InVision AG

Quarterly Report • Nov 15, 2011

9M 2011 InVision Software AG

Overview

InVision Software was formed in 1995 with a mission to provide every company with the best possible solution to its workforce management issues. We have never lost sight of this goal and have since become one of the global leaders in workforce management solutions, frequently setting technological trends in this field.

By using our products and services, our international customers are able to optimise their staff deployment and increase productivity. At the same time, they reduce planning and administrative costs and significantly improve employee motivation. Thus, the use of our workforce management solutions generally pays for itself within a short period of time.

Additional information: www.invisionwfm.com

Highlights 9M 2011

Acquisition

Transformation of Business Model Cloud Computing

Awards

European Business Awards 2011 – Ruban D'Honneur

Call Centre Helper 2011 – Top 25 Contact Centre Technology

Customer Inter@ction Solutions – Product of the Year 2010

Financial Summary

Income (in TEUR)	9M 2011	9M 2010	∆
Revenues	8,952	10,735	-17%
Software & Subscriptions	6,806	7,847	-13%
Services	2,146	2,888	-26%
EBIT	-2,100	-187	abs. -1,913
as a % of revenues	-23%	-2%	-21PP
Consolidated result	-2,353	819	abs. -3,172
as a % of revenues	-26%	8%	-34PP
Earnings per share (in EUR)	-1.07	0.37	abs. -1.44

Balance sheet (in TEUR)	30 Sep 2011	31 Dec 2010	∆
Balance sheet total	13,054	16,305	-20%
Liquid funds	2,564	5,723	-55%
Equity	8,899	12,055	-26%
as a % of balance sheet total	68%	74%	-6 PP

Employees	30 Sep 2011	31 Dec 2010	∆
Number of employees	169	163	+4%
Domestic	74	76	-3%
Foreign	95	87	+9%
R&D	91	77	+18%
Sales & Marketing	33	26	+27%
Services	23	38	-39%
Miscellaneous	22	22	±0%

InVision share	9M 2011	2010	∆
Closing price, end of period	€13.07	€ 14.83	-12%
Year high	€ 18.00	€ 17.00	+6%
Year low	€ 13.00	€ 3.91	+232%
Market capitalisation, end of period	€ 29.21 m	€ 33.15 m	-12%
Number of shares	2,235,000	2,235,000	±0
Of which treasury shares	49,048	0	abs. +49,048

All information is XETRA price data

Consolidated Interim Financial Statements

of InVision Software AG as of 30 September 2011 in accordance with IFRS and § 315a of the German Commercial Code as well as the Interim Group Management Report pursuant to §315 of the German Commercial Code (condensed/unaudited)

Consolidated Balance Sheet 6
Consolidated Statement of Comprehensive Income 7
Consolidated Cash Flow Statement 8
Consolidated Statement of Equity 9
Consolidated Notes 10
Interim Group Management Report 12
Financial Calendar 14

Consolidated Balance Sheet

Assets (in EUR)	30 Sep 2011	31 Dec 2010
Short-term assets
Liquid funds	2,563,966	5,722,714
Reserves	19,490	0
Trade receivables	3,389,110	4,660,093
Income tax claims	76,665	65,777
Prepaid expenses and other short-term assets	434,001	294,259
Total short-term assets	6,483,231	10,742,843
Long-term assets
Intangible assets	1,280,656	119,348
Tangible assets	309,547	315,012
Financial assets	150,092	150,092
Deferred tax assets	4,788,120	4,933,936
Other long-term assets	41,992	44,190
Total long-term assets	6,570,407	5,562,578
Total assets	13,053,638	16,305,421
Equity and liabilities (in EUR)	30 Sep 2011	31 Dec 2010
Short-term liabilities
Short-term liabilities owed to financial institutions	301,230	291,488
Trade payables	188,796	567,338
Provisions	463,626	1,233,322
Income tax liabilities	1,520	33,792
Short-term share of deferred income and other short-term liabilities	3,020,175	2,079,005
Total short-term liabilities	3,975,346	4,204,945
Long-term liabilities
Deferred taxes	178,999	44,980
Total long-term liabilities	178,999	44,980
Equity
Subscribed capital	2,185,952	2,235,000
Capital reserves	20,640,839	20,616,179
Earnings reserves	635,295	1,414,177
Equity capital difference from currency translation	-586,136	-612,768
Losses carried forward	-11,481,658	-12,536,503
Group/consolidated result	-2,353,271	1,054,846
Minority shares	-141,728	-115,435
Total equity	8,899,293	12,055,496
Total equity and liabilities	13,053,638	16,305,421

