First Sensor AG — Interim / Quarterly Report 2013

Aug 29, 2013

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013

KEY FIGURES __________________ 3
FOREWORD BY THE MANAGEMENT BOARD _____________ 4
PERFORMANCE OF THE FIRST SENSOR SHARE ___________ 7
GROUP MANAGEMENT REPORT ____________ 8
Business model _______________ 8
Business development in H1 2013 _______________ 9
Outlook _______________ 10
CONSOLIDATED BALANCE SHEET (IFRS) - ASSETS ____________ 12
CONSOLIDATED BALANCE SHEET (IFRS) - LIABILITIES ________ 13
CONSOLIDATED INCOME STATEMENT (IFRS) ___________ 14
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) _________ 15
CONSOLIDATED STATEMENT OF CASH FLOW (IFRS) __________ 16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) ________ 17
ANNUAL FINANCIAL STATEMENTS (IFRS) ______________ 18
1. General _____________ 18
2. Consolidated interim financial report __________ 18
3. Basis of consolidation ___________ 18
4. Events after the balance sheet date __________ 18
RESPONSIBILITY STATEMENT (BALANCE SHEET OATH) ________ 19
LEAGAL NOTICE _____________ 20
FINANCIAL CALENDAR 2013______________ 20
INTERNET, INFORMATION, CONTACT ___________ 20

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 KEY FIGURES

in € thousand, unless otherwise specified	H1 2013	H1 2012	Δ	Δ %
Sales	53,403	56,219	-2,816	-5
Operating result (EBITDA)	6,161	6,895	-734	-11
Total net profit for the period*	2,371	2,353	18	1
Earnings per share (€)*	0.24	0.24	0.00	0
Number of shares (weighted)	9,940,273	9,842,973	97,300	1
Equity	70,458	69,721	737	1
Equity ratio (%)	46	43	3	7
R&D expenses	3,890	3,145	745	24
Number of employees (FTE)	686	689	-3	-0

* For purposes of better comparability adjusted by integration costs and PPA-amortization expenses; excluding non-recurring effect of the sale of Heimann Sensor GmbH (Q1 2012)

FIRST SENSOR AG CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013

FOREWORD BY THE MANAGEMENT BOARD

First Sensor is continuing on its path to becoming an integrated provider of customerspecific sensor solutions. Change in Management Board as basis for forthcoming international growth

Necessary change: Substantial growth over two decades – magnitude poses new demands

Dear shareholders and business partners, Dear employees,

Since going public in 1999, First Sensor has developed from sales of around €3 million to one of the top ten players in its market, with sales of €112 million in 2012. The magnitude and complexity we have achieved means that a change in management from a company with independent divisions to an integrated company is necessary in order to allow us to reinforce our position and continue to grow in an international environment.

On June 17, 2013, the CEO of many years' standing, Dr. Hans-Georg Giering, handed over the management of First Sensor to Dr. Martin U. Schefter, who will focus on international growth as well as further integration.

The new CEO, Dr. Schefter, most recently held the position of Managing Director at EATON Industries Holding, where he initially integrated the Industrial Control Devices division of Moeller GmbH into EATON Holding before establishing the Industrial Automation division. In a career spanning around 22 years, Dr. Schefter has had responsibility for the establishment, further development, growth and integration of technology companies in various top management positions and has assisted in these processes as a management consultant.

Operational challenge: the year 2013

In the second quarter, First Sensor was unable to compensate for the muted start to the year in the first quarter in terms of its sales performance. Nevertheless, sales increased by an encouraging 5% in Q2 compared with the previous quarter. All in all, First Sensor fell below its original sales forecast for the first half of the year. The reasons included the deterioration in the economy as a whole, which was reflected in customers postponing call-ups to subsequent quarters, as well as the delayed marketing in-house products in one division.

One positive development in the first half of the year was the impact of the improvement measures that have already been initiated. Compared with the same period of the previous year:

• ^∎ net profit for the period after PPA amortization and normalization remained at the prior-year level despite the slight downturn in sales,
• ^∎ orders on hand increased by 11.4% to around €78.8 million,
• ^∎ Other operating expenses fell by 18% to €6.4 million,
• ^∎ the adjusted EBITDA ratio rose to 13%,
• ^∎ the equity ratio increased for the third successive quarter to the current level of 46%, and
• ^∎ the available liquidity improved to €14.8 million.

