INTERIM REPORT as at 30 September 2021

CONTENT

Foreword by the Executive Board

Viscom's shares

Interim Group Management Report
Basic information on the Group
- Business model of the Group

Economic Report

Macroeconomic and sector development
Summary analysis of the Company's net assets, financial position and results of operations and course of business
- Results of operations
- 12 Regional developments
- 13 Financial position
- 13 Net assets
- 15 Key figures on the Group's net assets, financial position and results of operations
Report on post-reporting date events
Report on opportunities and risks
Report on future developments in 2021
Economic conditions

Other disclosures

IFRS interim consolidated financial statements

19 Consolidated statement of comprehensive income
20 Consolidated statement of financial position: assets
21 Consolidated statement of financial position: equity and liabilities
22 Consolidated statement of cash flows
23 Statement of changes in equity
Selected explanatory notes
Notes to the consolidated statement of comprehensive income
Responsibility statement
Financial calendar 2021
Viscom structure

OPERATING FIGURES

Profit and loss

		9M 2021	9M 2020
Revenues	K€	54,820	41,563
EBIT	K€	1,858	-6,964
Net profit for the period	K€	1,195	-7,181

Balance sheet and cashflow statement figures

		9M 2021	9M 2020
Total assets	K€	90,190	78,607
Equity ratio	%	60.9	64.4
CF from current business	K€	-5,061	6,924
CF from investment	K€	-2,115	-2,163
CF from financing	K€	-2,311	-2,726
End of period capital	K€	-5,038	2,993

		9M 2021	9M 2020
Result per share	€	0.13	-0.81

Employees

	9M 2021	9M 2020
Employees on 30 September	464	467

VISCOM. VISION TECHNOLOGY.

Founded:

1984 by Dr. Martin Heuser and Volker Pape

Number of employees worldwide: 464

World Market Leader:

Viscom is the No. 1 solution provider for automatic optical inspection in the automobile industry.

Headquarters and production: "Made in Germany":

Hanover, Germany

Subsidiaries:

Viscom France S.A.R.L., Paris, France Viscom Tunisie S.A.R.L., Tunis, Tunisia Viscom Inc., Atlanta, Georgia, United States Viscom Machine Vision Pte Ltd., Singapore Viscom Machine Vision Trading Co. Ltd., Shanghai, China VICN Automated Inspection Technology (Huizhou) Co., Ltd.

FOREWORD BY THE EXECUTIVE BOARD

Viscom is experiencing a cautious upturn. We have begun rapidly pulling out of the pandemic dip and generated incoming orders of € 67.7 million in the first nine months of the financial year. This represents a substantial rise of around 61 % on the same period of the previous year (previous year: € 42.1 million). Global demand for products has recovered faster than expected and important raw materials and preliminary products, for which extraction and production were ramped again after the pandemic only following a delay, are creating supply chain bottlenecks. Viscom is also affected by these supply issues. Ensuring the supply of parts to meet the delivery dates for inspection systems to our customers is a huge challenge. We are collaborating closely with our suppliers and customers and building up our inventories as a preventative measure to ensure that we can still deliver at short notice.

The rise in incoming orders reflects the success of the new iX7059. With its iX7059 product family, Viscom is setting new standards for fast, high-precision inline x-ray inspection. The optional, special transport system allows for the smooth handling of inspection objects on workpiece carriers or in solder frames of up to 40 kg – unique and hugely advantageous for the trendy areas of e-mobility, new energies and telecommunications. Our customers, too, are impressed. We have already received orders and many enquiries for the iX7059 Heavy Duty, including from existing customers, who are clearly in the midst of an e-mobility transformation. There is also considerable customer demand for the iX7059 Device Inspection, which has already been translated into very specific projects, which in turn result in additional customer orders. Many new contacts were established on the developing market for battery cell inspection, which promise further incoming orders next year.

Good incoming orders resulted in a higher order backlog of € 31.8 million (previous year: € 16.5 million), creating very good production capacities for the months ahead. Revenue amounted to € 54.8 million, representing a year-on-year increase of about 32 % (previous year: € 41.6 million). EBIT is comfortably in positive territory at € 1.9 million (previous year: € -7.0 million) with an EBIT-Margin of 3.4% (previous year: -16.8%).

