InTiCa Systems AG

Earnings Release • Aug 21, 2013

Interim Report H1

InTiCa Systems keeps staying on a winning track in H1 2013

Technologies for growth markets!

H1 2013 in figures

The Group	Q2 2012 EUR ´000	Q2 2013 EUR ´000	H1 2012 EUR ´000	H1 2013 EUR ´000	Change vs. H1 2012
Sales	9,134	9,689	18,006	19,540	+8.5%
Net margin (net result for the period)	0.3%	2.3%	0.5%	1.8%	-
EBITDA	1,155	1,618	2,474	3,029	+22.4%
EBIT	55	419	311	699	+124.8%
EBT	-64	298	61	463	+659.0%
Net loss for the period	30	219	93	358	+285.0%
Earnings per share (diluted/basic in EUR)	0.01	0.05	0.02	0.08	+285.0%
Total cash flow	152	-98	1,219	-1,969	-
Net cash flow for operating activities	1,003	726	1,468	81	-94.5%
Capital expenditure	715	685	1,389	1,645	+18.4%

	Jun 30, 2012 EUR ´000	Dec 31, 2012 EUR ´000	Jun 30, 2013 EUR ´000	Change vs. Dec 31, 2012
Total assets	35,047	33,431	35,259	+5.5%
Equity	19,631	19,531	19,546	+0.1%
Equity ratio	56%	58%	55%	-
Number of employees (on the reporting date)	417	434	430	-0.9%

The Stock	H1 2012	2012	H1 2013
Closing price (in EUR)	3.07	3.02	3.36
Period high (in EUR)	3.75	3.75	3.45
Period low (in EUR)	2.65	2.47	2.80
Market capitalisation at end of period (in EUR million)	13.16	12.95	14.40
Number of shares	4,287,000	4,287,000	4,287,000

The stock prices are closing prices on XETRA.

Contents

InTiCa Systems in the First Six Months of 2013	4
Foreword by the Board of Directors	4
Interim Management Report of the Group	6
General Economic Conditions	6
InTiCa Systems Stock	7
Earnings, Asset and Financial Position	9
Risks and Opportunities	11
Events After the End of the Reporting Period	11
Outlook	11

Consolidated Interim Financial Statements

H1 2013	13
Consolidated Balance Sheet	14
Consolidated Statement of P&L and Comprehensive Income	16
Consolidated Cash Flow Statement	17
Consolidated Statement of Changes in Equity	18

Notes to the Consolidated Interim

Financial Statements	19
Segment Report	20
Other Information	21
Responsibility Statement	23
Financial Calendar	24

Foreword by the Board of Directors

Dear shareholders, employees and business associates,

The first half of 2013 was a successful period for InTiCa Systems AG in spite of the market uncertainty resulting from the ongoing euro crisis. Although prospects for the important Automotive Technology and Industrial Technology segments were affected by the general deterioration in the economic situation in Germany, we grew both sales and earnings considerably compared with the first six months of last year. While Group sales increased 8.5 percent to EUR 19.5 million, EBIT more than doubled to around EUR 0.7 million, giving an EBIT margin of 3.6 percent, above the target of 3.0 percent. Net profit for the period was also far higher at EUR 0.4 million in the first six months of 2013.

The most important segment is still Automotive Technology, which grew 17 percent in the first six months and strengthened its share of sales of over 50 percent of the total. Our progressive shift from a components supplier to a solutions provider is increasingly paying off. Our products are now used in more than 250 models produced by 19 automobile manufacturers. In addition, the Industrial Electronics segment returned to profit, even though sales shrank by nearly 10 percent due to the difficult situation faced by customers in the solar industry. The situation in the Communication Technology segment was quite different: as in the first six months of 2012, although sales grew by 25 percent the operating profit was slightly negative.

The positive overall trend was clouded by mounting challenges in some areas of business. For instance, in the first six months of 2013 the German automotive market was weaker than expected. New registrations declined considerably as customers put off purchasing new cars in the wake of the euro crisis. In the Communications Technology segment, tougher competition from Asia put pressure on prices and margins. The implications can be seen from the current situation in the solar market, which is important for the Industrial Electronics segment. In this sector, many suppliers are fighting for survival.

