10 Segment reporting

For management purposes, SoftwareOne is organised by geographical areas. The following regional clusters are the group’s operating segments:

DACH (Germany, Austria and Switzerland)
rEMEA (Rest of Europe, including Mauritius and South Africa)
NORAM (USA, Canada)
LATAM (Latin America)
APAC (Asia Pacific, including Dubai and Qatar)

No operating segments have been aggregated to reportable segments.

The CEO is the Chief Operating Decision Maker (CODM). He assesses each of the reported segments separately for the purpose of evaluating performance and allocating resources. Revenue from Software & Cloud Marketplace, revenue from Software & Cloud Services, contribution margin and EBITDA are the key performance indicators used for internal management and monitoring purposes of the group and are reported as segment results. The group allocates revenue and expenses to regions based on the end customer’s headquarter domicile since the region is responsible for the global client relationship. There are no intersegment revenues. Different average exchange rates are used in management reporting than for group consolidation purposes.

The segment reporting presents a breakdown of revenue from Software & Cloud Marketplace and Software & Cloud Services, directly attributable delivery costs, and indirectly attributable selling, general and administrative costs (“SG&A”). The group’s financing (including finance income and finance expenses) and income taxes are managed on a group basis and are not allocated to the operating segments.

The segment totals are reconciled to the figures reported in the consolidated income statement (column “Total”) as follows:

The column “Group” includes the group cost centres and shared services costs. The column “FX & Consolidation” eliminates the effect of using differing average foreign exchange rates in the segment reporting and consolidation effects. The column “Other” includes other reconciling items that are not allocated to the segments and group in internal reporting. They consist of costs affecting comparability in operating expenses such as M&A and earn-out expenses, integration expenses related to the Crayon acquisition, restructuring expenses for the cost reduction program, other non-recurring items which mainly relate to expenses for the strategic review and income from the release of provisions and an adjustment for the upfront recognition of multi-year licensing contracts in which the end customer has the right to change the software reseller during the contract term. Additionally, the column “Other” includes an adjustment for differences in accounting policies of IFRS 16 that are not reflected in the segments, an allocation of internal delivery costs to transition from the internal to the external reporting structure and, to a limited extent, minor reconciliation items.

For the six months ended 30 June 2025

in CHF 1,000	DACH	rEMEA	NORAM	LATAM	APAC	Total segments	Group	FX & Consoli- dation	Other	Total

Revenue from Software & Cloud Marketplace	85,460	75,911	23,640	17,337	40,179	242,527	2,884	10	–463	244,958
Revenue from Software & Cloud Services	63,833	72,300	33,487	28,681	43,376	241,677	88	–119	–19	241,627

Total revenue	149,293	148,211	57,127	46,018	83,555	484,204	2,972	–109	–482	486,585
Delivery costs	–47,406	–46,419	–20,222	–21,913	–28,214	–164,174	–220	131	164,262	n/a

Contribution margin 1)	101,887	101,792	36,905	24,105	55,341	320,030	2,752	22	163,780	n/a
SG&A	–36,825	–50,908	–24,157	–19,303	–27,700	–158,893	–52,639	104	–190,130	–401,558

EBITDA 2)	65,062	50,884	12,748	4,802	27,641	161,137	–49,887	126	–26,350	85,026

1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.

2) EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortisation.

The most relevant reconciliation items in the column “Other” were related to adjustments for items affecting comparability in operating expenses and further accounting-related adjustments:

in CHF 1,000	M&A and earn-out expenses	Crayon integration expenses	Cost reduction programme	Other non-recurring items 3)	IFRS 15 upfront revenue recognition	IFRS 16 leases	Allocation of delivery costs	Remaining	Total Other

Revenue from Software & Cloud Marketplace	–	–	–	–	–957	–	–	494	–463
Revenue from Software & Cloud Services	–	–	–	–	–	–	–	–19	–19

Total revenue	–	–	–	–	–957	–	–	475	–482
Delivery costs	–	–	–	–	–	–	164,247	15	164,262

Contribution margin 1)	–	–	–	–	–957	–	164,247	490	163,780
SG&A	–2,759	–2,580	–19,121	–4,042	44	8,621	–164,247	–6,046	–190,130

EBITDA 2)	–2,759	–2,580	–19,121	–4,042	–913	8,621	–	–5,556	–26,350

1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.

2) EBITDA from additional business line view reconciled to earnings before net financial items, taxes, depreciation and amortisation.

3) In addition to costs associated with the strategic review, other non-recurring items include income of TCHF 4,722 from released legal provisions, recorded as other operating income.

