NTT DATA Business Solutions AG Ignite Growth Annual Report 2023/2024 Since 1989

NTT DATA Business Solutions AG Annual Report 2023/2024 Key Figures 2 Revenue development in MEUR Apr 1, 2023 – Mar 31, 2024 Apr 1, 2022 – Mar 31, 2023 611.2 563.7 Growth in earnings in MEUR 1,001.9 1,613.1 Apr 1, 2023 – Mar 31, 2024 859.7 1,423.4 Apr 1, 2022 – Mar 31, 2023 103.4 / 6.4% 99.2 / 7.0% Germany Abroad EBITA/EBITA margin Revenue development by regional segment in MEUR Revenue development by division in MEUR 2023/2024 2023/2024 9.4 (+27.0%) Other 99.6 (+4.8%) APAC 275.6 (+9.6%) America 316.3 (+23.9%) North and Eastern Europe 227.9 (+18.4%) Western Europe 684.3 (+10.1%) Germany /Austria / Switzerland 1,613.1 +13.3% 3.0 (-44.4%) Other 674.7 (+7.8%) Managed Services 36.7 (-27.0%) Licenses 128.4 (+42.7%) Cloud Subscription 770.3 (+18.2%) Consulting 1,613.1 +13.3%

NTT DATA Business Solutions AG Annual Report 2023/2024 Foreword 4 “The best is yet to come” Dear readers, It’s been more than eight years since I became CEO of I’m more sure than ever that this was the right course what is now NTT DATA Business Solutions – sufficient to take. We’ve come closer together since then and reason to take a look back. When I took on the role on made great strides in terms of standardization, not July 1, 2016, the company (then known as itelligence) least thanks to my co-director Jürgen Pürzer (our CFO), had already matured from a regional consulting firm who joined us in 2020 at the start of the Covid pan- into an international IT service provider and written an demic and immediately launched important initiatives impressive success story. in challenging circumstances. That said, the rapid growth of the preceding years had taken its toll: Our internal structures and processes had not kept pace with developments. There were too few standards and too many stand-alone solutions. There was also plenty of scope for improvement in terms of profitability. I was convinced that I had to tackle these challenges head-on even though our results were still ranging from solid to excellent. In an interview for the 2017 Annual Report, I therefore made the following state- ment: “We decided to take advantage of the good times to lay the groundwork for the future and initiate extensive measures.” Together with our management and employees (over 15,300 of them), we have been able to continue on our successful course – growing every year since 2017.

NTT DATA Business Solutions AG Annual Report 2023/2024 6 Vorstandsinterview Interview with the Management Board „KI hebt uns auf “AI raises us eine neue Ebene“ to a new level” NTT DATA Business Solutions blickt erneut auf ein Rekordjahr zurück. NTT DATA Business Solutions is once again looking back on a record year. Wo es besonders gut lief, was für weiteres Wachstum spricht und worauf What went well, what points to further growth, and what it will take to es jetzt ankommt, um noch enger zusammenzuwachsen: ein Gespräch mit form even closer bonds: a conversation with CEO Norbert Rotter, CFO dem Vorstandsvorsitzenden Norbert Rotter, dem Finanzvorstand Jürgen Jürgen Pürzer, and the new CEO of NTT DATA Inc., Abhijit Dubey. Pürzer und dem neuen CEO der NTT DATA Inc., Abhijit Dubey.

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 8 in all, we succeeded in overcompensating for the negative effects of high energy prices and inflation. Mr. Dubey, on June 6 you took on the role of CEO of NTT DATA Inc., which now combines the entire global business outside of Japan. Are you satisfied as well? Abhijit Dubey (AD): Yes. I would like to offer my con- gratulations to Norbert Rotter, Jürgen Pürzer, and the entire NTT DATA Business Solutions team. The growth in turnover and the improvements in profitability show that the company is well placed to catch the tailwind we are currently enjoying thanks to cloud migration and digital transformation. 1,200 new customers thanks to Sapphire Systems Mr. Rotter, before we take a look ahead, what were the highlights of last fiscal year for you? The company is well placed to catch the tailwind we are currently enjoying thanks to cloud migration and digital transformation. Abhijit Dubey CEO NTT DATA Inc. You bought two innovative software firms: the Brazilian company Conexos and the British company Sapphire. What do you expect from these takeovers? NR: Conexos is a leading software provider for trading companies, and purchasing it will expand our portfolio NR: We’ve seen our international business thrive: in in South America: Together, we will provide software the UK, the USA, Brazil, and Indonesia, for example. We that can be integrated seamlessly with SAP and will achieved around two-thirds of our growth outside our lighten the workload of our customers in Brazil. By home market. That being said, we still managed to purchasing Sapphire, we gained around 1,200 addi- grow by just over 10 percent in the German-speaking tional SME customers in the USA and the UK at once region – in my mind, a respectable result in an environ- and strengthened our position as a leading global SAP ment that was unconducive to growth. Of course, the partner for the SME sector. further highlights also include our two acquisitions. JP: That’s right. Acquiring Sapphire has enabled us to strengthen our business in two key markets and build a strong foundation for establishing and developing Abhijit Dubey CEO NTT DATA Inc.

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 10 How well is the closer collaboration within the Group working? AD: To be honest, we haven’t exhausted the great potential there by any means. But we’re on the right track. The number of joint projects rose significantly last year. We’re also leveraging synergies in other areas to reduce costs and for other reasons. JP: Indeed. On behalf of NTT DATA Business Solutions, I can say that we’re using cost synergies proactively in the Group. For instance, we’ve moved into the premises of sister companies as subtenants in Paris and Prague as well. Allow me to make a comment on the subject of real estate in this context: The reality of hybrid working allows us to invest in the quality of our office premises while lowering costs due to reduced floor space. Our offices in Cologne and Munich are cases in point. “SAP is on the right track” Mr. Dubey, you mentioned the new relevance earlier. Where do you see concrete opportunities for NTT DATA Business Solutions in the Group? mid-market. We’re more frequently in the running AD: Norbert is totally right. Scale means relevance, when major projects are involved. This allowed us to and as NTT DATA Inc., we’re among the top five of IT AD: The company is the leading SAP specialist within win a number of customers last fiscal year where service providers globally. This means we’re automat- the Group. I see great opportunities for providing SAP before we would probably not have had much of a ically among the candidates for major projects. We services, particularly to NTT DATA customers in the Asia chance. It’s clear that closer collaboration was the right can also offer customers even more added value Pacific and MENA regions. Thanks to sister companies, decision. through our close collaboration. From IT consulting NTT DATA Business Solutions will also be able to win to cloud services to IT security: with us, they get further large companies as customers (in the upper everything from a single source ( interview with mid-market, for example). However, in asking whether Abhijit Dubey page 14). NTT DATA Business Solutions is the right partner, the

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 12 The overriding goal: one group, one team our successful expansion in our core industry of experiences, skills, and traditions even closer together pharma/life science. and strengthening the team spirit, we will achieve all our goals. NR: I totally agree. We’ve gained important experience over the last few years and learned how to bring differ- ent companies and people closer together. One central insight: A corporate culture built on respect, esteem, and freedom of action for each individual is attractive to employees and really helps them grow together. I’m confident that we will mature as NTT DATA over the next few years and become one powerful unit and one team. Thank you all for taking the time to talk to us. Let’s look ahead to the coming months and years. Record-breaking results have a down- side: they’re hard to surpass. What goals have you announced for the current fiscal year? NR: The signs point to continued growth. We’ve done our homework and will capitalize on the tailwind produced by the digital transformation. JP: We’re expecting up to a six percent turnover growth on a comparable basis in the current business year. Regarding the EBITA margin, we’re aiming for more than seven percent, based on additional increasing revenues. To realize this, we’re continuing with a global cost and efficiency program, shifting our focus from numerous individual measures to fewer (but large-scale) strategic initiatives: implementing ServiceNow IT Operations Management in the Managed Services divi- sion or migrating an end-of-life data center in Europe to a co-location site, for example. Are you planning further acquisitions this fiscal year? Mr. Dubey, what are your expectations for the next few years? AD: Two indicators are particularly significant for us: growth in turnover and the EBITA margin. Over the medium term, we aim for the average percentage growth in turnover over the last two fiscal years plus the EBITA margin to reach a value of 25 or more. And NTT DATA Business Solutions can achieve much more. If we succeed in bringing people with so many different experiences, skills, and traditions even closer together and strengthening the team spirit, we will achieve all our goals. NR: Of course. We’ve recently acquired a majority interest in the company ProvenTech in India. “In collaboration with ProvenTech, we will be able to play a leading role in the pharmaceutical industry. They Abhijit Dubey CEO NTT DATA Inc. have niche, industry-specific expertise, advanced tech- And what’s important besides the figures? nical know-how, and an innovative product portfolio. This acquisition will accelerate our growth in India. At AD: We want to evolve into one group and one team. If the same time, it’s in line with our strategy to continue we succeed in bringing people with so many different

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 14 NTT DATA Inc. “Scale brings relevance” Around two years ago, NTT and NTT DATA consolidated their business outside Japan into NTT DATA Inc. We asked the new CEO, Abhijit Dubey, what opportunities the consolidation entails and what he aims to achieve over the coming years.

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 16 Does closer cooperation also mean lower costs? Yes. We can reduce redundancies in our portfolio and leverage synergies, e.g. by shared use of office space. Investment in artificial intelligence is a key issue for the future. What measures are you aiming to initiate in this area? Our big advantage is that we can scale innovations. The NTT DATA Group companies are currently devel- oping and testing various innovative AI technologies that will benefit fellow subsidiaries in the near future. Working together means we can not only invest more, but also try out more things. Can you find enough specialists and talented individuals to develop and implement AI solutions? The skills shortage is an obstacle in many regions, and not just when it comes to AI, which is why shoring We are also benefiting from our fellow regional units introducing us to their customers. After all, our combination of SAP expertise, a consulting mindset, and industrial know-how is attractive for many NTT DATA customers – and represents our USP within the group. In other words, combining our strengths is exactly the right answer to the funda- mental changes affecting the market. Taku Kawaai Executive Vice President Global Collaboration & Sales NTT DATA Business Solutions Conversely, we are increasingly involving NTT DATA Inc.’s other units with special expertise in migration and transformation projects when it comes to areas such as IT infrastructure and models are already extremely relevant. Attractiveness as “We are increasingly being recognized” data security. In this way, we are strengthening an employer is another important factor, and the group offers advantages in this respect, too. Together, we can offer greater mobility and additional career oppor- tunities for managers and top talents in particular. How is NTT DATA Business Solutions benefiting from being part of the group? each other within the same group while simul- taneously offering our customers even more in the way of adding value. Taku Kawaai: Since the company changed In other words, combining our strengths is exactly name, we have noticed that we are increasingly the right answer to the fundamental changes being recognized as a global player in the affecting the market. As companies evolve into upper mid-market segment and outside our data-centered intelligent enterprises, they no European core markets as well. This means we longer need narrowly focused service providers, are more frequently on the radar when it comes but broadly positioned companions who can to large-scale orders and complex projects. think outside the box and see the bigger picture.

