First Sensor AG

Quarterly Report • May 28, 2014

INTERIM FINANCIAL REPORT AS AT MARCH 31, 2014

At a glance in figures 4
At a glance in words 4
Foreword (by the Management Board) 5
Group management interim report (IFRS) 7
First Sensor Share 12
Consolidated balance sheet (IFRS) 15
Consolidated statement of comprehensive income (IFRS) 17
Consolidated statement of changes in equity (IFRS) 18
Consolidated statement of cash flow (IFRS) 19
Notes to the consolidated interim financial statements (IFRS) 20
Assurance of the legal representatives 21
Legal notice, financial calendar, contact 22

AT A GLANCE IN FIGURES

in € thousand, unless otherwise indicated	3M 2014	3M 2013	Δ	in %
Sales revenues	28,974	26,108	2,866	11.0
EBITDA	3,487	3,283	204	6.2
EBITDA margin (%)	11.7	12.9	-1.2
EBIT	1,388	1,082	306	28.3
Net profit for the period*	1,266	1,138	128	11.2
Cash flow from operating activities	1,120	1,344	-224	-16.7
Cash flow from investment activities	-936	-176	-760	-431.8
Free cash flow	184	1,168	-984	-84.2
Number of shares in thousand	9,981	9,940	41	0.4
Earnings per share (€)*	0.13	0.11	0.02	18.2
Incoming orders	30,416	27,041	3,375	12.5
Book-to-bill-ratio	1.05	1.04	0.01	1.0

* For purposes of better comparability adjusted by PPA-amortization in the respective financial period.

in € thousand, unless otherwise indicated	Mar. 31 2014	Dec. 31 2013	Δ	in %
Orders on hand	74,255	73,672	583	0.8
Shareholders' equity	70,649	70,006	643	0.9
Balance sheet total	147,566	146,735	831	0.6
Equity ratio (%)	47.9	47.7	0,2
Net debt	-35,813	-35,787	-26	0.1
Number of employees	773	757	16	2.1

AT A GLANCE IN WORDS

• ^∎ Quarterly sales up 11% year on year.
• ^∎ Operating result (EBIT) improves by 28% to €1.4 million.
• ^∎ Realignment of First Sensor in four business units Medical, Industrial, Mobility and E2MS (Electronic Engineering & Manufacturing Services) implemented.
• ^∎ Incoming orders for the quarter up €3.4 million to over €30 million.
• ^∎ Forecast for 2014 confirmed sales between €114 million and €119 million, EBITDA between €13 million and €15 million.

FOREWORD (BY THE MANAGEMENT BOARD)

Dear shareholders and business partners, Dear employees,

First Sensor made a successful start to the 2014 financial year. Sales increased by 11% to around €29 million compared with the first quarter of the previous year. The operating result (EBIT) at just under €1.4 million was up 28.3% on the comparative figure for the previous year. The First Sensor Group's profit for the period thus came to €0.6 million, an increase of 44% against the first quarter of the previous year.

The positive business development is also the result of the strategic and organizational realignment of the First Sensor Group, which was introduced in 2013. Further key milestones were achieved in this regard during the first three months of 2014. These include the company's rigorous focus on four rapidly growing business areas and the continuation of various measures aimed at improving efficiency and optimizing costs.

We thank all our employees for their considerable dedication and commitment, which has been a key contributing factor allowing us to achieve our common goals for the First Sensor Group.

BUSINESS ACTIVITIES AND CONDITIONS Strategic focus on growth segments

In the first three months of the 2014 financial year, we continued to focus our efforts on driving forward the strategic and organizational realignment of our company. At the heart of this was establishing a focus for the First Sensor Group on the four rapidly growing core business areas of Medical, Industrial, Mobility and Development and Production Services (Engineering & Manufacturing Services). Separate business units were created for each of these business areas.

