CENIT AG

Quarterly Report • Nov 4, 2015

CENIT Aktiengesellschaft, Stuttgart AT A GLANCE
At a glance – January 1 until September, 30, 2015
in EUR k	September 30, 2015	September 30, 2014
Sales	89,424	91,364
Gross profits	56,762	55,520
EBITDA	9,203	8,524
Operating returns (EBIT)	7,633	6,719
EBT	7,661	6,838
Netincome of the group	5,490	4,748
Earnings per share (basic) in EUR	0.66	0.57
Earnings per share (diluted) in EUR	0.66	0.57
Number of employees at end of period	632	657
EBIT-Margin	8.5%	7.4%
Profit-Margin	6.1%	5.2%
in EUR k	September 30, 2015	December 31, 2014
Equity in ratio	56.7%	58.8%
Equity	37,778	39,352
Liabilities	28,864	27,533
Balance sheet total	66,642	66,885

DEVELOPMENT OF RESULTS

After nine months EBIT has increased significantly compared to last year (+13.6%) as well as the sales of own software, which could be increased by around +20% to EUR k 11,027. However, total sales declined slightly by 2.1%.

OVERVIEW OF 9 MONTHS FIGURES

During the first 9 months, CENIT group generated sales of EUR k 89,424 (prior year: EUR k 91,364/-2.1%). EBIT DA amounted to EUR k 9,203 (prior year: EUR k 8,524/8.0%) at EBIT of EUR k 7,633 (prior year: EUR k 6,719/13.6%). Results per share were EUR 0.66 (prior year: EUR 0.57).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved earnings of EUR k 71,962 (prior year: EUR k 71,603/0.5%). The EIM segment attained a sales total of EUR k 17,462 against EUR k 19,761 during the same period of 2014 (-11.6%). Sales of third-party software totaled EUR k 39,695 (prior year: EUR k 41,360/-4.0%), while sales of CENIT's proprietary software increased from EUR k 9,220 to EUR k 11,027/19.6%. Sales in the service and consulting segment amounted to EUR k 38,505 (prior year: EUR k 40,422/-4.7%). Other sales totaled EUR k 197 (prior year: EUR k 362/-45.6%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 10,959 (prior year: EUR k 10,543).

INVESTMENTS

Investments expenditures in the first 9 months 2015 amounted to EUR k 1,378 (prior year: EUR k 1,449).

CHANGES IN MANAGING AND SUPERVISORY BODIES

None in the third quarter.

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

There were no reportable transactions.

INTERIM DIVIDEND

No interim dividend has been disbursed.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

At the General Meeting of Shareholders on 13 May 2015, the Managing Board and the Supervisory Board of CENIT proposed the payment of a dividend of EUR 0.90 for the 2014 business year per share. The General Meeting approved this proposal. A total amount of approx. EUR k 7,531 was paid out to the CENIT AG shareholders.

ORDERS SITUATION

The group-wide order intake totaled EUR k 87,774 (prior year: EUR k 90,261/-2.8%). Orders in hand as at 30 September 2015 amounted to EUR k 33,193 (prior year: EUR k 34,458/-3.7%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits totaled EUR k 33,260 (31 Dec . 2014: EUR k 33,250). The enterprise is free of debt.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is EUR k 66,642. Trade receivables totaled EUR k 17,522. On the balance-sheet date, equity capital amounted to approx. EUR k 37,778 (31 Dec . 2014: EUR k 39,352) at an equity ratio of 56.7% (31 Dec . 2014: 58.8%). Operative cash flow totaled EUR k 8,594 (prior year: EUR k 4,598).

EMPLOYEES

On 30 September 2015, CENIT employed 632 staff group-wide (prior year: 657).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

For the current year, the CENIT Group targets consistent sales. On the whole, CENIT is anticipating a rise of 8-10% in earnings (EBIT).

