CENIT AG

Quarterly Report • May 13, 2019

CENIT Aktiengesellschaft, Stuttgart At a glance – January 1 until March 31, 2019
in EUR k	March 31st, 2019	March 31st, 2018
Sales	41,238	40,934
Gross profits	20,814	21,509
EBITDA	2,306	2,153
Operating returns (EBIT)	844	1,428
EBT	825	1,424
Netincome of the group	608	1,060
Earnings per share (basic) in EUR	0.07	0.12
Earnings per share (diluted) in EUR	0.07	0.12
Number of employees at end of period	747	758
EBIT-Margin	2.0%	3.5%
Profit-Margin	1.5%	2.6%
in EUR k	March 31st, 2019	December 31st, 2018
Equity in ratio	38.7%	49.4%
Equity	39,411	39,102
Liabilities	62,512	39,973
Balance sheet total	101,922	79,075

OVERVIEW OF 3 MONTHS FIGURES

During the first three months, CENIT group generated sales of EUR k 41,238 (prior year: EUR k 40,934/0.7%). EBITDA amounted to EUR k 2,306 (prior year: EUR k 2,153/7.1%) at EBIT of EUR k 844 (prior year: EUR k 1,428/-40.9%). Earnings per share were EUR 0.07 (prior year: EUR 0.12).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved in the first three months earnings of EUR k 37,069 (prior year: EUR k 37,570/-1.3%). The EIM segment attained a sales total of EUR k 4,168 against EUR k 3,364 during the same period of 2018 (23.9%). Sales of third-party software totaled EUR k 25,136 (prior year: EUR k 24,694/1.8%), while sales of CENIT's proprietary software decreased from EUR k 3,616 to EUR k 3,401/-5.9%. Sales in the service and consulting segment amounted to EUR k 12,639 (prior year: EUR k 12,553/0.7%). Other sales totaled EUR k 62 (prior year: EUR k 71/-12.7%).

COST DEVELOPMENT

Other expenses totaled EUR k 3,021 (prior year: EUR k 4,146).

INVESTMENTS

Investments expenditures in the first 3 months 2019 amounted to EUR k 463 (prior year: EUR k 456).

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

At the General Meeting of Shareholders on 24 May 2019, the Managing Board and the Supervisory Board of CENIT will propose the payment of a dividend of EUR 0.60 for the 2018 business year. If the General Meeting approves this proposal a total amount of approx. EUR k 5,021 will be paid to the CENIT AG shareholders.

ORDERS SITUATION

The group-wide order intake totaled EUR k 48,940 (prior year: EUR k 53,505/-8.5%). Orders in hand as at 31 March 2019 amounted to EUR k 61,099 (prior year: EUR k 58,048/5.3%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits totaled EUR k 27,268 (31 Dec. 2018: EUR k 18,041). On the other hand, there are current financial liabilities in amount of EUR k 0 (31 Dec. 2018: EUR k 3).

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is EUR k 101,922. Trade receivables totaled EUR k 21,589. On the balancesheet date, equity capital amounted to approx. EUR k 39,411 (31 Dec. 2018: EUR k 39,102) at an equity ratio of 38.7% (31 Dec. 2018: 49.4%). Operative cash flow totaled EUR k 9,989 (prior year: EUR k 13,929).

EMPLOYEES

On 31 March 2018, CENIT employed 747 staff group-wide (prior year: 758).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

For the current year, the CENIT Group expects sales of around EUR 170 million at the previous year's level and earnings (EBIT) of around EUR 10 million.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2019	December 31st, 2018
ASSETS
NON-CURRENT ASSETS
Intangible assets	13,355	13,518
Property, plant and equipment	2,568	2,653
Investment in Joint Venture	60	60
Right of Use related to leasing contracts	15,370	0
Other financial assets	2,500	2,500
Deferred tax assets	877	853
NON-CURRENT ASSETS	34,729	19,584
CURRENT ASSETS
Inventories	23	30
Trade receivables	21,589	24,989
Receivables from Joint Venture	3,336	5,026
Current income tax assets	4,006	2,315
Other receivables	615	891
Cash and cash equivalents	27,268	18,041
Prepaid expenses	10,356	8,199
CURRENT ASSETS	67,193	59,491
TOTAL ASSETS	101,922	79,075

