First Sensor AG

Earnings Release • Feb 28, 2022

Interim Report on Q1 2021/2022

FIRST SENSOR AG, BERLIN

TO OUR SHAREHOLDERS

Dear Shareholders and Business Partners,

Following the change in financial year, we are now already reporting on the first quarter of the new financial year, which runs from October 1, 2021 to September 30, 2022 and is therefore referred to as the 2022 financial year. As the structure of the Group has undergone substantial changessince the previous year, the figures for the comparative period have been restated pro forma in line with the current corporate structure in order to enhance comparability.

As anticipated, the Group's operational business performance was stable. In isolated cases, the reduced availability of materials due to the known supply chain problems had a slowing effect, as did delayed demand on the part of some customers owing to the state of the economy. While there was an increase in deliveries to industrial customers as against the previous year, this was not enough to amount to a true recovery following the pandemic. As in the last few quarters, requests from medical technology customers remained in decline. Nonetheless, sales in the product area of pressure sensor technology continued to rise. Profitability has been temporarily reduced by the changes in the Group's structure and higher costs of materials. As the financial year progresses, we are anticipating improvements thanks to efficiency enhancements that will allow us to achieve a steady state.

In addition to our operating activities, we have made further progress in the structural changes referred to above. In line with planning, First Sensor's site in Puchheim was closed as of the end of 2021 and production was relocated to Berlin-Weissensee and First Sensor Lewicki GmbH. The preparations for the relocation of production from the TE site in Dortmund to Berlin-Oberschöneweide are moving along and will be completed in the current calendar year. And finally, the switch to a new SAP system is scheduled to be completed in the third quarter of the financial year. This system will also allow us to cooperate even more closely with TE, for instance in sales.

We are plotting the course for First Sensor's ongoing future success. The order situation for the current financial year is encouraging and several interesting projects currently underway are a testament to the company's technological capabilities. We are passionate about developing outstanding solutions for customers. Time and again, we are thrilled to be able to demonstrate this to you.

We are delighted by your interest in the ongoing development of our company and by your constructive support. As usual, we will keep you informed about the next steps in our journey.

The Management Board

Sibylle Büttner Robin Maly Dirk Schäfer

SALES AND EARNINGS AT A GLANCE

The First Sensor Group generated sales of €29.1million in the first quarter of the 2022 financial year (October 1, 2021 to September 30, 2022) after €29.3million in the same period of the previous year. To improve comparability, a pro forma income statement reflecting the current consolidated group has been prepared as a basis for comparisons with the same period of the previous year. The stable business performance is encouraging, though momentum has not yet reached the level of a true recovery following the pandemic.

The result for the first quarter of 2022 was largely influenced by the increase in cost of materials and higher staff costs as a result of the change in the financial year. EBIT therefore amounted to just €-973 thousand in the first quarter of 2022 (previous year: €240 thousand). The EBIT margin was thus - 3.3% (previous year: 0.8%) and thereby slightly lower than the margin planned for the 2022 financial year at this time (between 5.0% and 7.0%).

DYNAMIC ORDER SITUATION

€ thousand	Q4 FY 2020	Q1 FY 2021	Q2 FY 2021	Q3 FY 2021	Q1 FY 2022	Δ absolute	in %
Incoming orders	26,352	33,802	33,775	27,693	34,300	6,607	23.9
Orders on hand	59,349	79,602	84,258	83,712	101,250	17,538	21.0
Book-to-bill	0.90	1.27	1.13	0.92	1.16	-	-

Incoming orders climbed by 23.9% quarter-on-quarter to €34.3million in the first quarter of the financial year (previous quarter: €27.7million). Here, too, the comparative figures for previous periods were adjusted pro forma in line with the previous periods. Orders on hand grew accordingly by €17.5million and even surpassed the €100million-mark at €101.3million. This translates into a rolling book-to-billratio of 1.16, signaling a promising development for the remainder of the financial year.

CONSOLIDATED INCOME STATEMENT (IFRS)

€ thousand	Oct. 1 to Dec. 31, 2020*	Oct. 1 to Dec. 31, 2021	Δ absolute	in %
Sales	29,287	29,124	-163	-0.6
Other operating income	636	506	-130	-20.4
Changes in inventories of finished goods and work in progress	-1,659	-388	1,271	-76.6
Other own work capitalized	258	51	-207	-80.3
Cost of materials/cost of purchased services	-11,583	-13,040	-1,457	12.6
Gross profit	16,939	16,254	-685	-4.0
Staff costs	-9,268	-10,678	-1,410	15.2
Other operating expenses	-5,164	-4,830	334	-6.5
EBITDA	2,507	746	-1,761	-70.2
Depreciation and amortization	-2,267	-1,719	547	-24.1
EBIT	240	-973	-1,214	-505.6
Financial result	-259	-237	22	-8.6
PROFIT BEFORE TAXES	-19	-1,210	-1,191	6252.9
Income taxes	294	0	-294	-99.9
PROFIT OR LOSS FOR THE PERIOD	275	-1,210	-1,485	-539.7

* Pro forma income statement for the same period of the previous year, adjusted to reflect current consolidated group

The First Sensor Group generated sales of €29.1million in the first quarter of the 2022 financial year (October 1, 2021 to September 30, 2022) after €29.3million in the same period of the previous year. To improve comparability, a pro forma income statement reflecting the current consolidated group has been prepared as a basis for comparisons with the same period of the previous year. Sales development was thereforein line with planning, which expected sales of between €105million and €115million for the year as a whole.

