Viscom AG — Investor Presentation 2018

Mar 19, 2019

Viscom AG: Annual Financial Statement 2018

Hannover, 19 March 2019

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.

Contents

• Strategy and Market
• Technology
• Financial Results 2018
• Outlook

2018 – a good year for Viscom

Market: Automotive electronics

More electronics with high inspection requirements

• Electronics for passenger cars expected to account for up to 50% of sales
• 100 control units per car in the premium segment
• Autonomous driving and driver assistance systems
• More cameras and sensors

Market: Electromobility

Global trend

• China and the USA leading
• New electrical components with inspection requirements
• Comparable components for renewable energies
• Growth potential for inspection products/services

Market: Computer, Communication, Consumer

5G mobile technology

• Networking of passenger cars (C2C and C2I)
• Construction of the network infrastructure as well as antennas for transmission and reception
• New production lines for very large printed circuit boards
• Increasing number of end devices

Market: Computer, Communication, Consumer

Global smartphone market

• Volume (>1 billion devices/year) determines the components market
• High-quality mobile devices with inspection requirements
• Large investments in the medium term despite maturity phase

Contents

• Strategy and Market
• Technology
• Financial Figures 2018
• Outlook

Software technology

Viscom's core business

• Image analysis
• 3D computed tomography processes
• Integration and networking with Industry 4.0
• Artificial intelligence as an assistance function

Experience Image recording Software

Research and development

New Viscom inspection systems introduced

AXI application

Void inspection

• Significantly increased demand for pore measurement for surface soldering
• Ensuring heat transfer
• Fields of application: E-mobility, LED technology and high-current applications

3D AOI application

THT-Inspection

• Reliability of soldered THT connections (through-hole technology)
• Ensuring solder quality and pin position
• Application areas: E-mobility, telecommunications and high-voltage applications

New fields of application

Battery inspection

Battery inspection

X-ray technology sales

Competitive advantage through integration know-how

• Viscom sales development with X-ray systems worldwide
• Use in automotive, CCC, battery and industrial applications
• Future technology with potential

Global presence

Contents

• Strategy and Market
• Technology
• Business Figures 2018
• Outlook

Incoming orders and order backlog

Incoming Orders Order backlog*

Incoming orders by region*

		FY 2017	FY 2018
New Orders	K€	90,250	98,750	9,4%
Of which Europe	K€	56,609	67,610	19,4%
Of which America	K€	13,928	10,817	$-22,3%$
Of which Asia	K€	19,713	20,323	3,1%
Unfulfilled Orders**	K€	19,777	24,970	26,3%

* Accounting statement

** Reference date 31 December

Group sales by year

EBIT and EBIT-Margin

Segment information by product group

Segment information by region

* Accounting for consolidation differences

Key figures from the consolidated income statement

	FY 2017		FY 2018		Change from
	K€	% to OP	K€	% to OP	previous year
Sales Revenue	88,542	95.2%	93,557	91.6%	5.7%
Change in inventory	2,104	2.3%	5,571	5.5%	164.8%
Current Development Services	2,317	2.5%	2,952	2.9%	27.4%
Overall Performance (OP)*	92,963	100%	102,080	100%	9.8%
Cost of Materials	$-34,051$	$-36.6%$	$-41,173$	$-40.3%$	20.9%
Personnel Costs	$-28,724$	$-30.9%$	$-33,482$	$-32.8%$	16.6%
Other Operating Expenses	$-16,882$	$-18,2%$	$-17,652$	$-17.3%$	4.6%
EBIT **	13,829	15.6%	10,944	11.7%	$-20.9%$
Net Profit for the Period **	9,073	10.2%	7,814	8.4%	$-13.9%$

* Total output = sales revenues + change in inventories + capitalized development costs

** based on sales revenues

Key balance sheet figures and cash flow statement

	2017/12/31	2018/12/31
Consolidated Balance Sheet	K€	K€
Cash and cash equivalents	11,506	5,740
Short-term Liabilities	11,804	15,276
Long-term Liabilities	2,778	3,846
Interest-bearing Liabilities	0	3,383
Equity	56,760	59,298
	2017/12/31	2018/12/31
Consolidated Cash Flow Statement	K€	K€
Cash Flow from Operating Activities	12,752	1,232
Cash Flow from Investment Activities	-3,428	-5,076
Cash Flow from Financing Activities	-3,999	-5,422

Key figures for earnings, financial situation and net worth

Key Performance Indicators	2017/12/31	2018/12/31
Return on Equity Period Result / Equity	16.0%	13.2%
Return on Investment (ROI) Period Result / Balance Sheet Total	12.7%	9.6%
Return on Sales EBT / Sales	15.6%	11.7%
Return on Capital Employed (ROCE) EBIT / (balance sheet total - cash and cash equivalents - short-term liabilities and provisions)	28.8%	19.1%
Equity Ratio Equity / Balance Sheet Total	79.6%	72.5%

Personnel

Personnel Distribution by Region

Personnel Distribution by Full-time and Part-time

Dividends

Share	2017	2018
Earnings per share	€ 1.02	€ 0.88
Dividends per share *	€ 0.60	€ 0.45

* posed dividend 2018

• Dividend policy: Distribution of at least 50 % of the profit achieved for the period for the 2018 financial year
• The proposed dividend of € 0.45 per participating share for 2018 corresponds to a payout ratio of around 51%
• Dividend yield of 3.3% at year-end price 2018

Contents

• Strategy and Market
• Technology
• Financial Results 2018
• Outlook

Outlook

Guidance 2019

Sales: 94 – 100 Mio. € EBIT-Margin*: 10 – 13 %

* Without consideration of effects due to IFRS 16

Thank you for your attention!

Zentrale: Viscom AG Carl-Buderus-Str. 9 - 15 · 30455 Hannover Tel.: +49 511 94996-0 · Fax: +49 511 94996-900 info@viscom.de · www.viscom.de

Kontakt Investor Relations: Viscom AG, Anna Borkowski Carl-Buderus-Str. 9 – 15 · 30455 Hannover Tel.: +49 511 94996-861 · Fax: +49 511 94996-555 investor.relations@viscom.de · www.viscom.de

Weitere Informationen über Viscom und unsere internationalen Niederlassungen sowie Repräsentanten in Europa, USA und Asien finden Sie unter:

www.viscom.com