INTERIM REPORT as at 30 June 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

		6M 2021	6M 2020
Revenues	K€	34,069	29,468
EBIT	K€	507	-3,873
Net profit for the period	K€	387	-3,957

Balance sheet and cashflow statement figures

		6M 2021	6M 2020
Total assets	K€	84,404	80,601
Equity ratio	%	63.9	67.4
CF from current business	K€	-2,829	6,437
CF from investment	K€	-1,372	-1,513
CF from financing	K€	-1,583	-1,572
End of period capital	K€	-1,395	4,385

		6M 2021	6M 2020
Result per share	€	0.04	-0.45

Employees

	6M 2021	6M 2020
Employees on 30 June	462	479

VISCOM. VISION TECHNOLOGY.

Founded:

1984 by Dr. Martin Heuser and Volker Pape

Number of employees worldwide: 462

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

FOREWORD BY THE EXECUTIVE BOARD

The global economy is continuing to recover and return to growth. Viscom AG is also clearly feeling the effects of this positive global development. We received incoming orders of € 24,736 thousand in the second quarter of 2021 alone (previous year: € 9,376 thousand), representing a 2.6-fold increase on the previous year and the strongest Q2 incoming order situation ever recorded in the history of the Viscom Group. Orders totalling € 45,477 thousand (previous year: € 25,304 thousand) were received in the first six months of 2021, an enormous year-on-year upturn of about 80 %.

Good incoming orders resulted in a higher order backlog of € 30,346 thousand (previous year: € 11,775 thousand), creating very good production capacities for the months ahead. Revenue amounted to € 34,069 thousand, 15.6 % higher than the previous year's figure (€ 29,468 thousand). EBIT totalled € 507 thousand in the first half of 2021 (previous year: € -3,873 thousand), corresponding to an EBIT-Margin of 1.5 % (previous year: -13.1 %). The implemented cost reduction programs and savings measures were vigorously followed and enforced again in the first half of 2021.

Our focus for the market launch of new products in this financial year is on automated X-ray inspection (AXI) systems. This covers a whole range of products that we collectively call the "iX7059 series". The systems perform a range of tasks in addition to conventional assembly inspection and expand Viscom's spectrum of AXI applications. The iX7059 Heavy Duty can also be used to inspect bulky objects that weigh up to 40 kg and are up to 230 mm high, such as inverters for electric vehicles or power modules in the semiconductor market. Consumer end devices such as smartphones, tablets, mini PCs and all types of computer accessories can be checked using the iX7059 Device Inspection. The 5G market and the market for server boards are covered by the new iX7059 PCB Inspection XL, which can inspect circuit boards up to 1,600 mm long and 660 mm wide. Various products for inspecting battery cells are subsumed under the name iX7059 Battery Cell Inspection, e. g. iXcell 2d track, iXcell Carrier and iXcell CT.

We believe we are well positioned to return to sustainable and profitable growth. We continue to anticipate target revenue and incoming orders of between € 70 million and € 80 million in the 2021 financial year. The EBIT-Margin for the 2020 financial year is likely to be between 3 % and 9 %, with EBIT of between € 2.1 million and € 7.2 million. The development of incoming orders and revenue in 2021 will largely depend on the overall economic situation and the ongoing development of the COVID-19 pandemic, as well as increasing supply bottlenecks, chiefly in the automotive industry.

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)	784686
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 June 2021 *	€ 14.05
Percentage change (rounded)	+43 %
High on 11 June 2021 *	€ 14.20
Low on 12 January 2021 *	€ 8.46
Market capitalisation as at 30 June 2021	€ 126,731,000

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

Share price performance

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

■ Viscom (Xetra): 145.4 % ■ DAX (Xetra): 113.1 % ■ TecDAX (Perf.) (Xetra): 109.8 %

Shareholder structure

Share price performance in the reporting period 1 Jan. – 30 June 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. The shares reached their high for the first half of 2021 at € 14.20 on 11 June 2021. The average price of Viscom's stock was € 11.04 in the first six months of 2021, closing at € 14.05 on 30 June 2021.

Annual General Meeting

The Annual General Meeting of Viscom AG was held virtually on 8 June 2021. Of the company's registered share capital of € 9,020,000.00, divided into 9,020,000 no-par value shares, a total of 6,334,826 no-par value shares with the same number of votes, equating to 70.23 % of the registered share capital, were represented during the voting process. In addition, postal votes were received for 56,431 no-par value shares, so that altogether 6,391,257 no par value shares were represented or there were voting ballots for them, equating to 70.86 % of the registered share capital. The Annual General Meeting passed resolutions on approving the actions of the Executive Board and Supervisory Board, appointing the auditor of the annual and consolidated financial statement, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hannover branch, and on remuneration for members of the Supervisory Board. The Annual General Meeting also approved the remuneration system for the Management Board members. The Annual General Meeting also resolved to grant a new authorised capital providing for the possibility of precluding the pre-emptive right for newly issued shares of stock and amending the articles of association.

The next Annual General Meeting of Viscom AG will take place on 8 June 2022. Further information can be found in the Company/Investor Relations/Annual General Meeting section of the website at www.viscom.com.

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 June 2021, the share had two "buy" recommendations.

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

Viscom AG, Investor Relations Anna Borkowski Carl-Buderus-Straße 9-15, 30455 Hanover E-Mail: [email protected] Tel.: +49 511 94996-861 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 which are held directly or indirectly through HPC Vermögensverwaltung GmbH by the company's founders Dr. Martin Heuser and Volker Pape. 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 June 2021, Viscom AG held approximately 1.50 % of its own shares.

