CENIT AG

Interim / Quarterly Report • Aug 2, 2024

HALF-YEAR FINANCIAL REPORT AS OF JUNE 30, 2024

CENIT GROUP - AT A GLANCE 1 JANUARY TO 30 JUNE 2024 (UNAUDITED)
in EUR k	Q2 2024	Q2 2023	Change in \%	H1 2024	H1 2023	Change in \%
Key data
Revenue	48,810	44,054	10.8	99,355	87,470	13.6
Third-party software	24,583	22,475	9.4	50,771	44,754	13.4
from licences	679	1,293	$-47.5$	2,817	2,471	14.0
from recurring sales*	23,903	21,182	12.8	47,954	42,284	13.4
Proprietary software	4,819	4,287	12.4	9,291	7,637	21.7
from licences	1,287	1,208	6.6	2,444	1,570	55.7
from recurring sales*	3,532	3,079	14.7	6,847	6,067	12.9
Consulting and services	19,354	17,262	12.1	39,210	35,008	12.0
Merchandise	54	30	80.0	83	71	16.9
EBITDA	2,651	4,173	$-36.5$	5,796	5,746	0.9
EBITDA adjusted**	3,229	3,437	$-6.1$	6,413	5,095	25.9
EBIT	768	2,613	$-70.6$	2,006	2,620	$-23.4$
as \% of sales	1.57	5.93	$-73.5$	2.02	3.00	$-32.6$
EBIT adjusted**	1,346	1,877	$-28.3$	2,623	1,969	33.2
Net income	198	1,864	$-89.4$	360	1,791	$-79.9$
per share in Cent (basic / undiluted after minority interests)	1.0	21.1	$-95.3$	1.3	18.5	$-93.0$
Cash flow data
Cash flow from current business activities	$-1,387$	1,610	$>100 / 0$	11,150	10,304	8.2
Cash flow from investment activity	$-795$	$-675$	$-17.8$	$-1,678$	$-2,864$	41.4
Cash flow from financing activity	$-2,868$	$-5,966$	51.9	$-5,225$	$-7,747$	32.6
Balance sheet ratios				$\begin{gathered} 30 / 06 / \ 2023 \end{gathered}$	$\begin{gathered} 31 / 12 / \ 2022 \end{gathered}$	Change in \%
Liquid assets				28,627	24,341	17.6
Net liquidity				$-18,015$	$-25,031$	28.0
Total assets				149,303	153,615	$-2.8$
Equity ratio in \%				30.0	29.3	2.3
Employees on reporting date				936	893	$>-100.0$
Key share ratios
Closing share price (Xetra) in EUR				11.30	12.25	$-7.8$
Market capitalization				94,556	102,505	$-7.8$

*Subscription and software maintenance contracts
** without one-time effects related to deconsolidation and acquisition costs

Interim Management Report

Report on assets and financial and earnings situation

Ongoing growth in all business fields continues to ensure a positive sales trend (vs previous year: +EUR 11,885 k, +13.6\%) in the first half of 2024

CENIT continued its growth path in the second quarter of 2024. Sales revenue increased by EUR 11,885 k to EUR 99,355 k (+13.6\%). The largest share of this development was attributable to sales revenue from third-party software, which increased by EUR 6,017 k to EUR 50,771 k. Revenue from proprietary software also recorded strong growth of $21.7 \%$, with the license business contributing in particular. A $12.0 \%$ increase in consulting and service business to EUR 39,210 k completes this positive sales trend.

Taking into account lower other operating income (previous year: EUR -888 k) and an overall increase in operating expenses (previous year: EUR $+1,393 \mathrm{k}$ ), the positive sales trend led to a $23.4 \%$ decline in consolidated EBIT to EUR 2,006 k.

Acquisition of CCE b:digital GmbH \& Co. KG, an expert in digital solutions and services for engineering and manufacturing.

As of January 3, 2024, CCE GmbH, a wholly owned subsidiary of CENIT AG, acquired 100\% of the limited partnership shares in CCE b:digital GmbH \& Co. KG was acquired. As of June 30, 2024, CCE contributed revenue of EUR 2,712 k and EBIT of EUR 31 k to the success of the CENIT Group.

Segments at a glance

The performance of both the PLM and the EIM segments in the first half of 2024 was as follows EIM increased external revenue by $+9.0 \%$ and segment EBIT by $42.5 \%$ to EUR 656 k compared to the same period of the previous year. The PLM segment was also able to increase its segment revenue by $+14.8 \%$, but at EUR 1,071 k, segment EBIT was EUR 893 k below the previous year's level. This decline was due on the one hand to the one-off effect of the deconsolidation of CENIT Japan in the previous year and on the other hand to acquisition costs for the purchase of further companies.

