InTiCa Systems AG

Interim / Quarterly Report • Nov 20, 2013

Interim Report 9M

Sales growth and a substantial improvement in earnings in the first nine months of 2013

Technologies for growth markets!

9M 2013 in figures

The Group	Q3 2012 EUR ´000	Q3 2013 EUR ´000	9M 2012 EUR ´000	9M 2013 EUR ´000	Change vs. 9M 2012
Sales	9,519	9,053	27,525	28,593	+3.9%
Net margin (net result for the period)	-0.7%	0.0%	0.1%	1.2%	-
EBITDA	1,169	1,277	3,643	4,306	+18.2%
EBIT	63	76	374	775	+107.2%
EBT	-55	-41	6	422	+6933.3%
Net loss for the period	-68	-2	25	356	+1324.0%
Earnings per share (diluted/basic in EUR)	-0.02	0.00	0.01	0.08	-
Total cash flow	-749	8	470	-1,961	-
Net cash flow for operating activities	49	1,130	1,517	1,211	-20.2%
Capital expenditure	538	853	1,927	2,498	+29.6%

	Sep 30, 2012 EUR ´000	Dec 31, 2012 EUR ´000	Sep 30, 2013 EUR ´000	Change vs. Dec 31, 2012
Total assets	35,570	33,431	35,236	+5.4%
Equity	19,921	19,531	19,635	+0.5%
Equity ratio	56%	58%	56%	-
Number of employees (on the reporting date)	426	434	434	0.0%

The Stock	9M 2012	2012	9M 2013
Closing price (in EUR)	3.05	3.02	3.18
Period high (in EUR)	3.75	3.75	3.52
Period low (in EUR)	2.47	2.47	2.80
Market capitalisation at end of period (in EUR million)	13.08	12.95	13.63
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 Nine 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	12

Consolidated Interim Financial Statements

9M 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	22
Responsibility Statement	23
Financial Calendar	24

Foreword by the Board of Directors

Dear shareholders, employees and business associates,

InTiCa Systems AG did well in the first nine months of 2013. Sales rose 3.9 percent to EUR 28.6 million, EBITDA increased 18.2 percent to EUR 4.3 million, EBIT more than doubled to EUR 0.8 million and net profit for the period increased strongly to EUR 0.4 million, showing that InTiCa is on the right track. There was slight rise in sales and, above all, an improvement in the earnings situation. With an EBITDA margin of 15.1 percent and an EBIT margin of 2.7 percent, we are still on course to achieve our targets at yearend.

The underlying cost-savings and improvements in production efficiency were particularly important since the competitive situation in the markets in which we operate and the economic framework were not always easy in the reporting period. This was felt most keenly by the Industrial Electronics and Communication Technology segments. Industrial Electronics reported positive earnings despite a significant drop in sales caused by the difficult situation faced by manufacturers in the solar industry. By contrast, increased competition from Asia resulted in an operating loss in the Communication Technology segment, although there was only a slight drop in sales. To counter this, we are continuing to drive forward the development and marketing of innovative products in order to enter new markets and further reduce dependencies.

Our repositioning from a component producer to a solution provider is already well advanced in the Automotive Technology segment. The successful expansion of the value chain and the associated diversification of the product range are evident from the fact that InTiCa's parts are now used in more than 250 models produced by 19 automobile manufacturers. That is also reflected in the relevant financial indicators: in the first nine months of 2013, this segment reported year-on-year sales growth of around 17 percent and increased its operating result by nearly 33 percent.

Alongside consistent implementation of our corporate strategy, the upturn in demand on the German car market in recent weeks contributed to this excellent segment result. Since increasingly positive signals are also coming from our other markets, we are looking forward optimistically. The solar market could have bottomed out, paving the way for a possible turnaround in the coming year. Another sign could be the fact that orders on hand totalled EUR 38 million on

September 30, 2013, a rise of more than 30 percent compared with a year ago. In terms of costs and products the InTiCa Group is positioned so that it can utilize opportunities.