Viscom AG is revising its forecast for the 2021 financial year on the basis of these quarterly figures. We now anticipate target revenue and incoming orders of € 75 to € 85 million (previously: between € 70 and € 80 million) with an EBIT-Margin of 3 % to 9 % (previously: 3 % to 9 %). This translates into EBIT of between € 2.3 and € 7.7 million (previously: € 2.1 to € 7.2 million). Encouraging figures reflect increasing momentum in Viscom AG's business. Nevertheless, Viscom AG is also affected by supply chain bottlenecks, which could result in delays in revenue recognition.

We believe we are well positioned to return to sustainable and profitable growth. We are confident about the future. We would ask you to continue to place your trust in us, and to stay healthy!

The Executive Board

Carsten Salewski Peter Krippner

Dr. Martin Heuser Dirk Schwingel

VISCOM'S SHARES

Basic information on Viscom's shares

German Securities Code Number (WKN)	784,686
ISIN	DE 000 7846867
Ticker symbol	V6C
Market segment	Regulated market (Prime Standard)
Type of shares	No-par value bearer shares
Share capital (€)	9,020,000
Share capital (units)	9,020,000
Number of voting shares	8,885,060

Opening price on 4 January 2021	€ 9.60
Closing price on 30 September 2021 *	€ 12.25
Percentage change (rounded)	+28 %
High on 7 July 2021 *	€ 15.25
Low on 12 January 2021 *	€ 8.46
Market capitalisation as at 30 September 2021	€ 110,495,000

* All share price information is based on XETRA daily closing prices

Share price performance

as against the DAX and TecDAX in the first nine months of 2021

■ Viscom (Xetra): 125.5 % ■ DAX (Xetra): 111.2 % ■ TecDAX (Perf.) (Xetra): 115.3 %

Shareholder structure

Share price performance in the reporting period 1 Jan. – 30 Sep. 2021

Viscom AG's shares began the 2021 financial year at a price of € 9.60 on 4 January 2021. In a weak market environment, the shares reached their low for the year on 12 January 2021 at € 8.46. Stock market sentiment improved again in February and March, with investors increasingly anticipating a rapid economic recovery and using lower share price levels to enter the market. Viscom's shares also benefited from this improved market environment. The record stock market rally continued virtually unabated in the second quarter of 2021. Progress made in vaccination campaigns, extremely loose central bank monetary policy and massive fiscal stimulus programs shored up the good sentiment. In this positive market environment, Viscom AG's shares reached their high for the first three quarters of 2021 at € 15.25 on 7 July 2021. Viscom AG's share price was very volatile in the third quarter of 2021. Problems with supply bottlenecks, rising inflation and the ongoing COVID-19 pandemic made investors more sceptical and resulted in temporary profit-taking on stock markets. Viscom AG impressed with increasingly positive figures and a return to a confident outlook for the current financial year. The average price of Viscom's stock was € 11.84 in the first nine months of 2021, closing at € 12.25 on 30 September 2021.

Shareholder structure

The great commitment shown by Viscom AG's founders, Dr. Martin Heuser and Volker Pape, shapes the company's shareholder structure. 59.87 % of shares are held by Dr. Heuser and Mr Pape, either via intermediary companies and foundations or directly. Viscom AG itself holds 1.50 % of its own shares, which the company purchased in 2008/2009 under a share buyback programme. 6.50 % of the shares are held by Allianz and a further 3.02 % by Universal-Investment-GmbH. The freefloat of 29.11 % is spread chiefly among investors in Germany and other European countries.

Investor Relations

The objective of our investor relations work is to enable all capital market participants to assess Viscom AG fairly. This is why we pursue a policy of continuous and transparent communication. Extensive information on Viscom's shares can be found in the Company/Investor Relations section of the company's website at www.viscom.com.

Pareto Securities AS and EQUI.TS GmbH cover and comment on Viscom's shares on a regular basis. On 30 September 2021, the share had two "buy" recommendations.

You can also contact the Investor Relations department at the following address:

Viscom AG Investor Relations Sandra M. Liedtke Carl-Buderus-Straße 9-15 30455 Hanover E-Mail: [email protected] Tel.: +49 511 94996-791 Fax: +49 511 94996-555

INTERIM GROUP MANAGEMENT REPORT BASIC INFORMATION ON THE GROUP

Business model of the Group

Structure of the company and its investees

Viscom AG, Hanover (hereinafter: Viscom AG), is the parent company of the Viscom Group (hereinafter referred to as Viscom). With subsidiaries in Asia, the Americas, Europe, and Africa that are directly or indirectly wholly owned by Viscom AG, the Group has an efficient, market-oriented organisational structure. All the companies are focused on their respective customer groups and their requirements. This enables them to act and respond quickly and flexibly. They also benefit from the advantages of belonging to a larger group, thus enabling the mutual sharing and utilisation of knowledge and experience. Production takes place exclusively in the Group's home base, Hanover. This means that Viscom enjoys the production advantages of one of the most highly developed industrial locations, allowing it to guarantee a very high level of quality for its products.