Continued very solid financial strength thanks to an operating cash flow of EUR 11,150 k and cash and cash equivalents of EUR 28,627 k.

The continued positive cash flow from operating activities (EUR 11,150 k; prior year: EUR 10,304 k) is mainly the result of a positive change in working capital (EUR 8,405 k). The dividend, which was EUR 3,849 k lower than in the prior year, strengthened CENIT's financial power and was the main reason for the EUR 2,522 k lower cash flow from financing activities. The cash flow from investing activities (EUR $-1,678 \mathrm{k}$ ) is equally attributable to the acquisition of shares in fully consolidated companies amounting to EUR -809 k and to investments in property, plant and equipment and intangible assets (EUR -889 k). As a result, cash and cash equivalents increased by EUR 4,286 k to EUR 28,627 k as of June 30, 2024 compared to December 31, 2023.Due to the dividend-related decrease in equity and the increase in contractual liabilities, the equity ratio decreased to $32.8 \%$. Net liquidity improved to EUR -10,799 k, mainly due to the decrease in lease liabilities (EUR $-1,608 \mathrm{k}$ ) and the repayment of the acquisition loan (EUR $-1,650 \mathrm{k}$ ).

A strong Group equity ratio of $30.0 \%$ and growing cash and cash equivalents (EUR $28,627 \mathrm{k}$ vs. December 31, 2023: +17.6\%) characterize the financial position of the CENIT Group.

Total assets decreased by EUR $-4,312 \mathrm{k}$ compared to December 31, 2023. On the assets side, this is mainly due to the decrease in trade receivables (EUR $-8,310 \mathrm{k}$ ). On the liabilities side, the decrease is mainly due to the repayment of non-current liabilities to banks (EUR $-1,973 \mathrm{k}$ ) and the lower trade

payables (EUR $-7,786 \mathrm{k}$ ). The effect on the liabilities side was partially offset by the higher current contract liabilities from software maintenance contracts during the year (EUR $+9,864 \mathrm{k}$ ).

Events after the end of the interim reporting period

Effective July 17, 2024, CENIT has acquired 60\% of the shares in US-based Analysis Prime LLC - one of the world's leading SAP Planning and Analytics partners. With this acquisition, CENIT is diversifying its SAP business and gaining extensive expertise in the area of SAP Analytics Cloud. Since its foundation in 2018, the 72 -strong Chicago (USA)-based expert company has specialized in four areas of expertise relating to the planning and analysis of business-critical company processes based on SAP architecture: these include SAP Analytics Cloud, SAP Profitability and Performance Management, SAP Datasphere and SAP Group Reporting. In addition to the fixed base purchase price, the purchase price also includes a variable component based on earnings in the financial years 2024 and 2025. At the time of reporting, a provisional base purchase price of USD 14,311 k was paid. The final base purchase price and the valuation of the variable components will be determined after submission of the company's interim financial statements, which are not yet available at the time of reporting. Therefore, the fair values of the identified assets and liabilities of Analysis Prime LLC at the acquisition date and the corresponding carrying amounts immediately prior to the acquisition date cannot be reliably determined either. CENIT expects the company to contribute USD 11,500 k to revenue in 2024 and USD 2,700 k, before amortization from the recognition of intangible assets in connection with the acquisition, to the Group's EBIT.

Employees

As of June 30, 2024, the CENIT Group had 936 employees (December 31, 2022: 893).

Report on principal transactions with related parties

There have been no material changes to the relevant information since the last consolidated financial statement for the period to December 31, 2023.

Report on opportunities and risks

For information on the principal opportunities and risks for the anticipated development of the CENIT Group, we refer to the relevant comments in the report on expected developments within the Group's management report for the period as of December 31, 2023.

Report on forecasts and other statements regarding anticipated development

Over the course of a year, business activity is subject to certain seasonal fluctuations. In the past, contributions to sales and earnings tended to be lowest in the first quarter and highest in the fourth quarter, primarily due to a traditionally strong year-end business for the software industry. Consequently, interim results have only limited value as indicators of results for the whole fiscal year.

For the current year, our outlook for the CENIT Group is to reach a revenue of around EUR 195,000202,000 k and earnings (EBIT) of around EUR 11,700-12,200 k. Given the current challenging geopolitical situation, these forecasts are based on the assumption that there will be no significant negative economic impact on our industry and our main customer segments. This forecast does not include any acquisition effects.