In order to continue to grow successfully in these difficult conditions we are systematically driving forward the repositioning of all segments from component suppliers to solution providers. That involves introducing new customerspecific products and solutions, increasing vertical integration still further, and stepping up sales by raising diversification. Our half-year results show that this is the right strategy. Overall, in terms of costs and products the company is well-positioned. In addition, all three segments have opportunities to gain access to further markets. This is

reflected in the increase in orders on hand to EUR 36 million as of June 30, 2013, around 20 percent higher than last year.

Passau August, 2013

Yours,

Chairman of the Member of the

Walter Brückl Günther Kneidinger Board of Directors Board of Directors

Interim Management Report of the Group

for the period from January 1 to June 30, 2013

General economic conditions

The global economy is still firmly in the grip of the debt crisis. In July the International Monetary Fund (IMF) cut its forecast for global growth in 2013 from 3.3 percent to 3.1 percent due to declining domestic demand, coinciding with a drop in growth in important emerging markets, and the heightened recession in Europe. According to the IMF report, economic output in the euro zone is likely to contract by 0.6 percent in 2013. In April, the experts still expected the decline to be just 0.4 percent. The German economy is clearly feeling the effects of the headwind: the IMF experts halved their outlook for Germany from 0.6 percent to 0.3 percent.

In parallel with the general economic situation, the markets of relevance to InTiCa Systems – the automotive industry, industrial electronics and communications technology – are facing mounting challenges. For instance, according to figures published by the German automotive industry association VDA, the German automotive market was weaker than expected in the first six months of 2013. The number of new car registrations was down 8 percent while new commercial vehicle registrations fell 10 percent. Although the VDA still expects the sector to grow by 2 percent worldwide this year, driven by purchases in the USA and China, in Germany the uncertainty resulting from the ongoing euro crisis makes customers reluctant to buy new vehicles.

Sales also fell in the electronics industry in the first six months of this year. The decline was especially marketed in the photovoltaic market, which is particularly important for InTiCa Systems' Industrial Electronics segment. The German Engineering Federation (VDMA) reports that in the first quarter of 2013 alone manufacturers of components, tools and equipment for photovoltaics saw sales plunge nearly 35 percent year-on-year. According to the Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railways (Bundesnetzagentur), capacity expansion dropped by 42 percent. The principal cause was overcapacity and the ongoing market uncertainty resulting from changes in the sector framework and a large number of trade disputes in the solar sector.

Only the telecomunications industry is anticipating slight growth in 2013. The Federal Association for Information Technology, Telecommunications and New Media (BITKOM) forecasts that market volume will increase by 1.3 percent. 61 percent of communications technology producers expect to report higher sales in the first half of 2013.

InTiCa Systems' share price performance1)

The share price performance was positive in the first six months of 2013 and the share price rose by around 11 percent in the reporting period. Shares started the year at EUR 2.90 on January 2. Over the following month they traded in a range of EUR 2.80 to EUR 3.30 in highly volatile market conditions. The price dropped to a low for the period of EUR 2.80 on May 13, 2013. Positive quarterly results at the end of May boosted the price considerably to a high of EUR 3.45 on May 31. It then slipped back slightly. At the close of Xetra trading on August 9, 2013, the share price was EUR 3.25.

In the first six months of 2013 we provided timely information for our shareholders and the general public on current business trends, specific events and the company's prospects. At the Annual General Meeting in Passau on July 5, 2013, shareholders were given information on fiscal 2012 and the present situation at InTiCa Systems AG. As usual, the presentations given at this year's AGM can be downloaded from Investor Relations/Annual General Meeting on the company's homepage [available in German only].