For the second half of the year, the Management Board expects to see a slightly higher level of sales than in the first six months as a result of the productive launch of new projects and the acceleration of the additional marketing process using in-house products.

The Management Board now expects total sales of between €108 million and €112 million (formerly: €110 million - €120 million). Consolidated EBITDA before integration costs is expected to be between €13.5 million and €15 million (formerly: €15 million - €20 million). The revised planning has no effect on the existing financing of the company.

Strategic outlook: clear orientation for the future

First Sensor's new Management Board and management team have a clear view of the company's orientation. The main points are as follows:

• ^∎ Leading global specialist on the market for sensor technology: First Sensor will become a leading global specialist on the market for sensor technology. The prospects are good. The company has established a unique expertise base in the relevant areas of technology over recent years thanks to its own employees and acquisitions of additional companies. Today, First Sensor can boast highly specialized development and manufacturing knowhow.
• ^∎ Innovative strength, market focus and efficiency: For more than 20 years, First Sensor has been developing and producing customized sensor solutions that meet the highest standards in terms of precision and reliability. Its strong growth has given the company an international profile. The next stage in First Sensor's development now requires the company to successfully make the most of this position from an economic perspective. The aim is to coordinate product development across all divisions and systematically focus on customer requirements in order to ensure successful product sales. Marketing and distribution will be just as important to the company's future success as technological expertise in development and manufacturing. First Sensor will work together as one company and leverage synergy potential on a Group-wide basis.
• ^∎ Investing in the future: Many future-oriented investments in technology and infrastructure were made in the past. To ensure the company's future viability, it will now focus on achieving the profitability that will allow it to continue to invest: in research and development, marketing, and distribution. The first rational steps have already been taken, but more must follow.
• ^∎ Seizing market opportunities: The market for sensor technology is growing by an average of 8-10% every year. The aim of the Management Board is to achieve organic growth that at least keeps pace with the development of the market in future, recording strong earnings in the process. First Sensor occupies relevant niches and can boast particular strengths in this future-oriented market. First Sensor can tailor its products precisely to its customers' requirements and manufacture them with a high level of quality. The company's expertise and range extends from chips and modules to entire systems represented in Europe, the USA and Asia. This is an excellent starting position that the company will make use of to a greater extent in future. The aim is to actively address all attractive markets in future and sell products throughout the world.
• ^∎ Remaining internationally competitive through standards in internal cooperation: We will continue on the path we have already adopted: systematic shared standards for cooperation within First Sensor will be defined and introduced in all divisions.
• ^∎ Thorough planning, systematic and transparent actions: Over the coming months, the Management Board and management team will jointly develop the strategy for improving First Sensor's growth and earnings. The guiding principle: encouraging and financing the things that bring us forward, investigating and remediating the things that hold us back or that lead to unnecessary costs. The steps required for implementation will then be determined.

While adopting this – in some cases new – orientation, we will also continue to press ahead with our current projects. Important operational decisions are being taken and good opportunities are being seized. Examples include the commissioning of the 6-inch production facility, the investment planning that has been introduced throughout First Sensor AG, and the projects for procurement pricing and optimization. These represent major steps towards economic and transparent cooperation within First Sensor, and hence serve as visible signs of the "One First Sensor" ethos.

Outlook

The year 2013 is a milestone in the development of First Sensor. Our focus is shifting from acquisitions to integration, from independent actions to a joint presence, and from European to global business.

Depending on the respective focal point, these changes will take a different amount of time to come into full effect. However, we expect to be seeing the first fruits as early as next year.

We are confident in our ability to successfully shape this change process together with our employees, our customers and suppliers, and our banks and shareholders.

We hope to enjoy your continued support along the way.

Kind regards, The Management Board

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

FIRST SE CONSOL PERFORMA ENSOR A LIDATED ANCE OF T AG D INTERIM THE FIRST S M FINAN SENSOR SH NCIAL RE HARE EPORT AS AT JUN NE 30, 20 13

First Sensor ISIN: DE000 WKN (Germa Symbol: SIS r AG 7201907 an securities identificatio on code): 720 0190

First Sensor r share and T TecDax devel opment from m January 1, 2 013 to June 30, 2013

FIRST SENSOR AG CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 GROUP MANAGEMENT REPORT

BUSINESS MODEL

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, temperature, moisture, etc.) into electric variables that are then used in our customers' electronic systems. This means that our sensor solutions make an important contribution to the competitiveness of our customers' products. Our core competencies include solutions in the area of optoelectronics and MEMS sensor technology.