Passau November, 2013

Yours,

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

Walter Brückl Günther Kneidinger

Interim Management Report of the Group

for the period from January 1 to September 30, 2013

General economic conditions

The global economic outlook remains subdued in the second half of 2013. Major uncertainties in Europe include, in particular, the continued debt crisis and the ongoing reform of the financial sector, while the upcoming change in monetary policy in the USA and slower economic growth in China are global risks. In its latest "World Economic Outlook" published in October, the International Monetary Fund (IMF) therefore sees more risks than opportunities overall and is only forecasting global economic growth of 2.9 percent for this year. That is 0.3 percentage points below its July forecast. By contrast, the IMF experts have upped their forecast for Germany and the euro zone slightly. They now expect economic output in the euro zone to contract by 0.4 percent in 2013, compared with the previous forecast of 0.6 percent. Similarly, the German economy is expected to grow by 0.5 percent rather than 0.3 percent.

While economic output in Germany seemed in danger of stagnating at the start of the year, in their most recent joint forecast the leading German economic research institutes now predict an upward trend. Driven by domestic demand, which is benefiting from favourable prospects for employment and incomes, the German economy is poised for an upturn in 2014. This confidence is also reflected in the automotive industry. According to the industry association VDA, German car production increased considerably year-on-year in August and September. In the industrial electronics sector, producers of electronic assemblies registered a rise in order intake in the second quarter of 2013, following a slump in the previous two quarters. Even the photovoltaic market, which is very important for InTiCa Systems AG but has been suffering particularly badly, is reporting somewhat more positive signs. According to the German Engineering Federation (VDMA), order intake was positive up to the end of the third quarter. Nevertheless, photovoltaic suppliers anticipate that sales will contract by about 12 percent over the year as a whole because overcapacity, price pressure and consolidation are continuing. A turnaround is not expected until 2014 at the earliest. The telecommunications industry expects to report growth this year. The Federal Association for Information Technology, Telecommunications and New Media (BITKOM) forecasts that market volume will increase by 1.4 percent to EUR 66.3 billion.

InTiCa Systems' share price performance1)

The share performed positively in the first nine months of 2013 and the share price rose by around 10 percent in the reporting period. Shares started the year at EUR 2.90 on January 2. Over the following months they traded in a range of EUR 2.80 to EUR 3.30 in volatile market conditions, before dropping to a low for the period of EUR 2.80 on May 13, 2013. Following the announcement of the positive first quarter result at the end of May, the price rose considerably and the share subsequently traded between EUR 3.10 and EUR 3.60. The highest share price in the reporting period was EUR 3.52 on August 22. The price then slipped back slightly, closing the first nine months at EUR 3.18 in Xetra trading on September 30. Till the close of trading on November 15 the stock price recovered and rose to EUR 3.38.

In the first nine 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].

InTiCa Systems will be giving a presentation for investors, analysts and financial journalists at this year's Munich Capital Markets Conference (MKK) on December 4, 2013. This is the biggest capital market conference in southern Germany.

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 November 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 9M

Date	Reporting person	Board	Buy/Sale	Amount	Price in EUR	Volume in EUR Exchange
05.07.2013	Christian Fürst	Supervisory Board	Buy	1,800	3.197	5,754,60	OTC
11.07.2013	Werner Paletschek	Supervisory Board	Buy	1,000	3.21	3,210,00	Munich

Earnings, asset and financial position

The InTiCa Systems Group grew sales by around 4 percent year-on-year to EUR 28.6 million in the first nine months of 2013. Since it also managed to reduce its material cost ratio and personnel expense ratio, earnings improved considerably. EBITDA rose more than 18 percent year-onyear from EUR 3.6 million to EUR 4.3 million while EBIT doubled from EUR 0.4 million to EUR 0.8 million. This had a corresponding impact on profit margins: the EBITDA margin improved from 13.2 percent to 15.1 percent and the EBIT margin increased from 1.4 percent to 2.7 percent. The principal factor in this was the performance of the Automotive Technology segment, which grew sales 17.0 percent and reported an EBIT margin of 6.9 percent.

The equity ratio declined slightly to 56 percent at the end of the reporting period, compared with 58 percent as of December 31, 2012 mainly because current liabilities to banks rose from EUR 1.1 million to EUR 2.4 million in connection with financing for the increase in sales. The operating cash flow was clearly positive at EUR 1.2 million in the first nine months of 2013. However, overall there was a cash outflow of EUR 2.0 million in the reporting period (9M 2012: inflow of EUR 0.5 million) due to higher investment in intangible assets and property, plant and equipment as well as repayment instalments on loans and leasing rates.

