First Sensor AG

Interim / Quarterly Report • Aug 14, 2019

Key figures at a glance

in € million unless otherwise indicated	H1 2015	H1 2016	H1 2017	H1 2018	H1 2019
					IFRS / Adjusted
Sales revenues	67.2	75.9	68.9	74.4	81.3
Industrial	37.8	35.2	36.1	37.3	43.5
Medical	10.9	16.3	12.8	16.3	18.6
Mobility	18.7	24.4	20.0	20.7	19.2
EBITDA	7.6	10.1	7.8	8.4	7.7 / 12.1
EBITDA margin (%)	11.0	13.2	11.3	11.3	9.5 / 14.8
EBIT	2.9	5.5	3.4	4.1	2.3 / 6.8
EBIT margin (%)	4.3	7.2	4.9	5.5	2.9 / 8.3
Earnings before taxes	1.8	4.2	2.1	2.3	0.8 / 5.2
Net profit for the period	0.17	0.38	0.19	0.22	0.08 / 0.52
Cash flow from operating activities	-7.1	3.6	1.8	-1.9	6.8
Free cash flow	-9.8	1.5	-3.2	-5.8	1.5
Balance sheet total	149.6	152.9	153.1	156.9	173.8
Shareholders' equity	74.3	75.2	79.4	82.8	87.8
Equity ratio (%)	49.7	49.2	51.8	52.8	50.5
Net debt	40.3	32.1	28.0	30.5	30.4
Working capital	42.1	39.4	38.8	43.4	38.4
Incoming orders	78.2	80.2	79.5	83.7	77.9
Orders on hand	98.7	101.2	90.7	102.1	94.2
Book-to-bill-ratio	1.16	1.06	1.15	1.13	0.96
Employees (FTE average of the period)	764	785	782	818	873
Number of shares in thousand	10,152	10,171	10,211	10,216	10,228

First Sensor AG prepares its interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). However, this report was not prepared in accordance with IAS 34 "Interim Financial Reporting" and has been neither audited nor subjected to any other formal audit examination. In addition to the key figures according to IFRS, key figures adjusted for transaction costs and provisions in connection with the planned combination with TE Connectivity Sensors Germany Holding AG are shown for the presentation of earnings. In the presentation, rounding differences to the mathematically exact values may occur. This report contains statements of a predictive nature. All future-oriented specifications in this consolidated financial report were produced on the basis of a probability-based plan and represent statements regarding the future which cannot be guaranteed.

Contents

FIRST SENSOR

INTERIM REPORT AT JUNE 30, 2019

Economic Report _______________10
General Economic and Sector Conditions_______________ 10
Financial Position, Net Assets and Results of Operations ___________ 12
Overall Statement_________________17
Supplementary Report________________ 18
Forecast, Opportunity and Risk Report___________ 19
Forecast Report___________________19
Opportunity and Risk Report _________________ 21

Consolidated Balance Sheet_______________ 23
Consolidated Statement of Comprehensive Income __________25
Consolidated Statement of Changes in Equity __________ 27
Consolidated Statement of Cash Flow ___________28

Development of the First Sensor Group __________30
Effects of the First-Time Application of IFRS 16_________ 31
Notes to the Statement of Changes in Equity___________33
Related Party Transactions ___________33
Supplementary Report________________33

TO OUR SHAREHOLDERS

CONSOLIDATED INTERIM REPORT (IFRS)

C O N S O L I D AT E D H A L F -Y E A R FINANCIAL STATEMENTS

N OTE S

Foreword by the Executive Board __________________________________________________________________________________ 5

First Sensor Share _________________________________________________________________________________________________ 7

Dr. Dirk Rothweiler, CEO (right) and Dr. Mathias Gollwitzer, CFO (left)

FOREWORD BY THE EXECUTIVE BOARD

Foreword by the Executive Board

Dear shareholders and business partners,

In the current fiscal year, the First Sensor Group has increased its sales by 9.3% to €81.3 million compared to the first half of 2018. Consequently, we are within the range that we expect for the year as a whole. This pleasing development is mainly based on the first quarter of the current year, as in the second quarter of 2019 we were unable to match the growth of the first quarter with revenues at the previous year's level.

Some customers with high sales contributions in the previous year still seem to have sufficient products in stock, meaning that further orders now reach us with a delay. Other customers have deferred projects scheduled to start in 2019 for the time being. This development is also reflected in incoming orders. It is too early to say with any degree of certainty whether these are harbingers of economic effects or simply temporary fluctuations in our customers' ordering behavior, as we have already seen them in previous years. Overall, though, we are observing a noticeable deterioration in the economic climate and effects on our customers, with the result that we expect sales for the year as a whole to be in the lower range of our guidance of €160 million to €170 million.

Despite sales-related lower economies of scale in the second quarter 2019, our operating profitability was sound in the first half-year. Adjusted for the special effects from accruals in connection with the planned combination with TE Connectivity Sensors Germany Holding AG, the EBIT margin reached 8.3% after six months and is thus almost within the target corridor for the full year. This shows that the measures taken are bearing fruit and that First Sensor is on the right track to align growth with reasonable profitability. However, due to transaction costs and provisions in connection with the planned merger with TE Connectivity Sensors Germany Holding AG, an EBIT of only €2.3 million remains at mid-year, which corresponds to an EBIT margin of 2.9%. Without these special effects, which we will also see

in the second half of the year, we continue to expect an EBIT margin of between 8.5 and 9.5 percent for 2019 as a whole. However, we expect this, in conjunction with the sales development, to be only in the lower range of our corridor.

In the medium to long term, we will continue to benefit from the megatrends in our sales markets, a well-filled product pipeline, and the rigorous implementation of our strategy for profitable growth. Sensor technology was and is a future technology with potential that we are tapping into in a targeted manner. The planned combination with TE Connectivity Sensors Germany Holding AG will give us extra momentum as we travel down this path. With its size and expertise, TE will give First Sensor the opportunity to apply our expertise in pressure and photonics to a wide range of products. At the same time, TE's global presence makes it possible to advance the internationalization of First Sensor's solution and standard business in Asia and North America and gain new key customers even more quickly. The Executive Board and Supervisory Board therefore see TE as an extremely suitable strategic investor and partner that will support and advance our strategy and the associated objectives.

