CENIT AG

Earnings Release • May 18, 2020

3 MONTHS REPORT 2020

GERMANY
Stuttgart STUTTGART
BERLIN
FRANKFURT
HAMBURG
HANOVER
MANNHEIM
MUNICH
MUNICH
OLI SNITZ OELSNITZ RATINGEN
Saarbruecken

CENIT Aktiengesellschaft, Stuttgart At a glance – January 1 until March 31, 2020
in EUR k	March 31st, 2020	March 31st, 2019
Sales	39,228	41,238
Gross profits	20,064	20,814
EBITDA	2,338	2,306
Operating returns (EBIT)	805	844
EBT	762	825
Net income of the group	490	608
Earnings per share (basic) in EUR	0.06	0.07
Earnings per share (diluted) in EUR	0.06	0.07
Number of employees at end of period	738	747
EBIT‐Margin	2.1%	2.0%
Profit‐Margin	1.2%	1.5%
in EUR k	March 31st, 2020	December 31st, 2019
Equity in ratio	42.5%	45.8%
Equity	41,288	40,940
Liabilities	55,755	48,408
Balance sheet total	97,041	89,348

OVERVIEW OF 3 MONTHS FIGURES

During the first three months, CENIT group generated sales of EUR k 39,228 (prior year: EUR k 41,238/‐ 4.9%). EBITDA amounted to EUR k 2,338 (prior year: EUR k 2,306/1.4%) at EBIT of EUR k 805 (prior year: EUR k 844/‐4.7%). Earnings per share were EUR 0.06 (prior year: EUR 0.07).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved earnings of EUR k 35,474 (prior year: EUR k 37,069/‐4.3%) in the first three months. The EIM segment attained a sales total of EUR k 3,754 against EUR k 4,168 during the same period of 2019 (‐9.9%). Sales of third‐party software totaled EUR k 23,724 (prior year: EUR k 25,136/‐5.6%), while sales of CENIT's proprietary software increased from EUR k 3,401 to EUR k 3,640/7.0%. Sales in the service and consulting segment amounted to EUR k 11,594 (prior year: EUR k 12,639/‐8.3%). Other sales totaled EUR k 270 (prior year: EUR k 62/> 100.0%).

COST DEVELOPMENT

Other expenses totaled EUR k 2,413 (prior year: EUR k 3,021).

INVESTMENTS

Investments expenditures in the first three months 2020 amounted to EUR k 258 (prior year: EUR k 463).

CHANGES IN MANAGING AND SUPERVISORY BODIES

None in the first quarter.

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

None.

INTERIM DIVIDEND

No interim dividend has been disbursed.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

Considering the effects of the coronavirus pandemic on the business activities and liquidity of CENIT AG, the Management Board and Supervisory Board have reviewed the original proposal for the appropriation of profits published in the Annual Report 2019 and the prospect of continuing the current dividend policy. After careful consideration, they have agreed that, in the interest of strengthening the company's stability in view of the economic and financial challenges that are expected in the current business year, a dividend payment is not appropriate at present.

ORDERS SITUATION

The group‐wide order intake totaled EUR k 53.872 (prior year: EUR k 48,940/10.1%). Orders in hand as at March 31st, 2020 amounted to EUR k 61,866 (prior year: EUR k 61,099/1.3%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance‐sheet date, bank deposits totaled EUR k 26,960 (31 Dec. 2019: EUR k 18,461).

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance‐sheet total is EUR k 97,041. Trade receivables totaled EUR k 16,834. On the balance‐sheet date, equity capital amounted to approx. EUR k 41,288 (31 Dec. 2019: EUR k 40,940) at an equity ratio of 42.5% (31 Dec. 2019: 45.8%). Operative cash flow totaled EUR k 9,653 (prior year: EUR k 10,828).

EMPLOYEES

On 31 March 2020, CENIT employed staff group‐wide 738 (prior year: 747).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

The COVID 19 pandemic has had a significant impact on the global economy and the countermeasures that have been taken have significantly restricted economic activity since mid‐March.

This will also have a significant impact on the business development of CENIT AG in 2020, especially since the majority of our customers belong to the automotive and aerospace industries, which are currently suffering particularly from the shutdown and production downtimes.