Earnings position

In the first nine months of 2013, Group sales increased to EUR 28.6 million, up from EUR 27.5 million in the first nine months of 2012. That was an increase of nearly 4 percent and was attributable to the extremely positive development of the Automotive Technology segment. This segment lifted sales by around 17 percent to EUR 16.3 million in the reporting period (9M 2012: EUR 13.9 million). By contrast, sales declined in the other segments. While sales only contracted slightly from EUR 4.7 million to EUR 4.6 million in the Communication Technology segment, the Industrial Electronics segment registered a drop of 13 percent to EUR 7.7 million (9M 2012: EUR 8.9 million) as a result of the difficult situation faced by customers in the solar industry.

This situation is also reflected in the results for the third quarter. The Automotive Technology segment benefited from rising global demand for cars and increased penetration of its products in various models, enabling it to grow sales significantly to EUR 5.8 million (Q3 2012: EUR 4.9 million). By contrast, sales dropped significantly in the other two segments. In the Communication Technology segment sales fell to EUR 1.4 million in the third quarter of 2013 (Q3 2012: EUR 2.2 million), while in Industrial Electronics sales were EUR 1.9 million (Q3 2012: EUR 2.4 million).

Expenses increased in the reporting period, in line with the rise in sales. Expenditures for raw materials and supplies rose by a good 5 percent in the first nine months to EUR 17.6 million (9M 2012: EUR 16.7 million). However, relative to total output the material cost ratio declined from 60.4 percent in the prior-year period to 59.4 percent. The personnel expense ratio (including temporary workers) also declined slightly year-on-year in the reporting period from 17.1 percent to 16.9 percent, although the average number of employees (excluding agency staff) increased from 347 to 366 due to the good order situation. Depreciation and amortization of intangible assets, property, plant and equipment totalled EUR 3.5 million in the first nine months of 2013 (9M 2012: EUR 3.3 million). Other expenses also increased slightly from EUR 3.0 million to EUR 3.1 million. Expenses for research and development were unchanged at EUR 1.6 million in the reporting period. Overall, the increase in EBITDA in the first nine months of 2013 was even higher, rising 18 percent from EUR 3.6 million to EUR 4.3 million. The EBITDA margin therefore increased from 13.2 percent to 15.1 percent. InTiCa Systems AG posted a strong improvement in operating profit in the reporting period: Group EBIT doubled from EUR 0.4 million to EUR 0.8 million. This is also reflected in the EBIT margin, which improved from 1.4 percent to 2.7 percent. This performance was driven principally by the Automotive Technology segment, which reported EBIT of EUR 1.1. million in the reporting period (9M 2012: EUR 0.8 million) and therefore increased its margin to 6.9 percent (9M 2012: 6.1 percent). Industrial Electronics also posted a clear improvement in the first nine months of 2013, returning to profit with EBIT of EUR 0.2 million (9M 2012: minus EUR 0.1 million), and a margin of 2.5 percent (9M 2012: minus 1.3 percent). Only the Communication Technology segment posted negative EBIT of minus EUR 0.5 million in the first nine months of 2013 (9M 2012: minus 0.4 million).

Automotive Technology was the best-performing segment in the third quarter of 2013, as in the first nine months, with EBIT of EUR 0.4 million (Q3 2012: EUR 0.2 million). By contrast both Communication Technology and Industrial Electronics reported operating losses. EBIT was minus EUR 0.2 million in the Communication Technology segment in Q3 2013 (Q3 2012: minus EUR 0.1 million) and minus EUR 0.1 million in the Industrial Electronics segment (Q3 2012: minus EUR 0.1 million).

The financial result was minus EUR 0.4 million at the end of the first nine months of 2013 and thus virtually unchanged year-on-year. Taking into account tax expense of EUR 66 thousand (9M 2012: tax income of EUR 19 thousand), the interim result for the Group in the first nine months of 2013 was EUR 0.4 million (9M 2012: EUR 25 thousand). Earnings per share were EUR 0.08 (9M 2012: EUR 0.01). As a result of currency translation losses of EUR 0.3 million (9M 2012: gains of EUR 0.4 million) from the translation of foreign business operations, comprehensive income was EUR 0.1 million in the first nine months of 2013 (9M 2012: EUR 0.4 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 September 30, 2013, non-current assets therefore decreased to EUR 19.3 million (December 31, 2012: EUR 20.9 million).

