Interim report
Page 1
AMOT 130 150 2026 Half - year Financial Report FREQUENTIS FOR A SAFER WORLD 170
Page 2
Key figures Frequentis Group All figures in EUR million, except where otherwise stated. Earnings H1 2026 H1 2025 +/- in % +/- in EUR million 2025 Revenues 342.9 236.8 +44.8% +106.1 580.1 EBITDA 26.8 5.2 > +100. 0% +21.6 66.9 EBITDA margin 7.8% 2.2% +5.6 PP – 11.5% EBIT 15.6 -4.3 > +100. 0% +19.9 46.8 EBIT margin 4.6% -1.8% +6.4 PP – 8.1% Profit/loss for the period 12.1 -3.6 > +100. 0% +15.7 33.7 Earnings per share in EUR, basic 0.85 -0.32 > +100. 0% – 2.13 Earnings per share in EUR, diluted 0.84 -0.32 > +100. 0% – 2.12 Orders H1 2026 H1 2025 +/- in % +/- in EUR million 2025 Order intake 361. 7 309.0 +17.0% +52.6 680.2 Orders on hand at end of period 835.0 763.8 +9.3% +71.2 794.9 Statement of financial position 30 June 2026 30 June 2025 +/- in % +/- in EUR million 2025 Total assets 530.9 421.0 +26.1% +109.9 509.3 Shareholders‘ equity 202.0 164.5 +22.8% +37.6 196.8 Equity ratio 38.1% 39.1% -1.0 PP – 38.6% Net cash 107.4 68.3 +57.4% +39.1 104.7 No. of employees (average, in FTE) 1 2,895 2,548 +13.6% – 2,634 Cash flow statement H1 2026 H1 2025 +/- in % +/- in EUR million 2025 Cash flow from operating activities 16.3 0.0 > +100. 0% +16.3 49.1 Cash flow from investing activities -8.5 1 .7 > -100. 0% -10.2 -9.6 Cash flow from financing activities -14.8 -3 .2 > -100. 0% -11.6 -7.6 Cash and cash equivalents at end of period 91.2 63.7 +43.2% +27.5 97.2 Note: Minimal arithmetical differences may arise from the application of commercial rounding to individual items and percentages. 1 Average number of employees expressed as full-time equivalents (FTE).
Page 3
Frequentis Group Half-Year Financial Report 2026 Preface 3 Preface Ladies and gentlemen, In the first six months of 2026, we achieved numerous milestones relating to revenues and earnings that were originally planned for the second half of the year. Consequently, there was a corresponding shift in revenues and earnings to the first half of the year. In addition, Frequentis benefited from the high level of orders on hand at year-end 2025 and continued strong order intake. As a result, revenues rose 44.8% and EBIT was positive at EUR 15.6 million. Due to Frequentis’ stable business model as a provider of systems and solutions for safety-critical applications, demand remains high. Order intake increased by 17.0% and orders on hand by 9.3%, paving the way for further growth. Overview The first half of 2026 exceeded our expectations and confirms the growth path we have embarked on. We would like to thank our employees, whose commitment and flexibility played a key part in the successful acquisition of new orders and progress with our projects. • Order intake increased by 17.0% to EUR 361.7 million (H1 2025: EUR 309.0 million) • Orders on hand were 9.3% higher at EUR 835.0 million at end-June 2026 (June 2025: EUR 763.8 million) • Revenues rose by 44.8% to EUR 342.9 million (H1 2025: EUR 236.8 million) • EBIT improved to EUR 15.6 million (H1 2025: EUR-4.3 million due to the typical seasonal pattern) • The equity ratio was 38.1% (June 2025: 39.1%) • The net cash position improved to EUR 107.4 million (June 2025: EUR 68.3 million). Growth trajectory remains intact The strong trend in order intake continued in the first half of 2026, with an increase of 17.0% to EUR 361.7 million. For 2026 as a whole, we anticipate that the Frequentis Group will report higher order intake than in 2025. That is sustained evidence of the company’s growth trajectory. Orders on hand increased by 9.3% to EUR 835.0 million as at 30 June 2026 and therefore exceeded EUR 800 million for the first time. This high level of capacity utilisation provides a sound basis for the ongoing development of our business. Therefore, we are continuously extending our teams and recruiting additional skilled staff. The average number of full-time equivalents (FTEs) rose 13.6% to 2,895 in the first six months of 2026 – an increase of around 350 compared with the first half of 2025, when we had 2,548 FTEs (average for FY 2025: 2,634 FTEs). In the first half of 2026, revenues increased by 44.8% (EUR 106.1 million) to EUR 342.9 million (H1 2025: EUR 236.8 million). The revenue growth is deemed to be entirely organic. The performance in the first half of 2026 was due to the partial shift in the typical seasonal business pattern. Normally, revenues and earnings are higher in the second half of the year than in the first half. In recent years, the average ratio of revenues in the first and second six months was around 43% : around 57% – for the Frequentis Group and in both segments. Looking at the full year, this will probably be different in 2026. This shift in the seasonal pattern in 2026, which we consider to be temporary, is due to the accelerated execution of some major projects.
Page 4
4 Preface Frequentis Group Half-Year Financial Report 2026 The income and expense picture was as follows: other operating income declined, partly due to changes in the US dollar exchange rate. The cost of materials and purchased services increased by 88.0% in the first half of 2026, which was higher than the percentage rise in revenues. The increase was mainly attributable to more material-intensive projects in the Americas and Europe. By contrast, personnel expenses rose by 15.2%, which was less than the relative rise in revenues. The other operating expenses increased by 35.8%, driven principally by the following items: impairment of receivables and contract assets (EUR +5.3 million year-on-year) and changes in project-related provisions (EUR +4.9 million). The increase in impairment losses on receivables and contract assets was mainly attributable to the impairment of past-due receivables relating to a project in the Air Traffic Management segment. The project-related provisions contain, among other things, project costs for which provisions are recognised due to the excess of estimated future expenses over revenues. EBITDA was EUR 26.8 million in the first half of 2026 (H1 2025: EUR 5.2 million) and EBIT was EUR 15.6 million (H1 2025: EUR -4.3 million). The Air Traffic Management segment posted positive EBIT of EUR 18.9 million, compared with EUR -7.4 million in the prior-year period, while the Public Safety & Transport (PST) segment reported EBIT of EUR -3.3 million (H1 2025: EUR 2.9 million). In view of the promising market opportunities, in the PST segment we are investing specifically in MCX (mission- critical services for the emergency services) and FRMCS (Future Railway Mobile Communication System), even though this is currently weighing on EBIT. These upfront investments are necessary to enable us to offer our customers timely, market-ready solutions and tap into future business potential. Alongside these investments, the development of earnings in the PST segment was affected by cost increases in some projects, especially in the Public Transport business domain, and delays in order intake. As in the past, the second half will therefore be far more relevant for full-year profitability in the PST segment. Our financials remain solid. Total assets amounted to EUR 530.9 million at end-June 2026, which was 26.1% higher than at end-June 2025, and equity rose by 22.8% to EUR 202.0 million (June 2025: EUR 164.5 million). The equity ratio was 38.1% at end-June 2026 (June 2025: 39.1%). The net cash position was EUR 107.4 million at end-June 2026 (June 2025: EUR 68.3 million). An 11.1% higher dividend of EUR 0.30 per share was paid to shareholders for 2025. Forecast for 2026 The uncertainties and unpredictabilities remain unchanged. Here is an overview of the most relevant points: • The war in Ukraine is in its fifth year • Other conflict hotspots such as the current situation in the Middle East are causing continued geopolitical tensions • The announcement and introduction of customs tariffs and protectionist measures • Shortages on the IT hardware market • Disruption of the current disinflation process More detailed information on some of the above points is provided below: Since the first quarter of 2025, some countries have announced and implemented new trade tariffs and protectionist measures. The resulting distortion of both imports and exports has a significant effect on international trade and could have major economic consequences. Frequentis considers that it is well-positioned in this respect as it has many years of experience with the impact of national and other official regulations, customs tariffs, and other measures. In addition, in countries such as the USA and Australia local value-added accounts for a high proportion of local revenues, so customs tariffs, for example, should only have a limited effect on Frequentis.
Page 5
Frequentis Group Half-Year Financial Report 2026 Preface 5 As a result of the worldwide AI boom and the data centres required by AI providers, since the end of 2025 there have been massive shortages on the global IT hardware market (including chips, servers, electronic components). The full extent is now becoming apparent in 2026. In the project business, Frequentis has always had to address extensive challenges and dynamic changes in external influences and adapts constantly to the relevant conditions. The disinflation process could be negatively affected by a range of internal and external factors, leading to a renewed rise in inflation. It is not possible to make a reliable estimate of exactly how the issues outlined above will affect revenues and costs, e.g. travel expenses, higher salaries, delays in passing on price rises to customers, and the potential impact of shortages on the IT hardware market. Expenses for company-funded research & development amounted to EUR 19.2 million in 2025. It should be noted that in 2025 the customer-funded rate was higher than in previous years. It is anticipated that in 2026 expenses for company-funded research & development will be around 6% of revenues as usual. Capital expenditure (capex) was EUR 13.8 million in 2025 and is expected to be around EUR 15 million in 2026. Depending on the aspects outlined above, Frequentis has the following targets for 2026 compared with 2025: • Increase revenues by about 15% • Increase order intake • EBIT margin of around 7.0%. Vienna, 7 August 2026 Best regards, Norbert Haslacher Chairman of the Executive Board Monika Haselbacher Member of the Executive Board Peter Skerlan Member of the Executive Board Karl Wannenmacher Member of the Executive Board
Page 6
6 The share Frequentis Group Half-Year Financial Report 2026 The share Shareholder structure Frequentis’ core shareholder is Hannes Bardach. He holds around 68% of the shares (about 8% directly and about 60% indirectly through Frequentis Group Holding GmbH). B&C Holding Österreich GmbH holds about 8% of the shares. The free float is approximately 24%, mainly investors from Germany, Austria, and other European countries. Analysts BankM (Daniel Großjohann, Roger Becker), Berenberg (Wolfgang Specht), Erste Group (Daniel Lion), and ODDO BHF (Elias New) regularly write analyses and notes on Frequentis. Dividend and dividend policy The Annual General Meeting on 19 June 2026 approved the proposal put forward by the Executive Board and Supervisory Board to pay a dividend of EUR 0.30 per share for 2025 (2024: EUR 0.27 per share). That is a further rise of 11.1%. As a result, around EUR 4.0 million was paid out, giving a dividend yield of 0.41% based on the closing price on the Vienna Stock Exchange at end-December 2025 (2024: 0.97% based on the closing price at end-December 2024). Frequentis’ dividend policy is to pay out around 20-30% of adjusted profit of the Frequentis Group after tax each year – bearing in mind the annual ceiling of around 40% of the net profit of Frequentis AG reported in the individual financial statements of Frequentis AG prepared in compliance with the Austrian Commercial Code (UGB). Treasury shares As at 30 June 2026, Frequentis AG held 5,081 treasury shares (31 December 2025: 9,920; 30 June 2025: 3,920).