As it is not possible to estimate neither the duration nor the further spread of the pandemic, we are unable to make a reliable sales and earnings forecast at present. We hope that the economic situation will recover by the middle of the second half‐year 2020.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2020	December 31st, 2019
ASSETS
NON‐CURRENT ASSETS
Intangible assets	11,980	12,223
Property, plant and equipment	15,458	16,476
Investment in Joint Venture	60	60
Other financial assets	2,500	2,615
Deferred tax assets	1,228	1,224
NON‐CURRENT ASSETS	31,226	32,598
CURRENT ASSETS
Inventories	40	258
Trade receivables	16,834	20,395
Receivables from investments recognized at equity	5,487	4,413
Contract assets	2,877	3,727
Current tax assets	2,966	1,514
Other receivables	417	408
Cash and cash equivalents	26,960	18,461
Prepaid expenses	10,234	7,574
CURRENT ASSETS	65,815	56,750
TOTAL ASSETS	97,041	89,348

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with	IFRSs) (unaudited)
in EUR k	March 31st, 2020	December 31st, 2019
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	1,134	1,058
Statutory earnings reserve	418	418
Other earnings reserves	13,770	13,771
Profit carried forward	15,161	8,289
Net profit	473	6.872
Equity attributable to shareholders of CENIT AG	40,382	39,834
Non‐controlling interests	906	1,106
TOTAL EQUITY	41,288	40,940
NON‐CURRENT LIABILITIES
Other liabilities	833	834
Pension obligation	1,521	1,480
Non‐current lease liability	10,376	11,027
Deferred tax liabilities	64	142
NON‐CURRENT LIABILITIES	12,794	13,483
CURRENT LIABILITIES
Current bank liabilities	0	0
Trade liabilities	3,967	5,964
Liabilities to investments recognized at equity	15	34
Other liabilities	10,319	10,959
Current lease liability	2,948	3,102
Current income tax liabilities	106	309
Other provisions	142	132
Contract liabilities	25,462	14,425
CURRENT LIABILITIES	42,959	34,925
TOTAL EQUITY AND LIABILITIES	97,041	89,348

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in	accordance	with IFRSs) (unaudited)
in EUR k	1st Jan – 31st Mar 2020	1st Jan – 31st Mar 2019
1. REVENUE		39,228	41,238
2. Increase/decrease in work of process		0	0
Total operating performance		39,228	41,238
3. Other income		377	227
Operating performance		39,605	41,464
4. Cost of materials	19,542		20,650
5. Personnel expenses	15,312		15,487
6. Amortization and depreciation of intangible assets and property, plant
and equipment	1,533 2,413		1,462 3,021
7. Other expenses		38,800	40,620
OPERATING RESULT (EBIT)		805	844
8. Other interest and similar income	0		0
9. Other interest and similar expenses	43		19
		‐43	‐19
RESULT BEFORE INCOME TAX (EBT)		762	825
10. Income taxes		272	218
NET INCOME OF THE GROUP FOR THE YEAR		490	608
thereof attributable to the shareholders of
CENIT AG		473	594
thereof attributable to non‐controlling interests		17	14
Earnings per share in EUR
basic		0.06	0.07
diluted		0.06	0.07

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

	1st Jan –	1st Jan –
in EUR k	31st Mar	31st Mar
	2020	2019
Cash flow from operating activities
Net income of the Group for the year	490	608
Adjusted for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,533	1,462
Gains (‐) and losses (+) on disposals of assets	0	0
Finance cost	43	19
Tax expenses	272	217
Increase/decrease in other non‐current assets	0	0
Increase/decrease in other non‐current liabilities and long‐term provisions	233	‐322
Interest paid	‐43	‐19
Interest received	0	0
Income tax paid	‐897	‐881
Increase/decrease in trade receivables and other current non‐cash assets	‐281	2,225
Increase/decrease in inventories	219	7
Increase/decrease in current liabilities and provisions	8,084	7,512
Net cash flows from operating activities	9,653	10,828
Cash flow from investing activities
Cash paid for purchase of property, plant and equipment and intangible assets	‐258	‐463
Cash paid for purchase of shares in fully consolidated entities (net cash outflow)	‐103	‐137
Cash paid for investments	0	0
Cash received from the sale of property, plant and equipment	0	0
Net cash paid for investing activities	‐361	‐600
Cash flow from financing activities
Cash repayments of lease liability	‐863	‐839
Dividends paid to shareholders	0	0
Dividends paid to non‐controlling interests	0	‐196
Net cash paid for financing activities	‐863	‐1,035
		9,193
Net increase/decrease in cash and cash equivalents	8,429
Change in cash and cash equivalents due to foreign exchange differences	70	37
Cash and cash equivalents at the beginning of the reporting period	18,461	18,038