Current assets

Current assets increased considerably in the first nine months of 2013, from EUR 12.6 million to EUR 15.9 million. As a result of the positive sales trend, inventories increased from EUR 6.2 million to EUR 7.9 million and trade receivables rose from EUR 4.7 million to EUR 6.3 million. Other financial assets and other receivables also increased. Cash and cash equivalents declined from EUR 1.4 million to EUR 1.0 million in the reporting period.

Liabilities

Current liabilities increased from EUR 3.3 million on December 31, 2012 to EUR 5.5 million on September 30, 2013. Current liabilities to banks rose from EUR 1.1 million to EUR 2.4 million and trade payables increased from EUR 1.3 million to EUR 1.8 million. By contrast, non-current liabilities to banks declined from EUR 8.9 million to EUR 8.6 million as a result of scheduled repayment instalments. In all, non-current liabilities therefore dropped from EUR 10.6 million to EUR 10.1 million.

Equity

The company's equity increased slightly in the first nine months of 2013 from EUR 19.5 million to EUR 19.6 million: the profit reserve increased faster than the reduction in the currency translation reserve, rising from EUR 60 thousand to EUR 0.4 million thanks to the positive interim result. Total assets increased from EUR 33.4 million as of December 31, 2012 to EUR 35.2 million, so the equity ratio decreased slightly from 58 percent to 56 percent.

Liquidity and cash flow statement

The net cash flow from operating activities was EUR 1.2 million in the first nine months of 2013 (9M 2012: EUR 1.5 million). This was mainly due to the third quarter, when a very positive contribution of EUR 1.1 million was recorded. However, 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 1.6 million (9M 2012: EUR 1.9 million).

There was a net cash outflow of EUR 2.5 million for investing activities, compared with a cash outflow of EUR 0.4 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 1.4 million compared with EUR 0.9 million in 9M 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 1.1 million (9M 2012: EUR 1.0 million).

The net cash flow for financing activities hardly changed in the first nine months of 2013 compared with the first nine months of 2012, with a cash outflow of EUR 0.7 million. Cash outflows in the reporting period comprised scheduled loan repayment instalments of EUR 0.6 million and leasing expenses of EUR 0.1 million.

Overall, there was a cash outflow of EUR 2.0 million in the first nine months of 2013 (9M 2012: inflow of EUR 0.5 million). However, in the third quarter the cash flow was slightly positive at EUR 8 thousand. Viewed over the entire reporting period, as of September 30, 2013 cash and cash equivalents (less overdraft facilities drawn) declined from minus EUR 30 thousand a year earlier to minus EUR 978 thousand. Irrespective of this, InTiCa Systems has assured credit facilities which can be drawn at any time totalling EUR 4.2 million.

Employees

On September 30, 2013 InTiCa Systems AG had 434 employees (including agency staff). The number of employees was therefore unchanged from December 31, 2012. Year-on-year there was a slight increase from 426 as of September 30, 2012. On average, the Group had 432 employees in the reporting period (9M 2012: 418).

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 September 30, 2013.

Outlook

Despite the difficult market situation that affected some areas of the business in the third quarter, the Board of Directors of InTiCa Systems AG expects the positive trend to continue over the year as a whole. This is based, not least, on the forecast economic uptrend that has become visible in the past few weeks, and the increase in orders on hand in the Group. Orders totalled EUR 38 million on September 30, 2013, an increase of more than 30 percent compared with the previous year.

The Automotive Technology segment should continue to drive sales and earnings. Orders on hand in this segment amounted to EUR 26.5 million as of September 30, 2013, which was almost 70 percent of total orders on hand. In the Industrial Electronics segment, regenerative energies and further new developments should provide growth impetus in the medium term. 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.

At present the Board of Directors still assumes that there will be a perceptible rise in sales and earnings in FY 2013 as a whole. Overall, it therefore expects Group sales in 2013 to be slightly below EUR 40 million, with an EBITDA margin of around 15 percent and an EBIT margin of around 3 percent.

