CENIT AG

Earnings Release • Aug 1, 2017

CENIT Aktiengesellschaft, Stuttgart At a glance – January 1 until June, 30, 2017
in EUR k	June 30, 2017	June 30, 2016
Sales	59,279	61,424
Gross profits	35,841	38,007
EBITDA	5,184	5,917
Operating returns (EBIT)	4,187	4,677
EBT	4,183	4,675
Netincome of the group	2,421	3,441
Earnings per share (basic) in EUR	0.29	0.41
Earnings per share (diluted) in EUR	0.29	0.41
Number of employees at end of period	606	625
EBIT‐Margin	7.1%	7.6%
Profit‐Margin	4.1%	5.6%
in EUR k	June 30, 2017	December 31, 2016
Equity in ratio	51.8%	56.2%
Equity	34,107	40,578
Liabilities	31,767	31,643
Balance sheet total	65,874	72,221

RESPONSIBILITY STATEMENT FOR THE 6 Months Report

Statement in accordance with § 37y No. 1 WpHG [Securities Trading Act] in conjunction with § 297 Para. 2 Sentence 3 and § 315 Para. 1 Sentence 6 HGB [Commercial Code]:

"To the best of our knowledge and in accordance with the applicable reporting principles, we assert that the 6 Months Report provides a true and fair impression of the actual assets and liabilities and the financial and earnings situation of the group, and that the 6 Months Report describes the course of business, including the business result and the financial situation of the group, in such a way as to impart a true and fair impression of actual circumstances, as well as to describe the principal risks and opportunities associated with the anticipated development of the group."

The Managing Board

August 2017

DEVELOPMENT OF RESULTS

In the first half of 2017, sales of CENIT AG decreased by 3.5 percent. This is mainly due to the decline in sales of the third‐party software.

OVERVIEW OF 6 MONTHS FIGURES

During the first 6 months, CENIT group generated sales of EUR k 59,279 (prior year: EUR k 61,424/‐ 3.5%). EBITDA amounted to EUR k 5,184 (prior year: EUR k 5,917/‐12.4%) at EBIT of EUR k 4,187 (prior year: EUR k 4,677/‐10.5%). Earnings per share were EUR 0.29 (prior year: EUR 0.41).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved in the first 6 months earnings of EUR k 51,272 (prior year: EUR k 51,325/‐0.1%). The EIM segment attained a sales total of EUR k 8,007 against EUR k 10,099 during the same period of 2016 (‐20.7%). Sales of third‐party software totaled EUR k 27,337 (prior year: EUR k 28,722/‐4.8%), while sales of CENIT's proprietary software decreased from EUR k 8,059 to EUR k 7,800/‐3.2%. Sales in the service and consulting segment amounted to EUR k 23,975 (prior year: EUR k 24,532/‐2.3%). Other sales totaled EUR k 167 (prior year: EUR k 112/49.9%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 6,778 (prior year: EUR k 6,940).

INVESTMENTS

Investments expenditures in the first 6 months 2017 amounted to EUR k 746 (prior year: EUR k 586).

CHANGES IN MANAGING AND SUPERVISORY BODIES

None in the second 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 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 55,769 (prior year: EUR k 62,887/13.2%). Orders in hand as at 30 June 2017 amounted to EUR k 29,805 (prior year: EUR k 33,293/‐10.5%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance‐sheet date, bank deposits totaled EUR k 27,247 (31 Dec. 2016: EUR k 33,606). The enterprise is free of debt.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance‐sheet total is EUR k 65,874. Trade receivables totaled EUR k 14,863. On the balance‐ sheet date, equity capital amounted to approx. EUR k 34,107 (31 Dec. 2016: EUR k 40,578) at an equity ratio of 51.8% (31 Dec. 2016: 56.2%). Operative cash flow totaled EUR k 3,388 (prior year: EUR k 5,830).

EMPLOYEES

On 30 June 2017, CENIT employed 606 staff group‐wide (prior year: 625).

