SNP Schneider Neureither & Partner : Separate Non-financial Group Report 2023

Sustainability is no longer a future issue - it is relevant here and now. This is why we created the company's new Sustainability Department in October 2023. An initial goal in the coming months will be to work on a revision of the sustainability strategy and its consistent implementation. One purpose of this report is to serve as a transparency tool that highlights the current status of our sustainability activities and how they are derived from a materiality analysis and a review of the 17 United Nations Sustainable Development Goals. This report also serves as the foundation for our next steps in the development of our sustainability strategy for the entire SNP Group - across countries and regions.

We would like to draw particular attention to our employees worldwide, who are the foundation of our business success. Holding honest and direct discussions, facilitating an open dialogue, and our employees' satisfaction are the cornerstones of our corporate culture. We conducted another global employee survey in 2023, which confirmed that we are on the right track with the measures we have already introduced to optimize our opera- tions. As part of this process, we launched the global

feedback year "Let's talk @ SNP" aimed at all employees, with a variety of modules such as a feedback toolbox, feedback training sessions and workshops.

In addition, the importance of sustainability performance on the capital market is clear and we are responding to this trend by once again subjecting our separate non-financial Group report to a limited assurance engagement. The separate non-financial Group report and the audit certificate are made permanently accessible to the public.

Please consider this report an invitation to get in touch with us - we are looking forward to receiving your feed- back. We can only achieve sustainable success by working together.

Best wishes,

Dr. Jens Amail

CEO

This Separate Group Non-financial Report of SNP Sch- neider-Neureither & Partner SE (hereinafter SNP) provides information on the development of sustainability topics in the 2023 fiscal year (January 1 to December 31). The SNP Group has a total of 1,432 employees around the world. Germany is the largest location with 561 employees. This separate non-financial Group report follows the legal requirements of Section 315c and Sections 289c to e of the German Commercial Code (HGB) and covers, among other things, non-financial aspects of the Group which have been deemed essential for the business performance, operating results and position of our company (business relevance), and which have a significant impact on the fight against corruption and bribery as well as on employee issues and customer relationships (impact relevance). SNP did not use a framework for the reporting but rather focused on the requirements set out in the HGB and the specifications set out in the German Accounting Standard No. 20 (DRS 20). By fulfilling the requirements of the HGB and concretizing the German Accounting Standard No. 20 (DRS 20), SNP is able to report comprehensively on non-financial issues. Furthermore, we also voluntarily report on environmental and social concerns, which are not deemed material, as well as on respect for human rights.

In addition, in accordance with Article 8 of Regulation 2020/852 of the European Parliament and of the Council of the European Union (EU Taxonomy), SNP discloses the extent to which its activities are related to economic activities that qualify as environmentally sustainable under this Regulation.

We have identified no material risks in connection with our own business activities, business relationships or products and services that have, or would very likely have, a significant negative impact on the non-financial issues cited in Section 289c (2) HGB (including customer relationships). All further information on the risks and opportunities for SNP may be found in the risks and opportunities report in the combined management report, which is part of our annual report: https://investor-relations.snpgroup.com/en/

No significant non-financial performance indicators relevant to business activities were implemented in the reporting period that concerned the key aspects of combating corruption and bribery, employee matters or customer relationships within the meaning of Sections 289c (3) (5) and 315c (1) of the HGB.

The contents of this report have been subjected to an independent business audit with limited assurance, which was carried out by Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft. This audit firm has applied the "International Standard on Assurance Engagements 3000 (revised)." This report also includes references to SNP Group websites where further information can be found. These are not a component of this Separate Group Non-financial Report and have thus not been audited by Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft.

Since 1994, SNP has offered its customers products and services for the transformation of IT systems. We operate globally, with a strong focus on expanding into new markets and forging new partner and customer relationships.

In addition to the parent company, SNP is comprised of 33 subsidiaries. The consolidated financial statements which are published in our annual report provide a full list of the Group's subsidiaries. https://investor-rela-tions.snpgroup.com/en/publications/?language=en.

COMPANY PROFILE

SNP helps companies worldwide to tap into the full potential offered by their data and to embark on their very own journey to a digital future. With its Crystal- Bridge® data excellence platform and its BLUEFIELD™ approach, SNP has established a comprehensive industry standard, enabling faster and more secure restructuring and modernization of SAP systems and realizing data-driven innovations via the cloud.