At the same time, we restructured and focused our sales activities. In the future, key account managers responsible for major and specialist customers will sell the products and services of the First Sensor Group, supported by product managers from the individual business units. Furthermore, a central sales unit will work across all of the business areas to identify new impetus and requirements emanating from the market, transfer these to the organization and optimize the services offered to the company's many existing customers.

Regular coordination and communication between the individual business units and the central business units ensures that products, systems and services are continuously screened for their applicability and potential with regard to other customers and sectors.

The new company structure was implemented successfully at the company on April 2, 2014.

Focusing on four core areas of business has allowed us to combine the expertise that exists within the company and align this in a targeted manner throughout our application and user markets. From now on, this will enable us to utilize the potential of existing business much more effectively Group-wide, perform cross selling and offer an expanded range of products and services to our customers. Our sharper profile also makes it easier for us to approach new customers in a more targeted manner – particularly in the core business areas.

Our goal is to become a market leader in all four of the Group's business areas in the medium term. In view of the initial business successes at the start of the 2014 financial year, we are extremely confident that we are on the right track and that we can already start to generate additional sales growth from the organizational repositioning alone.

In addition to this, we will also work to improve the earnings strength of the First Sensor Group on an ongoing basis. With this aim in mind, we will also continue with and implement a number of new measures aimed at improving efficiency and optimizing costs in the 2014 financial year.

These will include further expansion of the company's existing trading business through higher-margin inhouse products and continued optimization of our purchasing prices and conditions.

FINANCIAL YEAR 2014 Positive earnings expected

In light of the implemented strategic and organizational realignment of the First Sensor Group and the positive growth outlook for all our core areas of business, we expect to see positive earnings development in 2014 and confirm our previously anticipated values.

In line with our forecast made on March 18, 2014, in the 2014 financial year we still expect to achieve total sales in the region of €114 million and €119 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of between €13 million and €15 million.

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

GROUP MANAGEMENT INTERIM REPORT (IFRS)

BUSINESS MODEL

Business activities and organization

First Sensor is a developer and manufacturer of customer-specific high-end sensor solutions. These innovative specialized sensor solutions are used for the high-quality conversion of non-electric variables (radiation, light, pressure, flow rate, position, speed, fill level, etc.) into electric variables that are then used in our customers' electronic systems.

First Sensor's sensor solutions are mostly used as key components in a wide range of applications in several different industries.

Our core competencies include solutions in the area of optoelectronics, industrial cameras and MEMS sensor technology.

First Sensor's future strategy for its sensor products will focus on four growing areas of business: technical applications in the fields of medicine, industry, mobility and engineering and production services (Electronic Engineering & Manufacturing Services). Four business units has been created as part of this plan, which will ensure a consistent focus on markets and customers. The company has also systematically expanded its international sales in Europe, Asia and North America. We have identified the changes that we needed to make to our organizational structure and have been implemented these. First Sensor is aiming to become one of the market leaders in all areas of business within the next five years.

Medical

• Ventilators and anesthesia equipment
• Blood glucose monitors
• Cancer diagnosis
• Measurement systems for the pharmaceutical and environmental technology industries

Mobility

• LIDAR (optical distance and speed measurement)
• Tank pressure and sun angle sensors for motor vehicles
• Air conditioning systems

Industrial

• Fill level measurements in industry
• X-ray machines for baggage screening
• Machine controls
• Aerospace research
• Truck toll monitoring

E2MS Electronic & Manufacturing Services

• Consultation and design for customer-specific sensor solutions
• Complete development services in the microsystem technology incl. hard- and software
• State-of-the-art production capacities and technologies
• Technology specialists in the disciplines of application-specific measuring technology, test benches and calibration services in accordance with sectorspecific quality standards and certifications

First Sensor is one of the world's technology leaders, developing and producing optoelectronic and MEMSbased high-end sensor solutions for the most stringent specifications.

First Sensor is active in a future market, and the broad mix of sectors means that the company is generally independent of cyclical developments in the individual sectors.