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 18 As with everything else, the IT consulting business has been affected by the digital transformation. “20 years ago, you could usually conclude lucrative contracts when you contacted a customer as an SAP consultant,” Chief Consulting Officer Nicolaj Vang Jessen recalls about the early days of his career. But the IT consulting market has matured since then – and is highly com- petitive. After all, many more IT organizations now know which services they need and where to source them. “Consultants must therefore specialize to a much greater extent in terms of their know-how and keep it more up-to-date than just a few years ago.” There have also been fundamental changes in another area: A previously regional customer base is now global. In Germany, for instance, SMEs account for 97 percent of all exporters today. “They increasingly expect us to deliver global expertise and support,” reports Vang Jessen, who is responsible for Global Innovation and Industry Consulting. NTT DATA Business Solutions has responded to the global expansion over the last few years: The company now has offices in over 30 countries, in part due to close to 40 interna- tional acquisitions. Nicolaj Vang Jessen, Chief Consulting Officer, is responsible for “Global Innovation & Industry Consulting” and the Nordic and Eastern European countries (NEE region). He was a co-founder and CEO of 2C change, a company that was acquired by NTT DATA Business Solutions more than a decade ago. Innovative solutions enrich consulting Added to this is the fact that these requirements are tion approach also came to the fore. This development cannot be met by customizing standard solutions. tools globally. Over the next few years, a global innova- realized differently from one company to the next. This prompted closer collaboration between Global Inno- Vang Jessen also realized early on that innovative IT means that there is a mismatch between the solution vation, Product Development and Consulting. To gen- solutions and own IP assets not only help significantly the customer needs and the existing solutions from erate synergies, these units were amalgamated under increase consulting value for the customer, but are also the major software companies. the leadership of Vang Jessen in 2020. “Combining the increasingly sought after by customers. Companies’ functions has created a structured approach and ena- requirements for their IT solutions vary and can often In view of this, NTT DATA Business Solutions took the bled us to drive innovation in the product development not be fulfilled with a standard portfolio. This particu- decision several years ago to create a department for team.” larly applies to industry-specific requirements that streamlining its asset portfolio and scaling software

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 20 Conversion factory for SAP S/4HANA explains that by intensively investigating the customers’ challenges and demonstrating long-term commitment, One example of the large scaling potential of innova- you remain a relevant partner in their eyes. tions in IT consulting is the change to SAP S/4HANA. To facilitate the transition for as many companies as IT consulting is a business where human strengths possible, NTT DATA Business Solutions has established matter. And, according to Vang Jessen, that will remain a “conversion factory” in India with support from the case. “But with the appropriate innovations in Germany and other locations. Vang Jessen: “This allows the toolbox, it can become a successful global people us to pave the way to SAP S/4HANA for customers and business.” to assist them all the way to a successful outcome – at a fixed price with a clearly defined scope.” More than 200 customers have already made use of this service, and a lot more are expected between now and 2027. The particularly interesting thing is that the offer is not The deeper purpose of our innovations is to support customers on their entire transformation journey, as well as during subsequent phases, and to identify their actual needs in the process. restricted to mid-market companies: Mitsubishi Electric, Global Innovation & Industry Consulting (GIIC) a global corporation, recently also successfully made the switch. The GIIC organization investigates and solves competitive pricing model. In addition, a globally Advisory services – on the path to partnership services relating to consulting, software assets mented in fiscal year 2023. This comprises both a broad range of challenges through global consistent asset branding approach was imple- and industries. The aim is to develop solutions, small boosters and fully developed own IP prod- The transition to SAP S/4HANA is changing IT organiza- offerings and conditions to support local units ucts, enabling NTT DATA Business Solutions to tions’ relationships with their consultants, and joint and further their growth. One driver is increasing achieve consistent brand positioning. projects can lead to partnerships developing over time. customer globalization and the resulting change The software assets are key to realizing new potential, from a regional perspective to globally operating According to Nicolaj Vang Jessen, one success Vang Jessen reports. “We are currently experiencing a IT organizations. global trend, moving from process consulting to what factor lies in the fact that local units are not patronized. “They are responsible for their own is known as advisory services.” The latter provide a In its work, GIIC pays attention to defining results, and we don’t pursue a classic top-down long-term set-up and continuous support to the cus- cross-regional standards and ensuring that approach.” The focus is not on issuing instruc- tomer by offering solutions for constantly changing customers receive our services and solutions, tions, but on collaborating on an equal footing. challenges. “The deeper purpose of our innovations is no matter which country they are in. The service to support customers on their entire transformation packages comprise standardizable and repeata- journey, as well as during subsequent phases, and to ble consulting activities that achieve the same identify their actual needs in the process.” Vang Jessen quality level more efficiently and ensure a

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 22 Lars Janitz is Executive Vice President And how is it today? For example, we monitor customers’ systems in real time to identify, avoid, or quickly solve potential prob- and is in charge of Global Business & That kind of classic approach still exists, but it’s getting lems early on. We also offer our customers webinars, Managed Services. Born in Dresden and rarer. Greater choice, higher complexity, shorter inno- providing them with sound insights into innovations an IT graduate, he joined NTT DATA vation cycles, and also demand for uniform platforms and their economic potential as well as the dedicated Business Solutions in 2011 when it was still in the cloud are key challenges for companies. That’s benefit for their sector and their specific circumstances. itelligence. Since the start of his career, where we come in. The key phrase here is advisory This is a basis for jointly making the customer’s existing he has worked intensively in the field of services, which involves working with the customer solution even more efficient or stable if necessary. managed cloud services in the SAP land- to define the best possible solution, encompassing In addition, we have long-term collaborations with scape and on global transformation issues, industry requirements, platform strategy, and software technology partners enabling us to offer our custom- predominantly in management positions. solutions. This means that Managed Services and ers the best-possible combination of technology and way we strengthen our position as a strategic partner Consulting are increasingly working hand-in-hand. That processes from a single source. to companies. What exactly does that involve? How do companies and their IT departments feel about a closer partnership? The technology ecosystem today is defined by agility, We start off by sitting down with the customer and flexibility, and faster innovation, and the pressure on discussing their current situation, their framework, and IT departments is growing all the time. That’s why the requirements that derive from those. Then we customers increasingly expect us to provide proactive identify the matching services we have to offer and the and holistic services – and because they are often no respective value added. Customers thus receive advice longer able to individually manage a separate provider regarding the selection and planning of the IT land- or supplier for every task. Thanks to our growth in scape at an early stage, which then forms the basis for recent years and the networking with our affiliates in more intensive joint service engagements. the NTT DATA Group, we can satisfy their requirements – and not just in Germany, but on a global scale. Modular services and state-of-the-art payment models are making it easier for customers to change platforms and service providers. How do you handle this risk? Does focusing on SAP place limitations on that? We stand by our SAP strategy in principle, and the By leveraging the opportunities of technical devel- customer’s IT should be fundamentally focused on SAP opment. We call it proactive customer success as well. But there’s far more potential in today’s ecosys- management: tem than before: Because we’re thinking and working

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 24 Turkey & MENA success story Why people matter to Dr. Bahri Danış NTT DATA Business Solutions is experiencing remarkable growth in Turkey, the Middle East, and North Africa. One of the key drivers behind this success is Dr. Bahri Danış. His recipe for success: Engage with everyone.

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 26 Dr. Bahri Danış is the CEO responsible for the regions of Turkey, Middle East and North Africa at NTT DATA Business Solutions. Danış joined the company following the acquisition of the Turkish SAP consultant Elsys in 2012. Appointed as itelligence MENA Sales and Professional Services Gen- eral Manager in 2014, Danış became CEO of itelligence Türkiye and MENA in September 2016. Dr. Danış has contin- ued in the role of CEO at NTT DATA Business Solutions Türkiye and MENA since April 1, 2021. Our dedicated team has played a crucial role in this growth to date and will remain amongst the strongest success factors in the future as well. Process knowledge is key Danış firmly believes that this process expertise, and not the technology alone, is the essence of NTT DATA become aware of NTT DATA Business Solutions as an attractive employer at an early stage. “People will always be the crucial factor,” Dr. Danış concludes. “Firstly because of the customers’ requirements, and Business Solutions’ business model. After all, technol- secondly because of the expertise that we possess.” People will always be the crucial factor. Firstly because of the customers’ requirements, and secondly because of the expertise that we possess. ogy alone is increasingly becoming a standardized commodity. He offers an example: As it stands, the process still involves going to the customer, writing down their demands, returning to the company and discussing the requirements with developers, whose work is then extensively tested. But Danış believes that many tasks, especially simpler ones, will be handled differently in the future. “That’s why we ourselves are currently developing a GenAI-supported virtual consultant to do this kind of work.” But the specialist expertise, the process know-how, a deep understanding of the market, providing solutions to major challenges, “all of that will still be the domain of real consultants in the long term.” Cultivating talent But how can this knowledge be established and retained within the company? This is why Turkey has had the “One Talent recruitment program” since 2016. The program aims to make graduates aware of the company and to retain existing employees. And it has proven extremely successful in both respects: “Around 6,000 university graduates apply to us every year,” says Danış, “and we hire the best 200.” Also, around 97 percent of all new hires are still with the company years later. And cooperation programs with partners such as universities ensure that students

NTT DATA Business Solutions AG Annual Report 2023/2024 Management 28 digitalization and climate protection. The reason is that “Solar energy will no longer be a peripheral phenome- photons are “much faster and their propagation non, but become a key source for the energy supply in requires less energy.” That makes the technology “the many countries. Wind farms will stretch across oceans ideal solution for high-speed transmissions with low and landscapes, and innovative battery technologies power consumption.” will store excess electricity for times of low yield.” Dubey goes on to say that photonics reduces energy In addition, Hopp appeals to readers to assume social demand “drastically” and is therefore “a crucial sustain- responsibility. “For private individuals, this starts with ability factor.” The NTT Group is consequently driving careful use of resources, from water to heating energy; an initiative called IOWN (Innovative Optical and for companies, it means thinking and acting sustaina- Wireless Network), a communication and computer bly at all levels. I sense that we’re making great strides infrastructure based on photonic technology. in this segment.” Dubey forecasts that this will enable “data processing In a democratically constituted society, says Hopp, in volumes 125 times larger than those in current we are very lucky to have a say in what this country of Click here to order the book https://nttdata-solutions.com/de/ignite-2034/ The book gives readers first-hand accounts of how networks. Added to this is a virtually instantaneous Germany, what the world will look like in 2034. We the climate crisis, artificial intelligence, and other mega transmission with a latency reduced by a factor of 200 should seize this great opportunity, become involved, trends will change our cities, our jobs, and our lives. combined with extremely low power consumption, turn into ambassadors and actors for the climate and A particularly welcome aspect: Instead of fueling boosting efficiency 100-fold when compared to today.” for the future of the generations to come.” pessimism or disseminating apocalyptic scenarios, the authors have encouraging messages. This applies “Maybe change even needs some audacity” especially to Abhijit Dubey and Dietmar Hopp. “Is electronics as we know it finished?” The chapter contributed by Dietmar Hopp makes you look forward to the future. “I know from experience that change needs courage, maybe even audacity,” In his contribution, Dubey, the new Global CEO of writes the SAP founder. “My own life story gives me NTT DATA Inc. ( Interviews page 6 and page cause for hope that we will be able to win the fight 14), examines one of the most exciting technological against the impending climate catastrophe.” He goes developments of this millennium. “We believe,” Dubey on to say that his professional experience has “taught writes, “that electronics will be replaced by a new him to believe in the transformative power of technol- approach: photonics.” He explains that if data were transmitted by light instead of electrons it would provide a huge boost to ogy.” Hopp forecasts that technological progress will make it possible “to use renewable energies more efficiently and to drastically reduce CO2 emissions.”