Headquartered in Heidelberg, SNP generated Group revenue of € 203.4 million and an operating result (EBIT) of € 11.1 million in the 2023 fiscal year. SNP's customers are global corporations from all industries. SNP was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705). Since 2017, the company has operated as a European stock corporation (Societas Europaea/SE).

With the conversion under company law from a public limited company (AG) to a European Company (Societas Europaea/SE), SNP had a monistic management system with a Board of Directors as the unitary management and control body. The Managing Directors managed the day-to-day business of the company.

On September 27, 2023, the Annual General Meeting resolved to replace the previous single-tier management system with a dual-tier management system consisting of the Executive Board as the management body

and the Supervisory Board as the supervisory body. The corresponding amendment to the Articles of Association became effective on October 27, 2023.

No dividend has been distributed in the past five fiscal years. Further information on the company's key figures can be found in the combined management report as part of the Annual Report: https://investor-relations.snpgroup.com/en/publications/?language=en.

In terms of order entry, most of SNP's customers can be categorized as belonging to the manufacturing industry (process industry and discrete manufacturing), automo- tive, retail, consumer goods and capital-intensive industries (e.g. utilities, oil & gas).

Further information on the company's business model can be found in the "Our Business Model" chapter of the combined management report, which is published as part of our annual report: https://investor-relations.snpgroup.com/en/publications/?language=en.

DIALOGUE WITH STAKEHOLDERS

The term "stakeholder" refers to all groups of people who have a significant interest in the activities of the SNP Group and who may influence SNP or be influenced by SNP. Accurate knowledge of these groups and their needs assists us in positioning ourselves in the market as well as enabling us to address the needs of these stakeholders. Only through regular dialog with a large number of stakeholder groups can we take note of individual feedback and expand our relationships with these stakeholders.

Our approach to stakeholder engagement includes information-gathering via the relevant channels, in a purely monitoring capacity, as well as various opportunities for active stakeholder participation, in the form of meetings as well as communication via social platforms and at events hosted by SNP and other organi- zations. External communication is handled by our communications department.

Although SNP is not able to initiate direct communication with all stakeholder groups, inquiries from individual groups are very welcome and we would be happy to address them. Please contact our CSR department in this regard as well as for any other questions related to this report at investor.relations@snpgroup.com.

SNP's key stakeholder groups and the related forms of dialog are described below.

Employees

Our workforce includes permanent full-time employees of SNP SE and its subsidiaries as well as part-time and temporary employees. SNP employees are the key to our success. We greatly value dialogue with our employ- ees. For this reason, we hold regular meetings with our employees and offer them opportunities to provide feedback with the goal of incorporating their ideas and views into the development of new strategies. In addi- tion, we conducted a global employee survey in the fourth quarter of 2023 for the second time since 2022 in

order to identify further potential for improvement with regard to employee satisfaction and commitment and to implement optimization measures. We will use the results of this survey to derive and implement new optimization measures together with our employees, building on the measures that we implemented in 2022.

Customers and Partners

Our relationships with our customers and partner companies are in some cases of many years' standing. We engage in continuous dialogue with our customers and partner companies. Alongside our employees, they are among our most important stakeholders. At all times, we endeavor to offer our customers the highest possible level of product and service quality. The forms of dialogue which we pursue with our customers and partner companies include, on the one hand, project and customer meetings and, on the other, events such as Transformation World, in-house roadshows, Partner Days and other trade fairs and industry events.

In-house roadshows are held several times a year at our main sites in Europe, Asia and America. At these events, experts provide exclusive insights into innovative transformation approaches and present SNP software through live demonstrations. We also incorporate regular feedback from joint customer and partner meetings into our product development process.

the form of capital market reports, annual and financial reports and additional publications, we provide the players in the capital market with objective and up-to-date information. Interested parties can get in touch with the relevant contacts directly, via the e-mail addresses and telephone numbers listed on our corporate website (https://www.snpgroup.com/de/investor-relations).

basis of the regular dialogue with the aforementioned stakeholder groups. Our key internal stakeholders' expectations were included and the material concerns identified according to the following two dimensions:

As a listed company, we are highly integrated in the capital market. SNP therefore fulfills its obligation to inform existing and potential investors in a number of different ways and goes beyond this measure by offering additional means of communication such as press releases. We regularly exchange information with investors through capital market and telephone conferences as well as discussions with private and institutional investors.

