InTiCa Systems AG

Quarterly Report • May 31, 2024

INTERIM REPORT Q1 2024

Q1 2024 in figures

The Group	Q1 2022 EUR ´000	Q1 2023 EUR ´000	Q1 2024 EUR ´000	Change vs. Q1 2023
Sales	26,924	23,736	20,054	-15.5%
Net margin (net result for the period)	2.4%	0.9%	-0.4%	-
EBITDA	2,497	2,101	1,998	-4.9%
EBIT	1,019	615	372	-39.5%
EBT	899	325	-86	-
Net result for the period	649	221	-88	-
Earnings per share (diluted/basic in EUR)	0.15	0.05	-0.02	-
Total cash flow	-3,144	-4,667	-465	-
Net cash flow for operating activities	-269	-2,964	-9	-
Capital expenditure	1,701	1,697	1,271	-25.1%

	Mar 31, 2023 EUR ´000	Dec 31, 2023 EUR ´000	Mar 31, 2024 EUR ´000	Change vs. Dec 31, 2023
Total assets	70,506	67,722	69,325	+2.4%
Equity	22,816	20,827	20,511	-1.5%
Equity ratio	32%	31%	30%	-
Number of employees incl. agency staff	829	761	708	-7.0%

The Stock	Q1 2023	2023	Q1 2024
Closing price (in EUR)	7.70	6.40	4.18
Period high (in EUR)	8.60	8.60	6.45
Period low (in EUR)	7.55	4.95	3.94
Market capitalisation at end of period (in EUR million)	33.01	27.44	17.92
Number of shares	4,287,000	4,287,000	4,287,000

The stock prices are closing prices on XETRA.

InTiCa Systems in the First Three Months of 2024	4
Foreword by the Board of Directors	4
Board of Directors & Supervisory Board	6
The Stock	7
InTiCa Systems Stock	7
Key data, Share Price Performance & Shareholder Structure	8
Interim Management Report of the Group	9
Economic report	9
Earnings, Asset and Financial Position	10
Risks and Opportunities	12
Outlook	12
Consolidated Interim Financial Statements Q1 2024	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
Other Information	20
Segment Report	22
Responsibility Statement	23
Financial Calendar	24

Dear shareholders, employees and business associates,

"There is nothing permanent except change." This muchquoted aphorism by the philosopher Heraclitus is about 2,500 years old. And yet it is a very apt description of the business conditions that we at InTiCa have been facing for many months. The first quarter of 2024 was no exception, as can be seen by looking at the development of our segments.

For a large part of the past financial year, it was the Industry & Infrastructure segment that stabilized Group sales thanks to its strong growth, and at least partly offset the difficult offtake situation in the Automotive segment. The market only weakened at the end of the year as a result of changes in subsidies and mounting competition from Asia.

In the first quarter, the situation was exacerbated by a sharp downturn in the electro and digital industry, which had been robust for so long. Order intake, production, sales: the sector data took a clear turn for the worse. Our customers in the infrastructure sector also revised their offtake figures sharply downwards in the reporting period.

On the other hand, the automotive industry showed at least partial signs of recovery. However, even that was caused by a sudden change. While electric vehicles were often the only growth spark in the car market in recent reporting periods, they have not yet recovered from the abrupt withdrawal of subsidies. Instead, in the first quarter, it was hybrids and combustion engines that injected new momentum into the sector. At InTiCa Systems, we registered particularly strong demand for stator coils for hybrid vehicles and coils for dampeners in chassis products.

If change is the only constant, flexibility is required. For a long time, our strategy has therefore been to diversify our product portfolio and specifically generate and utilize synergies. For example, the new products for special electric drives for a European producer and bidirectional echarging systems of a major US producer are derived from both segments. On its own, that does not guarantee an increase in sales and earnings, but it does at least provide a certain amount of stability and security. With Group sales of EUR 20.1 million and an EBIT margin of 1.9% at the end of the first three months, we are on track for our full-year forecast.

By gaining access to new areas of business and building up a new business for inductive specialty products, we want to become even less dependent on individual market segments in future. The first, small orders have been acquired since the beginning of 2024 and we see potential for mid-sized serial production in the future. Compared with large-scale serial business, the speciality products area commands above-average margins.

That is particularly important as pressure on margins remains high in the Automotive segment and the flexibility currently required means additional costs for production, personnel and materials management. At the same time, continuous lean management and cost management efforts led to a reduction in the ratio of material costs to total output in the first quarter. Despite pay rises, we also kept the increase in the personnel expense ratio to a minimum.

For the remainder of this year, customers in both segments anticipate that there will be a slight recovery starting in the summer. The company takes a cautious stance on this information and always compares it with the actual order situation. In view of the electrification of key areas of the economy, our fundamental growth drivers remain intact and InTiCa Systems considers that it is still well positioned to benefit from the expected demand for innovative esolutions.

And since the way up and the way down are one and the same according to Heraclitus, we remain optimistic that our business performance and share price will soon be heading in an upward direction again. We would like to thank our shareholders most sincerely their trust in us in these challenging times, our business partners for their good collaboration, and naturally our employees for their hard work and ideas.