In 2001, Viscom GmbH changed its legal form to that of a German stock corporation (Aktiengesellschaft) and became Viscom AG. The company's share capital is divided into 9,020,000 shares. 59.87 % of shares are held by company founders Dr. Heuser and Volker Pape, either via intermediary companies and foundations or directly. 6.50 % of the shares are held by Allianz and 3.02 % by Universal-Investment-GmbH.

On 29 July 2008, the Executive Board, with the approval of the Annual General Meeting on 12 June 2008 and following consultation with the Supervisory Board, resolved to acquire up to 902,000 of the company's shares by 31 March 2009. The company had bought back 134,940 shares as at 31 March 2009. As at 30 September 2021, Viscom AG held approximately 1.50 % of its own shares.

The Executive Board of Viscom AG consisted of four members as at 30 September 2021:

Carsten Salewski: Sales Peter Krippner: Operations Dr. Martin Heuser: Development Dirk Schwingel: Finance

The Executive Board is monitored by the three members of the Supervisory Board:

Prof. Dr. Michèle Morner (Chairwoman) Volker Pape (Deputy Chairman) Prof. Dr. Ludger Overmeyer

Segments and key locations

Viscom develops, manufactures and sells high-quality automated inspection systems for use in industrial production. The company's business activities are broken down on the basis of work required for the project-specific adaptation of standard components and systems, and the technology used to identify potential production errors using the inspection systems.

In geographical terms, the company's business incorporates the European market with its headquarters in Hanover and a subsidiary in Paris, France; the sales market of the Americas with its subsidiary in Atlanta, USA, and the Asian market with its subsidiary in Singapore, which in turn has its own subsidiary in Shanghai, China, and a new subsidiary in Huizhou, China. The sales company in Tunis, Tunisia, a subsidiary of the French subsidiary that cultivates and serves the North African sales market, is allocated to the geographical segment Europe.

There were no changes in the Group's activities or structure in the reporting period.

Business processes

The inspection systems are developed and produced at Viscom AG's headquarters in Hanover. This is where all the centralised functions, such as business administration, development, production, service and sales management, are based.

The company's product development activities focus on fundamental development work for future generations of inspection systems and project-specific development to adapt basic types of machinery to meet customer-specific requirements.

A large part of production is order-based. This draws on inhouse pre-production of various assemblies.

Sales activities are performed by Viscom AG's sales employees and customer care teams, its Group companies and agents acting on the market as industry representatives for mechanical engineering firms.

High reliability is also one of the most important aspects when using an inspection system. This requires regular maintenance, repair and calibration. Central service and the customer care teams support Viscom customers with regard to these tasks. Fast reaction times are ensured thanks to the global presence of Viscom's service employees.

Major business processes are managed and supported with the help of the business software proALPHA. The order processing module included in this system is used by all Viscom locations around the world.

Legal and economic factors

The SARS-CoV-2 pandemic is continuing to impact financial markets and economies around the world. Measures to contain the COVID-19 pandemic also had a noticeable impact on Viscom's business in the first nine months of 2021. Travel restrictions led to difficulties for service and sales activities. After a delay, supply chains started up again. A considerable shortage of various components for pre-production, such as semiconductors, is creating global bottlenecks in product manufacturing in many sectors (consumer electronics, computers, telecommunication, automotive industry etc.). These supply chain bottlenecks are also affecting Viscom AG's business and resulting in delays in revenue recognition.

Management system

The key performance indicators by which the Viscom Group is essentially managed are incoming orders, revenue, EBIT (operating profit or segment earnings) and the EBIT-Margin (EBIT/ revenue).

The management of the Group is based on a reporting system that takes the form of monthly reports submitted to management and the heads of the business areas. These monthly reports include the consolidated income statement and individual breakdowns for the various Group companies.

The reports also include a detailed presentation of the cost structure at Viscom AG and its Group companies. They provide information on revenue in the Group's machine installation regions, incoming orders, the order backlog, the number of employees, cash and cash equivalents, total receivables and receivables from subsidiaries, orders placed for the purchase of goods and inventories of goods and completed and partially completed systems.