Key data on the stock

ISIN	DE0005874846
WKN	587 484
Stock exchange symbol	IS7
Symbol Reuters / Bloomberg	IS7G.DE / IS7:GR
Trading segment	Regulated Market
Transparency level	Prime Standard
Listed	XETRA® , Frankfurt, Hamburg, Berlin, Munich, Stuttgart, Düsseldorf
Prime sector	Technology
Indices	CDAX, DAXsector All Technology, DAXsector Technology, DAXsubsector All Communications Technology, DAXsubsector Communications Technology, Prime All Share, Technology All Share
Designated sponsor	BankM - biw AG
Research coverage	Performaxx Research GmbH
Number of shares	4,287,000
Capital stock	EUR 4,287,000
Stock category	No-par common bearer shares

Shareholder structure

On August 15, 2013 the major shareholders were:	Shareholding
Thorsten Wagner	more than 25%
Dr. Dr. Axel Diekmann	more than 15%
bcm Invest GmbH	more than 5%
Dr. Paul und Maria Grohs	more than 3%
Karl Kindl	more than 3%
InTiCa Systems AG	1.5%
Management	less than 1%

Directors' Dealings in H1

Date	Reporting person	Board	Buy/Sale	Amount		Price in EUR	Volume in EUR	Exchange
26.06.2013	Günther Kneidinger	Managing Board		Buy	2.000	3,378	6.774,00	Frankfurt

Earnings, asset and financial position

The Group grew sales by around 8.5 percent year-on-year to EUR 19.5 million in the first six months of 2013. While the material and personnel cost ratios were almost constant, the increase in sales compared with the first six months of 2012 resulted in a considerable rise in earnings. EBITDA increased from EUR 2.5 million to EUR 3.0 million and EBIT grew from EUR 0.3 million to EUR 0.7 million. In line with this, the EBITDA margin improved from 13.7 percent to 15.5 percent and the EBIT margin increased from 1.7 percent to 3.6 percent. While the Automotive Technology and Communication Technology segments grew sales by 17 percent and 25 percent respectively, in the Industrial Electronics segment sales slipped 10 percent as a result of the negative trend in the solar industry. Despite this, the segment was able to move back into profit.

The equity ratio declined slightly year-on-year from 56 percent to 55 percent, mainly because current liabilities to banks rose from EUR 1.2 million to EUR 2.5 million in connection with financing for the increase in sales. The operating cash flow was slightly positive at EUR 81 thousand. However, overall there was a cash outflow of EUR 2.0 million in the reporting period (H1 2012: inflow of EUR 1.2 million) due to higher investment in intangible assets and property, plant and equipment as well as the repayment instalments on loans and leasing rates.

Earnings position

In the first six months of 2013, Group sales increased by 8.5 percent to EUR 19.5 million, up from EUR 18.0 million in the first half of 2012. While sales were nearly 10 percent lower in the Industrial Electronics segment at EUR 5.8 million (H1 2012: EUR 6.4 million), the Communication Technology and Automotive Technology segments both posted a considerable improvement. In the first six months of 2013, the Communication Technology segment grew sales 25 percent to EUR 3.2 million (H1 2012: EUR 2.5 million) and sales in the Automotive Technology segment increased 17 percent to EUR 10.6 million (H1 2012: EUR 9.0 million).

Expenses increased in line with the rise in sales. Expenditures for raw materials and supplies increased by a good 12 percent in the reporting period to EUR 12.0 million (H1 2012: EUR 10.6 million). However, the ratio of material costs to total output was essentially stable year-on-year, with only a minimal change from 59.2 percent to 59.6 percent. The personnel expense ratio (including temporary workers) declined slightly year-on-year from 19.2 percent to 18.0 percent, although the average number of employees increased significantly (from 414 to 433) due to the good order situation. Depreciation and amortization of intangible assets, property, plant and equipment totalled EUR 2.3 million in the first six months of 2013 (H1 2012: EUR 2.2 million). The other expenses were virtually constant at EUR 2.0 million. Expenses for research and development were also unchanged at EUR 1.1 million in the reporting period. Overall, the increase in EBITDA in the first six months of 2013 was even higher, rising 22 percent from EUR 2.5 million to EUR 3.0 million. The EBITDA margin therefore increased from 13.7 percent to 15.5 percent. InTiCa Systems AG posted a strong improvement in operating profit in the reporting period: Group EBIT increased to EUR 0.7 million, which was more than double the prior period level (H1 2012: EUR 0.3 million). The EBIT margin also improved from 1.7 percent to 3.6 percent. It should be noted that the Industrial Electronics segment returned to profit. This segment's EBIT was EUR 0.3 million in the first six months of 2013, compared with minus EUR 28 thousand in the first half of 2012. The Automotive Technology segment continued to develop positively, reporting EBIT of EUR 0.7 million in the first six months of 2013 (H1 2012: EUR 0.6 million). Only the Communication Technology posted slightly negative EBIT of minus EUR 0.3 million in the reporting period, as in the first six months of 2012.

