INTERIM REPORT as at 31 March 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

		3M 2021	3M 2020
Revenues	K€	15,664	15,616
EBIT	K€	-203	-2,464
Net profit for the period	K€	-284	-2,578

Balance sheet and cashflow statement figures

		3M 2021	3M 2020
Total assets	K€	83,117	87,722
Equity ratio	%	64,1	63,9
CF from current business	K€	-1,425	3,628
CF from investment	K€	-819	-723
CF from financing	K€	-813	-817
End of period capital	K€	1,354	3,160

		3M 2021	3M 2020
Result per share	€	-0.03	-0.29

Employees

	3M 2021	3M 2020
Employees on 31 March	469	487

VISCOM. VISION TECHNOLOGY.

Founded:

1984 by Dr. Martin Heuser and Volker Pape

Number of employees worldwide: 469

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 German industry is recovering after a turbulent 2020 and gradually pulling out of the crisis. Viscom AG is also feeling the effects of this upturn. Following a strong rally at the end of the year, Viscom AG continued to perform well in 2021. Incoming orders in the first quarter of 2021 rose by around 30 % year-on-year to € 20.7 million (previous year: € 15.9 million), creating very good production capacities for the months ahead.

Revenue in the first quarter was on a par with the previous year's figure at € 15.7 million (previous year: € 15.6 million). Thanks to more efficient processes and savings, in particular in staff costs and other operating expenses, we significantly improved operating profit in the first quarter of 2021 to € -0.2 million compared to € -2.5 million in the previous year.

We custom design our inspection systems to meet the needs and challenges of forward-looking industries such as battery production, semiconductor inspection and telecommunications, in particular 5G and connected devices. In doing so, we seize the opportunities offered by these dynamic growth markets. In the automotive and industrial electronics markets, our 2021 product offensive aims to further strengthen and expand our already strong market position. The automotive industry is facing major challenges in the form of increasing digitalisation and developments towards e-mobility. With our products, we want to help shape this progress and be a reliable partner to our customers. Thanks to our new products in the iX series for automated X-ray inspection, we are excellently placed to meet the requirements of these markets. We anticipate target revenue and incoming orders of between € 70 million and € 80 million in the 2021 financial year. The EBIT-Margin 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.

Thank you for your confidence. We hope that you continue to help us navigate these challenging times and that you 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 0007846867
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 31 March 2021 *	€ 10.95
Percentage change	+14 %
High on 11 February 2021 *	€ 11.80
Low on 12 January 2021 *	€ 8.46
Market capitalisation as at 31 March 2021	€ 98,769,000

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

Share price performance

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

Share price performance

in the reporting period 1 Jan. – 31 March 2021

Viscom AG's shares began the current financial year at a price of € 9.60 on 4 January 2021, and performed positively over the subsequent months. After bottoming out at € 8.46 on 12 January 2021, the share price then performed in line with the positive market environment. Prospects of further economic stimulus by the future Democratic US administration under Joe Biden and the launch of the COVID-19 vaccination drive created economic optimism in January, with Viscom's stock also gaining ground as a result. The shares reached their high for the first quarter of 2021 at € 11.80 on 11 February 2021. The end of February saw increasing pressure on the technology sector and prices plummeted. The Viscom share also declined in this market environment, losing its gains accordingly, before benefiting from optimistic market sentiment again in March. The average price of Viscom's stock was € 10.18 in the first three months of 2021, closing at € 10.95 on 31 March 2021.

Annual General Meeting

The next Annual General Meeting of Viscom AG will take place again in virtual form on 8 June 2021. Further information can be found in the Company/Investor Relations/Annual General Meeting section of our 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.

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. Viscom AG holds around 1.50 % of its own shares as at 31 March 2021.

The Executive Board of Viscom AG has four members as at 31 March 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 COVID-19 pandemic is impacting 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 quarter of 2021. Travel restrictions led to difficulties for service and sales activities. After a delay, supply chains started up again. Please refer to the economic report below for more details on the development of the economy as a whole.

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 and the key figures 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 to 29 of Viscom AG's 2020 annual report and has not changed in the first three months of the current year.

Expenditure for research and development, not including design changes for customer-specific adaptations, was higher than in the previous year. Development costs of € 789 thousand were capitalised in the first three months of 2021 (previous year: € 655 thousand). Capitalised development costs were amortised in the amount of € 613 thousand (previous year: € 401 thousand).

ECONOMIC REPORT

Macroeconomic and sector development

Macroeconomic development

The global economy is continuing to recover but the pandemic is still casting a shadow. Global industrial production picked up again in the last few months, with international trade also continuing to expand. In the second year of the COVID-19 pandemic, global economic performance varies greatly by sector and region. Whereas services involving people remain under strain, 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. Europe, by contrast, is not recovering as rapidly. Nevertheless, the economic losses resulting from higher cases and tighter restrictions are far lower than during the first wave in spring 2020. One reason for this is positive development in industry and goods trading, where there have been no major disruptions to international supply chains or large-scale border closures. Furthermore, sentiment indicators also indicate that the global economy is recovering. Greater optimism is likely a result in part of global vaccination drives.

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 58 % 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 42 % of revenue (previous year: 35 %) relates to manufacturers from other industries, such as consumer electronics or battery production.

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

Viscom generated around 54 % of its revenue with its five largest customers in the first three months of 2021 (previous year: around 44 %). A further 30 % of revenue was generated with 14 customers (previous year: 9 customers). The remaining revenue was generated with a total of 170 different customers (previous year: 185 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 € 20,741 thousand (previous year: € 15,928 thousand) were received in the first three months of 2021. This represented a substantial 30.2 % rise on the same period of the previous year and reflects the positive economic situation at present.

The order backlog rose to € 24,016 thousand as at 31 March 2021 (previous year: € 16,251 thousand), corresponding to full capacity utilisation for more than three months.

Revenue development

As expected, revenue of € 15,664 thousand was recognised in the first quarter of 2021. This was therefore on par with the previous year (previous year: € 15,616 thousand).

Operating profit (EBIT) / EBIT-Margin

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

EBIT amounted to € -203 thousand in the first quarter of 2021 (previous year: € 2,464 thousand). This corresponded to an EBIT-Margin of -1.3 % (previous year: -15.8 %). 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 staff costs (€ 7,572 thousand; previous year: € 8,296 thousand) and other operating expenses (€ 1,935 thousand; previous year: € 2,789 thousand). Total operating revenue increased by € 1,011 thousand to € 18,021 thousand (previous year: € 17,010 thousand). Accordingly, the cost of materials was up by € 192 thousand at € 7,805 thousand (previous year: € 7,613 thousand). Staff costs declined due to reduced working hours and the decrease in the number of employees. 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, events and maintenance. By contrast, earnings were strained by the rise in depreciation and amortisation (€ 1,510 thousand; previous year: € 1,300 thousand).

Net finance costs

Financial income amounted to € 0 thousand (previous year: € 1 thousand). Financial expenses of € 59 thousand (previous year: € 60 thousand) resulted from interest on lease and bank liabilities. The financial result was negative at € -59 thousand, on par with the previous year's figure (previous year: € -59 thousand).

Net profit for the period

Net profit for the period amounted to € -284 thousand (previous year: € -2,578 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 -1.7 % (previous year: -16.2 %).

Earnings per share

On the basis of 8,885,060 shares, earnings per share as at 31 March 2021 amounted to € -0.03 (basic and diluted) as against € -0.29 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. 11.1 % of total revenue was subject to direct exchange rate effects (previous year: 17.6 %). Viscom reserves the right to hedge exchange rates in individual cases.