NTT DATA Business Solutions AG Annual Report 2023/2024 Teamspirit 30 From soccer to handball, basketball to curling, winning Team spirit is also aspired to within companies – an Motivation and friendliness a title always calls for a real celebration. And no intangible essence that not everyone picks up on. It is sooner has the applause died down than the analysis meant to help the organization to rise to new heights Employees from NTT DATA Business Solutions around begins: What propelled this team to victory? What and exceed its objectives. Managing this spirit in a the world have varying responses when asked what it pivotal moment sealed the win? Who were the stand- soccer team of eleven players is challenging enough, is that sets the company apart, yet the most common out players? but it’s manageable with the right coaching team. explanation for its success is the motivating and The athletes of today benefit from comprehensive digi- more employees? In this context, it’s crucial to align tures. Executive Vice President Global People Dieter tal evaluation and support, for example through the individual strengths, different personalities, and vari- Schoon drives this point home with an unconventional use of SAP software for the RPE (ratings of perceived ous motivators to ensure everyone is always working explanation: “Our employees have concern for the How does this translate to a company with 15,000 or friendly cooperation that transcends hierarchical struc- exertion) to gauge their overall condition or tools like toward a common goal. SAP Penalty Insights. In this way, many success analy- ses begin with what appears to be objective data, with individual stats, training performance, movement patterns, tackling, and lactic acid levels all strategically woven into a game plan designed to beat the opponent. Searching for the perfect season But can we really explain the perfect seasons of Arsenal (2003/04), Juventus (2011/12), or Bayer Leverkusen (2023/24) – without a single defeat between them? Because beyond the hard facts, there must be another explanation that, while not quantifiable, was clearly evident on the pitch. People talk about how it was down to the chemistry between the players or the fan- tastic team spirit, and, not least, how everyone pulled together. In the end, the general consensus is that these impressive sporting victories would never have been possible without such a strong sense of cohesion within the team. It’s important to me that we attract individuals who not only listen, but can also express their opinions – and act on them as well. Dieter Schoon Executive Vice President Global People NTT DATA Business Solutions

NTT DATA Business Solutions AG Annual Report 2023/2024 Teamspirit 32 NTT DATA Business Solutions offers many initiatives for recognizing its employees’ accomplishments. That really motivates me. Julia Malcharczyk-Kusto Project Manager, Poland less of whether there are five or 15,000 team members. Yet respecting your teammates and passing the ball in front of the opponent’s goal isn’t enough. An effective corporate culture also involves taking responsibility: Taking the ball yourself, positioning yourself strategi- cally, daring to take risks – and ultimately being rewarded for success. This includes acknowledging mis- takes and celebrating achievements when they come. As team leader of an enterprise integration team, I now pass on to others what was imparted to me during the early years. This includes helping people, whether I know them or not. Sarah Niemeyer Head of Enterprise Integration, Germany “I always tell them how delighted I am that they can now play a part in improving our corporate culture.” This approach by the HR director is meant to make it clear to new hires “that they can and should make a meaningful impact on our company’s future through their unique personalities.” Clarity and respect This attitude also involves calling a spade a spade. If Schoon expects one thing from old and new employees alike, it’s this: “If you spot an elephant in the room, call it out and don’t skirt around the issue.” Only those who are willing to discuss problems actually contribute to fixing them. Nevertheless, a candid approach like this needs a counterbalance, or else words could hurt or cause offense. This counterbalance is having respect for others. It’s essential to learn how to see people as a whole – not just as employees. Responsibility and appreciation As a good company culture takes root, this process tends to happen organically. Those who have been supported in their work tend to pay it forward, regard- What I value most in our company is the culture and how approachable the employees are. Ariel Hernãndez Legal Leader, Brazil

NTT DATA Business Solutions AG Annual Report 2023/2024 Teamspirit 34 Quality drives business Responsibility, appreciation, authenticity, and mutual recipient of an award that only 17 organizations respect – when an organization cultivates these and worldwide have achieved this year: the Gold Seal of other qualities, word gets around both within the Approval as a Global Top Employer. company and beyond. It’s no surprise that many new employees join NTT DATA Business Solutions through recommendations from current staff. As Aileen Rakow, Head of Global People Develop- ment, says, “I learned about the company through a personal contact who couldn’t stop telling me about the fantastic working environment.” Despite having little exposure to the IT consulting sector and the SAP ecosystem specifically, Rakow adds, “I was so fascinated by the unique culture and hands-on mentality from the very first moment that I knew I I learned about the company through a personal contact who couldn’t stop telling me about the fantastic working environment. just had to be a part of this company.” Today, Rakow This badge is awarded to companies that offer excel- leads “a dynamic team of globally active and dedi- lent working conditions, which include structures and cated talents in Germany, focusing on lifelong learn- processes that allow employees to develop in line with ing and the targeted personal and professional their needs. In four of the six overarching HR catego- development of employees.” ries – Steer, Shape, Attract, Develop, Engage, Unite – NTT DATA Business Solutions outperformed the So, how do you find people who are open to this kind benchmark from 2,300 companies evaluated world- of personal development? One approach is to turn wide. “There’s no denying the sheer amount of effort to headhunters and influencers – for instance, more that went into achieving this award, but it certainly than half (53 percent) of new hires are specifically paid off twofold,” sums up Dieter Schoon, Chief HR targeted beforehand, with additional recruitment Officer at NTT DATA Business Solutions. “Not only through social media platforms such as LinkedIn, does it give us an effective way to demonstrate to the TikTok, and Instagram. Alternatively, over 25 percent public that we are a good employer, the evaluation of new hires come from recommendations by rela- process itself gave us the opportunity to scrutinize tives, friends, and even neighbors. It also helps that, our own structures and optimize them where in 2024, NTT DATA Business Solutions was the proud required and possible.” Aileen Rakow Head of Global People Development, Germany NTT DATA Business Solutions

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 36 “The World is My Oyster” Unlocking the Software Markets of the Future Business in the United Kingdom and Ireland (UK&I) is changing. The acquisition of Sapphire Systems in late 2023 strengthened two business areas: mid-market business with SAP solutions and the ServiceNow market. In this interview, Justin Brading, Executive Vice President Western Europe and Managing Director UK&I, explains what strategy he is pursuing.

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 38 It brings to mind the saying from Shakespeare: “The world is my oyster.” You just have to open it to find a pearl. How do you plan to go about that? Where do you see the first points of contact between the software platforms? About Sapphire The background for ServiceNow has been in IT Service and Operation management which automatically com- Our clear focus is on quickly transferring ServiceNow plements SAP. These are evolving into business work- capabilities from the UK to the entire Group. This flows. Here, we see possible opportunities to combine involves specialists from the ServiceNow ecosystem our SAP expertise with ServiceNow, such as in the field joining existing teams for fast scaling. Our attractive- of human experience management. In the SAP world, ness as an employer helps bring external talent into SuccessFactors is a great system of record in the back the organization. We currently have over 700 employ- office for people management. ServiceNow can do user- ees in UK&I and are aiming to expand. friendly workflows better, for example in the employee Sapphire was founded in 1992 and is headquartered in London and employs around 420 specialists. The company’s offices in the UK and USA are sup- ported by teams in countries including India, the Philippines, South Africa, Argentina, and Lebanon. Sapphire specializes in business solutions relating to SAP, ServiceNow, Infor, Hexagon, and Automa- tion Anywhere. Following its acquisition in fall 2023, more than 1,200 existing customers and 400 employees were transferred to the NTT DATA Group. That brings us finally to SAP – what are you expecting from your core business? center or the mobile app. They complement each other very well when you can integrate them with each other. In addition to ServiceNow, NTT DATA Business Solutions is increasingly focusing on the Micro- soft world. What is your vision for the years ahead? For our customers, we aim to be a partner who supports them in the strategic part of their application portfolio. For our customers, we aim to be a partner who sup- There are political and economic concerns, of course, ports them in the strategic part of their application such as those around economic growth. But our value portfolio. As the ERP platform, SAP is beyond question, proposition is still very strong: We have an extremely but there are also supplementary applications around solid position in the SAP world, and our approach of the core. You have to be proficient in these as well if leading companies to S/4 and Rise with a packaged ser- you want to implement a holistic approach as a partner. vice conversion factory is vital. That also applies to our And in addition to ServiceNow, this includes Microsoft own IP tool for data transfer from Natuvion. We help Stack, from the hyperscale platform to Teams. Many organizations take a major step forward on their SAP customers use Microsoft Azure so here we want to be journey and expect organic growth because we are able to support for instance in the area of analytics. gaining market share. A recent example is a British The portfolio from the three software companies forms challenger bank that has become our customer. In the the sweet spot in the enterprise customer market, as ERP field, things don’t change overnight, but we are there are now two escort ships sailing alongside the continuing to sense the enormous momentum in the ERP supertanker. market.

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 40 Philip Taphouse was Chief Technical Officer (CTO) at organizations for years – much like SAP in the business Sapphire when he found out about NTT DATA world. It’s an ideal combination, given that ServiceNow Business Solutions’ acquisition in the fall. “The first and SAP integrate very well. Together with the Microsoft thing that crossed my mind was that I’d never worked stack, this creates a system of record, a system of work- for such a big company before.” So, he did some flow, and a system of communications. As Taphouse research, talked to a few people, and started looking points out, “Bringing it all together takes you on a into the new owners’ background and plans. “Justin pleasant journey from the SAP interface of the 90s to and his team were keen to speed up mutual growth the ability to request vacation time via an MS Teams and were always very clear about pitching the move message.” This business opportunity is at least as large as a merger rather than a takeover.” Once the vision as the market for service operation workflows. and goals of the merged company had been formally presented, Taphouse found the new opportunities ServiceNow in the SME market incredibly exciting. “Even though I sort of considered ServiceNow can be effec- tively utilized in the mid- market too, by leveraging only the most pertinent features and functionalities of the platform rather than every available option. Philip Taphouse Vice President and Centre of Sapphire my baby.” But isn’t ServiceNow primarily for large corporations? Excellence Head – ServiceNow That’s a common misconception about the platform, Executive UK&I, NTT DATA Business Solutions Philip Taphouse has, in fact, been a key player in the according to the expert. Even small and medium-sized incorporation of Sapphire, having dedicated his entire enterprises often have stringent requirements for career to IT service management and IT operations trouble-free IT organization, particularly in sectors like management. After working in 20 various positions at challenger banks, retail, and tourism. “ServiceNow can small firms, public institutions, as an entrepreneur, and be effectively utilized in the mid-market as well by in global corporations, he has acquired the nickname leveraging only the most pertinent features and func- of “The ITOM Guy”. Having amassed over 5,000 follow- tionalities of the platform rather than every available ers on LinkedIn and even launched his own blog on the option.” Taphouse also suggests that tried and tested subject, he definitely qualifies as a business influencer. approaches and best practices from enterprise-level “And ServiceNow was the native platform where it all operations can be adapted for use in the mid-market. happened.” A Trifecta in the software stack The aim here is to establish a standardized methodol- ogy in the service operations sphere, enabling repeata- ble scalability of installations. This includes offerings such as “ITOM as a Service”. Today, Taphouse is the ServiceNow Vice President and Head of the Centre of Excellence at NTT DATA Business Solutions, roles that involve spearheading a business known for its high economic potential. After all, the platform has been established as a standard in many IT

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 42 From Brazil to the World New Modules for the Software Product Portfolio In fall 2023, NTT DATA Business Solutions acquired software company Conexos in Brazil. The specialist in foreign trade manage- ment is an important addition to the global own IP portfolio – proprietary software applications for specific tasks. Ricardo Fachin and Claudenir Scalzer explain the reasons for the acquisition and outline the potential of proprietary programs.

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 44 The existing 300 customers of Conexos – who were says and adds that they are not interested in compet- SAP solution. This freedom opens up the opportunity mostly outside the SAP ecosystem – now had the ing with SAP. “That wouldn’t make any sense,” says to do other business in addition to the core business. advantage of being supported by a global tech group, Fachin. “We need tools that do not exist elsewhere with “After all, NTT DATA Business Solutions has enough says Scalzer. “We can lead the digital transformation the same functional depth, and we would be ill-advised strong points of its own for us to talk about.” And process of our customers with the backing of the NTT to develop something that SAP is already marketing.” with Conexos, a further asset has been added to the DATA Group.” Technical and financial capacity strength- own IP portfolio. ens credibility and trust where large projects are The CEO is therefore looking for functional gaps in the concerned. Develop locally, sell globally SAP portfolio: “If the niche is big for us and tiny for SAP, we’ll decide to invest there specifically.” This enables NTT DATA Business Solutions to speak to customers who do not necessarily have to be interested in an One specific advantage of the GTM segment is that it is more homogeneous than the ERP market in terms of local and legal requirements, which means less locali- zation is required. “The major effort is in go-to-market,” International trade – a broad field says Claudenir Scalzer. “The biggest challenges are in pre-sales, sales, pricing, local delivery, and the compet- Global foreign trade is a complex system. The Using 65 integrated software bots, the platform itive environment.” The Conexos tool is already in oper- variety of actors, legal framework conditions, can take on repetitive routine tasks, free up staff, ation for customers in Switzerland, Hong Kong, Chile, customs duties, and non-tariff trade barriers such and eliminate potential human error. In addition, and the USA. It shows potential for synergies: NTT as quotas, embargoes, technical standards, and more than 4,000 reports provide support for DATA in Japan has developed proprietary global trade customs procedures lead to various interdepend- strategic decisions. software for major companies. “We worked intensively encies. In addition, the logistics of importing and with our colleagues on ways to combine the two solu- exporting goods and raw materials is strictly The primary focus is on the Brazilian market, tions,” says Ricardo Fachin. “This will enable us to use regulated in Brazil. The calculation of taxes and says Claudenir Scalzer, co-founder and CEO of Conexos in Asia, where many trading companies are communication with Siscomex, the government’s Conexos. “We will strengthen our base here first based, in coming years.” foreign trade system, are very different compared before we expand internationally on a large scale.” The CEO in Brazil is pleased that to other countries. Brazil is the biggest market in Latin America after all; only Mexico comes close. And domestic trad- NTT DATA Business Solutions has Conexos Cloud, Brazilian software for Global ing companies have grown strongly, even during begun “a new cycle” in which solutions from other software Trade Management (GTM), is a modular SaaS the pandemic. After this phase, the way forward program that automates import and export pro- is clear, adds Ricardo Fachin, CEO of NTT DATA companies such as ServiceNow, Microsoft, cesses for customers. Its aims are to overcome Business Solutions in Brazil: “The solution will and Salesforce are also being added to the portfolio. bureaucratic barriers and facilitate the efficient then be ready to be developed and marketed on a Software will strengthen the company’s identity, he processing of customs clearance procedures. global scale.”