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	September 30, 2015	December 31, 2014
ASSETS
NON-CURRENT ASSETS
Intangible assets	3,625	3,910
Property, plant and equipment	2,644	2,488
Investment in associates	54	54
Income tax receivable	176	169
Other longterm receivables	0	83
Deferred tax assets	310	248
NON-CURRENT ASSETS	6,809	6,952
CURRENT ASSETS
Inventories	35	7
Trade receivables	17,522	17,377
Receivables from associates	2,778	3,265
Current income tax assets	1,545	978
Other receivables	119	181
Cash and cash equivalents	33,260	33,250
Prepaid expenses	4,574	4,875
CURRENT ASSETS	59,833	59,933
TOTAL ASSETS	66,642	66,885

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	September 30, 2015	December 31, 2014
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	1,016	549
Statutory earnings reserve	418	418
Other earnings reserves	14,648	14,648
Unappropriated retained earnings	12,270	14,311
TOTAL EQUITY	37,778	39,352
NON-CURRENT LIABIL ITIES
Other liabilities	2,238	2,236
Deferred tax liabilities	891	653
NON-CURRENT LIABIL ITIES	3,129	2,889
CURRENT LIABILITIES
Trade liabilities	2,476	4,168
Liabilities due to associates	26	51
Other liabilities	12,506	12,571
Current income tax liabilities	379	537
Other provisions	406	820
Deferred income	9,942	6,497
CURRENT LIABILITIES	25,735	24,644
TOTAL EQUITY AND LIABILITIES	66,642	66,885

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
in EUR k		1st Jan – 30th Sept. 2015	1st Jan – 30th Sept. 2014
1. REVENUE		89,424	91,364
2. Increase/decrease in work of process		0	0
Total operating performance		89,424	91,364
3. Other operating income		1,523	545
Operating performance		90,947	91,909
4. Cost of materials	34,185		36,389
5. Personnel expenses	36,600		36,453
6. Amortization and depreciation of intangible assets and property, plant and equipment	1,570		1,805
7. Other operating expenses	10,959		10,543
		83,314	85,190
OPERATING RESULT		7,633	6,719
8. Other interest and similar income	37		131
9. Other interest and similar expenses	9		12
		28	119
RESULT FROM ORDINARY ACTIVITIES		7,661	6,838
10. Income taxes		2,171	2,090
NET INCOME OF THE GROUP FOR THE YEAR		5,490	4,748
thereof attributable to the shareholders of
CENIT AG		5,490	4,748
Earnings per share in EUR
Basic		0.66	0.57
diluted		0.66	0.57

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited)
in EUR k		3rd Quarter 2015	3rd Quarter 2014
1. REVENUE		30,241	31,664
2. Increase/decrease in work of process		0	0
Total operating performance		30,241	31,664
3. Other operating income		239	119
Operating performance		30,480	31,784
4. Cost of materials	11,871		13,223
5. Personnel expenses	11,822		11,864
6. Amortization and depreciation of intangible assets and property, plant and equipment	530		589
7. Other operating expenses	3,489		3,653
		27,712	29,329
OPERATING RESULT		2,768	2,455
8. Other interest and similar income	6		43
9. Other interest and similar expenses	3		4
		3	39
RESULT FROM ORDINARY ACTIVITIES		2,771	2,494
10. Income taxes		863	791
NET INCOME OF THE GROUP FOR THE YEAR		1,908	1,702
thereof attributable to the shareholders of CENIT AG		1,908	1,702
Earnings per share in EUR
Basic		0.23	0.20
diluted		0.23	0.20

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS) (unaudited)
in EUR k	Sept. 30, 2015	Sept. 30, 2014
Cash flow from operating activities
Earnings before tax and net interest	7,633	6,719
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,570	1,805
Gains (-) and losses (+) on disposals of non-current assets	-5	1
Result from associates	0	0
Other non-cash income and expenses	0	-127
Increase/decrease in other non-current assets and liabilities and provisions	-103	-93
Interest paid	-9	-12
Interest received	37	131
Income tax paid	-2,727	-2,327
Net operating income before changes in net working capital	6,396	6,097
Increase/decrease in trade receivables and other current non-cash assets	1,450	-4,563
Increase/decrease in inventories	-23	-70
Increase/decrease in current liabilities and provisions	771	3,134
Net cash flows from operating activities	8,594	4,598
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	-1,378	-1,449
Purchase of shares in fully consolidated entities (net cash outflow)	0	-686
Income from the sale of property, plant and equipment	23	9
Net cash paid for investing activities	-1,355	-2,126
Cash flow from financing activities
Dividends paid to shareholders	-7,531	-2,929
Net cash paid for financing activities	-7,531	-2,929
Net increase/decrease in cash and cash equivalents	-292	-457
Change in cash and cash equivalents due to foreign exchange differences	302	304
Cash and cash equivalents at the beginning of the reporting period	33,250	26,632
Cash and cash equivalents at the end of the reporting period	33,260	26,479