Your Executive Board

Dr. Dirk Rothweiler Dr. Mathias Gollwitzer

CEO CFO

Takeover bid boosts share price performance

During the first six months of fiscal year 2019, the First Sensor share failed to benefit fully from the unexpectedly positive stock market environment. Although the economic and geopolitical situations tended to deteriorate rather than improve, the indices continued to rise seemingly undeterred in the first half of the year. Having started the year at €21.30, the First Sensor share initially fell to its low for the year of €18.00 on February 13. After publication of the annual figures for 2018 at the end of March, it returned to where it started at the beginning of the year. Factors including the announcement of a dividend of €0.20 per share caused the share price to rise to €24.64 by the time of the Annual General Meeting on May 3, before dipping by around €2 as a result of windfall effects. Then, with the good figures for the first quarter of 2019, a renewed recovery set in and the price of the First Sensor share closed the gap with the benchmark indices. The confirmation at the end of May that talks were being held with the Swiss group TE Connectivity regarding a majority acquisition of First Sensor and publication of initial key data on the transaction by TE around a week later eventually saw the share price leap to more than €28, resulting in a better first half-year performance than that of the DAX and TecDAX indices (+17% each).

Since the announcement of the takeover bid on July 8, 2019, the share price has stabilized close to the offer price, as expected. TE is offering €28.25 per First Sensor share. This equates to a premium of 14.6% compared with the XETRA closing price on May 24, 2019, the last trading day before confirmation by First Sensor regarding the negotiations with TE, and a premium of 31.7% compared with the volume-weighted 3-month average share price before this date. The acceptance period for the offer ends in September, and the offer itself is not subject to a minimum acceptance threshold. At the time of writing this report, anchor shareholders of First Sensor AG have already irrevocably pledged around 67% of all shares to TE and transferred most of these.

Share price performance in the first half of 2019

January 2019	February 2019	March 2019	April 2019	May 2019	June 2019

First Sensor Share

	Dec. 31, 2018	June 30, 2019	Δ absolute	Δ in %
Share capital (€)	51,112	51,142	30	0.06
Number of shares (weighted, diluted)	10,222,396	10,228,396	6,000	0.06
Number of shares (basic)	10,355,012	10,339,487	-15,525	-0.15
Earnings per share (€, diluted)	0.72	0.08	-0.64	-88.89
Earnings per share (€, basic)	0.71	0.08	-0.63	-88.73
Year-end price (€), XETRA closing price	21.3	28.1	6.75	31.69
Highest price (€)	31.8	28.1	-3.75	-11.79
Lowest price (€)	14.0	28.0	13.95	99.64

Key figures Shareholder structure according to available voting rights notifications

Status: June 30, 2019

5.65%

Gerlin NV (Teslin Capital Management BV) FS Technology Holding S.à.r.l. (Deutsche Private Equity) Other Shareholder Midlin NV (Teslin Capital Management BV)

Economic Report

General Economic and Sector Conditions

Developments in the economy as a whole

According to experts at various institutions, indications are accumulating in the second quarter of 2019 that the pace of growth of the global economy is tailing off. In line with these assessments, the International Monetary Fund has revised its global growth forecast for 2019 to 3.2%, having previously set its prediction for 2019 at 3.3% in April and 3.6% at the end of last year. In particular, growth is being curbed by trade disputes such as the one between the USA and China. Economic growth in China recently fell to its lowest level in the last 27 years.

In view of growing international tensions, there are also tough times ahead for Europe's economy. Despite a surprisingly positive start to 2019, economists at the European Commission have revised their economic outlook for the euro zone downwards again. In their summer forecast, they envisage GDP growth of just 1.2%. In Germany, the EU's biggest economy, Brussels expects an increase of 0.5% for 2019.

According to the German Federal Statistical Office, a recent decline in domestic and foreign demand has been observed. Reasons are the weaker global economy and trade conflicts as well as risks such as Brexit. Experts agree that conditions for industry have deteriorated noticeably. They expect that companies will struggle to avoid reducing their production considerably too, unless new orders recover soon.

Development of the sensor market

According to the industry association AMA, the market for sensor technology failed to build on the previous year's growth in the first half of 2019. After 6-7% in the first half of 2018, incoming orders were up by only 2-3% in the same period of 2019, while sales actually fell by 1% (previous year: +13%). This is mainly due to the weak start to the year in the industry and automotive sectors. The trade conflicts and the resultant uncertainty, particularly in the export-oriented sectors, had a negative impact here, including at supplier level.

Industrial

A decrease in incoming orders has recently dampened the outlook in several branches of industry. Demand from abroad, especially from outside the euro zone, was hit particularly hard. Recently, there have been fewer orders than originally expected, particularly in the mechanical engineering and capital goods sectors, both of which are important to Germany. In the middle of the year, the VDMA again reduced its forecast for 2019, which already envisaged growth of just 1% at the end of 2018: Based on declining incoming orders and production volumes associated with a cyclical slowdown, the association now expects a decrease of 2% instead of growth for the current year for the German mechanical and systems engineering sectors. A recent survey by the Ifo-Institute recently showed that 8.5% of industrial companies surveyed expect short-time working in the next three months.

Economic Report

Medical

Demographic change and rising prosperity, including in emerging countries, are prompting continuous growth in demand for medical technology. The most recent publications by various companies in this sector also suggest that this demand is largely independent of economic fluctuations. They confirm that growth remains moderate in most markets worldwide.

Mobility

The German Association of the Automotive Industry has issued a mixed summary of the first six months of 2019. The number of new registrations rose by 1%, and incoming orders from within Germany increased by 4%. However, orders from abroad were down 6%. In this export-oriented industry, this had serious consequences for production. The number of cars produced in the first half-year fell by 12%, with the decrease in June hitting as much as 24%. In addition to the diesel scandal, the trade conflict between the USA and China also had a negative impact, as numerous German manufacturers produce at American locations and export from there. The declines in growth in the global automotive industry, especially in China, therefore prompted several companies in this sector to revise their annual forecasts half-way through the year.

Sales development

In the second quarter of 2019, sales in the First Sensor Group reached exactly the same level as the prior-year quarter at €39.9 million. For the first half-year, this results in sales of €81.3 million (previous year: €74.4 million), equivalent to an increase of 9.3%. Consequently, the pace of growth tailed off slightly compared with the first quarter, chiefly due to cyclical increases in inventories and delays in projects by some customers. In the first half of 2019, around two thirds of sales were generated from customer-specific solutions, while standard products accounted for one third. This means that both business units maintained a stable share of total sales. The two divisions continue to make an equal contribution to growth.

