InTiCa Systems AG

Quarterly Report • Nov 20, 2014

Interim Report 9M 2014

InTiCa Systems in the first nine months of 2014

Technologies for growth markets!

9M 2014 in figures

The Group	Q3 2013 EUR ´000	Q3 2014 EUR ´000	9M 2013 EUR ´000	9M 2014 EUR ´000	Change vs. 9M 2013
Sales	9,053	10,975	28,593	30,655	+7.2%
Net margin (net result for the period)	0.0%	1.9%	1.2%	2.0%	-
EBITDA	1,277	1,483	4,306	4,278	-0.7%
EBIT	76	351	775	990	+27.7%
EBT	-41	259	422	695	+64.7%
Net loss for the period	-2	203	356	612	+71.9%
Earnings per share (diluted/basic in EUR)	0.00	0.05	0.08	0.14	+71.9%
Total cash flow	8	-476	-1,961	-4,838	-
Net cash flow for operating activities	1,130	1,126	1,211	463	-61.8%
Capital expenditure	853	955	2,498	3,989	+59.7%

	Sep 30, 2013 EUR ´000	Dec 31, 2013 EUR ´000	Sep 30, 2014 EUR ´000	Change vs. Dec 31, 2013
Total assets	35,236	32,563	36,400	+11.8%
Equity	19,635	18,588	19,176	+3.2%
Equity ratio	56%	57%	53%	-
Number of employees (on the reporting date)	434	447	471	+5.4%

The Stock	9M 2013	2013	9M 2014
Closing price (in EUR)	3.18	4.35	4.31
Period high (in EUR)	3.52	4.51	6.00
Period low (in EUR)	2.80	2.80	3.86
Market capitalisation at end of period (in EUR million)	13.63	18.65	18.48
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 2014	4
Foreword by the Board of Directors	4
The Stock	6
InTiCa Systems Stock	6
Key data, Share Price Performance & Shareholder Structure	7
Interim Management Report of the Group	8
Economic report	8
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	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,

The business trend in the first nine months of this year was favourable for InTiCa Systems AG. The continued profitable growth was largely due to the good performance in the third quarter. Despite adverse economic conditions, we grew sales by more than 20 percent year-on-year in the third quarter and operating earnings more than tripled. Alongside the Automotive Technology segment, which is our main growth driver, this was mainly due to the trend in the Industrial Electronics segment. We see further potential for the development and commercialization of actuator coils for industrial transport facilities, gas combustion systems and exhaust gas regulation systems in the coming years.

Our efforts to broaden growth are therefore making good progress, even though sales in the Industrial Electronics segment declined slightly over the full nine-month reporting period. However, the improvement in the EBIT margin from 2.5 percent to 5.0 percent means that it is already close to the margin reported by the Automotive Technology segment. Here, the margin remained stable at a high level of 6.6 percent while sales in the first nine months rose at what seems to have become almost an established pace, advancing 24.2 percent to EUR 20.2 million. The Communication Technology segment continues to give us cause for concern as sales are declining and it is still in the red. In the future, the know-how we are gaining here will help us gain market access for new products in the area of filter technology produced by the other segments.

Taking all three segments together, sales increased 7 percent to a good EUR 30 million in the first nine months, the EBIT margin improved from 2.7 percent to 3.2 percent (EBIT: EUR 1.0 million), and comprehensive income was positive at EUR 0.6 million.

The positive development in the reporting period shows that the restructuring and repositioning of the company from a component supplier to a solution provider undertaken by Walter Brückl and Günther Kneidinger of the Board of Directors in recent years is entering the home strait.

The Chairman of the Board of Directors, Walter Brückl, therefore considers that he has completed his task and will be leaving the company by mutual agreement at the end of the year, but he will continue to support the company in an advisory capacity.

He will be succeeded by Dr. Gregor Wasle, whose role will be to drive forward the company's growth strategy with his colleague on the Board of Directors, Günther Kneidinger.

