NEXUS : Quarterly Statement-Q1-2023

QUARTERLY STATEMENT

01ST January to 31ST of March 2023

__ Financial Highlights for the 1st Quarter 2023 and 2022

		Q1 2023	Q1 2022	Change
Sales and operating result	KEUR	KEUR	(in %)
Sales	55,020	49,498	11.2
Segment revenues NEXUS / DE (unconsolidated)	19,074	16,373	16.5
Segment revenues NEXUS / DIS (unconsolidated)	12,633	11,860	6.5
Segment revenues NEXUS / ROE (unconsolidated)	25,761	23,396	10.1
Domestic sales	28,815	25,713	12.1
Sales in foreign countries	26,205	23,785	10.2
EBITDA	11,602	10,175	14.0
EBITA	8,721	7,161	21.8
EBIT	7,688	5,985	28.5
EBT	8,074	5,669	42.4
Consolidated net income	5,654	4,393	28.7
Cash flow from operating activities	22,447	27,971	-19.7
Earnings per share (undiluted ) in EUR	0.33	0.26	26.9
Earnings per share (diluted ) in EUR	0.33	0.26	26.9
Ongoing development costs and depreciations
Capitalization of software developments	936	591	58.4
Total depreciation	3,914	4,190	-6.6
Acquisition-related depreciation from purchase price allocation	1,033	1,176	-12.2
Assets and equity capital
Non-current assets	183,549	184,5111)	-0.5
Current assets	189,477	159,6851)	18.7
Liquid assets including shortterm financial depositions	129,158	110,0191)	17.4
Equity capital	243,434	238,9461)	1.9
Share price (closing price, Xetra, in EUR)	54.80	54.20	1.1
Employees (quarterly average)		1,601	1,504	6.4
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 / Quarterly Statement Q1 2023 - Financial-Highlights

__ Letter to our Shareholders

Dear Shareholders:

the first quarter of 2023 was characterized by an extraordinarily lot of new events and was tense in our industry. In Germany, the Ministry of Health has triggered intensive discussions with a new digitization strategy and reform proposals for hospital financing. On the vendor side, SAP and Oracle have discontinued parts of their healthcare offering, which has created a lot of uncertainty on the customer side. In addition, the temporary funding programs in Germany and France put customers under strong pressure to implement them. Overall, the current environment is characterized by uncertainty, especially since the topics of the war in Ukraine, inflation and shortage of skilled workers put an additional strain on the overall mood.

On the positive side, however, our industry, and NEXUS in particular, continues to be seen as a problem-solver and forward-thinking industry.

In the first quarter, we were also able to confirm this view in an

impressive manner thanks to a substantial amount of incoming orders. In Holland, we were able to win three large HIS tenders and significantly strengthen our market position. The hospitals of the Poznan region in Poland chose NEXUS, and the hospitals of the UNEOS Group in France bought our HIS.

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

In addition to the high level of incoming orders, we also managed to

significantly increase sales and operating result in the first quarter of

2023, thus successfully continuing our growth history.

Our sales increased by approx. 11.2% to KEUR 55,020 in the first drei months compared to the previous year. Our earnings before interest and taxes (EBIT) increased by approx. 28.5% to KEUR 7,688 and the EBT by 42.4% to KEUR 8,074. The result per share increased by 26.9% from EUR 0.26 (3M 2022) to EUR 0.33. We are able to

present an outstanding result for the first quarter with an EBITDA of approx. KEUR 11,602.

__ Dr. Ingo Behrendt Chief Executive Officer (CEO)

The first quarter was mainly dominated by development and marketing topics . Due to the changes that SAP and Oracle published 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.

In addition to these new opportunities, 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 diagnostic statements and diagnoses based on image analysis, predefined terminology and experience knowledge (AI) has been facilitated considerably. The goal of our developments is to produce findings significantly faster and of higher quality as well as to include the rapid expansion 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.

In the first months of 2023, we were also able to implement three company acquisitions that strengthen NEXUS / Germany, our national

2012 to 2023 __ Group Sales (Q1) in KEUR

60,000
					11.2%
50,000
					12.6%
40,000									13.0%
					9.6%
						10.7%
30,000									10.7%
					10.8%
						14.7%
20,000								22.4%
19.8%	12.0%
10,000
0

13,855	16,604	18,596	22,767	26,113	28,940	32,044	35,465	38,870	43,940	49,498	55,020
2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

Letter to our Shareholders - Nexus AG / Quarterly Statement Q1 2023

2

company NEXUS / SWITZERLAND and ifa systems AG. The subsidiary of NEXUS, ifa systems AG, was able to significantly accelerate its cloud solution development in March thanks to a technology acquisition (arkandus Software GmbH, Peissenberg).

Since April 2023, NEXUS has 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 a hospital. The focus is on continuous digital process support, time-savings and increasing patient comfort. The small, highly specialized team of NEXUS / SCHAUFF will support 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). SmartLiberty SA is a leading provider of digital alerting and communication solutions and is a leading company in this field with approximately TCHF 8,000 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.

Highlights Q1 2023- Business Development

• Strong sales increase in the first quarter +11.2%
• Major tenders won in Germany, the Netherlands, France and Poland
• Preparation (development / marketing) for tenders to replace discontinued systems

Our share price has developed less satisfactorily. Despite excellent results and good prospects, the price is hardly changing.. After a significant rise in the share price in April, it has fallen significantly again. Investors were in part irritated by statements made by the German Ministry of Health. It seems that a preference or even recommendation for a foreign e-health provider has been expressed,

which has burdened the share prices of the German e-health providers.