The Industrial target market posted strong growth, with sales rising by 16.6% in the first half-year to €43.6 million (previous year: €37.3 million); the second quarter accounted for €21.4 million of this. Demand from Asian customers for optical sensors was a particular factor here.

in € thousand	6M 2018	6M 2019	Δ absolute	Δ in %	in € thousand	Q1 2018	Q2 2018	Q3 2018	Q4 2018	Q1 2019	Q2 2019
Industrial	37,340	43,544	6,204	16.6	Industrial	16,319	20,740	20,694	22,634	22,183	21,362
Medical	16,325	18,585	2,260	13.8	Medical	7,357	8,968	9,519	8,715	9,760	8,825
Mobility	20,694	19,146	-1,548	-7.5	Mobility	10,818	10,158	10,548	8,679	9,454	9,692
Toatl	74,359	81,275	6,916	9.3	Total	34,494	39,865	40,761	40,027	41,397	39,879

Optical sensors were also a key contributor to year-on-year growth in the Medical target market. After six months, an increase of €2.3 million or 13.8% to €18.6 million was posted (previous year: €16.3 million). €8.8 million (previous year: €9.0 million) of this was generated in the second quarter. At €9.7 million (previous year: €10.2 million), the sales level in the Mobility target market in the second quarter was up slightly on the first quarter. Even so, at €19.1 million, half-year sales were down 7.5% on the previous year (€21.0 million). In view of the geopolitical environment and structural challenges, customers in the automotive industry showed more restraint in calling up delivery volumes from framework agreements.

Financial Position, Net Assets, and Results of Operations

In the first six months of the current fiscal year, the regional breakdown of sales shows stable development for the DACH region (Germany, Austria, Switzerland, Liechtenstein) and the rest of Europe compared with the previous year. The strong growth in Asia to €11.4 million (previous year: €7.9 million) stems from increased demand from China for sensor technology for photonic and pressure applications in the Industrial and Mobility target markets. Growth in North America to €9.9 million (previous year: €7.5 million) is attributable to a rise in sales for imaging solutions in the Industrial and Medical target markets.

in € thousand	6M 2018	6M 2019	Δ absolute	Δ in %
DACH*	39,176	39,687	511	1.3
Rest of Europe	19,305	19,632	327	1.7
North America	7,502	9,895	2,393	31.9
Asia	7,933	11,423	3,490	44.0
Others	443	638	195	44.0
Total	74,359	81,275	6,916	9.3

*Germany, Austria, Switzerland, Liechtenstein

Order situation

In the second quarter of 2019, incoming orders totaled €35.6 million (previous year: €44.3 million). Consequently, the total for the first half year was €77.9 million as against €83.7 million in the previous year. This €5.8 million or 6.9% decrease is also reflected in the order backlog, which stood at €94.2 million after the first six months. This equates to a decrease of €7.7 million or 7.7% compared to a year ago (€102.0 million). Well over half of this order backlog should contribute to sales this fiscal year.

Overall, the figures for incoming orders and order backlog reflect the inventories that customers still hold as well as customer restraint in view of the economic situation. At 0.96, the book-to-bill ratio is lower than usual. It remains to be seen whether projects recently delayed by customers will contribute to a recovery in the order backlog in the second half of the year or whether the next two quarters will also be influenced by the deteriorating economic climate.

in € thousand	6M 2018	6M 2019	Δ absolute	Δ in %
Incoming orders	83,683	77,906	-5,777	-6.9
Orders on hand	102,086	94,180	-7,906	-7.7
Book-to-bill-ratio	1.13	0.96	-0.17	-15.0

Earnings*

In the first half of 2019, sales of the First Sensor Group amounted to €81.3 million as against €74.4 million in the previous year. This is an increase of 9.3%. The second quarter contributed €39.9 million, on a par with the high level of the previous year. Inventories were increased by €1.4 million year-on-year (previous year: €-0.8 million), partly in order to ensure contractually agreed upon safety stocks and partly due to fluctuating call-ups in annual framework agreements. Overall, as a result of increased R&D activities, services of €1.8 million were capitalized, meaning that total operating performance for the first half of 2019 amounted to €85.2 million (previous year: €75.4 million). This equates to growth of 13.0%.

In the first half-year, the cost of materials rose slightly disproportionately by 11.5% to €39.8 million (previous year: €35.7 million) in connection with the increase in inventories. The cost of materials ratio therefore stood at 49.0% after the first six months. For the second quarter, the cost of materials amounted to €19.3 million (previous year: €18.2 million), which equates to a cost of materials ratio of 48.3% and shows that the instigated measures to reduce inventories are starting to take effect.

Personnel expenses rose in line with the successful filling of vacancies. After the first half of 2019, operating expenses rose to €26.2 million (previous year: €23.7 million), equivalent to a ratio of 32.2% (previous year: 31.4%). In the second quarter of 2019, they amounted to an operating €13.2 million (previous year: €11.9 million), equivalent to a ratio of 33.1% (previous year: 30.0%).

Compared with the first half of last year, other operating expenses fell to €8.0 million (previous year: €8.5 million), as a result of the first-time application of IFRS 16. €4.0 million are attributable to the second quarter (previous year: €4.9 million). The operating decline was slightly slowed by maintenance costs, which rose as a result of recent investments.

The operating result EBITDA improved by €3.7 million to €12.1 million (previous year: €8.4 million) in the first half of the year compared with the same period of the previous year. The second quarter accounts for €5.7 million (previous year: €5.2 million). The operating margin thus improved to 14.8% in the first half of 2019 (previous year: 11.3%).

Depreciation increased to €4.3 million in the first half of 2019 (previous year: €3.3 million). This increase is also attributable to the first-time application of IFRS 16 and the recent investment initiatives. After €1.1 million of scheduled goodwill write-downs, EBIT totals €6.8 million after the first six months (previous year: €4.0 million). This equates to an EBIT margin of 8.3% (previous year: 5.5%) and profitability only slightly below the target corridor for the year as a whole. At €2.6 million and an operating EBIT margin of 6.5%, operating EBIT in the second quarter remained below the previous year's figure of €3.0 million and 7.5%, respectively, primarily due to the higher cost of materials. The EBIT margin of 9.9% in the first quarter shows that First Sensor has the potential to significantly improve profitability.

After the first six months of 2019, the financial result amounted to €-835 thousand, roughly on a par with the previous year (€-880 thousand). Currency gains and losses were a lesser factor. Operating earnings before taxes reached €5.5 million (previous year: €3.2 million) in the first half-year, an increase of 74.5%. The second quarter contributed €1.6 million (previous year: €2.6 million).