The Board of Directors can rely on the company's employees, whose commitment and identification are the key to the positive development of InTiCa Systems AG. We would like to thank them explicitly for that. We are also grateful to our shareholders for the confidence they place in us.

Passau, November 2014

Yours,

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

Walter Brückl Günther Kneidinger

InTiCa Systems' share price performance1)

Shares in InTiCa Systems AG started 2014 at EUR 4.40. A dynamic start to the year, with the share price rising to a year -to-date high of EUR 6.00 on January 7, was followed by a price correction between the middle and end of January. For the remainder of first half, the shares traded around the price at the start of the year, in a range of EUR 4.00 to EUR 4.70. At the end of July the share price dropped fell EUR 4.00 and on August 13 it dropped to EUR 3.86, the lowest point for the reporting period. It then rebounded and shares in InTiCa Systems AG ended the first nine months of 2014 at EUR 4.31 in Xetra trading on September 30, putting market capitalization at around EUR 18.5 million. The share initially continued to trade sideways after the end of the reporting period. The closing price on November 17, 2014 was EUR 4.40.

In the first nine months of 2014 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 4, 2014, shareholders were given information on fiscal 2013 and the present situation at InTiCa Systems AG. The presentation and text of the speech given at the AGM can be accessed on the company's redesigned homepage at Investor Relations/Publications [available in German only].

InTiCa Systems AG plans to give a presentation for investors, analysts and financial journalists at this year's Munich Capital Markets Conference (MKK). MKK is the biggest capital market conference in southern Germany and will be held on December 9-10, 2014.

Key Data on the stock

ISIN	DE0005874846
WKN	587484
Stock exchange symbol	IS7
Trading segment	Regulated Market
Transparency standard	Prime Standard
Designated Sponsor	BankM - biw AG
Research Coverage	Performaxx Research
Number of shares	4,287,000
Listed	XETRA® , Frankfurt, Hamburg, Berlin, Munich, Stuttgart, Düs seldorf

Shareholder structure

Thorsten Wagner	over 25%
Dr. Dr. Axel Diekmann	over 15%
bcm Invest GmbH	over 5%
Dr. Paul und Maria Grohs	over 3%
InTiCa Systems AG	1.5%
Management	less than 1%

As of November 17, 2014

Directors' Dealings in Q3

Date	Reporting person	Board	Buy/Sale	Amount	Price in EUR	Volume in EUR Exchange
31.07.2014	Werner Paletschek	Supervisory Board	Buy	1,000	4.05	4,050.00	Frankfurt
08.08.2014	Günther Kneidinger	Management Board	Buy	1,000	3.849	3,849.00	Quotrix

Interim Management Report of the Group

for the period from January 1 to September 30, 2014

Economic report

General economic conditions

The German economy made a strong start to the year but has cooled considerably since then. Economic output stagnated in the third quarter and the leading indicators show little hope of improvement up to year end. In their autumn report, the leading German economic research institutes therefore predicted growth of only 1.2 percent in 2014 as a whole. In view of the good financing conditions, rising capacity utilization and the fact that corporate sentiment was positive for a long time, the economic downswing and above all its extent have come as a big surprise. However, there is currently no impetus coming from either the domestic market or abroad. The continued low momentum in the euro zone and the moderate pace of growth in the global economy are holding back development.

In October, the International Monetary Fund (IMF) therefore reduced its growth forecast for the global economy to 3.3 percent, 0.4 percentage points below the forecast given in its World Economic Outlook (WEO) in April. Some emerging markets in Latin America and the Middle East in particular posted a downward trend and the IMF is also predicting a slight drop in growth in China. The situation is different in the USA. Here, the accommodating monetary policy, positive financial market conditions and the recovery of the housing market still offer favourable conditions that suggest the upswing will continue.

