CENIT AG

Interim / Quarterly Report • Nov 11, 2014

CENIT Aktiengesellschaft, Stuttgart AT A GLANCE
At a glance – January 1 until September, 30, 2014
in EUR k	September 30, 2014	September 30, 2013
Sales	91,364	89,206
Gross profits	55,520	54,538
EBITDA	8,524	7,392
Operating returns (EBIT)	6,719	5,664
EBT	6,838	5,726
Netincome of the group	4,748	4,035
Earnings per share (basic) in EUR	0.57	0.48
Earnings per share (diluted) in EUR	0.57	0.48
Number of employees at end of period	657	673
EBIT-Margin	7.4%	6.3%
Profit-Margin	5.2%	4.5%
in EUR k	September 30, 2014	December 31, 2013
Equity in ratio	57.0%	59.5%
Equity	38,062	35,930
Liabilities	28,714	24,429
Balance sheet total	66,776	60,359

DEVELOPMENT OF RESULTS

In the first nine months of 2014, CENIT AG was able to increase sales over the same period last year by 2.4%. The PLM segment grew by about 5% on-year, while the EIM segment reports a sales decline. The result after nine months has increased significantly compared to the previous year. Also encouraging is the increase in sales of third-party software, which grew by 10.4% to EUR k 41,360.

OVERVIEW OF 9 MONTHS FIGURES

During the first 9 months, CENIT group generated sales of EUR k 91,364 (prior year: EUR k 89,206/2.4%). EBITDA amounted to EUR k 8,524 (prior year: EUR k 7,392/15.3%) at EBIT of EUR k 6,719 (prior year: EUR k 5,664/18.6%). Results per share were EUR 0.57 (prior year: EUR 0.48).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved earnings of EUR k 71,603 (prior year: EUR k 68,033/5.2%). The EIM segment attained a sales total of EUR k 19,761 against EUR k 21,173 during the same period of 2013 (-6.7%). Sales of third-party software totaled EUR k 41,360 (prior year: EUR k 37,447/10.4%), while sales of CENIT's proprietary software declined from EUR k 10,007 to EUR k 9,220/-7.9%. Sales in the service and consulting segment amounted to EUR k 40,422 (prior year: EUR k 41,580/-2.8%). Other sales totaled EUR k 362 (prior year: EUR k 173/>100.0%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 10,543 (prior year: EUR k 11,231).

INVESTMENTS

Investments expenditures in the first 9 months 2014 amounted to EUR k 1,449 (prior year: EUR k 953).

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 16 May 2014, the Managing Board and the Supervisory Board of CENIT proposed the payment of a dividend of EUR 0.35 for the 2013 business year per share. The General Meeting approved this proposal. A total amount of approx. EUR k 2,929 was paid out to the CENIT AG shareholders.

ORDERS SITUATION

The group-wide order intake totaled EUR k 90,261 (prior year: EUR k 79,258/13.9%). Orders in hand as at 30 September 2014 amounted to EUR k 34,458 (prior year: EUR k 33,660/2.4%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits totaled EUR k 26,479 (31 Dec. 2013: EUR k 26,632). The enterprise is free of debt.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is EUR k 66,776. Trade receivables totaled EUR k 20,909. On the balance-sheet date, equity capital amounted to approx. EUR k 38,062 (31 Dec. 2013: EUR k 35,930) at an equity ratio of 57.0% (31 Dec. 2013: 59.5%). Operative cash flow totaled EUR k 4,598 (prior year: EUR k 8,949).

EMPLOYEES

On 30 September 2014, CENIT employed 657 staff group-wide (prior year: 673).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

CENIT still adheres to its annual forecast for the fiscal year 2014 and expects an increase in sales of around 5% and a stable EBIT. The PLM reporting segment is highly dependent on developments in the automotive, aerospace and mechanical engineering industries. Due to the ongoing financial crisis, the EIM segment still faces a difficult market environment.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited) For the period from January 1 to September 30, 2014
in EUR k	September 30, 2014	December 31, 2013
ASSETS
NON-CURRENT ASSETS
Intangible assets	4,367	3,619
Property, plant and equipment	2,625	2,567
Investment in associates	54	54
Income tax receivable	166	250
Other longterm receivables	157	157
Other financial assets measured and recognized at fair value through profit or loss	2,000	2,000
Deferred tax assets	117	89
NON-CURRENT ASSETS	9,486	8,736
CURRENT ASSETS
Inventories	75	4
Trade receivables	20,909	14,811
Receivables from associates	3,103	3,455
Current income tax assets	1,525	745
Other receivables	142	138
Cash and cash equivalents	26,479	26,632
Prepaid expenses	5,057	5,838
CURRENT ASSETS	57,290	51,623
TOTAL ASSETS	66,776	60,359

