CENIT AG

Earnings Release • Nov 8, 2013

CENIT Aktiengesellschaft, Stuttgart AT A GLANCE
At a glance – January 1 until September, 30, 2013
in EUR k	September 30, 2013	September 30, 2012
Sales	89,206	86,233
Gross profits	54,538	53,871
EBITDA	7,392	7,535
Operating returns (EBIT)	5,664	5,628
EBT	5,726	5,737
Netincome of the group	4,035	3,948
Earnings per share (basic) in EUR	0.48	0.47
Earnings per share (diluted) in EUR	0.48	0.47
Number of employees at end of period	673	674
EBIT-Margin	6.3%	6.5%
Profit-Margin	4.5%	4.6%
in EUR k	September 30, 2013	September 30, 2012
Equity in ratio	58.6%	58.7%
Equity	33,984	34,648
Liabilities	24,047	24,352
Balance sheet total	58,031	59,000

DEVELOPMENT OF RESULTS

In the first nine months of 2013, CENIT AG was able to increase sales over the same period last year by 3.4%. The PLM segment grew by about 5% on-year, while the EIM segment shows a slight sales decline. The result after nine months is almost unchanged compared to the previous year. Sales of proprietary software are still developing well with an increase by 27% to EUR k 10,007.

OVERVIEW OF 9 MONTHS FIGURES

During the first 9 months, CENIT group generated sales of EUR k 89,206 (prior year: EUR k 86,233/3.4%). EBITDA amounted to EUR k 7,392 (prior year: EUR k 7,535/-1.9%) at EBIT of EUR k 5,664 (prior year: EUR k 5,628/0.6%). Results per share were EUR 0.48 (prior year: EUR 0.47).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved earnings of EUR k 68,033 (prior year: EUR k 64,733/5.1%). The EIM segment attained a sales total of EUR k 21,173 against EUR k 21,500 during the same period of 2012 (-1.5%). Sales of third-party software totaled EUR k 37,447 (prior year: EUR k 35,843/4.5%), while sales of CENIT's proprietary software grew from EUR k 7,880 to EUR k 10,007/27.0%. Sales in the service and consulting segment amounted to EUR k 41,580 (prior year: EUR k 42,131/-1.3%). Other sales totaled EUR k 173 (prior year: EUR k 379/-54.5%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 11.231 (prior year: EUR k 11.265).

INVESTMENTS

Investments expenditures in the first 9 months 2013 amounted to EUR k 953 (prior year: EUR k 2,228).

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 31 May 2013, the Managing Board and the Supervisory Board of CENIT proposed the payment of a dividend of EUR 0.30 for the 2012 business year as well as a special dividend in the amount of EUR 0.25 per share. The General Meeting approved this proposal. A total amount of approx. EUR k 4,602 was paid out to the CENIT AG shareholders.

ORDERS SITUATION

The group-wide order intake totaled EUR k 79.258 (prior year: EUR k 87.224/-9.1%). Orders in hand as at 30 September 2013 amounted to EUR k 33.660 (prior year: EUR k 38.659/-12,9%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits totaled EUR k 27.083 (31 Dec. 2012: EUR k 23.779). The enterprise is free of debt.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is EUR k 58.031. Trade receivables totaled EUR k 13.164. On the balance-sheet date, equity capital amounted to approx. EUR k 33.984 (31 Dec. 2012: EUR k 34.648) at an equity ratio of 58,6% (31 Dec. 2012: 58,7%). Operative cash flow totaled EUR k 8,949 (prior year: EUR k 9,070).

EMPLOYEES

On 30 September 2013, CENIT employed 673 staff group-wide (prior year: 674).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

CENIT still adheres to its annual forecast for the fiscal year 2013 and expects an increase in sales of around 3% 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, 2013
in EUR k	September 30, 2013	September 30, 2012
ASSETS
NON-CURRENT ASSETS
Intangible assets	3,617	4,078
Property, plant and equipment	2,809	3,167
Investment in associates	54	54
Income tax receivable	246	328
Other financial assets measured and recognized at fair value through profit or loss	2,000	2,000
Deferred tax assets	51	54
NON-CURRENT ASSETS	8,777	9,681
CURRENT ASSETS
Inventories	136	88
Trade receivables	13,164	16,398
Receivables from associates	2,962	3,502
Current income tax assets	190	454
Other receivables	212	162
Cash and cash equivalents	27,083	23,779
Prepaid expenses	5,507	4,936
CURRENT ASSETS	49,254	49,319
TOTAL ASSETS	58,031	59,000