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 46 The speedboat from Lake Constance Despite Sybit’s distinct separate identity, it does collab- orate with other entities within the Group. In the DACH region in particular, interaction with the other units of NTT DATA Business Solutions has continuously improved since 2018, reports the CEO. And a large part of the company’s success is based on this, he says: “Our plan to jointly expand our customers, synergies, and interfaces with the Group has worked very well.” Co-founder Regele is proud that the company is still “We recently demonstrated modern AI use cases for sailing under its own flag six years after the takeover: SAP programs on our stand at the OMR Festival,” recol- “We see ourselves as a speedboat, which can respond lects Thomas Regele. Two AI-supported functions in immediately to new trends and opportunities and the new SAP Sales Cloud V2 were particularly popular: quickly adapt to changing market situations.” the Lead Booster, which provides customized informa- tion about a lead, and automated email drafting. Lots Nowadays, artificial intelligence tops the priority list, of visitors were interested and wanted a closer look, and the CX software segment aims to take its potential says Regele. The question most people asked first of all to a new level. “For us, it is an amazing development, was: “Is that real or fake?” and most customers now understand that AI has immense potential.” AI is not only changing daily tasks Thomas Regele is CEO of Sybit, which has been part of through automation and boosting efficiency, he says, NTT DATA Business Solutions since 2018. At the com- but also opening companies’ eyes to previously unrec- pany, 350 experts work on optimizing the interface ognized customer needs. “And if people are able to between people and processes, primarily with SAP soft- control complex processes in a natural dialog with a ware. Within NTT DATA Business Solutions, Sybit acts machine as a matter of routine in the foreseeable as a “focus unit” that prioritizes the development of future, that will be a massive game changer for the CX-related processes in collaboration with other CX customer experience.” teams in the USA, South America, Asia-Pacific, Turkey, the Nordics, and the UK. “That’s why we didn’t have any fake applications at the trade fair, but genuine use cases in the SAP Sales and Service Cloud,” clarifies Regele. Thomas Regele CEO Sybit We see ourselves as a speedboat, which can respond immediately to new trends and opportunities and quickly adapt to changing market situations.

NTT DATA Business Solutions AG Annual Report 2023/2024 Acquisitions 48 the S/4HANA DB, for example. This is analyzed by the AI and the results are made available on the CX plat- form. Regele says: “Sybit’s vision as part of NTT DATA Business Solutions is that we can provide end-to-end support for our customers with AI.” Sybit’s vision as part of NTT DATA Business Solutions is that we can provide end-to-end support for our customers with AI. He also expects greater momentum in the e-commerce sector, where a new version of SAP Commerce Cloud is due to come out in 2025, with AI functionalities as standard. Regele says SAP Commerce Cloud is “a very extensive framework in which a lot can and must be adapted individually.” This includes design and UX – with AI, the diverse and creative wishes of customers can be implemented even more effectively. As a result, this will significantly strengthen the individual charac- ter in e-commerce. SyGusto – AI for coffee machines “When we say that AI will significantly drive the matically plans the right orders and interactions.” CX, most customers prick up their ears,” says This benefits both the user and the service Sybit CEO Thomas Regele. The company has technician. therefore developed a comprehensive customer service portal based on SAP CX as a use case. Regele is pleased that highly promising innova- It includes an online store in which virtual, tion meetings on collaboration in the context of high-quality SyGusto coffee machines are on the AI-driven customer journey are taking place sale. Linked to the store are sales, service, and more frequently with the outstanding team, led marketing, which together ensure a comprehen- by Thomas Nørmark, Director and Global Head sive customer journey. of innovation at NTT DATA Business Solutions. There is still some convincing to be done, as The medium-term objective: “In the future, we many people equate AI with another level of want to incorporate more and more AI-supported complexity. “In the medium term, however, we functions into systems like these, which, for will reach a new level of customer experience example, enable precise identification of spare with AI when requests and problems can be parts even from amateurish photos. These and easily solved in a natural dialog.” other functions are currently being developed by NTT DATA Business Solutions.” Also included are voice interfaces that allow the search for a suita- ble heating coil, brewing unit, or drip tray to be taken to a new level. Regele says: “Imagine simply talking to the AI based on an image, and it auto-

NTT DATA Business Solutions AG Annual Report 2023/2024 Innovations 50 The Game Changer for AI Avatars Digital Humans: Out of the Box! Thomas Nørmark has been refining the capabilities of avatars for many years. The next generation of digital humans is now coming onto the market: They perform better, look more human, and manage to perfect the illusion of a personality more effectively than in the past. Driving this trend are two technical game changers in the frontend and backend: metahumans and AI agents. Both are set to revolutionize the AI segment over the next few years.

NTT DATA Business Solutions AG Annual Report 2023/2024 Innovations 52 but very different from Pearl. He works in a job center needed, the AI agent generates an SQL command to number of experts who can provide support world- and looks professional, not sporty. Nørmark says: “Be it search the hotel’s database. “There was also a game wide – around 50 AI specialists in total. hair, skin color, looks, or freckles – external appearance changer in these areas in 2023.” can be adjusted quickly and efficiently depending on the application scenario.” From research to delivery The goal is far from being achieved – after all, every new technology creates more challenges. However, Nørmark is in no doubt that metahumans are the We are now in a very good position to shape AI development and the competition from the front. As development progressed, the innovation team at future of interaction between people and machines. He NTT DATA Business Solutions also changed significantly, is now working on the features of the next generation: says Nørmark. “We’re switching from a technically- “Imagine the person being reflected in the eyes of oriented approach for research and development to the avatar in real time – that’s how a deep emotional scaling and to the roll-out of avatars.” This requires a connection can be formed.” It is a tough challenge that large, professional product team and global delivery – requires a lot of computing power, admits Nørmark. in Europe plus in the Philippines and Japan, as well as “However, given technological progress, we should in the USA in the future. One reason is, says Nørmark, be able to manage it within a few years.” Intelligent AI agents that the GenAI revolution has made customers much more open to avatars and the technology as such. Demand for their integration into websites is growing “as AI avatars are much better than annoying chat- The avatars’ intelligence is based on the concept of AI bots” ( page 53). agents, which Nørmark considers the best strategy for optimal output. AI agents can autonomously complete AI market is moving forward tasks, process data, make decisions, learn from the results, adapt, and interact with their environment, Meanwhile, Pearl has found a new job at the New all without programmed rules. The agent selects the Zealand Campus of Innovation and Sport. “We are necessary resources based on the context and user now in a very good position to shape AI development requirements, says Nørmark. “Because it knows which and the competition from the front,” says Nørmark. tools are most suitable for solving a task.” Four crucial factors converged at NTT DATA Business Solutions, he says: an early start, financial resources, For example, to calculate the distance from a hotel to technical expertise, and the global strength required the train station, a location tool such as a Google API to implement projects quickly and efficiently. In is required. The result is then provided using a large addition to the metahuman core team, there are cur- language model (LLM) such as ChatGPT-4o. If further rently an extended team for delivery in Denmark and information on sustainability or guidance on pets is centers of excellence in Manila and Tokyo, plus a

NTT DATA Business Solutions AG Annual Report 2023/2024 Innovations 54 Not many people think of buying and selling used cars as an enjoyable activity: The lack of time, experience, Eşref Türkok, AI Team Lead for NTT DATA Business Solutions in Turkey. This increases service efficiency of the proposal were also particularly favorable, recalls the team leader. “Two of our AI consultants developed and market transparency often makes people fear they while reducing response times, which our customers VavaBot in the space of around two months and then won’t get a good deal. This is precisely what prompted definitely appreciate. VavaBot provides quick, accu- worked with the VavaCars IT team to integrate it with Turkish used car platform VavaCars to update its web- rate, and human-like responses to customer inquiries, their systems.” This use of AI makes it possible to site to make information more accessible to customers such as: – featuring a chatbot powered by NTT DATA Business Solutions. But what really sets it apart is its use of gen- erative AI (GenAI). Standard questions on retail sites can already be answered by traditional chatbots, whose intelligence follows predefined rules. And when the classic bot reaches its limits, the task is escalated to a human: Powered by GenAI – in this case, ChatGPT 3.5 – the Quick projects, lasting impact achieve greater output with fewer resources. “The costs for consultant work in these projects are on a down- ward trend as GenAI solutions can shorten the devel- opment cycle.” In contrast, their overall IT architecture is fairly ordi- nary, featuring a frontend interface for the website, a backend system managing business logic and integra- tion, and a Microsoft Azure AI component analyzing questions and formulating responses. Türkok explains that the chatbot functions within a serverless environ- ment to ensure scalability and reliability. “We also use RESTful APIs to retrieve vehicle data and FAQ responses from the VavaCars databases,” he notes, emphasizing the flexibility afforded by this setup with various poten- tial data sources. VavaBot uses the latest data One crucial advantage over the previous chatbot generation is its ability to retrieve current information rather than relying on day-old data. “We’ve imple- mented automated processes for data synchronization to ensure vehicle listings and FAQs are always kept up to date,” explains Türkok, adding that these updates new VavaBot is in a different league. “We know there How did NTT DATA Business Solutions secure the con- are carried out at regular intervals. There is also an are many different chatbots on the market, but our tract? “Because we are the first company to use OpenAI admin interface allowing content managers to manu- VavaBot significantly reduces the repetitive questions technologies and customer-centric solutions in our ally update information as needed. directed at customer service representatives,” explains own IP projects in Turkey,” explains Türkok. The terms