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2014
in EUR k	September 30, 2014	December 31, 2013
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	409	97
Statutory earnings reserve	418	418
Other earnings reserves	15,607	15,607
Unappropriated retained earnings	12,201	10,382
TOTAL EQUITY	38,062	35,930
NON-CURRENT LIABILITIES Other liabilities Deferred tax liabilities	1,334 1,149	1,417 842
NON-CURRENT LIABILITIES	2,483	2,259
CURRENT LIABILITIES
Trade liabilities	3,205	4,028
Liabilities due to associates	27	37
Other liabilities	13,344	11,430
Current income tax liabilities Other provisions	1,087 406	621 113
Deferred income	8,162	5,941
CURRENT LIABILITIES	26,231	22,170
TOTAL EQUITY AND LIABILITIES	66,776	60,359

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2014

in EUR k		1st Jan – 30th Sept. 2014	1st Jan – 30th Sept. 2013
1. REVENUE		91,364	89,206
2. Increase/decrease in work of process		0	0
Total operating performance		91,364	89,206
3. Other operating income		545	367
Operating performance		91,909	89,573
4. Cost of materials	36,389		35,035
5. Personnel expenses	36,453		35,915
6. Amortization and depreciation of intangible assets and property, plant
and equipment	1,805		1,728
7. Other operating expenses	10,543		11,231
		85,190	83,909
OPERATING RESULT		6,719	5,664
8. Other interest and similar income	131		72
9. Other interest and similar expenses	12		10
		119	62
RESULT FROM ORDINARY ACTIVITIES		6,838	5,726
10. Income taxes		2,090	1,691
NET INCOME OF THE GROUP FOR THE YEAR		4,748	4,035
thereof attributable to the shareholders of CENIT AG		4,748	4,035
Earnings per share in EUR
Basic		0.57	0.48
diluted		0.57	0.48

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited) for the period from April 1 to September 30, 2014

in EUR k	3rd Quarter 2014	3rd Quarter 2013
1. REVENUE		31,664	28,817
2. Increase/decrease in work of process		0	-1
Total operating performance		31,664	28,816
3. Other operating income		119	62
Operating performance		31,784	28,877
4. Cost of materials	13,223		10,929
5. Personnel expenses	11,864		11,399
6. Amortization and depreciation of
intangible assets and property, plant
and equipment	589		573 3,957
7. Other operating expenses	3,653
		29,329	26,858
OPERATING RESULT		2,455	2,019
8. Other interest and similar income	43		27
9. Other interest and similar expenses	4		4
		39	23
RESULT FROM ORDINARY ACTIVITIES
		2,494	2,043
10. Income taxes		791	637
NET INCOME OF THE GROUP FOR THE YEAR		1,702	1,405
thereof attributable to the shareholders of
CENIT AG		1,702	1,405
Earnings per share in EUR
Basic		0.20	0.17
diluted		0.20	0.17

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS) (unaudited) for the period from January 1 to September 30, 2014

	Sept. 30,	Sept. 30,
in EUR k	2014	2013
Cash flow from operating activities
Earnings before tax and net interest	6,719	5,664
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,805	1,728
Gains (-) and losses (+) on disposals of non-current assets	1	6
Result from associates	0	0
Other non-cash income and expenses	-127	40
Increase/decrease in other non-current assets and liabilities and provisions	-93	-49
Interest paid	-12	-10
Interest received	131	72
Income tax paid	-2,327	-1,703
Net operating income before changes in net working capital	6,097	5,748
Increase/decrease in trade receivables and other current non-cash assets	-4,563	3,025
Increase/decrease in inventories	-70	-49
Increase/decrease in current liabilities and provisions	3,134	225
Net cash flows from operating activities	4,598	8,949
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	-1,449	-953
Purchase of shares in fully consolidated entities (net cash outflow)	-686	0
Income from the sale of property, plant and equipment	9	7
Net cash paid for investing activities	-2,126	-946
Cash flow from financing activities
Dividends paid to shareholders	-2,929	-4,602
Net cash paid for financing activities	-2,929	-4,602
Net increase/decrease in cash and cash equivalents	-457	3,401
Change in cash and cash equivalents due to foreign exchange differences	304	-97
Cash and cash equivalents at the beginning of the reporting period	26,632	23,779
Cash and cash equivalents at the end of the reporting period	26,479	27,083