Consolidated interim financial statements in accordance with IFRS

The unaudited consolidated interim financial statements for InTiCa Systems AG and its subsidiary as of September 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 nine months 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 September 30, 2013

Consolidated Balance Sheet

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

Assets	Sep 30, 2013 EUR ´000	Dec 31, 2012 EUR ´000
Non-current assets
Intangible assets	4,755	4,813
Property, plant and equipment	13,472	14,741
Deferred taxes	1,121	1,300
Total non-current assets	19,348	20,854
Current assets
Inventories	7,852	6,172
Trade receivables	6,272	4,722
Tax assets	11	23
Other financial assets	168	5
Other current receivables	550	299
Cash and cash equivalents	1,035	1,356
Total current assets	15,888	12,577
Total assets	35,236	33,431

Equity and liabilities	Sep 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	416	60
Currency translation reserve	-393	-141
Total equity	19,635	19,531
Non-current liabilities
Financial liabilities	8,615	8,931
Deferred taxes	1,531	1,644
Total non-current liabilities	10,146	10,575
Current liabilities
Other current provisions	800	549
Financial liabilities	2,350	1,072
Trade payables	1,831	1,347
Other financial liabilities	322	201
Other current liabilities	152	156
Total current liabilities	5,455	3,325
Total equity and liabilities	35,236	33,431
Equity ratio	56%	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 September 30, 2013

	Q3 2013	Q3 2012	9M 2013	9M 2012	Change
	EUR ´000	EUR ´000	EUR ´000	EUR ´000	2013 vs. 2012
Sales	9,053	9,519	28,593	27,525	+3.9%
Other operating income	78	142	229	402	-43.0%
Changes in finished goods and work in process	138	-174	23	-805	-
Other own costs capitalized	315	315	945	925	+2.2%
Material expense	5,611	6,041	17,570	16,689	+5.3%
Personnel expense	1,629	1,576	4,843	4,709	+2.9%
Depreciation and amortization	1,201	1,106	3,531	3,269	+8.0%
Other expenses	1,067	1,016	3,071	3,006	+2.2%
Operating profit (EBIT)	76	63	775	374	+107.2%
Cost of financing	118	119	356	377	-5.6%
Other financial income	1	1	3	9	-66.7%
Profit before taxes	-41	-55	422	6	+6,933.3%
Income taxes	-39	13	66	-19	-
Net profit for the period	-2	-68	356	25	+1,324.0%
Other comprehensive income
Exchange differences from translating foreign business operations	90	358	-252	407	-
Other comprehensive income, after taxes	90	358	-252	407	-
Total comprehensive income for the period	88	290	104	432	-75.9%
Earnings per share (diluted/basic in EUR)	0.00	-0.02	0.08	0.01
EBITDA	1,277	1,169	4,306	3,643	+18.2%

Consolidated Cash Flow Statement

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

	Jan 1 - Sep 30, 2013 EUR ´000	Jan 1 - Sep 30, 2012 EUR ´000
Cash flow from operating activities
Net profit for the period	356	25
Income tax expenditures / receipts	66	-19
Cash outflow for borrowing costs	356	377
Income from financial investments	-3	-9
Depreciation and amortization of non-current assets	3,531	3,269
Other non-cash transactions
Net currency gains/losses	43	-73
Increase/decrease in assets not attributable to financing or investing activities
Inventories	-1,680	1,414
Trade receivables	-1,549	-1,823
Other assets	-416	-267
Increase/decrease in liabilities not attributable to financing or investing activities
Other current provisions	250	17
Trade payables	484	-952
Other liabilities	150	-16
Cash flow from operating activities	1,588	1,943
Cash outflow for income taxes	11	-9
Cash outflow for interest payments	-388	-417
Net cash flow from operating activities	1,211	1,517
Cash flow from investing activities
Cash inflow from interest payments	4	40
Cash outflow for intangible assets	-1,061	-1,036
Cash outflow for property, plant and equipment	-1,437	-891
Cash inflow from non-current receivables	0	1,500
Net cash flow from investing activities	-2,494	-387
Cash flow from financing activities
Cash outflow for loan repayment installments	-617	-602
Cash outflow for liabilities under finance leases	-61	-58
Net cash flow from financing activities	-678	-660
Total cash flow	-1,961	470
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	-978	-30

Consolidated Statement of Changes in Equity

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to September 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 9M 2012	0	0	0	25	0	25
Other comprehensive income, after taxes 9M 2012	0	0	0	0	407	407
Total comprehensive income for 9M 2012	0	0	0	25	407	432
As of September 30, 2012	4,287	-64	15,389	474	-165	19,921
As of January 1, 2013	4,287	-64	15,389	60	-141	19,531
Net result 9M 2013	0	0	0	356	0	356
Other comprehensive income, after taxes 9M 2013	0	0	0	0	-252	-252
Total comprehensive income for 9M 2013	0	0	0	356	-252	104
As of September 30, 2013	4,287	-64	15,389	416	-393	19,635