NTT DATA Business Solutions AG Annual Report 2023/2024 56 Group Financial Report

NTT DATA Business Solutions AG Annual Report 2023/2024 Report of the Supervisory Board 58 The Supervisory Board’s deliberations regularly included the company’s economic fully with the objectives of the German Corporate Governance Code. They wish to situation and development, its financial and liquidity situation, investment projects, promote good, trustworthy company management that benefits shareholders, the risk position and risk management, as well as corporate planning and strategy. employees, and customers. The Executive and Supervisory Boards report on this in detail in the Corporate Governance Report, which is published alongside the com- The following topics and resolutions were also major focal points during the past pany report. fiscal year: • Audit, approval, and adoption of the annual and consolidated of employee development, the integration process at acquired companies from a financial statements for fiscal 2023/2024 personnel perspective, developments in management and the management struc- • Appointment of KPMG AG Wirtschaftsprüfungsgesellschaft (Berlin) ture, and the objectives and programs of the People Organization. The Personnel Committee dealt in particular with Executive Board matters, questions as auditor for fiscal 2023/2024 • Determining and reviewing the budget for fiscal 2023/2024 The Strategy Committee chiefly dealt with the orientation of the company within • Annual planning for fiscal 2024/2025 the NTT DATA Group, the company’s own strategies and objectives, investments, • Investments and planned acquisitions, as well as subsequent acquisitions, and the global cost and efficiency program initiated by the company. integration projects • Monitoring of the early risk detection system established by the At the Annual General Meeting on July 16, 2024, resolutions were passed on appro- Executive Board • Executive Board matters priating the retained profit from fiscal 2022/2023, former Executive and Supervisory Board members were discharged, and the auditor and consolidated auditor for fiscal • Support for financial projects and escalation projects 2023/2024 appointed. • Developing and expanding the internal audit The Supervisory Board’s Audit Committee thoroughly examined the annual and (Berlin) as auditor and consolidated auditor for fiscal 2024/2025. KPMG had previ- consolidated financial statements in fiscal 2023/2024, particularly dealing with ously informed the Supervisory Board Chair that there were no circumstances that new developments in accounting and their future consideration in the annual and could compromise its independence as auditor. Finally, KPMG thoroughly reviewed consolidated financial statements, and issues related to the planning process. It the annual financial statements of NTT DATA Business Solutions AG and the consoli- also looked at the planning and progress of risk management and the compliance dated financial statements as well as the management reports of NTT DATA Busi- management system, as well as the internal audit. ness Solutions AG and the NTT DATA Business Solutions Group. No objections were The Annual General Meeting appointed KPMG AG Wirtschaftsprüfungsgesellschaft In fiscal 2023/2024, the Supervisory Board also examined compliance and further examined the report on relationships with affiliated companies (Dependency development of corporate governance for proper and appropriate company Report) prepared by the Executive Board and issued its unqualified audit remarks. raised, and this was confirmed in unqualified audit remarks. The auditor also management. Furthermore, the Executive and Supervisory Boards jointly examined the recommendations and suggestions of the German Corporate Governance Code. The Executive and Supervisory Boards of NTT DATA Business Solutions AG identify

NTT DATA Business Solutions AG Annual Report 2023/2024 Corporate Governance-Bericht 60 Corporate Governance Report 2023/2024 The Management Board and the Supervisory Board of NTT DATA Business Solutions Management Board and Supervisory Board AG attach great importance to corporate governance. In our view, only responsible corporate governance can sustainably increase the value of the company in the long As a German stock corporation, NTT DATA Business Solutions AG has a two-tier man- term. The governing bodies of the company are therefore committed to the princi- agement and supervisory structure in the form of its Management Board and Super- ples of the German Corporate Governance Code (DCGK). The implementation of visory Board. The Management Board is responsible for managing the company. The these principles is intended to stabilize the trust of customers, employees, and the Supervisory Board advises and monitors the Management Board in its management public in the company at a high level. of the company and is of the opinion that it has a sufficient number of independent members. It is responsible for appointing and dismissing Management Board mem- The Management Board and the Supervisory Board addressed corporate govern- bers. Both governing bodies of NTT DATA Business Solutions AG have been working ance topics on several occasions in the past fiscal year. NTT DATA Business Solutions together efficiently and in a spirit of trust for many years. AG’s Management Board and Supervisory Board are guided by the recommenda- tions and suggestions of the current version of the GCGC, dated April 28, 2022. In fiscal 2023/2024, the Management Board reported to the Supervisory Board Although the DCGK is primarily aimed at listed companies and companies with regularly, promptly, and comprehensively on all material aspects of planning, busi- access to the capital market, the Management Board and Supervisory Board believe ness development, and the position of the Group by way of written and verbal that the internationally and nationally recognized standards of good and responsible reports. These reports focused in particular on the risk situation, risk management, corporate governance set out in the DCGK also ensure the quality of corporate gov- and compliance. Transactions of material importance require the approval of the ernance at NTT DATA Business Solutions AG. The structure of NTT DATA Business Supervisory Board. Solutions AG as a group company of the NTT DATA Group differs from a capital mar- ket-oriented company in terms of shareholder structure and access to the capital The Supervisory Board also meets regularly without the Management Board. market, among other things. The Management Board and Supervisory Board of NTT DATA Business Solutions AG consider the DCGK to be a useful guideline for ensuring The Management Board of NTT DATA Business Solutions AG had two members in the quality of corporate governance. Significant deviations from the principles of the fiscal 2023/2024: Norbert Rotter (CEO) and Jürgen Pürzer (CFO). There were no DCGK only arise in justified cases due to the size, structure, lack of capital market conflicts of interest within the Management Board in fiscal 2023/2024. orientation, or company-specific characteristics of NTT DATA Business Solutions AG. Together with the Management Board, the Supervisory Board ensures long-term As an NTT DATA Group company, NTT DATA Business Solutions AG also complies with succession planning. Typically, members of the Management Board are initially the corporate governance principles of the NTT DATA Group and the NTT Group. appointed for not more than three years. As a general rule, members are then subsequently appointed for not more than five years. As required by the German Corporate Governance Code, the members of the Super- visory Board possess the knowledge, skills and professional expertise required to properly perform their duties. The composition of the Supervisory Board takes into

Corporate Governance-Bericht 62 NTT DATA Business Solutions AG Annual Report 2023/2024 Transparency NTT DATA Business Solutions AG has been providing timely, comprehensive and detailed information for many years. The company’s website – https://nttdata-solutions.com – is the central communication instrument and is avail- able in various languages, reflecting the company’s international activities. NTT DATA Business Solutions AG uses press releases to provide information on current events. The annual report, together with key content from the consolidated financial state- ments, is published on the company’s website. The consolidated financial statements are also published in the Federal Gazette. Corporate governance reporting The Management Board and the Supervisory Board report annually on corporate governance at the company. This corporate governance report is included in the annual report. Since the 2022/2023 financial year, NTT DATA Business Solutions AG has voluntarily published an annual sustainability report. Since 2020, the Management Board and the Supervisory Board of NTT DATA Busi- ness Solutions AG have dispensed with a separate corporate governance statement in accordance with section 161 AktG, which is only a legal requirement for listed stock corporations. NTT DATA Business Solutions is guided by the recommendations and suggestions of the DCGK. In the view of the Management Board and Supervisory Board of NTT DATA Business Solutions AG, comprehensive reporting in the Corporate Governance Report now makes more sense than a formal Corporate Governance Declaration, as the form and content of this declaration are specifically tailored to listed companies.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 64 Profile of the NTT DATA Business Solutions Group Business activities Today, the Group comprises 77 subsidiaries worldwide. The largest subsidiaries are located in Germany, the USA, India, Brazil, Switzerland, the UK, Denmark, and Turkey. The head office and company headquarters of NTT DATA Business Solutions AG are located in Bielefeld, Germany. NTT DATA Business Solutions AG is a wholly owned NTT DATA Business Solutions AG was formed in 1989 as an SAP consulting company subsidiary of NTT DATA EUROPE GmbH & Co. KG. (itelligence AG). Today, it is a leading international full-service IT provider and partner of SAP SE. The company provides innovative managed cloud and application management ser- vices for more than 3,500 customers from seven global hubs, including offshore and NTT DATA Business Solutions AG’s main target group is customers in the traditional near-shore centers with local front-ends in over 30 countries. As one of the leading and upper mid-market with a strong international presence. Today, the company managed cloud service providers focusing on SAP, NTT DATA Business Solutions operates at over 90 locations in 33 countries, working on behalf of over 6,000 active operates state-of-the-art data centers in Germany, Poland, Malaysia, Denmark, and customers. The company is focused on the sale of rights of use to SAP software solu- the USA and works closely with the leading hyperscalers. This geographical and port- tions for the mid-market, SAP Managed Services consulting business, and solution folio positioning is rounded off by intensive cooperation with affiliates within the and product business. NTT Group and operations as a global strategic supplier for SAP and its consumers. Extensive industry and IT expertise are used to develop and preconfigure various Management system industry solutions for the more efficient implementation of SAP in Germany and abroad. Key sectors addressed by the Group include manufacturing and the automo- To manage its operating business, the Group uses selected financial and non-finan- tive supply industry, mechanical and plant engineering, steel and non-ferrous metal cial key figures that are consolidated into key performance indicators at Group level. companies, the wood and furniture industry, food processing, the chemistry and These are presented under II.5. pharmaceutical sector, the life science sector, the service industry, retail, and exper- tise in the area of educational institutions. NTT DATA Business Solutions is also driv- Annual and multi-year planning for all regions and divisions ing ahead digitalization and the industry-specific integration of mobile and analytical solutions. Organization All management and controlling processes at NTT DATA Business Solutions are based on an established planning process. Building on strategic multi-year planning, the Management Board manages the Group’s long-term focus and derives annual operating targets applying a top-down approach. The annual plans developed at NTT DATA Business Solutions AG is represented by subsidiaries with local sales and the level of the national subsidiaries are then coordinated with the overall targets. consulting teams in the following regions: DACH (Germany, Austria, Switzerland), Planning data is then compared against rolling forecasts to identify deviations each Western Europe (Spain, France, Belgium, Netherlands, UK, Ireland), Northern and quarter. In addition, target and actual figures are compared each month and reported Eastern Europe (Denmark, Norway, Sweden, Finland, Poland, Czech Republic, Slova- as a management tool so that deviations from the agreed targets are identified at kia, Hungary, Bulgaria, Turkey, UAE), the Americas (USA, Canada, Brazil), APAC (China, an early stage and corresponding measures for ensuring target achievement can Indonesia, Singapore, Malaysia, Thailand, Australia, India, Qatar), and Other. be initiated in good time.

NTT DATA Business Solutions AG Annual Report 2023/2024 Employees by segment March 31, 2024 47 Other 3,939 North and Eastern Europe 4,220 APAC 1,118 Western Europe 1,726 America 46 Other 3,380 North and Eastern Europe 3,827 APAC 891 Western Europe 1,340 America March 31, 2023 Group Management Report 66 Employee development 15,091 15,114 15,283 15,258 15,026 4,233 Germany/Austria/ Switzerland 13,581 13,716 13,926 14,261 14,134 13,672 13,840 13,530 13,193 15,283 Total 12,176 12,603 12,025 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 April 2023 May 2023 Jun 2023 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 4,046 Germany/Austria/ Switzerland 13,530 Total Matrix organization In fiscal 2022/2023, a program was launched with the objective of enhancing the global matrix organization and making the cooperation between the global and local units even more effective. This project was conducted with the active participation of the global teams, regions, and countries involved. It resulted in the establishment of two expanded global areas with their own leadership teams: Global Innovation & Industry Consulting (GIIC) and Global Business & Managed Services (GBMS). These leadership teams are now adapting decisions and defining them in greater detail in close cooperation with the core countries. With the Global Innovation & Industry Consulting business area (GIIC), NTT DATA Business Solutions has created a future-oriented, globally active unit. The primary goal of this organization is to develop existing customer relationships and build new ones with a global reach. It develops innovative business ideas, software assets, and products, rolls them out and coordinates them both globally and locally. It is also tasked with the further development of a powerful global consulting unit. In addition, a newly created business area is responsible for coordinating and driving

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 68 Brazil saw an economic upturn that was driven in particular by high world market Business development and economic position prices for food and infrastructure expansion funded by private investors, with GDP rising by 2.9%. The following table shows the changes in revenue in the segments and divisions compared with the corresponding prior-year figures and the Group’s earnings NTT DATA Business Solutions generated 3.5% (previous year: 3.3%) of its consoli- development in MEUR: dated revenue in Brazil in 2023/2024. The Japanese economy is highly important to NTT DATA Business Solutions as a member of the NTT DATA Group, even though it does not generate revenue directly in Japan. However, the company has customer relationships with Japanese corpora- tions both directly and through affiliates. The Japanese economy was impacted by a sharp decline in the value of the local currency, the yen, in 2023. Nevertheless, a growth rate of 1.9% was achieved. Against this backdrop, exchange rates were highly volatile. The US dollar/euro exchange rate fluctuated between 1.05 and 1.12 over the year, with the euro around 3.6% stronger at the end of 2023 than at the end of 2022. Sector development in fiscal 2023/2024 According to the Gartner study from January 2024, global IT spending increased by 3.3% in the 2023 calendar year. The sub-markets relevant to NTT DATA Business Solutions – software and IT services – expanded by 12.4% and 5.8%, thereby signifi- cantly outpacing the IT market as a whole. in MEUR Total revenues Revenue division Consulting Licenses Cloud Subscription Managed Services Other Revenue segment Germany/Austria/Switzerland (DACH) Western Europe North and Eastern Europe (NEE) America APAC Other EBIT EBIT margin EBITA EBITA margin EBITDA EBITDA margin IFRS net profit IFRS earnings per share in EUR/ Share of shareholders NTT DATA Business Solutions AG Apr 1, 2023 – Mar 31, 2024 Apr 1, 2022 – Mar 31, 2023 1,613.1 1,423.4 770.3 36.7 128.4 674.7 3.0 684.3 227.9 316.3 275.6 99.6 9.4 80.9 5.0% 103.4 6.4% 148.1 9.2% 38.7 0.97 651.6 50.3 90.0 626.1 5.4 621.8 192.5 255.3 251.4 95.0 7.4 85.3 6.0% 99.2 7.0% 142.6 10.0% 64.7 1.82