Passau, May 2024

Yours,

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

Dr. Gregor Wasle Bernhard Griesbeck

Company Boards

Board of Directors

Gregor Wasle Chairman of the Board of Directors Dipl.-Ing. Dr. techn.

Engineering graduate Strategy, investor relations, R&D, production, finance, human resources and

Bernhard Griesbeck Member of the Board of Directors Business administration graduate (FH)

Sales and logistics centre

Udo Zimmer Chairman Business administration graduate Rottach-Egern

• - Managing Director of
• GUBOR Schokoladen GmbH,
• - Managing Director of Hans Riegelein GmbH & Co. KG
• - Managing Director of
• Rübezahl Schokoladen GmbH & Co. KG

Supervisory Board

Werner Paletschek Deputy Chairman Business administration graduate Fürstenzell

- Managing director of OWP Brillen GmbH

Christian Fürst Member of the Supervisory Board Business administration graduate Thyrnau

• - Managing partner of ziel management consulting gmbh
• - Managing partner of Fürst Reisen GmbH & Co. KG
• - Chairman of the Supervisory Board of Electrovac AG
• - Advisory Board of Eberspächer Gruppe GmbH & Co. KG
• - Advisory Board of Karl Bach GmbH & Co. KG

InTiCa Systems' share price performance1)

Having ended 2023 at EUR 6.40, shares in InTiCa traded sideways in a range of EUR 6.00 to EUR 6.50 in the first weeks of 2024. At their highest point, the Xetra closing price was EUR 6.40. At the end of January, the share price dropped below EUR 6 and traded between EUR 5.00 and EUR 6.00 until mid-February. A renewed setback in mid-February pushed the price down to a low for the period of EUR 3.94 on March 1, 2024. Until the end of March, the share price fluctuated between EUR 4.00 and EUR 4.50 and ended the first quarter of 2024 at EUR 4.18, putting the market capitalization of InTiCa Systems SE at EUR 17.9 million.

In the first three months of 2024, we provided timely information for our shareholders and the general public on current business trends, specific events and the company's overall prospects. A press conference is planned to coincide with the soon coming publication of the Annual Report on 2023 and the presentation will be available for download from the homepage under Investor Relations/ Bilanzpressekonferenzen (German only). The date for this year's Annual General Meeting, which will be held virtually as in previous years, will be announced shortly.

Key data on the share

ISIN	DE0005874846
WKN	587484
Stock market symbol	IS7
Trading segment	Regulated Market
Transparency level	Prime Standard
Designated Sponsor	BankM AG
Research Coverage	SMC Research
No. of shares	4,287,000
Trading exchanges	XETRA® , Frankfurt, Hamburg, Berlin, München, Stuttgart, Düsseldorf

Shareholder structure

Dr. Dr. Axel Diekmann	over 30%
Thorsten Wagner	over 25%
Tom Hiss	over 5%
Treasury stock	1.5%
Management	less than 1%

As of May 15, 2024

Share price performance

Economic report

General economic conditions

In their spring report 2024, the German Council of Economic Experts reports that the global economy started the year with renewed strength. That was due in particular to a significant recovery in global trade in goods. At the same time, global industrial output is on the rise. Despite high interest rates and increased geopolitical uncertainty, the main drivers of global economic growth are the USA, China and India. By contrast, only weak growth is expected in Latin America. Overall, the Council of Economic Experts expects global GDP to expand by 2.6% in 2024. Rising real wages and the upswing in the global economy should also boost demand in the euro zone in the medium term. The tightening of monetary policy has proven effective and the first interest rate cuts are possible in the coming months. Financing conditions for companies should therefore improve. Nevertheless, only moderate growth of 0.8% is currently predicted for the euro zone. One reason for this cautious forecast is the delayed recovery in Germany. While German GDP fell by 0.5% in the fourth quarter of 2023 compared with the previous quarter, initial estimates indicate a slight increase of 0.2% in Q1 2024. The Council of Economic Experts forecasts growth of this amount for the whole year. It therefore revised its forecast downwards by 0.5 percentage points compared with autumn 2023. In particular, increases in labour costs, persistently high industrial energy prices and the demographically driven reduction in momentum on the labour market are continuing to hold back macroeconomic growth in Germany.

