InVision AG

Interim / Quarterly Report • Nov 17, 2015

Financial Report 9M 2015

Consolidated Interim Financial Statements

of InVision AG as of 30 September 2015 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)	9M 2015	9M 2014	∆
Revenues	9,176	9,485	-3%
Subscriptions	7,677	6,893	+11%
Projects	1,499	2,592	-42%
EBIT	1,692	2,926	-42%
as a % of revenues	18%	31%	-13 PP
Consolidated result	1,648	3,231	-49%
as a % of revenues	18%	34%	-16 PP
Operating cash flow	2,067	1,652	+25%
as a % of revenues	23%	17%	+6 PP
Earnings per share (in EUR)	0.74	1.47	-50%
(in TEUR)	30 Sept 2015	31 Dec 2014	∆
Balance sheet total	14,644	15,239	-4%
Liquid funds	1,650	3,388	-51%
Equity	7,880	8,455	-7%
as a % of balance sheet total	54%	55%	-1 PP

Consolidated Balance Sheet

Assets (in EUR)	30 Sept 2015	31 Dec 2014
Short-term assets
Liquid funds	1,649,738	3,387,696
Securities	0	1,000,000
Trade receivables	2,601,768	2,033,144
Income tax claims	21,099	123,844
Prepaid expenses and other short-term assets	160,186	185,214
Total short-term assets	4,432,791	6,729,898
Long-term assets
Intangible assets	611,193	702,864
Tangible assets	8,608,313	6,806,481
Deferred taxes	950,860	962,060
Other long-term assets	40,767	37,429
Total long-term assets	10,211,133	8,508,834
Total assets	14,643,924	15,238,732
Equity and liabilities (in EUR)	30 Sept 2015	31 Dec 2014
Short-term liabilities
Trade payables	181,519	136,805
Provisions	519,223	917,039
Income tax liabilities	22,800	22,506
Short-term share of deferred income and other short-term liabilities	2,540,174	1,707,839
Total short-term liabilities	3,263,716	2,784,189
Long-term liabilities
Liabilities to financial institutions	3,500,000	4,000,000
Total long-term liabilities	3,500,000	4,000,000
Equity
Subscribed capital	2,235,000	2,235,000
Capital reserves	8,033,743	8,033,743
Profit reserves	1,272,549	1,272,549
Equity difference from currency translation	-378,867	-391,335
Losses carried forward	-4,930,414	-6,898,499
Group/consolidated result	1,648,197	4,203,085
Total equity	7,880,208	8,454,543
Total equity and liabilities	14,643,924	15,238,732

Consolidated Statement of Comprehensive Income

	9M 2015	9M 2014
Revenues	9,176,166	9,484,512
Other operating income	107,457	767,963
Cost of materials	-322,332	-214,708
Personnel expenses	-4,871,196	-4,743,538
Amortisation/depreciation of intangible and tangible assets	-378,717	-277,202
Other operating expenses	-2,019,478	-2,090,812
Operating result (EBIT)	1,691,900	2,926,215
Financial result	-26,399	-25,650
Currency losses/gains	37,663	502,430
Result before taxes (EBT)	1,703,164	3,402,995
Income tax	-54,967	-171,607
Consolidated net profit	1,648,197	3,231,388
Earnings per share	0.74	1.47

Consolidated Cash Flow Statement

	9M 2015	9M 2014
1. Cash flow from operating activities
Consolidated net loss/profit	1,648,197	3,231,388
+ Depreciation and amortisation of fixed assets	378,717	277,202
-/+ Profits/losses from the disposal of intangible and tangible assets	-23,640	-88,616
-/+ Decrease/increase in provisions	-397,816	-733,605
+/- Decrease/increase in deferred taxes	11,200	167,200
-/+ Other non-cash income/expenses	17,251	-616,892
+/- Decrease/increase in inventories and trade receivables	-568,624	-1,423,544
+/- Decrease/increase in other assets and prepaid expenses	21,691	-34,318
+/- Decrease/increase in income tax claims	102,745	71,226
-/+ Decrease/increase in income tax liabilities	294	-108,907
-/+ Decrease/increase in trade payables	44,714	-192,905
-/+ Decrease/increase in other liabilities and deferred income	832,335	1,103,662
Cash flow from operating activities	2,067,064	1,651,891
2. Cash flow from investing activities
- Payments made for investments in tangible assets	-2,069,184	-6,175,443
- Payments made for investments in intangible assets	-838	-7,677
+ Payments received from disposal of securities	1,000,000	0
- Payments made for purchase of securities	0	-1,000,000
+ Payments received from disposal of intangible and tangible assets	0	147,482
Cash flow from investing activities	-1,070,022	-7,035,638
3. Cash flow from financing activities
-/+Repayment of/additions to long-term financing liabilities	-500,000	4,000,000
- Payments made to repurchase the Company's outstanding shares	0	-228,330
+ Payments received from additions to equity (issue of treasury shares)	0	4,739,204
- Payments made to shareholders (dividend)	-2,235,000	0
Cash flow from financing activities	-2,735,000	8,510,874
Change in cash and cash equivalents	-1,737,958	3,127,127
Effect of foreign exchange rate changes on cash and cash equivalents	0	11
Cash and cash equivalents at the beginning of the period	3,387,696	4,575,878
Cash and cash equivalents at the end of the period	1,649,738	7,703,016

Consolidated Statement of Equity

	Subscribed capital	Capital reserves	Legal profit reserves	Other profit reserves	Equity difference from currency translation	Losses carried forward	Equity
31 December 2014	2,235,000	8,033,743	78,989	1,193,560	-391,335	-2,695,414	8,454,543
Consolidated net profit	0	0	0	0	12,468	1,648,197	1,660,665
Dividend payment	0	-2,235,000	0	0	0		0 -2,235,000
30 September 2015	2,235,000	5,798,743	78,989	1,193,560	-378,867	-1,047,217	7,880,208

Consolidated Notes

to the Consolidated Interim Financial Statements of InVision AG as of 30 September 2015 (condensed/unaudited)

1. General information about the Company

The business activities of 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"), include cloud-based services for contact centres offered under the injixo brand, learning content for contact centres offered under The Call Center School brand, and workforce management software offered under the InVision WFM brand. The InVision Group does business primarily in Europe and the United States.

The Company's registered offices are located at Speditionstrasse 5, 40221 Düsseldorf, Germany. The Company is recorded in the Commercial Register of the Local Court of Düsseldorf under the 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.

2. 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.

3. Group of consolidated companies

With retroactive effect as of 1 January 2015, and by contract dated 24 April 2015, InVision Software (Deutschland) GmbH was merged with InVision AG by means of an absorption merger, according to the provisions of the German Company Transformation Act (UmwG), in particular sections §§ 2 et seq., 4 et seq. and 60 et seq. (Parent-Subsidiary Merger). Thus, InVision Software (Deutschland) GmbH as a company is no longer included in the group of consolidated companies, as of the end of the reporting period. The remaining group of consolidated companies has not changed since 31 December of the previous fiscal year.

4. Treasury shares

The Company has no treasury shares.

5. Revenues

Revenues are categorised as follows:

By Business Activities (in TEUR)	9M 2015	9M 2014
Subscriptions	7,677	6,893
Projects	1,499	2,592
Total	9,176	9,485

6. Deferred taxes

InVision Software (Deutschland) GmbH merged with InVision AG with retroactive effect as of 1 January 2015 on the basis of tax advice which was subsequently discovered to be incorrect. As a consequence unrecognised tax losses carried forward in the amount of EUR 2.4 million have been cancelled.

7. 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.

8. Executive Board

The Executive Board is composed of the following members:

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

9. 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 nine months of 2015, there was an average of 2,235,000 shares issued and outstanding. Earnings per share for this period were therefore EUR 0.74, compared to EUR 1.47 in the previous year, based on 2,199,556 shares issued.

10. 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, 17 November 2015

The Executive Board Peter Bollenbeck Armand Zohari

Interim Group Management Report

of InVision AG as of 30 September 2015 pursuant to §315 of the German Commercial Code (condensed/unaudited)

Results of operation

Consolidated revenues during the reporting period equalled TEUR 9,176 (previous year: TEUR 9,485) and therefore decreased by 3 percent. Revenues from subscriptions increased by 11 percent to TEUR 7,677 (previous year: TEUR 6,893). Project revenues decreased by 42 percent to TEUR 1,499 (previous year: TEUR 2,592).

The operating result (EBIT) totaled in the reporting period TEUR 1,692 (previous year: TEUR 2,926). The EBIT margin in the reporting period was 18 percent (previous year: 31 percent).

In the reporting period, consolidated net profit equalled TEUR 1,648 (previous year: TEUR 3,231). Accordingly, earnings per share totalled EUR 0.74 with an average of 2,235,000 shares (previous year: EUR 1.47 with 2,199,556 shares).

Net assets and financial position

Cash flow from operating activities reached TEUR 2,067 in the reporting period (previous year: TEUR 1,652), this corresponds to a share of 23 percent of the Group revenues (previous year: 17 percent).

As of the end of the reporting period, the liquid funds (cash) went down to TEUR 1,650 (31 Dec 2014: TEUR 3,388).

The balance sheet total equalled TEUR 14,644 (31 Dec 2014: TEUR 15,239), as of the end of the reporting period. Equity is now at TEUR 7,880 (31 Dec 2014: TEUR 8,455), and the equity ratio equals 54 percent (31 Dec 2014: 55 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

In the Company's opinion, the demand for solutions to reduce costs and improve productivity in the key markets for InVision will remain at a permanently high level. The InVision Group can therefore constantly exploit sales potential with its offerings. This gives InVision an opportunity to enjoy long-term growth.

For the full financial year of 2015, the Executive Board of InVision AG expects total revenues of approximately EUR 12 million and an EBIT of about EUR 2.5 million

Düsseldorf, 17 November 2015

The Executive Board Peter Bollenbeck Armand Zohari