OUTLOOK: Take advantage of our momentum!

The first three months of 2023 have been extremely successful for us. Growth amounting to 11% and approx. a 28% increase in EBIT are

strong results!

In addition, there are interesting new orders; we have succeeded in receiving surprising orders, especially in Holland and Poland. The three company acquisitions that we were able to realize in the first few months round out this successful period.

We want to start into the further quarters of the year with this momentum. The opportunities created by the state programs and, more recently, by the discontinuation of competitive systems are the best prerequisites. One prerequisite is undoubtedly whether our customers have sufficient capacity to implement their projects. There are obviously challenges in this respect related to 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 momentum of the first quarter 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

2012 to 2023 __ EBIT (Q1) in KEUR

9,000
8,000
7,000
																																		28.5%
6,000
																															18.5%
5,000
																												16.5%
4,000																											11.7%
																				12.5%	17.9%
3,000
											21.8%	13.0%
2,000											17.3%
	26.1%	11.3%
1,000
0
1,291	1,628	1,812	2,126	2,590	2,926	3,293	3,882	4,335	5,049	5,985	7,688
2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

3 Nexus AG / Quarterly Statement Q1 2023 - Letter to our Shareholders

__ Interim Annual Report

REPORT ABOUT THE PROFIT, FINANCIAL AND ASSET SITUATION

NEXUS Group sales increased from KEUR 49,498 to KEUR 55,020 (+11.2%) in the first three months of the year 2023. The stable, positive sales development of NEXUS Group of recent years could be continued with that.

In the NEXUS / ROE Division, sales of KEUR 25,761 were achieved after KEUR 23,396 (3M-2022), i.e., approx. 10.1% higher than in the previous year. Additionally, sales increased from KEUR 16,373 (3M- 2022) to KEUR 19,074 (+16.5%) in the NEXUS / DE Division. In the NEXUS / DIS Division, sales of KEUR 12,633 were achieved after KEUR 11,860 (3M-2022) (+ 6.5%).

Based on the regional development of sales, we were able to increase sales in Germany by 12.1 % to KEUR 28,815 (3M-2022: KEUR 25,713). In international business, we achieved sales of KEUR 26,205 in the first quarter 2023 compared to KEUR 23,785 in the previous year (+10.2%). Sales in Poland (+51.9%) are increasing substantially, the Netherlands (+10.2%), France (8.7 %), Austria (+7.6%) and Switzerland (+6.1%) are increasing substantially. No significant sales were generated and consolidated by the companies acquired in the first quarter of 2023.

Consolidated earnings before income interest and taxes (EBIT) developed very positively. They improved by 28.5% to KEUR 7,688 (3M-2022: KEUR 5,985). Earnings before taxes rose even more sharply, rising from KEUR 5,669 to KEUR 8,074 (+42.4%). This included the significantly improved financial result due to rising interest rates. A value of KEUR 8,721 was achieved in EBITA and consequently was 21.8% over the value of previous year (3M-2022: KEUR 7,161). EBITDA reached KEUR 11,602 in the first quarter of 2023 (3M-2022: KEUR 10,175) and consequently was 14.0% higher than in the previous year. The non-recurring costs for the integration of the new companies amounted to KEUR 832 in the first quarter of 2023. The companies acquired in the first quarter of 2023 did not generate and consolidate a significant contribution to EBIT.

The cash flow from operating activities in the ersten quarter was KEUR 22,447 (3M-2022: KEUR 27,971 and consequently less than in the previous year. However, it still represents a high value. We had to pay significantly lower tax payments in the first months In the previous year. In addition, we have agreed on later payments for large-scale Hospital Future Act (KHZG) projects due to the funding regulations.

The consolidated surplus increased by 28.7% and amounted to KEUR 5,654 for the first quarter 2023 following KEUR 4,393 (3M- 2022). The undiluted result per share amounted to EUR 0.33 (previous year: EUR 0.26) (diluted: EUR 0.33; previous year: EUR 0.26). Cash resources including short-term financial assets amounted to KEUR 129,158 on 31/03/2023 (31/12/2022: KEUR 110,019).

Investments in tangible and intangible assets were made in the amount of KEUR 1,499 in the first quarter 2023 (3M-2022: KEUR 1,152). This includes KEUR 936 (3M-2022: KEUR 591) for capitalizing software developments.

The balance sheet total increased from KEUR 344,196 to KEUR 373,026 compared to 31/12/2022 (+8.4%). Intangible assets, goodwill and balanced-out deferred taxes add up to a total of KEUR 151,434 following previously KEUR 153,072 (31/12/2022). Receivables from customers amount to KEUR 37,900 following KEUR 38,154 on 31/12/2022.

EMPLOYEES

NEXUS Group employed an average of 1,601 people in the first three months (3M-2022: 1,504 employees).

EBITDA (Q1) in KEUR

14.0 % in comparison to the previous year

12,000
14.0%
9,000	12.0%
7.9%
	11.5%

6,000

3,000

0

7,548	8,419	9,086	10,175	11,602
2019	2020	2021	2022	2023

EBT (Q1) in KEUR

42,4% in comparison to the previous year

9,000

8,000

7,000
												42.4%
6,000
									14.1%
5,000
						18.2%
4,000						10.0%
3,000
2,000
1,000
0
3,823	4,205	4,970	5,669	8,074
2019	2020	2021	2022	2023

Interim Annual Report - Nexus AG / Quarterly Statement Q1 2023

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