CENIT AG

Earnings Release • Nov 3, 2017

CENIT Aktiengesellschaft, Stuttgart
At a glance – January 1 until September,	30, 2017
in EUR k	September 30, 2017	September 30, 2016
Sales	102,219	90,319
Gross profits	57,360	55,516
EBITDA	8,634	9,244
Operating returns (EBIT)	6,926	7,519
EBT	6,907	7,514
Netincome of the group	4,723	5,378
Earnings per share (basic) in EUR	0.56	0.64
Earnings per share (diluted) in EUR	0.56	0.64
Number of employees at end of period	746	616
EBIT‐Margin	6.8%	8.3%
Profit‐Margin	4.6%	6.0%
in EUR k	September 30, 2017	December 31, 2016
Equity in ratio	42.1%	56.2%
Equity	36,490	40,578
Liabilities	50,226	31,643
Balance sheet total	86,716	72,221

DEVELOPMENT OF RESULTS

After nine months, CENIT AG was able to increase its sales by approximately 13 percent, following the consolidation of the subsidiary KEONYS. The company also recorded significant sales growth in the sales of third‐party software (+25.7%), while the sales of own software declined slightly by ‐2.4%.

OVERVIEW OF 6 MONTHS FIGURES

During the first 9 months, CENIT group generated sales of EUR k 102,219 (prior year: EUR k 90,319/13.2%). EBITDA amounted to EUR k 8,634 (prior year: EUR k 9,244/‐6.6%) at EBIT of EUR k 6,926 (prior year: EUR k 7,519/‐7.9%). Earnings per share were EUR 0.56 (prior year: EUR 0.64).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved in the first 9 months earnings of EUR k 90,318 (prior year: EUR k 75,297/19.9%). The EIM segment attained a sales total of EUR k 11,901 against EUR k 15,022 during the same period of 2015 (‐20.8%). Sales of third‐party software totaled EUR k 52,853 (prior year: EUR k 44,964/17.5%), while sales of CENIT's proprietary software decreased from EUR k 11,687 to EUR k 11,409/‐2.4%. Sales in the service and consulting segment amounted to EUR k 37,746 (prior year: EUR k 33,538/12.5%). Other sales totaled EUR k 211 (prior year: EUR k 130/61.6%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 11,006 (prior year: EUR k 10,344).

INVESTMENTS

Investments expenditures in the first 9 months 2017 amounted to EUR k 1,109 (prior year: EUR k 695).

CHANGES IN MANAGING AND SUPERVISORY BODIES

None in the second quarter.

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

The acquisition of the French group KEONYS S.A.S., Paris, was completed on July 1st, 2017, thus consolidating the subsidiaries within the Group. The German company of KEONYS S.A.S., KEONYS Deutschland GmbH was merged with CENIT AG on July 1st, 2017. In the third quarter the KEONYS Group contributed EUR k 14,716 to total revenue and EUR k 235 to EBIT. In addition, CENIT also acquired the majority stake in Synopt GmbH as of July 1st, 2017. In the third quarter Synopt GmbH contributed EUR k 570 to total revenue and EUR k 84 to EBIT.

INTERIM DIVIDEND

No interim dividend has been disbursed.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

At the General Meeting of Shareholders on 12 May 2017, the Managing Board and the Supervisory Board of CENIT proposed the payment of a dividend of EUR 1.00 for the 2016 business year. The General Meeting approved this proposal. A total amount of approx. EUR k 8,368 was paid out to the CENIT AG shareholders.

ORDERS SITUATION

The group‐wide order intake totaled EUR k 98,708 (prior year: EUR k 84,520). Orders in hand as at 30 September 2017 amounted to EUR k 58,152 (prior year: EUR k 30,759).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance‐sheet date, bank deposits totaled EUR k 24,948 (31 Dec. 2016: EUR k 33,606). On the other side there are short‐term bank liabilities in amount of EUR K 1.312 (31 Dec. 2016: EUR k 0).

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance‐sheet total is EUR k 86,716. Trade receivables totaled EUR k 25.363. On the balance‐ sheet date, equity capital amounted to approx. EUR k 36,490 (31 Dec. 2016: EUR k 40,578) at an equity ratio of 42.1% (31 Dec. 2016: 56.2%). Operative cash flow totaled EUR k 6,501 (prior year: EUR k 6,737).