Market and market environment

The German Automotive Industry Association (VDA) reports that, apart from the Japanese market, which has not managed to continue the 2023 growth trend, business conditions in the global automotive industry developed positively in the first quarter of 2024. The Chinese market posted a particularly dynamic development, with new registrations rising 13.0% year-on-year to 4.8 million vehicles between January and March. The challenging macroeconomic situation in China has not yet had an adverse effect on car sales. The USA also reported a considerable increase in sales of light vehicles (passenger cars and light trucks) to 15.5 million units (+5.1%) in the first quarter. Benefiting from solid economic growth and the robust labour market, just over 3.7 million vehicles were sold. On the European car market (EU & EFTA & UK), 3.4 million new cars were registered in the first quarter of this year. That was 4.9% more than in the first quarter of 2023. However, the trend turned negative in March and the shortfall compared with the pre-crisis year 2019 is still 18%. Following these three large markets, India (+11.5%), Brazil (+10.8%) and Mexico (+11.0%) also contributed to the positive overall global trend. In Germany, the picture was mixed in the first quarter. While sector output declined by 9%, orders increased by 6% and new registrations rose by 4%, despite a slump of 14% in the market for battery electric vehicles (BEV) following the abrupt ending of subsidies for privately owned electric vehicles. The simultaneous 20% increase in demand for plug-in hybrids (PHEV) could not prevent new registrations of electric cars dropping by 5% overall compared with the prior-year period. In April, there was an – in some cases significant – improvement in the German automotive market at all levels, but compared with April 2023, the month had three additional working days. The development of the business climate has recently been more positive. In particular, business expectations were far less pessimistic in April. However, companies still consider orders on hand to be relatively low and complain that a lack of orders is holding back production.

At the beginning of 2024, the German electro and digital industry was unable to continue the dynamic growth seen in the previous year. According to the industry association ZVEI, in the first quarter, aggregate sector sales were down 8.9% year-on-year, with domestic sales (-9.6%) dropping faster than foreign sales (-8.3%). Price-adjusted output actually decreased by 10.8% in the reporting period and sector-wide capacity utilization was 80.5% at the start of the second quarter. The order situation was also negative: across the sector, new orders decreased by 13.5% year-onyear in the first quarter. There was a significant drop in both domestic orders (-15.2%) and foreign orders (-12.1%). In April, roughly one in two companies in the sector reported a lack of orders and this is currently seen as the biggest factor hampering production, well ahead of supply-side bottleneck factors such as the shortage of skilled workers and scarcity of materials. The recent very slight increase in order reach from 4.1 to 4.2 (production) months is small comfort. In all, there was a renewed slight deterioration in the business climate in the German electro and digital industry in April 2024, following four consecutive increases. Both the assessment of the present situation and general business expectations were less favourable than in March and were clearly negative. Only export expectations were positive on balance, although aggregate sector exports slipped 4.3% year-on-year in the first three months. Without the revival of exports to China, the decline would have been even greater because, apart form China, Spain was the only country among the ten largest individual markets where the German electro and digital industry delivered more in the first quarter of 2024 than in the first quarter of 2023.

Significant events in the reporting period

The Supervisory Board of InTiCa Systems SE appointed Mr. Bernhard Griesbeck to the company's Board of Directors with effect from January 15, 2024. He succeeds the longstanding board member Mr. Günther Kneidinger, who left the Board of Directors by mutual agreement on September 30, 2023.

There were no other events of material significance for the company or its assets, financial position or results of operations in the reporting period.

Earnings, asset and financial position

As expected, InTiCa Systems SE made a subdued start to 2024. In the Industry & Infrastructure segment in particular, the market downturn has intensified further. This trend gathered pace at the beginning of this year, bringing a downward adjustment of order offtake figures. In the Automotive segment sales figures for hybrids and vehicles with combustion engines recently picked up. As a result, the offtake situation improved slightly at the beginning of the year despite the temporary dip in demand for electric vehicles. In both segments, customers anticipate a certain recovery in the second half of 2024 and the underlying growth drivers remain intact.

Analogously to sales, all earnings indicators were lower and the bottom line after three months is a small net loss for the period. However, the continuous endeavours in the areas of lean management and cost management resulted in another significant drop in the ratio of material costs to total output and the personnel expense ratio (including agency staff) only increased slightly.

In spite of the year-on-year decline in interim profit and the pressure on liquidity due to the high degree of flexibility which is necessary in the management of production, personnel and materials, cash flow from operating activities was only slightly negative in the first three months of 2024. The same applies to the overall cash flow; the limited investments were financed by new loans. The equity ratio thus slipped slightly in the reporting period but remains at a solid level.

Earnings position

Group sales declined by 15.5% year-on-year to EUR 20.1 million in the first three months of 2024 (3M 2023: EUR 23.7 million). While sales in the Automotive segment dropped only slightly year-on-year, by 2.3% to EUR 16.0 million (3M 2023: EUR 16.4 million), the Industry & Infrastructure segment saw significant postponements or even cancellation of orders by some customers. Compared to the very strong prior-year quarter, this resulted in a 45.0% decline in sales to EUR 4.0 million (3M 2023: EUR 7.3 million).

At 56.1%, the ratio of material costs to total output in the reporting period was clearly below the prior-year level (3M 2023: 62.0%). By contrast, the personnel expense ratio (including agency staff) increased slightly from 23.9% to 24.1%. At the same time, other operating expenses decreased from EUR 3.1 million in the prior-year period to EUR 2.3 million. The other operating expenses include expenses of EUR 0.3 million (3M 2023: EUR 0.9 million) for agency staff.

