InTiCa : 2024 Quarterly Report 1

2024

INTERIM REPORT Q1

2 InTiCa Systems SE Interim Report Q1 2024

Q1 2024 in figures

The Group

Q1 2022	Q1 2023	Q1 2024	Change
EUR ´000	EUR ´000	EUR ´000	vs. Q1 2023

Sales	26,924	23,736	20,054	-15.5%
Net margin (net result for the period)	2.4%	0.9%	-0.4%	-
EBITDA	2,497	2,101	1,998	-4.9%
EBIT	1,019	615	372	-39.5%
EBT	899	325	-86	-
Net result for the period	649	221	-88	-
Earnings per share (diluted/basic in EUR)	0.15	0.05	-0.02	-
Total cash flow	-3,144	-4,667	-465	-
Net cash flow for operating activities	-269	-2,964	-9	-
Capital expenditure	1,701	1,697	1,271	-25.1%

	Mar 31,	Dec 31,	Mar 31,	Change
	2023	2023	2024	vs. Dec 31,
	EUR ´000	EUR ´000	EUR ´000	2023
Total assets	70,506	67,722	69,325	+2.4%
Equity	22,816	20,827	20,511	-1.5%
Equity ratio	32%	31%	30%	-
Number of employees incl. agency staff	829	761	708	-7.0%

The Stock	Q1 2023	2023	Q1 2024
Closing price (in EUR)	7.70	6.40	4.18
Period high (in EUR)	8.60	8.60	6.45
Period low (in EUR)	7.55	4.95	3.94
Market capitalisation at end of period (in EUR million)	33.01	27.44	17.92
Number of shares	4,287,000	4,287,000	4,287,000

The stock prices are closing prices on XETRA.

InTiCa Systems SE Interim Report Q1 20234 3

Contents

InTiCa Systems in the First Three Months of 2024		4
Foreword by the Board of Directors		4
Board of Directors & Supervisory Board		6
The Stock	7
InTiCa Systems Stock		7
Key data, Share Price Performance & Shareholder Structure		8
Interim Management Report of the Group		9
Economic report		9
Earnings, Asset and Financial Position		10
Risks and Opportunities		12
Outlook		12
Consolidated Interim Financial Statements Q1 2024		13
Consolidated Balance Sheet		14
Consolidated Statement of P&L and Comprehensive Income		16
Consolidated Cash Flow Statement		17
Consolidated Statement of Changes in Equity		18
Notes to the Consolidated Interim Financial Statements		19
Other Information	20
Segment Report			22
Responsibility Statement		23
Financial Calendar		24

4 InTiCa Systems SE Interim Report Q1 2024

Foreword by the Board of Directors

Dear shareholders, employees and business associates,

"There is nothing permanent except change." This much- quoted aphorism by the philosopher Heraclitus is about 2,500 years old. And yet it is a very apt description of the business conditions that we at InTiCa have been facing for many months. The first quarter of 2024 was no exception, as can be seen by looking at the development of our segments.

For a large part of the past financial year, it was the Industry

• Infrastructure segment that stabilized Group sales thanks to its strong growth, and at least partly offset the difficult offtake situation in the Automotive segment. The market only weakened at the end of the year as a result of changes in subsidies and mounting competition from Asia.

In the first quarter, the situation was exacerbated by a sharp downturn in the electro and digital industry, which had been robust for so long. Order intake, production, sales: the sector data took a clear turn for the worse. Our customers in the infrastructure sector also revised their offtake figures sharply downwards in the reporting period.

On the other hand, the automotive industry showed at least partial signs of recovery. However, even that was caused by a sudden change. While electric vehicles were often the only growth spark in the car market in recent reporting periods, they have not yet recovered from the abrupt

withdrawal of subsidies. Instead, in the first quarter, it was hybrids and combustion engines that injected new momentum into the sector. At InTiCa Systems, we registered particularly strong demand for stator coils for hybrid vehicles and coils for dampeners in chassis products.