EMPLOYEES

On 30 September 2017, CENIT employed 746 staff group‐wide (prior year: 616).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

As a result of the KEONYS acquisition, CENIT is raising its growth forecast for the 2017 business year. With EBIT remaining virtually unchanged, the company expects on‐year sales growth of about 25%.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	September 30, 2017	December 31, 2016
ASSETS
NON‐CURRENT ASSETS
Intangible assets	15,168	5,230
Property, plant and equipment	2,658	2,208
Investment in Joint Venture	61	61
Income tax receivable	0	0
Deferred tax assets	757	424
NON‐CURRENT ASSETS	18,644	7,923
CURRENT ASSETS
Inventories	81	396
Trade receivables	25,363	19,631
Receivables from Joint Venture	2,536	3,292
Current income tax assets	3,611	442
Other receivables	1,776	209
Cash and cash equivalents	24,948	33,606
Prepaid expenses	9,757	6,722
CURRENT ASSETS	68,073	64,298
TOTAL ASSETS	86,716	72,221

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	September 30, 2017	December 31,2016
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	854	1,279
Statutory earnings reserve	418	418
Other earnings reserves	13,089	13,099
Unappropriated retained earnings	11,530	15,293
Equity attributable to shareholders of CENIT AG	35,317	40,578
Non‐controlling interests	1,173	1,063
TOTAL EQUITY	36,490	40,578
NON‐CURRENT LIABILITIES
Other liabilities	3,664	3,106
Deferred tax liabilities	749	658
NON‐CURRENT LIABILITIES	4,413	3,764
CURRENT LIABILITIES
Bank liabilities	1.312	0
Trade liabilities	11,145	3,679
Liabilities due to Joint Venture	0	39
Other liabilities	16,014	14,169
Current income tax liabilities	281	416
Other provisions	216	211
Deferred income	16,845	9,365
CURRENT LIABILITIES	45,813	27,879
TOTAL EQUITY AND LIABILITIES	86,716	72,221
6

CENIT	Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in	accordance	with IFRSs) (unaudited)
	in EUR k		1st Jan – 30th September 2017	1st Jan – 30th September 2016
1.	REVENUE		102,219	90,319
2.	Increase/decrease in work of process		0	0
	Total operating performance		102,219	90,319
3.	Other operating income		855	817
	Operating performance		103,074	91,136
4.	Cost of materials	45,714		35,620
5.	Personnel expenses	37,720		35,928
6.	Amortization and depreciation of intangible assets and property, plant
	and equipment	1,708		1,725
7.	Other operating expenses	11,006		10,344
			96,148	83,617
	OPERATING RESULT		6,926	7,519
8.	Other interest and similar income	1		3
9.	Other interest and similar expenses	20		8
	RESULT FROM ORDINARY ACTIVITIES		‐19 6,907	‐5 7,514
10.	Income taxes		2,184	2,136
	NET INCOME OF THE GROUP FOR THE YEAR		4,723	5,378
thereof attributable to the shareholders of CENIT AG			4,604	5,378
thereof attributable to non‐controlling interests			119	0
	Earnings per share in EUR
basic			0.56	0.64
	diluted		0.56	0.64

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in	accordance	with IFRSs) (unaudited)
in EUR k		3rd Quarter 2017	3rd Quarter 2016
1. REVENUE		42,939	28,895
2. Increase/decrease in work of process		0	0
Total operating performance		42,939	28,895
3. Other operating income		524	153
Operating performance		43,465	29,048
4. Cost of materials	21,945		11,539
5. Personnel expenses	13,840		10,778
6. Amortization and depreciation of intangible assets and property, plant and equipment	712		486
7. Other operating expenses	4,229		3,405
		40,726	26,208
OPERATING RESULT		2,738	2,841
8. Other interest and similar income	1		3
9. Other interest and similar expenses	16		4
		‐14	‐2
RESULT FROM ORDINARY ACTIVITIES		2,724	2,839
10. Income taxes		422	902
NET INCOME OF THE GROUP FOR THE YEAR		2,302	1,937
thereof attributable to the shareholders of CENIT AG		2,236	1,937
thereof attributable to non‐controlling interests		66	0
Earnings per share in EUR
basic		0.28	0.23
diluted		0.28	0.23

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS)	(unaudited)
	1st Jan – 30th	1st Jan – 30th
in EUR k	September	September
	2017	2016
Cash flow from operating activities
Earnings before tax and net interest	6,926	7,519
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and	1,708	1,725
equipment
Gains (‐) and losses (+) on disposals of non‐current assets	14	‐5
Other non‐cash income and expenses
Increase/decrease in other non‐current assets and liabilities and provisions	‐257	‐227
Interest paid	‐20	‐8
Interest received	1	9
Income tax paid	3,484	‐3,047
Net operating income before changes in net working capital	4,888	5,960
Increase/decrease in trade receivables and other current non‐cash assets	1,501	1,790
Increase/decrease in inventories	394	‐165
Increase/decrease in current liabilities and provisions	‐282	‐848
Net cash flows from operating activities	6,501	6,737
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	‐1,098	‐695
Purchase of shares in fully consolidated entities (net cash outflow)	‐6,197	‐351
Income from the sale of property, plant and equipment	0	5
Net cash paid for investing activities	‐7,295	‐1,041
Cash flow from financing activities
Dividends paid to shareholders	‐8,368	‐8,368
Dividends paid to non‐controlling interests	‐147	0
Net cash paid for financing activities	‐8,515	‐8,368
Net increase/decrease in cash and cash equivalents	‐9,309	‐2,672

