2020 Annual Report of USU Software AG We the people of In best constitution A year – that was a virus. 2020 Annual Report · USU SOFTWARE AG A year – that was like no other. We, the people of USU SOFTWARE AG · 2020 Annual Report The 2020 fiscal year for USU: 2020 2019 IFRS figures in EUR thousand Sales ................................................................................................................. 107,327 .......... 95,630 Adjusted EBIT .......................................................................................................9,244 .............6,226 Adjusted consolidated earnings .........................................................................7,611 .............7,349 Adjusted earnings per share .................................................................................0,72 ...............0,70 EBITDA ................................................................................................................ 13,377 .............9,920 EBIT ........................................................................................................................7,021 .............4,054 Net profit ...............................................................................................................5,484 .............5,273 Earnings per share .................................................................................................0.52 ...............0.50 Shareholders‘ equity ......................................................................................... 61,770 .......... 60,198 Total assets ...................................................................................................... 115,466 ........ 104,460 Equity ratio ............................................................................................................53.5% .............57.6% Cash and cash equivalents .............................................................................. 18,534 .......... 10,413 Net cash from operating activities .................................................................. 17,736 .............9,518 Number of employees at year-end ........................................................................ 732 ................. 711 4 2020 Annual Report · USU SOFTWARE AG Key figures & Content Content Page Key figures 4 USU Software AG: In the 2020 fiscal year 6–69 Case Studies 70–74 Advisory Board of the USU Group 76 Report of the Supervisory Board of USU Software AG 77–81 Management Report on the Company and the Group for the 2020 Fiscal Year 82–112 Responsibility Statement 113 Consolidated Financial Statements 114–157 Consolidated Statement of Financial Position 114–115 Consolidated Statement of Comprehensive Income 116 Consolidated Statement of Cash Flows 117 Consolidated Statement of Changes in Equity 118–119 Notes to the Consolidated The 2020 fiscal year for USU: 2020 2019 Financial Statements 120–157 IFRS figures in EUR thousand Report on the Audit of the Consolidated Financial Statements and the Combined Sales ................................................................................................................. 107,327 .......... 95,630 Management Report 158–164 Adjusted EBIT .......................................................................................................9,244 .............6,226 Single-Entity Financial Statements 166–177 Adjusted consolidated earnings .........................................................................7,611 .............7,349 Statement of Financial Position 166–167 Adjusted earnings per share .................................................................................0,72 ...............0,70 Statement of Profit or Loss 168 EBITDA ................................................................................................................ 13,377 .............9,920 Notes to the EBIT ........................................................................................................................7,021 .............4,054 Annual Financial Statements 169–177 Net profit ...............................................................................................................5,484 .............5,273 Report on the Audit of the Annual Earnings per share .................................................................................................0.52 ...............0.50 Financial Statements and the Combined Shareholders‘ equity ......................................................................................... 61,770 .......... 60,198 Management Report 178–183 Total assets ...................................................................................................... 115,466 ........ 104,460 Management Board and Supervisory Equity ratio ............................................................................................................53.5% .............57.6% Board of USU Software AG 184 Cash and cash equivalents .............................................................................. 18,534 .......... 10,413 Financial Calendar 185 Net cash from operating activities .................................................................. 17,736 .............9,518 Glossary 186–189 Number of employees at year-end ........................................................................ 732 ................. 711 Legal Notice 190 5 USU SOFTWARE AG · 2020 Annual Report Day after day. Alone – and yet together. In the midst of professional life. Working from home. In At home. the midst of family life. Zoom. In the midst of school life. Homeschooling. In the midst of lockdown. That was everyday life for many employees in 2020 – the year of coronavirus. It was a very success- ful year for USU, despite all the handicaps, and we could just leave it at that. End of announcement. What happened in 2020 just wasn’t normal. We all struggled to keep it together. We wanted to know what was happe- ning to us. Where do we live, actually? When do we live? How do we live? Is there life after coronavirus? This is USU’s 25th annual report. Last year marked the 20th anniversary of USU’s IPO. Although the graphic designer joined later, the same team has designed the image section of our annual report for all those years. Through all the highs and lows. This time, it had planned to find out what USU and its stakeholders had in common and formulate it into a playful composition. That was the plan. But the pandemic wrote the script – and then there was also that financial scandal that shook our faith in the way certain institutions operate. 6 2020 Annual Report · USU SOFTWARE AG Twenty-four hours. This annual report is based on 24 hours of audiotape; a dozen interviewees agreed to take part in conversations that then, without exception, ran so very differently than anti- cipated. People talked about themselves in an incredibly soul-searching and very perso- nal way, very openly and very honestly. The interviews mostly took place during the short coronavirus break. So this annual report has turned out com- pletely differently to everything we’ve pu- blished previously. It’s a report that had to find its way as a stylistic device. And yet this report is a continuation of what has shaped the community around USU all along. Sooner or later, anyone who works among us, with us or for us and anyone we work for oursel- ves has the feeling of being part of a virtual family. In 2020, we called it One USU. That’s what it’s about for us. Firstly within USU and its subsidiaries, which are declaring their support for and calling themselves by the family name more than ever, and se- condly outside USU, thanks to the positive radiance of the corporate culture we live and nurture so intensively. We were overwhelmed by the great level of trust in our company – which showed in people’s willingness to talk about their own lives. All were very, very pensive. At the end of this report, perhaps you’ll feel as I do: It’s clear that USU is bigger than USU. And you can be sure that we’re very conscious of this responsibility. One USU. 7 USU SOFTWARE AG · Annual Report – 2020 Edition 8 2020 Annual Report · USU SOFTWARE AG Human dignity is indefinable. It’s incumbent on us all to protect and respect it. For USU Software AG, this means we don’t have to know everything we can know. People are first and foremost people. 9 USU SOFTWARE AG · 2020 Annual Report Dignity The sign of horror The Super Constellation n the beginning was the Word, and Business magazine The Economist im- the Word was – oh God! – a virus. mediately spoke of a “90% economy.” A Word of the virus raced around the 10% drop in global GDP. Would a com- world, its name alone spreading faster pany like USU Software AG with sales of Ithan the dangerous pathogen itself could EUR 100 million be able to hold on, indeed ever have managed: coronavirus. Virtually drop down to 90%, in step with the global speaking, the virus was economy? The opposite was the case. USU everywhere. The search grew. But the global economy shrunk. machines provided over It was a year of contradictions. It was a a billion hits quick as a year of chaos and a year of order, a year shot to anyone who as- of checking and a year of rioting, a year of ked, but delivered no so- fake news and a year of fact-checking, a lutions. While the infor- year of indignation and a year of conspira- mation raced around the cies, a year of banning and a year of testing. earth, the virus brought But above all it was a year of masks. Some- the entire real economy how everything could only be half seen