Consequently, the Group's operating profit for the period amounted to €5.2 million at mid-year 2019 (previous year: €2.3 million). This results in operating earnings per share in circulation of €0.52 (previous year: €0.22).

Detached from the course of operating business, extraordinary expenses in connection with the planned combination with TE Connectivity Sensors Germany Holding AG burdened the operating result in the first half of the year. Transaction costs and accruals resulted in additional personnel expenses of €2.9 million and additional other operating expenses of €1.5 million in the reporting period. With these special effects, EBITDA fell to €7.7 million (previous year: €8.4 million). This corresponds to an EBITDA margin of 9.5% (previous year: 11.3%). Accordingly, this results in an EBIT of €2.3 million (previous year: €4.1 million) with an EBIT margin of 2.9% (previous year: 5.5%). The result for the period after special effects amounted to €764 thousand as of June 30, 2019 (previous year: €2.3 million). This results in earnings per share in circulation of €0.08 (previous year: €0.22).

^* The following results are presented in accordance with IFRS and additionally adjusted for transaction costs and accruals in connection with the planned combination with TE Connectivity Sensors Germany Holding AG. Adjusted key figures are shown by the addition "operating".

Economic Report

Financial position

As at the reporting date of June 30, 2019, the equity of the First Sensor Group was almost unchanged at €87.8 million (December 31, 2018: €88.8 million). In this period, the equity ratio declined slightly from 52.8% to 50.5% due to the first-time application of IFRS 16 and the resultant increase in financial liabilities.

In the context of the 2013 share option plan, 6,000 new shares were issued in the first six months of the year under review.

In non-current liabilities, non-current financial liabilities increased by €2.5 million to €46.6 million compared with the beginning of the year (December 31, 2018: €44.1 million). This increase and the €5.5 million rise in current financial liabilities to €9.4 million (December 31, 2018: €3.9 million) are primarily attributable to the first-time application of IFRS 16 and reclassifications from non-current to current. Trade payables went in the opposite direction. They fell to €9.5 million in conjunction with a normalized purchasing volume (December 31, 2018: €12.6 million).

The increase in liabilities due to IFRS 16 also resulted in higher net debt. It rose to €30.4 million (December 31, 2018: €19.5 million) in line with expectations. The ratio of net debt to equity (gearing) amounted to 34.7 as at the balance sheet date (December 31, 2018: 21.9). The €3.0 million decrease in cash and cash equivalents from €28.5 million to €25.5 million also stems from the dividend payment of just under €2.0 million in May 2019. Further information can be found in the cash flow statement section.

in € thousand	Dec. 31, 2018	June 30, 2019	Δ absolute	Δ in %
Non-current financial liabilities	44,111	46,579	2,468	5.3
Current financial liabilities	3,891	9,402	5,511	58.6
Cash and cash equivalents	-28,534	-25,531	-3,003	-11.8
Net debt	19,468	30,450	10,982	56.4

It can also be assumed for the future that First Sensor will be in a position to finance operating business and planned growth from the resources at its disposal. Utilization of the capital market is not planned. First Sensor does not use off-balance sheet financing instruments.

Investments

The Group recorded additions to intangible assets of €11.5 million (previous year: €1.1 million) in the first half of 2019. The increase of this resulted mostly from the first-time application of IFRS 16, as the rights of use from leases must be reported as an asset here (€9.7 million). In addition, investments in internally generated intangible assets amounting to €1.5 million were made in the first half of the year (previous year: €0.6 million). On the balance sheet date, €3.5 million was invested in technical equipment and machinery (previous year: €3.0 million). Investment activity in tangible fixed assets will increase in the further course of the year and reach a level of around €8.0 million for the year as a whole.

In connection with the first-time application of IFRS 16, amortization of intangible assets rose by €0.9 million to €2.7 million in the first six months (previous year: €1.7 million). This includes straight-line depreciation and amortization of a purchase price allocation in the Group at €1.1 million. At €2.7 million, depreciation of property, plant, and equipment remained roughly on a par with the previous year (€2.6 million).

in € thousand	H1 2018	H1 2019	Δ absolute	Δ in %
Investments in intangible assets	-1,076	-11,511	-10,435	90.7
of which from IFRS 16 rental and leasing relationships (non-cash)	0	-9,723	-9,723	100
Investments in property, plant, and equipment	-2,969	-3,516	-547	15.6
Cash investments	-4,045	-5,304	-1,259	23.7
Disposal of non-current assets and investments	2	44	42	95.5
Investment grants	46	0	-46	-
Other effects	125	-30	-155	516.7
Cash flow from investment activities	-3,872	-5,290	-1,418	26.8
Amortization of intangible assets	-1,738	-2,675	-937	35.0
of which from IFRS 16 rental and leasing relationships	0	-845	-845	100
Depreciation of property, plant and equipment	-2,640	-2,734	-94	3.4
Depreciation and amortization	-4,378	-5,409	-1,031	19.1

INTERIM REPORT AT JUNE 30, 2019

Economic Report

Liquidity

After operating cash flow remained negative in the first half of 2018 at €-1.9 million due to special effects, it reached €6.8 million in the first half of 2019. Along with the operating result, key factors here were the increased depreciation and amortization resulting from the first-time application of IFRS 16, and the slight increase in working capital.

Cash flow from real investing activities show a €1.4 million increase to €-5.3 million for the first six months of 2019 (previous year: €-3.9 million).

Cash flow from financing activities normalized at €-4.5 million (previous year: €-2.4 million), reflecting the dividend payment and the use as well as regular repayment of loans. There was only a small volume of equity injections through the exercising of share options.

Free cash flow as the sum of operating cash flow and cash flow from investing activities was positive in the reporting period at €1.5 million (previous year: €-5.8 million).