The Executive Board of Viscom AG consisted of four members as at 30 June 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. 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 half 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, the utilisation of free overdraft facilities, 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, illness and per capita revenue in addition to key indicators for the customer care teams, 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.

The iX7059 series saw the development in 2020 of various system types that expand the spectrum of market segments for automated x-ray inspection well beyond the inspection of conventional electronic flat assemblies. The broad market launch of the iX7059 Heavy Duty, iX7059 Device Inspection, iX7059 Battery Cell Inspection and iX7059 PCB Inspection XL in the first half of 2021 was very successful. The summary production volumes of these system types have since reached the level of the well-established X7056-II, which is still used to inspect conventional electronic assemblies. Various additional features and functions were developed in the first six months of 2021 that make the iX7059 series even more attractive.

As part of software development, additional analysis modules were implemented that allow artificial intelligence to be used for automated X-ray inspection, too. For example, these may be used to measure voids. Voids are pockets of gas in the solder joints that prevent the transmission of high currents or heat dissipation, especially in the area of power electronics in electric vehicles, and so have to be measured and evaluated.

Production was also successfully started for 3D solder paste measurement. Viscom developed its own 3D sensor system in 2020, which won over many customers in the first half of 2021 thanks to its precision and performance. Almost all 3D systems for solder paste measurement already planned for the future will now be fitted out with Viscom's own 3D sensor system.

Expenditure for research and development, not including design changes for customer-specific adaptations, was lower than in the previous year. Development costs totalling € 1,293 thousand were capitalised in the first six months of 2021 (previous year: € 1,409 thousand). Capitalised development costs were amortised in the amount of € 1,149 thousand (previous year: € 803 thousand).

ECONOMIC REPORT

Macroeconomic and sector development

Macroeconomic development

The global economy is continuing to recover and growth is returning. 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. Leaving aside the shortage of chips, which is likely to prove longer lasting, the commodities shortage and rising prices are better seen as symptoms of a dynamic that proves a hindrance for the time being but that it may be possible to absorb.

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 65 % of revenue (previous year: 65 %). 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 35 % of revenue (previous year: 35 %) relates to manufacturers from other industries, such as battery production, consumer electronics or nondestructive 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 six months of 2021, Viscom generated around 48 % of its revenue with its five largest customers (previous year: around 41 %). A further 30 % of revenue was generated with 18 customers (previous year: 14 customers). The remaining revenue was generated with a total of 271 different customers (previous year: 255 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 € 45,477 thousand (previous year: € 25,304 thousand) were received in the first six months of 2021. This represented a substantial rise of around 80 % rise on the same period of the previous year. Incoming orders in the second quarter of 2021 alone came to € 24,736 thousand (previous year: € 9,376 thousand), a 2.6-fold increase on the same period of the previous year. This increase in incoming orders reflects the current economic upturn and the return to positive economic development.

The order backlog rose to € 30,346 thousand as at 30 June 2021 (previous year: € 11,775 thousand), corresponding to full capacity utilisation for more than three months.

Revenue development

In the second quarter of 2021, revenue of € 18,405 thousand was recognised. This was 17.5 % higher than in Q1 2021 (€ 15,664 thousand) and 32.9 % higher than in the second quarter of the previous year (previous year: € 13,852 thousand). Viscom's total revenue amounted to € 34,069 thousand in the first half of 2021, 15.6 % higher than the previous year's figure (€ 29,468 thousand).

Operating profit (EBIT) / EBIT-Margin

The implemented cost reduction programs and savings measures were vigorously followed and enforced again in the first half of 2021. With revenue up on the previous year, this considerably improved operating profit (EBIT) year on year.

Operating profit totalled € 507 thousand in the first half of 2021 (previous year: € -3,873 thousand), corresponding to an EBIT-Margin of 1.5 % (previous year: -13.1 %). 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 (€ 4,145 thousand; previous year: € 4,849 thousand). Total operating revenue increased by € 9,103 thousand to € 39,062 thousand (previous year: € 29,959 thousand). Accordingly, the cost of materials was up by € 4,312 thousand at € 17,244 thousand (previous year: € 12,932 thousand). Staff costs rose to € 15,456 thousand (previous year: € 15,116 thousand) on account of fewer reduced working hours. 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. By contrast, earnings were strained by the rise in depreciation and amortisation (€ 2,940 thousand; previous year: € 2,590 thousand).

Net finance costs

Financial income amounted to € 0 thousand (previous year: € 1 thousand). Financial expenses of € 133 thousand (previous year: € 123 thousand) resulted from interest on lease and bank liabilities. The financial result was negative at € -133 thousand, down slightly on the previous year's figure (previous year: € -122 thousand).

Net profit for the period

Net profit for the period amounted to € 387 thousand (previous year: € -3,957 thousand). The effects in operating profit discussed above and the financial result also affected net profit for the period. Income taxes also affected this item.

The pre-tax return on sales was 1.1 % (previous year: -13.6 %).

Earnings per share

On the basis of 8,885,060 shares, earnings per share as at 30 June 2021 amounted to € 0.04 (basic and diluted) as against € -0.45 in the previous year.

Exchange rate effects

Viscom is exposed to exchange rate risks as it operates internationally. The existing level of exchange rate risk – due to business volume denominated in foreign currency – is considered acceptable. 12.6 % of total revenue was subject to direct exchange rate effects (previous year: 16.7 %). Viscom reserves the right to hedge exchange rates in individual cases.