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)
In EUR k		1. Jan. 2014 - 30. Sep. 2014	1. Jan. 2013 - 31. Dec. 2013
Net income for the year		4,748	5,879
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	312		-165
Items that will not be reclassified to the income statement in the future
Actuarial gains/losses from defined benefit obligations and similar obligations	0		218
Deferred taxes recognised on other comprehensive income	0		-48
Other comprehensive income after tax		312	5
Total comprehensive income		5,060	5,884
Thereof attributable to the shareholders of CENIT AG		5,060	5,884

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited) As of 30 September 2014

	Subscribed	Capital	Currency		Revenue reserves	Retained	Total
in EUR k	capital	reserves	translation	Legal	Other	earnings
			reserve	reserve	reserves
As of 1st January 2013	8,368	1,058	262	418	13,537	11,005	34,648
Total comprehensive income			-165		170	5,879	5,884
Allocation to other
revenue reserves					1,900	-1,900	0
Dividend distribution						-4,602	-4,602
As of 31st December 2013	8,368	1,058	97	418	15,607	10,382	35,930
Total comprehensive income			312			4,748	5,060
Dividend distribution						-2,929	-2,929
As of 30th September 2014	8,368	1,058	409	418	15,607	12,201	38,062

CENIT Aktiengesellschaft

Segment Reporting by Business Unit (in accordance with IFRSs) unaudited for the period from January 1 to Sept 30, 2014

EIM PLM Reconciliation Group in EUR k External revenue Q1-Q3 2014 19,761 71,603 0 91,364 Q1-Q3 2013 21,173 68,033 0 89,206 EBIT Q1-Q3 2014 990 5,729 0 6,719 Q1-Q3 2013 363 5,301 0 5,664 Share of profit of Q1-Q3 2014 0 0 0 0 an associate Q1-Q3 2013 0 0 0 0 Other interest result and Q1-Q3 2014 0 0 119 119 financial result Q1-Q3 2013 0 0 63 63 Income taxes Q1-Q3 2014 0 0 2,090 2,090 Q1-Q3 2013 0 0 1,691 1,691 Net income of the Group Q1-Q3 2014 990 5,729 -1,971 4,748 Q1-Q3 2013 363 5,301 -1,629 4,035 Segment assets Q1-Q3 2014 10,612 25,806 30,304 66,722 Q1-Q3 2013 8,515 19,872 29,590 57,977 Investment in an associate Q1-Q3 2014 0 54 0 54 Q1-Q3 2013 0 54 0 54 Segment liabilities Q1-Q3 2014 8,567 17,909 2,238 28,714 Q1-Q3 2013 6,270 15,658 2,119 24,047 Investments in property, plant and Q1-Q3 2014 216 1,233 0 1,449 equipment and intangible assets Q1-Q3 2013 312 641 0 953 Amortization and depreciation Q1-Q3 2014 476 1,329 0 1,805 Q1-Q3 2013 635 1,272 0 1,907

EIM = Enterprise Information Management; PLM = Product Lifecycle Management

CENIT Aktiengesellschaft

Group Segment Report by Region (in accordance with IFRSs) for the period from January 1 to Sept. 30, 2014 unaudited

in EUR k		Germany	Switzerland	North America	Romania	France	Japan	Reconciliation	Consolidation	Group
External revenue	Q1-Q3 2014	73,935	8,386	7,644	626	286	487	0	0	91,364
	Q1-Q3 2013	74,296	7,109	6,655	680	0	466	0	0	89,206
Segment assets	Q1-Q3 2014	31,075	4,253	3,411	239	2,084	392	30,287	-5,018	66,722
	Q1-Q3 2013	26,614	1,180	2,799	253	31	164	29,574	-2,638	57,977
Investment in an associate	Q1-Q3 2014	54	0	0	0	0	0	0	0	54
	Q1-Q3 2013	54	0	0	0	0	0	0	0	54
Investments in property, plant and	Q1-Q3 2014	1,337	25	39	32	12	3	0	0	1,449
equipment and intangible assets	Q1-Q3 2013	892	9	6	29	15	2	0	0	953

DIRECTORS' HOLDING:

Number of shares as at September 30th, 2014

Total number of shares	:	8,367,758
Management Board:		Supervisory Board:
Kurt Bengel:	6,000	Andreas Schmidt:	191,792
Matthias Schmidt:	1,670	Hubert Leypoldt:	1,600
		Andreas Karrer:	1,000

Financial Calendar:

November 24th-26th, 2014 German Equity Forum, Frankfurt