Viscom AG — Audit Report / Information 2015

Mar 23, 2016

Press Conference

Annual Financial Statement 2015

Volker Pape Dirk Schwingel Dr. Martin Heuser

Hanover, 23, March 2016

Disclaimer

This presentation is not directed to the investment goals or financial position of any specific individual person or legal person. Investors should obtain independent expert counsel regarding the question of an investment in shares of the Viscom AG and carry out an analysis of the particular situation themselves.

Although Viscom has endeavored to deliver reliable, complete and up-to-date information with this presentation, the company can accept no liability for the accuracy, completeness or topicality of this information.

Certain statements in this presentation which are based on information available at present are forward-looking statements or contain specific expectations for the future. Such statements, by their nature, are subject to risks and uncertainties. Circumstances such as the general economic development, future market conditions, changes in the capital markets and other circumstances can lead to significant deviation of the actual events or results.

The information in this presentation serves general informational purposes and is neither an offer nor part of an offer or any other request to acquire, subscribe to or sell securities issued by Viscom.

Vision Technology

Contents:

• Vision Technology, Strategy and Market
• Key Company Figures 2015
• Technology and Forecast

Vision Technology

Grow with technology!

The goal is still clear: To further expand our competitive position and sustainably raise corporate value.

Strategy

Ways to realisation:

• Consolidate market position in automotive supply sector
• Expand market position in high-volume production, globally active EMSs (focus on 3C)
• Expand market position, especially in Asia
• Open new application areas (diversification)
• Increase market/customer loyalty
• Strong customer support
• Online (website, Hotline, Remote Support)
• Direct on-site service
• Replacement part supply

Viscom AG: Unique selling points and strengths

USPs in the current market:

• Viscom covers all inspection gates (SPI, AOI, AXI)
• Highest inspection quality, accuracy and speed
• Networking with own, third-party and production control systems
  • Industry 4.0 becomes reality
  • Process monitoring and control of the entire process
• Market leader in the demanding automotive electronics segment
• Excellent reputation due to good market positioning

The three supporting pillars: The Business Units

SP

Serial inspection systems for electronic assemblies

• Paste inspection
• Pre- and post-reflow inspection
• In-line X-ray inspection
• Conformal coating inspection

Special solutions & manual X-ray inspection

• Die and wire-bond inspection
• Manual X-ray inspection
• Special solutions

Service

Service offerings for the series products

• Service and Hotline
• Upgrades
• Training
• Support area on the website

Share in group revenue 2015

Viscom as global player

Acting worldwide

• Headquarters in Hanover
• Subsidiaries
• Service & support points
• Representatives
• Remote-Maintenance
• Hotline
• Customers support area on website

Products "Made in Germany" global at the market

Global Business Development Team

• Sales team acting within a global network
• Costumer acquisition especially in non-automotive market segment
• Contact partner for multinational companies in the electronics sector

Global Application Team

• Customized applications and on-site evaluations
• Close cooperation with Business Development Team

Market position

Sustainable market position:

• Market experience of long-standing
• Customer-specific realisations
• Viscom under Top 3 in the international competition of SMT- und X-ray-Inspection

Competition:

Competitors in particular from Asia in areas of AOI, AXI und SPI

Ten of the fifteen worldwide largest automotive suppliers are manufacturing electronics, eight of these are Viscom customers

Technological strenghts – Success in automotive

Distribution of the Viscom business to branches 2015

Branch distribution worldwide*

*Source: http://www.ttiinc.com/docs/IO/40549/Custer-Productronica-2015

Vision Technology

Contents:

• Vision Technology, Strategy and Market
• Key Company Figures 2015
• Technology and Forecast

Highlights FY 2015

• Incoming orders: € 67,173 thousand (previous year: € 66,844 thousand, +0.5 %)
• Group revenue: € 69,389 thousand (previous year: € 62,254 thousand, +11.5 %)
• EBIT: € 10,157 thousand (previous year: € 9,378 thousand, +8.3 %)
• EBIT-Margin: 14.6 % (Vj.: 15.1 %)
• Guidance for 2015 in revenue exceeded and fulfilled with the realised EBIT-Margin