The market for high-end sensor solutions that First Sensor addresses is generally regarded as a strong global growth market, not least because the number of measurements required in each area of application is also increasing ever further. This means it is important to fit more and more sensors into the smallest possible space. To achieve this, the sensors must become smaller. The market is also demanding robust solutions that are as affordable as possible. First Sensor's broad technological expertise and experience allows it to develop solutions on the basis of technologies other than those that were previously standard. With the new LDE pressure sensor and the new Tbridge, for example, two innovative products that address precisely this demand have just reached market maturity.

ECONOMIC REPORT

Changes in the basis of consolidation

There were no changes in the basis of consolidation in the quarter under review.

Earnings situation

First Sensor's total sales increased over the quarter under review to €29.0 million, up 11.0% on the previous year's figure. This is largely attributable to the sales upturn in Europe and the initial success of sales optimization in North America. Deferred sales from the substitution of the trading business were offset by increased sales in the automotive business as early as in the first quarter.

The total performance of €29.7 million (previous year: €25.4 million) includes capitalized own work and changes in inventories of finished goods and work in progress in addition to sales. The increase is due primarily to increased sales and positive changes in inventories.

The increase of €0.6 million in other operating income to €1.2 million (previous year: €0.6 million) was mainly the result of proceeds from subsidies and allowances from successfully completed development projects.

The materials expense ratio was 47.6%, 2.4 percentage points lower than in the previous year. The main reason for this is the altered product mix in the first quarter due to expansion in the automotive business, which tends to have lower margins.

Personnel expenses at €-9.7 million were up €1.2 million on the same period for the previous year mainly on account of deferred expenses for profit sharing and bonuses, which in the previous year were only recognized as an expense in the second quarter. However, the personnel expenses ratio improved to a level of under 33% due to the rise in total performance.

Other operating expenses at €-3.5 million increased by €0.7 million. This is mainly the result of increased consultation services in connection with subsequent costs from the purchasing project and the realignment to business units.

This resulted in a year-on-year improvement in EBITDA (earnings before interest, taxes, depreciation and amortization) of €3.5 million (previous year: €3.3 million). This equates to an EBITDA margin in relation to total performance of 11.7% (previous year: 12.9%).

Depreciation of property, plant and equipment and amortization of intangible assets amounted to €-2.1 million (previous year: €-2.2 million). The reduction is due to write-downs on purchase price allocations.

At €-0.7 million, the financial result for the quarter under review remained constant at the previous year's level.

This resulted in consolidated profit after tax of €0.6 million for the first quarter of 2014 (previous year: €0.4 million).

Order book

Orders on hand in the Group amounting to €74.3 million as at March 31, 2014, increased by €0.6 million compared with €73.7 million as at December 31, 2013. Incoming orders recorded pleasing growth of €3.4 million (12.6%) to €30.4 million compared with €27.0 million in the same period of the previous year. The ratio of incoming orders to sales (book-to-bill) as a leading indicator improved to 1.05 (previous year: 1.04).

in € thousand	3M 2014	3M 2013
Sales revenues	28,974	26,108
Incoming orders	30,416	27,041
Orders on hand	74,255	73,358
Book-to-bill-ratio	1.05	1.04

This is a solid basis for the achievement of our growth targets for 2014.

Financial analysis

The aim of First Sensor's financial management is to ensure adequate liquidity at all times for the production processes, growth and investments.

Promissory note loans totaling €31.0 million issued at the end of the 2013 financial year matured, resulting in loan repayments and interest payments for current loans in the first quarter of 2014.

The following table shows net debt:

in € thousand	Q1 2014	2013
Non-current financial liabilities	-42,185	-42,927
Current financial liabilities	-4,461	-4,217
Cash and cash equivalents	10,833	11,357
Net debt	-35,813	-35,787

Non-current financial liabilities fell by €0.7 million in the first quarter of 2014 on account of loan repayments. Under current financial liabilities, there was increased utilization of overdraft facilities.

