Interim Group Management Report

of InVision AG as of 30 June 2020 pursuant to §315 of the German Commercial Code (condensed/unaudited)

Information pursuant to § 315 a HGB

The resolutions passed at the Annual General Meeting on 29 May 2020 can be found at https://www.ivx.com/investors/corporate-governance/articles-of-association.

Results of operation

Consolidated revenues decreased by 2 percent to TEUR 6,236 during the reporting period (previous year: TEUR 6,395). Workforce Management revenues decreased by 3 percent to TEUR 5,995 (previous year: TEUR 6,211). Education revenues increased by 31 percent to TEUR 241 (previous year: TEUR 184).

Other operating income was at TEUR 34 (previous year: TEUR 78).

The operating result (EBIT) increased in the reporting period to TEUR 453 (previous year: TEUR 365). The EBIT margin in the first-half of the year was 7 percent (previous year: 6 percent).

Despite the global economic slowdown caused by the corona pandemic, there were no significant negative effects on the Group’s earnings situation in the reporting period. The high level of uncertainty regarding the further course of the pandemic and the associated economic consequences led to the short-term postponement of customer projects and the modification of payment terms in individual cases.

The Group’s business facilities were temporarily closed to protect the employees. Short-time work was introduced for a small number of employees of InVision AG whose activities are directly related to the operation of the offices and office infrastructure. Corresponding support measures from the German Federal Employment Agency (“Kurzarbeitergeld”) were utilised.

Travel activities were reduced to a minimum. Business operations were maintained without interruption in remote setup. Services within the context of customer projects are currently also provided exclusively remotely. The financial consequences of the change are reflected primarily in a reduction in other operating expenses.

In the reporting period, the consolidated result equalled TEUR -69 (previous year: TEUR 203). Earnings per share were EUR -0.02 (previous year: EUR 0.09), based on an average of 2,235,000 shares (previous year: 2,235,000 shares).

Net assets and financial position

Cash flow from operating activities reached TEUR 2,119 in the reporting period (previous year: TEUR 2,918), which corresponds to a share of 34 percent of the Group revenues (previous year: 46 percent).

As of the end of the reporting period, liquid funds (cash) increased to TEUR 9,594 (31 December 2019: TEUR 2,616).

The balance sheet total equalled TEUR 24,621 (31 December 2019: TEUR 18,214), as of the end of the reporting period. Equity capital is now at TEUR 13,057 (31 December 2019: TEUR 13,125), and the equity ratio equals 53 percent (31 December 2019: 72 percent).

Opportunities & risks

Reasonable opportunities for the business development of the InVision Group are described in the forecast report of this interim Group management report and in the Group management report of the previous fiscal year. The risks are described in the Group management report for the previous fiscal year.

Supplement report

After the end of the reporting period, there were no specific events which were of significant importance for the interim financial report.

Forecast report

InVision expects demand for the products of the InVision Group to remain stable over the next few years, which means that there are opportunities to exploit the revenue potential on a sustainable basis.

The International Monetary Fund has now adjusted its forecasts for 2020 due to the corona pandemic and now expects economic output in the euro zone to decline by -10.2 percent (previously +1.1 percent) and in the USA by -8.0 percent (previously +2.0 percent).

Under the given economic conditions, the Company expects delays in the acquisition of new customers and revenue reductions for existing contracts in individual cases.

The corona pandemic also affects the recruitment efforts of the company. In Europe, increased uncertainty has led to a significant decrease in the willingness of candidates to seek a new job. The recruitment measures originally planned for the 2020 financial year to strengthen activities in the areas of sales, customer service and research and development will therefore probably not be implemented at the planned speed.

As a result, the company expects lower expenses than originally planned in the short term and lower revenue growth in the medium term.

InVision now expects revenues of between TEUR 11,600 and TEUR 12,600 and EBIT of between TEUR -500 and TEUR +500 for the current fiscal year.

Düsseldorf, 13 August 2020

The Executive Board

Peter Bollenbeck