Over the past nine months, the automotive market, which is InTiCa Systems' most important market, has been far more dynamic than the economy as a whole, both in Germany and worldwide. In Germany, new car registrations have risen 3 percent since the start of the year, exports by German car producers are up 4 percent and orders have increased by 6 percent. Internationally, China was the leading light with more than 13 million new vehicles and a growth rate of around 13 percent in the reporting period. The US and Japanese markets and the rest of Europe also developed very well, with growth rates of between 5 and 6 percent. The car industry only registered declines in Russia and Brazil.

By contrast, the economic slowdown is increasingly impacting the electrical and electronics industry. Consequently, there was a further substantial reduction in business sentiment in the sector to the lowest level since April 2013. The automation, electrical drives and energy technology segments, which are particularly important for InTiCa, only just managed to remain in positive territory. The weak order situation is giving cause for concern as new orders have only increased by 0.3 percent so far this year. Overall, sector sales increased slightly, by 2.1 percent, in the first eight months of this year. Foreign sales grew faster than domestic sales.

The ITC industry is proving stable in the present situation. At the end of October, the high-tech industry association BITKOM therefore confirmed its forecast for the full year. Based on updated data, the association still expects sales to be around EUR 153.4 billion, a rise of 1.6 percent. The trend is particularly pleasing in the telecoms infrastructure market, which is of relevance for InTiCa. Driven by high investment by network operators to expand the broadband network, BITKOM expects sales to rise by 3.8 percent to EUR 6.3 billion by year-end.

Given the serious geopolitical tension in several parts of the world, there is a still a risk of an economic downswing. Negative effects could be triggered by rising oil prices, higher long-term interest rates, adverse shocks and a cooling of the financial markets. Since the developed economies lack robustness, there is therefore a risk that the global dip in growth could continue.

Significant events in the third quarter

Change on the Board of Directors of InTiCa Systems AG On September 30, 2014, InTiCa Systems AG issued an adhoc announcing that the Chairman of the Board of Directors, Mr. Walter Brückl, will be leaving the company on December 31, 2014. Mr. Brückl has played a key role in the successful restructuring, strategic refocusing and consolidation of the company over the past six years and is leaving the company by mutual agreement.

Dr. Gregor Wasle has been appointed to the Board of Directors of InTiCa Systems AG with effect from January 1, 2015. Dr. Wasle will be spokesman for the Board of Directors and will take over the functions of Walter Brückl. Together with Mr. Günther Kneidinger of the Board of Directors he will be responsible for driving forward the company's growth strategy. Since 2009 Dr. Wasle has been Managing Director of the Austrian company ALUTECH GmbH, which belongs to the Salzburger Aluminium Group (SAG).

Earnings, asset and financial position

In view of the continued strong growth in the Automotive Technology segment, the InTiCa Group grew sales by more than 7% year-on-year to EUR 30.7 million in the first nine months of this year. The Industrial Electronics segment also reported a considerable rise in sales in the third quarter. While a higher headcount than in the prior-year period led to a rise in the personnel expense ratio, the material expense ratio declined further. EBITDA was unchanged from the previous year at EUR 4.3 million, but EBIT rose considerably to EUR 1.0 million (9M 2013: EUR 0.8 million). Overall, the nine-month result improved considerably to EUR 0.6 million (9M 2013: EUR 0.4 million).

The operating cash flow was EUR 0.5 million in the reporting period (9M 2013: EUR 1.2 million). However, the increase in receivables indicates that there will be a higher cash inflow in the following quarters. In addition, higher capital expenditure for property, plant and equipment, mainly for the Automotive Technology segment, and repayments instalments on loans resulted in an overall cash outflow of around EUR 4.8 million in the reporting period (9M 2013: outflow of EUR 2.0 million). The equity ratio declined to 53% in the reporting period (December 31, 2013: 57%).

Overall, the nine-month figures reflect the Group's sound growth. The development and commercialization of innovative new products is increasingly placing growth on a broader basis and reducing dependence on individual markets. The sustained positive development in the reporting period shows that the strategic repositioning of the company from a component supplier to a solution provider in recent months and years is entering the home strait.