Objective reporting on our business activities by third parties plays a significant role in building SNP's reputa- tion. This is especially critical for sustainable valuation and market positioning. Through our external reporting in

Since we are a company operating in the IT industry, the goods and services which we obtain from external suppliers mainly consist of software and IT services. However, we do purchase a small volume of physical goods. Dialogue with our suppliers mainly takes place in the form of supplier meetings.

MATERIALITY

An update of the materiality analysis first conducted in 2020 was implemented in 2023 in order to identify material sustainability issues for SNP and its stakeholders. The goal was to reassess the issues identified on the

The results of the 2023 materiality analysis update were compared with those from the previous year; only immaterial deviations were found. Consequently, there were no changes with regard to HGB relevance (see Table 1) compared with the previous year.

Procedure for the Materiality Analysis

As a first step, an extensive list of potential sustainability issues was drawn up. In 2023, a long list of sustainability topics of relevance to the SNP Group was drawn up in the run-up to Directive (EU) 2022/2464 of the European Parliament and of the Council of Decem- ber 14, 2022, amending Regulation (EU) No. 537/2014 and Directives 2004/109/EC, 2006/43/EC and 2013/34/ EU on corporate sustainability reporting (CSRD), which will be mandatory from 2024. As the topics considered relevant in the previous year corresponded closely with the concerns of this year, the list of relevant topics from the previous year's analysis was used again for this report. Various standards and guidelines were taken into account, e.g. requirements of the German Sustainability Code, the Sustainability Accounting Standards Board (SASB), Sustainable Development Goals (SDGs) and also issues identified in previous materiality analyses and studies covering sustainability challenges for the IT industry.

As a second step, SNP assessed the material sustainability topics. The assessment covered both the business relevance for SNP (Financial Materiality) as well as the impact relevance (Impact Materiality) on a 5-point scale in an ascending order of priority, so as to define the significance of business relevance and sustainability -related impacts. The assessment is based on short-, medium- and long-term views.

In order to validate and assess these identified issues, surveys were subsequently conducted in the form of questionnaires with selected key stakeholders. In addition, open-ended questions were asked regarding the key sustainability issues for the company's future business success. This year's report is also based on updates of the previous year's assessment by the same stakeholders or, in the case of personnel chang- es, their successors.

As a third and final step, based on the evaluation, these internal assessments were prioritized and the material concerns identified. As in the previous year, the materiality threshold was defined as having medium relevance (3.5) for both financial and impact materiality.

Validation

For validation purposes, the findings of this materiality analysis were presented to our CFO, who has been in office since June 2023. Following a critical discussion with the departments involved, which also included the Chief Sustainability Officer, who has been in office since October, a consensus was reached. The findings of the materiality analysis are presented in Table 1. The material sustainability areas are considered to be of greater relevance for SNP and its stakeholders. By contrast, issues not seen as material for SNP and its stakeholders are ascribed lower relevance. A report on these issues is nevertheless provided on a voluntary basis. Therefore, the reporting does not currently differentiate between concerns identified as material concerns and immaterial concerns. The materiality analysis conducted in 2023 will serve as the basis for developing a sound sustainability strategy. This will ensure that SNP continues to focus primarily on the material concerns in the future. Figure 1 shows the matrix of concerns that are material to our reporting in terms of their business relevance and environmental and social impact.

ISSUES

Business Ethics

Employees

Customer Relationships

Environment

Social issues

Respect for human rights

SUSTAINABILITY AREA

Corporate culture

Compliance

Corruption

Employee Retention and Development

Training and Education

Work-family balance

Diversity, equal opportunity and discrimination

Respect for Human Rights and Employment Regulations

Occupational Health and Safety

Customer Satisfaction and Quality

Information security and data protection

Climate protection/energy consumption

Travel

Conservation of resources

Social commitment

Supplier (social responsibility standards)

HGB RELEVANCE

Yes (greater)

Yes (greater)

Yes (greater)

Yes (greater)

Yes (greater)

Yes (greater)

Yes (greater)

No (lower)

No (lower)

Yes (greater)

Yes (greater)

No (lower)

No (lower)

No (lower)

No (lower)

No (lower)