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2013
in EUR k	September 30, 2013	September 30, 2012
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	164	262
Statutory earnings reserve	418	418
Other earnings reserves	13,537	13,537
Unappropriated retained earnings	10,438	11,005
TOTAL EQUITY	33,984	34,648
NON-CURRENT LIABILITIES Other liabilities Deferred tax liabilities	1,340 1,058	1,404 939
NON-CURRENT LIABILITIES	2,398	2,343
CURRENT LIABILITIES Trade liabilities	1,647	4,156
Liabilities due to associates	3	20
Other liabilities	11,519	10,237
Current income tax liabilities	1,060	1,540
Other provisions	458	166
Deferred income	6,962	5,890
CURRENT LIABILITIES	21,649	22,009
TOTAL EQUITY AND LIABILITIES	58,031	59,000

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2013

in EUR k		1st Jan – 30th Sept. 2013	1st Jan – 30th Sept. 2012
1. REVENUE		89,206	86,233
2. Increase/decrease in work of process		0	-5
Total operating performance		89,206	86,228
3. Other operating income		367	603
Operating performance		89,573	86,831
4. Cost of materials	35,035		32,960
5. Personnel expenses	35,915		35,071
6. Amortization and depreciation of
intangible assets and property, plant
and equipment	1,728		1,907 11,265
7. Other operating expenses	11,231
		83,909	81,203
OPERATING RESULT		5,664	5,628
8. Other interest and similar income	72		123
9. Other interest and similar expenses	10		14
		62	109
RESULT FROM ORDINARY ACTIVITIES
		5,726	5,737
10. Income taxes		1,691	1,789
NET INCOME OF THE GROUP FOR THE YEAR		4,035	3,948
thereof attributable to the shareholders of
CENIT AG		4,035	3,948
Earnings per share in EUR
Basic		0.48	0.47
diluted		0.48	0.47

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited) for the period from April 1 to September 30, 2013

in EUR k	3rd Quarter 2013	3rd Quarter 2012
11. REVENUE		28,817	28,453
12. Increase/decrease in work of process		-1	-1
Total operating performance		28,816	28,452
13. Other operating income		62	209
Operating performance		28,877	28,661
14. Cost of materials	10,929		11,106
15. Personnel expenses	11,399		11,254
16. Amortization and depreciation of intangible assets and property, plant and equipment	573		557
17. Other operating expenses	3,957		3,818
		26,858	26,735
OPERATING RESULT		2,019	1,926
18. Other interest and similar income	27		40
19. Other interest and similar expenses	4		2
		23	38
RESULT FROM ORDINARY ACTIVITIES		2,043	1,964
20. Income taxes		637	608
NET INCOME OF THE GROUP FOR THE YEAR		1,405	1,356
thereof attributable to the shareholders of CENIT AG		1,405	1,356
Earnings per share in EUR
Basic		0.17	0.16
diluted		0.17	0.16

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS) (unaudited) for the period from January 1 to September 30, 2013

in EUR k	Sept. 30, 2013	Sept. 30, 2012
Cash flow from operating activities
Earnings before tax and net interest	5,664	5,628
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	1,728	1,907
Gains (-) and losses (+) on disposals of non-current assets	6	51
Result from associates		1
Other non-cash income and expenses	40	-24
Increase/decrease in other non-current assets and liabilities and provisions	-49	0
Interest paid	-10	-14
Interest received	72	123
Income tax paid	-1,703	-1,940
Net operating income before changes in net working capital	5,748	5,732
Increase/decrease in trade receivables and other current non-cash assets	3,025	-1,413
Increase/decrease in inventories	-49	154
Increase/decrease in current liabilities and provisions	225	1,771
Net cash flows from operating activities	8,949	9,070
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	-953	-2,228
Income from the sale of property, plant and equipment	7	1
Net cash paid for investing activities	-946	-2,227
Cash flow from financing activities
Dividends paid to shareholders	-4,602	-2,510
Net cash paid for financing activities	-4,602	-2,510
Net increase/decrease in cash and cash equivalents	3,401	4,332
Change in cash and cash equivalents due to foreign exchange differences	-97	0
Cash and cash equivalents at the beginning of the reporting period	23,779	18,135
Cash and cash equivalents at the end of the reporting period	27,083	22,467