Customers include prominent industrial groups and research institutes. A project generally starts with the customer issuing the specifications and the joint preparation of a development strategy. Following an extensive development and test phase, a supply relationship is initiated that generally lasts for a number of years.

First Sensor's sensor solutions are mostly used as key components in a wide range of applications in several different industries. These include electronic folding rules, tank pressure and sun angle sensors for motor vehicles, fill level measurements in the food industry, air conditioning systems, blood glucose monitors, X-ray machines for baggage screening, machine controls, aerospace research, cancer diagnosis, truck toll monitoring, and measurement systems for the pharmaceutical and environmental technology industries. The broad mix of sectors means that First Sensor is generally independent of cyclical developments in the individual sectors. The market for high-end sensor solutions that we address remains a strong global growth market.

First Sensor is one of the world's technology leaders, developing and producing optoelectronic and MEMS-based high-end sensor solutions for the

most stringent specifications. Among other things, this includes the avalanche photodiodes (APD) and avalanche photodiode arrays developed and manufactured by First Sensor in the past, which enjoy a leading global position in their field. One use for these APDs is in high-precision distance measurement systems for a wide range of applications together with laser modules.

First Sensor develops and produces sensor solutions across the individual stages of the value chain of sensor to the system of our customers. The individual companies of First Sensor are active along the entire value chain. In addition to sensor components, First Sensor develops and manufactures highly reliable customer-specific hybrid circuits and products in the areas of microsystems technology and advanced packaging (sensor modules) right through to complete sensor systems. The different locations in Berlin, Dresden, Oberdischingen, Munich, and the foreign locations in the Netherlands, the UK, Sweden, Singapore, Canada and the US vary in terms of their position along the value chain (including distribution). Several Group companies are often involved in processing a customer order.

Sensor components are developed and manufactured at the headquarters in Berlin. If the sensor component is later connected to a circuit together with other electronic components and switching circuits (layout and connection technology, hybrid technology, microsystems technology), this creates a sensor module. These process steps take place at five locations within First Sensor: Berlin, Dresden, Oberdischingen, Westlake Village and Singapore. If the sensor module is supplemented with additional stages of the value chain such as signal processing, calibration and product design, this creates a sensor system. This stage of the value chain is implemented at four locations in Berlin, Dresden, Dwingeloo and Munich.

With this positioning and interaction of the individual locations, First Sensor covers the entire value chain for a specialized sensor solution and is therefore able both to offer its customers "everything from one source" and also to take on individual steps of the value chain. The specific customer requirements in each case stipulate the stage of the value chain at which our services are called upon. Depending on cost effectiveness, some types of components and services are also purchased externally. Partial orders are allocated to the individual locations centrally.

BUSINESS DEVELOPMENT IN H1 2013

In the first half of 2013, the First Sensor Group recorded sales of €53.4 million (June 30, 2012: €56.2 million), down 5% compared with the same period of the previous year. The main reasons for this development were the deterioration in the economy as a whole, which was reflected in customers postponing call-ups to subsequent quarters, as well as the delayed additional marketing with in-house products in one division. Sales in the second quarter of 2013 were €1.2 million or 5% higher than in the first quarter of the year.

Despite the downturn in sales, the net profit for the period (adjusted for integration costs, PPA amortization and the non-recurring effect from the sale of the minority interest in Heimann Sensor GmbH) remained unchanged year-on-year at €2.4 million.

Orders on hand increased by 11.4%, from €70.8 million as of June 30, 2012 to €78.8 million at the reporting date.

Gross income for 2012 included extraordinary income from the sale of Heimann Sensor GmbH in the amount of €0.5 million. Adjusted for this effect, gross income fell by 6% from €32.0 million in the first half of 2012 to €30.1 million in the period under review. At the same time, the gross profit margin improved from 52 % to 54 %.

