, Xetra, in EUR)	56.50	50.00	13.0
Employees (Half-Year average)		1,623	1,534	5.8

¹⁾ Key date 31/12/2022

As rounded figures are used in this report, it is possible that the totals and calculated percentage figures may vary slightly.

1 Nexus AG / Half-Year Report 2023 - Financial Highlights

__ Letter to our Shareholders

Dear Shareholders,

The Nexus team can once again look forward to a strong first half of 2023. The emerging risks of high inflation rates, macroeconomic uncertainties and severe staff shortages at the beginning of the year have not had a significant impact on our results of operations to date.

On the contrary, we were able to observe a high dynamic of change and continued willingness to invest in our industry:

In Germany, the federal and state governments have adopted key points of the hospital reform, and the Federal Ministry of Health (BMG) has published a new digitization strategy. The German Hospital Society (DKG) and the National Association of Statutory Health Insurance Funds (GKV-Spitzenverband) have decided to extend the deadline for the ongoing "Hospital Future Act (KHZG)" investment program. It was agreed here that hospitals will be able to implement KHZG projects even after 2024, insofar as these were commissioned by the end of 2024 . Hospitals only have to indicate the status of their mandatory projects at the end of 2027.

In other countries, too - France, Poland, Switzerland - government projects have shifted and priorities have changed without reducing the general trend toward digitalization of the healthcare system.

Significant changes have also occurred on the supplier side. SAP and Oracle have discontinued parts of their healthcare offering, which has created a lot of uncertainty on the customer side as well as a lot of dynamics on the supplier side.

All in all, these announcements are very promising for our future sales development.

However, we also note that the overall mood is developing negatively in many countries - especially in Germany - and that uncertainty among our customers is increasing. NEXUS will also be affected by the obvious problems of weaker economic development, galloping bureaucratization and polarizing political decisions. All in all, this is a challenging starting point, which requires a high level of vigilance on the part of the entire NEXUS team.

Business performance

Therefore, we are very pleased that we can also show a strong increase in sales and earnings in the first half of 2023 and consequently successfully continue our strong growth history once again.

In the first half of the year, our sales increased by approx. 11.8% compared to the previous year, to KEUR 111,842. Earnings before interest and taxes (EBIT) improved by 23.2% to KEUR 14,729. Earnings before interest and income taxes (EBIT) increased by approx. 12.0% to KEUR 13,888 . With an EBITDA of approx. KEUR 22,276 and an operating cash flow of KEUR 25,460, we are again able to present a very strong result for the first half year. Earnings per share rose by 8.6% to EUR 0.63.

The sales figures include company acquisitions for the current year amounting to KEUR 798 and even KEUR 2,792 consolidated when the previous year's acquisitions are included. EBT was encumbered by KEUR 1,045 and KEUR 201 when the previous year is included to the consolidations of the current year

The EBT margin was 13.2% in the first six months compared to 12.0% in the previous year. Without acquisitions in 2023, the EBT margin would have increased to 14.6%. The EBITDA margin was 19.9% in

the first six months compared to 20.8% in the previous year. Excluding acquisitions in 2023, the EBITDA margin would have been 20.7%.

Currency effects were mainly due to the stronger Swiss franc. The Polish zloty remained largely stable compared to the previous year. Currency effects contributed a total of KEUR 1,146 to sales and KEUR 264 to EBITDA.

Market, projects and products

These are good results, especially against the background of the considerable expenses for the integration of the newly acquired companies.

The first half year was mainly dominated by development and marketing topics. After SAP and Oracle published changes to their product strategy, there will be completely new sales opportunities in some European markets in the coming years, which we want to take advantage of at an early stage. To prepare for this, we have already initiated special development and marketing programs in Q4-2022, which are intended to give us a competitive advantage here. We expect the programs to complement our development road map in 2023 and 2024.

We were therefore particularly pleased to win the HIS tender from Klinikum Landau - Südliche Weinstrasse GmbH with three locations. This is the first tender and decision of an SAP IS-H and Oracle i.s.h.med system replacement. We are proud that a decision has been made in favor of NEXUS.

The win of the overall contract of Sint Maartens Klinik in Woerden, NL is also of essential importance. With this order success, we have now succeeded in positioning ourselves in the Netherlands as a modern and modular alternative to the established providers.

In addition, we received major orders from the BG Hospital Group for our Vendor Neutral Archive (VNA), from the University Hospital Bonn and Ludwigshafen Hospital in the laboratory sector as well as from Warendorf in the special diagnostics sector. In the HIS sector, we were able to win tenders in Altenburg and Coppenbrügge.

The hospitals of the Poznan region in Poland chose NEXUS, and the hospitals of the UNEOS Group in France bought our HIS.

We also invested significant funds in new developments and business integrations in the first half of 2023. Our product innovations "NEXUS / ADVANCED REPORTING", "NEXUS / PORTAL" and "NEXUS / VNA" continues to be the focus of our development strategy. We have been working for some time on these new developments, which are now associated with the increased spread and acceptance of artificial intelligence (e.g., ChatGPT). The creation of findings texts and diagnoses based on image analysis, predefined terminology and experience knowledge (AI) represents one of the greatest potentials for efficiency in the healthcare system.. The goal of our developments is to produce findings significantly faster and of higher quality as well as to include the rapid development of AI.

It shows that we are able to realize strong growth, margin improvement and development projects at the same time in this phase. This is certainly thanks to our product and technology strength , which is currently paying off.

