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ISRA Vision ISRA Vision - Impressive track record of generating profitable growth (€ m, %) 120 100 80 60 40 20 0 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 Source: Company data; Hauck & Aufhäuser 2003/04 2004/05 EBIT growth of 19% (CAGR 11E-13E) 2005/06 2006/07 2007/08 2008/09 2009/10 Sales EBITDA EBITDA-to-sales 2010/11E 2011/12E 2012/13E High gross margins are setting the stage for earnings growth High gross margins at levels of 54% supply the basis for operating leverage. The company’s operating cost base is relatively lean, mainly driven by SG&A and R&D costs. In the mid term, the following cost structure looks plausible: • Sales and marketing expenses are assumed to remain < 20% of sales as the distribution of the product is mainly done directly. General and administration at c. 5% of sales. • Total R&D costs are assumed at 14% - 15% of sales driven by the need to constantly invest into new product developments and innovations in view of the largely untapped market potential. This would be in line with the ratio which competitor Cognex is targeting of 10% - 15% of sales going forward. • Depreciation and amortisation around c. 10% of sales (included in cost of sales) • A moderate financial result between 1% - 2% of sales driven by low net debt levels of € 22m per end of 2010/11E, expected to decline going forward. • Resulting in mid-term target EBITDA margins to the tune of 30% and EBT margins of roughly 20%. 35% 30% 25% 20% 15% 10% 5% 0% 10 Hauck & Aufhäuser Institutional Research
ISRA Vision ISRA Vision – division sales and EBIT split EUR m 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11E 2011/12E 2012/13E Divisional sales Industrial Automation 11.0 12.5 14.2 15.8 10.9 11.5 12.3 13.6 15.3 Surface Vision 33.7 35.2 37.0 52.4 47.3 53.3 61.8 70.4 81.7 TTL 44.7 47.7 51.3 68.3 58.2 64.8 74.1 84.0 97.1 Divisional sales shares Industrial Automation 25% 26% 28% 23% 19% 18% 17% 16% 16% Surface Vision 75% 74% 72% 77% 81% 82% 83% 84% 84% TTL 100% 100% 100% 100% 100% 100% 100% 100% 100% Divisional sales growth Industrial Automation na 14% 14% 11% -31% 6% 7% 10% 13% Surface Vision na 4% 5% 42% -10% 13% 16% 14% 16% TTL na 7% 8% 33% -15% 12% 14% 13% 16% Source: Company data, Hauck&Aufhäuser EUR m 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11E 2011/12E 2012/13E Divisional EBIT Industrial Automation 2.0 2.5 2.2 3.0 1.3 1.9 2.3 2.6 3.0 Surface Vision 6.3 7.3 3.9 9.9 7.9 9.6 11.3 13.6 16.2 TTL 8.3 9.7 6.2 12.9 9.3 11.5 13.6 16.2 19.1 Divisional EBIT margin Industrial Automation 18.1% 19.5% 15.8% 19.2% 12.3% 16.3% 18.4% 19.2% 19.3% Surface Vision 18.6% 20.7% 10.5% 18.9% 16.8% 18.0% 18.3% 19.3% 19.8% TTL 18.5% 20.4% 12.0% 18.9% 15.9% 17.7% 18.3% 19.3% 19.7% Source: Company data, Hauck&Aufhäuser 11 Hauck & Aufhäuser Institutional Research
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Page 17 and 18: ISRA Vision Cash flow analysis 90%
Page 19 and 20: ISRA Vision Valuation The valuation
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Page 27 and 28: ISRA Vision Balance sheet (EUR m) 2
Page 29 and 30: ISRA Vision Key ratios (EUR m) 2006
Page 31 and 32: ISRA Vision Important Disclosures T

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