Page 7
Frequentis Group Half-Year Financial Report 2026 The share 7 Key share data XETRA Frankfurt Vienna Stock Exchange Closing price on 30 June 2026 in EUR 60.10 60.30 Lowest price (closing price) in H1 2026 in EUR 60.10 60.30 Highest price (closing price) in H1 2026 in EUR 86.00 84.80 No. of shares outstanding as at 30 June 2026 in millions 13.28 13.28 Market capitalisation as at 30 June 2026 in EUR million 798.1 800.8 Share price performance in H1 2026 (30 June 2026 vs. 31 December 2025) -17.4% -16.9% Share price performance since the IPO in May 2019 (30 June 2026 vs. issue price of EUR 18.00) +233.9% +235.0% Index performance in H1 2026 (30 June 2026 vs. 31 December 2025) DAX: +2.1% ATX: +21.4% Investor Relations contact Frequentis’ investor relations website at www.frequentis.com/en/ir provides extensive information for shareholders: press releases, presentations, videos, financial reports, a share chart, the financial calendar, and information on corporate governance. Contact: Stefan Marin, +43 1 81150 1074, investor@frequentis.com
Page 8
Group Management Report as at 30 June 2026
Page 9
Frequentis Group Half-Year Financial Report 2026 Group Management Report as at 30 June 2026 9 Economic environment Compared to other sectors of the economy, the areas in which the Frequentis Group operates (provider of high- tech systems and solutions for safety-critical national command and control centres for civil and military air traffic management, emergency services, rail and water transport) have relatively low cyclical exposure. Frequentis’ business performance would be adversely affected by a significant global decline in one of these five areas. Frequentis cannot completely avoid general economic developments. However, it supplies safety-critical infrastructure, which cannot be dispensed with and has to be upheld and maintained even in periods of crisis. The International Monetary Fund (IMF) published its World Economic Outlook Update in July 2026. Global growth was 3.5% in 2025. Despite the ongoing geopolitical tensions and trade barriers, the IMF is projecting growth of 3.0% in 2026. The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries’ exposure to the war and position in the technology value chain. The IMF is projecting economic growth of 2.3% in the USA in 2026 and a growth rate of 0.9% for the euro zone. Growth rates differ within the euro zone: Spain remains the leader with growth of 2.1%, followed by Germany (0.7%), France (0.6%), and Italy (0.5%). The IMF estimates that economic growth in the UK will be 1.0% in 2026. For the emerging and developing economies in Asia, the projection is 5.0% growth in 2026. The growth forecast for Latin America and the Caribbean is 2.4%, while for the Middle East and Central Asia it is 0.7%. Business performance Numerous milestones affecting revenues and earnings that were originally planned for the second half of the year were achieved in the first six months. Consequently, there was a corresponding shift in revenues and earnings to the first half of the year. In addition, Frequentis benefited from the high level of orders on hand at year-end 2025 and continued strong order intake. As a result, revenues rose 44.8% and EBIT was positive at EUR 15.6 million. The performance in the first half of 2026 was due to the partial shift in the typical seasonal business pattern. Normally, revenues and earnings are higher in the second half of the year than in the first half. This shift was the result of the accelerated execution of some major projects and cannot be considered sustainable. Due to its stable business model as a global provider of high-tech systems and solutions for national command and control centres in the safety-critical sector, demand remains high. Order intake increased by 17.0% and orders on hand by 9.3%, paving the way for further growth.
Page 10
10 Group Management Report as at 30 June 2026 Frequentis Group Half-Year Financial Report 2026 Significant events in the first half of 2026 Nemergent, Spain Frequentis is reinforcing its mission-critical communications business by becoming the majority shareholder in Nemergent Solutions S.L., Spain (stake increased from 24.83% to 51.00% in July 2026). These initiatives will enhance the MissionX ecosystem by adding resilience, multi-network connectivity, and European MCX technology and support applications for public safety, critical infrastructure, defence, and the rail sector. Impact of the geopolitical situation In addition to the war in Ukraine, which has been going on since February 2022 and is now in its fifth year, further troublespots such as the Middle East conflict could potentially have a global impact. Moreover, there are longer-term crises such as the climate crisis and the recurrent distortion and price volatility on the energy market and the market for IT and electronic components. It is therefore possible to talk about a polycrisis, where individual crises have a compound effect. At the same time, Europe, in particular, is stepping up investment in military infrastructure and public safety. The crises affect Frequentis’ internal and external stakeholders in many different ways. No revenues were generated with Ukraine, the Russian Federation, Belarus, or in the Palestinian territories. Since 2022, the conflicts have had an indirect effect through higher prices, especially for electricity, gas, and fuels. As a consequence, prices of other everyday products have increased, leading to correspondingly high salary rises. Due to the widespread global drop in inflation rates, salary rises in 2025 were lower than in 2024. Moderate salary increases are expected in 2026. Given the volatile geopolitical situation and the resulting inflation, it is still too early to make any predictions about salary rises in 2027. As a result of the worldwide AI boom and the data centres required by AI providers, since the end of 2025 there have been massive shortages on the global IT hardware market (including chips, servers, electronic components). The full extent is now becoming apparent in 2026. So far, the impact has been cushioned by a range of measures (increasing inventories, advance purchases of server models for which there is frequent demand, incorporating price adjustment clauses for IT hardware into project contracts). Nevertheless, the effects are being felt. Order intake Order intake in the Frequentis Group was EUR 361.7 million in the first half of 2026, an increase of 17.0% (EUR 52.6 million) compared with the first half of 2025, when order intake was EUR 309.0 million. For the 2026 financial year as a whole, it is assumed that order intake in the Frequentis Group will increase compared with 2025. The distribution of order intake was as follows: the Air Traffic Management segment accounted for 73% (EUR 264.5 million; H1 2025: 52%, EUR 160.5 million) and the Public Safety & Transport segment accounted for 27% (EUR 97.2 million; H1 2025: 48%, EUR 148.6 million). The following order intake highlights from the first half of 2026 also include selected project orders which have only been announced this year at the customer’s request.
Page 11
Frequentis Group Half-Year Financial Report 2026 Group Management Report as at 30 June 2026 11 Highlights of order intake in the Air Traffic Management segment ATM Civil, Qatar: In collaboration with Frequentis, Bayanat Engineering Qatar, as prime contractor, is delivering the X10 voice communication system to Qatar Civil Aviation Authority for the new national Qatar Air Traffic Control Centre, which has 40 working positions for air traffic controllers. As part of a unified OneATM platform, this solution supports digitalisation of air traffic management in Qatar and improves safety, capacity, and operational efficiency. In addition, Qatar Civil Aviation Authority has awarded Bayanat Engineering Qatar the contract to deliver an integrated Frequentis smartTOOLS display system for 78 working positions in control centres and towers. This solution brings together weather, aerodrome, runway, and support systems on a uniform interface, improves the situational awareness of air traffic controllers, and supports the installation of a fully connected OneATM ecosystem in Qatar. Brazil: The Brazilian Department of Airspace Control (DECEA) has awarded Frequentis the contract to expand the nationwide ATM network solution to the country’s Amazon region. The project comprises modernising the communication infrastructure, including satellite communication, and strengthens safe and reliable air traffic management in one of the world’s largest and most challenging airspaces. This contract underlines the long- standing partnership between DECEA and Frequentis, which has been advancing the phased modernisation of Brazil’s ATM infrastructure for more than ten years. Florida, USA: Bartow Executive Airport is installing the Frequentis X10 communication platform at its digital tower. This fully integrated solution combines voice communication, recording, and terminal information, including weather data. The project strengthens security, availability, and efficiency and also serves as a test and innovation platform for future digital tower applications in the USA. ATM Defence, Austria: The Federal Ministry of Defence (BMLV) has awarded Frequentis the contract to modernise the military air traffic radio system. The project aims to upgrade the communication infrastructure for military air traffic control and airspace surveillance, ensuring reliable, encrypted operations with high availability for the coming decades. Highlights of order intake in the Public Safety & Transport segment Public Safety: Order intake developed positively, confirming Frequentis’ strong market position, especially in several European markets. New projects and long-term service and maintenance contracts were acquired, especially in the UK and the Nordic countries. Modernisation and upgrade projects in Central Europe also made a significant contribution to the positive business trend, highlighting the ongoing need for high-performance, future-proof communication solutions for authorities and organisations with safety-critical operations. Public Transport, global: The proof-of-concept contracts relating to FRMCS (Future Railway Mobile Communication System) show that customers are stepping up their focus on this new technology. Moreover, within the portfolio of solutions for rail incident and crisis management, major orders were acquired to upgrade customers’ operational platforms. Europe: A key account customer has awarded Frequentis a long-term upgrade and maintenance contract for the transformation phase in the transition from GSM-R technology to FRMCS. The increasing relevance of the requirements of NIS-2 (Network and Information Security Directive 2) for our customers is providing additional impetus for investment in safe and resilient systems. This is evidenced by the orders awarded to Frequentis because Frequentis solutions meet the high requirements for safety, security, and reliable operation of critical infrastructure.