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 70 NTT DATA Business Solutions breaks down revenue by both regional segment and division. The corresponding changes are shown in the following diagrams: Revenue development by regional segment in MEUR Revenue development by division in MEUR 2023/2024 2023/2024 9.4 (+27.0%) Other 99.6 (+4.8%) APAC 275.6 (+9.6%) America 316.3 (+23.9%) North and Eastern Europe 227.9 (+18.4%) Western Europe 684.3 (+10.1%) Germany /Austria / Switzerland 1,613.1 +13.3% 2022/2023 2022/2023 621.8 Germany /Austria / Switzerland 1,423.4 7.4 Other 95.0 APAC 251.4 America 255.3 North and Eastern Europe 192.5 Western Europe 3.0 (-44.4%) Other 674.7 (+7.8%) Managed Services 36.7 (-27.0%) Licenses 128.4 (+42.7%) Cloud Subscription 5.4 Other 626.1 Managed Services 50.3 Licenses 90.0 Cloud Subscription 770.3 (+18.2%) Consulting 651.6 Consulting 1,613.1 +13.3% 1,423.4

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 72 The highest absolute increase in revenue in the DACH segment was achieved in In the Northern and Eastern Europe segment, Consulting business grew by Consulting, which grew by MEUR +48.8 (+17.9%) from MEUR 272.7 to MEUR 321.5. MEUR +27.0 (or +21.0%), from MEUR 128.5 in the previous year to MEUR 155.5 License revenue declined by -26.5% (MEUR -6.3) year-on-year, from MEUR 23.4 to (adjusted for currency effects: +32.4%). The figure for Managed Services was MEUR 17.2. Contrastingly, Cloud Subscription revenue rose sharply by MEUR 11.6 MEUR 122.0, an increase of MEUR +27.8 on the prior-year figure of MEUR 94.2. At (+54.3%), from MEUR 21.4 to MEUR 33.0. Of this figure, MEUR 9.3 (28.1%) is attributa- MEUR 6.5, License revenue was down MEUR -1.1 on the prior-year figure of MEUR ble to the new CCP & CC Flex business model. Managed Services revenue increased 7.6. Adjusted for currency effects, revenue would have been just MEUR -0.5 lower by MEUR +9.2, from MEUR 300.9 to MEUR 310.1. year-on-year. By contrast, Cloud Subscription business reported a strong increase of MEUR +8.8 or 37.3% to MEUR 32.3. Of this figure, MEUR 4.0 (12.4%) is attributable to Revenue in the Western Europe segment rose by +18.4% (adjusted for currency the new CCP & CC Flex business model. effects: 18.3%), from MEUR 192.5 to MEUR 227.9. Downturns in revenue in France (MEUR -0.4) and Benelux (MEUR -2.6) were more than offset by the substantial rises In the Americas segment, revenue climbed by +9.7% from MEUR 251.4 in the of MEUR +14.2 (+10.7%) in the UK and MEUR +0.7 (+9.5%) in Spain, as well as by the previous year to MEUR 275.6. Adjusted for currency effects, this represents an additional revenue (MEUR +23.5) of the British part of the new acquisition Sapphire. increase of +11.8%. Downturns in revenue in the MSCG Group (MEUR -10.0) and Consulting business in the Western Europe segment increased from MEUR 82.2 in (MEUR +8.7, including Conexos inorganic growth of MEUR +2.3) plus revenue of the previous year to MEUR 92.4. This corresponds to growth of MEUR +10.1 or MEUR +10.6 through the American part of the newly acquired Sapphire Group. Canada (MEUR -0.2) offset the revenue increases in the USA (MEUR +11.1) and Brazil +12.3% (adjusted for currency effects: +12.3%). Consulting business in the Americas segment rose sharply by MEUR +24.3 year-on- Licenses revenue fell by MEUR -2.7, from MEUR 6.6 to MEUR 3.9. Cloud Subscription year, from MEUR 117.4 to MEUR 141.6. This effect is attributable mainly to excellent business reported strong growth of MEUR +11.5 (or 54.7%), to MEUR 32.5 as a result revenue performance in Brazil and the USA, and to the effect of the newly acquired of the good performance in the UK, France, and Benelux. Of this figure, MEUR 3.5 Sapphire in the USA. In Managed Services business, revenue remained unchanged (10.7%) is attributable to CCP & CC Flex. Managed Services also achieved revenue at MEUR 105.0. Licenses revenue fell as expected by MEUR -4.3 to MEUR 5.0, while growth of MEUR +16.4, from MEUR 82.7 to MEUR 99.1. This increase related mainly the Cloud Subscription alternative product grew by MEUR +4.4 from MEUR 19.1 to to the UK and the new acquisition of Sapphire. MEUR 23.6. Of this figure, MEUR 9.9 (41.9%) is attributable to the new CCP & CC Flex business model. The slight reduction in License revenue and the sharp rise in Cloud The Northern and Eastern Europe segment generated revenue of MEUR 316.3 in Subscription business serve to illustrate the shift from traditional license sales to the past fiscal year, outperforming the previous year by MEUR +61.0 (or +23.9%). cloud subscriptions. Adjusted for currency effects, revenue increased by +34.2%. This highly positive development is essentially thanks to Turkey at MEUR +32.6, the United Arab Emirates Revenue also outperformed the prior-year’s level in the APAC segment, rising by at MEUR +5.1, and Poland at MEUR +4.2. Growth in Turkey resulted from organic MEUR +4.6 from MEUR 95.0 to MEUR 99.6. This corresponds to an increase in reve- growth and increased sales revenue, which in turn were impacted by the high infla- nue of +4.9% (adjusted for currency effects: +25.0%). tion rate.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 74 Net Assets, Financial Position, and Results of Operations Results of operations EBITA in the DACH segment (including headquarters) amounted to MEUR 0.9 in 2023/2024, while operating EBITA amounted to MEUR 13.8 (prior-year operating NTT DATA Business Solutions AG experienced moderate growth in earnings in fiscal EBITA: MEUR 23.4). This development was mainly due to significantly increased 2023/2024. EBITA amounted to MEUR 102.4 after MEUR 99.2 in the previous year, expenditure for services and the integration costs incurred at headquarters in con- an increase of +4.2%. The EBITA margin decreased to 6.4% in the year under review nection with the acquisition of Sapphire. after 7.0% in the previous year. However, on an adjusted basis EBITA was MEUR 118.8, meaning that an adjusted EBITA margin of 7.4% was achieved. The adjustments of EBITA in the Western Europe segment amounted to MEUR 26.2 in the past fiscal MEUR 15.4 are based on the parent company’s management fees, which are sub- year, while operating EBITA amounted to MEUR 28.6 (prior-year operating EBITA: stantially higher than in the previous year, and on significant acquisition and integra- MEUR 18.4). A weak fiscal year in Spain and the Benelux countries was offset by posi- tion costs for the acquisition of Sapphire. tive performance in the UK and France, as well as the additional earnings contribu- The global cost and efficiency program aimed at long-term profitability enhance- ment continued successfully in fiscal 2023/2024. While strategic investments of The Northern and Eastern Europe segment generated EBITA of MEUR 17.4, while MEUR 17.3 were made in the previous year, a total of MEUR 17.0 was invested in the operating EBITA amounted to MEUR 18.1 (prior-year operating EBITA: MEUR 22.1). year under review in coordination with the shareholders. Operating EBITA (EBITA Declining earnings in the Nordics and Bulgaria led to the negative deviation, which before non-recurring costs) rose by MEUR +3.9 year-on-year, from MEUR 116.5 to could not be fully offset by positive increases in earnings in Turkey and the Czech MEUR 120.4. Republic. tion from the British division of the newly acquired company Sapphire. EBIT amounted to MEUR 80.9 in the fiscal year, down MEUR -4.4 on the prior-year EBITA in the Americas segment amounted to MEUR 41.5, while operating EBITA figure of MEUR 85.3. The EBIT margin was 5.0% (previous year: 6.0%). However, the totaled MEUR 41.6 (prior-year operating EBITA: MEUR 38.0). A significant improve- adjusted EBIT was MEUR 96.3, meaning that an adjusted EBIT margin of 6%, at the ment in earnings in Brazil led to this positive development in the Americas. In same level as the previous year, was achieved. Canada and the USA, earnings remained at a consistently high level. The difference of -1.4 percentage points between the EBIT margin and the EBITA The APAC segment generated EBITA of MEUR 16.5 and operating EBITA of MEUR 17.2 margin is due to amortization of intangible assets amounting to MEUR 22.5 (previ- (prior-year EBITA: MEUR +16.7). A negative change in earnings in India was offset by ous year: MEUR 13.9). The sharp increase in amortization was mainly due to the significantly increased earnings in Australia and Thailand. acquisition of the Sapphire Group. In addition, capitalized customer relationships and orders on hand are amortized over periods that reflect the respective contrac- The Other segment made an EBITA contribution of MEUR 0.8, up MEUR 0.5 on the tual terms. prior-year figure of MEUR 0.3.

NTT DATA Business Solutions AG Annual Report 2023/2024 Net assets Group Management Report 76 At MEUR 823.3 in the year under review, non-current assets increased by 53.5% on the prior-year figure of MEUR 536.4. Non-current assets accounted for 57.2% of total Reflecting the Group’s growth, total consolidated assets rose by MEUR 391.2 or assets as of the end of the reporting period (previous year: 51.2%). The main items around 37.3% in the past fiscal year. ASSETS in MEUR Intangible assets Property, plant, and equipment Non-current receivables and other assets Non-current assets Current receivables and other assets Cash and cash equivalents Current assets Total assets EQUITY AND LIABILITIES in MEUR Equity (including non-controlling interests) Financial liabilities Provisions for pensions and other provisions Other non-current liabilities Non-current liabilities Trade payables Financial liabilities Other current liabilities and provisions Current liabilities Total equity and liabilities 1,439.2 1,048.0 Mar 31, 2024 Mar 31, 2023 Change 639.9 165.2 18.2 823.3 505.0 110.9 615.9 359.7 154.9 21.8 536.4 388.9 122.7 511.6 1,439.2 1,048.0 280.2 10.3 -3.6 286.9 116.1 -11.8 104.3 391.2 Mar 31, 2024 Mar 31, 2023 Change under non-current assets are goodwill amounting to MEUR 507.2 (previous year: MEUR 287.0) and property, plant, and equipment of MEUR 165.2 (previous year: MEUR 154.9). The acquisition of a 100% stake in the Sapphire Group in the UK increased goodwill by MEUR 214.1. Currency translation effects led to an increase in goodwill of MEUR 4.0. The remeasurement of goodwill in Turkey in accordance with IAS 29 resulted in an increase of MEUR 2.1. Current assets rose to MEUR 615.9 as of the end of the reporting period compared with MEUR 511.6 in the previous year. They thus accounted for 42.8% of total assets (previous year: 48.8%). The most significant increase related to other financial assets, particularly as a result of international cash pooling accounts with the NTT DATA Corporation. Trade receivables increased year-on-year from MEUR 229.4 to MEUR 280.7 as a result of higher growth in revenue. The average days sales outstanding (defined as the average number of days from the start of performance to receipt of payment from the customer) improved to 44 days (previous year: 46 days). Cash and cash equivalents declined to MEUR 110.9 after MEUR 122.7 in the previous year. 636.6 234.2 10.5 36.8 281.5 264.8 45.3 211.0 521.1 380.2 227.5 10.6 21.1 259.2 176.0 44.0 188.6 408.6 256.4 Assets held for sale amounted to MEUR 1.5 (previous year: MEUR 9.0). These are 6.7 -0.1 15.7 22.3 88.8 1.3 22.4 112.5 391.2 assets that can be sold in their current state and whose disposal is highly likely. A property in Singapore was reported as held for sale in the past fiscal year. The inten- tion is to sell the building, including the land, in the coming months. The prior-period figure included the property in the US. Further information on assets and liabilities held for sale can be found in note (29) of the notes to the consolidated financial statements. On the liabilities side of the consolidated statement of financial position, equity increased mainly as a result of capital increases of MEUR 224.1 and consolidated net profit of MEUR 38.7. The MEUR 4.5 increase in other equity was due to positive exchange rate effects of MEUR 5.4 and the effects of put and call options in conjunction with acquisitions in the amount of MEUR 1.1, which were partially offset by the effects of actuarial losses amounting to MEUR -0.6. The reported amount of non-con-