If change is the only constant, flexibility is required. For a long time, our strategy has therefore been to diversify our product portfolio and specifically generate and utilize synergies. For example, the new products for special electric drives for a European producer and bidirectional e- charging systems of a major US producer are derived from both segments. On its own, that does not guarantee an increase in sales and earnings, but it does at least provide a certain amount of stability and security. With Group sales of EUR 20.1 million and an EBIT margin of 1.9% at the end of the first three months, we are on track for our full-year forecast.

By gaining access to new areas of business and building up a new business for inductive specialty products, we want to become even less dependent on individual market segments in future. The first, small orders have been acquired since the beginning of 2024 and we see potential for mid-sized serial production in the future. Compared with large-scale serial business, the speciality products area commands above-average margins.

InTiCa Systems SE Interim Report Q1 20234 5

Technologies for growth markets

That is particularly important as pressure on margins remains high in the Automotive segment and the flexibility currently required means additional costs for production, personnel and materials management. At the same time, continuous lean management and cost management efforts led to a reduction in the ratio of material costs to total output in the first quarter. Despite pay rises, we also kept the increase in the personnel expense ratio to a minimum.

For the remainder of this year, customers in both segments anticipate that there will be a slight recovery starting in the summer. The company takes a cautious stance on this information and always compares it with the actual order situation. In view of the electrification of key areas of the economy, our fundamental growth drivers remain intact and InTiCa Systems considers that it is still well positioned to benefit from the expected demand for innovative e- solutions.

And since the way up and the way down are one and the same according to Heraclitus, we remain optimistic that our business performance and share price will soon be heading in an upward direction again. We would like to thank our shareholders most sincerely their trust in us in these challenging times, our business partners for their good collaboration, and naturally our employees for their hard work and ideas.

Passau, May 2024

Yours,

Dr. Gregor Wasle	Bernhard Griesbeck
Chairman of the	Member of the
Board of Directors	Board of Directors

6 InTiCa Systems SE Interim Report Q1 2024

Company Boards

Board of Directors

Gregor Wasle

Chairman of the Board of Directors

Dipl.-Ing. Dr. techn.

Engineering graduate

Strategy, investor relations, R&D,

production, finance, human resources and

Bernhard Griesbeck

Member of the Board of Directors

Business administration graduate (FH)

Sales and

logistics centre

Supervisory Board

Udo Zimmer	Werner Paletschek	Christian Fürst
Chairman	Deputy Chairman	Member of the Supervisory Board
Business administration graduate	Business administration graduate	Business administration graduate
Rottach-Egern	Fürstenzell	Thyrnau
- Managing Director of	- Managing director of OWP Brillen	- Managing partner of ziel management
GUBOR Schokoladen GmbH,	GmbH	consulting gmbh
- Managing Director of		- Managing partner of Fürst Reisen
Hans Riegelein GmbH & Co. KG		GmbH & Co. KG
- Managing Director of		- Chairman of the Supervisory Board of
Rübezahl Schokoladen GmbH & Co. KG		Electrovac AG
		- Advisory Board of Eberspächer
		Gruppe GmbH & Co. KG
		- Advisory Board of Karl Bach GmbH &
		Co. KG

InTiCa Systems SE Interim Report Q1 20234 7

The Stock

InTiCa Systems' share price performance1)

Having ended 2023 at EUR 6.40, shares in InTiCa traded sideways in a range of EUR 6.00 to EUR 6.50 in the first weeks of 2024. At their highest point, the Xetra closing price was EUR 6.40. At the end of January, the share price dropped below EUR 6 and traded between EUR 5.00 and EUR 6.00 until mid-February. A renewed setback in mid- February pushed the price down to a low for the period of EUR 3.94 on March 1, 2024. Until the end of March, the share price fluctuated between EUR 4.00 and EUR 4.50 and ended the first quarter of 2024 at EUR 4.18, putting the market capitalization of InTiCa Systems SE at EUR 17.9 million.

In the first three months of 2024, we provided timely information for our shareholders and the general public on current business trends, specific events and the company's overall prospects. A press conference is planned to coincide with the soon coming publication of the Annual Report on 2023 and the presentation will be available for download from the homepage under Investor Relations/ Bilanzpressekonferenzen (German only). The date for this year's Annual General Meeting, which will be held virtually as in previous years, will be announced shortly.