The financial result was minus EUR 0.2 million in the reporting period (H1 2012: minus EUR 0.3 million). Taking into account tax expense of EUR 0.1 million (H1 2012: tax income of EUR 32 thousand), the interim result for the Group in the first six months of 2013 was EUR 0.4 million (H1 2012: EUR 0.1 million). Earnings per share were EUR 0.08 (H1 2012: EUR 0.02).

As a result of currency translation losses of EUR 0.3 million (H1 2012: gains of EUR 49 thousand) from the translation of foreign business operations, comprehensive income was EUR 16 thousand in the first six months of 2013 (H1 2012: EUR 0.1 million).

Non-current assets

In the reporting period, capital expenditures for intangible assets, property, plant and equipment were lower than depreciation and amortization. As of June 30, 2013, non-current assets therefore decreased to EUR 19.6 million (December 31, 2012: EUR 20.9 million).

Current assets

Current assets rose from EUR 12.6 million to EUR 15.7 million in the first six months of 2013. As a result of the positive sales trend, inventories increased from EUR 6.2 million to EUR 7.8 million and trade receivables rose from EUR 4.7 million to EUR 6.4 million. Cash and cash equivalents declined from EUR 1.4 million to EUR 1.0 million in the reporting period.

Liabilities

In view of the increase in capital requirements resulting from the good business trend, current liabilities increased from EUR 3.3 million as of December 31, 2012 to EUR 5.4 million as of June 30, 2013. Current liabilities to banks rose from EUR 1.1 million to EUR 2.5 million and trade payables increased from EUR 1.3 million to EUR 1.6 million in the reporting period. As a result of scheduled repayment instalments for non-current loans, noncurrent liabilities to banks decreased from EUR 8.9 million to EUR 8.8 million in the reporting period. In all, non-current liabilities therefore dropped from EUR 10.6 million to EUR 10.3 million.

Equity

The company's equity remained almost constant at EUR 19.5 million in the first six months of 2013. While the profit reserve increased from EUR 60 thousand to EUR 0.4 million in the reporting period thanks to the positive period result, the currency translation reserve to offset differences in currency translation changed from minus EUR 0.1 million as of December 31, 2012 to minus EUR 0.5 million as of June 30, 2013. Total assets increased from EUR 33.4 million as of December 31, 2012 to EUR 35.3 million, so the equity ratio decreased slightly from 58% to 55%.

Liquidity and cash flow statement

The cash flow for operating activities was EUR 0.08 million in the first six months of 2013 (H1 2012: EUR 1.5 million). In view of the positive sales trend, there was a considerable increase in trade receivables and especially in inventories compared with the same period of 2012. Excluding interest payments, the cash inflow from operating activities was EUR 0.3 million (H1 2012: EUR 1.7 million).

There was a net cash inflow of EUR 0.1 million for investing activities, compared with a cash outflow of EUR 1.6 million in the prior-year period. The change was due, on the one hand, to higher investment in property, plant and equipment in the reporting period (EUR 0.9 million compared with EUR 0.7 million in H1 2012) and, on the other hand, to the scheduled repayment of a EUR 1.5 million bonded loan in the previous year. Capital expenditures for intangible assets were almost unchanged at EUR 0.7 million.

The net cash flow for financing activities hardly changed in the first six months of 2013 compared with the first six months of 2012, with a cash outflow of EUR 0.4 million. In the reporting period, cash outflows related solely to scheduled loan repayment instalments totalling EUR 0,37 million and leasing expenses of EUR 0.04 million.

Overall, there was a cash outflow of EUR 2.0 million in the first six months of 2013 (H1 2012: inflow of EUR 1.2 million). As a result, cash and cash equivalents (less overdraft facilities drawn) declined from EUR 0.7 million in the prior-year period to minus EUR 1.0 million as of June 30, 2013. Irrespective of this, InTiCa Systems has assured credit facilities which can be drawn at any time totalling EUR 4.2 million.