Page 12
12 Group Management Report as at 30 June 2026 Frequentis Group Half-Year Financial Report 2026 Maritime: In the reporting period, the maritime business was dominated by strategically significant follow-on orders, the extension of long-term maintenance contracts, and modernisation projects. The extension of the maintenance contract for the Swedish coastal radio network for several years strengthens the basis for recurring service revenues. Further orders from coastguards, shipping authorities, and maritime rescue organisations in Europe, for example in Germany and the Netherlands, demonstrate the strong customer loyalty, the relevance of Frequentis solutions for safety-critical maritime applications, and the company’s sustained strong market position. Orders on hand Orders on hand totalled EUR 835.0 million as at end-June 2026, an increase of 9.3% (EUR 71.2 million) compared with end-June 2025 (EUR 763.8 million). The Air Traffic Management segment accounted for around 61% of total orders on hand (June 2025: 57%) and the Public Safety & Transport segment for 39% (June 2025: 43%). Revenues and operating performance In the first half of 2026, revenues increased by 44.8% (EUR 106.1 million) to EUR 342.9 million (H1 2025: EUR 236.8 million). The revenue growth is deemed to be entirely organic. The Air Traffic Management segment grew revenues by 59.4% to EUR 263.4 million. In the Public Safety & Transport segment, revenues were 11.2% higher at EUR 79.5 million. The revenue split between the Air Traffic Management and Public Safety & Transport segments was 77% : 23% in the first half of 2026 (H1 2025: 70% : 30%). The breakdown of revenues by region in the first half of 2026 was as follows: • Europe 48% (H1 2025: 61%) • Americas 39% (H1 2025: 23%) • Asia 7% (H1 2025: 9%) • Australia / Pacific <6% (H1 2025: 6%) • Africa <1% (H1 2025: 1%) • <1% (H1 2025: <1%) were not allocated to a region. The change in inventories of finished goods and work in progress was EUR 6.9 million in the first six months of 2026 (H1 2025: EUR 0.9 million). The increase was mainly attributable to a more material-intensive project in the Americas region. Own work capitalised declined to EUR 0.1 million in the first half of 2026 (H1 2025: EUR 0.4 million). The other operating income decreased to EUR 5.1 million (H1 2025: EUR 8.3 million), driven principally by changes in the fair value of forward exchange contracts (EUR -3.3 million) and foreign currency translation (EUR +1.5 million). The changes in both items were principally due to changes in the US dollar exchange rate. Total income (operating performance) increased by 44.1% (EUR 108.6 million) to EUR 355.0 million in the first half of 2026 (H1 2025: EUR 246.4 million).
Page 13
Frequentis Group Half-Year Financial Report 2026 Group Management Report as at 30 June 2026 13 Earnings The cost of materials and purchased services increased by 88.0% to EUR 109.8 million (H1 2025: EUR 58.4 million), which was higher than the percentage rise in revenues. The increase was mainly attributable to more material-intensive projects in the Americas and Europe. Personnel expenses rose 15.2% to EUR 165.9 million in the first half of 2026 (H1 2025: EUR 144.1 million), which was below the relative rise in revenues. The higher expenses were due to an increase in the headcount and salary rises. The other operating expenses were 35.8% higher at EUR 52.5 million in the first half of 2026 (H1 2025: EUR 38.7 million). This was principally due to the following items: impairment losses on receivables and contract assets (EUR +5.3 million year-on-year), the change in project-related provisions (EUR +4.9 million) and changes in the fair value of forward exchange contracts (EUR +2.2 million). By contrast, currency translation differences were lower (EUR -3.4 million). The increase in impairment losses on receivables and contract assets was mainly attributable to the impairment of past-due receivables relating to a project in the Air Traffic Management segment. The project-related provisions contain, among other things, project costs for which provisions are recognised due to the excess of estimated future expenses over revenues. The changes in the fair value of forward exchange contracts and currency translation differences mainly result from fluctuations in the US dollar exchange rate. Travel expenses increased year-on-year to EUR 8.7 million (H1 2025: EUR 7.9 million), which was 2.6% of revenues in the first half of 2026 (H1 2025: 3.3% of revenues). The licence fees of EUR 5.2 million (H1 2025: EUR 3.5 million) are mainly for commercial business software. EBITDA (earnings before interest, taxes, depreciation, amortisation, and impairment losses) increased to EUR 26.8 million in the first six months of 2026 (H1 2025: EUR 5.2 million). The EBITDA margin (relative to revenues) was 7.8% in the first half of 2026, compared with 2.2% in the first half of 2025. Depreciation and amortisation increased to EUR 11.1 million (H1 2025: EUR 9.5 million). As a result of the changes outlined above, EBIT increased by EUR 19.9 million to EUR 15.6 million in the first six months of 2026 (H1 2025: EUR -4.3 million). The EBIT margin (relative to revenues) was 4.6%, compared with - 1.8% in the first half of 2025. For further information, see the first two paragraphs in ↗ Business performance. Financial income was EUR 0.8 million in the first half of 2026 and thus higher than in the first half of 2025 (EUR 0.5 million). Financial expenses (which also include interest on leases in accordance with IFRS 16) increased to EUR 1.2 million (H1 2025: EUR 1.1 million). Earnings of investments accounted for at equity dropped to EUR 0.1 million (H1 2025: EUR 0.3 million). Frequentis made a profit before tax of EUR 15.8 million in the first half of 2026 (H1 2025: loss before tax of EUR 4.6 million). Income tax expense was EUR 3.7 million (H1 2025: income of EUR 1.0 million – the income tax income in the first half of 2025 was due to deferred taxes). Frequentis made a profit of EUR 12.1 million in the first half of 2026 (compared with a loss of EUR 3.6 million H1 2025). Basic earnings per share were EUR 0.85 in the first half of 2026 (H1 2025: EUR -0.32) and diluted earnings per share were EUR 0.84 (H1 2025: EUR -0.32).
Page 14
14 Group Management Report as at 30 June 2026 Frequentis Group Half-Year Financial Report 2026 Employees The number of employees increased by 13.6% to an average of 2,895 FTEs in the first half of 2026 (H1 2025: 2,548 FTEs; the average for FY 2025 was 2,634 FTEs). Around 1,300 FTEs, which was about 45% of the total, were employed in Austria. Asset and capital structure Total assets increased by 4.2% to EUR 530.9 million as at end-June 2026 (end-December 2025: EUR 509.3 million; end-June 2025: EUR 421.0 million), partly due to an increase in contract assets and higher inventories. At end-June 2026, the equity ratio was 38.1% (end-December 2025: 38.6%, end-June 2025: 39.1%). Equity increased by EUR 5.2 million to EUR 202.0 million as at end-June 2026 (end-December 2025: EUR 196.8 million, end-June 2025: EUR 164.5 million). The net cash position (cash and cash equivalents and time deposits less liabilities to banks and other financial liabilities) was EUR 107.4 million as at end-June 2026, which was above the net cash position of EUR 104.7 million recorded at the end of December 2025 (end-June 2025: EUR 68.3 million) Non-current assets amounted to EUR 109.6 million at the end of June 2026 (end-December 2025: EUR 104.4 million). The three largest items here were property, plant and equipment, which totalled EUR 75.0 million (end- December 2025: EUR 69.0 million), intangible assets which amounted to EUR 11.6 million (end-December 2025: EUR 12.6 million), and deferred tax assets, which totalled EUR 10.0 million (end-December 2025: EUR 8.0 million). The increase in property, plant and equipment is due, among other factors, to new rental agreements for office premises and warehouse space. Current assets totalled EUR 421.3 million at the end of June 2026 (end-December 2025: EUR 404.9 million). The most important item here is trade accounts receivable, which amounted to EUR 112.6 million (end-December 2025: EUR 144.7 million). The reduction resulted principally from the settlement of receivables from the second half of 2025. The second most important item was cash and cash equivalents, including time deposits, which amounted to EUR 107.5 million (end-December 2025: EUR 111.3 million). The third item in order of importance comprises contract assets, which amounted to EUR 98.8 million (end-December 2025: EUR 68.2 million). The increase in this item resulted from an increase in work commenced. The rise in inventories to EUR 64.5 million (end-December 2025: EUR 51.8 million) was driven principally by an increase in work in progress for a major customer project in the Americas region. On the liabilities side, the largest item comprised current liabilities, which amounted to EUR 235.2 million as at end-June 2026 (end-December 2025: EUR 222.1 million). Thereof, contract liabilities accounted for EUR 103.5 million (end-December 2025: EUR 109.0 million) and trade accounts payable for EUR 47.5 million as at end-June 2026 (end-December 2025: EUR 33.8 million). The second largest item was equity of EUR 202.0 million as at end-June 2026 (end-December 2025: EUR 196.8 million). Non-current liabilities (third-largest item on the liabilities side) totalled EUR 93.7 million at the end of June 2026 (end-December 2025: EUR 90.4 million). The biggest component of this was non-current lease liabilities, which totalled EUR 42.5 million (end-December 2025: EUR 39.8 million).
Page 15
Frequentis Group Half-Year Financial Report 2026 Group Management Report as at 30 June 2026 15 Cash flow The cash flow from operations was EUR 24.7 million in the first half of 2026 (H1 2025: EUR 1.9 million). The cash flow from operating activities improved to EUR 16.3 million in the first half of 2026 (H1 2025: EUR 0.0 million) and was influenced by the positive changes in trade accounts receivable and profit before tax, which was countered by the change in contract liabilities and contract assets – in other words, changes in net working capital. The cash outflow for investing activities was EUR 8.5 million in the first half of 2026 (H1 2025: inflow of EUR 1.7 million). Capital expenditure (cash outflow for the purchase of intangible assets, property, plant and equipment) was EUR 6.0 million, which was higher than in the first half of 2025, when it was EUR 4.5 million. The free cash flow (cash flow from operating activities plus cash flow from investing activities) was EUR 7.9 million (H1 2025: EUR 1.7 million). The cash outflow for financing operations increased to EUR 14.8 million in the first half of 2026 (H1 2025: outflow of EUR 3.2 million). The total cash outflow in the first half of 2026 was therefore EUR 6.9 million (H1 2025: outflow of EUR 1.5 million). Cash and cash equivalents, excluding time deposits, were EUR 91.2 million as at end-June 2026 (end- June 2025: EUR 63.7 million). Information on business relations with related parties Transactions with associated companies and related parties are not material and mainly comprise deliveries of goods and services. These transactions are undertaken exclusively on an arm's length basis. For further information see ↗ Consolidated financial statements as at 31 December 2025, Note 38. Segment performance Air Traffic Management / ATM The Air Traffic Management (ATM) segment comprises the ATM Civil business domain (which includes AIM / Aeronautical Information Management) and the ATM Defence business domain. This segment focuses on civil and military air traffic control organisations and therefore generally on one to two customers per country. It is estimated that the market entry barriers are relatively high. The business domains have similar products. In the Defence business domain, there is also demand for additional encryption solutions. The safety and quality management requirements are the same: the international regulations for standardisation of air traffic issued by the International Civil Aviation Organization (ICAO) apply. Moreover, the infrastructure to be installed for customers (radar, radio transmission, networks) is comparable.