Depreciation of property, plant and equipment and amortization of intangible assets amounted to EUR 1.6 million (3M 2023: EUR 1.5 million) in the reporting period, and spending on research and development was EUR 0.7 million (3M 2023: EUR 0.7 million). Development work focused principally on new products in the e-solutions business.

EBITDA (earnings before interest, taxes, depreciation and amortization) only decreased by 4.9% year-on-year to EUR 2.0 million (3M 2023: EUR 2.1 million), with the EBITDA margin above the previous year's level at 10.0% (3M 2023: 8.9%). EBIT (earnings before interest and taxes) amounted to EUR 0.4 million (3M 2023: EUR 0.6 million), so the EBIT margin declined from 2.6% to 1.9%. At segment level, Automotive reported EBIT of minus EUR 0.4 million in the first three months of 2024 (3M 2023: positive EBIT of EUR 0.4 million) and the Industry & Infrastructure segment reported EBIT of EUR 0.8 million (3M 2023: EUR 0.2 million).

The financial result was minus EUR 0.5 million in the reporting period (3M 2023: minus EUR 0.3 million), and tax expense was EUR 2 thousand (3M 2023: EUR 0.1 million). Group net income was therefore minus EUR 0.1 million in the first three months (3M 2023: positive net income of EUR 0.2 million). Earnings per share were minus EUR 0.02 (3M 2023: EUR 0.05).

As a result of currency translation losses of EUR 0.2 million (3M 2023: gains of EUR 0.6 million) from the translation of foreign business operations, total comprehensive income was minus EUR 0.3 million in the first three months of 2024 (3M 2023: EUR 0.8 million).

Non-current assets

Non-current assets decreased slightly to EUR 36.7 million as of March 31, 2024 (December 31, 2023: EUR 37.0 million), as property, plant and equipment declined from EUR 29.5 million to EUR 29.1 million due to lower capital expenditures. Intangible assets were EUR 5.2 million (December 31, 2023: EUR 5.1 million) and deferred taxes were EUR 2.4 million (December 31, 2023: EUR 2.4 million). That was roughly the same level as at year-end 2023.

Current assets

Current assets increased to EUR 32.6 million as of March 31, 2024 (December 31, 2023: EUR 30.7 million). This was mainly attributable to the rise in trade receivables from EUR 7.7 million to EUR 10.8 million. At EUR 18.7 million, inventories remained at the level of December 31, 2023, while tax receivables fell from EUR 1.2 million to EUR 0.6 million, other financial assets decreased from EUR 0.6 million to EUR 0.5 million and other current receivables dropped from EUR 1.5 million to EUR 1.0 million. Cash and cash equivalents totalled EUR 1.0 million on March 31, 2024 (December 31, 2023: EUR 0.9 million).

Liabilities

Current liabilities increased visibly to EUR 32.3 million in the first quarter of 2024 (December 31, 2023: EUR 29.8 million). This was mainly attributable to the rise in financial liabilities from EUR 18.1 million to EUR 20.0 million. Trade payables also increased from EUR 5.1 million to EUR 6.6 million, other current provisions rose to EUR 1.5 million (December 31, 2023: EUR 1.3 million). There was a slight decrease in other current financial liabilities to EUR 2.5 million (December 31, 2023: EUR 3.0 million), while tax liabilities were EUR 0.4 million (December 31, 2023: EUR 0.4 million) and other current liabilities increased to EUR 1.3 million (December 31, 2023: EUR 2.0 million).

Non-current liabilities decreased slightly from EUR 17.1 million to EUR 16.5 million as of March 31, 2024. In the reporting period, there was a slight decline in both noncurrent liabilities to banks, which decreased to EUR 10.6 million (December 31, 2023: EUR 11.0 million) and other non-current financial liabilities, which decreased to EUR 4.1 million (December 31, 2023: EUR 4.3 million). Deferred taxes were unchanged from December 31, 2023 at EUR 1.8 million.

Equity

Equity decreased slightly to EUR 20.5 million as of March 31, 2024 (December 31, 2023: EUR 20.8 million). This was attributable to the decrease in the profit reserve from EUR 1.4 million to EUR 1.3 million due to the loss for the period. In addition, the currency translation reserve changed from minus EUR 0.2 million to minus EUR 0.4 million. The capital stock of EUR 4.3 million, treasury stock of EUR 64 thousand and capital reserve of EUR 15.4 million were constant in the reporting period. Total assets increased to EUR 69.3 million at the end of the first quarter of 2024 (December 31, 2023: EUR 67.7 million). The equity ratio thus declined from 30.8% to 29.6%.

Liquidity and cash flow statement

The net cash outflow for operating activities was EUR 9 thousand in the first three months of 2024 (3M 2023: outflow of EUR 3.0 million). In particular, the increase in receivables was lower than in the prior-year period, while there was a stronger rise in trade accounts payable. Excluding tax expense and interest payments, the cash outflow for operating activities was EUR 0.1 million (3M 2023: outflow of EUR 2.6 million).

The net cash outflow for investing activities was EUR 1.3 million in the reporting period (3M 2023: outflow of EUR 1.7 million). Investment in intangible assets amounted to EUR 0.3 million (3M 2023: EUR 0.5 million) and investment in property, plant and equipment was EUR 0.9 million (3M 2023: EUR 1.2 million). Given the measures taken in recent years and the continued uncertainty with regard to volumes in the present market conditions, lower capital expenditures of up to EUR 4.0 million have been budgeted for 2024 overall. Investments will focus primarily on an order received for higher quantities of an actuator coil for chassis systems in the Czech Republic and expanding production capacity for functional plastics components in Mexico. In addition, plants are required for the speciality products business.

The net cash flow for financing activities was EUR 0.8 million in the first quarter of 2024 (3M 2023: outflow of EUR 7 thousand). In the reporting period, cash inflows of EUR 1.9 million from the conversion of part of an overdraft facility amounting to EUR 1.5 million into a eurocredit and from a project-related loan (3M 2023: cash inflows of EUR 1.5 million) were offset by cash outflows of EUR 0.8 million for the repayment of loans (3M 2023: EUR 1.2 million) and EUR 0.3 million for lease payments (3M 2023: EUR 0.3 million).

This resulted in a total cash outflow of EUR 0.5 million in the reporting period (3M 2023: outflow of EUR 4.7 million). Cash and cash equivalents (less overdrafts) were minus EUR 12.5 million (March 31, 2023: minus EUR 8.4 million). As of the reporting date, InTiCa Systems SE had assured credit facilities which could be drawn at any time totalling EUR 18.4 million.

Employees

The headcount was 708 on March 31, 2024 (March 31, 2023: 829). 25 of these employees were agency staff (March 31, 2023: 114). On average, the Group had 726 employees in the reporting period (3M 2023: 836), including agency staff in both cases.

Risks and opportunities

The management report in the soon to be published annual report for 2023 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 and management of opportunities". There was no material change in the risk/opportunity profile of InTiCa Systems SE in the reporting period.

Outlook

The macroeconomic environment is still dominated by numerous risk factors. At present there is no sign of an end to the war in Ukraine or the conflict in the Middle East and the US elections are also contributing to the uncertainty. That is reflected in an increase in tied capital as a result of inventories to safeguard the reliability of supply. Together with higher interest rates, that results in persistently high liquidity requirements. The core inflation rate is still high. Although global price levels for raw materials and semifinished products have stabilized, they are still well above historical levels. Cross-site wage rises are increasing the pressure on margins.

In view of this, 2024 got off to a difficult start for InTiCa Systems. At the end of the first quarter, orders on hand were well below the prior-year level at EUR 86.1 million (March 31, 2023: EUR 96.2 million). 89% of orders were for the Automotive segment (Q1 2023: 78%). From the fourth quarter of 2023, increasing restraint was evident, especially in the Industry & Infrastructure segment in respect of echarging infrastructure and products for the photovoltaics industry. By contrast, the offtake situation in the Automotive segment is currently somewhat better than in 2023. Here, higher unit sales of vehicles with combustion engines and hybrids play a key role. Since the future geopolitical and economic developments are difficult to estimate, uncertainty remains high overall. Therefore, at present it is not possible to effectively estimate the extent of order offtake by customers in the remainder of the year and discussions with OEMs about shortfalls in order volumes are difficult.

The Automotive segment will remain the most important element in InTiCa Systems' business activities in the current year. By contrast, there is likely to be a temporary slight drop in the share of the Industry & Infrastructure segment due to the situation in the photovoltaics market. Nevertheless, the Board of Directors still sees substantial potential in access to new areas of industry and the establishment of the speciality products business. In all, InTiCa Systems is driven more by product expertise than by individual segments. For example, the new products of a major US producer of e-charging systems are derived from both segments.

Product innovations should also help drive internationalization and gain access to additional markets in the future. Demand for InTiCa Systems' development expertise remains high and, in both segments, a significant proportion of new orders are for new e-solutions products. Irrespective of the challenges within the current environment, the electrification of key areas of the economy is still a key growth driver and we still see InTiCa Systems SE well positioned to participate in the high demand for innovative e-solutions.

At present, the Board of Directors assumes that, taking into account the ongoing high uncertainty, Group sales will be between EUR 80.0 million EUR 95.0 million in 2024, while the EBIT margin will be between 0.0% and 2.5%. Where possible, the material cost ratio should be optimized further in both segments and the equity ratio should remain stable. The assumptions underlying the forecast for 2024 are that the cyclical trend will not deteriorate further and geopolitical conflicts will not escalate. Unforeseeable negative effects could affect suppliers, have a direct impact on InTiCa Systems, or affect its customers, resulting in an inability to meet expectations.

Further information on the segments can be found in the annual report for 2023 in section 6 "Outlook".

Consolidated interim financial statements in accordance with IFRS

The unaudited consolidated interim financial statements for InTiCa Systems SE and its subsidiaries as of March 31, 2024, 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 financial statements.

Forward-looking statements and predictions

This quarterly report contains statements and forecasts referring to the future development of InTiCa Systems SE, 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 on 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 Balance Sheet

of InTiCa Systems SE in accordance with IFRS as of March 31, 2024

Assets	Mar 31, 2024 EUR ´000	Dec 31, 2023 EUR ´000
Non-current assets
Intangible assets	5,203	5,142
Property, plant and equipment	29,073	29,525
Deferred taxes	2,440	2,371
Total non-current assets	36,716	37,038
Current assets
Inventories	18,699	18,693
Trade receivables	10,778	7,728
Tax assets	638	1,182
Other financial assets	525	625
Other current receivables	997	1,510
Cash and cash equivalents	972	946
Total current assets	32,609	30,684
Total assets	69,325	67,722

Equity and liabilities	Mar 31, 2024 EUR ´000	Dec 31, 2023 EUR ´000
Equity
Capital stock	4,287	4,287
Treasury stock	-64	-64
General capital reserve	15,389	15,389
Profit reserve	1,314	1,402
Currency translation reserve	-415	-187
Total equity	20,511	20,827
Non-current liabilities
Interest-bearing non-current liabilities	10,633	10,958
Other liabilities	4,081	4,346
Deferred taxes	1,762	1,770
Total non-current liabilities	16,476	17,074
Current liabilities
Other current provisions	1,470	1,272
Tax payables	350	375
Interest-bearing current financial liabilities	20,017	18,081
Trade payables	6,644	5,127
Other financial liabilities	2,545	2,983
Other current liabilities	1,312	1,983
Total current liabilities	32,338	29,821
Total equity and liabilities	69,325	67,722
Equity ratio	29.6%	30.8%

Consolidated Statement of Profit and Loss and other Comprehensive Income

of InTiCa Systems SE in accordance with IFRS for the period from January 1 to March 31, 2024

	Jan 1 - Mar 31, 2024 EUR ´000	Jan 1 - Mar 31, 2023 EUR ´000	Change 2024 vs. 2023
Sales	20,054	23,736	-15.5%
Other operating income	741	1,074	-31.0%
Changes in finished goods and work in process	-1,598	-667	-
Other own costs capitalized	151	212	-28.8%
Material expense	10,439	14,443	-27.7%
Personnel expense	4,579	4,753	-3.7%
Depreciation and amortization	1,626	1,486	+9.4%
Other operating expenses	2,332	3,058	-23.7%
Operating profit (EBIT)	372	615	-39.5%
Cost of financing	458	291	+57.4%
Other financial income	0	1	-
Profit before taxes	-86	325	-
Income taxes	2	104	-98.1%
Net profit for the period	-88	221	-
Other comprehensive income
Exchange differences from translating foreign business operations	-228	626	-
Other comprehensive income, after taxes	-228	626	-
Total comprehensive income for the period	-316	847	-
Earnings per share (diluted/basic in EUR)	-0.02	0.05	-
EBITDA	1,998	2,101	-4.9%

Consolidated Cash Flow Statement

of InTiCa Systems SE in accordance with IFRS for the period from January 1 to March 31, 2024

	Jan 1 - Mar 31, 2024 EUR ´000	Jan 1 - Mar 31, 2023 EUR ´000
Cash flow from operating activities
Net profit for the period	-88	221
Income tax expenditures / receipts	2	104
Cash outflow for borrowing costs	458	291
Income from financial investments	0	-1
Depreciation and amortization of non-current assets	1,626	1,486
Other non-cash transactions
Net currency gains/losses	-252	13
Increase/decrease in assets not attributable to financing or investing activities
Inventories Trade receivables	-6 -3,050	-534 -4,001
Other assets Increase/decrease in liabilities not attributable to financing or investing activities	-613	-629
Other current provisions Trade payables Other liabilities	198 1,517 -1,163	441 509 -473
Cash flow from operating activities	-145	-2,573
Cash outflow for income taxes	539	-121
Cash outflow for interest payments	-403	-270
Net cash flow from operating activities	-9	-2,964
Cash flow from investing activities
Cash inflow from interest payments	0	1
Cash outflow for intangible assets	-332	-474
Cash outflow for property, plant and equipment	-939	-1,223
Net cash flow from investing activities	-1,271	-1,696
Cash flow from financing activities
Cash inflow from loans	1,936	1,538
Cash outflow for loan repayment installments	-822	-1,248
Cash outflow for liabilities under finance leases	-299	-297
Net cash flow from financing activities	815	-7
Total cash flow	-465	-4,667
Cash and cash equivalents at start of period	-12,081	-3,800
Impact of changes in exchange rates on cash and cash equivalents held in foreign currencies	-6	70
Cash and cash equivalents at end of period	-12,552	-8,397

Consolidated Statement of Changes in Equity

of InTiCa Systems SE in accordance with IFRS for the period from January 1 to March 31, 2024

	Capital stock EUR ´000	Treasury stock EUR ´000	Paid-in capital EUR ´000	Retained earnings EUR ´000	Currency translation reserve EUR ´000	Total equity EUR ´000
As of January 1, 2023	4,287	-64	15,389	2,530	-173	21,969
Net result for Q1 2023	0	0	0	221	0	221
Other comprehensive income, after taxes Q1 2023	0	0	0	0	626	626
Total comprehensive income for Q1 2023	0	0	0	221	626	847
As of March 31, 2023	4,287	-64	15,389	2,751	453	22,816
As of January 1, 2024	4,287	-64	15,389	1,402	-187	20,827
Net result Q1 2024	0	0	0	-88	0	-88
Other comprehensive income, after taxes Q1 2024	0	0	0	0	-228	-228
Total comprehensive income for Q1 2024	0	0	0	-88	-228	-316
As of March 31, 2024	4,287	-64	15,389	1,314	-415	20,511

for the period from January 1 to March 31, 2024

Accounting based on the International Financial Reporting Standards (IFRS)

The consolidated interim financial statements of InTiCa Systems SE as of March 31, 2024, 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 2023, 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 and which will be published soon.

The consolidated interim financial statements have been prepared for the three-month period ending on March 31, 2024. Comparative data refer to the consolidated financial statements as of December 31, 2023, or the consolidated interim financial statements as of March 31, 2023. 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 2023. This is available at Investor Relations/Publications on the company's website at http://www.intica-systems.com/en.

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

In addition to the parent company, InTiCa Systems SE, Passau, Germany, InTiCa Systems s.r.o., Prachatice, Czech Republic, Sistemas Mecatrónicos InTiCa S.A.P.I. de C.V., Silao, Mexico and InTiCa Systems TOV, Bila Tserkva, Ukraine are included in the consolidated financial statements. The Czech and the Ukrainian subsidiaries are wholly owned companies, while InTiCa Systems SE holds 99% in the Mexican company and InTiCa Systems s.r.o. holds 1%. The annual financial statements and interim financial statements of the Group companies are drawn up as of the last day of the Group's fiscal year or the interim reporting period.

Compared with Q1 2023, there has been no change in the scope of consolidation of InTiCa Systems SE.

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 period.

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

		Mar 31, 2023
		EUR 1
CZK 25.305	CZK 24.725	CZK 23.490
USD 1.079	USD 1.108	USD 1.087
MXN 18.039	MXN 18.665	MXN 19.669
UAH 42.367	UAH 42.208	UAH 39.781
	Mar 31, 2024 EUR 1	Closing rates Dec 31, 2023 EUR 1

		Average rates
	Mar 31, 2024	Dec 31, 2023	Mar 31, 2023
	EUR 1	EUR 1	EUR 1
Czech Republic USA	CZK 25.070 USD 1.086	CZK 24.007 USD 1.081	CZK 23.785 USD 1.073
Mexico	MXN 18.541	MXN 19.177	MXN 20.028
Ukraine	UAH 41.467	UAH 39.562	UAH 39.223

Segment information

The notes to the consolidated financial statements in the soon to be published annual report for 2023 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, 2023.

Consolidated income statement / statement of comprehensive income

Group sales were EUR 20,054 thousand in the first three months of 2024, down from EUR 23,736 thousand in Q1 2023. While sales in the Automotive segment decreased only slightly, the Industry & Infrastructure segment recorded a significant decline compared to the prior-year quarter. EBITDA decreased from EUR 2,101 thousand to EUR 1,998 thousand. Group net income was minus EUR 88 thousand in the reporting period, compared with EUR 221 thousand in the first quarter of the previous year.

Consolidated balance sheet and cash flow statement

The capital stock of InTiCa Systems SE 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. The equity ratio of around 29.6% as of March 31, 2024 (December 31, 2023: 30.8%) shows that the company is still soundly financed.

The net cash outflow for operating activities was EUR 9 thousand in the first three months of 2024 (3M 2023: outflow of EUR 2,964 thousand). The total cash outflow in the reporting period was EUR 465 thousand (3M 2023: outflow of EUR 4,667 thousand). Cash and cash equivalents therefore declined from minus EUR 12,081 thousand as of December 31, 2023 to minus EUR 12,552 thousand as of March 31, 2024. Equity and liabilities changed as follows in the reporting period: equity decreased to EUR 20,511 thousand (December 31, 2023: EUR 20,827 thousand) and non-current liabilities decreased to EUR 16,476 thousand (December 31, 2023: EUR 17,074 thousand). Current liabilities rose to EUR 32,338 thousand (December 31, 2023: EUR 29,821 thousand). On the assets side of the balance sheet, non-current assets decreased slightly to EUR 36,716 thousand (December 31, 2023: EUR 37,038 thousand), while current assets rose to EUR 32,609 thousand (December 31, 2023: EUR 30,684 thousand).

Events after the reporting period

At the end of April, InTiCa Systems SE announced that the audit of the company's annual financial statements and the consolidated financial statements for the financial year ended December 31, 2023 had been delayed, but that the company however did not anticipate significant changes compared with the most recent forecast for the consolidated financial figures as published in the interim report for the first nine months of 2023 and the ad-hoc statement issued on November 8, 2023. Following completion of the audit for the 2023 financial year by the responsible (Group) auditor, Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Nuremberg, Germany, the annual reports for 2023 will be published soon.