Investment analysis

Cash flow from investment activities of €-0.9 million mainly relates to investments in machinery and equipment. The comparatively high figure for the previous year is due to the sale of Vereta GmbH.

in € thousand	3M 2014	3M 2013
Intangible assets	-648	-437
Property, plant and equipment	-405	-433
Investments	-1,053	-870
Desinvestment of Vereta GmbH	0	550
Investment grants	99	117
Other effects	18	27
Cash flow from investment activities	-936	-176
Intangible assets	-1,311	-1,356
Property, plant and equipment	-788	-845
Depreciation and amortization	-2,099	-2,201

Liquidity analysis

In order to be able to assess First Sensor's solvency, the following table shows the company's liquidity in the form of liquidity ratios. To calculate the cash ratio, cash and cash equivalents are shown in relation to current liabilities. The quick ratio includes current receivables, while the current ratio takes into account inventories as well. The changes compared with the previous year show an improvement in all areas.

in %	Q1 2014	2013
Cash ratio	54.2	60.8
Quick ratio	119.3	117.9
Current ratio	269.1	277.3

The following table shows the condensed consolidated statement of cash flows:

in € thousand	3M 2014	3M 2013
Cash flow from operating activities	1,120	1,344
Cash flow from investment activities	-936	-176
Cash flow from financing activities	-704	-2,964
Exchange differences	-4	29
Change in cash and cash equivalents	-520	-1,796
Cash and cash equivalents at the beginning of the financial year	11,357	12,201
Cash and cash equivalents at the end of the financial year	10,833	10,434
Free cash flow	184	1,168

Cash flow from operating activities at €1.1 million was down slightly on the previous year's figure. Due to sales growth as at the end of the quarter under review and the associated rise in working capital, cash flow from operating activities as at March 31, 2014, is still below the expected level.

Free cash flow, which consists of the total of cash flow from operating activities and cash flow from investment activities, amounted to €0.2 million in the period under review (previous year: €1.2 million). The high figure for the previous year is primarily the result of the sale of Vereta GmbH (€0.6 million) and the lower level of investment (€0.2 million).

Analysis of asset structure

Compared with the consolidated annual financial statements for 2013, the balance sheet total increased from €146.7 million to €147.6 million. The main changes resulted from the following situations:

Intangible assets fell by €0.6 million year on year from €22.9 million to €22.3 million as a result of scheduled amortization in the amount of €1.3 million. This was offset by investments totaling €0.6 million.

The newly created item of internally generated intangible assets provides greater clarity. It came to €2.8 million as at the reporting date (previous year: €2.9 million).

The amount of goodwill remained unchanged year on year at €29.8 million. The carrying amounts were subjected to an impairment test in the annual financial statements and no valuation allowances were found to be necessary.

Property, plant and equipment fell by €0.4 million during the quarter to €37.1 million. This was due to reluctance to invest in connection with scheduled depreciation, which led to the current carrying amount.

Inventories increased slightly by €0.2 million to €29.9 million owing to the improved order situation and the higher quarterly sales generated as a result. Further improvements to working capital are expected in financial year 2014 as a result of the completed purchasing project.

The considerable rise in trade accounts receivable compared with the previous year was largely due to the increase in sales in both the automotive business and the service production area. This change promises a significant increase in cash and cash equivalents in the next quarter.

Cash and cash equivalents amounted to €10.8 million as at the reporting date, which equates to a decrease of €0.5 million compared with the end of 2013. This is caused primarily by the advance financing of the operating business, which is reflected in the increase in trade accounts receivable.

Repayments of the principal under the previous syndicated loan agreement no longer had a negative impact on available funds in the first quarter of 2014. The issuing of two promissory note loans totaling €31.0 million at the end of the year under review significantly eased this financial burden for the next few financial years.

Accounts payable remained almost constant year on year at €7.8 million.

The item other current liabilities totaled €6.8 million as at the reporting date. The increase of €1.0 million compared with the end of 2013 is due partly to unpaid liabilities from wages and salaries in connection with the bonus and profit sharing payments made at the end of the quarter and partly to value-added tax liabilities and an increase in other provisions.

Group equity at €70.6 million is up €0.6 million on the figure for December 31, 2013. Please refer to the statement of changes in equity for further information. The proportional improvement in the balance sheet profit led to a slight improvement of 0.1 percentage point in the equity ratio to 47.8% (previous year: 47.7%).

SUPPLEMENTARY REPORT

There are no important situations that have arisen since the end of the reported period.

OUTLOOK, OPPORTUNITY AND RISK REPORT

For reporting on the outlook, opportunity and risk report please refer to the information contained in the business report for the 2013 financial year, which was published at the end of March 2014.

No material changes to the situations described therein have occurred during the first three months of financial year 2014.

FIRST SENSOR SHARE

Share price in first quarter of 2014 up 13.4% on year-end closing price / Positive price trend continues after end of quarter

Market and index comparison of the performance of the First Sensor share in Q1 2014

The share price held its own at the start of the year, moving within a relatively narrow range of between €8.15 and €8.47. It reached a temporary high of €8.47 on January 13, but closed the month largely unchanged as against the previous year at €8.26 (Xetra).

After a moderate downturn in early February, the share price recovered as the month continued. The share closed the month at €8.35 (Xetra) on February 28, up around 1 percent on the previous month.

The First Sensor share enjoyed solid development in March, recording substantial growth of 12 percent over the course of the month – which saw the announcement of the outlook for 2014 as a whole (March 13), among other things – and closing the month at €9.39 (Xetra).

All in all, the First Sensor share price increased by around 13 percent in the first quarter; this corresponds to a Xetra closing price of €9.39 as at March 31, 2014.

The positive share price performance continued after the end of the quarter, with substantial price growth recorded in the first trading days in April. Both the announcement of the implementation of the new organizational structure and the share purchase by the Chief Financial Officer were welcomed by market participants. The share price was unaffected by the uncertainty on the stock markets resulting from the sustained crisis in Ukraine. The share recorded a high for the month of €11.06 (April 29) before closing the month at €10.77 (Xetra).

The overall performance of the benchmark indices TecDAX and Prime All Share Index in the first quarter was weaker than that of the First Sensor share. The TecDAX recorded growth of around 7 percent in the first three months of the year, while the Prime All Share Index remained unchanged.

The company's share capital amounted to €49,907,215 as at the balance sheet date, divided into 9,981,443 no-par value bearer shares each with a notional interest in the share capital of €5.00. This results in market capitalization of around €93.7 million based on a closing price of €9.39 per share.

The average number of First Sensor shares traded each day in the first quarter was around 7,800.

Consoli as at M idated interim arch 31, 2014 financial repo 4ort

Performa nce of the Firs st Sensor shar re I January 1 t to March 31, 2 2014

First Sens sor share key f figures

in $\epsilon$ thousand, unless otherwise specified	01 2014	01 2013	Δ	Δ%
Share capital $(\epsilon)$	49,907,215	49,701,365	205.850#	0.4
Market capitalization	93,726	82.504	11,222#	13.6
Share price $(\epsilon)$ , XETRA closing price	9.39	8.30	1.09#	13.1
Net profit attributable to shareholders*	1.266	1.138	128#	11.2
Number of shares, weighted	9,981,443	9,940,273	41.170#	0.4
Earnings per share $(\epsilon)^*$	0.13	0.11	0.02#	18.1

* For purpo oses of better com mparability adjus sted by PPA-amo ortization in the re espective financia al period.

Shareholder structure as at March 31, 2014

(according to available voting rights notifications)

• Freefloat
• Alegria Beteiligungsgesellschaft mbH
• DAH Beteiligungs GmbH
• Lampe Beteiligungsgesellschaft mbH

First Sensor share key data

ISIN	DE0007201907
Abbreviation	SIS
Class of security	No-par value ordinary bearer share
Market segment	Regulated market
Transparency level	Prime Standard
Trading centers	XETRA, all German stock exchanges
Industry	Technology
IPO	1999
Designated sponsor	Lang & Schwarz Broker GmbH
Analysts	Warburg Research, First Berlin