Page 16
16 Group Management Report as at 30 June 2026 Frequentis Group Half-Year Financial Report 2026 Frequentis’ ATM portfolio for the defence sector comprises communication and information systems for air defence and military air traffic control, systems for networked operational management and tactical networks, management and information systems, including systems for integrated use by different authorities, and encrypted, interoperable communication systems for mission-critical applications. Revenues in the Air Traffic Management segment grew by 59.4% (EUR 98.2 million) to EUR 263.4 million in the first half of 2026 (H1 2025: EUR 165.2 million). EBIT was EUR 18.9 million (H1 2025: EUR -7.4 million). For further information see the first two paragraphs in ↗ Business performance. Highlights from the operating business ATM Civil, Greenland: In partnership with Greenland Airports and COMSA Corporación, Frequentis delivered a digital tower solution for the new airport in Qaqortoq in South Greenland. The project enables safe, scalable air traffic management in challenging Arctic conditions and won the Seamless Skies Award 2026 at the annual Airspace World trade show. Singapore: Frequentis and the International Centre for Aviation Innovation (ICAI) have signed a partnership agreement to develop and test AI-based air traffic management technologies. The collaboration includes automated speech recognition, digital assistance systems for air traffic management, and systems to optimise airport ground movements and operations and should enhance airspace capacity and efficiency in the Asia- Pacific region. Europe: Michael Holzbauer, Director European Affairs ATM at Frequentis, has been elected President of EUROCAE, one of the world’s leading air traffic management standardisation organisations. As the first Austrian to hold this position since the organisation was founded, he will be involved in shaping international standards for safety, interoperability, and innovation in aviation. ATM Defence, Germany: Frequentis is developing a military UTM (uncrewed traffic management) system for the German Armed Forces and a unified “drone air picture” for low-altitude airspace. The system supports safe integration of uncrewed aerial vehicles and was honoured in the Seamless Skies Awards 2026 at Airspace World for its contribution to safety, security, and resilience. Saudi Arabia: Frequentis C4i and SAMI L3Harris Technologies have agreed to collaborate on defence communications programmes in Saudi Arabia. The partnership combines C4i’s VOICE C2 system expertise with SAMI L3Harris’ local delivery and support capabilities and is aligned with Saudi Arabia’s localisation objectives. Public Safety & Transport / PST The Public Safety & Transport segment comprises the Public Safety, Public Transport, and Maritime business domains. Its customers are public authorities or related organisations with monitoring and control functions. The Public Safety business domain's customers are the police, fire, and rescue services. Police organisations also require additional encryption solutions. Alongside conventional rail operators, the Public Transport business domain's customers include local public transport providers. The Maritime business domain focuses on coastguards and port authorities. The business domains have similar products and the infrastructure to be installed for customers (phones, radio transmission, networks) is comparable. Despite several international standardisation efforts, different national and regional requirements and regulations still apply.
Page 17
Frequentis Group Half-Year Financial Report 2026 Group Management Report as at 30 June 2026 17 Revenues in the Public Safety & Transport segment increased by 11.2% to EUR 79.5 million in the first half of 2026 (H1 2025: EUR 71.5 million). EBIT dropped to EUR -3.3 million (2025: EUR 2.9 million). The development of earnings was mainly due to the long-term focus of strategic investments for future-oriented technologies such as MCX / FRMCS, cost increases at individual projects, especially in the Public Transport business domain, and delays in order intake. As in the past, the second half will therefore be far more relevant for full-year profitability in the Public Safety & Transport segment. Highlights from the operating business Public Safety, UK: Frequentis implemented the UK's first mission-critical cloud-based emergency call centre and control room solution for the West Yorkshire Fire and Rescue Service. The system supports 40 fire stations. Its enhanced flexibility, resilience, and scalability enable better coordination of incident management for more than 2.2 million habitants. Public Transport, Switzerland: The numerous contracts from the Swiss railways prompted us to rent larger new office premises in Olten in the Canton of Solothurn and to upgrade this location to a business hub. Austria: Start-up of the MissionX solution for the Schneebergbahn tourist train was a further milestone in the productive use of standards-based MCX technology in public transport. Europe: Key FRMCS functionalities have been tested in pilot and test installations. In addition, further progress was made in the migration from GSM-R to mission-critical broadband communication systems as part of FP2- MORANE-2 and in international interoperability and plug tests. The FP2-MORANE-2 initiative is part of “Horizon Europe”, which focuses on the testing and ongoing development of the Future Railway Mobile Communication System (FRMCS) in real conditions throughout Europe. Maritime, Norway: Frequentis supported the takeover of the national coastal radio infrastructure by Kystverket, a Norwegian government agency responsible for water transport infrastructure. The system serves approximately 42,000 vessels along the Norwegian coast and strengthens national control over critical maritime safety infrastructure. The acceptance test for the order in Greenland was successful and modernisation of the coastguard control centres for the Netherlands and the Faeroe Islands is on schedule. Mission Critical Services – MCX: Frequentis continued to extend its MissionX ecosystem for mission-critical broadband communications. Significant areas of focus were involvement in the European Critical Communication System Initiative (EUCCS) and the acquisition of a majority shareholding (51%) in the MCX specialist Nemergent in Spain. Opportunity and risk management For information on opportunities and risks, please refer to the ↗ Group Management Report as at 31 December 2025 on page 134ff. of the Annual Report 2025.
Page 18
18 Group Management Report as at 30 June 2026 Frequentis Group Half-Year Financial Report 2026 Outlook Forecast for 2026 The uncertainties and unpredictabilities remain unchanged. Here is an overview of the most relevant points: • The war in Ukraine is in its fifth year • Other conflict hotspots such as the current situation in the Middle East are causing continued geopolitical tensions • The announcement and introduction of customs tariffs and protectionist measures • Shortages on the IT hardware market • Disruption of the current disinflation process More detailed information on some of the above points is provided below: Since the first quarter of 2025, some countries have announced and implemented new trade tariffs and protectionist measures. The resulting distortion of both imports and exports has a significant effect on international trade and could have major economic consequences. Frequentis considers that it is well-positioned in this respect as it has many years of experience with the impact of national and other official regulations, customs tariffs, and other measures. In addition, in countries such as the USA and Australia local value-added accounts for a high proportion of local revenues, so customs tariffs, for example, should only have a limited effect on Frequentis. As a result of the worldwide AI boom and the data centres required by AI providers, since the end of 2025 there have been massive shortages on the global IT hardware market (including chips, servers, electronic components). The full extent is now becoming apparent in 2026. In the project business, Frequentis has always had to address extensive challenges and dynamic changes in external influences and adapts constantly to the relevant conditions. The disinflation process could be negatively affected by a range of internal and external factors, leading to a renewed rise in inflation. It is not possible to make a reliable estimate of exactly how the issues outlined above will affect revenues and costs, e.g. travel expenses, higher salaries, delays in passing on price rises to customers, and the potential impact of shortages on the IT hardware market. Expenses for company-funded research & development amounted to EUR 19.2 million in 2025. It should be noted that in 2025 the customer-funded rate was higher than in previous years. It is anticipated that in 2026, expenses for company-funded research & development will be around 6% of revenues as usual. Capital expenditure (capex) was EUR 13.8 million in 2025 and is expected to be around EUR 15 million in 2026. Depending on the aspects outlined above, Frequentis has the following targets for 2026 compared with 2025: • Increase revenues by about 15% • Increase order intake • EBIT margin of around 7.0%.
Page 19
Consolidated Financial Statements as at 30 June 2026
Page 20
20 Consolidated income statement Frequentis Group Half-Year Financial Report 2026 Consolidated income statement Note 01-06/2026 EUR thousand unaudited 01-06/2025 EUR thousand unaudited Revenues (3) (4) 342,869 236,758 Change in inventories of finished goods and work in progress (3) (5) 6,858 902 Own work capitalised (3) 141 415 Other operating income (3) (6) 5,135 8,295 Total income (operating performance) 355,003 246,370 Cost of materials and purchased services (7) -109,780 -58,402 Personnel expenses -165,921 -144,056 Other operating expenses (8) -52,543 -38,687 Earnings before interest, taxes, depreciation, amortisation, and impairment losses (EBITDA) 26,759 5,225 Depreciation of property, plant and equipment and amortisation of intangible assets (9) -11,149 -9,547 Earnings before interest and taxes (EBIT) (3) 15,610 -4,322 Financial income 833 501 Financial expenses -1,202 -1,070 Reversal of impairment losses on financial assets (10) 427 0 Earnings from investments accounted for at equity 134 303 Profit before tax 15,801 -4,588 Income taxes -3,742 967 Profit for the period 12,060 -3,621 Profit attributable to: Equity holders of the company 11,273 -4,279 Non-controlling interests 787 658 12,060 -3,621 Basic earnings per share 0.85 -0.32 Diluted earnings per share 0.84 -0.32
Page 21
Frequentis Group Half-Year Financial Report 2026 Consolidated statement of comprehensive income 21 Consolidated statement of comprehensive income Note 01-06/2026 EUR thousand unaudited 01-06/2025 EUR thousand unaudited Profit for the period 12,060 -3,621 Items that may be reclassified to the income statement in subsequent periods Foreign currency translation 1,921 -2,339 Items that may not be reclassified to the income statement Remeasurement of post-employment benefits -35 -49 Income taxes 7 11 Other comprehensive income, net of tax 1,893 -2,377 Total comprehensive income 13,953 -5,997 Total comprehensive income attributable to: Equity holders of the company 13,167 -6,645 Non-controlling interests 786 647 13,953 -5,997
Page 22
22 Consolidated statement of financial position Frequentis Group Half-Year Financial Report 2026 Consolidated statement of financial position ASSETS Note 30 June 2026 EUR thousand unaudited 31 Dec. 2025 EUR thousand audited Non-current assets Property, plant and equipment (11) 75,017 69,008 Intangible assets 11,641 12,566 Goodwill 8,621 8,582 Investments accounted for at equity 3,699 3,605 Other non-current financial assets (13) 590 2,623 Deferred tax assets 10,014 8,042 109,582 104,426 Current assets Inventories (5) 64,486 51,817 Trade accounts receivable 112,559 144,684 Contract assets (12) 98,837 68,184 Contract costs 4,882 4,495 Other current financial assets (13) 3,710 3,375 Other current non-financial assets (13) 23,884 17,578 Income tax receivables 5,496 3,449 Time deposits 16,277 14,120 Cash and cash equivalents 91,193 97,186 421,324 404,888 Total assets 530,906 509,314
Page 23