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	June 30, 2017	December 31, 2016
ASSETS
NON‐CURRENT ASSETS
Intangible assets	5,030	5,230
Property, plant and equipment	2,135	2,208
Investment in Joint Venture	61	61
Income tax receivable	0	0
Deferred tax assets	367	424
NON‐CURRENT ASSETS	7,593	7,923
CURRENT ASSETS
Inventories	69	396
Trade receivables	14,863	19,631
Receivables from Joint Venture	2,865	3,292
Current income tax assets	733	442
Other receivables	5,108	209
Cash and cash equivalents	27,247	33,606
Prepaid expenses	7,396	6,722
CURRENT ASSETS	58,281	64,298
TOTAL ASSETS	65,874	72,221

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	June 30, 2017	December 31,2016
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	901	1,279
Statutory earnings reserve	418	418
Other earnings reserves	13,099	13,099
Unappropriated retained earnings	9,294	15,293
Equity attributable to shareholders of CENIT AG	33,138	39,515
Non‐controlling interests	969	1,063
TOTAL EQUITY	34,107	40,578
NON‐CURRENT LIABILITIES
Other liabilities	2,818	3,106
Deferred tax liabilities	690	658
NON‐CURRENT LIABILITIES CURRENT LIABILITIES	3,508	3,764
Trade liabilities	2,542	3,679
Liabilities due to Joint Venture	4	39
Other liabilities	11,398	14,169
Current income tax liabilities	375	416
Other provisions	143	211
Deferred income	13,797	9,365
CURRENT LIABILITIES	28,259	27,879
TOTAL EQUITY AND LIABILITIES	65,874	72,221

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
	in EUR k	1st Jan – 30th June 2017	1st Jan – 30th June 2016
1.	REVENUE		59,279	61,424
2.	Increase/decrease in work of process		0	0
	Total operating performance		59,279	61,424
3.	Other operating income		330	663
	Operating performance		59,609	62,087
4.	Cost of materials	23.768		24,080
5.	Personnel expenses	23.880		25,150
6.	Amortization and depreciation of intangible assets and property, plant
	and equipment	996		1,240 6,940
7.	Other operating expenses	6.778	55,422	57,410
	OPERATING RESULT		4,187	4,677
8.	Other interest and similar income	0		2
9.	Other interest and similar expenses	4		4
	RESULT FROM ORDINARY ACTIVITIES		‐4 4,183	‐2 4,675
10.	Income taxes		1,762	1,234
	NET INCOME OF THE GROUP FOR THE YEAR		2,421	3,441
	thereof attributable to the shareholders of CENIT AG		2,368	3,406
	thereof attributable to non‐controlling interests		53	35
	Earnings per share in EUR
Basic			0.29	0.41
	diluted		0.29	0.41

CENIT Aktiengesellschaft, Stuttgart

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
in EUR k		2nd Quarter 2017	2nd Quarter 2016
1. REVENUE		29,324	31,796
2. Increase/decrease in work of process Total operating performance		0 29,324	0 31,796
3. Other operating income		65	216
Operating performance		29,389	32,012
4. Cost of materials	12.132		12,531
5. Personnel expenses	11.231		12,660
6. Amortization and depreciation of intangible assets and property, plant and equipment	494		590
7. Other operating expenses	3.499		3,649
		27,355	29,430
OPERATING RESULT		2,034	2,582
8. Other interest and similar income	0		2
9. Other interest and similar expenses	2		2
		‐2	0
RESULT FROM ORDINARY ACTIVITIES		2,032	2,582
10. Income taxes		998	751
NET INCOME OF THE GROUP FOR THE YEAR		1,034	1,831
thereof attributable to the shareholders of CENIT AG		1,000	1,802
thereof attributable to non‐controlling interests		34	29
Earnings per share in EUR
Basic		0.12	0.22
diluted		0.12	0.22

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

in EUR k	1st Jan – 30th	1st Jan – 30th
	June 2017	June 2016
Cash flow from operating activities
Earnings before tax and net interest	4,187	4,677
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	996	1,240
Gains (‐) and losses (+) on disposals of non‐current assets	0	‐5
Other non‐cash income and expenses
Increase/decrease in other non‐current assets and liabilities and provisions	‐258	‐228
Interest paid	‐4	‐4
Interest received	0	2
Income tax paid	‐2,005	‐1,985
Net operating income before changes in net working capital	2,916	3,697
Increase/decrease in trade receivables and other current non‐cash assets	‐811	‐831
Increase/decrease in inventories	326	37
Increase/decrease in current liabilities and provisions	957	2,927
Net cash flows from operating activities	3,388	5,830
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	‐746	‐586
Purchase of shares in fully consolidated entities (net cash outflow)	0	‐351
Income from the sale of property, plant and equipment	6	5
Net cash paid for investing activities	‐740	‐932
Cash flow from financing activities
Dividends paid to shareholders	‐8,368	‐8,368
Dividends paid to non‐controlling interests	‐147
Net cash paid for financing activities	‐8,515	‐8,368
Net increase/decrease in cash and cash equivalents	‐5,867	‐3,470
Change in cash and cash equivalents due to foreign exchange differences	‐492	‐69
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	27,247	30,402

