CENIT AG

Quarterly Report • May 18, 2022

QUARTERLY STATEMENT Q1 2022

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CENIT GROUP – AT A GLANCE 1 JANUARY TO 31 MARCH 2022 (UNAUDITED)
in EUR k	01/01 - 31/03/2022	Change in %
Key data
Revenue	35,398	34,214	3.5
Third-party software	21,473	21,633	-0,7
from licences	1,248	1,710	-27,0
from recurring sales**	20,225	19,923	1.5
Proprietary software	3,628	3,554	2.1
from licences	792	878	-9.8
from recurring sales**	2,836	2,676	6.0
Consulting and ser vices	10,272	9,018	13.9
Merchandise	25	9	>100.0
EBITDA	726	833	-12.8
EBIT	-387	-522	25.8
as % of sales	-1.09	-1.52	28.3
Net income	-512	-502	-2.0
per share in cent (basic and undiluted af ter minority interests)	-7.1	-6.1	-16.4
Cash flow data
Cash flow from current business activities	11,196	7,676	45.9
Cash flow from investment activity	-158	-280	43.6
Cash flow from financing activity	-749	-837	10.5
Balance sheet ratios	31/03/2022	31/12/2021	Change in %
Liquid assets	36,710	26,361	39.3
Net liquidity	17,808	17,363	2.6
Total assets	98,078	92,805	5.7
Equity ratio in %	44.0	47.0	-6.4
Employees on reporting date	673	704	-4.4

* For a better comparability, the prior-year figures were adjusted based on the effect resulting from the change of accounting from principal to agent (see Notes to the financial statement 2021)

** Subscription and software maintenance contracts

Report on assets, financial and earnings situation

Strong consulting and services business (previous year: +13.9%) and growth in recurring revenue (+2.0%) define the sales performance (EUR +1,184 k, +3.5%) in Q1 2022

In a market environment still characterized by the uncertainties as a result of the war in Ukraine, as well as the COVID 19 pandemic, we succeeded in Q12022 in continuing the positive trend of the fourth quarter of 2021. A major factor contributing to this was a year-on-year increase of EUR 1,254 k (+13.9%) in consulting and service salesin the aerospace segment, among others.

Against the above mentioned background and taking into account a decrease in other operating income (EUR -260 k), a lower material expense ratio (-0.8% points) and inflation-related increases in operational expenses (+2.2%), group EBIT improved by 25.9% to EUR -387 k. The latter was possible despite the loss of approx. EUR 0.8 million in short-time allowances in Q1 2021, which underlinesthe strength of the business model.

Overview of segments

In the first three months of 2022, the performance of the two segments PLM and EIM differed, with the PLM segment increasing segment sales by EUR 1,459 k and segment EBIT by EUR 151 k, which resulted in a segment EBIT of EUR -673 k. In contrast, the EIM segment- as planned - fell slightly short of its prior-year segment sales and segment EBIT, but was able to generate a positive segment EBIT of EUR 286 k.

Earnings per share slightly reduced by tax effects

Despite the increased group EBIT, earnings per share decreased to Cent -7.1(previous year: Cent -6.1) in Q1 2022, due to the tax income still determined in the prior-year quarter.

Very solid financial strength as a result of an operating cash flow increased by EUR 3,520 k (+45.9%) of EUR 11,196 k and cash and cash equivalents of EUR 36,710 k

In the first three months of the fiscal year, the CENIT Group generated a cashflow of EUR 10,289 k (previous year: EUR 6,559 k). This increase in comparison to the prior-year period was generated mainly from higher cash inflows from working capital (EUR +3,714 k), which in turn is the result of the lower level of receivables at the end of the first quarter of 2022. As a consequence, the cash flow from operating activities increased from EUR 7,676 k to EUR 11,196 k (EUR +3,520 k). Consequently, the cashflow was only required to a small extent for investments in non-current assets(EUR 158 k) and for the payment of lease liabilities (EUR 749 k) and thus increased the group's operative liquidity by EUR 10,289 k in comparison to December 31, 2021.