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2019	December 31st, 2018
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	1,042	1,009
Statutory earnings reserve	418	418
Other earnings reserves	13,602	13,663
Profit carried forward	13,310	7,361
Net profit	594	5,948
Equity attributable to shareholders of CENIT AG	38,392	37,825
Non-controlling interests	1,019	1,277
TOTAL EQUITY	39,411	39,102
NON-CURRENT LIABILITIES
Other liabilities	2,634	2,950
Deferred tax liabilities	269	277
NON-CURRENT LIABILITIES	2,902	3,227
CURRENT LIABILITIES
Current bank liabilities	0	3
Trade liabilities	6,022	7,922
Liabilities due to Joint Venture	13	44
Other liabilities	28,871	14,058
Current income tax liabilities	779	789
Other provisions	187	137
Deferred income	23,736	13,793
CURRENT LIABILITIES	59,609	36,746
6 TOTAL EQUITY AND LIABILITIES	101,922	79,075

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
	in EUR k		st Jan – 31st March 1 2019	st Jan – 31st March 1 2018
1.	REVENUE		41,238	40,934
2.	Increase/decrease in work of process		0	0
	Total operating performance		41,238	40,934
3.	Other income		227	351
	Operating performance		41,464	41,285
4.	Cost of materials	20,650		19,776
5.	Personnel expenses	15,487		15,209
6.	Amortization and depreciation of intangible assets and property, plant
	and equipment	1,462		726
7.	Other expenses	3,021		4,146
			40,620	39,857
	OPERATING RESULT (EBIT)		844	1,428
8.	Other interest and similar income	0		0
9.	Other interest and similar expenses	19		4
			-19	-4
	RESULT BEFORE INCOME TAX (EBT)		825	1,424
10.	Income taxes		218	364
	NET INCOME OF THE GROUP FOR THE YEAR		608	1,060
	thereof attributable to the shareholders of CENIT AG		594	996
	thereof attributable to non-controlling
	interests		14	64
	Earnings per share in EUR
basic			0.07	0.12
	diluted		0.07	0.12

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

in EUR k	st Jan – 31st 1	st Jan – 31st 1
	March 2019	March 2018
Cash flow from operating activities
Earnings before tax and net interest	844	1,427
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,462	726
Gains (-) and losses (+) on disposals of non-current assets	0	22
Increase/decrease in other non-current assets and liabilities and provisions	-322	-321
Interest paid	-19	-4
Interest received	0	0
Income tax paid	-881	-890
Cash flow before changes in net working capital	1,084	960
Increase/decrease in trade receivables and other current non-cash assets	2,225	-3,415
Increase/decrease in inventories	7	10
Increase/decrease in current liabilities and provisions	6,673	16,374
Net cash flows from operating activities	9,989	13,929
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	-463	-456
Purchase of shares in fully consolidated entities (net cash outflow)	-137	-200
Income from the sale of property, plant and equipment	0	0
Net cash paid for investing activities	-600	-656
Cash flow from financing activities
Dividends paid to non-controlling interests	-196	-147
Net cash paid for financing activities	-196	-147
Net increase/decrease in cash and cash equivalents	9,193	13,126
Change in cash and cash equivalents due to foreign exchange differences	37	-65
Cash and cash equivalents at the beginning of the reporting period	18,038	20,540
Cash and cash equivalents at the end of the reporting period	27,268	33,601

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

In EUR k		st Jan – 31st 1 March 2019	st Jan – 31st 1 March 2018
Net income for the year		608	1,060
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	33		-49
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		33	-49
Total comprehensive income		641	1,011
Thereof attributable to the shareholders of CENIT AG		627	947
thereof attributable to non-controlling interests		14	64

