First Sensor AG — Interim / Quarterly Report 2019

Nov 14, 2019

SENSING INNOVATIONS

Q3 INTERIM REPORT 2019 NOVEMBER 14, 2019

Q3 sales surpassed good performance of the previous year's quarter

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 39.9 40.8 40 41.4 39.9 41.6 34.5

Total sales in € million Comments

Quarterly sales up 2.0% on the quarter of the previous year

Around two-thirds of sales were generated with customer-specific sensor solutions

Q3 INTERIM REPORT 2019 Sales after nine months still in line with expectations

Comments

Growth of EUR 7.7 million or 6.7% compared with the same period of the previous year

Sales development benefits from Industrial and Mobility markets

INDUSTRIAL MEDICAL MOBILITY

in € million Comments

Industrial: +5.1%; continued demand for pressure sensors and optical sensor chips in Asia

Medical: -6.6% compared to the previous year but +6.3% for the 9 months period driven by demand for Medical Imaging

Mobility: +3.8%; supported by OEM pressure sensors and the expansion of the camera business

Above average growth in Asia and North America

Sales share in %

Comments

Sales contributions from Asia and North America driven by demand for photonics and pressure

Europe's and DACH region's sales shares decreased slightly as a result of stronger footprint in overseas markets

11.8 % Growth based on expanded business with our key customers and the winning of new contracts

10.1 %

DACH

Asia

Rest of Europe

North America Rest of the World

47.9%

Q3 INTERIM REPORT 2019 Profitability for Q3 2019 in line with sales development

Comments

10.0 % 12.0 % Operating EBIT margin after 9 months with 8.2%* slightly below the target range and 9.3% above the previous year

11.8 % *EBIT Q2/Q3 adjusted for transaction costs and accruals in connection with the planned combination with TE Connectivity Sensors Germany Holding AG

Balance sheet increased to €178.8 million mainly due to IFRS 16

Comments Cash 31.12.2018: €28.5 million 30.09.2019: €30.1 million

Net Working Capital 31.12.2018: €37.3 million 30.09.2019: €38.2 million

Equity Ratio 31.12.2018: 52.7% 30.09.2019: 50.2%

Net Debt 31.12.2018: €19.5 million 30.09.2019: €17.6 million

Q3 INTERIM REPORT 2019 Significant improvement of cash flow

Q3 INTERIM REPORT 2019 Guidance 2019 will be achieved at the lower end of the range*

* Subject to no further deterioration in the economic situation

www.first-sensor.com | 9

Opportunities and risks for sales and profitability

	Sales	Profitability
s e ti ni u t r o p p O	 Global market for optical and pressure sensors with average growth rate approx. 7-8% to 2022  First Sensor as leading supplier of APDs for industrial and mobility LiDAR applications  €98.3 million backlog; 1/3 scheduled for 2019	 Economies of Scale based on our strategy of profitable growth  Rising sales with value-add products  Continuous measures to improve operational excellence
s k s Ri	 Further worsening of global economic outlook due to persisting geo-political and trade-related tensions between major economies  Reluctant buying behavior of major customers triggered by economic insecurities sets back growth ambitions	 Turnover-based decrease in economies of scale and profitability  Reluctant buying behavior and inventory correc tions of major customers in current economic situation  Increases in wages and salaries

71,87% of all First Sensor shares have been tendered

Date	Status
July 8	Offer publication / First merger control clearance (Germany)
July 16	Merger control clearance Austria
18. Juli	Joint reasoned statement by Executive Board & Supervisory Board FIS AG
July 22	Merger control clearance Hungary
July 30	Foreign investment approval France
August 6	Statement of the General Works Council FIS AG
September 2	End of the first acceptance period
September 19	End of the additional acceptance period
September 29	Foreign trade approval United States - DDTC
Mid-2020 at the latest	Completion of the offer

SENSING INNOVATIONS

Q3 Interim Report 2019

November 14, 2019

First Sensor AG prepares its interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). However, this report was not prepared in accordance with IAS 34 "Interim Financial Reporting" and has been neither audited nor subjected to any other formal audit examination. In addition to the key figures according to IFRS, key figures adjusted for transaction costs and provisions in connection with the planned combination with TE Connectivity Sensors Germany AG are shown for the presentation of earnings. In the presentation, rounding differences to the mathematically exact values may occur. This report contains statements of a predictive nature. All future-oriented specifications in this consolidated financial report were produced on the basis of a probability-based plan and represent statements regarding the future which cannot be guaranteed.

First Sensor AG, Investor Relations T +49 30 63 99 23 760 E ir@first-sensor.com