InVision AG

Interim / Quarterly Report • Jul 28, 2016

Financial Report 6M 2016

Consolidated Interim Financial Statements

of InVision AG as of 30 June 2016 in accordance with IFRS and § 315a of the German Commercial Code as well as the Group management report pursuant to § 315 of the German Commercial Code (condensed/unaudited)

Consolidated Balance Sheet

Consolidated Statement of Comprehensive Income

Consolidated Cash Flow Statement

Consolidated Statement of Equity

Consolidated Notes

Interim Group Management Report

Financial Summary

(in TEUR)	6M 2016	6M 2015	∆
Revenues	6,274	5,984	+5%
Subscriptions	5,637	5,036	+12%
Projects	637	948	-33%
EBIT	2,023	926	+118%
as a % of revenues	32%	15%	+17 PP
Consolidated result	1,854	934	+99%
as a % of revenues	30%	16%	+14 PP
Operating cash flow	4,419	2,473	+79%
as a % of revenues	70%	41%	+29 PP
Earnings per share (in EUR)	0.83	0.42	+98%
(in TEUR)	30 June 2016	31 Dec 2015	∆
Balance sheet total	16,500	14,243	+16%
Liquid funds	4,685	1,405	+233%
Equity	10,230	8,376	+22%
as a % of balance sheet total	62%	59%	+3 PP

Consolidated Balance Sheet

InVision AG, 30 June 2016 IFRS, in Euro (condensed/unaudited)

Assets (in EUR)	30 June 2016	31 Dec 2015
Short-term assets
Liquid funds	4,685,478	1,404,551
Trade receivables	1,580,573	2,755,752
Income tax claims	8,932	97,561
Prepaid expenses and other short-term assets	165,444	171,634
Total short-term assets	6,440,427	4,429,498
Long-term assets
Intangible assets	491,837	582,612
Tangible assets	9,260,181	8,808,971
Deferred taxes	273,905	386,555
Other long-term assets	33,951	35.056
Total long-term assets	10,059,874	9,813,194
Total assets	16,500,301	14,242,692
Equity and liabilities (in EUR)	30 June 2016	31 Dec 2015
Short-term liabilities
Trade payables	148,895	116,231
Provisions	475,227	627,617
Income tax liabilities	3,545	20,773
Short-term share of deferred income and other short-term liabilities	2,892,521	1,852,296
Total short-term liabilities	3,520,188	2,616,917
Long-term liabilities
Financing liabilities	2,750,000	3,250,000
Total long-term liabilities	2,750,000	3,250,000
Equity
Subscribed capital	2,235,000	2,235,000
Reserves	1,191,184	1,191,184
Equity capital difference from currency translation	-385,176	-366,655
Losses carried forward	7,189,105	5,316,246
Total equity	10,230,113	8,375,775
Total equity and liabilities	16,500,301	14,242,692

Consolidated Statement of Comprehensive Income

InVision AG, 30 June 2016

IFRS, in Euro (condensed/unaudited)

	6M 2016	6M 2015
Revenues	6,274,169	5,984,048
Other operating income	380,844	75,819
Cost of materials	-170,388	-162,499
Personnel expenses	-2,859,576	-3,379,793
Amortisation/depreciation of intangible and tangible assets	-292,379	-232,304
Other operating expenses	-1,309,323	-1,359,547
Operating result (EBIT)	2,023,347	925,724
Financial result	-22,238	-9,771
Currency losses/gains	-13,501	40,162
Result before taxes (EBT)	1,987,608	956,115
Income tax	-114,749	-51,958
Consolidated net profit	1,872,859	904,157
Exchange rate differences from converting foreign financial statements	-18,521	30,180
Consolidated result	1,854,338	934,337
Earnings per share	0.83	0.42

Consolidated Cash Flow Statement

InVision AG, 30 June 2016 IFRS, in Euro (condensed/unaudited)

	6M 2016	6M 2015
1. Cash flow from operating activities
Consolidated net loss/profit	1,872,859	904,157
+ Depreciation and amortisation of fixed assets	292,379	232,304
-/+ Profits/losses from the disposal of intangible and tangible assets	12,377	-23,640
-/+ Decrease/increase in provisions	-152,390	-375,471
+/- Decrease/increase in deferred taxes	112,650	7,466
-/+ Other non-cash income/expenses	-45,381	-39,761
+/- Decrease/increase in trade receivables and contract manufacturing	1,175,179	324,560
+/- Decrease/increase in other assets and prepaid expenses	7,295	-102,901
+/- Decrease/increase in income tax claims/tax liabilities	71,400	103,039
-/+ Decrease/increase in trade payables	32,664	219,529
-/+ Decrease/increase in other liabilities and deferred income	1,040,226	1,223,932
Cash flow from operating activities	4,419,258	2,473,214
2. Cash flow from investing activities
- Payments made for investments in tangible fixed assets	-625,190	-1,308,475
- Payments made for investments in intangible assets	-1,400	-837
+ Payments received from disposal of securities	0	1,000,000
Cash flow from investing activities	-626,590	-309,312
3. Cash flow from financing activities
-/+Repayment of/Additions to long-term financing liabilities	-500,000	-250,000
- Dividends paid	0	-2,235,000
Cash flow from financing activities	-500,000	-2,485,000
Change in cash and cash equivalents	3,292,668	-321,098
Effect of foreign exchange rate changes on cash and cash equivalents	-11,741	19,673
Cash and cash equivalents at the beginning of the period	1,404,551	3,387,696
Cash and cash equivalents at the end of the period	4,685,478	3,086,271

Consolidated Statement of Equity

InVision AG, 30 June 2016

IFRS, in Euro (condensed/unaudited)