Earnings position

InTiCa Systems AG grew consolidated sales by 7.2% yearon-year in the first nine months of 2014 to EUR 30.7 million (9M 2013: EUR 28.6 million). The increase in sales revenues was attributable to the continued dynamic trend in the Automotive Technology segment, which lifted sales 24.2% to EUR 20.2 million (9M 2013: EUR 16.3 million). By contrast, in the other segments sales were lower than in the prior-year period. In the Communication Technology segment revenues dropped 34.5% to EUR 3.0 million (9M 2013: EUR 4.6 million) and in the Industrial Electronics segment they fell 3.7% to EUR 7.4 million (9M 2013: EUR 7.7 million). However, initially there was a clear upward trend in the Industrial Electronics segment. The third quarter was very successful with segment sales up 48% year-on-year at EUR 2.8 million (Q3 2013: EUR 1.9 million). This was achieved entirely with established products as the first serial sales resulting from the development and commercialization of actuator coils for industrial transport facilities, gas combustion systems and exhaust gas regulation systems are not expected until the second half of 2015.

Material expenses amounted to 58.2% of total output, which was below the prior-year level (9M 2013: 59.4%). By contrast, the personnel expense ratio rose from 16.9% to 18.1% as a result of an increase in the headcount. Other operating expenses increased from EUR 3.1 million in the prior-year period to EUR 3.6 million and include expenses of EUR 0.3 million (9M 2013: EUR 0.4 million) for agency staff at the facility in Prachatice. Depreciation and amortization of property, plant and equipment and intangible assets totalled EUR 3.3 million, which was below the previous year's level (9M 2013: EUR 3.5 million). Research and development expenses were on a par with the previous year at around EUR 1.6 million. Development work focused principally on the Automotive Technology and Industrial Electronics segments.

EBITDA was EUR 4.3 million in the first nine months of 2014 (9M 2013: EUR 4.3 million) so the EBITDA margin dropped from 15.1% to 14.0%. By contrast, the Group's EBIT rose from EUR 0.8 million to EUR 1.0 million in the reporting period, and the EBIT margin therefore rose from 2.7% to 3.2%. EBIT improved to EUR 1.3 million in the first nine months of 2014 in the Automotive Technology segment (9M 2013: EUR 1.1 million) and to EUR 0.4 million in the Industrial Electronics segment (9M 2013: EUR 0.2 million). By contrast, in the Communications Technology segment it remained negative at minus EUR 0.7 million (9M 2013: minus EUR 0.5 million).

The financial result was minus EUR 0.3 million in the first nine months of 2014 (9M 2013: minus EUR 0.4 million). Tax expense was EUR 83 thousand in the reporting period (9M 2013: EUR 66 thousand). The profit for the first nine months of 2014 therefore improved considerably to EUR 0.6 million (9M 2013: EUR 0.4 million) and earnings per share were EUR 0.14 (9M 2013: EUR 0.08).

As a result of currency translation losses of EUR 23 thousand (9M 2013: EUR 252 thousand) from the translation of foreign business operations, comprehensive income was EUR 0.6 million in the first nine months of 2014, compared with EUR 0.1 thousand in the first nine months of 2013.

Non-current assets

Non-current assets increased to EUR 19.3 million as of September 30, 2014 (December 31, 2013: EUR 18.7 million) because depreciation exceeded capital expenditures for property, plant and equipment. Specifically, property, plant and equipment rose to EUR 13.6 million as of September 30, 2014 (December 31, 2013: EUR 12.9 million), while intangible assets declined slightly to EUR 4.7 million (December 31, 2013: EUR 4.8 million). Deferred taxes also decreased slightly to EUR 1.0 million at the end of the reporting period (December 31, 2013: EUR 1.1 million).

Current assets

Current assets rose considerably in the reporting period to EUR 17.1 million on September 30, 2014 (December 31, 2014: EUR 13.8 million). This was principally due to the increase in trade receivables from EUR 5.2 million to EUR 7.9 million and in inventories from EUR 7.2 million to EUR 8.8 million. At the same time, cash and cash equivalents declined to EUR 97 thousand (December 31, 2013: EUR 1.3 million).

Liabilities

Current liabilities increased to EUR 9.9 million in the first nine months of 2014 (December 31, 2013: EUR 4.9 million). This was mainly due to the increase in current liabilities to banks from EUR 2.2 million to EUR 6.3 million and the rise in trade payables from EUR 1.6 million to EUR 2.6 million.

Non-current liabilities decreased from EUR 9.1 million on December 31, 2013 to EUR 7.3 million on September 30, 2014. Long-term liabilities to banks were reduced from EUR 7.6 million to around EUR 5.8 million. Deferred taxes were unchanged from December 31, 2013 at EUR 1.5 million.

Equity

Equity totalled EUR 19.2 million on September 30, 2014 (December 31, 2013: EUR 18.6 million). Retained earnings increased to EUR 1.1 million in the reporting period (December 31, 2013: EUR 0.5 million) due to the profit for the period. The capital stock of EUR 4.3 million, treasury stock of EUR 64 thousand, capital reserves of EUR 15.4 million and currency translation reserve of minus EUR 1.6 million were unchanged from December 31, 2013. Total equity and liabilities increased to EUR 36.4 million as of September 30, 2014 (December 31, 2013: EUR 32.6 million) and the equity ratio therefore dropped from 57% to 53%.

Liquidity and cash flow statement

The net cash inflow from operating activities was EUR 0.5 million in the first nine months of 2014 (9M 2013: inflow of EUR 1.2 million). The year-on-year decline was mainly attributable to the sharp increase in trade receivables in the reporting period, which should result in cash inflows in the final quarter of this year and the first quarter of 2015. Excluding interest payments, the cash provided by operating activities was EUR 0.8 million (9M 2013: EUR 1.6 million).

The net cash outflow for investing activities was EUR 4.0 million in the reporting period (9M 2013: outflow of EUR 2.5 million). Investment in intangible assets was unchanged from the prior year at EUR 1.0 million (9M 2013: EUR 1.1 million), while investment in property, plant and equipment increased to EUR 3.0 million (9M 2013: EUR 1.4 million). The capital expenditures for property, plant and equipment related principally to expansion of production facilities for the Automotive Technology segment. Overall, the company plans to invest around EUR 6.0 million in 2014 to raise capacity, mainly in the Automotive Technology segment.

The net cash outflow for financing activities was EUR 1.3 million in the first nine months of 2014 (9M 2013: EUR 0.7 million). The cash outflows in the reporting period included EUR 1.3 million for loan repayments (9M 2013: outflow of EUR 0.6 million) and EUR 65 thousand for leasing expense (9M 2013: outflow of EUR 61 thousand).

Cash and cash equivalents (less overdrafts) were minus EUR 4.4 million as of September 30, 2014 (September 30, 2013: minus EUR 1.0 million). InTiCa Systems has assured credit facilities which can be drawn at any time totalling EUR 7.1 million.

Employees

The headcount increased significantly in the first nine months of 2014 to 471 on September 30, including 43 agency staff (September 30, 2013: 434 employees, including 55 agency staff). On average, the Group had 464 employees in the reporting period (9M 2013: 432; including agency staff in both cases).

Risks and opportunities

The management report in the annual report for 2013 provides full details of risk factors that could affect the business performance of InTiCa Systems in section 4 "Risk management and risk report", while business potential is discussed in section 5 "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, 2014.

Outlook

The Automotive Technology segment remains InTiCa Systems' main driving force in 2014. The company has successfully achieved its goal of being perceived as a development partner. In addition, in recent months a number of orders have been received for serial production of new products such as stators for hybrid cars and actuators for fuel injection systems. In the Industrial Electronics and Communication Technology segments there are also opportunities to enter additional markets thanks to new products. Together with increased vertical integration and systems solution competence, offering customer-specific solutions is a key competitive advantage for InTiCa Systems. The Board of Directors therefore believes that in terms of costs and products InTiCa Systems AG is well positioned. Orders on hand amounted to around EUR 42 million on September 30, 2014, which was well above the prior-year level of around EUR 38 million.

The Board of Directors currently assumes that in 2014 there will be a further rise in sales and earnings compared with 2013. The business trend in the first nine months of this year was in line with the Board of Directors' expectations. Given the signs of economic slowdown and some additional cost factors, especially higher supply and transport expenses and consulting fees in connection with management changes, the Board of Directors expects that consolidated sales will be over EUR 41 million and the EBIT margin will be around 3%.

Further information on the segments can be found in the annual report for 2013 in section 6 "Outlook".

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, 2014 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 interim 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, 2014

Consolidated Balance Sheet

of InTiCa Systems AG in accordance with IFRS as of September 30, 2014

Assets	Sep 30, 2014 EUR ´000	Dec 31, 2013 EUR ´000
Non-current assets
Intangible assets	4,706	4,760
Property, plant and equipment	13,574	12,855
Deferred taxes	1,009	1,109
Total non-current assets	19,289	18,724
Current assets
Inventories	8,814	7,154
Trade receivables	7,877	5,165
Tax assets	2	2
Other financial assets	131	7
Other current receivables	190	198
Cash and cash equivalents	97	1,313
Total current assets	17,111	13,839
Total assets	36,400	32,563

Equity and liabilities	Sep 30, 2014 EUR ´000	Dec 31, 2013 EUR ´000
Equity
Capital stock	4,287	4,287
Treasury stock	-64	-64
General capital reserve	15,389	15,389
Profit reserve	1,145	534
Currency translation reserve	-1,581	-1,558
Total equity	19,176	18,588
Non-current liabilities
Financial liabilities	5,833	7,594
Deferred taxes	1,501	1,518
Total non-current liabilities	7,334	9,112
Current liabilities
Other current provisions	636	622
Financial liabilities	6,314	2,247
Trade payables	2,551	1,626
Other financial liabilities	187	194
Other current liabilities	202	174
Total current liabilities	9,890	4,863
Total equity and liabilities	36,400	32,563
Equity ratio	53%	57%

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, 2014

	Q3 2014 TEUR	Q3 2013 TEUR	9M 2014 TEUR	9M 2013 TEUR	Change 2014 vs. 2013
Sales	10,975	9,053	30,655	28,593	+7.2%
Other operating income	86	78	165	229	-28.0%
Changes in finished goods and work in process	230	138	247	23	+973.9%
Other own costs capitalized	295	315	910	945	-3.7%
Material expense	6,954	5,611	18,519	17,570	+5.4%
Personnel expense	1,883	1,629	5,539	4,843	+14.4%
Depreciation and amortization	1,132	1,201	3,288	3,531	-6.9%
Other expenses	1,266	1,067	3,641	3,071	+18.6%
Operating profit (EBIT)	351	76	990	775	+27.7%
Cost of financing	92	118	295	356	-17.1%
Other financial income	0	1	0	3	-
Profit before taxes	259	-41	695	422	+64.7%
Income taxes	56	-39	83	66	+25.8%
Net profit for the period	203	-2	612	356	+71.9%
Other comprehensive income
Exchange differences from translating foreign business operations	-13	90	-23	-252	-
Other comprehensive income, after taxes	-13	90	-23	-252	-
Total comprehensive income for the period	190	88	589	104	+466.4%
Earnings per share (diluted/basic in EUR)	0.05	0.00	0.14	0.08	+71.9%
EBITDA	1,483	1,277	4,278	4,306	-0.7%