1) Price data based on Xetra, source: Bloomberg

8 InTiCa Systems SE Interim Report Q1 2024

Key data on the share

ISIN	DE0005874846
WKN	587484
Stock market symbol	IS7
Trading segment	Regulated Market
Transparency level	Prime Standard
Designated Sponsor	BankM AG
Research Coverage	SMC Research
No. of shares	4,287,000
	XETRA®, Frankfurt, Hamburg,
Trading exchanges	Berlin, München, Stuttgart,
Düsseldorf

Shareholder structure

Dr. Dr. Axel Diekmann	over 30%
Thorsten Wagner	over 25%
Tom Hiss	over 5%
Treasury stock	1.5%
Management	less than 1%
As of May 15, 2024

Share price performance

in %

InTiCa Systems SE Interim Report Q1 20234 9

Interim Management Report

for the period from January 1 to March 31, 2024

Economic report

General economic conditions

In their spring report 2024, the German Council of Economic Experts reports that the global economy started the year with renewed strength. That was due in particular to a significant recovery in global trade in goods. At the same time, global industrial output is on the rise. Despite high interest rates and increased geopolitical uncertainty, the main drivers of global economic growth are the USA, China and India. By contrast, only weak growth is expected in Latin America. Overall, the Council of Economic Experts expects global GDP to expand by 2.6% in 2024. Rising real wages and the upswing in the global economy should also boost demand in the euro zone in the medium term. The tightening of monetary policy has proven effective and the first interest rate cuts are possible in the coming months. Financing conditions for companies should therefore improve. Nevertheless, only moderate growth of 0.8% is currently predicted for the euro zone. One reason for this cautious forecast is the delayed recovery in Germany. While German GDP fell by 0.5% in the fourth quarter of 2023 compared with the previous quarter, initial estimates indicate a slight increase of 0.2% in Q1 2024. The Council of Economic Experts forecasts growth of this amount for the whole year. It therefore revised its forecast downwards by

0.5 percentage points compared with autumn 2023. In particular, increases in labour costs, persistently high industrial energy prices and the demographically driven reduction in momentum on the labour market are continuing to hold back macroeconomic growth in Germany.

Market and market environment

The German Automotive Industry Association (VDA) reports that, apart from the Japanese market, which has not managed to continue the 2023 growth trend, business conditions in the global automotive industry developed positively in the first quarter of 2024. The Chinese market posted a particularly dynamic development, with new registrations rising 13.0% year-on-year to 4.8 million vehicles between January and March. The challenging macroeconomic situation in China has not yet had an adverse effect on car sales. The USA also reported a considerable increase in sales of light vehicles (passenger cars and light trucks) to 15.5 million units (+5.1%) in the first quarter. Benefiting from solid economic growth and the robust labour market, just over 3.7 million vehicles were sold. On the European car market (EU & EFTA & UK), 3.4 million new cars were registered in the first quarter of this year. That was 4.9% more than in the first quarter of 2023. However, the trend turned negative in March and the shortfall compared with the pre-crisis year 2019 is still 18%. Following these three large markets, India (+11.5%), Brazil (+10.8%) and Mexico (+11.0%) also contributed to the positive overall global trend. In Germany, the picture was mixed in the first quarter. While sector output declined by 9%, orders increased by 6% and new registrations rose by 4%, despite a slump of 14% in the market for battery electric vehicles (BEV) following the abrupt ending of subsidies for privately owned electric vehicles. The simultaneous 20% increase in demand for plug-in hybrids (PHEV) could not prevent new registrations of electric cars dropping by 5% overall compared with the prior-year period. In April, there

10 InTiCa Systems SE Interim Report Q1 2024

was an - in some cases significant - improvement in the German automotive market at all levels, but compared with April 2023, the month had three additional working days. The development of the business climate has recently been more positive. In particular, business expectations were far less pessimistic in April. However, companies still consider orders on hand to be relatively low and complain that a lack of orders is holding back production.

