SSH Germany - German Branch of SSH Operations Ltd.

SSH Germany - German Branch of SSH Operations Ltd.

Wiesbaden

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

SSH Operations Oy

Helsinki/Finnland

Table of contents

1. FINANCIAL STATEMENTS

1.1. INCOME STATEMENT

1.2. BALANCE SHEET

1.3. NOTES TO THE FINANCIAL STATEMENTS

2. SIGNATURES FOR THE FINANCIAL STATEMENTS

THE LIST OF ACCOUNTING RECORDS, TYPES OF DOCUMENTS AND THE METHODS OF STORAGE

1. FINANCIAL STATEMENTS

1.1. INCOME STATEMENT

1.2. BALANCE SHEET

1.3. NOTES TO THE FINANCIAL STATEMENTS

SSH Operations Ltd is part of the SSH-group. SSH provides security solutions for networked companies. SSH Communications Security -solutions enable and support the business of thousands of customers across a variety of industries in the private and public sectors. The consolidated financial statements are available on the company's website www.ssh.com.

SSH Operations Ltd has a branch office SSH Operations Ltd Germany in Germany.

SSH Operations provides its customers with access to software and maintenance and support services.

Accounting principles

The financial statements are prepared in accordance with PMA Chapters 1 and 2-3 of the Small Business Act. The financial statements are presented in euros. Balance sheet items are recognized at original acquisition cost. Information on financial risk management is presented in the consolidated financial statements.

Revenue recognition

SH Operations Ltd's net sales consist mainly of software product sales, license and maintenance fees and marketing service fees. Revenue is adjusted with sales discounts, sales taxes and exchange rate differences.

Revenue is recognized as income when the customer delivery has taken place, a contract has been signed with the customer or a written order from the customer has been received and it has been possible to prove that the customer is solvent. Maintenance contracts are amortized across the agreement period.

Apportioning of costs to functions

SSH Operations Ltd sells and is responsible for regional marketing activities. Since the costs are allocated to the operations in accordance with the principle of inducement, almost all costs of SSH Operations Ltd are sales and marketing costs.

Trade receivables

Trade receivables are recognized in the balance sheet at nominal value less estimated uncertain receivables and the account is valued at the closing rate of the financial year.

Income taxes

The tax expense in the income statement consists of the tax based on the taxable income for the period. The tax is calculated on the taxable income based on the tax rate in force in each country. The tax is adjusted with any taxes related to previous periods.

Pensions

Pension arrangements in SSH Operations Ltd comply with local regulations and practices in different countries. The company's pension security is managed by external pension insurance companies. Pension contributions are expensed for the financial period during which the contributions were made in accordance with the local legislation of each country.

Notes to the income statement

Remuneration and fees for the management, €

The members of the Board of Directors of SSH Operations Ltd are employed by the parent company. In accordance with the principles followed within the group, these positions of trust are not remunerated separately. As a result, no remuneration or fees have been paid to the Board of Directors.

Subordinated loans received

The company has a subordinated loan of EUR 300.000,00.

Main terms of loan:

The loan has been granted on 28 February 2006. The annual interest for the loan is three percent (3 %).

EUR 9.000 in interest on the subordinated loan has been recognised as an expense in 2023. In 2019-2022, EUR 9.000 in interest on the subordinated loan was recognised as an expense annually. In 2018, interest on the subordinated loan for 2017 and 2018, totalling EUR 18.000, was recorded.

Share capital

The number of shares of the company on 31 December 2023 was 100 shares, the nominal value of one share being EUR 80,00.

Dividend proposal

The Board of Directors proposes that no dividend shall be distributed, and that profit of EUR 22.693,51 shall be entered to the shareholders equity in retained earnings (-loss).

Events after the balance sheet date

The company has no significant events from the period after the end of the financial year.

3. SIGNATURES FOR THE FINANCIAL STATEMENTS

AUDITOR'S NOTE

Our auditor's report has been issued today

The list of accounting records, types of documents and the methods of storage:

uo AUDITOR'S REPORT (Translation of the Finnish original)

To the Annual General Meeting of SSH Operations Ltd

Opinion

We have audited the financial statements of SSH Operations Ltd (business identity code 1654590-2) for the year ended 31 December, 2023. The financial statements comprise the balance sheet, income statement and notes.

In our opinion, the financial statements give a true and fair view of the company's financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors for the Financial Statements

The Board of Directors is responsible for the preparation of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the company's ability to continue as going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the company or cease operations, or there is no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.