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

In EUR k		1st Jan – 31st Mar 2020	1st Jan – 31st Mar 2019
Net income for the year		490	608
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	76		33
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		76	33
Total comprehensive income		566	641
Thereof attributable to the shareholders of CENIT AG		549	627
Thereof attributable to non‐controlling interests		17	14

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited) Attributable to shareholders of CENIT AG in EUR k Sub‐ scribed capital Capital reserves Currency translation reserve Revenue reserves Profit carried forward Net income Non‐ controlling interests Total Legal reserve Other reserves As of 1st January 2019 8,368 1,058 1,009 418 13,663 7,361 5,948 1,277 39,102 Net income prior year 5,948 -5,948 0 0 Total comprehensive income ^{49 180} 6,872 ⁹⁰ 7,191 Acquisition of minorities ‐⁷² ‐⁶⁴ ‐¹³⁶ Dividend distribution ‐5,021 ‐196 ‐5,217 As of 31st December 2019 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 ^{76 0 473 17 566} Acquisition of minorities ‐¹ ‐²¹⁷ ‐²¹⁸ As of 31st March 2020 8,368 1,058 1,134 418 13,770 15,161 473 906 41,288

		EIM PLM		Reconciliation	Group
in EUR k
External revenue	Q1 2020	3,754	35,474	0	39,228
	Q1 2019	4,169	37,069	0	41,238
EBIT	Q1 2020	353	452	0	805
	Q1 2019	518	326	0	844
Other interest result and	Q1 2020	0	0	-43	-43
financial result	Q1 2019	0	0	-19	-19
Income taxes	Q1 2020	0	0	272	272
	Q1 2019	0	0	218	218
Net income of the Group	Q1 2020	353	452	-315	490
	Q1 2019	519	326	-237	608
Segment assets	Q1 2020	5,636	60,252	31,153	97,041
	Q1 2019	6,661	63,111	32,150	101,923
Segment liabilities	Q1 2020	6,555	49,028	170	55,753
	Q1 2019	5,365	46,261	10,886	62,512
Investments in property, plant and Q1 2020		28	230	0	258
equipment and intangible assets	Q1 2019	65	398	0	463
Amortization and depreciation	Q1 2020	172	1,361	0	1,533
	Q1 2019	172	1,290	0	1,462

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

EIM = Enterprise Information Management; PLM = Product Lifecycle Management

CENIT Aktiengesellschaft

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

in EUR k		Germany	Switzerland	North America	Romania	Frankreich	Belgium	Netherlands	Japan	Reconciliation	Consolidation	Group
External revenue	Q1 2020	22,397 2,476 1,914				497 10,089	967	486	402	0		0 39,228
	Q1 2019	21,876 2,398 2,894				840 11,311 1,113		488	318	0		0 41,238
Longterm Segment assets	Q1 2020	23,556	203	330	199	8,129	137	79				80 1,228 -2,715 31,226
	Q1 2019	25,458	230	432	296	9,968	199	110	21			877 -2,861 34,729

Financial Calendar:

June‐2 July 2020 Equity Forum Spring Conference, Frankfurt July.2020 Virtual Annual General Meeting, Stuttgart August 2020 Release of 6‐Months Report 2020 November 2020 Release of 9‐Months Report 2020

CENIT AG

Industriestraße 52-54
D-70565 Stuttgart P. $+49\,711\,7825-30$ F. $+497117825-4000$ E. info@cenit.de www.cenit.com