CENIT Aktiengesellschaft, Stuttgart

Change in cash and cash equivalents due to foreign exchange differences ‐661 ‐90 Cash and cash equivalents at the beginning of the reporting period 33,606 33,941 Cash and cash equivalents at the end of the reporting period 23,636 31,179

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

In EUR k		1st Jan – 30th September 2017	1st Jan – 30th September 2016
Net income for the year		4,723	5,490
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	‐425		‐83
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		‐425	‐83
Total comprehensive income		4,298	5,957
Thereof attributable to the shareholders of CENIT AG		4,179	5,957
thereof attributable to non‐controlling interests		119	46

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

		Attributable to shareholders of CENIT AG
	Subscribed	Capital	Currency	Revenue reserves		Retained	Non‐	Total
in EUR k	capital	reserves	translation	Legal	Other	earnings	controlling
			reserve	reserve	reserves		interests
As of 1st January 2016	8,368	1,058	1,096	418	14,807	14,096	0	39,843
Total comprehensive income			183		‐223	8,080	65	8,105
Acquisition of a subsidiary							998	998
Withdrawals from / addition
to the revenue reserves					‐1,485	1,485
Dividend distribution						‐8,368	0	‐8,368
As of 31st December 2016	8,368	1,058	1,279	418	13,099	15,293	1,063	40,578
Total comprehensive income			‐425			4,604	119	4,298
Acquisition of a subsidiaries					‐10		138	127
Dividend distribution						‐8.368	0	‐8,368
As of 30 September 2017	8,368	1,058	854	418	13,089	11,530	1,173	36,490

CENIT Aktiengesellschaft

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

		EIM	PLM	Reconciliation	Group
in EUR k
External revenue	Q1‐Q3 2017	11,901	90,318	0	102,219
	Q1‐Q3 2016	15,022	75,297	0	90,319
EBIT	Q1‐Q3 2017	978	5,948	0	6,926
	Q1‐Q3 2016	741	6,778	0	7,519
Share of profit of	Q1‐Q3 2017	0	0	0	0
joint ventures	Q1‐Q3 2016	0	0	0	0
Other interest result and financial result	Q1‐Q3 2017 Q1‐Q3 2016	0 0	0 0	‐19 ‐5	‐19 ‐5
Income taxes	Q1‐Q3 2017	0	0	2,184	2,184
	Q1‐Q3 2016	0	0	2,136	2,136
Net income of the Group	Q1‐Q3 2017	978	5,948	‐2,203	4,723
	Q1‐Q3 2016	741	6,778	‐2,141	5,378
Segment assets	Q1‐Q3 2017	6,479	50,844	29,333	86,656
	Q1‐Q3 2016	7,093	24,756	32,576	64,425
Investment in a joint venture	Q1‐Q3 2017	0	61	0	61
	Q1‐Q3 2016	0	53	0	53
Segment liabilities	Q1‐Q3 2017	5,240	42,645	1,029	48,914
	Q1‐Q3 2016	5,421	19,680	1,609	26,710
Investments in property, plant and	Q1‐Q3 2017	104	1,005	0	1,109
equipment and intangible assets	Q1‐Q3 2016	161	534	0	695
Amortization and depreciation	Q1‐Q3 2017	337	1,371	0	1,708
	Q1‐Q3 2016	390	1,335	0	1,725

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-Q3 2017	65,439	8,581	10,309	1,381	13,454	1,049	474	1,531	0		0 102,219
	Q1-Q3 2016	66,097	9,425	11,867	1,404	380	0	0	1,146	0	0	90,319
Segment assets	Q1-Q3 2017	34,435	3,194	4,996	266	19,800	857	379	841	29,333	-7,444	86,656
	Q1-Q3 2016	29,893	3,357	3,053	308	536	0	0	561	33,000	-6,283	64,426
Investment in a joint venture	Q1-Q3 2017	61	0	0	0	0	0	0	0	0	0	61
	Q1-Q3 2016	53	0	0	0	0	0	0	0	0	0	53
Investments in property, plant and Q1-Q3 2017		951	27	18	36	74	0	0	2	0	0	1,109
equipment and intangible assets	Q1-Q3 2016	588	13	56	31	4	0	0	3	0	0	695

DIRECTORS' HOLDING:

Number of shares as at September 30th, 2017

Total number of shares	:	8,367,758
Management Board:		Supervisory Board:
Kurt Bengel:	6,000	Andreas Schmidt:	88,792
Matthias Schmidt:	1,670	Hubert Leypoldt:	1,600
		Andreas Karrer:	1,000

Financial Calendar:

November 27th‐29th, 2017	German Equity Forum, Frankfurt