A constantly high consolidated equity ratio of 44%, stable and sustainable net liquidity of more than EUR 17 million and a growing amount of cash and cash equivalents characterizes the CENIT Group's asset position. At the same time, the consolidated balance sheet total increased by EUR +5,273 k compared to December 31, 2021. On the assets side, this development is mainly due to the increase in cash and cash equivalents (EUR +10,349 k) and a corresponding decrease in trade receivables (EUR -5,288 k), while on the liabilities side it is mainly due to traditionally higher liabilities from service contracts in the first quarter (EUR +11,166 k), which are compensated by lower other liabilities (EUR -2,965 k).

Events after the interim report period

With the purchase agreement of April 3, 2022, the CENIT Group acquired 74.9% of the shares of ISR Information Products AG. With its head office in Braunschweig, ISR Information Products AG offers software products and IT solutions in the field of analytics, process digitalization and application management. It has six locations in Germany, employs 200 people and, according to preliminary figures, generated a revenue of EUR 22.8 million, as well as an EBIT of EUR 3.2 million in the 2021 fiscal year.

Employees

As of the reporting date March 31, 2022, the CENIT Group had 673 employees (31/12/2021: 704). Despite the pandemic, we succeeded in keeping staff turnover very low. In the future, too, the economic opportunities arising from the recovery of the global economy are to be taken advantage of with a motivated and well-trained staff. To make this possible, CENIT intends to recruit suitable employees in order to be able to successfully master the future challenges resulting from the planned growth.

Report on opportunities and risks

For information on the principal opportunities and risks – in particular the impact of the COVID-19 pandemic – for the anticipated development of the CENIT Group, we refer to the relevant comments in the Report on expected developments within the Group's management report for the period as of December31, 2021 as well as to the statementsin this quarterly statement.

Report on forecasts and other statements regarding anticipated development

Over the course of a year, business activity is subject to certain seasonal fluctuations. In the past, contributions to sales and earnings tended to be lowest in the first quarter and highest in the fourth quarter, primarily due to a traditionally strong year-end business for the software industry. Consequently, interim results have only limited value as indicators of results for the whole fiscal year.

For the current year, we confirm our adjusted outlook for the CENIT Group, following the acquisition of ISR Information Products AG. We expect sales of around EUR 170,000 k and earnings (EBIT) of around EUR 9,000 k, provided that the general (economic) conditions do not deteriorate significantly due to the war in Ukraine and the Corona pandemic. Currently, the situation in Ukraine results rather in increased sales activities in the PLM defense segment.

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IN ACCORDANCE WITH IFRS)
(UNAUDITED)
in EUR k	01/01 - 31/03/2022	01/01 -31/03/2021*
REVENUE	35,398	34,214
Other operating income	217	477
OPERATING INCOME	35,615	34,691
Cost of materials	16,997	16,712
Personnel expenses	15,649	15,297
Amortisation of intangible assets and depre ciation of property, plant and equipment	1,113	1,355
Other operating expenses	2,228	1,851
OPERATING EXPENSES	35,987	35,215
Impairment from trade receivables	-15	2
NET OPERATING INCOME (EBIT)	-387	-522
Interest income	0	0
Interest expenses	35	52
NET PROFIT (LOSS) BEFORE TAXES (EBT)	-422	-574
Income taxes	90	-72
NET INCOME	-512	-502
Amount attributable to CENIT AG shareholders	-598	-514
Amount attributable to non-controlling interests	86	12
Earnings per share in EUR, basic and diluted	-7,1	-6,1
Itemsthat, under certain circumstances, will be reclassified under the income statement in the future
Compensation from currency translation for foreign subsidiaries	47	15
Other comprehensive income after taxes	47	15
Total comprehensive income	-465	-487
Amount attributable to CENIT AG shareholders	-551	-499
Amount attributable to non-controlling interests	86	12

* For a better comparability, the prior-year figures were adjusted based on the effect resulting from the change of accounting from principal to agent (see notes to the financial statement 2021)

CENIT AKTIENGESELLSCHAFT, STUTTGART CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN ACCORDANCE WITH IFRS) (UNAU
DITED)
in EUR k	31/03/2022	31/12/2021
ASSETS
NON-CURRENT ASSETS
Intangible assets	10,159	10,268
Property, plant and equipment	11,091	11,884
Investments recognised to equity	60	60
Other financial assets	3,184	3,184
Deferred tax assets	879	886
NON-CURRENT ASSETS, total	25,373	26,282
CURRENT ASSETS
Inventories	39	15
Trade receivables	19,425	24,713
Receivables from investments recognised to equity	2,230	2,873
Contract assets	928	2,133
Current tax assets	2,592	2,453
Other receivables	182	493
Cash holdings	36,710	26,361
Other assets	10,599	7,482
CURRENT ASSETS, total	72,705	66,523
TOTAL ASSETS	98,078	92,805