Employees

The number of employees decreased slightly from 434 as of December 31, 2012 to 430 as of June 30, 2013 (including temporary staff in both cases). On average, the Group had 433 employees in the reporting period (H1 2012: 414).

Risks and opportunities

The management report in the annual report for 2012 provides full details of risk factors that could affect the business performance of InTiCa Systems in section 10 "Risk management and risk report", while business potential is discussed in section 12 "Opportunities". There was no material change in the risk/opportunity profile of InTiCa Systems AG in the reporting period.

Events after the end of the reporting period

No material events have occurred since the reporting date on June 30, 2013.

Outlook

Although the overall economic situation remains difficult and the cyclical outlook is uncertain, the Board of Directors assumes that the positive trend seen in the first two quarters will continue throughout 2013. It expects that the Automotive Technology

segment will continue to drive sales and earnings. The Board of Directors anticipates a drop in sales in the Industrial Electronics segment. In the medium term, regenerative energy sources and further new developments should once again provide growth impetus. The company is developing various innovative products to counter the deterioration in business conditions in the Communication Technology segment caused by rising competition and increasing price pressure. Further information on the expectations for the individual segments is set out in section 14 "Outlook" in the management report published in the annual report for 2012.

Overall, the Board of Directors is of the opinion that in terms of costs and products the company is well-positioned. Customerspecific solutions, combined with increased vertical integration and systems solution competence, give InTiCa Systems a key competitive advantage. In addition, all three segments have new products that should give them opportunities to gain access to further markets. This is reflected in the increase in orders on hand to EUR 36 million as of June 30, 2013, around 20 percent higher than at the end of June 2012.

For 2013 as a whole, at present the Board of Directors therefore still assumes that, providing overall economic growth is at least moderate, there will be a perceptible rise in sales and earnings. Overall, the Board of Directors expects Group sales in 2013 to be close to EUR 40 million, with an EBITDA margin of around 15% and an EBIT margin of around 3%.

Consolidated interim financial statements in accordance with IFRS

The unaudited consolidated interim financial statements for InTiCa Systems AG and its subsidiary as of June 30, 2013 have been drawn up in accordance with the International Financial Reporting Standards (IFRS), as applicable for use in the European Union, and the supplementary commercial law regulations set out in sec. 315a paragraph 1 of the German Commercial Code (HGB). No audit review has been conducted of the consolidated interim financial statements.

Forward-looking Statements and Predictions

This half year report contains statements and forecasts referring to the future development of InTiCa Systems AG, which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future performance and developments depend on a wide variety of factors which contain a number of risks and unforeseeable factors and are based on assumptions that may prove incorrect. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.

Consolidated Interim Financial Statements

for the period from January 1 to June 30, 2013

Consolidated Balance Sheet

of InTiCa Systems AG in accordance with IFRS as of June 30, 2013

Assets	Jun 30, 2013 EUR ´000	Dec 31, 2012 EUR ´000
Non-current assets
Intangible assets	4,781	4,813
Property, plant and equipment	13,704	14,741
Deferred taxes	1,121	1,300
Total non-current assets	19,606	20,854
Current assets
Inventories	7,814	6,172
Trade receivables	6,385	4,722
Tax assets	31	23
Other financial assets	30	5
Other current receivables	372	299
Cash and cash equivalents	1,021	1,356
Total current assets	15,653	12,577
Total assets	35,259	33,431

Equity and liabilities	Jun 30, 2013 EUR ´000	Dec 31, 2012 EUR ´000
Equity
Capital stock	4,287	4,287
Treasury stock	-64	-64
General capital reserve	15,389	15,389
Profit reserve	417	60
Currency translation reserve	-483	-141
Total equity	19,546	19,531
Non-current liabilities
Financial liabilities	8,761	8,931
Deferred taxes	1,571	1,644
Total non-current liabilities	10,332	10,575
Current liabilities
Other current provisions	808	549
Financial liabilities	2,469	1,072
Trade payables	1,612	1,347
Other financial liabilities	211	201
Other current liabilities	281	156
Total current liabilities	5,381	3,325
Total equity and liabilities	35,259	33,431
Equity ratio	55%	58%