For the six months ended 30 June 2024

in CHF 1,000	DACH	rEMEA	NORAM	LATAM	APAC	Total segments	Group	FX & Consoli- dation	Other	Total

Revenue from Software & Cloud Marketplace	91,976	86,544	41,272	21,114	45,192	286,098	647	–1,472	–263	285,010
Revenue from Software & Cloud Services	64,654	67,814	43,868	32,439	31,267	240,042	3,272	1,398	–507	244,205

Total revenue	156,630	154,358	85,140	53,553	76,459	526,140	3,919	–74	–770	529,215
Delivery costs	–48,350	–50,275	–24,667	–24,741	–22,719	–170,752	–106	105	170,753	n/a

Contribution margin 1)	108,280	104,083	60,473	28,812	53,740	355,388	3,813	31	169,983	n/a
SG&A	–39,029	–58,160	–32,368	–20,018	–26,680	–176,255	–66,020	–371	–204,398	–447,044

EBITDA 2)	69,251	45,923	28,105	8,794	27,060	179,133	–62,207	–340	–34,415	82,171

1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.

2) EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortisation.

The most relevant reconciliation items in the column “Other” were related to adjustments for items affecting comparability in operating expenses and further accounting-related adjustments:

in CHF 1,000	Integration, M&A and earn-out expenses	Restruc- turing expenses 3)	Restruc- turing MTWO business	Other non-recurring items	Additional bad debt expenses 4)	IFRS 15 upfront revenue recognition	IFRS 16 leases	Allocation of delivery costs	Remaining	Total Other

Revenue from Software & Cloud Marketplace	–	–	50	–	–	80	–	–	–393	–263
Revenue from Software & Cloud Services	–	–	–797	–	–	–	–	–	290	–507

Total revenue	–	–	–747	–	–	80	–	–	–103	–770
Delivery costs	–	–	–	–	–	–	–	170,654	99	170,753

Contribution margin 1)	–	–	–747	–	–	80	–	170,654	–4	169,983
SG&A	–5,205	–23,630	–3,452	–707	–6,000	–4	8,305	–170,654	–3,051	–204,398

EBITDA 2)	–5,205	–23,630	–4,199	–707	–6,000	76	8,305	–	–3,055	–34,415

1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.

2) EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortisation.

3) Restructuring expenses include costs associated with the operational excellence and go-to-market initiative.

4) Expenses relate to overdue receivables over 180 days outstanding and under legal dispute, with success rate of collection by SoftwareOne taken down to zero.

Additional information for business lines

Even if the regions are the operating segments, SoftwareOne internally also reports total revenue, contribution margin and EBITDA by business lines "Software & Cloud Marketplace", "Software & Cloud Services" and "Corporate", which includes non-operational group costs, to the CODM.

The business line view presents a breakdown of total revenue, directly attributable external and internal delivery costs and indirectly attributable selling, general and administrative costs.

The column "Adjustments" includes adjustments for items affecting comparability in operating expenses. In contrast to the segment reporting, the IFRS 16 adjustment and minor reconciliation items are allocated to the business lines "Software & Cloud Marketplace" and "Software & Cloud Services".

For the six months ended 30 June 2025

in CHF 1,000	Software & Cloud Marketplace	Software & Cloud Services	Corporate	Total business unit	Adjustments	Allocation of delivery costs	Total

Total revenue	245,982	241,699	–	487,681	–1,096	–	486,585
Delivery costs	–29,970	–134,286	–	–164,256	8	164,248	n/a

Contribution margin 1)	216,012	107,413	–	323,425	–1,088	164,248	n/a
SG&A	–84,552	–86,541	–37,597	–208,690	–28,621	–164,248	–401,559

EBITDA 2)	131,460	20,872	–37,597	114,735	–29,709	–	85,026

1) Total revenue net of directly attributable external and internal delivery costs.

2) EBITDA from additional business line view reconciled to earnings before net financial items, taxes, depreciation and amortisation.

For the six months ended 30 June 2024

in CHF 1,000	Software & Cloud Marketplace	Software & Cloud Services	Corporate	Total business unit	Adjustments	Allocation of delivery costs	Total

Total revenue	285,754	244,155	–	529,909	–694	–	529,215
Delivery costs	–33,255	–137,395	–	–170,650	–	170,650	n/a

Contribution margin 1)	252,499	106,760	–	359,259	–694	170,650	n/a
SG&A	–109,949	–89,006	–38,442	–237,397	–38,997	–170,650	–447,044

EBITDA 2)	142,550	17,754	–38,442	121,862	–39,691	–	82,171

1) Total revenue net of directly attributable external and internal delivery costs.

2) EBITDA from additional business line view reconciled to earnings before net financial items, taxes, depreciation and amortisation.

Additional geographical information

Germany, the US, Switzerland and the Netherlands are the main geographical markets for SoftwareOne and represent approximately 46% (comparative period: 48%) of total revenue. Revenue is reported based on the customer's headquarter domicile:

in CHF 1,000	Germany	US	Switzerland	Netherlands	Other countries	Total
Revenue for the six months ended 30 June 2025	98,256	52,324	38,900	34,013	263,092	486,585
Revenue for the six months ended 30 June 2024	94,912	72,450	52,142	33,040	276,672	529,215

SoftwareOne has generated 37% of total revenues with the customer Microsoft (comparative period: 32%). The revenue derives from all segments. Microsoft is our only customer aggregating more than 10% of our total revenues.