Despite non-recurring effects (€0.3 million), staff costs declined by 2% year-on-year to €17.5 million in the period under review (June 30, 2012: €17.9

million), while other operating expenses were reduced by 18% to €6.4 million (June 30, 2012: €7.8 million). These positive effects were achieved as a result of the cost-cutting measures forming part of the "ONE FIRST SENSOR" consolidation program, which will take effect in the current financial year. This served to partially offset the impact on earnings resulting from lower sales.

This meant that EBITDA of €6.2 million was achieved in the first half of 2013 (June 30, 2012: €6.9 million). EBITDA before non-recurring effects was almost identical to the same period of the previous year, , while the EBITDA ratio increased to 13%.

The financial result, which primarily includes interest for acquisition finance and interest for investment loans, amounted to €-1.4 million (June 30, 2012: €-1.1 million). This development was primarily due to the currency differences of €-0.1 million contained in the financial result in the period under review (June 30, 2012: €0.2 million).

The total net profit for the period after taxes amounted to €0.5 million (June 30, 2012: €0.8 million). Earnings per First Sensor share amounted to €0.05 in the first half of 2012 (H1 2012: €0.08 per share). Adjusted for integration costs and PPA amortization in both years as well as the sale of Heimann Sensor GmbH in 2012, earnings per share was unchanged year-on-year at €0.24.

Group equity amounted to €70.5 million, resulting in an increase in the equity ratio from 43% (June 30, 2012) to 46%.

Cash and cash equivalents increased significantly year-on-year to €14.8 million (June 30, 2012: €9.4 million); this was primarily due to the short-term conversion of trade receivables into cash and cash equivalents in individual cases.

In light of the planned further growth, the company will continue to focus on measures aimed at securing liquidity in the coming quarters. The main objective in the near future will be to achieve a further improvement in First Sensor's profitability, as financial stability is particularly important for our customers when it comes to choosing their service provider, as development and production processes extend over a number of years.

Trade receivables decreased by €6.9 million compared with the previous quarter to €6.6 million as a result of the sales development and short-term conversion into cash and cash equivalents. Inventories fell by €0.3 million to €29.2 million.

At €7.1 million, accounts payable were down €0.9 million on the previous quarter.

Financial liabilities assumed primarily to finance the acquisition of the Sensortechnics Group amounted to €52.1 million at the reporting date (June 30, 2012: €53.2 million).

In an encouraging development, the cash flow from operating activities amounted to €7.0 million in the first half of 2013, €6.8 million higher than as of June 30, 2012 despite weaker sales on the whole. The systematic reduction in working capital of €8.5 million was a key factor in the increased cash flow compared with the first half of 2012.

Repayments of loans (excluding working capital loans) in the amount of €4.5 million were offset by new borrowings of €5.6 million, resulting in a cash flow from financing activities after minority interests of €1.2 million (June 30, 2012: €6.6 million).

The Group had a total of 686 employees (FTEs) as of June 30, 2013 (June 30, 2012: 689 employees).

OUTLOOK

Through the acquisition of the Augusta Technologies AG sensor division, First Sensor AG has strengthened its position as an innovative, globally operating manufacturer of specialized sensors. The available opportunities will be systematically leveraged and implemented over the coming quarters. The objectives and focal points will be:

• ^∎ Expanding our position as a leading global specialist on the market for sensor technology through the systematic utilization of our highly specialized development and manufacturing expertise,
• ^∎ Improving our innovative strength, market focus and efficiency by systematically gearing product development towards customer requirements

and leveraging synergy potential on a Group-wide basis,

• ^∎ Making further investments in the future while prioritizing profitability as a means of safeguarding the company's future,
• ^∎ Consistently and systematically identifying and addressing market opportunities,
• ^∎ Ensuring international competitiveness through standardization within the Group,
• ^∎ Thorough planning, systematic and transparent actions.

These measures and the optimization of the corporate, management and controlling structures are the key areas of management activity in 2013 and beyond.

In addition, by achieving a critical mass and increasing the degree of value added in the development and production of sensor solutions, First Sensor will be of interest to additional customer groups, particularly with regard to awarding major long-term contracts of global affiliated groups.