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)
In EUR k		1. Jan. 2015 - 30. Sep. 2015	1. Jan. 2014 - 30. Sep. 2014
Net income for the year		5,490	4,748
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	467		312
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		467	312
Total comprehensive income		5,957	5,060
Thereof attributable to the shareholders of CENIT AG		5,957	5,060

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited)
	Subscribed	Capital	Currency		Revenue reserves	Retained	Total
in EUR k	capital	reserves	translation reserve	Legal reserve	Other reserves	earnings
As of 1st
January 2014	8,368	1,058	97	418	15,607	10,382	35,930
Total
comprehensive			452		-459	6,358	6,351
income
Allocation to
other revenue
reserves Dividend					-500	500	0
distribution						-2,929	-2,929
As of 31st
December 2014	8,368	1,058	549	418	14,648	14,311	39,352
Total
comprehensive			467			5,490	5,957
income
Dividend						-7,531	-7,531
distribution
As of 30th September	8,368	1,058	1,016	418	14,648	12,270	37,778
2015

CENIT Aktiengesellschaft

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

				Reconciliatio
		EIM	PLM	n	Group
in EUR k
External revenue	Q1-Q3 2015	17,462	71,962	0	89,424
	Q1-Q3 2014	19,761	71,603	0	91,364
EBIT	Q1-Q3 2015	831	6,802	0	7,633
	Q1-Q3 2014	990	5,729	0	6,719
Share of profit of	Q1-Q3 2015	0	0	0	0
joint ventures	Q1-Q3 2014	0	0	0	0
Other interest result and	Q1-Q3 2015	0	0	28	28
financial result	Q1-Q3 2014	0	0	119	119
Income taxes	Q1-Q3 2015	0	0	2,171	2,171
	Q1-Q3 2014	0	0	2,090	2,090
Net income of the Group	Q1-Q3 2015	831	6,802	-2,143	5,490
	Q1-Q3 2014	990	5,729	-1,971	4,748
Segment assets	Q1-Q3 2015	8,265	23,013	35,310	66,588
	Q1-Q3 2014	10,612	25,806	30,304	66,722
Investment in a joint venture	Q1-Q3 2015	0	54	0	54
	Q1-Q3 2014	0	54	0	54
Segment liabilities	Q1-Q3 2015	8,634	18,955	1,275	28,864
	Q1-Q3 2014	8,567	17,909	2,238	28,714
Investments in property, plant and Q1-Q3 2015		275	1,102	0	1,378
equipment and intangible assets	Q1-Q3 2014	216	1,233	0	1,449
Amortization and depreciation	Q1-Q3 2015	419	1,151	0	1,570
	Q1-Q3 2014	476	1,329	0	1,805

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-Q3 2015	67,371	9,003	10,662	1,241	344	803	0		0 89,424
	Q1-Q3 2014	73,935	8,386	7,644	626	286	487	0		0 91,364
Segment assets	Q1-Q3 2015	27,919	2,969	4,168	409	176	269	35,314		-4,636 66,588
	Q1-Q3 2014	31,075	4,253	3,411	239	2,084	392	30,287		-5,018 66,722
Investment in a joint venture	Q1-Q3 2015	54	0	0	0	0	0	0	0	54
	Q1-Q3 2014	54	0	0	0	0	0	0	0	54
Investments in property, plant and Q1-Q3 2015		1,195	4	65	18	96	0	0	0	1,378
equipment and intangible assets	Q1-Q3 2014	1,337	25	39	32	12	3	0	0	1,449

DIRECTORS' HOLDING:

Number of shares as at September 30th, 2015

Total number of shares	:	8,367,758
Management Board:		Supervisory Board:
Kurt Bengel:	6,000	Andreas Schmidt:	116,792
Matthias Schmidt:	1,670	Hubert Leypoldt:	1,600
		Andreas Karrer:	1,000

Financial Calendar:

November 17th, 2015 Small-Cap-Forum, Stuttgart November 23rd-25th, 2015 German Equity Forum, Frankfurt