Net assets

in € thousand	H1 2018	H1 2019	Δ absolute	Δ in %	168.4	173.8
Cash flow from operating activities	-1,940	6,790	8,730	-450.0		25.5
Cash flow from investment activities	-3,872	-5,290	-1,418	36.6	28.5 3.9	4.8 10.2
Cash flow from financing activities	-2,385	-4,517	-2,132	89.4	17.9
Change in cash and cash equivalents	-8,197	-3,017	5,180	-63.2	32.2	37.8
Exchange differences	55	14	-41	-74.4
Cash and cash equivalents at the beginning of the financial year	25,505	28,534	3,029	11.9
Cash and cash equivalents at the end of the period under review	17,363	25,531	8,168	47.0	85.9	95.5
Free cash flow	-5,812	1,500	7,312	126.0

In the first half of 2019, the balance sheet increased by €5.4 million (3.1%) to €173.8 million (December 31, 2018: €168.4 million), mainly due to the first-time application of IFRS 16. Non-current assets totaled €95.5 million at the end of the first half of 2019 (December 31, 2018: €85.9 million). At €4.8 million, the current assets are higher than on the balance sheet date (€3.9 million) due to the security retention amount from factoring and as a result of prepayments. Due to contractually agreed safety stocks and delayed order call-offs, inventories rose by 17.5% or €5.6 million to €37.8 million (December 31, 2018: €32.2 million). By contrast, trade receivables decreased by €7.7 million to €10.2 million (December 31, 2018: €17.9 million) as a result of rigorous receivables management and the use of factoring. Likewise, cash and cash equivalents were down €3.0 million or 11.8% at €25.5 million (December 31, 2018: €28.5 million). This was also because of the dividend payment of almost €2.0 million. Working capital, i.e. the ratio of inventories plus trade receivables less advance payments and trade payables, amounted to €38.4 million as at the middle of 2019 (December 31, 2018: €37.3 million). Likewise, capital employed increased from €123.1 million to €133.9 million.

Assets in € million Equity and liabilities in € million

Dec. 31, 2018 June 30, 2019 Cash and cash equivalents Other current assets Trade account receivables

Overall Statement

After an extremely dynamic opening quarter of 2019, business development slowed somewhat in the second quarter. Even so, the first half-year was largely in line with the Executive Board's expectations overall, with sales growth of 9.3% to €81.3 million. Given the deteriorating economic environment, there is an expectation that some companies may increase their inventories or postpone products in the second half of the year as well. Therefore, the company expects that the guidance for 2019 as a whole of €160 million to €170 million in sales and an operating EBIT margin of 8.5% to 9.5% will be achieved in the lower range. In addition, the Executive Board expects additional special expenses and accruals in connection with the planned combination with TE Connectivity Sensors Germany Holding AG in the further course of the year, which cannot yet be quantified. The effects from the first-time application of IFRS 16, on the other hand, should not have a significant impact on earnings.

Supplementary report

The company is not aware of other key events following the end of the fiscal year that will affect the net assets, financial position and results of operations.

Supplementary Report

Forecast Report

General economic and sector conditions

Half-way through the year, the European economy is feeling the effects of international trade conflicts and the uncertainty surrounding Brexit. In addition, there are growing signs that China may also be losing its role as an engine of the global economy, as investments in infrastructure are slowly petering out and priorities are shifting as a result of the trade dispute with the USA. For instance, the government intends to focus on the domestic market and develop high-tech itself. Furthermore, even the German automotive and mechanical engineering industries are showing initial signs of weakness, although the thriving construction industry and ongoing growth in consumption can make up for this. While the finance ministers of the G7 nations expressed confidence in their closing declaration that the global economy will stabilize and return to moderate growth by as soon as 2020, risks still persist. Consequently, the question of whether the global economy merely faces a slight wobble or an economic downturn is setting in remains unanswered.

Development of the sensor market

The sensor technology and measuring technology sector has also felt the ripples of German industry's weak start to the current fiscal year. In its recent sector survey, the industry association AMA pointed out that a deterioration of the order situation in the mechanical engineering and automotive industries is hav-

Industrial

ing a delayed effect on sensor and measuring technology. By the AMA's own account, the vast majority of its members supply the mechanical engineering industry, and 30% supply the automobile industry. The order situation has also deteriorated at international level. For instance, the consultancy firm Gartner expects semiconductor sales to contract by 9.6% to USD 429 billion this year. Three months ago, Gartner predicted a decrease in sales of just 3.4%. suggest that the number of people over 60 will rise from 760 million to 2 billion between 2010 and 2050. This would double their share of the global population to around 25%. At the same time, increasing prosperity in a growing number of emerging countries is accelerating the rise in per-capita spending in the healthcare sector. Overall, therefore, this market is less susceptible to economic fluctuations, meaning that First Sensor's prospects in this growth market remain positive.

Medical

The high-tech industry association Spectaris expects the medical technology market to grow by 5% per year up to 2022, driven by demographic change. Estimates by the United Nations

In its latest assessment, the VDMA assumes that the global mechanical engineering industry will grow by a further 2% in 2019. However, the Industrial target market at First Sensor has a highly diverse range of customers, so it is not easy to make a clear statement on further development. Many of the addressed industries have only a small degree of cyclicity. On account of this broad customer base, First Sensor's growth in the first half-year was relatively stable in this target market. With the application areas relating to Industry 4.0, the company is in a good position to benefit from the growing demand for high-precision pressure sensors and optical technologies. The automotive industry remains under pressure, and recently posted falling registration figures. Despite this slowdown of the automotive economy, general conditions for First Sensor products are highly promising in the medium and long term, as the number of sensors installed per vehicle continues to rise. In addition, demand for new green drive systems is opening up a further area of application for First Sensor pressure sensors. Furthermore, commercial and special-purpose vehicles are becoming an increasingly important sales market for First Sensor's camera business.

Mobility

Forecast, Opportunity and Risk Report

Forecast, Opportunity and Risk Report

Forecast for business development in 2019

Sales

With sales growth of 9.3% to €81.3 million, the First Sensor Group performed positively in the first half of 2019, as expected. This is further confirmation of the success of the strategy for profitable growth. However, after an extremely strong start to the year, business development lost momentum in the second quarter. In some cases, for instance with customers in the automotive sector, there are initial signs of a cyclical downturn. If the curbing effects for the economy such as trade disputes, including the one between the USA and China, or the uncertainty surrounding Brexit, were to be resolved in the second half of the year, this would obviously benefit economic development overall and First Sensor. Overall, however, a noticeable deterioration in the economic climate and effects on our customers can be observed, with the result that the Executive Board expects sales for the year as a whole to be in the lower range of the guidance of €160 million to €170 million.