In the first half of the year, the sensor market did not see a significant upturn following the muted macroeconomic development observed in recent quarters. Our confidence that First Sensor would be able to buck the general market trend due to new production starts has not been fully realized. This is primarily attributable to the unexpected weakness of growth in the sensor division acquired in 2011 from Augusta Technologies AG, whose companies have been affected by major deferred sales and, in some cases, delays in the substitution of third-party products with in-house products in the subsequent years. At the same time, we are now seeing trends of restrained call-up behavior on the part of our customers in the wake of the failure of the economy to pick up. The consequences for us cannot be currently estimated in full.

For the second half of the year, the Management Board expects to see a slightly higher level of sales than in the first six months as a result of the productive launch of new projects and increased sales of in-house products.

The Management Board now expects total sales of between €108 million and €112 million (formerly: €110 million - €120 million). Consolidated EBITDA before integration costs is expected to be between €13.5 million and €15 million (formerly: €15 million - €20 million). The revised planning has no effect on the existing financing of the company.

The company will continue to aim to achieve a high level of sales growth in the coming years. We are maintaining our target of an EBITDA margin of over 15% in the medium term.

The successful integration of all of the divisions and the generation of economies of scale from the investments made in recent financial years will be decisive for the optimization of margins.

These are ambitious goals, but we are confident that we will be able to achieve them provided the general economic environment and the situation of the banks do not deteriorate significantly as a result of the euro crisis.

Berlin, August 2013

First Sensor AG

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 CONSOLIDATED BALANCE SHEET (IFRS) - ASSETS

in € thousand, unless otherwise specified	June 30, 2013	Dec. 31, 2012
Cash and cash equivalents	14,827	12,201
Accounts receivable	6,610	12,840
Inventories	29,247	31,150
Tax refund claims	907	482
Other current assets	3,989	2,485
Total current assets	55,580	59,158
Property, plant and equipment	38,478	40,027
Intangible assets	27,139	28,751
Securities in fixed assets	65	59
Goodwill	29,816	29,816
Deferred tax assets	673	762
Other non-current assets	22	22
Total non-current assets	96,193	99,437
TOTAL ASSETS	151,773	158,595

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 CONSOLIDATED BALANCE SHEET (IFRS) - LIABILITIES

in € thousand, unless otherwise specified	June 30, 2013	Dec. 31, 2012
Current loans	11,485	12,189
Accounts payable	7,054	7,679
Advances from customers	1,202	1,055
Provisions	597	581
Liabilities from income tax	1,546	1,688
Other current liabilities	5,546	12,410
Total current liabilities	27,430	35,602
Non-current interest-bearing loans	40,588	39,014
Provisions	513	469
Deferred taxes	6,691	7,171
Deferred investment grants/ allowances	5,899	6,397
Total non-current liabilities	53,691	53,051
Minority interests	194	125
Subscribed capital	49,701	49,701
Reserves	16,144	15,908
Exchange equalization items	-375	-329
Net profit	4,988	4,537
Total equity	70,458	69,817
TOTAL EQUITY AND LIABILITIES	151,773	158,595

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 CONSOLIDATED INCOME STATEMENT (IFRS)

	Jan. 1 -	Jan. 1 -	April 1 -	April 1 -
in € thousand, unless otherwise specified	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Sales	53,403	56,219	27,295	27,732
Other operating income	1,559	2,528	912	1,446
Change in inventories of finished goods and work in progress	-1,393	1,157	-370	425
Other own work capitalized	368	803	15	549
Costs of materials/ purchased services	-23,874	-28,147	-12,377	-14,337
Personnel expenses	-17,519	-17,894	-9,021	-8,780
Other operating expenses	-6,383	-7,771	-3,576	-3,963
OPERATING RESULT (EBITDA)	6,161	6,895	2,878	3,072
Depreciation of property, plant and equipment and amortization of
intangible assets	-4,389	-4,503	-2,188	-2,322
EARNINGS BEFORE INTEREST AND TAX (EBIT)	1,772	2,392	690	750
Income from equity investments	0	8	0	0
Interest income	17	62	7	49
Interest expenses	-1,328	-1,331	-724	-720
Currency gains	116	352	84	265
Currency losses	-210	-165	-79	-67
PRE-TAX INCOME AND MINORITY INTERESTS	367	1,318	-22	277
Taxes on income	153	-508	104	-163
NET PROFIT/ LOSS FOR THE PERIOD	520	810	82	114
Net profit for the period attributable to First Sensor AG shareholders	451	786	20	111
Net profit for the period attributable to minority interests	69	24	62	3
Earnings per share (€)	0.05	0.08	0.01	0.01
Number of shares applied in the calculation of basic earnings per
share (thousand)	9,940	9,843	9,940	9,843
Diluted earnings per share (€)	0.05	0.08	0.01	0.01
Number of shares applied in the calculation of diluted earnings per
share (thousand)	9,958	9,914	9,959	9,930