Consolidated Statement of Profit and Loss and other Comprehensive Income

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to June 30, 2013

	Q2 2013 EUR ´000	Q2 2012 EUR ´000	H1 2013 EUR ´000	H1 2012 EUR ´000	Change 2013 vs. 2012
Sales	9,689	9,134	19,540	18,006	+8.5%
Other operating income	89	104	151	260	-41.9%
Changes in finished goods and work in process	-2	-466	-115	-631	-
Other own costs capitalized	315	311	630	610	+3.3%
Material expense	5,769	5,212	11,959	10,648	+12.3%
Personnel expense	1,654	1,614	3,214	3,133	+2.6%
Depreciation and amortization	1,199	1,100	2,330	2,163	+7.7%
Other expenses	1,050	1,102	2,004	1,990	+0.7%
Operating profit (EBIT)	419	55	699	311	+124.8%
Cost of financing	122	121	238	258	-7.8%
Other financial income	1	2	2	8	-75.0%
Profit before taxes	298	-64	463	61	+659.0%
Income taxes	79	-94	105	-32	-
Net profit for the period	219	30	358	93	+285.0%
Other comprehensive income
Exchange differences from translating foreign business operations	-92	-444	-342	49	-798.0%
Other comprehensive income, after taxes	-92	-444	-342	49	-798.0%
Total comprehensive income for the period	127	-414	16	142	-88.7%
Earnings per share (diluted/basic in EUR)	0.05	0.01	0.08	0.02	+285.0%
EBITDA	1,618	1,155	3,029	2,474	+22.4%

Consolidated Cash Flow Statement

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to June 30, 2013

	Jan 1 - Jun 30, 2013 EUR ´000	Jan 1 - Jun 30, 2012 EUR ´000
Cash flow from operating activities
Net profit for the period	358	93
Income tax expenditures / receipts	105	-32
Cash outflow for borrowing costs	238	258
Income from financial investments	-2	-8
Depreciation and amortization of non-current assets	2,330	2,163
Other non-cash transactions
Net currency gains/losses	44	-53
Increase/decrease in assets not attributable to financing or investing activities
Inventories Trade receivables Other assets	-1,642 -1,663 -100	1,329 -1,105 5
Increase/decrease in liabilities not attributable to financing or investing activities
Other current provisions Trade payables Other liabilities	259 265 127	-258 -722 60
Cash flow from operating activities	319	1,730
Cash outflow for income taxes	-8	-5
Cash outflow for interest payments	-230	-257
Net cash flow from operating activities	81	1,468
Cash flow from investing activities
Cash inflow from interest payments	4	37
Cash outflow for intangible assets	-699	-691
Cash outflow for property, plant and equipment	-946	-698
Cash inflow from non-current receivables	0	1,500
Net cash flow from investing activities	-1,641	148
Cash flow from financing activities
Cash outflow for loan repayment installments	-368	-358
Cash outflow for liabilities under finance leases	-41	-39
Net cash flow from financing activities	-409	-397
Total cash flow	-1,969	1,219
Cash and cash equivalents at start of period	984	-500
Impact of changes in exchange rates on cash and cash equivalents held in foreign currencies	-1	0
Cash and cash equivalents at end of period	-986	719

Consolidated Statement of Changes in Equity

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to June 30, 2013

	Capital stock EUR ´000	Treasury stock EUR ´000	Paid-in capital EUR ´000	Retained earnings EUR ´000	Currency trans lation reserve EUR ´000	Total equity EUR ´000
As of January 1, 2012	4,287	-64	15,389	449	-572	19,489
Net result for H1 2012	0	0	0	93	0	93
Other comprehensive income, after taxes H1 2012	0	0	0	0	49	49
Total comprehensive income for H1 2012	0	0	0	93	49	142
As of June 30, 2012	4,287	-64	15,389	542	-523	19,631
As of January 1, 2013	4,287	-64	15,389	60	-141	19,531
Net result H1 2013	0	0	0	357	0	357
Other comprehensive income, after taxes H1 2013	0	0	0	0	-342	-342
Total comprehensive income for H1 2013	0	0	0	357	-342	15
As of June 30, 2013	4,287	-64	15,389	417	-483	19,546

Consolidated Interim Financial Statements Notes to the

for the period from January 1 to June 30, 2013

Accounting based on the International Financial Reporting Standards (IFRS)