Acquisitions

In addition to concentrating on the organic expansion of our business, we were able to recruit four highly specialized teams in the first half

Letter to our Shareholders - Nexus AG / Half-Year Report 2023

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year 2023, which strengthen our NEXUS Germany division and our Swiss subsidiary as well as our "Laboratory" business segment

Since April 2023, we have held a 75% stake in NEXUS / SCHAUF GmbH, Langenfeld . The company creates patient management and queuing systems and thus ideally complements the NEXUS / product portfolio. The NEXUS platform strategy will be expanded to include integrated patient logistics in hospitals. The small, highly specialized team of NEXUS / SCHAUFF will be responsible for these topics nationally and internationally in the future.

In May 2023, we strengthened our position in the digitization of long- term care with the acquisition of 90% of the Swiss solution provider SmartLiberty SA, Le Landeron (Switzerland). The company is a leading provider of digital alerting and communication solutions and is a leading company in this field with approximately CHF 8.0 million in sales and more than 40 employees. The collaboration between NEXUS and SmartLiberty aims to accelerate the digitization of nursing homes in Europe thanks to innovative, comprehensive solutions. We have planned a budget for the integration and realignment of the company.

We acquired a 51% interest in MARIS Healthcare GmbH, in July 2023. The company is a successful provider of digital document routing with a focus on language processing. We plan to closely interlink our products and services and make new offers to the customer groups of both companies. Innovative and interoperable solutions have significant market opportunities, especially in the field of digital language processing and the writing of medical reports and doctor's letters. MARIS employs 18 people, and its management team will retain responsibility in the future.

We acquired vireq software solutions GmbH at the end of July 2023. The completion of the transaction (closing) is expected in the coming weeks. The company is a very successful software provider of laboratory communication solutions and has numerous installations in the largest laboratory chains in Germany and Switzerland. Vireq products are an ideal fit for our successful laboratory software portfolio. We will be able to closely interlink our products and services and make new offers to mutual customer groups in the fields of laboratory, genetics and pathology. Vireq employs approx. 80 people with total sales of €9.0 million; the existing management team will retain responsibility in the future.

Although we still have to make considerable investments in the realignment and integration of these recently acquired companies, we are convinced that the market and portfolio expansions will significantly strengthen our position in the e-health market. We are also looking forward to the ideas and creativity of our new co-workers.

great new orders in Germany, Poland, the Netherlands and France for NEXUS. The dynamics in our business are exciting. In addition, there are four interesting acquisitions that NEXUS was able to realize this year.

Against this background, we are therefore proud that the NEXUS team is once again in good shape on the result side. With approx. 12% revenue growth and 23% EBT improvement, we have a very convincing result and were able to continue our stable development over decades.

At the same time, we have taken on great challenges with the new orders and acquisitions. The replacement of competitive products in the Netherlands, Germany and Poland is demanding. Doing convincing work here will give us the opportunity to win numerous new orders. We will also have to work intensively on our new acquisitions to be able to follow up on the integration successes of the past. The investments required for this are challenging, but will also be worthwhile in the short term

In the second half of the year, we therefore want to concentrate on our new orders and the integration of the acquired companies, thus positioning ourselves even better in this dynamic market environment. The opportunities created by the state programs and the discontinuation of competitive systems are the best prerequisites.

We have to worry about the tense economic situation, which can also affect our business. It is also important that our customers are able to cope with the challenges associated with the high project load and the shortage of skilled workers. We know how tense the situation is with our customers and work together with them on solutions.

We are still very optimistic about the remaining year in 2023 and want to use the exciting momentum to achieve the goals of the entire year. The Nexus team is firmly committed to this and is looking forward to the task.

Warm regards,

Dr. Ingo Behrendt

Chief Executive Officer

__ Dr. Ingo Behrendt, Chief Executive Officer (CEO)

OUTLOOK: Exciting dynamics

The first half of 2023 was once again eventful and successful: the hospital reform in Germany; the changed priorities and timelines in the European digitization programs; the withdrawal of major competitors;

3 Nexus AG / Half-Year Report 2023 - Letter to our Shareholders

Economic key figures

2012 to 2023 __ Group Sales (6 months) in KEUR

120,000

100,000																																		11.8%
																														10.1%
80,000																												17.0%
																					8.2%	11.4%
60,000																					10.9%
												10.1%	12.2%
										24.4%
40,000
			19.5%	10.0%
20,000
0
																																	111,842
28,768	34,372	37,823	47,051	51,804	58,129	64,446	69,708	77,659	90,857	100,032
2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

2012 to 2023 __ EBT (6 months) in KEUR

16,000
14,000
																																	23.2%
12,000
																														20.4%
10,000
																											20.6%
8,000
																					10.9%	13.4%
6,000																					11.2%
												13.0%	19.9%
4,000												18.8%
			10.7%	11.0%
2,000
0
2,978	3,298	3,662	4,350	4,914	5,891	6,548	7,261	8,235	9,932	11,956	14,729
2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

2012 to 2023 __ EBITDA (6 months) in KEUR

25,000
																																		7.0%
20,000
																															13.2%
																													10.4%
15,000																										8.1%
																						25.6%
																			14.5%	13.2%
10,000
									29.4%				6.2%
							9.6%			9.0%
5,000
0
5,774	6,330	6,898	8,923	9,472		10,846	12,276	15,417	16,663	18,391	20,823	22,276
2012	2013	2014	2015	2016		2017	2018	2019	2020	2021	2022	2023

Letter to our Shareholders - Nexus AG / Half-Year Report 2023

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