CONSOLIDATED BALANCE SHEET (IFRS)

ASSETS

ASSETS in € thousand	Mar. 31, 2014	Dec. 31, 2013	Changes
Intangible assets	22,321	22,931	-610
Internally-generated intangible assets	2,822	2,875	-53
Goodwill	29,816	29,816	0
Property, plant and equipment	37,145	37,528	-383
Other non-current assets	26	21	5
Deferred taxes assets	1,786	1,791	-5
Total non-current assets	93,916	94,962	-1,046
Inventories	29,936	29,765	171
Trade accounts receivables	8,507	6,577	1,930
Tax refund claims	668	717	-49
Other current assets	3,837	3,357	480
Cash and cash equivalents	10,833	11,357	-524
Total current assets	53,781	51,773	2,008
TOTAL ASSETS	147,697	146,735	962

EQUITY AND LIABILITIES

EQUITY AND LIABILITIES in € thousand	Mar. 31, 2014	Dec. 31, 2013	Changes
Share capital	49,907	49,907	0
Capital reserves	16,022	15,960	62
Earning reserves	1,004	1,004	0
Currency translation	-634	-570	-64
Revaluation reserves	-480	-495	15
Retained earnings	4,591	4,018	573
Minority interest	238	182	56
Total shareholders' equity	70,648	70,006	642
Non-current post-employment benefit obligation	308	310	-2
Other non-current provisions	144	195	-51
Long-term loans, excluding current portion	42,185	42,927	-742
Other non-current liabilities	5,824	5,944	-120
Deferred tax liabilities	6,645	6,835	-190
Total non-current liabilities	55,106	56,211	-1,105
Income tax provisions and liabilities	1,433	1,299	134
Other current provisions	528	550	-22
Short-term loans and current portion of long-term loans	4,461	4,217	244
Payments received on account of orders	885	865	20
Trade accounts payables	7,788	7,706	82
Other current liabilities	6,848	5,881	967
Total current liabilities	21,943	20,518	1,425
TOTAL EQUITY AND LIABILITIES	147,697	146,735	962

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)

in € thousand	Jan. 1 –Mar. 31, 2014	Jan. 1 -Mar. 31, 2013	Changes
Sales revenues	28,974	26,108	2,866
Other operating income	1,165	647	518
Change in inventories of finished goods and work in progress	574	-1,023	1,597
Other own work capitalized	165	353	-188
Costs of materials/ purchased services	-14,153	-11,497	-2,656
Personnel expenses	-9,708	-8,498	-1,210
Other operating expenses	-3,530	-2,807	-723
PROFIT FROM OPERATIONS (EBITDA)	3,487	3,283	204
Depreciation of property, plant and equipment and amortization of intangible assets	-2,099	-2,201	102
EARNINGS BEFORE INTEREST AND TAX (EBIT)	1,388	1,082	306
Interest income	3	10	-7
Interest expenses	-559	-604	45
Currency gains	26	32	-6
Currency losses	-129	-131	2
INCOME BEFORE TAX AND MINORITY INTEREST	729	389	340
Income tax expenses	-100	49	-149
NET PROFIT FOR THE PERIOD	629	438	191
Net profit for the period attributable to First Sensor AG shareholders	573	431	142
Net profit for the period attributable to minority interest	56	7	49
Earnings per share in € (basic = diluted)	0.06	0.04	0.02

CONSOLIDATED INCOME STATEMENT

OTHER COMPREHENSIVE INCOME

NET PROFIT FOR THE PERIOD	629	438	191
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	-63	-12	-51
Revaluation of derivative financial instruments	15	89	-74
Taxes on other comprehensive income	10	0	10
Items that can be subsequently reclassified to the income statement	-38	77	-115
TOTAL COMPREHENSIVE INCOME	591	515	76
Thereof attributable to shareholders of First Sensor AG	535	508	27
Thereof attributable to minority interest	56	7	49

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)