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)

	Jan. 1 -	Jan. 1 -	April 1 -	April 1 -
in € thousand, unless otherwise specified	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
NET PROFIT/ LOSS FOR THE PERIODE	520	810	82	114
Actuarial gains and losses on defined benefit plans	0	0	0	0
Share of other comprehensive income attributable to investments in
companies recognized using the equity method	0	0	0	0
Taxes on changes in value recognized directly in equity	0	0	0	0
Items not subsequently reclassified to the income statement	0	0	0	0
Changes from currency translation	-46	-84	-33	28
Remeasurement of derivative financial instruments	300	-276	173	-182
Taxes on changes in value recognized directly in equity	-90	83	-52	55
Items that can be subsequently reclassified to the income statement	164	-277	88	-99
Other comprehensive income	164	-277	88	-99
TOTAL NET PROFIT FOR THE PERIOD	684	533	170	15
Net profit for the period attributable to First Sensor AG shareholders	615	509	107	12
Net profit for the period attributable to minority interests	69	24	63	3

FIRST SENSOR AG CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 CONSOLIDATED STATEMENT OF CASH FLOW (IFRS)

	Jan. 1 -	Jan. 1 –
in € thousand, unless otherwise specified	June 30, 2013	June 30, 2012
Pre-tax income	298	1,294
Adjustments to reconcile operating result with cash flow from operating activities:
Depreciation of property, plant and equipment and amortization of intangible assets	4,389	4,503
Other non-cash expenses/ income	26	73
Income from investment grants	-273	-247
Loss on asset disposal	29	490
Interest income	-18	-62
Interest expense	1,328	1,331
Interest from asset disposal	-20	0
Increase/ Decrease in provisions	59	-257
Increase/ Decrease in inventories, accounts receivable and other assets not assigned to investment/financing activities	6,056	-3,929
Increase/ Decrease in accounts payable and other liabilities not assigned to investment/financing activities	-2,861	-1,563
Interest paid	-1,328	-1,331
Income tax paid	-272	-369
Other profit/losses	-410	259
Cash flow from operating activities	7,003	192
Payments for investments in property, plant and equipment and intangible assets	-1,315	-6,565
Payments for investments in affiliated companies	0	84
Payments for acquisition of subsidiaries less cash acquired	-4,750	-5,000
Receipts from disposal of property, plant and equipment and intangible assets	570	581
Payments for acquisition of other financial assets	-6	-6
Receipts from investment grants	185	-5
Interest received	18	62
Cash flow from investment activities	-5,298	-10,849
Receipts from appropriations to equity	69	0
Repayments of financial liabilities	-4,483	-5,664
Proceeds from borrowings	5,567	12,267
Cash flow from financing activities	1,153	6,603
Currency differences from converting funds	-170	176
Net change in cash and cash equivalents	2,688	-3,878
CASH AND CASH EQUIVALENTS AT THE START OF THE FINANCIAL YEAR	9,467	10,305
CASH AND CASH EQUIVALENTS AT THE REPORTING DATE (JUNE 30) FOLLOWING DEDUCTION OF CURRENT ACCOUNT UTILIZATION	12,155	6,428
Current account utilization as at the balance sheet date	2,672	2,969
CASH AND CASH EQUIVALENTS AT THE REPORTING DATE (JUNE 30) WITHOUT DEDUCTION OF CURRENT ACCOUNT UTILIZATION	14,827	9,397