Frequentis Group Half-Year Financial Report 2026 Consolidated statement of financial position 23 LIABILITIES AND EQUITY Note 30 June 2026 EUR thousand unaudited 31 Dec. 2025 EUR thousand audited Shareholders’ equity Share capital (14) 13,280 13,280 Capital reserves 21,138 21,138 Retained earnings (14) (15) 165,518 162,667 Treasury shares -343 -521 Foreign currency translation -807 -2,729 Equity attributable to equity holders of the parent company 198,786 193,835 Non-controlling interests 3,265 2,996 Total shareholders’ equity 202,050 196,831 Non-current liabilities Provisions (16) 23,576 22,563 Lease liabilities (11) 42,532 39,810 Other non-current financial liabilities (17) 21,087 18,612 Deferred tax liabilities 6,464 9,422 93,659 90,407 Current liabilities Liabilities to banks and other financial liabilities 29 6,643 Contract liabilities (12) 103,478 109,021 Trade accounts payable 47,476 33,788 Provisions (16) 23,817 27,721 Lease liabilities (11) 10,930 9,278 Other current financial liabilities (17) 7,734 3,242 Other current non-financial liabilities (17) 33,080 22,848 Current tax liabilities 8,653 9,535 235,197 222,076 Total shareholders’ equity and liabilities 530,906 509,314
Page 24
24 Consolidated cash flow statement Frequentis Group Half-Year Financial Report 2026 Consolidated cash flow statement Note 01-06/2026 EUR thousand unaudited 01-06/2025 EUR thousand unaudited Profit before tax 15,801 -4,588 Net interest income/expense 369 569 Foreign currency translation 286 566 Profit/loss from the disposal of non-current assets -11 -482 Depreciation of property, plant and equipment and amortisation of intangible assets (9) 11,149 9,547 Earnings from investments accounted for at equity -134 -303 Change in provisions (16) -2,926 -3,723 Income/expense relating to changes in variable purchase price payments 69 46 Other non-cash income/expenses 67 313 Net cash flow from operations 24,670 1,945 Change in inventories (5) -12,669 -9,660 Change in trade accounts receivable 32,125 -12,714 Change in contract assets (12) -30,653 -12,636 Change in contract costs -387 377 Change in other receivables (13) -4,538 -2,784 Change in trade accounts payable 13,244 5,237 Change in contract liabilities (12) -5,543 27,019 Change in other liabilities (17) 12,068 8,262 Change in net working capital 3,646 3,101 Interest paid -1,204 -1,035 Interest received 764 487 Dividends received 37 0 Income taxes paid -11,593 -4,505 Net cash flow from operating activities 16,320 - 7
Page 25
Frequentis Group Half-Year Financial Report 2026 Consolidated cash flow statement 25 Note 01-06/2026 EUR thousand unaudited 01-06/2025 EUR thousand unaudited Cash inflows from the sale of intangible assets 1 0 Cash inflows from the sale of property, plant and equipment 15 1,467 Cash inflows from time deposits 24,107 24,483 Cash outflows for the purchase of intangible assets -309 -418 Cash outflows for the purchase of property, plant and equipment -5,698 -4,124 Cash outflows for time deposits -26,264 -18,999 Cash outflows for non-current financial assets -319 -712 Net cash flow from investing activities -8,467 1,697 Dividends paid to owners (14) -3,982 -3,585 Dividends paid to non-controlling interests 0 -306 Cash inflows from loans and other financing 1,156 4,851 Cash outflows for repayment of loans and other financing -7,203 -83 Cash outflows for payments of principal on lease liabilities -4,760 -4,042 Net cash flow from financing activities -14,789 -3,165 Change in cash and cash equivalents: Net cash flow from operating activities 16,320 -7 Net cash flow from investing activities -8,467 1,697 Net cash flow from financing activities -14,789 -3,165 Net change in cash and cash equivalents -6,936 -1,475 Cash and cash equivalents at start of period 97,186 66,994 Cash-flow related change in cash and cash equivalents -6,936 -1,475 Foreign currency translation 943 -1,842 Cash and cash equivalents at end of period 91,193 63,677
Page 26
26 Consolidated statement of changes in shareholders’ equity Frequentis Group Half-Year Financial Report 2026 Consolidated statement of changes in shareholders’ equity in EUR thousand Share capital Capital reserves IAS 19 reserve Option reserve Retained earnings Treasury shares Foreign currency translation Equity attributable to equity holders of the parent company Non- controlling interests Total shareholders’ equity Note (15) (14) As at 1 January 2026 13,280 21,138 -3,121 1,065 164,723 -521 -2,729 193,835 2,996 196,831 Profit for the period 11,273 11,273 787 12,060 Other comprehensive income -27 1,922 1,894 -1 1,893 Total comprehensive income -27 11,273 1,922 13,167 786 13,953 Dividends -3,982 -3,982 -3,982 Change in treasury shares -312 178 -133 -133 Changes in connection with put options -3,876 -3,876 -517 -4,394 Other changes -218 -7 -224 -224 As at 30 June 2026 13,280 21,138 -3,148 848 167,818 -343 -807 198,786 3,265 202,050 in EUR thousand Share capital Capital reserves IAS 19 reserve Option reserve Retained earnings Treasury shares Foreign currency translation Equity attributable to equity holders of the parent company Non- controlling interests Total shareholders’ equity Note (15) (14) As at 1 January 2025 13,280 21,138 -4,241 870 141,534 -314 -387 171,880 2,880 174,760 Profit for the period -4,279 -4,279 658 -3,621 Other comprehensive income -37 -2,328 -2,366 -11 -2,376 Total comprehensive income -37 -4,279 -2,328 -6,645 647 -5,997 Dividends -3,585 -3,585 -306 -3,891 Change in treasury shares -94 198 104 104 Changes in connection with put options -406 -406 13 -393 Other changes -97 -97 -97 As at 30 June 2025 13,280 21,138 -4,278 773 133,171 -116 -2,716 161,251 3,235 164,486
Page 27
Frequentis Group Half-Year Financial Report 2026 Selected notes to the condensed consolidated interim financial statements 27 Selected notes to the condensed consolidated interim financial statements 1. General information These interim financial statements include Frequentis AG and its subsidiaries (subsequently referred to as the Frequentis Group, Frequentis, or the Group). Frequentis AG is a company established under Austrian law. Its registered address is Innovationsstrasse 1, 1100 Vienna, Austria, and it has been listed on the Vienna and Frankfurt stock exchanges since May 2019. The consolidated interim financial statements of Frequentis AG have been prepared in accordance with the provisions of the International Financial Reporting Standards (IFRS) as adopted by the European Union, and therefore in accordance with the provisions of IAS 34. They are presented in condensed form. In the opinion of the management, the consolidated interim financial statements contain all adjustments required to provide a true and fair view of the Frequentis Group’s net assets, financial position, and results of operations. The consolidated interim financial statements have not been audited, nor have they been subject to a review. They should be read in conjunction with the audited consolidated financial statements of the Frequentis Group as at 31 December 2025 and are not necessarily indicative of the year-end results for 2026. Compared to other sectors of the economy, the areas in which the Frequentis Group operates (provider of high- tech systems and solutions for safety-critical national command and control centres for civil and military air traffic management, emergency services, rail and water transport) have relatively low cyclical exposure. Within the sector, the individual segments of the Frequentis Group are exposed to the same fluctuations as their competitors (lower revenues and earnings in the first and second quarters and higher revenues and earnings in the third and fourth quarters). This is because a high proportion of the Frequentis Group's customers are public authorities and government-related businesses, which often only utilise their budget for the current year in the final quarter since they only take the related decisions in the third or fourth quarter. Consequently, the Frequentis Group normally generates a considerable proportion of its revenues in the second half of the year and usually reports negative earnings during the first half of the year as fixed costs are incurred evenly during the year. Contrary to this typical seasonal pattern, in the first half of 2026 there was a strong rise in revenues, resulting in a profit in the first six months. This was mainly due to the accelerated execution of some major projects in response to customer requests. Rounding may result in minor discrepancies in totals and percentages as a result of the use of automatic data processing. Consolidated group Besides Frequentis AG, which is the parent company of the consolidated group, the consolidated financial statements of Frequentis AG include 6 (31 December 2025: 6) domestic subsidiaries and 31 (31 December 2025: 31) foreign subsidiaries controlled by Frequentis AG. There were no changes to the consolidated group in the first half of 2026.
Page 28
28 Selected notes to the condensed consolidated interim financial statements Frequentis Group Half-Year Financial Report 2026 2. Accounting policies The interim financial statements are prepared in accordance with IAS 34 “Interim Financial Reporting” and require estimates and assumptions that affect the amounts reported. The significant assumptions and key sources of estimation uncertainty remain unchanged from those set out in the notes to last year's consolidated financial statements. The actual results could differ from these estimates. New and amended standards and interpretations When preparing the consolidated interim financial statements, the following amendments to existing IAS/IFRS standards and interpretations, as well as the new standards and interpretations, were applied, insofar as they had been endorsed by the European Union by 30 June 2026 and were effective at that date: • Amendments to the Classification and Measurement of Financial Instruments (IFRS 9 / IFRS 7) • Contracts Referencing Nature-Dependent Electricity (IFRS 9 / IFRS 7) Where applicable, the above standards and amendments were applied in these consolidated interim financial statements. The effects of the changes on the financial statements were insignificant.
Page 29
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 29 Notes to the consolidated income statement and statement of financial position 3. Segment report Operating segments • Air Traffic Management • Public Safety & Transport The Air Traffic Management (ATM) segment comprises the ATM Civil business domain (which includes AIM / Aeronautical Information Management) and the ATM Defence business domain. This segment focuses on civil and military air traffic control organisations and therefore generally on one to two customers per country. It is estimated that the market entry barriers are relatively high. The business domains have similar products. In the Defence business domain, there is also demand for additional encryption solutions. The safety and quality management requirements are the same: the international regulations for standardisation of air traffic issued by the International Civil Aviation Organization (ICAO) apply. Moreover, the infrastructure to be installed for customers (radar, radio transmission, networks) is comparable. Frequentis’ ATM portfolio for the defence sector comprises communication and information systems for air defence and military air traffic control, systems for networked operational management and tactical networks, management and information systems, including systems for integrated use by different authorities, and encrypted, interoperable communication systems for mission-critical applications. The Public Safety & Transport segment comprises the Public Safety, Public Transport, and Maritime business domains. Its customers are public authorities or related organisations with monitoring and control functions. The Public Safety business domain's customers are the police, fire, and rescue services. Police organisations also require additional encryption solutions. Alongside conventional rail operators, the Public Transport business domain's customers include local public transport providers. The Maritime business domain focuses on coastguards and port authorities. The business domains have similar products and the infrastructure to be installed for customers (phones, radio transmission, networks) is comparable. Despite several international standardisation efforts, different national and regional requirements and regulations still apply.