Consolidated Statement of Comprehensive Income

in EUR	9M 2011	9M 2010
Revenues	8,951,932	10,735,497
Other operating income	50,392	674,904
Cost of materials/cost of goods and services purchased	-105,012	-30,528
Personnel expenses	-7,362,620	-7,799,920
Amortisation/depreciation of intangible and tangible assets	-162,869	-132.821
Other operating expenses	-3,471,749	-3,634,013
Operating result (EBIT)	-2,099,926	-186,881
Financial result	34,722	10,987
Currency losses/gains	-15,934	212,186
Result before taxes (EBT)	-2,081,148	36,292
Income tax	-298,417	769,739
Consolidated net profit/loss	-2,379,565	806,031
Minority shares	26,294	13,285
Consolidated result	-2,353,271	819,316

Consolidated Cash Flow Statement

in EUR	9M 2011	9M 2010
Group/consolidated result incl. minority shares	-2,353,271	819,316
Depreciation and amortisation of fixed assets	162,869	132,821
Decrease/increase in provisions	-769,696	-292,222
Decrease/increase in income tax liabilities	-32,272	-16,021
Decrease/increase in deferred taxes	279,835	-828,509
Other non-cash income	-1,473	-9,410
Decrease/increase in trade receivables and contract manufacturing	1,251,494	-1,456,537
Decrease/increase in other assets and prepaid expenses	-137,544	309,030
Decrease/increase in income tax claims	-10,887	249,362
Decrease/increase in trade payables	-378,542	-245,550
Decrease/increase in other liabilities and deferred income	607,910	-443,657
Cash flow from operating activities	-1,381,578	1,131,697
Investing activities
Payments made for investments in tangible assets	-151,103	-39,010
Payments made for investments in intangible assets	-832,539	-39,480
Payments made for purchasing securities	0	1,000,000
Income from the distribution of securities	0	-1,000,000
Cash flow from investing activities	-983,641	-78,490
Financing activities
Cash inflow from allocations to equity (issues of treasury shares)	328,500	0
Cash outflow to acquire treasury shares	-1,131,770	0
Cash flow from financing activities	-803.270	0
Change in cash and cash equivalents	-3,168,490	1,053,207
Cash and cash equivalents at the beginning of the period	5,431,225	3,502,300
Cash and cash equivalents at the end of the period	2,262,736	4,555,507

Consolidated Statement of Equity

in EUR	1 Jan 2010	Consolidated result 2010	31 Dec 2010	Consolidated result 9M 2011	30 Sep 2011
Subscribed capital	2,235,000	0	2,235,000	-49,048	2,185,952
Capital reserves	20,616,179	0	20,616,179	24,660	20,640,839
Statutory reserves	78,989	0	78,989	0	78,989
Other earnings reserves	1,335,188	0	1,335,188	-778,882	556,306
Equity capital difference from currency translation	-578,599	-34,170	-612,768	26,632	-586,136
Losses carried forward	-12,536,503	1,054,846	-11,481,658	-2,353,271	-13,834,929
Equity capital of the Company shareholders	11,150,254	1,020,677	12,170,931	-3,129,910	9,041,021
Minority shares	-70,115	-45,320	-115,435	-26,294	-141,728
Equity	11,080,139	975,357	12,055,495	-3,156,203	8,899,293

Consolidated Notes

to the Consolidated Interim Financial Statements of InVision Software AG as of 30 September 2011 (condensed/unaudited)

1. General information about the Company

The business activities of InVision Software Aktiengesellschaft, Ratingen (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 the development and sale of software-based products and services relating to workforce management. The InVision Group does business primarily in Europe and the United States.

The Company's registered offices are located at Halskestrasse 38, 40880 Ratingen, Germany. It is recorded in the Commercial Register of the Local Court of Düsseldorf under registration number HRB 44338. InVision Software 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. Change in the group of consolidated companies

The group of consolidated companies has not changed since 31 December of the previous fiscal year.

The affiliate company InVision Software, Inc. (Naperville, IL/USA) was renamed injixo, Inc.

4. Treasury shares

The Company holds 49,048 treasury shares.