Consolidated Cash Flow Statement

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to September 30, 2014

	Jan 1 - Sep 30, 2014 EUR ´000	Jan 1 - Sep 30, 2013 EUR ´000
Cash flow from operating activities
Net profit for the period	612	356
Income tax expenditures / receipts	83	66
Cash outflow for borrowing costs	295	356
Income from financial investments	0	-3
Depreciation and amortization of non-current assets	3,288	3,531
Other non-cash transactions
Net currency gains/losses	11	43
Increase/decrease in assets not attributable to financing or investing activities
Inventories Trade receivables Other assets	-1,660 -2,712 -118	-1,680 -1,549 -416
Increase/decrease in liabilities not attributable to financing or investing activities
Other current provisions Trade payables Other liabilities	14 925 47	250 484 150
Cash flow from operating activities	785	1,588
Cash outflow for income taxes	-1	11
Cash outflow for interest payments	-321	-388
Net cash flow from operating activities	463	1,211
Cash flow from investing activities
Cash inflow from interest payments	3	4
Cash outflow for intangible assets	-1,018	-1,061
Cash outflow for property, plant and equipment	-2,971	-1,437
Net cash flow from investing activities	-3,986	-2,494
Cash flow from financing activities
Cash outflow for loan repayment installments	-1,250	-617
Cash outflow for liabilities under finance leases	-65	-61
Net cash flow from financing activities	-1,315	-678
Total cash flow	-4,838	-1,961
Cash and cash equivalents at start of period	404	984
Impact of changes in exchange rates on cash and cash equivalents held in foreign currencies	0	-1
Cash and cash equivalents at end of period	-4,434	-978

Consolidated Statement of Changes in Equity

of InTiCa Systems AG in accordance with IFRS for the period from January 1 to September 30, 2014

	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, 2013	4,287	-64	15,389	60	-141	19,531
Net result for 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
As of January 1, 2014	4,287	-64	15,389	534	-1,558	18,588
Net result 9M 2014	0	0	0	612	0	612
Other comprehensive income, after taxes 9M 2014	0	0	0	0	-23	-23
Total comprehensive income for 9M 2014	0	0	0	612	-23	589
As of September 30, 2014	4,287	-64	15,389	1,146	-1,581	19,177

Consolidated Interim Financial Statements Notes to the

for the period from January 1 to September 30, 2014

Accounting based on the International Financial Reporting Standards (IFRS)

The consolidated interim financial statements of InTiCa Systems AG as of September 30, 2014, 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 2013, 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, 2014. Comparative data refer to the consolidated financial statements as of December 31, 2013 or the consolidated interim financial statements as of September 30, 2013. 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 2013. 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 2013. 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 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, 2014 Segment sales and segment earnings

Segment	Communication Technology		Automotive Technology		Industrial Electronics		Total
in EUR ´000	9M 2014	9M 2013	9M 2014	9M 2013	9M 2014	9M 2013	9M 2014	9M 2013
Sales	3,014	4,603	20,241	16,303	7,400	7,687	30,655	28,593
EBIT	-709	-541	1,327	1,127	372	189	990	775

Key financial figures	9M 2014 EUR ´000 or %	9M 2013 EUR ´000 or %	Change 2014 vs. 2013
EBITDA	4,278	4,306	-0.7%
Net margin	2.0%	1.2%
Pre-tax margin	2.3%	1.5%
Material cost ratio (in terms of total output)	58.2%	59.4%
Personnel cost ratio	18.1%	16.9%
EBIT margin	3.2%	2.7%
Gross profit margin	40.4%	38.6%

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

		Closing rates
	Sep 30, 2014	Dec 31, 2013	Sep 30, 2013
	EUR 1	EUR 1	EUR 1
Czech Republic	CZK 27.500	CZK 27.425	CZK 25.735
USA	USD 1.259	USD 1.377	USD 1.350
	Average rates
	Sep 30, 2014	Dec 31, 2013	Sep 30, 2013
	EUR 1	EUR 1	EUR 1
Czech Republic	CZK 27.504	CZK 25.974	CZK 25.751
USA	USD 1.355	USD 1.328	USD 1.317

Segment information

The notes to the consolidated financial statements in the annual report for 2013 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, 2013.