Incoming orders and order backlog

Incoming orders according to regions

		FY 2014	FY 2015
Incoming orders	K€	66,844	67,173	0.5%
thereof Europe	K€	43,647	43,366	-0.6%
thereof Americas	K€	10,904	12,028	10.3%
thereof Asia	K€	12,293	11,779	-4.2%
Order backlog	K€	14,032	11,816	-15.8%

Group revenue by years

EBIT and EBIT-Margin

Segment information for business units

SP

Optical and X-ray series inspection systems

NP

Special optical and Xray series inspection systems

Service

Service and After-Sales

Segment information for regions*

			Europe		2014	2015
			Revenue	K€	41,056	43,020	4.8%
			Part of group revenue	%	65.9	62.0
			EBIT	K€	7,245	7,881	8.8%
			EBIT-Margin	%	17.6	18.3
Americas		2014	2015		Asia			2014	2015
Revenue	K€	9,242	13,019	40.9%	Revenue		K€	11,956	13,350	11.7%
Part of group					Part of	group
revenue	%	14.8	18.8		revenue		%	19.2	19.2
EBIT	K€	834	1,420	70.3%	EBIT		K€	1,301	1,239	-4.8%
EBIT-Margin	%	9.0	10.9			EBIT-Margin	%	10.9	9.3

* without consideration of consolidation differences in EBIT

Employees

Employees as of 31.12.

Revenue per employee*

* reffered to annual average

Core indicators of consolidated income statement

	FY 2014		FY 2015		Change to the
	K€	% to Gr	K€	% to Gr	previous year
Group revenue (Gr)	62,254	100.0%	69,389	100.0%	11.5%
Total output*	67,097	107.8%	73,583	106.0%	9.7%
Cost of materials	-24,675	-39.6%	-26,396	-38.0%	7.0%
Staff cost	-21,442	-34.4%	-24,342	-35.1%	13.5%
EBIT	9,378	15.1%	10,157	14.6%	8.3%
Net profit for the period	6,685	10.7%	3,529	5.1%	-47.2%

*Total output = Group revenue + changes in finished goods and work in progress + other capitalised company-produced assets

Core indicators of balance sheet and cash flow statement

Consolidated balance sheet	31.12.2014 K€	31.12.2015 K€
Cash and cash equivalents	16,933	11,868
Current liabilities	9,264	12,539
Non-current liabilities	1,610	1,934
Interest-bearing liabilities	0	0
Total shareholders' equity	53,584	48,657

Consolidated cash flow statement	31.12.2014 K€	31.12.2015 K€
Cash flow from operating activities	4,755	5,955
Cash flow from investing activities	-2,233	-2,359
Cash flow from financing activities	-15,126	-8,943

Key figures on net assets, financial position and results of operations

Key figures	31.12.2014	31.12.2015
Return on equity Net profit for the period / shareholder's equity	12.5%	7.3%
Return on investment (ROI) Net profit for period / total assets	10.4%	5.6%
Return on sales EBT / revenue	15.2%	13.5%
Return on capital employed (ROCE) EBIT / (total assets - cash and cash equivalents - current liabilities and provisions)	24.5%	26.2%
Equity ratio Equity / total assets	83.1%	77.1%

Dividend proposal 2015

Share	2015
Earnings per share	€ 0.40
Dividend per share	€ 0.40

Dividend proposal for 2015 € 0.40 per dividend-bearing share fulfills the comunicated dividend policy of the Management regarding a dividend payout ratio of at least 50 % of net profit for the period

Viscom share

Listing	Regulated market (Prime Standard)
ISIN	DE 000 7846867
Share capital in units	9,020,000
Number of voting shares	8,885,060
Market capitalisation as of 31.12.2015*	€ 132.59 million
Highest share price*	€ 17.35
Lowest share price*	€ 11.25
Share price as of 31.12.2015*	€ 14.70