MARCH 31, 2013

in € thousand	Number of shares in thou.	Capital stock	Capital reserves	Earning reserves	Currency translation	Revaluation reserves	Retained earnings	Minority interest	Total shareholders' equity
As at January 1, 2013	9,940	49,701	15,699	1,004	-329	-821	4,537	125	69,916
Net profit for the period							431	7	438
Other comprehensive income					-12	115			103
Total comprehensive income					-12	115	431	7	70
Share-based remuneration			13						146
Capital increase									568
Appropriation of earnings									0
As at March 31, 2013	9,940	49,701	15,712	1,004	-341	-706	4,968	132	69,916

MARCH 31, 2014

in € thousand	Number of shares in thou.	Capital stock	Capital reserves	Earning reserves	Currency translation	Revaluation reserves	Retained earnings	Minority interest	Total shareholders' equity
As at January 1, 2014	9,981	49,907	15,960	1,004	-570	-495	4,018	182	70,006
Net profit for the period							573	56	629
Other comprehensive income					-64	15			-49
Total comprehensive income					-64	15	573	56	580
Share-based remuneration			62						62
Capital increase
Appropriation of earnings
As at March 31, 2014	9,981	49,907	16,022	1,004	-634	-480	4,591	238	70,648

CONSOLIDATED STATEMENT OF CASH FLOW (IFRS)

in € thousand	Jan. 1 –Mar. 31, 2014	Jan. 1 -Mar. 31, 2013	Changes
INCOME BEFORE TAX AND MINORITY INTEREST	729	389	340
Interest paid	556	-10	566
Depreciation of property, plant and equipment and amortization of intangible assets	2,099	2,201	-102
Income from investment grants	-99	-154	55
Income/ loss from the disposal of fixed assets	-15	4	-19
Other non-cash expenses/ income	66	13	53
Changes in provisions	-641	-133	-508
Changes in working capital	-1,999	-1,004	-995
Changes in other assets and liabilities	290	53	237
Income tax paid	134	-15	149
CASH FLOW FROM OPERATING ACTIVITIES	1,120	1,344	-224
Payments for investments in property, plant and equipment and intangible assets	-1,053	-870	-183
Proceeds from disposal of property, plant and equipment, intangible assets and investments	15	570	-555
Payments for acquisition of other financial assets	0	-3	3
Proceeds from investment grants	99	117	-18
Interest received	3	10	-7
CASH FLOW FROM INVESTMENT ACTIVITIES	-936	-176	-760
Proceeds from shareholders	0	7	-7
Repayments of financial liabilities	-1,043	-3,198	2,155
Proceeds from loans	545	227	318
Interest paid	-206	0	-206
CASH FLOW FROM FINANCING ACTIVITIES	-704	-2,964	2,260
NET CHANGE IN CASH AND CASH EQUIVALENTS	-520	-1,796	1,276
Currency differences from converting funds	-4	29	-33
CASH FUNDS AT THE BEGINNING OF THE FINANCIAL PERIOD	11,357	12,201	-844
CASH FUNDS AT THE END OF THE FINANCIAL PERIOD	10,833	10,434	399

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS)

Presenation of the situation at the group

The parent company is First Sensor AG, domiciled in Berlin, Peter-Behrens-Straße 15, 12459 Berlin, and entered in the commercial register of Berlin in department B under the number HRB 69326. First Sensor AG is listed in the regulated market on the Frankfurt Stock Exchange in the Prime Standard segment under ISIN DE0007201907.

First Sensor AG and its subsidiaries, referred to hereinafter as "First Sensor", operate in the sensor production and microsystems technology industries. The company's business mainly focuses on the development, manufacture and distribution of customer-specific optical and non-optical semiconductor sensors and sensor systems.

First Sensor also develops and manufactures highly reliable customized hybrid circuits and products for microsystem engineering and advanced packaging.

The consolidated financial statements for 2013 were approved by the Supervisory Board on March 25, 2014, and were published on the First Sensor AG website.

