InVision AG

Interim / Quarterly Report • Aug 25, 2015

InVision AG

Financial Report 6M 2015

Consolidated Interim Financial Statements

of InVision AG as of 30 June 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)

Financial Summary

(in TEUR)	6M 2015	6M 2014	∆
Revenues	5,984	6,153	-3%
Subscriptions	5,036	4,501	+12%
Projects	948	1,652	-43%
EBIT	926	1,907	-51%
as a % of revenues	15%	31%	-16 PP
Consolidated result	904	1,921	-53%
as a % of revenues	15%	31%	-16 PP
Operating cash flow	2,493	2,324	+7%
as a % of revenues	42%	38%	+4 PP
Earnings per share (in EUR)	0.40	0.88	-55%
(in TEUR)	30 June 2015	31 Dec 2014	∆
Balance sheet total	15,020	15,239	-1%
Liquid funds & securities	3,350	4,388	-24%
Equity	7,154	8,455	-15%
as a % of balance sheet total	48%	55%	-7 PP

Consolidated Balance Sheet

InVision AG, 30 June 2015

IFRS, in Euro (condensed/unaudited)

Assets (in EUR)	30 June 2015	31 Dec 2014
Short-term assets
Liquid funds	3,349,665	3,387,696
Securities	0	1,000,000
Trade receivables	1,708,583	2,033,144
Income tax claims	21,099	123,844
Prepaid expenses and other short-term assets	284,778	185,214
Total short-term assets	5,364,125	6,729,898
Long-term assets
Intangible assets	659,945	702,864
Tangible assets	8,000,317	6,806,481
Deferred taxes	954,594	962,060
Other long-term assets	40,766	37,429
Total long-term assets	9,655,622	8,508,834
Total assets	15,019,747	15,238,732

Equity and liabilities (in EUR)	30 June 2015	31 Dec 2014
Short-term liabilities
Financing liabilities	263,394	0
Trade payables	356,334	136,805
Provisions	541,568	917,039
Income tax liabilities	22,800	22,506
Short-term share of deferred income and other short-term liabilities	2,931,771	1,707,839
Total short-term liabilities	4,115,867	2,784,189
Long-term liabilities
Financing liabilities	3,750,000	4,000,000
Total long-term liabilities	3,750,000	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
Foreign exchange translation adjustments	-361,155	-391,335
Losses carried forward	-4,930,414	-6,898,499
Group/consolidated result	904,157	4,203,085
Total equity	7,153,880	8,454,543
Total equity and liabilities	15,019,747	15,238,732

Consolidated Statement of Comprehensive Income

InVision AG, 30 June 2015 IFRS, in Euro (condensed/unaudited)

	6M 2015	6M 2014
Revenues	5,984,048	6,152,948
Other operating income	75,819	663,820
Cost of materials	-162,499	-168,258
Personnel expenses	-3,379,793	-3,143,520
Amortisation/depreciation of intangible and tangible assets	-232,304	-177,988
Other operating expenses	-1,359,547	-1,419,830
Operating result (EBIT)	925,724	1,907,172
Financial result	-9,771	-18,628
Currency losses/gains	40,162	44,431
Result before taxes (EBT)	956,115	1,932,975
Income tax	-51,958	-11,720
Consolidated net profit	904,157	1,921,255
Earnings per share	0.40	0.88

Consolidated Cash Flow Statement

InVision AG, 30 June 2015 IFRS, in Euro (condensed/unaudited)

	6M 2015	6M 2014
1. Cash flow from operating activities
Consolidated net loss/profit	904,157	1,921,255
+ Depreciation and amortisation of fixed assets	232,304	177,988
-/+ Profits/losses from the disposal of intangible and tangible assets	-23,640	-87,659
-/+ Decrease/increase in provisions	-375,471	-753,601
+/- Decrease/increase in deferred taxes	7,466	7,470
-/+ Other non-cash income/expenses	-20,088	-145,190
+/- Decrease/increase in trade receivables and contract manufacturing	324,560	-353,923
+/- Decrease/increase in other assets and prepaid expenses	-102,901	-31,333
+/- Decrease/increase in income tax claims	102,745	68,147
-/+ Decrease/increase in income tax liabilities	294	-106,898
-/+ Decrease/increase in trade payables	219,529	-139,635
-/+ Decrease/increase in other liabilities and deferred income	1,223,932	1,767,124
Cash flow from operating activities	2,492,887	2,323,745
2. Cash flow from investing activities
- Payments made for investments in tangible fixed assets	-1,308,475	-6,121,476
- Payments made for investments in intangible assets	-837	-7,073
+ 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	145,889
Cash flow from investing activities	-309,312	-6,982,660
3. Cash flow from financing activities
-/+Repayment of/Additions to long-term financing liabilities	-250,000	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
- Dividends paid	-2,235,000	0
Cash flow from financing activities	-2,485,000	8,510,874
Change in cash and cash equivalents	-301,425	3,851,959
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	3,086,271	8,427,848

Consolidated Statement of Equity

InVision AG, 30 June 2015 IFRS, in Euro (condensed/unaudited)

	Subscribed capital	Capital reserves	Legal profit reserves	Other profit reserves	Foreign exchange translation adjustments	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	30,180	904,157	934,337
Dividends paid	0	-2,235,000	0	0	0		0 -2,235,000
30 June 2015	2,235,000	5,798,743	78,989	1,193,560	-361,155	-1,791,251	7,153,880

Consolidated Notes

to the Consolidated Interim Financial Statements of InVision AG as of 30 June 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.

By decision of the Company's General Meeting as of 18 May 2015, and registration in the Commercial Register (Handelsregister) as of 23 June 2015, the Company has relocated its headquarters to 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 from 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)	6M 2015	6M 2014
Subscriptions	5,036	4,501
Projects	948	1,652
Total	5,984	6,153

6. 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.

7. Executive Board

The Executive Board is composed of the following members:

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

8. 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 2015, there was an average of 2,235,000 shares issued and outstanding. Earnings per share for this period were therefore EUR 0.40, compared to EUR 0.88 in the previous year, based on 2,181,735 shares issued.

9. 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, 25 August 2015

The Executive Board Peter Bollenbeck Armand Zohari

Interim Group Management Report

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

Results of operation

Consolidated revenues during the reporting period equalled TEUR 5,984 (previous year: TEUR 6,153) and therefore decreased by 3 percent. Revenues from subscriptions increased by 12 percent to TEUR 5,036 (previous year: TEUR 4,501). Project revenues decreased by 43 percent to TEUR 948 (previous year: TEUR 1,652).

The operating result (EBIT) decreased in the reporting period to TEUR 926 (previous year: TEUR 1,907). The EBIT margin in the reporting period was 15 percent (previous year: 31 percent).

In the reporting period, consolidated net profit equalled TEUR 904 (previous year: TEUR 1,921). Accordingly, earnings per share totalled EUR 0.40 with an average of 2,235,000 shares (previous year: EUR 0.88 with 2,181,735 shares).

Net assets and financial position

Cash flow from operating activities reached TEUR 2,493 in the reporting period (previous year: TEUR 2,324) and corresponds to a share of 42 percent of the Group revenues (previous year: 38 percent).

As of the end of the reporting period, the liquid funds (cash) went down to TEUR 3,350 (31 Dec 2014: TEUR 4,388).

The balance sheet total equalled TEUR 15,020 (31 Dec 2014: TEUR 15,239), as of the end of the reporting period. Equity capital is now at TEUR 7,154 (31 Dec 2014: TEUR 8,455), and the equity ratio equals 48 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, 25 August 2015

The Executive Board Peter Bollenbeck Armand Zohari