Earnings

Financial position and net assets

With the strong opening quarter, First Sensor demonstrated its potential to achieve a higher EBIT margin than originally forecasted for the current fiscal year. Based on revenue expectations at the lower end of the guidance range, the Executive Board expects the operating EBIT margin for 2019 as a whole to be at the lower end of the target range of 8.5% to 9.5%. In addition, further special expenses and accruals in connection with the planned combination with TE Connectivity Sensors Germany Holding AG, which cannot yet be quantified, are expected in the remaining course of the year. On the other hand, effects of the firsttime application of IFRS 16 are not expected to significantly affect earnings. around €10 million. Measures to improve working capital are not likely to have any notable effects yet due to the deteriorating economic environment in the second half of the year. As per depreciation and amortization, investments are likely to remain at the level of the first half of the year. For the second half of the year, we expect the operating cash flow to remain positive. Overall statement Due to shifts in customer ordering behavior and an economic environment that is showing initial signs of deterioration not

The impacts of the first-time application of IFRS 16 on the balance sheet will also affect the annual financial statements. For instance, intangible assets and financial liabilities will rise by only for the automotive industry the Executive Board expects to achieve the lower range sales and earnings targets in fiscal 2019. In the medium and long term, prospects for the company's development remain positive. In addition, the planned combination with TE will further support First Sensor's growth targets.

Forecast, Opportunity and Risk Report

Report on Risks and Opportunities

In connection with the reporting on risks and opportunities, please also refer to the information published in the Annual Report 2018.

First Sensor notes the current trade conflicts and geopolitical tensions, e.g. between the USA and Iran, with growing concern, as they are increasingly impacting on the global economy. Initial signs of this decreased economic momentum can be seen in customers' order behavior. Therefore, the company has raised its rating of macroeconomic risks to "high", but still does not expect this development to have any major impacts on business performance this year. However, First Sensor will continue to monitor the existing trade-related and geopolitical uncertainty closely and make adjustments as much as possible in order to cushion the impacts of the increasing economic slowdown.

With regard to operating risks, the shortages of some electronic components at suppliers have been largely resolved.

There were no further significant changes in the other matters described in the Annual Report 2018 in the first six months of fiscal year 2019.

Consolidated Balance Sheet_______________________________________________________________________________________ 23 Consolidated Statement of Comprehensive Income _______________________________________________________________ 25 Consolidated Statement of Changes in Equity_____________________________________________________________________ 27 Consolidated Statement of Cash Flow_____________________________________________________________________________ 28

Consolidated Balance Sheet (IFRS)

in € thousand	Dec, 31, 2018	June 30, 2019	Δ absolute	Δ in %
Intangible assets	11,249	18,893	7,644	68.0
Internally-generated intangible assets	6,121	7,327	1,206	19.7
Goodwill	29,816	29,816	0	0.0
Property, plant and equipment	38,696	39,479	783	2.0
Total non-current assets	85,882	95,514	9,632	11.2
Inventories	32,194	37,830	5,636	17.5
Trade accounts receivables	17,885	10,193	-7,692	-43.0
Tax refund claims	1,122	549	-573	-51.0
Other current assets	2,767	4,213	1,446	52.3
Cash and cash equivalents	28,534	25,531	-3,003	-10.5
Total current assets	82,502	78,317	-4,185	-5.1
Total ASSET	168,384	173,831	5,447	3.2

ASSETS

in € thousand	Dec. 31, 2018	June 30, 2019	Δ absolute	Δ in %
Share capital	51,112	51,142	30	0.1
Capital reserves	17,234	17,539	305	1.8
Revenue reserves	1,004	1,002	-2	-0.2
Currency translation	19	-22	-41	-213.6
Revaluation reserves	-29	-36	-7	24.0
Retained earnings	18,125	16,741	-1,384	-7.6
Minority interest	1,302	1,405	103	7.9
Total equity	88,767	87,772	-995	-1.1
Non-current post-employment benefit obligation	272	272	0	0.1
Other non-current provisions	0	0	0	-
Long-term loans, excluding current portion	44,111	46,579	2,468	5.6
Other non-current liabilities	3,512	3,665	153	4.4
Deferred tax liabilities	3,453	3,174	-279	-8.1
Total non-current liabilities	51,348	53,690	2,342	4.6
Income tax provisions and liabilities	2,469	2,231	-238	-9.6
Other current provisions	1,092	924	-168	-15.4
Short-term loans and current portion of long-term loans	3,891	9,402	5,511	141.6
Payments received on account of orders	266	153	-113	-42.4
Trade accounts payables	12,558	9,463	-3,095	-24.6
Other current liabilities	7,993	10,196	2,203	27.6
Total current liabilities	28,269	32,369	4,100	14.5
Total EQUITY AND LIABILITIES	168,384	173,831	5,447	3.2

EQUITY AND LIABILITIES

01. TO OUR SHAREHOLDERS 02. CONSOLIDATED INTERIM REPORT 04. NOTES 03. CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

Consolidated Balance Sheet

Consolidated Statement of Comprehensive Income (IFRS)

in € thousand	January 1 - June 30, 2018	January 1 - June 30, 2019	Δ absolute	Δ in %
Sales revenues	74,359	81,275	6,916	9.3
Other operating income	914	922	8	0.9
Changes in inventories in finished goods and work-in-progress	383	2,127	1,744	455.3
Other own work capitalized	677	1,801	1,124	166.0
Cost of material and purchased services	-35,700	-39,819	-4,119	11.5
Personnel expenses	-23,677	-29,112	-5,435	23.0
Other operating expenses	-8,523	-9,461	-938	11.0
Profit from operations (EBITDA)	8,433	7,733	-700	-8.3
Depreciation of property, plant and equipment and amortization of intangible assets	-4,378	-5,410	-1,032	23.6
Earnings before interest and tax (EBIT)	4,055	2,323	-1,732	-42.7
Interest income	13	28	15	118.5
Interest expenses	-821	-867	-46	5.6
Currency gains	454	226	-228	-50.3
Currency losses	-526	-222	304	-57.8
Income before tax and minority interest	3,175	1,488	-1,687	-53.1
Income tax expenses	-859	-723	136	-15.8
Net profit / loss for the period	2,316	764	-1,552	-67.0
Net profit / loss for the period attributable to First Sensor AG shareholders	2,258	868	-1,390	-61.6
Net profit / loss for the period attributable to minority interest	58	-104	-162	-278.5
Earnings per share in € (basic=diluted)	0,22	0	0	-61.6