	Subscribed capital	Reserves	Equity capital difference from currency translation Profit/Losses		Equity
31 December 2015		2,235,000 1,191,184	-366,655	5,316,246	8,375,775
Consolidated net profit	0	0	0	1,872,859	1,872,859
Exchange rate differences from converting foreign financial statements	0	0	-18,521	0	-18,521
30 June 2016		2,235,000 1,191,184	-385,176		7,189,105 10,230,113

Consolidated Notes

to the Consolidated Interim Financial Statements of InVision AG as of 30 June 2016 (condensed/unaudited)

General Information

General information about the Company

InVision Aktiengesellschaft, Düsseldorf (hereinafter also referred to as "InVision AG" or the "Company"), together with its subsidiaries (hereinafter also referred to as the "InVision Group" or the "Group"), develops and markets products and services for optimising workforce management, increasing the productivity, improving the quality of work, and reducing costs, and is mainly active in Europe and the United States.

The Company's registered offices are located at Speditionstraße 5, 40221 Düsseldorf, Germany. It is recorded in the Commercial Register of the Local Court of Düsseldorf under registration number HRB 44338. InVision AG has been listed in the prime standard segment of the Frankfurt Stock Exchange under securities identification number 585969 since 18 June 2007.

Basis of the accounting

The condensed consolidated interim financial report for the reporting period was prepared in accordance with IAS 34 "Interim Financial Reporting". The condensed consolidated interim financial report does not contain all explanations and information that are required for the financial statements of the full fiscal year and should be read in conjunction with the consolidated financial statements as of 31 December of the previous fiscal year.

Group of consolidated companies

On 27 June 2016, injixo B.V. was liquidated and deleted from the Dutch Commercial Register. The company was removed from the group of consolidated companies as per this date. The remaining group of consolidated companies has not changed since 31 December of the previous fiscal year.

Treasury shares

The Company has no treasury shares.

Revenues

Revenues are categorised as follows:

By Business Activities (in TEUR)	6M 2016	6M 2015
Subscriptions	5,637	5,036
Projects	637	948
Total	6,274	5,984

Events after the balance sheet closing date

After the end of the reporting period, there were no specific events which were of significant importance for the interim financial report.

Executive Board

The Executive Board is composed of the following members:

• Peter Bollenbeck (Chairman), Düsseldorf
• Armand Zohari, Bochum

Earnings per share

Earnings per share were calculated by dividing the periodic result, which is attributable to InVision AG's shareholders, by the average weighted number of shares issued and outstanding during the reporting period. InVision AG has issued only ordinary shares. In the first six months of 2016, there was an average of 2,235,000 shares issued and outstanding. Therefore, earnings per share for this period were EUR 0.83, compared to EUR 0.42 in the previous year, based on 2,235,000 shares issued.

Responsibility statement by the Executive Board

To the best of our knowledge and in accordance with the applicable reporting principles for financial reporting, the consolidated interim financial statements give a true and fair view of the Group's assets, liabilities, financial position and results of operation, and the interim Group's management report includes a fair review of the development and performance of the business, together with a description of the principal opportunities and risks related to the anticipated development of the Group for the remainder of the fiscal year.

Düsseldorf, 28 July 2016

The Executive Board Peter Bollenbeck Armand Zohari

Interim Group Management Report

of InVision AG as of 30 June 2016 pursuant to §315 of the German Commercial Code (condensed/unaudited)

Results of operation

Consolidated revenues during the reporting period equalled TEUR 6,274 (previous year: TEUR 5,984) and therefore increased by 5 percent. Revenues from subscriptions increased by 12 percent to TEUR 5,637 (previous year: TEUR 5,036). Project revenues decreased by 33 percent to TEUR 637 (previous year: TEUR 948).

Other operating income increased to TEUR 381 (previous year: TEUR 76). This was primarily due to a one-off compensation payment in the amount of TEUR 275 associated with an incorrect tax advice.

The operating result (EBIT) increased in the reporting period to TEUR 2,023 (previous year: TEUR 926). The EBIT margin in the reporting period was 32 percent (previous year: 15 percent).

In the reporting period, consolidated net profit equalled TEUR 1,854 (previous year: TEUR 934). Accordingly, earnings per share totalled EUR 0.83 with an average of 2,235,000 shares (previous year: EUR 0.42 with 2,235,000 shares).

Net assets and financial position

Cash flow from operating activities reached TEUR 4,419 in the reporting period (previous year: TEUR 2,473) and corresponds to a share of 70 percent of the Group revenues (previous year: 41 percent).

As of the end of the reporting period, the liquid funds (cash) increased to TEUR 4,685 (31 Dec 2015: TEUR 1,405).

The balance sheet total equalled TEUR 16,500 (31 Dec 2015: TEUR 14,243), as of the end of the reporting period. Equity capital is now at TEUR 10,230 (31 Dec 2015: TEUR 8,376), and the equity ratio equals 62 percent (31 Dec 2015: 59 percent).

Opportunities & risks

Reasonable opportunities for the business development of the InVision Group are described in the forecast report of this interim Group management report and in the Group management report of the previous fiscal year. The risks are described in the Group management report for the previous fiscal year.

Supplement report

After the end of the reporting period, there were no specific events which were of significant importance for the interim financial report.

Forecast report

For 2016, InVision still expects a stable demand for the products of the InVision Group.

For the full financial year of 2016, the Executive Board of InVision AG expects total revenues of at least EUR 12 million and an EBIT of EUR 3.5 - 4.0 million.

Düsseldorf, 28 July 2016

The Executive Board Peter Bollenbeck Armand Zohari