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 78 offset by repayments of financial liabilities of MEUR 11.1, payments for put and call The partnership with NTT DATA also ensures the Group’s financial flexibility. options of MEUR 11, MEUR 7.9 in dividend payments to non-controlling interests, and repayments of finance lease agreements in the amount of MEUR 26.5. Overall assessment of the economic position The interest rates for non-current financial liabilities range from 1-month Euribor at NTT DATA Business Solutions significantly outperformed its growth targets in fiscal +0.25% to 3-month Euribor at +2.25%. With regard to future growth finance, a 2023/2024. Having aimed for revenue of BEUR 1.475 to BEUR 1.50 (+4.0% to +6.0%), change in interest rates would affect the Group’s financial position and net interest it actually achieved growth of 13.3% to BEUR 1.613. Organic revenue increased by a income. Details on the nature, maturity, and interest rate structure of the liabilities strong 9.6%, while revenue growth of +3.7% was achieved through acquisitions. can be found in note (23) “Financial liabilities” in the notes to the consolidated finan- cial statements. Cash funds declined by MEUR 11.9 to MEUR 110.9 as of the end of the reporting The biggest increases in revenue were achieved in the Consulting, Cloud Subscrip- tion, and Managed Services segments and in our European core markets and the US. period (previous year: MEUR 122.7). Cash of MEUR 27.0 was held in the euro area The equity ratio rose significantly by 8.0 percentage points to 44.3% in the reporting and was not subject to exchange rate effects. Cash funds held outside the euro area year (previous year: 36.3%). While equity increased by MEUR 258.5, total assets rose were invested and recognized in the currencies of the appropriate countries. They by MEUR 393.4 to MEUR 1,441.3. Cash funds declined by MEUR 11.8 to MEUR 110.9. were translated at the closing rate as of the end of the year. The consolidated finan- Cashflow from operating activities fell by MEUR 17.8 to MEUR 82.5 in the year under cial statements will continue to be subject to currency translation effects in the review. The main driver compared with the previous year was the increase in work- future. The Group’s liquidity reserves were invested solely in short-term investments, ing capital as a result of significant revenue growth. meaning that NTT DATA Business Solutions’ net interest income is affected by inter- est rate fluctuations for such investments on the money and capital markets. Payments for investments increased significantly from MEUR 58.9 to MEUR 248.3, In order to increase financial flexibility, additional credit facilities of MEUR 27.0 were 189.4. This was mainly due to the acquisition of the Sapphire Group. The cashflow agreed in Germany. In the year under review, these were utilized for guarantees and from financing activities amounted to MEUR 156.4 in total (previous year: MEUR loans in the amount of MEUR 2.1. In addition to credit facilities in Germany, subsidi- -45.0). Here, too, the capital increase was mainly due to the acquisition of the Sap- with the result that the total cashflow from investing activities declined by MEUR aries also utilized credit facilities abroad. These credit facilities with a total volume of phire Group. MEUR 15.2 were agreed in the respective local currencies and were partially guaran- teed by NTT DATA Business Solutions AG. The utilization of these credit facilities by Subject to global authorization processes, having NTT DATA as a parent company subsidiaries amounted to MEUR 2.2 as of the end of the reporting period. means that loans, financing, and capital increases for major investment and acquisi- tion projects can be provided at all times. The Management Board rates NTT DATA The Management Board of NTT DATA Business Solutions AG expects the cash funds Business Solutions’ financial headroom as sufficiently stable to finance the planned of MEUR 110.9, in conjunction with financial reserves in the form of unutilized credit organic growth in Germany and abroad. The Management Board still regards the facilities, to be sufficient to cover its operating capital requirements and – together company’s economic position as good. with the expected cashflow from operating activities – the scheduled debt repay- ments and other planned short-term and medium-term investments.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 80 The quality of NTT DATA Business Solutions’ work is indicated by the number of SAP In 2023, the targets for the share of women on the Management Board and Supervi- awards received. sory Board of NTT DATA Business Solutions AG were set at 0% for the next five years. This corresponds to the status quo. The Supervisory Board based its decision on the A further non-financial performance indicator in this context is customer satisfac- fact that there are currently no female members of the Management Board or tion. This is measured by customer surveys following the completion of projects. Supervisory Board of NTT DATA Business Solutions AG and no changes are planned. Research and development In reaching its decision, the Supervisory Board also took account of the conditions specific to the industry in which NTT DATA Business Solutions AG operates. NTT DATA As NTT DATA Business Solutions AG does not perform any research and development Business Solutions AG is active mainly in IT consulting, an industry in which women in the narrower sense, it depends in particular on the many innovations in the area are substantially underrepresented. The Supervisory Board has opted not to set of industry solutions for more efficient implementation of SAP to maintain and higher targets in light of these industry-specific conditions, which the Supervisory expand its international competitiveness. Composition of the Management Board and Supervisory Board and assignment of other management roles (unaudited management report content) Board expects to continue to pose difficulties in terms of recruiting female employ- ees, and because no changes are currently planned in either of the executive bodies. The Supervisory Board also took account of the fact that women are substantially underrepresented among the candidates applying to NTT DATA Business Solutions AG due to industry-specific conditions. Nevertheless, NTT DATA Business Solutions AG hopes to increase the share of women on the Management Board and Supervi- Gender equality and diversity are issues of major importance to the NTT DATA Busi- sory Board in the future by enshrining gender equality and diversity within its ness Solutions Group. Staff diversity is promoted at all levels by a number of meas- strategy. ures and activities around the world. The Group takes part in various programs to support young women in the workplace and advocates work-life balance activities. In 2023, the target for the share of women at the first management level below the Companies of the NTT DATA Business Solutions Group in several countries have Management Board was set at 20% for the next five years. The first management earned external awards for being family-friendly. Tolerance, openness, and respect level below the Management Board of NTT DATA Business Solutions AG comprises are core corporate values, which is why the NTT DATA Business Solutions Group sup- the global leadership team. The Management Board based its decision on the fact that ports the LGBTQ+ community through campaigns and activities, among other there are currently no women in the first management level below the Management things. Board of NTT DATA Business Solutions AG and the company has been unsuccessful in increasing the share of women in the past due to the conditions specific to the In accordance with the German Act on Equal Participation of Women and Men industry in which it operates. As the number of female candidates remains compara- Regarding Leadership Positions within the Sectors of Private Economy and Public tively low due to these industry-specific conditions, increasing the share of women Service, the following targets for the composition of the Management Board and represents a challenge. NTT DATA Business Solutions AG plans to increase the share of Supervisory Board and for the assignment of other management roles are stated women at the first management level below the Management Board by emphasizing pursuant to sections 76(4) and 111(5) of the German Stock Corporation Act: gender equality and diversity within its strategy in the future.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 82 Report on Risks and Opportunities Report on risks and opportunities The risk inventory is reviewed once a year and updated where required. In addition, the company manages the significant risks determined by the NTT DATA Group. The NTT DATA Business Solutions Group (hereinafter NTT DATA Business Solutions) Opportunity management has implemented an internal control system (ICS) in the company to ensure the effectiveness and economic efficiency of business activities, in particular regarding Customer relationships and links with partners: NTT DATA Business Solutions is a the admissibility of financial reporting. NTT DATA Business Solutions AG’s internal long-term partner to its customers and assumes responsibility for the enhancement control system essentially consists of three pillars and is based on the three lines of of IT initiatives and IT challenges to provide added value for its customers. In close defense model, covering risk ownership (operational management), risk control cooperation with SAP, NTT DATA Business Solutions’ strategic partner, NTT DATA (Group-wide controlling, compliance system, and risk management), and risk assur- Business Solutions provides Consulting, Software (SAP, own software products, other ance (via internal audit). Financial reporting is based on IFRS. In its management of third-party software), Maintenance Services, and comprehensive Managed Services risk, the company identifies and assesses the main risks that could jeopardize the for its customers. SAP technology leadership and NTT DATA Business Solutions’ own achievement of its objectives. These include financial, operational, compliance-re- software products and industry solutions continue to form the basis for successful lated and reputational risks. Based on this assessment, appropriate controls and cooperation. Extensive project and service experience and process expertise in com- measures are implemented to monitor, manage, and minimize these risks. These mon business processes round off the success of the company. The innovative SAP controls can be both preventive and downstream in nature and include, for example, SE business model is opening up new opportunities, for example through the transi- authorization processes, inspections, and adjustments, as well as physical safe- tion to and increased focus on cloud subscriptions and the CCP & CC Flex business guards. Mechanisms have been put in place to ensure that relevant information is model. communicated internally and externally. This includes clear guidelines and proce- dures, training for employees, regular reporting to management and the Supervi- Digital transformation: Global demand for digital solutions and technology remains sory Board, and the exchange of information with external stakeholders. The effec- strong. As an IT group, the company is well positioned to support customers in their tiveness of the ICS is regularly monitored by management to make sure that the digital transformation. This gives NTT DATA Business Solutions a wide range of controls are working properly and potential weak points are identified and rectified. opportunities to further boost its sales and market share. This can be done by means of internal and external checks, management reviews, self-assessments, and feedback mechanisms. NTT DATA Business Solutions’ successful business model is based on a full-service provider approach with the above functions. Based on existing expertise, NTT DATA Through close coordination within the NTT DATA Group, the corporate internal audit Business Solutions is working to improve its customers’ value chains through innova- and reporting system continued and was expanded in 2023/2024. Due to the contin- tive solutions. Management particularly anticipates opportunities in new markets uously evolving external environment, particularly regarding legal and regulatory with corresponding growth potential. New technologies such as AI, IoT and block- requirements for the company, changes in the general perceived risk situation, chain, cloud computing, Industry 4.0 solutions, S/4HANA, and mobility also open up market conditions, and changes within the product portfolio, the opportunities, tar- huge sustainable growth opportunities for NTT DATA Business Solutions and offer gets, risks, and controls at the relevant business process levels are reviewed and great possibilities for differentiation. expanded to include new risks and controls, if necessary.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 84 Business environment risks Competition The pandemic The IT market is highly competitive – new rivals may appear at any time. To remain competitive, NTT DATA Business Solutions invests continuously in innovations and in The past fiscal year saw a continued operating risk due to the impact of the pan- its products and services so that it can adapt to changing market requirements. demic, in particular its effects on the economy, customers’ ability to pay, and changes in customer behavior. While the cost efficiency programs that were again imple- Industry risks mented in the past fiscal year made a demonstrable contribution to profitability, this Technical progress entails risks as well as opportunities. These risks affect NTT DATA may only be enough to partially offset future negative revenue development. As Business Solutions’ net assets and results of operations. The company focuses on previously, the industry-wide risk is estimated through the monthly management of the following risk areas: incoming orders and orders on hand. a) Customer-oriented market risks War in Ukraine Market influences on customers, such as economic cycles, liquidity shortages or The war in Ukraine continues to have a considerable impact on NTT DATA Business changes in customers’ investment habits, possible company concentration, and Solutions, particularly in terms of geopolitical uncertainties, disruption to supply so on. chains, and cybersecurity. The conflict in Ukraine has led to geopolitical tensions that may impact international and trade relations. NTT DATA Business Solutions has faced b) Supplier-oriented market risks political risks such as sanctions, trade restrictions, and political instability. These Supplier services requested by NTT DATA Business Solutions, in particular from have influenced its business activities to some extent, albeit not adversely affected external service providers, including service quality, etc. them. Another threat was reputational risk associated with maintaining business relations with countries or organizations involved in the conflict. Through structured c) Increased customer compliance requirements measures to determine and deal with restrictions, NTT DATA Business Solutions was Companies are required to use more and more resources to deal with these able to create a secure basis for the company’s continued market activity. increased customer compliance requirements. Conflicts and geopolitical tensions are often accompanied by an increase in cyberat- These developments are monitored through the monthly analysis of incoming tacks and cyber espionage. The company feared that it might increasingly become orders and orders on hand. Furthermore, a weekly cash cockpit and weekly meet- the target of hacker attacks and state-sponsored cyber operations. To counteract ings help to keep the risk of bad debts as low as possible. Despite intensive cus- this, the company stepped up its cybersecurity measures in order to protect net- tomer and supplier care, it cannot be fully ensured that all developments will be works, systems, and data from potential threats. identified at an early stage or that measures will be initiated in a timely manner. Further risks were market volatility and inflation developments. The company did its best to manage and minimize these risks.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 86 responsible employees – and regular security audits with subsequent recertification Financial risks are being and have been implemented in data center operations. The change in European data protection legislation will pose further challenges for processes and Liquidity risk technical measures in data center operations. These have been and will be adhered NTT DATA Business Solutions’ central Financial Management team monitors and to and implemented accordingly. controls global liquidity. The Management Board receives information on liquidity, including a cash forecast, on a weekly basis. These issues are addressed with the There is a commercial risk in the other service level agreements with customers in corporate departments concerned in monthly calls and the development of key connection with MCS and AMS. These are reduced to a minimum through profes- performance indicators is discussed. Analysis focuses mainly on the Group-wide sional product and service management, intensive offer approval processes and monitoring of cash funds, which enables measures to be initiated at short notice as state-of-the-art monitoring, quality assurance, and de-escalation processes. required. Weekly transparency with regard to receivables helps to ensure that pay- IT security ment reminders are issued in good time. A constant level of cash funds and credit facilities in Germany and abroad serves to increase security and independence. Increasing digitalization poses the risk of cyberattacks and data loss, as well as Changes in inflation are also observed. threats to confidentiality, data integrity, and data availability. A successful cyberat- tack could result in significant financial losses and damage customers’ trust in NTT Interest rate fluctuations on the money and capital markets affect NTT DATA DATA Business Solutions. NTT DATA Business Solutions therefore invests continu- Business Solutions’ net interest income to a limited extent only. ously in improving security measures. NTT DATA Business Solutions uses a risk man- agement system with a view to reducing the probability of occurrence of damage Price risk and the resulting losses. Despite the company’s internationalization, NTT DATA Business Solutions’ val- ue-added process is performed almost entirely in the same currency or on a euro Continuous monitoring of IT systems, particularly incoming emails, by means of basis. This means that while currency risk exists, its impact on earnings is limited. enhanced firewalls, virus protection, and controlled access to internal systems using OKTA authorization serves to lower the risk that exists here. Corresponding risk Goodwill is tested for impairment each year using the DCF method. The average cost targets are defined as part of the continuous revision of the risk analysis and the of capital is used to discount cashflows. Capital costs may change due to current assessment of the company’s specific IT systems. IT security procedures are then developments in interest rate levels. Significant changes arising from goodwill chosen for the respective business processes at NTT DATA Business Solutions on the impairment testing would have a substantial impact on earnings. basis of IT standards. Furthermore, substantial investments were made once again in improving IT security in the past fiscal year. Exchange rate risk Corresponding IT security standards are selected and implemented in conjunction the statement of financial position. Exchange rate fluctuations affecting intragroup with IT security management. Applying ISO/IEC 27001 and the IT-Grundschutz (IT receivables and liabilities and the resulting risk are monitored and documented con- baseline security) standards, accepted rules are used to attempt to reduce the tinuously. Exchange rate fluctuations also have a significant impact on the compa- complexity of socio-technical systems for IT security management and to achieve a ny’s revenue and cost situation. Their development is monitored on a monthly basis. NTT DATA Business Solutions monitors exchange rate risks on the basis of items in suitable level of information security.