In addition, they provide an overview of employee turnover, absence due to illness and per capita revenue, in addition to key indicators for project management, product development, production and logistics. The statements contained in the monthly reports are analysed in regular meetings between the Executive Board, all heads of business areas and the managing directors of the individual branches. Any action that may be necessary results in decisions which are usually implemented in the short term.

Research and development

Development activities mainly focus on the ongoing development of existing system solutions and the implementation of new market requirements in the field of optical and X-ray inspection processes. This area also focuses on the definition of new products and systems.

The orientation of research and development activities is described in detail on pages 28 – 29 of Viscom AG's Annual Report 2020. Important events and relevant successes of the continuation of these activities are explained on page 7 of the interim report and have not materially changed in the third quarter of 2021.

Expenditure for research and development, not including design changes for customer-specific adaptations, remained at the previous year's level. Development costs totalling € 1,915 thousand were capitalised in the first nine months of 2021 (previous year: € 2,035 thousand). Capitalised development costs were amortised in the amount of € 1,697 thousand (previous year: € 1,204 thousand).

ECONOMIC REPORT

Macroeconomic and sector development

Macroeconomic development

The global economy is recovering and growth has returned. Global industrial production has picked up again, with international trade also continuing to expand. In the second year of the COVID-19 pandemic, industry is increasingly recovering thanks to higher demand for goods following the sharp slump in spring 2020. Overall, economic activity is continuing its upward course, especially in China, other Asian countries and the US, also benefiting the export-focused German economy. Nevertheless, this upturn is muted by the shortage of intermediate goods in connection with a rapid surge in demand, combined with a considerable hike in commodity prices (e.g. for construction timber) and interruptions to production (e.g. because of a lack of semiconductor products).

Sector development

The inspection of electronic assemblies is Viscom's main revenue segment. Viscom is therefore predominantly represented in the automotive supplier segment within the electronics industry, one of the largest branches of industry in the world. Technical developments in the electronics industry have been an innovation driver for Viscom over the last few years. The volumes and quality requirements of increasingly complex and ever-smaller electronic assemblies are seeing constant growth, meaning that they can only be tested reliably using automated inspection systems. Hidden solder joints, miniaturised components and densely populated printed circuit boards must be inspected safely and quickly. High resolution, reliable fault detection and high throughput are extremely important here. Viscom inspection systems are used everywhere where the requirements for precision and speed are particularly high. The main customers for Viscom products are the automotive electronics sector, manufacturers of consumer and industrial electronics, and service providers (EMS) that manufacture electronic assemblies to order for various sectors. In addition, Viscom systems are increasingly used to subject finished equipment to an automated final optical or X-ray inspection. This includes complete assemblies from the electromobility sector, high-end mobile consumer equipment and, since 2020, significantly more lithium-ion batteries in various designs. In recent years, Viscom has intensified its efforts to gain a foothold in non-automotive industries such as battery production, telecommunication, industrial electronics and semiconductor production.

The company has already established itself with a broader base among SMEs in Europe. At the same time, it is focusing on growth industries in the electromobility and computers, communication and consumer (3C) sectors in Asia in particular.

Target sectors, target markets and target customers

The inspection systems manufactured by Viscom are mainly used in the electronics industry. Producers of electronic components are the main customer segment, accounting for around 68 % of revenue (previous year: 59 %). Some of these companies are involved in production for end consumers. However, the majority of Viscom's customers are suppliers for other companies that manufacture products such as electronic assemblies. These supplier parts are integrated into vehicles as end products such as motor controllers. The remaining 32 % of revenue (previous year: 41 %) relates to manufacturers from other industries, such as battery production, consumer electronics or non-destructive testing (NDT).

With its optical, X-ray and combined inspection systems, Viscom is particularly well represented in production operations with the very highest quality requirements. Accordingly, its main customers are companies who make product safety a top priority. The automotive electronics sector accounts for a particularly high volume of business in this respect.

With the increasing use of in-car electronics and the high reliability requirements for vehicle systems, the automotive industry is one of the most significant customer groups for the inspection of electronic assemblies. These assemblies, which often take the form of safety-related components, such as ABS, ESP, or airbags, are typically inspected using systems such as those offered by Viscom.