No other reportable events have occurred since the reporting date on March 31, 2024.

Remuneration system of the Board of Directors and Supervisory Board

The remuneration system of the Board of Directors and the Supervisory Board is set out in detail in the Remuneration Report which will be available for download from the company's website at www.intica-systems.com in the section Investor Relations/Corporate Governance soon.

German Corporate Governance Code and corporate governance statement

The corporate governance statement for InTiCa Systems SE and the InTiCa Systems Group, which is required by sec. 289f and sec. 315d of the German Commercial Code (HGB), including the corporate governance report, is available on the internet at www.intica-systems.com in the section Investor Relations/Corporate Governance.

Related party transactions

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

Other information

The capital stock of InTiCa Systems SE is EUR 4,287,000 and is divided into 4,287,000 no-par bearer shares, which constitute a theoretical pro rata share of the capital stock of EUR 1.00 per share. 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. The rights and obligations of the 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.

Under the provisions of German securities trading legislation, every investor whose proportion of the voting rights in the company reaches, exceeds or falls below certain thresholds as a result of the purchase or sale of shares or in any other way must notify the company and the Federal Financial Supervisory Authority (BaFin) thereof. The lowest threshold for such disclosures is 3%. Dr. Axel Diekmann (Germany) and Mr. Thorsten Wagner (Germany) have direct and indirect interests in the company's capital exceeding 10% of the voting rights.

There are no shares in InTiCa Systems SE with special rights according rights of control.

InTiCa Systems SE has not issued any shares that allow direct exercise of control rights.

The appointment and dismissal of members of the Board of Directors is governed by sec. 84 and sec. 85 of the German Companies Act (AktG) and sec. 5 of the articles of incorporation. Pursuant to the statutory provisions (sec. 179 paragraph 1 AktG) any amendment to the articles of incorporation requires a resolution of the General Meeting. Resolutions of the General Meeting are adopted on the basis of a simple majority vote except for amendments for which the German Companies Act stipulates a larger majority. Under sec. 8 paragraph 4 of the company's articles of incorporation, the Supervisory Board may make amendments to the articles of incorporation, providing these are merely editorial.

In addition, under sec. 3 paragraph 3 of the articles of incorporation, the Supervisory Board may alter the articles of incorporation in the event of a capital increase out of the authorized capital 2022/1 to bring them into line with the extent of the capital increase and may make any other amendments associated with this provided that these are merely editorial.

On the basis of the resolution of the Annual General Meeting of July 15, 2022, the Board of Directors is authorized to increase the capital stock with the Supervisory Board's consent, in one or more tranches, up to July 14, 2027, 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 2022). 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 [available in German only].

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 of 428,700 shares at the date of the resolution. This resolution was used to purchase 263,889 shares in the company. As of March 31, 2024, InTiCa Systems SE still had treasury stock amounting to 64,430 shares (March 31, 2023: 64,430).

On the basis of a resolution adopted by the Annual General Meeting on July 15, 2022, the company is authorized, up to July 14, 2027, 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. The company has not yet used this authorization.

InTiCa Systems SE has loans amounting to EUR 0.7 million which give 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 loans 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 3 million overdraft facility has an extraordinary right to terminate this facility. This right takes effect if one other person acquires at least 30% of the borrower'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.

Segment report as of March 31, 2024 Segment sales and segment earnings

Segment	Automotive		Industry & Infrastructure		Total
In EUR ´000	Q1 2024	Q1 2023	Q1 2024	Q1 2023	Q1 2024	Q1 2023
Sales	16,027	16,409	4,027	7,327	20,054	23,736
EBIT	-379	387	751	228	372	615

Key financial figures	Q1 2024 EUR ´000 or %	Q1 2023 EUR ´000 or %	Change 2024 vs. 2023
EBITDA	1,998	2,101	-4.9%
Net margin	-0.4%	0.9%
Pre-tax margin	-0.4%	1.4%
Material cost ratio (in terms of total output)	56.1%	62.0%
Personnel cost ratio	24.1%	23.9%
EBIT margin	1.9%	2.6%
Gross profit margin	40.7%	37.2%

"We hereby declare that, to the best of our knowledge and in accordance with the applicable reporting principles, the consolidated interim financial statements 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 in the remainder of the financial year."

Passau, May 30, 2024

The Board of Directors

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

Dr. Gregor Wasle Bernhard Griesbeck

Financial Calendar 2024

June 07, 2024	Publication of annual report for FY 2023
Tba	Annual General Meeting
August 08, 2024	Publication of Interim Financial Statements for H1 2024
November 15, 2023	Publication of Interim Financial Statements for Q3 2024
December 31, 2024	End of the financial year

Headquarter:

InTiCa Systems SE Spitalhofstraße 94 94032 Passau Germany

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

www.intica-systems.com info@intica-systems.com

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