NTT DATA Business Solutions AG Annual Report 2023/2024 Group Management Report 88 Risk Reporting in Connection with the Use of Financial Instruments For the current 2024 calendar year, the IMF is assuming growth in the global econ- omy of 3.2%. The risks relating to financial instruments are discussed in detail in notes (30) and This muted forecast is due to ongoing geopolitical conflicts and the high level of (34g) of the notes to the consolidated financial statements. inflation around the world. The IMF assumes that the forecast growth in the individ- Forecast Economic forecasts for fiscal 2024/2025 ual countries and regions will vary considerably. Growth of 0.8% is anticipated for the euro area. For Germany, the IMF is assuming only low growth of 0.2%. A growth rate of 0.7% is forecast for France and Italy, while Spain is expected to see growth of 1.9%. The growth forecast is 2.7% for the USA, 1.2% for Canada, and 1.7% for Brazil. The world economy was dominated by geopolitical conflicts and high global inflation in the 2023 calendar year, with the result that gross domestic product increased by The IMF is forecasting much stronger growth momentum for India (+6.8%). just +3.1% compared with 2022. Outlook for the software and IT services market Gartner expects spending on the global IT market to increase by 6.8% in the current calendar year. This is up significantly from the previous year, in which spending rose by just 3.3%. in USD million Data center systems Enterprise software Devices IT services Communication services Overall IT market Source: Gartner (March 2024) 2022 Spending 2022 Growth (%) 2023 Spending 2023 Growth (%) 2024 Spending 2024 Growth (%) 227 813 766 1,306 1,419 4,531 19.7 10.9 -6.3 7.5 -1.7 3.0 243 913 700 1,382 1,441 4,679 7.1 12.4 -8.7 5.8 1.5 3.3 261 1,029 732 1,501 1,473 4,996 7.5 12.7 4.6 8.7 2.3 6.8

NTT DATA Business Solutions AG Annual Report 2023/2024 Financial Statements 90 Consolidated Income Statement for the period from April 1, 2023 to March 31, 2024 and from April 1, 2022 to March 31, 2023 (IFRS) KEUR Revenues Cost of sales Gross profit Marketing and distribution expenses Administrative expenses Other operating income Other operating expenses Impairment of trade receivables Total operating expenses Operating earnings Investment income Measurement of derivatives and exercise of options Exchange rate differences from financing activities Financial income Finance costs Net finance costs Earnings before taxes Tax expenses Consolidated net profit of which attributable to the shareholders of NTT DATA Business Solutions AG of which attributable to non-controlling interests Earnings per share (EUR) Number of shares on the basis of which earnings per share were calculated: – basic/diluted Consolidated Statement of Comprehensive Income for the period from April 1, 2023 to March 31, 2024 and from April 1, 2022 to March 31, 2023 (IFRS) KEUR Consolidated net profit Actuarial losses IAS 19 1 Currency translation differences 2 Tax effects 3 Other comprehensive income Total comprehensive income of which attributable to the shareholders of NTTD Business Solutions AG of which attributable to non-controlling interests Apr 1, 2023 – Mar 31, 2024 Apr 1, 2022 – Mar 31, 2023 1,613,118 -1,261,794 351,324 -112,276 -150,061 14,399 -21,286 -1,211 -270,435 80,889 1,034 2,870 -47 5,572 -12,669 -3,240 77,649 -38,979 38,670 28,999 9,671 0.97 1,423,390 -1,107,634 315,756 -97,143 -128,242 6,526 -7,277 -4,319 -230,455 85,301 596 1,650 -213 4,574 -6,729 -122 85,179 -20,528 64,651 54,502 10,149 1.82 30,014,838 30,014,838 Apr 1, 2023 – Mar 31, 2024 Apr 1, 2022 – Mar 31, 2023 38,670 -711 5,330 97 4,716 43,386 33,741 9,645 64,651 1,606 -5,725 -219 -4,338 60,313 50,469 9,844 1 Item not to be reclassified to profit or loss. 2 Item that can be reclassified to profit or loss. 3 No reclassification to the income statement in the current fiscal year.

NTT DATA Business Solutions AG Annual Report 2023/2024 Financial Statements 92 Consolidated Cashflow Statement from April 1, 2023 to March 31, 2024 and from April 1, 2022 to March 31, 2023 (IFRS) KEUR Consolidated net profit Amortization of intangible assets and depreciation of property, plant, and equipment Impairment of intangible assets Impairment due to remeasurement of disposal group Other non-cash expenses and income Net finance costs Tax expenses Change in inventories Change in trade receivables Change in other non-current assets Change in other current assets Change in prepaid expenses Change in trade payables Change in provisions for pensions Change in other liabilities and provisions Interest received Interest paid Taxes paid Cashflows from operating activities Capital expenditure for intangible assets and property, plant, and equipment Cash received from the disposal of property, plant, and equipment and intangible assets Cash received from the sale of shares Subsequent purchase price payments for acquisitions Payments for acquisitions (less cash and cash equivalents acquired) Cashflows from investing activities Dividends paid to non-controlling interests Capital increase Cash received from restricted cash Payment for the acquisition of non-controlling interests Borrowing of financial liabilities Repayment of financial liabilities Cashflows from financing activities Increase in cash funds Effects from exchange rate differences Cash and cash equivalents as of January 1 Cash and cash equivalents as of December 31 Apr 1, 2023 – Mar 31, 2024 Apr 1, 2022 – Mar 31, 2023 38,670 67,178 0 0 -16,545 5,967 38,979 134,249 156 -54,644 -207 -3,425 4,930 19,753 -1,298 14,484 113,998 5,572 -8,193 -27,873 83,504 -24,606 2,089 6,635 0 -232,385 -248,267 -7,890 224,138 -16,532 -11,029 5,254 -37,573 156,368 -8,395 -2,502 122,741 111,844 64,650 57,310 3,336 3,080 6,133 122 20,528 155,159 272 -17,394 4,561 -7,152 751 -6,560 -1,560 -3,559 124,518 3,546 -5,103 -22,576 100,385 -32,416 614 0 -3,190 -23,922 -58,914 -7,501 21,268 -7,067 -19,006 14,432 -47,160 -45,034 -3,563 -2,582 128,886 122,741 Cash and cash equivalents are explained in note (17) of the notes.

Financial Statements 94 NTT DATA Business Solutions AG Annual Report 2023/2024 Audit Result The statutory auditor has issued the full consolidated financial state- ments and Group management report with an unqualified audit opinion. The full consolidated financial statements and Group management report have been submitted to the operator of the Bundesanzeiger (Federal Gazette).

We Transform. SAP® Solutions into Value the job done as smoothly as possible. Our close ties to SAP and other partners give you access to innovative We understand the business of our clients and know solutions and developments. Being part of the global what it takes to transform it into the future. At NTT NTT DATA group enables us to master any scope of DATA Business Solutions, we drive innovation – from project. advisory and implementation, to managed services and beyond, we continuously improve SAP solutions and With operations in more than 30 countries, we have technology to make them work for companies – and enabled thousands of companies become more for their people. efficient and effec -tive during the last three decades. Our more than 13,500 experts around the world will Aiming to transform, grow and become more success - also accompany you on your journey toward a truly ful? We provide you with more than in-depth expertise intelligent enterprise – wherever you want to start! for SAP solutions: As your passionate partner, we connect your business opportunities with the latest You want to know more? technologies – and offer you a unique approach to get Visit www.nttdata-solutions.com l s n o i t u o S s s e n s u B A T A D T T N 4 2 0 2 © i t h g i r y p o C