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited)

	Attributable to shareholders of CENIT AG
in EUR k	Subscribed capital	Capital reserves	Currency translation reserve	Legal reserve	Revenue reserves Other reserves	Profit carried forward	Net income	Non controlling interests	Total
As of 1st January 2018	8,368	1,058	801	418	13,242	6,926	8,803	1,239	40,855
Net income prior year						8,803	-8,803	0	0
Total comprehensive income			208		421		5,948	185	6,762
Dividend distribution						-8,368		-147	-8,515
As of 31st December 2018	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			33			0	594	14	641
Dividends paid to non controlling interests								-196	-196
Acquisition of minorities					61			-61
As of 31st March 2019	8,368	1,058	1,042	418	13,602	15,729	996	1,156	39,411

CENIT Aktiengesellschaft

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

				Reconciliatio
		EIM	PLM	n	Group
in EUR k
External revenue	Q1-Q1 2019	4,169	37,069	0	41,238
	Q1-Q1 2018	3,364	37,570	0	40,934
EBIT	Q1-Q1 2019	518	326	0	844
	Q1-Q1 2018	475	952	0	1,427
Share of profit of	Q1-Q1 2019	0	0	0	0
joint ventures	Q1-Q1 2018	0	0	0	0
Other interest result and	Q1-Q1 2019	0	0	-19	-19
financial result	Q1-Q1 2018	0	0	-4	-4
Income taxes	Q1-Q1 2019	0	0	218	218
	Q1-Q1 2018	0	0	364	364
Net income of the Group	Q1-Q1 2019	519	326	-237	608
	Q1-Q1 2018	475	952	-368	1,059
Segment assets	Q1-Q1 2019	6,661	63,051	32,150	101,862
	Q1-Q1 2018	5,949	56,808	37,972	100,730
Investment in a joint venture	Q1-Q1 2019	0	60	0	60
	Q1-Q1 2018	0	60	0	60
Segment liabilities	Q1-Q1 2019	5,365	46,261	10,886	62,511
	Q1-Q1 2018	8,496	49,426	1,149	59,071
Investments in property, plant and Q1-Q1 2019		65	398	0	463
equipment and intangible assetsQ1-Q1 2018		57	399	0	456
Amortization and depreciation	Q1-Q1 2019	172	1,290	0	1,462
	Q1-Q1 2018	111	615	0	726

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	France	Belgium	Netherlands	Japan	Reconciliation	Consolidation	Group
External revenue		Q1-Q4 2018 21,876 2,398 2,894				840 11,311 1,113		488	318	0	0	41,238
		Q1-Q4 2017 21,949 2,474 2,720				486 11,490	921	555	339	0	0	40,934
Longterm Segment assets		Q1-Q4 2018 25,457	230	432	296	9,968	199	110	21	877	-2,861	34,729
		Q1-Q4 2017 14,675	86	148	62	5,057	4	1	10	810	-2,730	18,123
Investment in a joint venture	Q1-Q4 2018	60	0	0	0	0	0	0	0	0	0	60
	Q1-Q4 2017	60	0	0	0	0	0	0	0	0	0	60
Investments in property, plant and Q1-Q4 2018		328	11	4	36	82	0	0	2	0	0	463
equipment and intangible assets	Q1-Q4 2017	323	52	7	6	68	0	0	0	0	0	456

DIRECTORS' HOLDING:

Number of shares as at March 31st, 2019

Total number of shares :		8,367,758
Management Board:		Supervisory Board:
Kurt Bengel:	6,000	Prof. Dr. Oliver Riedel:	80
Matthias Schmidt:	1,670	Stephan Gier:	0
		Ricardo Malta:	0

Financial Calendar:

13th -15th May 2019	Spring Conference, Frankfurt
24th May 2019	Annual Shareholder's Meeting
st August 2019 1	Release of 6-Months Report 2019
th November 2019 5	Release of 9-Months Report 2019

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