Page 30
30 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 Disclosures on the operating segments The chief operating decision maker of the Frequentis Group is the Executive Board. The accounting policies applied by the individual segments are the same as those for the Frequentis Group. Earnings before interest and taxes (EBIT) are used for internal reporting and correspond to the segment result as defined in IFRS 8.23. There are no significant inter-segment revenues. 01-06/2026 Air Traffic Management EUR thousand Public Safety & Transport EUR thousand Total EUR thousand Revenues 263,376 79,493 342,869 Change in inventories of finished goods and work in progress 6,728 130 6,858 Own work capitalised 106 35 141 Other operating income 4,047 1,088 5,135 Total income (operating performance) 274,256 80,747 355,003 EBIT 18,918 -3,308 15,610 Impairment losses 0 0 0 In the reporting period, all items could be allocated to the segments, so no column was necessary for reconciliation/consolidation. 01-06/2025 Air Traffic Management EUR thousand Public Safety & Transport EUR thousand Reconciliation/ consolidation EUR thousand Total EUR thousand Revenues 165,206 71,511 41 236,758 Change in inventories of finished goods and work in progress -1,081 -997 2,981 902 Own work capitalised 43 205 167 415 Other operating income 5,661 2,495 139 8,295 Total income (operating performance) 169,828 73,214 3,328 246,370 EBIT -7,405 2,866 218 -4,322 Impairment losses 0 0 0 0 Segment assets and segment liabilities are not disclosed because internal reporting does not include a breakdown of assets between the two segments. Details of Group-wide data In the reporting period, the Frequentis Group generated more than 10% of its total revenues with one customer (H1 2025: none of its customers). The revenues with this customer amounted to EUR 109,973 thousand in the reporting period and related to the Air Traffic Management segment. Orders on hand as at 30 June 2026 totalled EUR 834,954 thousand (30 June 2025: EUR 763,774 thousand). The ATM segment accounted for EUR 505,971 thousand (30 June 2025: EUR 432,337 thousand) of this amount and the PST segment for EUR 328,983 thousand (30 June 2025: EUR 331,436 thousand).
Page 31
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 31 4. Revenues The revenue split by category in the reporting period was as follows: 01-06/2026 EUR thousand 01-06/2025 EUR thousand New products and/or new customer business 191,548 99,386 IBB (installed base business) 143,339 128,631 Other revenues 7,982 8,741 342,869 236,758 The regional breakdown of revenues by end-users was as follows: 01-06/2026 EUR thousand 01-06/2025 EUR thousand Europe 165,345 144,338 Americas 132,243 53,855 Asia 24,396 20,994 Australia/Pacific 19,101 13,882 Africa 1,252 2,304 Small orders (not allocated) 532 1,384 342,869 236,758 The line item “small orders” relates to revenues from customer contracts that were not allocated to the other categories in the above table. In the case of maintenance contracts, the customer generally receives the benefits as the performance obligation is satisfied. Revenue is recognised over time. Exceptions from this rule are certain services (e.g. consulting and repairs) with a short lead time or performance period, and orders for spare parts or small parts where the revenue is recognised at a point in time. The revenues from these orders amounted to EUR 60,268 thousand in the reporting period (H1 2025: EUR 15,204 thousand). The increase in revenues realised at a point in time was mainly attributable to a major project in the Americas. 5. Change in inventories of finished goods and work in progress The increase in finished goods and the resulting rise in inventories of finished goods and work in progress was mainly due to a major project in the Americas region, for which inventories of finished assemblies were built up for future deliveries.
Page 32
32 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 6. Other operating income 01-06/2026 EUR thousand 01-06/2025 EUR thousand Foreign currency translation 2,391 933 Grants and subsidies for research and development costs 1,634 1,751 Income from research incentives 646 567 Changes in the fair value of forward exchange contracts 13 3,346 Gain from the sale of intangible assets, property, plant and equipment 14 857 Miscellaneous other operating income 437 841 5,135 8,295 Grants and subsidies, including research incentives, are recognised in income when the conditions for their granting are fulfilled and the grants have either already been paid or it is reasonably sure that they will be paid. The change in the fair value of forward exchange contracts was mainly attributable to the change in the exchange rate of the USD versus the euro. 7. Cost of materials and purchased services 01-06/2026 EUR thousand 01-06/2025 EUR thousand Cost of materials 67,149 22,363 Cost of purchased services 42,631 36,039 109,780 58,402 The increase in the cost of materials was mainly attributable to a more material-intensive project in the Americas region.
Page 33
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 33 8. Other operating expenses 01-06/2026 EUR thousand 01-06/2025 EUR thousand Travel expenses 8,747 7,879 Change in project-related provisions 5,723 782 Impairment of receivables and contract assets 5,372 56 Licenses (terms of up to 1 year) 5,238 3,548 Other consulting expenses 3,921 2,838 Advertising 2,839 2,752 External personnel 2,838 2,814 Changes in the fair value of forward exchange contracts 2,292 95 Insurance expenses 1,988 1,750 Staff recruitment 1,221 916 Maintenance 1,167 1,313 Foreign currency translation 1,150 4,550 Legal and consulting expenses 1,133 1,133 Operating expenses (buildings) 1,065 964 Energy 1,064 1,033 Transport 1,000 1,140 Cleaning 714 700 Vehicles 700 682 Telephone and communications expenses 692 695 Miscellaneous 3,679 3,047 52,543 38,687 The project-related provisions contain, among other things, project costs for which provisions are recognised due to the excess of estimated future expenses over revenues. Further, provisions were recognised for customers’ compensation claims. The increase in impairments was mainly due to the impairment of past-due receivables from a customer relating to a project in the ATM segment. 9. Depreciation of property, plant and equipment and amortisation of intangible assets 01-06/2026 EUR thousand 01-06/2025 EUR thousand Depreciation of right-of-use assets 5,621 4,658 Depreciation of property, plant and equipment and amortisation of intangible assets 4,853 4,482 Depreciation and amortisation of low-value assets 675 407 11,149 9,547 10. Reversal of impairment losses on financial assets The reversal of impairment losses on financial assets comprises the remaining income of EUR 427 thousand (2025: none) relating to recourse claims for time deposits and deposits due on demand at Commerzialbank Mattersburg, which had been recognised in the past as fully impaired.
Page 34
34 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 11. Property, plant and equipment and lease liabilities The higher additions to property, plant and equipment and the increase in lease liabilities are due, among other factors, to new rental agreements for office premises and warehouse space. 12. Contract assets and contract liabilities 30 June 2026 EUR thousand 31 Dec. 2025 EUR thousand Contract assets, gross 136,582 92,447 Loss allowances pursuant to IFRS 9 -32 -10 Total contract assets 136,550 92,437 Advances from customers -37,713 -24,253 98,837 68,184 The contract assets mainly result from performance obligations already satisfied by the Group but not yet invoiced. Contract assets are reclassified to trade accounts receivable when there is an unconditional right to receive consideration. This is normally the case when the Group issues an invoice for the goods and services provided. It is assumed that there are no relevant default risks for the contract assets recognised. In the case of contracts for which the Group makes advance payments, in particular, the creditworthiness of customers is carefully reviewed. These contracts primarily relate to work for public authorities or major international companies. The increase in contract assets compared with 31 December 2025 is the net result of a large number of newly commenced and invoiced projects. Contract liabilities comprise obligations to transfer goods or services to customers, for which consideration has already been received. These primarily relate to advance payments, some of which are secured by prepayment guarantees. In addition, in some cases payments are secured by bank guarantees. No collateral existed, either on the reporting dates or during the year.
Page 35
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 35 The following table shows the structure of contract liabilities: 30 June 2026 EUR thousand 31 Dec. 2025 EUR thousand Advance payments received from customers for projects 116,550 108,732 Advances offset against contract assets -36,658 -21,615 79,892 87,117 Other contract liabilities 6,579 10,583 Other contract liabilities offset against contract assets -1,054 -2,637 5,525 7,946 Accrued revenue for maintenance contracts 17,516 13,648 Liabilities for outstanding performance obligations for customer orders after final invoicing (current) 469 235 Liabilities for outstanding performance obligations for customer orders after final invoicing (non-current) 76 75 Total contract liabilities 103,478 109,021 Other contract liabilities contain contractual claims to advance payments. 13. Other assets 30 June 2026 EUR thousand 31 Dec. 2025 EUR thousand Pension reinsurance 309 498 Loan to Nemergent Solutions S.L. 0 1,864 Other financial assets 281 261 Other non-current financial assets 590 2,623 Loan to Nemergent Solutions S.L. 1,864 0 Positive fair value of MTM valuation 790 1,903 Receivables from grants and incentives 576 985 Other financial assets 480 487 Other current financial assets 3,710 3,375 Prepaid expenses and deferred charges 14,102 9,117 Receivables from research grants and incentives 2,286 4,869 Receivables from fiscal authorities (excluding income taxes) 7,320 3,427 Other assets 176 165 Other current non-financial assets 23,884 17,578
Page 36
36 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 14. Share capital and retained earnings Treasury shares The Annual General Meeting of Frequentis AG on 6 June 2024 authorised the Executive Board, pursuant to Section 65 (1b) AktG, for a period of five years from the date of the resolution, therefore up to and including 5 June 2029, with the consent of the Supervisory Board but without a further resolution by the General Meeting, to sell or use treasury shares, including in a manner other than by sale on the stock exchange or by means of a public offer, in particular a) to grant shares to employees, senior managers, and/or members of the Executive Board or the managing boards of its affiliates, including for purposes of share transfer programmes, in particular stock options, long-term incentive plans, and other stock ownership plans, b) to deliver shares under convertible bonds issued by Frequentis AG, c) as consideration for the acquisition of entities, business operations, parts of business operations or shares in one or several domestic or foreign companies, and d) for any other legally permissible purpose, and to exclude the subscription rights of shareholders. This authorisation may be exercised in full or in part or in several tranches and for several purposes. The Annual General Meeting of Frequentis AG on 19 June 2026 authorised the Executive Board, for a period of 30 months, to purchase shares in Frequentis AG pursuant to Section 65 (1) subsections 4 and 8 AktG, in an amount of up to 10% of the company’s share capital, both via the stock market and outside the stock exchange, and to exclude the general selling possibilities of shareholders related to such purchase. Furthermore, the Annual General Meeting authorised the Executive Board to reduce the share capital by cancelling shares in Frequentis AG without a further resolution of the General Meeting. With the approval of the Supervisory Board, in May 2025 and May 2026 the Executive Board passed a resolution to transfer to the Chairman of the Executive Board 6,657 treasury shares for the achievement of the targets for the LTIP 2022 and 4,839 treasury shares for the achievement of the targets for the LTIP 2023, under exclusion of the subscription rights of existing shareholders. As at 30 June 2026, Frequentis held 5,081 treasury shares (31 December 2025: 9,920). The total number of issued shares was 13,280,000 (31 December 2025: 13,280,000). The development of shareholders’ equity is presented in the consolidated statement of changes in shareholders’ equity. Dividend The Annual General Meeting of Frequentis AG on 19 June 2026 passed a resolution to pay a dividend of EUR 0.30 per no-par-value share entitled to the dividend for the 2025 financial year. The dividend less statutory capital gains tax of 27.5% was paid in June 2026.