CONSOLIDATED INCOME STATEMENT

in € thousand	January 1 - June 30, 2018	January 1 - June 30, 2019	Δ absolute	Δ in %
Net profit / loss for the period	2.316	764	-1.552	-67.0
Actuarial gains and losses on defined benefit plans	0	0	0	-
Taxes on other comprehensive income	0	0	0	-
Items not subsequently reclassified to the income statement	0	0	0	-
Changes from currency translation	135	0	-135	-100.0
Revaluation of derivative financial instruments	-15	0	15	-100.0
Taxes on other comprehensive income	5	0	-5	-100.0
Items that can be subsequently reclassified to the income statement	125	0	-125	-100.0
Total comprehensive income	2.441	764	-1.677	-68.7
Thereof attributable to First Sensor AG shareholders	2.260	868	-1.401	-61.8
Thereof attributable to minority interest	181	-104	-286	-156.9

OTHER COMPREHENSIVE INCOME

01. TO OUR SHAREHOLDERS 02. CONSOLIDATED INTERIM REPORT 04. NOTES 03. CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

Other Comprehensive income

Consolidated Statement of Changes in Equity (IFRS)

in € thousand	Number of shares in thousand	Capital stock	Capital reserves	Revenue reserves	Currency translation	Revaluation reserves	Retained earnings	Minority interest	Total equity
As at January 01, 2018	10,216	51,082	16,863	1,004	-552	-38	12,363	1,177	81,899
Net profit/loss for the period	0	0	0	0	0	0	2,259	58	2,316
Other comprehensive income	0	0	0	0	135	11	0	0	146
Total comprehensive income	0	0	0	0	135	11	2,259	58	2,462
Share-based remuneration	0	0	88	0	0	0	0	0	88
Capital increase	0	0	0	0	0	0	0	0	0
Appropriation of earnings	0	0	0	2,427	0	0	-4,062	0	-1,634
As at June 30, 2018	10,216	51,082	16,951	3,431	-417	-27	10,560	1,235	82,815

	Number of shares in	Capital stock	Capital reserves	Revenue reserves	Currency translation	Revaluation reserves	Retained earnings	Minority interest	Total equity
in € thousand	thousand
As at January 01, 2019	10,222	51,112	17,234	1,004	19	-29	18,125	1,302	88,767
Net profit/loss for the period	0	0	0	0	0	00	868	-104	764
Other comprehensive income	0	0	0	0	-41	-7	0	0	-48
Total comprehensive income	0	0	0	0	-41	-7	868	-104	717
Share-based remuneration	0	0	245	0	0	0	0	0	245
Capital increase	6	30	60	0	0	0	0	0	90
Appropriation of earnings	0	0	0	-2	0	0	-2,252	0	-2,254
As at June 30, 2019	10,228	51,142	17,539	1,002	-22	-36	16,741	1,405	87,772

01. TO OUR SHAREHOLDERS 02. CONSOLIDATED INTERIM REPORT 04. NOTES 03. CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flow (IFRS)

in € thousand	January 1 - June 30, 2018	January 1 - June 30, 2019	Δ absolute	Δ in %
Income before tax and minority interest	3,175	1,488	-1,687	-53.1
Interest paid	808	801	-7	-0.8
Depreciation of property, plant and equipment and amortization of intangible assets	4,378	5,410	1,032	23.6
Income from investment grants and allowances	-46	0	46	-100.0
Income/loss from the disposal of fixed assets	-2	-2	0	23.8
Other non-cash expenses and income	88	245	157	178.8
Changes in provisions	-84	-167	-83	99.1
Changes in working capital	-6,269	-1,040	5,229	-83.4
Changes in other assets and liabilities	-1,886	1,295	3,181	-168.7
Income tax paid	-2102	-1,240	862	-41.0
Cash flow from operating activities	-1,940	6,790	8,730	-450.0
Payments for investments in property, plant and equipment and intangible assets	-3,933	-5,321	-1,388	35.3
Proceeds from disposal of property, plant and equipment, intangible assets and investments	2	3	1	38.0
Cash received from investment grants	46	0	-46	-100.0
Interest received	13	28	15	118.5
Cash flow from investment activities	-3,872	-5,290	-1,418	36.6
Proceeds from shareholders	-1,577	-1,955	-378	23.9
Repayments from financial liabilities	-1,305	-3,728	-2,423	185.7
Proceeds from loans	868	2,772	1,904	219.4
Intrests and charges paid	-371	-830	-459	123.7
Payments from financial leasing	0	-777	-777	-
Cash flow from financing activities	-2,385	-4,517	-2,132	289.4
Net change in cash and cash equivalents	-8,197	-3,017	5,180	-63.2
Currency differences from converting funds	55	14	-41	-74.4
Cash funds at the beginning of the financial year	25,505	28,534	3,029	11.9
Cash funds at the end of the financial year	17,363	25,531	8,168	47.0

01. TO OUR SHAREHOLDERS 02. CONSOLIDATED INTERIM REPORT 04. NOTES 03. CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

Consolidated Statement of Cash Flow

-------------30
------------ 31
------------- 33
------------- 33
------------- 33

Development of the First Sensor Group _______________30
Effects of the First-Time Application of IFRS 16 _____________	3 1
Notes to the Statement of Changes in Equity__________	33
Related Party Transactions________________	33
Supplementary Report ______________	33

This First Sensor AG Interim Report as of June 30, 2019, was prepared according to the International Financial Reporting Standards (IFRS) as applicable in the EU, observing the interpretations of the International Financial Reporting Interpretations Committee (IFRIC).

The Interim Report as of June 30, 2019, complied with the requirements of IAS 34. These are condensed financial statements that do not contain all the disclosures of IFRS consolidated financial statements, so these financial statements must be read in conjunction with the notes to the 2018 consolidated financial statements.

Notes to the Consolidated Financial Statements

Development of the First Sensor Group

The First Sensor Group consists of the parent company First Sensor AG, based in Berlin, and 10 subsidiaries in which First Sensor AG holds majority interests. There were no changes in the consolidated group in the period from January 1 to June 30, 2019. Non-current assets and investments in non-current assets relate almost exclusively to Germany, and to only a small degree to North America.