The consolidated interim financial statements of InTiCa Systems AG as of June 30, 2013, prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting", use the same accounting policies and valuation methods as the consolidated financial statements for fiscal 2012, which were drawn up in accordance with International Financial Reporting Standards valid as of the reporting date, as applicable for use in the European Union, and the relevant Interpretations. The consolidated interim financial statements cover the six months to June 30, 2013. Comparative data refer to the consolidated financial statements as of December 31, 2012 or the consolidated interim financial statements as of June 30, 2012. The consolidated interim financial statements do not contain all information that would be required for a full set of annual financial statements. A detailed overview of the accounting and valuation principles applied can be found in the notes to the consolidated financial statements in the annual report for 2012.

This is available at Investor Relations/Publications on the company's website at http://www.intica-systems.de.

The currency used to prepare the consolidated interim financial statements is the euro (EUR). Amounts are stated in thousands of euros (EUR '000), except where otherwise indicated.

Scope of consolidation

There has been no change in the scope of consolidation of InTiCa Systems AG compared with fiscal 2012. Alongside the parent company in Passau, Germany, only InTiCa Systems s.r.o. of Prachatice, Czech Republic, is included in the consolidated interim financial statements. The parent company has a stake of 100% in this subsidiary. The interim financial statements of the consolidated companies are prepared as of the reporting date for the consolidated interim financial statements.

Currency translation

When preparing the financial statements for each individual Group company, business transactions in currencies other than the functional currency of that company (foreign currencies) are translated at the exchange rates applicable on the transaction date.

When preparing the consolidated interim financial statements, the assets and liabilities of the Group's foreign business operations are translated into euros (EUR) at the exchange rate applicable on the reporting date. Income and expenses are translated using the weighted average exchange rate for the fiscal year.

Segment report as of June 30, 2013 Segment sales and segment earnings

Segment	Communication Technology		Automotive Technology		Industrial Electronics		Total
in EUR ´000	H1 2013	H1 2012	H1 2013	H1 2012	H1 2013	H1 2012	H1 2013	H1 2012
Sales	3,186	2,548	10,553	9,023	5,801	6,435	19,540	18,006
EBIT	-332	-267	730	607	301	-28	699	311

Key financial figures	H1 2013 EUR ´000 or %	H1 2012 EUR ´000 or %	Change 2013 vs. 2012
EBITDA	3,029	2,474	+22.4%
Net margin	1.8%	0.5%
Pre-tax margin	2.4%	0.3%
Material cost ratio	59.6%	59.2%
Personnel cost ratio (incl. temporary workers)	18.0%	19.2%
EBIT margin	3.6%	1.7%
Gross profit margin	38.2%	37.4%

The following exchange rates were used for the consolidated financial statements:

		Closing rates
	Jun 30, 2013	Dec 31, 2012	Jun 30, 2012
	EUR 1	EUR 1	EUR 1
Czech Republic	CZK 25.950	CZK 25.140	CZK 25.640
USA	USD 1.307	USD 1.319	USD 1.258
	Average rates
	Jun 30, 2013	Dec 31, 2012	Jun 30, 2012
	EUR 1	EUR 1	EUR 1
Czech Republic
	CZK 25.699	CZK 25.143	CZK 25.163

Segment information

The notes to the consolidated financial statements in the annual report for 2012 contain a detailed overview of the assets allocated to each segment.

There has not been any material change in the assets allocated to the segments since December 31, 2012.

Consolidated Income statement / statement of comprehensive income

In the first six months of 2013, Group sales increased to EUR 19,540 thousand, up from EUR 18,006 thousand in the first six months of 2012. The 8.5 percent rise was mainly due to the positive sales trend in the Automotive Technology and Communication Technology segments, whereas sales slipped slightly in the Industrial Electronics segment. Analogously to the sales trend, EBITDA increased from EUR 2,474 thousand to EUR 3,029 thousand. Comprehensive income at the end of the first six months declined from EUR 142 thousand to EUR 16 thousand due to translation losses on the currency translation of foreign business operations.

Consolidated balance sheet and cash flow statement

The capital stock of InTiCa Systems AG is EUR 4,287,000 and is divided into 4,287,000 no-par bearer shares with a theoretical pro rata share of the capital stock of EUR 1.00 per share. With an equity ratio of around 55 percent (December 31, 2012: 58 percent), the company is still soundly financed.

The slight reduction in the equity ratio is attributable to higher capital requirements resulting from the positive business performance in the first half of 2013. Consequently, current liabilities to banks increased from EUR 1,072 thousand to EUR 2,469 thousand in the reporting period while trade payables increased from EUR 1,347 thousand to EUR 1,612 thousand. By contrast, non-current liabilities to banks declined from EUR 8.931 thousand to EUR 8,761 thousand as a result of scheduled repayment instalments. Overall, non-current liabilities therefore dropped from EUR 10,575 thousand to EUR 10,332 thousand.

The net cash flow from operating activities decreased from EUR 1,468 thousand to EUR 81 thousand in the first half of 2013. The total cash outflow was EUR 1,969 thousand in the reporting period (2012: inflow of EUR 1,219 thousand). Cash and cash equivalents therefore declined from EUR 984 thousand as of December 31, 2012 to minus EUR 986 thousand as of June 30, 2013. Given the increase in sales, inventories increased from EUR 6,172 thousand to EUR 7,814 thousand in the reporting period. In line with this, trade receivables increased from EUR 4,722 thousand to EUR 6,385 thousand.

Authorized capital

The Board of Directors is authorized by a resolution of the Annual General Meeting of July 6, 2012 to increase the capital stock with the Supervisory Board's consent, up to July 5, 2017, by a total of up to EUR 2,143,500.00 in return for cash or contributions in kind under exclusion of shareholders' subscription rights (authorized capital 2012/I).

Events after the reporting date

Material events after the reporting date (June 30, 2013) are outlined in the section on events after the reporting period in the management report.

German Corporate Governanace Code and declaration of conformance

In compliance with sec. 161 of the German Stock Corporation Act (AktG), the Board of Directors and Supervisory Board have made their current declaration of conformance with the German Corporate Governance Code available permanently to shareholders on the company's website at http://www.intica-systems.de, Investor Relations/ Corporate Governance.

Other information

The Board of Directors and Supervisory Board do not have any stock subscription rights within the meaning of sec. 160 paragraph 1 nos. 2 and 5 of the German Stock Corporation Act (AktG).

As of June 30, 2013 InTiCa Systems AG held 64,430 treasury shares. Treasury shares were not eligible for the dividend and had no voting rights at the company's Annual General Meeting in Passau, Germany, on July 5, 2013.

All shares have the same voting rights and dividend claims. The only exceptions are shares held by the company (treasury shares), which do not confer any rights on the company. There are no shares in the company with special rights according rights of control.

The rights and obligations of the shareholders are set out in detail in the German Stock Corporation Act (AktG), in particular in sec. 12, sec. 53a et seq., sec. 118 et seq. and sec. 186. Restrictions on the voting rights of shares could result from statutory provisions (sec. 71b and sec.136 AktG). The Board of Directors is not aware of any other restrictions on the exercise of voting rights or the transfer of shares.

No material transactions were conducted with related parties in the reporting period.

There are no agreements that confer specific rights on contractual partners in the event of a change in the company's shareholder or ownership structure.

There are no compensation agreements with either members of the Board of Directors or employees relating to a takeover bid.

Responsibility Statement

(in accordance with sec. 37v paragraph 2 no. 3 WpHG)

We hereby declare that, to the best of our knowledge and in accordance with the applicable reporting principles, the consolidated financial statements as of June 30, 2013 give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and that the management report for the Group includes a fair review of the development and performance of the business from January 1 to June 30, 2013 and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.

Passau, August 20, 2013

The Board of Directors

Chairman of the Member of the Board of Directors Board of Directors

Walter Brückl Günther Kneidinger

Financial Calendar 2013

August 21, 2013 Publication of Interim Financial Statements for H1 2013

November 20, 2013 Publication of Interim Financial Statements for the first nine months 2013

Headquarter:

InTiCa Systems AG Spitalhofstraße 94 94032 Passau Germany

Phone +49 (0) 851 96692-0 Fax +49 (0) 851 96692-15

www.intica-systems.de