Page 37
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 37 15. Share-based payment Frequentis AG granted long-term incentive plans to the Chairman of the Executive Board, Mr. Norbert Haslacher, in 2023, 2024, 2025, and 2026 (LTIP 2023, LTIP 2024, LTIP 2025, and LTIP 2026). In 2026, long-term incentive plans were also agreed with the other members of the Executive Board. The share-based payments are measured in accordance with IFRS 2 at fair value on the grant date. The expense is allocated over the required vesting period. Since the agreements stipulate that the shares awarded under the LTIP cannot be settled in cash, the share-based payments are recognised in a separate item of equity. The participants in the plans are not required to make a personal investment in Frequentis AG shares. From the grant date, in each calendar year the beneficiaries can sell a maximum of one third of the shares awarded under the LTIPs. However, the beneficiaries may only sell the number of shares awarded under the current LTIPs or any subsequent long-term incentive plans if, at all times, they hold at least 7,000 of the shares awarded under a long-term incentive plan (CEO Norbert Haslacher) or 1,550 of such shares (other members of the Executive Board) (“minimum shareholding”). The service period for the fulfilment of the targets has been set at three years for all LTIPs. The targets for the key indicators were set by the Supervisory Board. On the settlement date (at the earliest three years after the grant date), assuming 100% target achievement, a maximum of 18,000 shares (CEO Norbert Haslacher) or 4,000 shares (other Executive Board members) will be awarded (gross – before deduction of taxes and fees). For the CEO, Norbert Haslacher, this is capped at 200% (LTIP 2024 and 2025) or 300% (LTIP 2026) of his annual gross base salary, while for the other Executive Board members it is capped at 150% of their annual gross base salary. Settlement is effected by transferring the number of shares corresponding to the net amount of the award to the beneficiary’s securities account. The entitlement to the maximum number of shares arises at 100% target achievement. A lower target achievement level will result in a proportionate reduction in the entitlement. No shares will be allocated if target achievement is less than 50%. The following table summarises the main conditions for the share-based payments granted in the various reporting periods (LTIP 2023 ended in the reporting period): LTIP 2026 (CEO) LTIP 2026 (CTO) LTIP 2026 (CFO) LTIP 2026 (COO) LTIP 2025 (CEO) LTIP 2024 (CEO) LTIP 2023 (CEO) Beginning of the plan 1 Jan. 2026 1 Jan. 2026 1 Jan. 2026 1 Jan. 2026 1 Jan. 2025 1 Jan. 2024 1 Jan. 2023 Date of approval by General Meeting 19 Jun. 2026 19 Jun. 2026 19 Jun. 2026 19 Jun. 2026 5 Jun. 2025 6 Jun. 2024 1 Jun. 2023 Grant date 19 Jun. 2026 19 Jun. 2026 19 Jun. 2026 19 Jun. 2026 5 Jun. 2025 6 Jun. 2024 1 Jun. 2023 End of service period 31 Dec. 2028 31 Dec. 2028 31 Dec. 2028 31 Dec. 2028 31 Dec. 2027 31 Dec. 2026 31 Dec. 2025 Vesting date 30 Apr. 2029 30 Apr. 2029 30 Apr. 2029 30 Apr. 2029 30 Apr. 2028 30 Apr. 2027 30 Apr. 2026 Expected target achievement 88.5% 84.0% 88.5% 84.0% 100% 100% 100% Expected no. of shares 15,930 3,360 3,540 3,360 11,316 11,316 10,542 Maximum no. of shares 18,000 4,000 4,000 4,000 18,000 18,000 18,000 Bonus shares allocated None None None None None None None
Page 38
38 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 The agreed targets are measured against the following performance indicators: LTIP 2026 CEO LTIP 2026 CTO LTIP 2026 CFO LTIP 2026 COO Total shareholder return (TSR) Total shareholder return (TSR) Total shareholder return (TSR) Total shareholder return (TSR) EBT margin of Frequentis AG Fulfilment of defined KPIs for project execution EBT margin of Frequentis AG Fulfilment of defined KPIs for project execution Achievement of a target for cumulative order intake at the “Accelerator Hub” Ongoing development of the service organisation Achievement of a target range for working capital intensity Ongoing development of the service organisation Position in the EcoVadis sustainability ranking Position in the EcoVadis sustainability ranking Position in the EcoVadis sustainability ranking Position in the EcoVadis sustainability ranking LTIP 2025 CEO LTIP 2024 CEO LTIP 2023 CEO Total shareholder return (TSR) Total shareholder return (TSR) Total shareholder return (TSR) EBIT margin of the Frequentis Group Increase in the order intake of the Frequentis Group Orders on hand / book-to-bill ratio Development and implementation of a comprehensive, innovative business model for the latest generation of VCS products in the ATM Civil business domain Growth in the ATM Civil business domain Order intake at selected Group companies Optimisation of the financing structure for R&D projects Customer satisfaction Growth in operating performance in the Public Safety & Transport segment Trainee programmes in the areas of sales, project management, and/or systems engineering In May 2026, the targets set for the LTIP 2023 were evaluated for the performance period from 1 January 2023 to 31 December 2025 and it was established that target achievement was 100%. In view of the cap of 200% of the CEO’s annual gross base salary, 10,542 shares in the company (gross number of shares before taxes) were to be transferred. Taking into consideration the tax to be withheld, 4,839 treasury shares were transferred in this context. Of the expected total future expense relating to the LTIPs, the portion already earned as at the reporting date is recognised in shareholders’ equity. This is based on the fair value on the grant date. The total expected expense for the LTIP obligation is measured at the fair value of the share relative to the share price on the date of the agreement, multiplied by the number of shares granted and the expected target achievement, taking into account the defined cap. In the reporting period, EUR 73 thousand (H1 2025: EUR 365 thousand) including payroll-related costs was recognised in personnel expenses in the consolidated statement of comprehensive income and in shareholders’ equity for the LTIPs. For the LTIPs, it is assumed that both the market-oriented targets and the non-market-oriented targets will be achieved so the effect of the market-oriented targets must be reflected in the expected level of target achievement and not in the fair value of the shares.
Page 39
Frequentis Group Half-Year Financial Report 2026 Notes to the consolidated income statement and statement of financial position 39 16. Provisions The provisions comprise: 30 June 2026 EUR thousand 31 Dec. 2025 EUR thousand Provisions for severance payments 15,666 15,332 Provisions for pensions 4,478 4,399 Less pension insurance scheme -2,604 -2,553 1,874 1,846 Provisions for projects 3,020 3,208 Provisions for warranties 1,791 920 Provisions for anniversary bonuses 779 767 Other provisions 446 490 Total non-current provisions 23,576 22,563 Provisions for bonuses 9,758 17,027 Provisions for projects 7,241 5,714 Provisions for warranties 1,809 2,444 Other provisions 5,009 2,536 Total current provisions 23,817 27,721 Since the life insurance policies are pledged to cover pension obligations, the corresponding amount accumulated in the pension insurance scheme is offset against the pension provisions. The reduction in provisions for bonuses resulted from almost complete disbursement of bonuses and variable salaries to employees for 2025, while only pro-rata additions were made to the provisions for 2026.
Page 40
40 Notes to the consolidated income statement and statement of financial position Frequentis Group Half-Year Financial Report 2026 17. Other liabilities The other liabilities comprise: 30 June 2026 EUR thousand 31 Dec. 2025 EUR thousand Liabilities for put options, non-controlling interests 19,416 16,443 Loan from FFG (Austrian Research Promotion Agency) 1,127 1,283 Earn-out liabilities and liabilities for receivables due to risk retention 223 581 Other liabilities 321 305 Total non-current financial liabilities 21,087 18,612 Liabilities for put options, non-controlling interests 1,420 0 Loan from FFG (Austrian Research Promotion Agency) 1,283 560 Negative fair value of derivative financial instruments 1,252 89 Earn-out payment liabilities 663 550 Other liabilities 3,116 2,043 Total current financial liabilities 7,734 3,242 Accrual for holidays not yet taken 12,670 7,723 Liabilities to the Austrian fiscal authorities (excluding income taxes) 7,139 10,451 Liabilities to health insurers 7,130 1,212 Advances received in connection with grants and subsidies 2,681 717 Accrual for overtime 1,421 1,230 Accrual for consultancy costs 325 927 Other liabilities 1,714 588 Total current non-financial liabilities 33,080 22,848 The earn-out payment liabilities, which are measured at fair value and allocated to level 3 in the fair value hierarchy, are one element of the contractually agreed purchase price for FRAFOS GmbH and Frequentis Recording AS. The earn-out payment for FRAFOS GmbH is based on the annual financial statements prepared in accordance with the German Commercial Code and is dependent on achievement of an EBIT target. The earn- out payment for Frequentis Recording AS is based on the number of recording solutions sold. A pro rata payment of EUR 315 thousand was made in the reporting period. These liabilities were remeasured as at the reporting date. This did not result in any change in the assumptions made. The remaining change of EUR 70 thousand resulted from the interest rate effect and was included in the financial expenses. The liabilities for put options, non-controlling interests relate to options held by non-controlling interests in Regola S.r.l., ELARA Leitstellentechnik GmbH, and FRAFOS GmbH to transfer these interests to Frequentis. If the options are exercised, Frequentis has an irrevocable obligation to acquire the interests in the businesses. The earliest exercise dates for these put options are 2027 (Regola S.r.l. and FRAFOS GmbH) and 2028 (ELARA Leitstellentechnik GmbH).