Reporting principles

First Sensor's consolidated financial statements for 2013 have been prepared in accordance with the applicable International Financial Reporting Standards (IFRS) as at the balance sheet date and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) that must be applied in the European Union.

In the consolidated interim financial report as at March 31, 2014, which was prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", the same accounting policies were used as in the consolidated financial statements for financial year 2013.

The interim financial statements were prepared in euro (€). Unless otherwise indicated, all amounts have been stated in thousands of euros (€ thousand). The financial year of First Sensor AG and its consolidated subsidiaries corresponds to the calendar year.

The statement of comprehensive income has been prepared using the nature of expense method.

To improve clarity, individual items have been summarized in the balance sheet and the statement of comprehensive income. The Notes show a breakdown of these items. Rounding differences in the presentation may result in divergence from the exact mathematical values.

Important discretionary decisions and uncertainty of estimates

In preparing the interim financial statements, some assumptions and estimates have been made which affected the amount and the disclosure of reported assets and liabilities, earnings and expenses. In individual cases, the actual values may deviate from these assumptions or estimates at a later stage. Relevant changes will be made once more accurate information is available.

All assumptions and estimates are made to the best of our knowledge and belief in order to provide a true and fair view of the Group's net assets, financial position and results of operations.

Basis of consolidation

There were no changes to the Group's consolidated financial statements compared with the consolidated financial statements for 2013.

Management board

The Supervisory Board of First Sensor AG resolved to extend the appointment and Management Board contract of Mr. Joachim Wimmers, Chief Financial Officer of First Sensor AG, in advance for a period of four years until February 28, 2018.

Mr. Wimmers will continue to be responsible for the areas of Finance, Procurement, Human Resources, IT, Investor Relations and Compliance.

Discontinued operations

No operations were discontinued in the first quarter of 2014.

Corporate Governance

The company has issued a declaration of compliance pursuant to Article 161 AktG (German Stock Corporation Act) and the declaration of business management pursuant to Article 289a German Commercial Code HGB. These declarations are permanently available on the company's website

www.first-sensor.com/de/investor-relations.

ASSURANCE OF THE LEGAL REPRESENTATIVES

According to Articles 264 (2) sentence 3, 289 (1) sentence 5 HGB

To the best of our knowledge, and in accordance with the applicable reporting principles, the financial statements give a true and fair view of the assets, financial position and profit or loss of the group, and the consolidated 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.

Berlin, May 28, 2014

First Sensor AG

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

LEGAL NOTICE, FINANCIAL CALENDAR, CONTACT

Legal disclaimer

This report contains statements of a predictive nature and does not represent any incitement to purchase shares of First Sensor AG, but rather is intended exclusively for information purposes with regard to possible future developments at the company.

All future-oriented specifications in this consolidated financial report were produced on the basis of a probabilitybased plan and represent statements regarding the future which cannot be guaranteed.

Date Topic Location May 23, 2014 Annual General Meeting Penta Hotel Berlin Köpenick, Grünauer Str. 1, 12557 Berlin May 28, 2014 Publication of consolidated interim financial report as at March 31, 2014 August 28, 2014 Publication of consolidated interim financial report as at June 30, 2014 November 24 – 26, 2014 Analysts' conference First Sensor AG/ German Equity Capital Forum 2014 Congress Center at Messe Frankfurt, Frankfurt am Main November 27, 2014 Publication of consolidated interim financial report as at September 30, 2014

Financial calendar 2014

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/de/investor-relations/termine

Internet, information, contact

This consolidated interim financial report as at March 31, 2014 is available in German and English. Both versions are also available for download on the internet at www.first-sensor.com.

Investor Relations T +49 30 639923-760 F +49 30 639923-719 ir@first-sensor.com www.first-sensor.com/de/investor-relations

FIRST SENSOR AG 23

Consolidated interim financial report as at March 31, 2014

First Sensor AG Peter-Behrens-Str. 15 12459 Berlin

T +49 30 6399 2399 F +49 30 6399 2333 contact@first-sensor.com

www.first-sensor.com