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)
In EUR k		1st Jan – 30th Sept. 2013	1st Jan – 30th Sept. 2012
Net income for the year		4,035	5,419
Other comprehensive income
Currency translation reserve of foreign subsidiaries	-98		-59
Actuarial gains/losses from defined benefit obligations and similar obligations	0		-516
Deferred taxes recognised on other comprehensive income	0		108
Other comprehensive income after tax		-98	-467
Total comprehensive income		3,937	4,952
Thereof attributable to the shareholders of CENIT AG		3,937	4,952

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited) As of 30 September 2013

	Subscribed	Capital	Currency translation		Revenue reserves	Retained	Total
in EUR k	capital	reserves		Legal	Other	earnings
			reserve	reserve	reserves
As of 1st January 2012	8,368	1,058	321	418	12,245	9,796	32,206
Total comprehensive income			-59		-408	5,419	4,952
Allocation to other revenue reserves					1,700	-1,700	0
Dividend distribution						-2,510	-2,510
As of 31st December 2012	8,368	1,058	262	418	13,537	11,005	34,648
Total comprehensive income			-98			4,035	3,937
Dividend distribution						-4,602	-4,602
As of 30 September 2013	8,368	1,058	164	418	13,537	10,438	33,984

CENIT Aktiengesellschaft

Segment Reporting by Business Unit (in accordance with IFRSs) unaudited for the period from January 1 to Sept. 30, 2013

		EIM	PLM	Reconciliation	Group
in EUR k
External revenue	Q1-Q3 2013	21,173	68,033	0	89,206
	Q1-Q3 2012	21,500	64,733	0	86,233
EBIT	Q1-Q3 2013	363	5,301	0	5,664
	Q1-Q3 2012	362	5,266	0	5,628
Share of profit of	Q1-Q3 2013	0	0	0	0
an associate	Q1-Q3 2012	0	0	0	0
Other interest result and	Q1-Q3 2013	0	0	63	63
financial result	Q1-Q3 2012	0	0	109	109
Income taxes	Q1-Q3 2013	0	0	1,691	1,691
	Q1-Q3 2012	0	0	1,789	1,789
Net income of the Group	Q1-Q3 2013	363	5,301	-1,629	4,035
	Q1-Q3 2012	362	5,266	-1,680	3,948
Segment assets	Q1-Q3 2013	8,515	19,872	29,590	57,977
	Q1-Q3 2012	10,644	22,418	26,427	59,489
Investment in an associate	Q1-Q3 2013	0	54	0	54
	Q1-Q3 2012	0	53	0	53
Segment liabilities	Q1-Q3 2013	6,270	15,658	2,119	24,047
	Q1-Q3 2012	9,119	14,571	2,231	25,921
Investments in property, plant anQ1-Q3 2013		312	641	0	953
equipment and intangible assetsQ1-Q3 2012		729	1,499	0	2,228
Amortization and depreciation	Q1-Q3 2013	534	1,194	0	1,728
	Q1-Q3 2012	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, 2013 unaudited

in EUR k		Germany	Switzerland	North America	Romania	France	Japan	Reconciliation	Consolidation	Group
External revenue	Q1-Q3 2013	74,296	7,109	6,655	680	0	466	0	0	89,206
	Q1-Q3 2012	70,633	7,901	6,701	719	33	245	0	0	86,233
Segment assets	Q1-Q3 2013	26,614	1,180	2,799	253	31		164 29,574	-2,638	57,977
	Q1-Q3 2012	27,895	3,526	2,498	161	132		328 26,427	-1,478	59,489
Investment in an associate	Q1-Q3 2013	54	0	0	0	0	0	0	0	54
	Q1-Q3 2012	53	0	0	0	0	0	0	0	53
Investments in property, plant and Q1-Q3 2013		892	9	6	29	15	2	0	0	953
equipment and intangible assets	Q1-Q3 2012	2,130	6	38	40	14	0	0	0	2,228

DIRECTORS' HOLDING:

Number of shares as at September 30th, 2013

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

Financial Calendar:

November 11th-13th, 2013 German Equity Forum, Frankfurt December 4th-5th, 2013 Capital Market Conference, Munich