Page 41
Frequentis Group Half-Year Financial Report 2026 Other information 41 For Regola S.r.l. and ELARA Leitstellentechnik GmbH, the value of the put option corresponds to the enterprise value less net financial debt, while at FRAFOS GmbH it corresponds to the enterprise value less net financial debt and the deviation from target working capital. The enterprise value is determined using a multiples-based valuation. The basis for this multiples-based valuation is EBIT for the 12 months directly prior to exercise of the option (in the case of Regola S.r.l.), the average revenues and EBIT reported in the annual financial statements for the last five financial years immediately prior to exercise of the option (in the case of ELARA Leitstellentechnik GmbH), and the average EBIT in the three years immediately prior to exercise of the option (in the case of FRAFOS GmbH). The change of EUR 4,394 thousand in the fair value of the put options is recognised in equity. Other information 18. Financial instruments In the first half of 2026, liabilities to banks of EUR 6,634 thousand and an FFG loan of EUR 560 thousand were repaid. The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the categories to which they are allocated. It does not contain any information on the fair value of financial assets and financial liabilities that are not measured at fair value if the carrying amount is a reasonable approximation of the fair value (amounts in EUR thousand). 30 June 2026 Measured at fair value Measured at amortised cost Total carrying amount Mandatory recognition at fair value through profit or loss Equity instruments – at fair value through profit or loss Financial assets Other financial liabilities Financial assets Equity instruments 0 0 Time deposits 16,277 16,277 Trade accounts receivable 112,559 112,559 Derivative financial instruments 790 790 Other current and non-current assets 3,510 3,510 Cash and cash equivalents 91,193 91,193 Total 790 0 223,539 224,329 Financial liabilities Liabilities to banks and other financial liabilities 29 29 Trade accounts payable 47,476 47,476 Lease liabilities 53,462 53,462 Derivative financial instruments 1,252 1,252 Liabilities relating to put options and earn- out agreements 21,722 21,722 Other current and non-current liabilities 5,847 5,847 Total 22,974 106,814 129,788
Page 42
42 Other information Frequentis Group Half-Year Financial Report 2026 31 Dec. 2025 Measured at fair value Measured at amortised cost Total carrying amount Mandatory recognition at fair value through profit or loss Equity instruments – at fair value through profit or loss Financial assets Other financial liabilities Financial assets Equity instruments 0 0 Time deposits 14,120 14,120 Trade accounts receivable 144,684 144,684 Derivative financial instruments 1,903 1,903 Other current and non-current assets 4,095 4,095 Cash and cash equivalents 97,186 97,186 Total 1,903 0 260,085 261,988 Financial liabilities Liabilities to banks and other financial liabilities 6,643 6,643 Trade accounts payable 33,788 33,788 Lease liabilities 49,088 49,088 Derivative financial instruments 89 89 Liabilities relating to put options and earn- out agreements 17,575 17,575 Other current and non-current liabilities 4,191 4,191 Total 17,664 93,710 111,374 Fair value Trade accounts receivable, contract assets, other receivables, time deposits, cash and cash equivalents, trade accounts payable, contract liabilities, and other liabilities are measured at their carrying amount, which is a reasonable approximation of the fair value, due to their essentially short remaining term. Since the items presented here comprise all financial assets and liabilities recognised at amortised cost and no disclosure is required for lease liabilities, the above table does not contain a separate column showing their fair values. For the equity instruments Altitude Angel Ltd. and AIRlabs Austria GmbH, there are no quoted prices available on an active market. Therefore, they are measured using parameters that are unobservable on the market. The fair value is allocated to level 3 in the fair value hierarchy. There is currently no intention of selling the equity instruments. Altitude Angel Ltd. was fully impaired in previous years and insolvency proceedings commenced in 2025. As at 31 December 2025 and 30 June 2026, the carrying amount and fair value were therefore zero. AIRlabs Austria GmbH was fully impaired in 2025 due to the planned cessation of business operations in 2026. Consequently, the carrying amount and fair value were zero as at 31 December 2025 and 30 June 2026. The earn-out liabilities relating to the acquisition of FRAFOS GmbH and Frequentis Recording AS are measured at fair value and allocated to the category at fair value through profit or loss. The fair value is allocated to level 3 in the fair value hierarchy. The liabilities relating to the put options of the non-controlling interests in ELARA Leitstellentechnik GmbH, Regola S.r.l., and FRAFOS GmbH are recognised at fair value, while changes are recognised in equity with no impact on profit or loss in accordance with IFRS 10. The fair value is allocated to level 3 in the fair value hierarchy. Since there is no category for this, in the above table the amount is reported in other liabilities at fair value through profit or loss.
Page 43
Frequentis Group Half-Year Financial Report 2026 Other information 43 The carrying amounts of derivative financial assets and liabilities correspond to their fair values. Derivatives are not designated as a hedging instrument but nevertheless serve economically to hedge fluctuations in exchange rates. Their fair values are based on the present value of expected future cash flows, discounted by the interest rate that the Group estimates could be obtained for comparable financial instruments. They are allocated to level 2 in the fair value hierarchy. The long-term incentive plans (LTIP), which are classified as an equity-settled share-based payment, were measured at fair value and allocated to level 3 in the fair value hierarchy. The following hierarchy levels were applied to allocate all financial instruments measured at fair value to a valuation method: Level Financial instruments at fair value Level 2: Measurement based on quoted prices for similar assets Derivative financial instruments Level 3: Measurement based on models with significant valuation parameters that are unobservable on the market Equity instruments, earn-out liabilities, liabilities from put options Derivative financial instruments The carrying amount of derivative financial instruments corresponds to their current fair value, whereby the fair value was determined from the current market value based on the closing exchange rate for the foreign currency as at 30 June 2026, verified by corresponding bank confirmations. The following table shows the development of the derivative financial instruments: 30 June 2026 Derivative Total Sale currency Sale amount Purchase amount EUR thousand Average hedging rate Fair value EUR thousand AUD -4,500 2,728 1.69 35 CAD -1,000 670 1.52 53 CHF -721 795 0.91 4 CZK 2,000 -77 25.85 5 NOK -7,090 628 11.67 6 SGD -3,944 2,737 1.44 57 USD -17,739 16,273 1.11 630 23,754 790 AUD -2,590 1,544 1.71 -6 GBP -1,882 2,116 0.89 -53 HKD 2,010 -231 8.70 -6 HUF -457,198 1,126 408.49 -147 NOK -42,682 3,675 11.77 -60 SGD -44,975 30,796 1.46 -112 USD -15,110 18,133 1.17 -868 57,159 -1,252
Page 44
44 Other information Frequentis Group Half-Year Financial Report 2026 31 Dec. 2025 Derivative Total Sale currency Sale amount Purchase amount EUR thousand Average hedging rate Fair value EUR thousand AUD -5,547 3,254 1.70 153 CAD -1,456 963 1.51 59 CHF -986 1,087 0.91 7 CZK 3,000 -116 25.85 6 NOK -48,239 4,116 11.79 111 SGD -3,894 2,704 1.44 115 USD -35,245 31,109 1.12 1,452 43,117 1,903 AUD -1,137 630 1.81 -7 CAD 500 -327 1.53 -16 GBP -2,231 2,510 0.89 -8 HKD 2,010 -231 8.70 -13 HUF -381,724 918 416.00 -37 SGD -65 41 1.60 -5 USD -1,583 1,337 1.19 -3 4,878 -89 For the carrying amount of the MTM valuation, a positive fair value of EUR 790 thousand was recognised in other receivables as at 30 June 2026 (31 December 2025: EUR 1,903 thousand), while a negative fair value of EUR 1,252 thousand was recognised in other liabilities (31 December 2025: EUR 89 thousand). 19. Information on related party transactions Transactions with associated companies and related parties are not material and mainly comprise deliveries of goods and services. There was no significant change in existing business relations compared with the transactions presented in note 38 in the Annual Report 2025. 20. Significant events after the reporting date At the end of July 2026, Frequentis increased its interest in Nemergent Solutions S.L. from 24.83% to 51%.
Page 45
Frequentis Group Half-Year Financial Report 2026 Statement by all legal representatives pursuant to Section 125 Paragraph 1 of the (Austrian) Stock Exchange Act 45 Statement by all legal representatives pursuant to Section 125 Paragraph 1 of the (Austrian) Stock Exchange Act We hereby confirm that, to the best of our knowledge, the condensed interim financial statements as at 30 June 2026, drawn up in compliance with the applicable accounting standards, provide a true and fair view of the Group’s net assets, financial position, and results of operations, and that the half-year management report provides a true and fair view of the net assets, financial position, and results of operations in respect of the significant events of the first six months of the financial year and their impact on the condensed interim financial statements as at 30 June 2026, the major risks and uncertainties relating to the remaining six months of the financial year, and major business transactions with related parties that are subject to disclosure. Vienna, 7 August 2026 Norbert Haslacher Chairman of the Executive Board Monika Haselbacher Member of the Executive Board Peter Skerlan Member of the Executive Board Karl Wannenmacher Member of the Executive Board
Page 47
Financial Calendar http://www.frequentis.com/en/ir > Financial Calendar Notes / Disclaimer The terms “Frequentis” and “Frequentis Group” in this publication refer to the Group; “Frequentis AG” is used to refer to the parent company. Minimal arithmetical differences may arise from the application of commercial rounding to individual items and percentages. The forecasts, plans, and forward-looking statements contained in this publication are based on the knowledge and information available and the assessments made at the time that this publication was prepared. As is true of all forward-looking statements, these statements are subject to risk and uncertainties. As a result, actual events may deviate significantly from these expectations. No liability whatsoever is assumed for the accuracy of projections or for the achievement of planned targets or for any other forward-looking statements. The information contained in this publication is for general information purposes only. There can be no guarantee for the completeness of the content. Typing and printing errors reserved. Diversity, inclusion, and equality of all genders are an integral part of the Frequentis corporate culture and are reflected in our language. All references to people are therefore gender-neutral. Frequentis accepts no liability for any error or omission in this publication. The information in this publication may not be used without the express written permission of Frequentis. This document has been prepared in German, which is the official version. The English translation is for information only. In case of discrepancies in the English translation, the German version shall prevail. All rights reserved. Investor Relations: Stefan Marin Tel. +43 1 81150 1074 investor@frequentis.com www.frequentis.com/en/ir Group Communications / Company Spokesperson: Barbara Fürchtegott Tel. +43 1 81150 4631 communications@frequentis.com www.frequentis.com/en/pr Publishing details Frequentis AG Innovationsstrasse 1, 1100 Vienna, Austria Tel: +43 1 81150 0 © Frequentis AG 2026 22_COR_H1-2026_EN_0826
Page 48
www.frequentis.com