Non-current assets in € thousand	June 30, 2018	June 30, 2019	Δ absolute	Δ in %	Employees (FTE)	June 30, 2018	June 30, 2019	Δ absolute	Δ in %
Germany	85,236	91,856	6,620	7.8	Germany	771	834	63	8.2
Rest of Europe	78	2,715	2,637	3,380.6	Rest of Europe	34	34	0	0.0
North America	567	943	376	66.3	North America	25	23	-2	-8.0
Total	85,881	95,513	9,632	11.2	Total	830	894	64	7.7

	June 30,	June 30,
Investments in € thousand	2018	2019	Δ absolute	Δ in %
Germany	3,999	3,843	-156	-3.9
Rest of Europe	-15	7,278	7,293	-48,618.4
North America	61	429	368	603.1
Total	4,045	11,550	7,505	185.5

Development of the First Sensor Group

First Sensor applies IFRS 16 as of January 1, 2019. It was applied for the first time according to the modified retrospective approach as of June 30, 2019.

In line with the selected transition method, the comparative information for fiscal year 2018 was not adjusted in fiscal year 2019 in accordance with IFRS 16.C7. Comparability is therefore restricted.

For lessees, the new standard does away with the previous classification of leases as operating and finance leases.

Instead, IFRS 16 uses a standardized measurement model that obliges lessees to recognize assets for rights of use under all leases and lease liabilities for all lease payments.

The recognition of right-of-use assets from former operating leases at the date of first-time application resulted in an increase in non-current assets. Right-of-use assets of €9.7 million were recognized.

The corresponding lease liabilities were recognized on the liabilities side.

In the current consolidated income statement, expenses previously recognized as lease expenses (€1.0 million) were replaced by depreciation (€0.8 million) and interest expenses (€0.2 million). This improved EBITDA by €1.0 million and EBIT by €0.1 million. The effect on total comprehensive income of the first-time application of IFRS 16 reduced the half-year result by €0.07 million.

In the statement of cash flows, the changed recognition of repayments for finance leases in cash flow from financing activities improved the cash flow from operating activities by €1.0 million. The associated interest payments of €0.2 million are likewise included in cash flow from financing activities.

Effects of the First-Time Application of IFRS 16

Effects of the First-Time Application of IFRS 16

Intangible Assets

Orders on hand	licenses and simila	Goodwill
			intangible assets	brand	payments	Dec. 31, 2018
1,452	12,219	39,112	7,519	24,075	2,631	87,008
0	-3	0	0	0	0	-3
0	148	0	1,642	0	207	1,997
0	-1	0	-189	0	0	-190
0	2,066	0	0	0	-2,059	7
0	1	0	21	0	0	22
1,452	14,430	39,112	8,993	24,075	779	88,841
1,452	9,826	9,296	2,412	15,115	0	38,101
0	918	0	460	2,177	0	3,555
0	-1	0	0	0	0	-1
0	0	0	0	0	0	0
0	1	0	0	0	0	1
1,452	10,744	9,296	2,872	17,292	0	41,656
0	2,393	29,816	5,107	8,960	2,631	48,907
						47,185
	0	3,686	29,816	6,121	6,783	779

Intangible Assets

		Concessions,		Internally generated	Customer base/	Advance
in € thousand	Orders on hand	licenses and simila	Goodwill	intangible assets	brand	payments	June 30, 2019
Cost of purchase
January 01, 2019	1,452	14,430	39,112	8,993	24,075	779	88,841
Changes of consolidation scope	0	0	0	1	0	0	1
Additions	0	9,873	0	1,455	0	183	11,511
Disposals	0	0	0	0	0	0	0
Reclassifications	0	420	0	0	0	-420	0
Exchange differences	0	-1	0	15	0	0	14
30. Juni 2019	1,452	24,721	39,112	10,464	24,075	542	100,367
Cumulative depreciation
January 01, 2019	1,452	10,744	9,296	2,872	17,292	0	41,656
Additions	0	1,300	0	264	1,100	11	2,675
Disposals	0	0	0	0	0	0	0
Reclassifications	0	0	0	0	0	0	0
Exchange differences	0	0	0	0	0	0	0
June 30, 2019	1,452	12,044	9,296	3,136	18,392	11	44,331
Carrying amount as at January 01, 2019	0	3,686	29,816	6,121	6,783	779	47,185
Carrying amount as at June 30, 2019	0	12,678	29,816	7,328	5,683	531	56,035

Intangible assets neither served as securities for liabilities nor were otherwise restricted at the balance sheet date.

Effects of the First-Time Application of IFRS 16

In 2019, the company made distributions to shareholders of €2,044 thousand (previous year: €1,635 thousand).

Notes to the Statement of Changes in Equity

Supplementary Report

Transactions with individuals or companies who may be subject to the influence of First Sensor or who may exert an influence over First Sensor must be disclosed unless such transactions have already been reported in the consolidated financial statements through the inclusion of consolidated companies.

The following transactions were carried out with individuals and companies deemed parties related to First Sensor:

– Dr. Dirk Rothweiler, Weimar (CEO since January 1, 2017)

Dr. Dirk Rothweiler was granted 80,000 stock options under the stock option program 2017/1 for members of the Executive Board of First Sensor AG. These were accepted by him on March 22, 2019. The exercisability of the stock options depends in particular on the achievement of the performance target and the expiration of the four-year waiting period. The exercise price of the respective stock option per share corresponds to the average of the First Sensor share over the last 30 trading days prior to the respective exercise date plus 20%, but at least €15.00 in each case.

Related Party Transactions

The company is not aware of other key events following the end of the fiscal year, which will affect the net assets, financial position and results of operations.

Berlin, August 13, 2019

First Sensor AG

Dr. Dirk Rothweiler Dr. Mathias Gollwitzer

CEO CFO

Supplementary Report

Notes to the Statement of Changes in Equity

Related Party Transactions

Supplementary Report

Statement by the Legal Representatives (Responsibility Statement) in Accordance With Section 297 (2) Sentence 4 and Section 315 (1) Sentence 5 HGB

To the best of our knowledge, and in accordance with the applicable reporting principles for half-year financial reporting, the consolidated half-year financial statements give a true and fair view of the assets, financial position and profit or loss of the Group, and the interim Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the rest of the fiscal year.

Berlin, August 13, 2019

First Sensor AG

Dr. Dirk Rothweiler Dr. Mathias Gollwitzer

CEO CFO

Financial Calendar 2019

As we cannot rule out the possibility of delays, we recommend that you consult the latest set of dates at http://www.first-sensor.com. This consolidated financial report is available in German and English. Both versions are also available for download on the internet at www.first-sensor.com.

ANNUAL GENERAL MEETING 2019

Penta Hotel, Berlin

CONSOLIDATED FINANCIAL REPORT 2018

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March 21

GERMAN SPRING CONFERENCE 2019 / ANALYST CO N FE RE N C E

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May 14-15

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