5. Revenues

Revenues categorised according to business activities are as follows:

in TEUR	9M 2011	9M 2010
Software & Subscriptions	6,806	7,847
Services	2,146	2,888
Total	8,952	10,735

Revenues categorised according to regions are as follows:

in TEUR	9M 2011	9M 2010
Germany, Austria and Switzerland	4,635	5,519
Other foreign countries	4,317	5,216
Total	8,952	10,735

6. Transactions between related parties

Transactions involving goods and services between closely related enterprises and persons are generally executed at market prices. The following services were purchased from closely related enterprises and persons pursuant IAS 24:

in TEUR		9M 2011	9M 2010
eTimum Software GmbH	Consulting services	233	348
Total		233	348

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
• Mauro Marengo, Turin (Italy)
• Armand Zohari, Bochum, since 1 July 2011

9. Earnings per share

Earnings per share were calculated by dividing the periodic result, which is attributable to InVision Software AG's shareholders, by the average weighted number of shares issued and outstanding during the reporting period. InVision Software AG has issued only ordinary shares. In the first nine months of 2011, there was an average of 2,202,771 shares issued and outstanding. Earnings per share for this period were therefore EUR -1.07 compared to EUR 0.37 in the previous year, based on 2,235,000 shares issued.

10. Responsibility statement by the Executive Board

To the best of our knowledge and in accordance with the applicable reporting principles for interim 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.

Ratingen, 11 November 2011

Peter Bollenbeck Armand Zohari Mauro Marengo

Interim Group Management Report

of InVision Software AG as of 30 September 2011 (condensed/unaudited)

Specific events

On 25 March 2011, InVision announced that it will transition the core business model to cloud computing within the following 18 months.

On 14 April 2011, the Company acquired a total of 2.99% of the registered share capital through a repurchase of shares.

On 1 June 2011, InVision acquired the business of "The Call Center School", Nashville, USA.

As of 30 June 2011, Mr. Matthias Schroer withdrew from the Executive Board. The Supervisory Board appointed Mr. Armand Zohari to the Executive Board effective as of 1 July 2011.

Results of operation

Consolidated revenues during the reporting period equalled TEUR 8,952 (previous year: TEUR 10,735) and therefore decreased by 17 percent. Software & subscriptions revenues declined by 13 percent to TEUR 6,806 (previous year: TEUR 7,847). Service revenues decreased by 26 percent to TEUR 2,146 (previous year: TEUR 2,888).

Revenues in the region of Germany, Austria and Switzerland decreased by 16 percent to TEUR 4,635 (previous year: TEUR 5,519), which represents a share of 52 percent (previous year: 51 percent). Revenues generated in other foreign countries decreased to TEUR 4,317 (previous year: TEUR 5,216) and is therefore 17 percent lower than in the first nine months of 2010. Revenues from other foreign countries as a percentage of total revenues therefore equal 48 percent (previous year: 49 percent).

During the reporting period, the operating result (EBIT) was TEUR -2,100 (previous year: TEUR -187). The EBIT margin in the reporting period was -23 percent (previous year: -2 percent).

In the reporting period, consolidated net loss equalled TEUR -2,353 (previous year: net profit of EUR +819). Accordingly earnings per share totalled EUR -1.07 with an average of 2,202,771 shares (previous year: EUR +0.37 with 2,235,000 shares).

Net assets and financial position

Cash flow from operating activities reached TEUR -1,382 in the reporting period (previous year: TEUR +1,132) and corresponds to a share of -15 percent of the Group revenues (previous year: +11 percent).

As of the end of the reporting period, the liquid funds (cash and cash equivalents) went down to TEUR 2,564 (31 Dec 2010: TEUR 5,723). Financial liabilities increased by 3 percent to TEUR 301 (31 Dec 2010: TEUR 291).

The balance sheet total as of 30 September 2011 equalled TEUR 13,054 (31 Dec 2010: TEUR 16,305). Equity capital is now at TEUR 8,899 (31 Dec 2010: TEUR 12,055), and the equity ratio equals 68 percent (31 Dec 2010: 74 percent).

Opportunities & risks

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

Supplement Report

After the end of the reporting period, there were no specific events which would be of material importance to the interim financial statements.

Forecast Report

Since the future global macroeconomic development is not foreseeable, it is not possible to issue a forecast for the ongoing fiscal year that has any high probability of occurrence.

Ratingen, 11 November 2011

The Executive Board of InVision Software AG

Financial Calendar

Interim Report 9M 2011 15 November 2011

Analysts' Conference (German Equity Forum 2011, Frankfurt/Main, 21-23 November 2011) 23 November 2011

Investor Relations

InVision Software AG Halskestraße 38 40880 Ratingen Germany

phone: +49 (2102) 728-444 fax: +49 (2102) 728-111 www.invisionwfm.com/investors email: ir@invision.de