The cost of materials rose by 12.6% to €13.0million (previous year: €11.6million) as a result of both the product mix and price increases. The cost of materials ratio thus also rose to 44.8% after 39.6% in the same period of the previous year. Predominantly for this reason, the gross profit decreased by 4.0% to €16.3million (previous year: €16.9million).

Staff costs climbed by 15.2% to €10.7million (previous year: €9.3million). This was primarily caused by the change of financial year, as a result of which variable salary components for the past 2021 financial year were incurred in this reporting period for the first time. The staff costs ratio thus rose to 36.7% (previous year: 31.6%). By contrast, other operating expenses were down slightly, bringing operating EBITDA to €746 thousand (previous year: €2.5million).

Following depreciation and amortization in the last annual financial statements, the figure was reduced to €1.7million in the reporting period (previous year: €2.3million). This results in EBIT of €-973 thousand (previous year: €240 thousand). The EBIT margin was -3.3% (previous year: 0.8%) and thus slightly lower than the margin planned for the 2022 financial year at this time (between 5% and 7%).

A loss of €-1.2million is reported for the first three months of the financial year (previous year: profit of €275 thousand). This corresponds to earnings per share outstanding of €-0.12 (previous year: €0.03).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)

ASSETS
€ thousand	Sept. 30, 2021	Dec. 31, 2021	Δ absolute
Non-current assets	72,042	72,076	34
Inventories	30,199	30,863	664
Trade receivables	18,641	16,504	-2,136
Current assets	1,078	2,314	1,236
Cash and cash equivalents	67,401	64,138	-3,263
Total ASSETS	189,360	185,895	-3,465

Total assets declined by €3.5million as against September 30, 2021 to €185.9million. The main changes in assets were in trade receivables, which declined by €2.1million to €16.5million (previous year: €18.6million). Moreover, cash funds, which include cash and cash equivalents and receivables from shareholders (cash pooling), declined by €3.3million to €64.1million (previous year: €67.4million). By contrast, other current assets climbed by €1.2million to €2.3million (previous year: €1.1million).

EQUITY AND LIABILITIES
€ thousand	Sept. 30, 2021	Dec. 31, 2021	Δ absolute
Equity	121,954	122,416	462
Non-current financial liabilities	17,103	9,787	-7,316
Non-current liabilities	2,950	2,918	-32
Current financial liabilities	28,073	31,915	3,841
Trade payables	5,365	5,437	72

Current liabilities	13,915	13,422	-494
Total EQUITY AND LIABILITIES	189,360	185,895	-3,465

The slight reduction in total assets caused the equity ratio to rise from 64.4% to 65.9%. Within equity and liabilities, the main changes were in financial liabilities: non-current financial liabilities declined by €7.3million to €9.8million, while current financial liabilities were up by €3.8million at €31.9million. Besides scheduled repayments, the change in current and non-current financial liabilities is due to reclassifications within lease liabilities and the reclassification of a promissory note loan. Other current liabilities declined by €0.5million to €13.4million. This was firstly on account of the utilization of the restructuring provision already recognized for the closure of the Puchheim location and secondly an increase in deferred income. After the end of the first quarter of 2022, First Sensor has a positive net cash position of €22.4million, €0.2million more than at the end of the previous reporting period.

WORKING CAPITAL

€ thousand	Sept. 30, 2021	Dec. 31, 2021	Δ absolute	in %
Working Capital	43,205	41,077	-2,128	-4.9
Capital employed	115,247	113,153	-2,094	-1.8

Working capital was successfully reduced by €2.1million to €41.1million over the first quarter of 2022. In line with working capital, the capital employed was also reduced by €2.1million to €113.2million.

CASH FLOW

	Oct. 1 to Dec. 31. 2021
Operating cash flow	1,300
Cash flow from investing activities	-1,676
Cash flow from financing activities	-1,380
Free cash flow	-377

The cash flow from operating activities amounts to €1.3million after the first three months. A comparison with the corresponding prior-year period (fourth quarter of 2020) is not reasonably possible owing to the change in financial year. The cash flow from investing activities amounted to €1.7million and was therefore slightly below the planned level. The cash flow from financing activities was mainly defined by repayments and amounted to €1.4million. Owing to the low result in the reporting period, the free cash flow is negative after the first three months at €-377 thousand.

KEY FIGURES FOR FIRST SENSOR SHARES

	Sept. 30, 2021	Dec. 31, 2021	Δ absolute	Δ in %
Share capital (€)	51,511,980	51,511,980	0	0.0
Number of shares (weighted, diluted)	10,292,729	10,302,396	9,667	0.1
Number of shares (basic)	10,302,054	10,312,418	10,363	0.1

FINANCIAL CALENDAR

March 15, 2022	Annual General Meeting 2022, virtual
May 31, 2022	Publication of interim report (half-year report) as of March 31, 2022
August 31, 2022	Publication of quarterly statement on Q3 2022

First Sensor AG

Peter-Behrens-Strasse 15 12459 Berlin Germany Tel +49 (0) 30 639923 – 760 Fax +49 (0) 30 639923 – 719 e-mail: ir@first-sensor.com Website www.first-sensor.com/de/investor-relations

First Sensor AG has prepared this quarterly statement in accordance with the International Financial Reporting Standards (IFRS). However, this report was not prepared in line with IAS 34, Interim Financial Reporting, and has been neither audited nor reviewed by an auditor. The amounts presentedmay differ from the exact mathematic amounts as a result of rounding effects. The quarterly statement contains forward-looking statements. The actual results may differ significantly from the expectations for future development.