At the beginning of 2024, the German electro and digital industry was unable to continue the dynamic growth seen in the previous year. According to the industry association ZVEI, in the first quarter, aggregate sector sales were down 8.9% year-on-year, with domestic sales (-9.6%) dropping faster than foreign sales (-8.3%).Price-adjusted output actually decreased by 10.8% in the reporting period and sector-wide capacity utilization was 80.5% at the start of the second quarter. The order situation was also negative: across the sector, new orders decreased by 13.5% year-on- year in the first quarter. There was a significant drop in both domestic orders (-15.2%) and foreign orders (-12.1%). In April, roughly one in two companies in the sector reported a lack of orders and this is currently seen as the biggest factor hampering production, well ahead of supply-side bottleneck factors such as the shortage of skilled workers and scarcity of materials. The recent very slight increase in order reach from 4.1 to 4.2 (production) months is small comfort. In all, there was a renewed slight deterioration in the business climate in the German electro and digital industry in April 2024, following four consecutive increases. Both the assessment of the present situation and general business expectations were less favourable than in March and were clearly negative. Only export expectations were positive on balance, although aggregate sector exports slipped 4.3% year-on-year in the first three months. Without the revival of exports to China, the decline would have been even greater because, apart form China, Spain was the only country among the ten largest individual markets where the German electro and digital industry delivered more in the first quarter of 2024 than in the first quarter of 2023.

Significant events in the reporting period

The Supervisory Board of InTiCa Systems SE appointed Mr. Bernhard Griesbeck to the company's Board of Directors with effect from January 15, 2024. He succeeds the longstanding board member Mr. Günther Kneidinger, who left the Board of Directors by mutual agreement on September 30, 2023.

There were no other events of material significance for the company or its assets, financial position or results of operations in the reporting period.

Earnings, asset and financial position

As expected, InTiCa Systems SE made a subdued start to 2024. In the Industry & Infrastructure segment in particular, the market downturn has intensified further. This trend gathered pace at the beginning of this year, bringing a downward adjustment of order offtake figures. In the

Automotive segment sales figures for hybrids and vehicles with combustion engines recently picked up. As a result, the offtake situation improved slightly at the beginning of the year despite the temporary dip in demand for electric vehicles. In both segments, customers anticipate a certain recovery in the second half of 2024 and the underlying growth drivers remain intact.

Analogously to sales, all earnings indicators were lower and the bottom line after three months is a small net loss for the period. However, the continuous endeavours in the areas of lean management and cost management resulted in another significant drop in the ratio of material costs to total output and the personnel expense ratio (including agency staff) only increased slightly.

In spite of the year-on-year decline in interim profit and the pressure on liquidity due to the high degree of flexibility which is necessary in the management of production, personnel and materials, cash flow from operating activities was only slightly negative in the first three months of 2024. The same applies to the overall cash flow; the limited investments were financed by new loans. The equity ratio thus slipped slightly in the reporting period but remains at a solid level.

Earnings position

Group sales declined by 15.5% year-on-year to EUR 20.1 million in the first three months of 2024 (3M 2023: EUR 23.7 million). While sales in the Automotive segment dropped only slightly year-on-year, by 2.3% to EUR 16.0 million (3M 2023: EUR 16.4 million), the Industry & Infrastructure segment saw significant postponements or even cancellation of orders by some customers. Compared to the very strong prior-year quarter, this resulted in a 45.0% decline in sales to EUR 4.0 million (3M 2023: EUR 7.3 million).

At 56.1%, the ratio of material costs to total output in the reporting period was clearly below the prior-year level (3M 2023: 62.0%). By contrast, the personnel expense ratio (including agency staff) increased slightly from 23.9% to 24.1%. At the same time, other operating expenses decreased from EUR 3.1 million in the prior-year period to EUR 2.3 million. The other operating expenses include expenses of EUR 0.3 million (3M 2023: EUR 0.9 million) for agency staff.

Depreciation of property, plant and equipment and amortization of intangible assets amounted to EUR 1.6 million (3M 2023: EUR 1.5 million) in the reporting period, and spending on research and development was EUR 0.7 million (3M 2023: EUR 0.7 million). Development work focused principally on new products in the e-solutions business.

EBITDA (earnings before interest, taxes, depreciation and amortization) only decreased by 4.9% year-on-year to EUR 2.0 million (3M 2023: EUR 2.1 million), with the EBITDA margin above the previous year's level at 10.0% (3M 2023: 8.9%). EBIT (earnings before interest and taxes)