Highest share price*	€ 17.35	Shareholder structure
		Previous owners	59.6 %
Lowest share price*	€ 11.25	Free float	29.4 %
Share price as of 31.12.2015*	€ 14.70	Allianz	9.5 %
*) All share price information is based on XETRA daily closing prices		Viscom AG	1.5 %

Increase of attractiveness of Viscom share on capital market and obtaining greater interest from investors and analysts

Vision Technology

Contents:

• Vision Technology, Strategy and Market
• Key Company Figures 2015
• Technology and Forecast

Viscom as technology leader

3D inspection

• Optical inspection
• X-ray inspection
• Paste print inspection

Networking

• Uplink/downlink
• Simple user interface for all solutions
• Compatible with or ready for Industry 4.0

Miscellaneous

• The most up-to-date hardware components
• 50 Gbit data rates

Networking in SMT production

New AOI camera technology: XM+ with larger field of view

Camera technology with the highest data rate

• Central camera with 25 MP
• 8 angled cameras, each with 12 MP /10 bit / 73 fps
• High-performance frame grabber VEG103 with 50 Gbit/s bandwidth
• Total data rate: 4.7 Gbyte/s useful data
• 140 images per second per camera with subsampling, therefore, capturing 3D sequences a possibility

Optical 3D component analysis

Three-dimensional evaluation of solder joints

• Recording 3D geometry of components and solder joints
• Classification of solder joints in dependence on volume
• Very stable process paramterisation
• No indirect measurement of inspection criteria, only direct

New AXI sensor technology: Flat panel detector

Employed in successful systems X7056 and X8068

• 1 to 5 flat panel detectors (FPD)
• High resolution of > 3 MP each FPD
• Optional X/Y positioning system for FPD
• Improved image quality compared to classical image intensifiers
• Multiple image acquisitions make 3D AXI possible

X-ray 3D component analysis

• Solder joint reconstruction from several views
• Defect sites within solder joints recognized
• Inspection of printed circuit boards populated on both sides
• inspection throughput lower than for optical inspection

vVision software with intuitive user interface

• Software platform for optical and X-ray inspections
• "Opti-Sheets" allow settings to be made without prior knowledge
• The user simply compares an ACTUAL and a TARGET result
• Alternative: Fully automatic parameterization by the software

New inspection systems 7056-2 / 8011-2 / 3088, etc.

Continual product updating and further development of the standard systems

• 8011-2: New version of the MXI system for larger objects
• 7056-2: Improved AXI inspection system cuts handling time in half
• 3088 ultra family:
  • Blue: economical
  • Silver: high performance
  • Gold: high-end

We intend to leverage the megatrends and profit from trends such as autonomous vehicles, electromobility, miniaturization of electronic components and continually rising demands on quality.

Effects from securities lending transactions

• Appropriated investment funds for companies in the past recommendation of several german major banks
• Investment of a part of the proceeds of emission for 7 months: Net profit of approx. € 1.7 million realised in 2006 (i.e. approx. 10 % of net profit for the period)
• According to the ruling of the German Federal Fiscal Court (BFH) in 2016 surprisingly under certain circumstances treated as taxable

Outlook

• The electronics market and megatrends offer secure growth perspectives.
• Further growth potential in global accounts
• Winning evaluations always in focus
• Highly attractive dividends - Payout rate of at least 50 % of result

2016 Annual Forecast	Revenue target: € 70 to 75 million
	EBIT-Margin: 13 to 15 %

Thank you for your attention

Headquarters: Viscom AG Carl-Buderus-Str. 9 - 15 · 30455 Hanover, Germany Phone: +49 511 94996-0 · Fax: +49 511 94996-900 info@viscom.de

Contact Investor Relations: Viscom AG, Anna Borkowski Carl-Buderus-Str. 9 – 15 · 30455 Hanover, Germany Phone: +49 511 94996-861 · Fax: +49 511 94996-555 investor.relations@viscom.de

For more information about Viscom and our international subsidiaries and representatives in Europe, the USA, and Asia, please visit: