CENIT AG

Quarterly Report • May 20, 2021

3 MONTHS REPORT 2021

CENIT Aktiengesellschaft, Stuttgart At a glance – January 1 until March 31, 2021
in EUR k	March 31st, 2021	March 31st, 2020
Sales	36,222	39,228
Gross profits	17,980	20,023
EBITDA	833	2,338
Operating returns (EBIT)	‐522	805
EBT	‐574	762
Net income of the group	‐502	490
Earnings per share (basic) in EUR	‐0.06	0.06
Earnings per share (diluted) in EUR	‐0.06	0.06
Number of employees at end of period	704	738
EBIT‐Margin	‐1.44%	2.05%
Profit‐Margin	‐1.39%	1.25%
in EUR k	March 31st, 2021	December 31st, 2020
Equity in ratio	42.6%	51.2%
Equity	42,236	42,723
Liabilities	56,810	40,726
Balance sheet total	99,046	83,449

OVERVIEW OF 3 MONTHS FIGURES

During the first three months, CENIT group generated sales of EUR k 36,222 (prior year: EUR k 39,228/‐ 7.7%). Due to the ongoing global pandemic, CENIT expectsthe business environment to remain difficult in the fiscal year 2021, which is not likely to improve until the second half of the year. As expected, this resulted in a decline in sales in the first quarter.

The gross profit (operating output less cost of materials) amounted to EUR k 17,980 (prior year: EUR k 20,023), representing a decrease of ‐10.2%. EBITDA amounted to EUR k 833 (prior year: EUR k 2,338/‐ 64.4%) at EBIT of EUR k ‐522 (prior year: EUR k 805/> ‐100.0%). Earnings per share were EUR ‐0.06 (prior year: EUR 0.06).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved earnings of EUR k 32,692 (prior year: EUR k 35,474/‐7.8%) in the first three months. The EIM segment attained a sales total of EUR k 3,530 against EUR k 3,754 during the same period of 2020 (‐6.0%). Sales of third‐party software totaled EUR k 23,641 (prior year: EUR k 23,724/‐0.3%), while sales of CENIT's proprietary software decreased from EUR k 3,640 to EUR k 3,554/‐2.4%. Sales in the service and consulting segment amounted to EUR k 9,018 (prior year: EUR k 11,594/‐22.2%). Other sales totaled EUR k 9 (prior year: EUR k 270/‐96.6%).

COST DEVELOPMENT

Other expenses totaled EUR k 1,851 (prior year: EUR k 2,399).

INVESTMENTS

Investments expenditures in the first three months 2021 amounted to EUR k 336 (prior year: EUR k 258).

CHANGES IN MANAGING AND SUPERVISORY BODIES

Dr. Markus Wesel took over the position of Chief Financial Officer on January 1, 2021, after Matthias Schmidt left the company at his own request on December 31, 2020.

EVENTS OF SPECIAL SIGNIFICANCE WHICH MAY AFFECT THE RESULT OF BUSINESS ACTIVITY

None in the first quarter.

INTERIM DIVIDEND

No interim dividend has been disbursed.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

At the General Meeting of Shareholders on 20 May 2021, the Management Board and the Supervisory Board of CENIT will propose the payment of a dividend of EUR 0.47 for the 2020 business year. If the General Meeting approves this proposal, a total amount of approx. EUR k 3,933 will be paid to the CENIT AG shareholders.

ORDERS SITUATION

The group‐wide order intake totaled EUR k 50,296 (prior year: EUR k 53,872/‐6.6%). Orders in hand as at March 31st, 2021 amounted to EUR k 51,909 (prior year: EUR k 61,866/‐16.1%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance‐sheet date, bank deposits totaled EUR k 32,601 (31 Dec. 2020: EUR k 26,056).

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance‐sheet total is EUR k 99,046. Trade receivables totaled EUR k 20.621. On the balance‐sheet date, equity capital amounted to approx. EUR k 42,236 (31 Dec. 2020: EUR k 42.723) at an equity ratio of 42.6% (31 Dec. 2020: 51.2%). Operative cash flow totaled EUR k 7,676 (prior year: EUR k 9,653).

EMPLOYEES

On 31 March 2021, CENIT employed staff group‐wide 704 (prior year: 738).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

For the current year, the CENIT group expects sales of around 152.000 EUR k and earnings (EBIT) of around 4.900 EUR k provided that the general conditions do not get significantly worse because of the Corona pandemic.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2021	December 31st, 2020
ASSETS
NON‐CURRENT ASSETS
Intangible assets	10,925	11,065
Property, plant and equipment	12,861	13,690
Investment in Joint Venture	60	60
Other financial assets	2,500	2,500
Deferred tax assets	1,296	1,275
NON‐CURRENT ASSETS	27,642	28,590
CURRENT ASSETS
Inventories	22	12
Trade receivables	20,621	14,562
Receivables from investments recognized at equity	3,908	2,514
Contract assets	1,195	2,469
Current tax assets	2,637	1,945
Other receivables	544	692
Cash and cash equivalents	32,601	26,056
Prepaid expenses	9,876	6,609
CURRENT ASSETS	71,404	54,859
TOTAL ASSETS	99,046	83,449

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2021	December 31st, 2020
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	956	941
Statutory earnings reserve	418	418
Other earnings reserves	13,793	13,793
Profit carried forward	17,479	15,161
Net profit	‐514	2.318
Equity attributable to shareholders of CENIT AG	41,558	42,057
Non‐controlling interests	678	666
TOTAL EQUITY	42,236	42,723
NON‐CURRENT LIABILITIES
Other liabilities	613	612
Pension obligation Non‐current lease liability	1,589 8,414	1,575 9,016
Deferred tax liabilities	31	23
NON‐CURRENT LIABILITIES	10,647	11,226
CURRENT LIABILITIES
Trade liabilities	5,164	3,270
Liabilities to investments recognized at equity	0	32
Other liabilities	9,781	8,104
Current lease liability	2,812	2,974
Current income tax liabilities	1,196	1,154
Other provisions	249	70
Contract liabilities	26,961	13,896
CURRENT LIABILITIES	46,163	29,500
TOTAL EQUITY AND LIABILITIES	99,046	83,449

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
in EUR k		1st Jan – 31st Mar 2021	1st Jan – 31st Mar 2020
1.	REVENUE		36,222	39,228
2.	Other income		477	336
	Operating performance		36,699	39,564
3.	Cost of materials	18,720		19,542
4.	Personnel expenses	15,297		15,312
5.	Amortization and depreciation of intangible assets and property, plant and equipment	1,355		1,533
6.	Other expenses	1,851		2,399
			37,223	38,786
7.	Impairment losses (here: reversals) from trade receivables		2	27
	OPERATING RESULT (EBIT)		‐522	805
8.	Other interest and similar income	0		0
9.	Other interest and similar expenses	52		43
			‐52	‐43
	RESULT BEFORE INCOME TAX (EBT)		‐574	762
10.	Income taxes		‐72	272
	NET INCOME OF THE GROUP FOR THE YEAR		‐502	490
	thereof attributable to the shareholders of CENIT AG		‐514	473
	thereof attributable to non‐controlling
	interests		12	17
	Earnings per share in EUR
basic			‐0.06	0.06
diluted			‐0.06	0.06

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS) (unaudited)

	1st Jan –	1st Jan –
in EUR k	31st Mar	31st Mar
	2021	2020
Cash flow from operating activities
Net income of the Group for the year	‐502	490
Adjusted for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,355	1,533
Finance cost	52	43
Tax expenses	‐72	272
Increase/decrease in other non‐current liabilities and long‐term provisions	17	233
Interest paid	‐17	‐43
Income tax paid	‐359	‐897
Increase/decrease in trade receivables and other current non‐cash assets	‐9,553	‐281
Increase/decrease in inventories	‐10	219
Increase/decrease in current liabilities and provisions	16,765	8,084
Net cash flows from operating activities	7,676	9,653
Cash flow from investing activities
Cash paid for purchase of property, plant and equipment and intangible assets	‐280	‐258
Cash paid for purchase of shares in fully consolidated entities (net cash outflow)	0	‐103
Net cash paid for investing activities	‐280	‐361
Cash flow from financing activities
Cash repayments of lease liability	‐837	‐863
Net cash paid for financing activities	‐837	‐863
Net increase/decrease in cash and cash equivalents	6,559	8,429
Change in cash and cash equivalents due to foreign exchange differences	‐14	70
Cash and cash equivalents at the beginning of the reporting period	26,056	18,461
Cash and cash equivalents at the end of the reporting period	32,601	26,960

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)

In EUR k		1st Jan – 31st Mar 2021	1st Jan – 31st Mar 2020
Net income for the year		‐502	490
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	15		76
Items that will not be reclassified to the income statement in the future
Actuarial gains/losses from defined benefit obligations and similar obligations	0		0
Deferred taxes recognised on other comprehensive income	0		0
Other comprehensive income after tax		15	76
Total comprehensive income		‐487	566
Thereof attributable to the shareholders of CENIT AG		‐499	549
Thereof attributable to non‐controlling interests		12	17

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited)
		Attributable to shareholders of CENIT AG
in EUR k	Sub‐ Capital Currency Revenue reserves Profit				Net	Non‐	Total
	scribed capital	reserves	translation reserve	Legal reserve	Other reserves	carried forward	income	controlling interests
As of 1st January 2020	8,368	1,058	1,058	418	13,771	8,289	6,872	1,106	40,940
Net income prior year						6,872	-6,872	0	0
Total comprehensive income			‐117		23		2,318	‐27	2,197
Acquisition of minorities					‐1			‐217	‐218
Dividend distribution								‐196	‐196
As of 31st December 2020	8,368	1,058	941	418	13,793	15,161	2,318	666	42,723
Net income prior year						2.318	-2.318	0	0
Total comprehensive income			15		0		‐514	12	‐487
As of 31st March 2021	8,368	1,058	956	418	13,793	17,479	‐514	678	42,236

CENIT Aktiengesellschaft

Segment Reporting by Business Unit (in accordance with IFRSs) unaudited

				Reconciliatio
		EIM	PLM	n	Group
in EUR k
External revenue	Q1 2021	3,530	32,692	0	36,222
	Q1 2020	3,754	35,474	0	39,228
EBIT	Q1 2021	302	-824	0	-522
	Q1 2020	353	452	0	805
Other interest result and	Q1 2021	0	0	-52	-52
financial result	Q1 2020	0	0	-43	-43
Income taxes	Q1 2021	0	0	-72	-72
	Q1 2020	0	0	272	272
Net income of the Group	Q1 2021	302	-824	20	-502
	Q1 2020	353	452	-315	490
Segment assets	Q1 2021	5,624	56,888	36,534	99,046
	Q1 2020	5,636	60,252	31,153	97,042
Segment liabilities	Q1 2021	7,194	48,388	1,228	56,810
	Q1 2020	6,555	49,028	170	55,753
Investments in property, plant and	Q1 2021	71	265	0	336
equipment and intangible assets	Q1 2020	28	230	0	258
Amortization and depreciation	Q1 2021	109	1,246	0	1,355
	Q1 2020	172	1,361	0	1,533

EIM = Enterprise Information Management; PLM = Product Lifecycle Management

CENIT Aktiengesellschaft

Group Segment Report by Region (in accordance with IFRSs) unaudited

in EUR k		Germany	Synopt	Switzerland	North America	Romania	Frankreich	Belgium	Netherlands	Japan	Japan	Reconciliation	Consolidation	Group
External revenue	Q1 2021	19,215		0 3,237 1,711		627		8,766 1,180 1,174		298	14	0	0	36,222
	Q1 2020	22,397		0 2,476 1,914			497 10,089	967	486	402	0	0	0	39,228
Longterm Segment assets	Q1 2021	21,798	0	137	177	225	6,624	42	286	196			33 1,296 -3,172	27,642
	Q1 2020	23,556	0	203	330	199	8,129	137	79	80			0 1,228 -2,715	31,226

Financial Calendar:

17th‐19th May 2021	Equity Forum Spring Conference, Frankfurt
20th May 2021	Virtual General Meeting of Shareholders, Stuttgart
3rd August 2021	Release 6‐Month Report 2021
4th November 2021	Release 9‐Month Report 2021

CENIT AG

Industriestraße 52-54 D-70565 Stuttgart P. +49 711 7825-30 F. +49 711 7825-4000 E. info@cenit.de www.cenit.com