As a result of rising technological demands, including in the consumer goods industry, quality pressure is also far higher than in previous years. However, the emphasis is being placed more on process quality, as a stable process improves the delivery quality and, in particular, results in fewer rejects and hence higher levels of production efficiency. At the same time, electronics manufacturers from Asia in particular that were still seen as low-price suppliers just a few years ago are increasingly seeking to position themselves as premium suppliers.

Technological developments and the accompanying technical and economic progress, combined with its international sales and service presence, have helped Viscom to expand its market position and achieve long-term customer retention. By continuously developing its products, improving its business processes and adapting its sales organisation to reflect changing conditions, Viscom is in a position to address the challenges of the future and thus maintain and expand its market position.

Close, long-term customer contacts form the basis for comprehensive and customised service. The results of this cooperation are incorporated into the development of new system solutions and the refinement of proven systems. This allows Viscom to develop new solutions and open up future markets thanks to a high degree of innovation and customer proximity.

Customer structure

In the first nine months of 2021, Viscom generated around 47 % of its revenue with its six largest customers (previous year: around 46 %). A further 30 % of revenue was generated with 22 customers (previous year: 19 customers). The remaining revenue was generated with a total of 345 different customers (previous year: 310 customers).

SUMMARY ANALYSIS OF THE COMPANY'S NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COURSE OF BUSINESS

Results of operations

Incoming orders / order backlog

Orders totalling € 67,728 thousand (previous year: € 42,092 thousand) were received in the first nine months of 2021. This represented a substantial rise of around 61 % rise on the same period of the previous year. Incoming orders in the third quarter of 2021 alone came to € 22,251 thousand (previous year: € 16,788 thousand), a 1.3-fold increase on the same period of the previous year. This increase in incoming orders reflects the ongoing economic upturn and the positive economic development.

The order backlog rose to € 31,846 thousand as at 30 September 2021 (previous year: € 16,468 thousand), corresponding to full capacity utilisation for more than three months.

Revenue development

In the third quarter of 2021, revenue of € 20,751 thousand was recognised. This was 32.5 % higher than in Q1 2021 (€ 15,664 thousand) and 12.7 % higher than in the second quarter of 2021 (€ 18,405 thousand). Viscom's revenue amounted to € 54,820 thousand in the first three quarters of 2021, 31.9 % higher than the previous year's figure (€ 41,563 thousand).

Operating profit (EBIT) / EBIT-Margin

Operating profit totalled € 1,858 thousand in the first three quarters of 2021 (previous year: € -6,964 thousand), corresponding to an EBIT-Margin of 3.4 % (previous year: -16.8 %). The main reasons for the improvement from the previous year were the increase in total operating revenue (total operating revenue defined as revenue plus the change in finished goods and work in progress and other own work capitalised) and lower other operating expenses (€ 6,492 thousand; previous year: € 7,182 thousand). Total operating revenue increased by € 19,730 thousand to € 61,945 thousand (previous year: € 42,215 thousand). Accordingly, the cost of materials was up by € 8,796 thousand at € 27,066 thousand (previous year: € 18,270 thousand). Staff costs rose to € 23,792 thousand as a result of the expiry of the reduced working hours scheme on 30 June 2021 and the general salary adjustment agreed in 2020 (previous year: € 22,444 thousand). Other operating expenses were down on the previous year, attributable chiefly to the reduction in temporary workers and reduced costs for travel, trade fairs, advertising and events. Earnings were strained by the rise in depreciation and amortisation (€ 4,380 thousand; previous year: € 3,873 thousand).

Net finance costs

Financial income amounted to € 0 thousand (previous year: € 1 thousand). Financial expenses of € 202 thousand (previous year: € 181 thousand) resulted from interest on lease and bank liabilities. The financial result was negative at € -202 thousand, down slightly on the previous year's figure (previous year: € -180 thousand).

Net profit for the period

Net profit for the period amounted to € 1,195 thousand (previous year: € -7,181 thousand). The effects in operating profit discussed above and the financial result also affected net profit for the period. Income tax expenses also affected this item.

The pre-tax return on sales was 3.0 % (previous year: -17.2 %).

Earnings per share

On the basis of 8,885,060 shares, earnings per share as at 30 September 2021 amounted to € 0.13 (basic and diluted) as against € -0.81 in the previous year.

Exchange rate effects

Viscom is exposed to exchange rate risks as it operates internationally. The existing level of ex-change rate risk – due to business volume denominated in foreign currency – is considered acceptable. 14.0 % of total revenue was subject to direct exchange rate effects (previous year: 22.5 %). Viscom reserves the right to hedge exchange rates in individual cases.