CENIT AG

Interim / Quarterly Report • Aug 12, 2014

CENIT Aktiengesellschaft, Stuttgart AT A GLANCE
At a glance – January 1 until June, 30, 2014
in EUR k	June 30, 2014	June 30, 2013
Sales	59,700	60,389
Gross profits	36,960	36,590
EBITDA	5,481	4,800
Operating returns (EBIT)	4,264	3,645
EBT	4,345	3,683
Netincome of the group	3,046	2,630
Earnings per share (basic) in EUR	0.36	0.31
Earnings per share (diluted) in EUR	0.36	0.31
Number of employees at end of period	671	673
EBIT-Margin	7.1%	6.0%
Profit-Margin	5.1%	4.4%
in EUR k	June 30, 2014	December 31, 2013
Equity in ratio	54.7%	59.5%
Equity	36,094	35,930
Liabilities	29,897	24,429
Balance sheet total	65,991	60,359

RESPONSIBILITY STATEMENT FOR THE 2nd QUARTER 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 2014

DEVELOPMENT OF RESULTS

In the first six months of 2014, CENIT AG generated consistent sales compared to the same period last year. The PLM segment grew by around 3%, while the EIM segment faces a further decline due to the ongoing restructuring measures. EBIT however increased significantly by 17% to 4,264 EUR k. Sales of third-party software developed positively as well and could be increased by about 2%.

OVERVIEW OF 6 MONTHS FIGURES

During the first 6 months, CENIT group generated sales of EUR k 59,700 (prior year: EUR k 60,389/-1.1%). EBITDA amounted to EUR k 5,481 (prior year: EUR k 4,800/14.2%) at EBIT of EUR k 4,264 (prior year: EUR k 3,645/17.0%). Earnings per share were EUR 0.36 (prior year: EUR 0.31).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved in the first 6 months earnings of EUR k 47,377 (prior year: EUR k 45,914/3.2%). The EIM segment attained a sales total of EUR k 12,323 against EUR k 14,475 during the same period of 2013 (-14,9%). Sales of thirdparty software totaled EUR k 26,361 (prior year: EUR k 25,793/2.2%), while sales of CENIT's proprietary software declined from EUR k 6,540 to EUR k 6,141/-6.1%. Sales in the service and consulting segment amounted to EUR k 26,932 (prior year: EUR k 27,937/-3.6%). Other sales totaled EUR k 266 (prior year: EUR k 119/> 100.0%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 6,890 (prior year: EUR k 7,274).

INVESTMENTS

Investments expenditures in the first 6 months 2014 amounted to EUR k 1,194 (prior year: EUR k 666).

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 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. 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 58,821 (prior year: EUR k 56,208/-4.9%). Orders in hand as at 30 June 2014 amounted to EUR k 33,022 (prior year: EUR k 36,129/-8.6%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits totaled EUR k 30,968 (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 65,991. Trade receivables totaled EUR k 15,260. On the balance-sheet date, equity capital amounted to approx. EUR k 36,094 (31 Dec. 2013: EUR k 35,930) at an equity ratio of 54.7% (31 Dec. 2013: 59.5%). Operative cash flow totaled EUR k 9,098 (prior year: EUR k 11,372).

EMPLOYEES

On 30 June 2014, CENIT employed 671 staff group-wide (prior year: 673).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

CENIT is maintaining its forecast and expects an increase in sales and EBIT of approximately 5%. In order to achieve this goal this years' focus is on the acquisition of new customers, the software development in particular and the growth in the market segments that are relevant for CENIT.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited) For the period from January 1 to June 30, 2014
in EUR k	June 30, 2014	December 31, 2013
ASSETS
NON-CURRENT ASSETS
Intangible assets	4,821	3,619
Property, plant and equipment	2,489	2,567
Investment in associates	54	54
Income tax receivable	257	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	122	89
NON-CURRENT ASSETS	9,899	8,736
CURRENT ASSETS Inventories	15	4
Trade receivables	15,113	14,811
Receivables from associates	3,047	3,455
Current income tax assets	1,151	745
Other receivables	175	138
Cash and cash equivalents	30,968	26,632
Prepaid expenses	5,623	5,838
CURRENT ASSETS	56,092	51,623
TOTAL ASSETS	65,991	60,359

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited) for the period from January 1 to June 30, 2014
in EUR k	June 30, 2014	December 31,2013
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	143	97
Statutory earnings reserve	418	418
Other earnings reserves	15,607	15,607
Unappropriated retained earnings	10,499	10,382
TOTAL EQUITY	36,094	35,930
NON-CURRENT LIABILITIES Other liabilities Deferred tax liabilities	1,329 1,216	1,417 842
NON-CURRENT LIABILITIES	2,545	2,259
CURRENT LIABILITIES
Trade liabilities	4,000	4,028
Liabilities due to associates	43	37
Other liabilities	11,186	11,430
Current income tax liabilities	812	621
Other provisions Deferred income	132 11,179	113 5,941
CURRENT LIABILITIES	27,352	22,170
TOTAL EQUITY AND LIABILITIES	65,991	60,359

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

in EUR k		1st Jan – 30th June 2014	1st Jan – 30th June 2013
1. REVENUE		59,700	60,389
2. Increase/decrease in work of process		0	2
Total operating performance		59,700	60,391
3. Other operating income		426	305
Operating performance		60,126	60,696
4. Cost of materials	23,166		24,106
5. Personnel expenses	24,589		24,516
6. Amortization and depreciation of
intangible assets and property, plant
and equipment	1,216		1,155 7,274
7. Other operating expenses	6,890
		55,861	57,051
OPERATING RESULT		4,264	3,645
8. Other interest and similar income	88		45
9. Other interest and similar expenses	8		6
		80	39
RESULT FROM ORDINARY ACTIVITIES		4,345	3,683
10. Income taxes		1,298	1,054
NET INCOME OF THE GROUP FOR THE YEAR		3,046	2,630
thereof attributable to the shareholders of CENIT AG		3,046	2,630
Earnings per share in EUR Basic		0.36	0.31
diluted		0.36	0.31