Consolidated Interim Financial Statements Notes to the

for the period from January 1 to September 30, 2013

Accounting based on the International Financial Reporting Standards (IFRS)

The consolidated interim financial statements of InTiCa Systems AG as of September 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 the 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 have been prepared for the nine-month period ending on September 30, 2013. Comparative data refer to the consolidated financial statements as of December 31, 2012 or the consolidated interim financial statements as of September 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 September 30, 2013 Segment sales and segment earnings

Segment	Communication Technology		Automotive Technology		Industrial Electronics		Total
in EUR ´000	9M 2013	9M 2012	9M 2013	9M 2012	9M 2013	9M 2012	9M 2013	9M 2012
Sales	4,603	4,711	16,303	13,933	7,687	8,881	28,593	27,525
EBIT	-541	-358	1,127	848	189	-116	775	374

Key financial figures	9M 2013 EUR ´000 or %	9M 2012 EUR ´000 or %	Change 2013 vs. 2012
EBITDA	4,306	3,643	+18.2%
Net margin	1.2%	0.1%
Pre-tax margin	1.5%	0.0%
Material cost ratio	59.4%	60.4%
Personnel cost ratio (incl. temporary workers)	16.9%	17.1%
EBIT margin	2.7%	1.4%
Gross profit margin	38.6%	36.4%

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

		Closing rates
	Sep 30, 2013	Dec 31, 2012	Sep 30, 2012
	EUR 1	EUR 1	EUR 1
Czech Republic	CZK 25.735	CZK 25.140	CZK 25.141
USA	USD 1.350	USD 1.319	USD 1.292
	Average rates
	Sep 30, 2013	Dec 31, 2012	Sep 30, 2012
	EUR 1	EUR 1	EUR 1
Czech Republic	CZK 25.751	CZK 25.143	CZK 25.133

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 nine months of 2013, Group sales increased to EUR 28,593 thousand, up from EUR 27,525 thousand in the first nine months of 2012. The 3.9 percent rise was entirely due to the positive sales trend in the Automotive Technology segment, whereas the Communication Technology and Industrial Electronics segments registered a drop in sales in the reporting period. EBITDA improved faster, rising 18.2 percent from EUR 3,643 thousand to EUR 4,306 million as a result of considerable cost savings. Comprehensive income at the end of the first nine months declined from EUR 432 thousand to EUR 104 thousand due to translation losses on the currency translation of foreign business operations.

Following a considerable year-on-year rise in the first six months, sales declined slightly year-on-year from EUR 9.5 million to EUR 9.1 million in the third quarter. The strong rise in sales revenue in the Automotive Technology segment did not fully offset the drop in the other two segments. However, since the improvement in cost structures was driven forward, EBITDA increased from EUR 1.2 million to EUR 1.3 million. After adjustment for currency translation losses on the currency translation of foreign business operations, comprehensive income was EUR 88 thousand in the third quarter of 2013 (Q3 2012: EUR 290 thousand).

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 56 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 reporting period. Consequently, current liabilities to banks increased from EUR 1,072 thousand to EUR 2,350 thousand in the reporting period while trade payables increased from EUR 1,347 thousand to EUR 1,831 thousand. By contrast, non-current liabilities to banks declined from EUR 8.931 thousand to EUR 8,615 thousand as a result of scheduled repayment instalments. Overall, non-current liabilities therefore dropped from EUR 10,575 thousand to EUR 10,146 thousand.

The net cash flow from operating activities decreased from EUR 1,517 thousand to EUR 1,211 thousand in the first nine months of 2013. The total cash outflow was EUR 1,961 thousand in the reporting period (2012: inflow of EUR 470 thousand). Cash and cash equivalents therefore declined from EUR 984 thousand as of December 31, 2012 to minus EUR 978 thousand as of September 30, 2013. Given the increase in sales, inventories increased from EUR 6,172 thousand to EUR 7,852 thousand in the reporting period. In line with this, trade receivables increased from EUR 4,722 thousand to EUR 6,272 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 (September 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 September 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 September 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 September 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, November 19, 2013

The Board of Directors

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

Walter Brückl Günther Kneidinger

Financial Calendar 2013

November 20, 2013 Publication of Interim Financial Statements for 9M 2013

December 4, 2013 Presentation at the MKK - Münchener Kapitalmarktkonferenz

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