CENIT AKTIENGESELLSCHAFT, STUTTGART CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN ACCORDANCE WITH IFRS) (UNAUDITED)
in EUR k	31/03/2022	31/12/2021
LIABILITIES
EQUITY
Subscribed capital Capital reserves	8,368 1,058	8,368 1,058
Currency translation reserve	1,206	1,159
Legal reserve	418	418
Other reserves	14,076	14,076
Profit carried forward	17,799	13,547
Net income	-598	4,251
Equity attributable to shareholders in the parent company	42,327	42,877
Non-controlling interests	854	768
EQUITY, total	43,181	43,645
NON-CURRENT LIABILITIES
Other liabilities	723	723
Pension liabilities	1,412	1,397
Lease liability, non-current	7,350	7,946
Deferred tax liabilities	15	10
NON-CURRENT LIABILITIES, total	9,500	10,077
CURRENT LIABILITIES
Bank overdrafts	2	2
Trade payables	4,199	6,044
Liabilitiesfrom investments recognised to equity	46	28
Other liabilities	10,928	13,893
Lease liability, current	2,603	2,674
Current income tax liabilities	467	480
Other provisions	109	85
Contract liabilities	27,043	15,877
CURRENT LIABILITIES, total	45,397	39,083
TOTAL ASSETS	98,078	92,805

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF CASH FLOWS (IN ACCORDANCE WITH
IFRS) (UNAUDITED)
in EUR k	01/01 -	01/01 -
Cash flow from operating activities	31/03/2022	31/03/2021
Net income	-512	-502
Depreciation of fixed assets	1,113	1,355
Losses on disposals of assets	0	0
Interest income and expenses	35	52
Tax expenses	90	-72
Increase in other non-current liabilities and reserves	2	17
Change in working capital	10,916	7,202
Interest paid	-4	-17
Income taxes paid	-444	-359
CASH FLOW FROM CURRENT BUSINESS ACTIVITIES	11,196	7,676
Payments for investments in property, plant and equipment and intangible assets	-158	-280
Payments for purchase of shares in fully consolidated entities (net cash out flow)	0	0
Payment for investments	0	0
CASH FLOW FROM INVESTMENT ACTIVITIES	-158	-280
Lease liability payments	-749	-837
Dividends to shareholders in the parent company	0	0
Dividends to non-controlling interests	0	0
CASH FLOW FROM FINANCING ACTIVITIES	-749	-837
CHANGES IN CASH AND CASH EQUIVALENTS	10,289	6,559
Change in cash and cash equivalents due to foreign exchange differences	60	-14
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE REPORTING PERIOD	26,361	26,056
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD	36,710	32,601

CENIT AKTIENGESELLSCHAFT, STUTTGART STATEMENT OF CHANGES IN EQUITY (IN ACCORDANCE WITH IFRS) (UNAUDITED)
	Equity attributable to shareholders in the parent company
in EUR k	Subscribed Capital	Currency	Revenue reserves		Profit carried	Net in	Non-controlling	Total
	capital	reserves	translation re serve	Legal reserve	Other reserves	forward	come	interests
On 01/01/2021	8,368	1,058	941	418	13,793	15,161	2,318	666	42,723
Reclassification of Group net income from last year						2,318	-2,318
Total comprehensive income for the period			218		283		4,251	103	4,855
Dividend distribution						-3,933			-3,933
On 31/12/2021	8,368	1,058	1,159	418	14,076	13,547	4,251	768	43,645
Reclassification of Group net income from last year						4,251	-4,251
Total comprehensive income for the period			47				-598	86	-465
On 31/03/2022	8,368	1,058	1,206	418	14,076	17,799	-598	854	43,181

CENIT AG

Industriestraße 52-54 D-70565 Stuttgart P +49 711 7825-30 E info@cenit.de www.cenit.com