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

In EUR k		1st Jan – 30th June 2017	1st Jan – 30th June 2016
Net income for the year		2.421	3,441
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	‐378		‐66
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		‐378	‐66
Total comprehensive income		2,043	3,375
Thereof attributable to the shareholders of CENIT AG		1,990	3,340
thereof attributable to non‐controlling interests		53	35

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	Revenue reserves Legal reserve	Other reserves	Retained earnings	Non‐ controlling interests	Total
As of 1st January 2016	8,368	1,058	1,096	418	14,807	14,096	0	39,844
Total comprehensive income			183		‐223	8,080	65	8,105
Acquisition of a subsidiary							998	998
Dividend distribution						‐8,368	0	‐8,368
Withdrawals from/addition to the revenue reserves					‐1,485	1,485	0	0
As of 31st December 2016	8,368	1,058	1,279	418	13,099	15,293	1,063	40,578
Total comprehensive income			‐378		0	2,368	53	2,043
Dividend distribution						‐8,368	0	‐8,368
Dividends paid to non‐ controlling interests							‐147	‐147
As of 30 June 2017	8,368	1,058	901	418	13,099	9,294	969	34,107

CENIT Aktiengesellschaft

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

		EIM	PLM	Reconciliation	Group
in EUR k
External revenue	Q1‐Q2 2017	8,007	51,272	0	59,279
	Q1‐Q2 2016	10,099	51,325	0	61,424
EBIT	Q1‐Q2 2017	410	3,777	0	4,187
	Q1‐Q2 2016	112	4,565	0	4,677
Share of profit of	Q1‐Q2 2017	0	0	0	0
joint ventures	Q1‐Q2 2016	0	0	0	0
Other interest result and	Q1‐Q2 2017	0	0	‐4	‐4
financial result	Q1‐Q2 2016	0	0	‐2	‐2
Income taxes	Q1‐Q2 2017	0	0	1,762	1,762
	Q1‐Q2 2016	0	0	1,234	1,234
Net income of the Group	Q1‐Q2 2017	410	3,777	‐1,766	2,421
	Q1‐Q2 2016	112	4,566	‐1,237	3,441
Segment assets	Q1‐Q2 2017	7,583	29,865	28,365	65,813
	Q1‐Q2 2016	8,623	26,008	31,917	66,548
Investment in a joint venture	Q1‐Q2 2017	0	61	0	61
	Q1‐Q2 2016	0	53	0	53
Segment liabilities	Q1‐Q2 2017	7,163	23,540	1,064	31,767
	Q1‐Q2 2016	6,685	22,782	1,286	30,753
Investments in property, plant and	Q1‐Q2 2017	79	667	0	746
equipment and intangible assets	Q1‐Q2 2016	151	435	0	586
Amortization and depreciation	Q1‐Q2 2017	257	739	0	996
	Q1‐Q2 2016	262	978	0	1,240

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	Japan	Reconciliation	Consolidation	Group
External revenue	Q1‐Q2 2017	43,466	6,321	7,194	1,012	200	1,086	0	0	59,279
	Q1‐Q2 2016	44,281	6,460	8,519	1,050	281	833	0	0	61,424
Segment assets	Q1‐Q2 2017	33,841	3,421	4,185	333	285	990	28,365	‐5,607	65,813
	Q1‐Q2 2016	30,984	3,637	4,283	262	457	559	32,297	‐5,931	66,548
Investment in a joint venture	Q1‐Q2 2017	61	0	0	0	0	0	0	0	61
	Q1‐Q2 2016	53	0	0	0	0	0	0	0	53
Investments in property, plant and	Q1‐Q2 2017	684	20	8	29	3	2	0	0	746
equipment and intangible assets	Q1‐Q2 2016	530	13	14	25	4	0	0	0	586

DIRECTORS' HOLDING:

Number of shares as at June 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:

2nd November 2017	Release of 9‐Months Report 2017
27th ‐29th November 2017	German Equity Forum, Frankfurt