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)

in € thousand, unless otherwise specified	Number of shares (in thousand)	Subscribed capital	Share premium	Revenue reserves	Unrealized profit/ loss	Consoli dated balance sheet profit/ loss	Exchange equalization items	Equity attributable to First Sensor AG shareholders	Minority interest	Total equity
As at Jan. 1, 2012	9,843	49,215	15,717	-249	-436	5,083	-289	69,041	91	69,132
Net profit/ loss for the period						786		786	24	810
Result shown directly as equity, total					-193		13	-180		-180
Total net profit for the period	0	0	0	0	-193	786	13	606	24	630
Share-based remuneration				73				73		73
As at June 30, 2012	9,843	49,215	15,717	-176	-629	5,870	-276	69,721	115	69,835

As at Jan. 1, 2013	9,940	49,701	15,799	901	-791	4,537	-329	69,817	125	69,942
Net profit/ loss for the period						451		451	69	520
Result shown directly as equity, total					210		-46	164		164
Total net profit for the period	0	0	0	0	210	451	-46	615	69	684
Share-based remuneration				26				26		26
Appropriation of balance sheet profit										0
As at June 30, 2013	9,940	49,701	15,799	927	-581	4,988	-375	70,458	194	70,652

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013 ANNUAL FINANCIAL STATEMENTS (IFRS)

1. GENERAL

First Sensor AG, Berlin, is a listed stock corporation domiciled in Berlin.

First Sensor AG, Berlin, ("the company" or "First Sensor") and its subsidiaries 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 MEMS-based semiconductor sensors and systems. In addition, the First Sensor Group develops and manufactures highly reliable customer-specific hybrid circuits and products in the areas of microsystems technology and advanced packaging.

2. CONSOLIDATED INTERIM FINANCIAL REPORT

In the period under review, the accounting policies described in the consolidated financial report for 2012 were expanded to include the accounting standards endorsed by the EU and required to be applied from January 1, 2013. The changes primarily relate to IAS 1 "Presentation of the consolidated statement of comprehensive income". According to the revised standard, the items of other comprehensive income must be presented separately, broken down into items that are not subsequently reclassified to the income statement and items that can be subsequently reclassified to the income statement. In addition, the corresponding tax effects must be allocated to these two groups. The company has adjusted the presentation of the consolidated statement of comprehensive income in the consolidated interim financial report to reflect the revised standard. The other changes to IAS 1 did not affect the presentation of the company's net assets, financial position and results of operations.

The requirements of the German Securities Trading Act (WpHG) were also applied.

All of the information in this consolidated interim financial report is unaudited. This means the information has been subject neither to any audit nor to any review by an independent auditor.

The reporting currency is the euro (€); unless otherwise indicated, all amounts are presented in thousands of euro (€ thousand).

3. BASIS OF CONSOLIDATION

The basis of consolidation is unchanged compared to the previous year.

With an agreement dated April 17, 2013, Elbau Elektronik Bauelemente GmbH Berlin, Berlin, were merged with First Sensor AG with effect from January 1, 2013.

The merger has no significant effects on the consolidated interim financial report as of June 30, 2013.

4. EVENTS AFTER THE BALANCE SHEET DATE

There were no material events after the balance sheet date.

RESPONSIBILITY STATEMENT (BALANCE SHEET OATH)

To the best of our knowledge, and in accordance with the applicable reporting principles for interim reporting, the consolidated interim financial statements give a true and for view of the net assets, financial position and results of operations of the Group, and the interim financial report of the Group 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 over the remainder of the financial year.

Berlin, August 2013

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

FIRST SENSOR AG CONSOLIDATED INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013

LEAGAL NOTICE

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 interim financial report were produced on the basis of a probability-based plan and represent statements regarding the future which cannot be guaranteed.

FINANCIAL CALENDAR 2013

Date	Topic	Location
2013-05-30	Publication of consolidated interim financial report as at March 31, 2013
2013-08-20	General meeting	Penta Hotel Berlin Köpenick, Grünauer Str. 1, 12557 Berlin
2013-08-29	Publication of consolidated interim financial report as at June 30, 2013
2013-11-11 – 2013-11-13	Analysts' conference / German Equity Capital Forum 2013	Congress Center at Messe Frankfurt, Frankfurt am Main
2013-11-28	Publication of consolidated interim financial report as at September 30, 2013

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/en/investor-relations/termine.

INTERNET, INFORMATION, CONTACT

This consolidated interim financial report as at June 30, 2013 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/en/investor-relations

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