Consolidated Income statement

Group sales revenues increased from EUR 28,593 thousand to EUR 30,655 thousand in the first nine months of 2014. Only the Automotive Technology segment contributed to sales growth, while Industrial Electronics and Communication Technology reported lower sales. EBITDA declined slightly from EUR 4,306 thousand to EUR 4,278 thousand. Comprehensive income increased to EUR 589 thousand in the first nine months, up from EUR 104 thousand in the first nine months of 2013.

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. InTiCa Systems' equity ratio of around 53% as of September 30, 2014 (December 31, 2013: 57%) shows that the company is still soundly financed.

The net cash inflow from operating activities was EUR 463 thousand in the first nine months of 2014 (9M 2013: inflow of EUR 1,211 thousand). The total cash outflow in the reporting period was EUR 4,838 thousand (9M 2013: outflow of EUR 1,961 thousand). Cash and cash equivalents therefore declined from EUR 404 thousand as of December 31, 2013 to minus EUR 4,434 thousand as of September 30, 2014. In addition, trade receivables increased from EUR 5,165 thousand to EUR 7,877 thousand in the reporting period. At the same time, other current liabilities to banks increased to EUR 6,314 thousand (December 31, 2013: EUR 2,247 thousand) and trade payables rose to EUR 2,551

thousand (December 31, 2013: EUR 1,626 thousand) thousand).

Events after the reporting date

Material events after the reporting date (September 30, 2014) 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 Companies Act (AktG), the Board of Directors and Supervisory Board have made their current declaration of conformity with the German Corporate Governance Code and the declaration on corporate management pursuant to sec. 289a of the German Commercial Code (HGB) available permanently to shareholders on the company's website at Investor Relations/Corporate Governance.

Authorization of the Board of Directors to issue or buy back shares

Under sec. 3 paragraph 3 of the articles of incorporation, the Board of Directors is authorized, until July 5, 2017, to increase the company's capital stock, with the consent of the Supervisory Board, by up to EUR 2,143,500.00 by issuing new shares for cash or contributions in kind in one or more tranches (authorized capital 2012/I). Further details are given in sec. 3 paragraph 3 of the company's articles of incorporation, which can be downloaded from the company's website at Company/Downloads.

On the basis of the resolution of the Annual General Meeting of May 29, 2008, the company was authorized, until November 28, 2009, to repurchase up to 10% of the capital stock, amounting to 428,700 shares at the date of the resolution. This resolution was used to purchase 263,889 shares in the company. As of September 31, 2014, InTiCa Systems still had treasury stock amounting to 64,430 shares (December 31, 2013: 64,430).

On the basis of a resolution adopted by the Annual General Meeting on July 6, 2012, the company is authorized, up to July 5, 2017, to purchase its own shares, in one or more tranches, up to a total of 10% of the capital stock at the time of adoption of this resolution or, if the capital stock is lower when this authorization is utilized, of the capital stock at the time when it is utilized.

Related party transactions

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

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 Companies Act (AktG).

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 Companies 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.

InTiCa Systems has a EUR 5 million loan which gives the lender a right of termination in the event of a change in the borrower's shareholder or ownership structure such that the shareholders or owners relinquish control over the borrower during the term of the loan or a person or group of persons acting jointly acquire more than 50% of the voting rights and/

or more than 50% of the capital of the borrower, unless the prior consent of the lender is obtained.

In addition, the creditor of a EUR 2 million overdraft facility has an extraordinary right to terminate this facility. This right takes effect if one other person acquires at least 30 percent of the creditor's voting rights and the parties cannot reach agreement on new terms.

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 interim financial statements, prepared in accordance with the principles of proper book-keeping, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and that the interim management report for 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.

Passau, November 18, 2014

The Board of Directors

Chairman of the Member of the

Walter Brückl Günther Kneidinger Board of Directors Board of Directors

Financial Calendar 2014

November 20, 2014 Publication of Interim Financial Statements for Q3 2014

December 9-10, 2014 Presentation at the MKK - Münchener Kapitalmarktkonfrenz

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

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