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

in EUR k	2nd Quarter 2014	2nd Quarter 2013
11. REVENUE		29,907	28,574
12. Increase/decrease in work of process		0	2
Total operating performance		29,907	28,575
13. Other operating income		96	125
Operating performance		30,003	28,700
14. Cost of materials	11,825		11,348
15. Personnel expenses	11,998		11,467
16. Amortization and depreciation of intangible assets and property, plant and equipment	620		568
17. Other operating expenses	3,467		3,459
		27,909	26,842
OPERATING RESULT		2,094	1,859
18. Other interest and similar income	54		22
19. Other interest and similar expenses	4		3
		50	19
RESULT FROM ORDINARY ACTIVITIES		2,144	1,877
20. Income taxes		670	505
NET INCOME OF THE GROUP FOR THE YEAR		1,474	1,373
thereof attributable to the shareholders of CENIT AG		1,474	1,373
Earnings per share in EUR
Basic		0.18	0.16
diluted		0.18	0.16

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

in EUR k	June 30,	June 30,
	2014	2013
Cash flow from operating activities
Earnings before tax and net interest	4,264	3,645
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,216	1,155
Gains (-) and losses (+) on disposals of non-current assets	5	30
Other non-cash income and expenses	-127	26
Increase/decrease in other non-current assets and liabilities and provisions	-94	29
Interest paid	-8	-6
Interest received	88	45
Income tax paid	-1,464	-552
Net operating income before changes in net working capital	3,880	4,372
Increase/decrease in trade receivables and other current non-cash assets	434	2,736
Increase/decrease in inventories	-11	-23
Increase/decrease in current liabilities and provisions	4,795	4,287
Net cash flows from operating activities	9,098	11,372
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	-1,194	-666
Purchase of shares in fully consolidated entities (net cash outflow)	-686	0
Income from the sale of property, plant and equipment	3	0
Net cash paid for investing activities	-1,877	-666
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	4,292	6,104
Change in cash and cash equivalents due to foreign exchange differences	44	-45
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	30,968	29,838

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)
In EUR k		1. Jan. 2014 - 30. Jun. 2014	1. Jan. 2013 - 31. Dec. 2013
Net income for the year		3,046	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	46		-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		46	5
Total comprehensive income		3,092	5,884
Thereof attributable to the shareholders of CENIT AG		3,092	5,884

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

in EUR k	Subscribed capital	Capital reserves	Currency translation reserve	Legal reserve	Revenue reserves Other reserves	Retained earnings	Total
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			46			3,046	3,092
Dividend distribution						-2,929	-2,929
As of 30 June 2014	8,368	1,058	143	418	15,607	10,499	36,094

CENIT Aktiengesellschaft

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

		EIM	PLM	Reconciliation	Group
in EUR k
External revenue	Q1-Q2 2014	12,323	47,377	0	59,700
	Q1-Q2 2013	14,475	45,914	0	60,389
EBIT	Q1-Q2 2014	323	3,942	0	4,264
	Q1-Q2 2013	159	3,486	0	3,645
Share of profit of	Q1-Q2 2014	0	0	0	0
an associate	Q1-Q2 2013	0	0	0	0
Other interest result and	Q1-Q2 2014	0	0	80	80
financial result	Q1-Q2 2013	0	0	39	39
Income taxes	Q1-Q2 2014	0	0	1,298	1,298
	Q1-Q2 2013	0	0	1,054	1,054
Net income of the Group	Q1-Q2 2014	323	3,942	-1,218	3,046
	Q1-Q2 2013	159	3,486	-1,015	2,630
Segment assets	Q1-Q2 2014	9,037	22,385	34,515	65,937
	Q1-Q2 2013	9,250	19,769	32,437	61,456
Investment in an associate	Q1-Q2 2014	0	54	0	54
	Q1-Q2 2013	0	54	0	54
Segment liabilities	Q1-Q2 2014	10,452	17,415	2,031	29,897
	Q1-Q2 2013	8,295	17,852	2,743	28,890
Investments in property, plant and Q1-Q2 2014		164	1,029	0	1,194
equipment and intangible assets	Q1-Q2 2013	200	466	0	666
Amortization and depreciation	Q1-Q2 2014	328	889	0	1,216
	Q1-Q2 2013	360	795	0	1,155

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 June 30, 2014 unaudited

in EUR k		Germany	Switzerland	North America	Romania	France	Japan	Reconciliation	Consolidation	Group
External revenue	Q1-Q2 2014	49,245	4,374	5,199	400	194	287	0	0	59,700
	Q1-Q2 2013	50,559	4,753	4,294	455	0	328	0	0	60,389
Segment assets	Q1-Q2 2014	27,730	2,283	3,166	212	2,192	270	34,498	-4,414	65,937
	Q1-Q2 2013	25,833	2,955	2,554	284	41	250	32,437	-2,898	61,456
Investment in an associate	Q1-Q2 2014	54	0	0	0	0	0	0	0	54
	Q1-Q2 2013	54	0	0	0	0	0	0	0	54
Investments in property, plant and	Q1-Q2 2014	1,130	0	22	25	12	3	0	0	1,194
equipment and intangible assets	Q1-Q2 2013	624	8	4	16	14	0	0	0	666

DIRECTORS' HOLDING:

Number of shares as at June 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:

September 10th, 2014	Capital Market Conference, Zürich
November 11th, 2014	9 Months Report
	November 24th-26th, 2014 German Equity Forum, Frankfurt