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IN ACCORDANCE WITH IFRS) (UNAUDITED)
in EUR k	Q2 2024	Q2 2023	H1 2024	H1 2023
REVENUE	48,810	44,054	99,355	87,470
Other operating income	309	1,117	559	1,447
OPERATING INCOME	49,119	45,171	99,914	88,917
Cost of materials	21,007	18,073	42,450	36,147
Personnel expenses	20,981	19,097	43,081	39,737
Amortisation of intangible assets and depreciation of property, plant and equipment	1,883	1,560	3,790	3,126
Other operating expenses	4,475	3,713	8,494	7,101
OPERATING EXPENSES	48,346	42,442	97,815	86,111
Impairments on receivables	$-5$	$-115$	$-93$	$-186$
NET OPERATING INCOME (EBIT)	768	2,613	2,006	2,620
Interest income	74	3	150	3
Interest expenses	698	285	1,325	535
NET PROFIT (LOSS) BEFORE TAXES (EBT)	144	2,331	831	2,088
Income taxes	$-54$	521	471	363
NET INCOME CONTINUED OPERATIONS	198	1,810	360	1,725
Net Income/Loss discontinued operations	0	54	0	66
NET INCOME	198	1,864	360	1,791
Amount attributable to CENIT AG shareholders	82	1,750	109	1,548
Amount attributable to non-controlling interests	116	114	251	243
Earnings per share in cent, basic and diluted	1.0	21.1	1.3	18.5
Items that, under certain circumstances, will be reclassified under the income statement in the future
Compensation from currency translation for foreign subsidiaries	36	26	15	$-26$
Reclassification of currency differences resulting from deconsolidation	0	27	0	27
Reclassifiable gains/losses from cash flow hedges (after taxes)	414	0	414	0
Other comprehensive income after taxes	450	53	429	1
Total comprehensive income	648	1,917	789	1,792
Amount attributable to CENIT AG shareholders	5532	1,803	538	1,549
Amount attributable to minority shareholders	116	114	251	243

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN ACCORDANCE WITH IFRS)
(UNAUDITED)
in EUR k	30/06/2024	$31 / 12 / 2023$
ASSETS
NON-CURRENT ASSETS
Intangible assets	48,254	47,605
Property, plant and equipment	12,445	12,988
Investments recognised to equity	58	58
Other financial assets	8,217	8,216
Deferred tax assets	756	788
NON-CURRENT ASSETS, total	69,730	69,655
CURRENT ASSETS
Inventories	51	70
Trade receivables	27,118	35,428
Receivables from investments recognised to equity	2,366	4,307
Contract assets	2,156	1,029
Current tax assets	4,070	3,563
Other receivables	401	1,433
Cash holdings	28,627	24,341
Other assets	14,784	13,789
CURRENT ASSETS, total	79,573	83,960
TOTAL ASSETS	149,303	153,615

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN ACCORDANCE WITH IFRS) (UNAUDITED)
in EUR k	30/06/2024	31/12/2023
EQUITY AND LIABILITIES
EQUITY
Subscribed capital	8,368	8,368
Capital reserves	1,058	1,058
Currency translation reserve	1,453	1,438
Legal reserve	418	418
Other reserves	13,350	12,936
Profit carried forward	17,782	13,621
Net income	109	4,496
Equity attributable to shareholders in the parent company	42,538	42,335
Non-controlling interests	2,194	2,668
EQUITY, total	44,732	45,003
NON-CURRENT LIABILITIES
Other liabilities	761	755
Pension liabilities	854	855
Liabilites to bank	35,433	37,406
Lease liability, non-current	6,848	7,455
Other financial liabilities	2,380	2,979
Deferred tax liabilities	3,184	3,264
NON-CURRENT LIABILITIES, total	49,460	52,714
CURRENT LIABILITIES
Liabilities to bank	3	3
Trade payables	5,415	13,201
Liabilities from investments recognised to equity	0	27
Other liabilities	13,289	15,787
Lease liability, current	3,503	3,654
Current income tax liabilities	1,100	1,183
Other provisions	46	152
Contract liabilities	31,755	21,891
CURRENT LIABILITIES, total	55,111	55,898
TOTAL EQUITY AND LIABILITIES	149,303	153,615

CENIT AKTIENGESELLSCHAFT, STUTTGART
CONSOLIDATED STATEMENT OF CASH FLOWS (IN ACCORDANCE WITH IFRS) (UNAUDITED)
in EUR k	H1 2024	H1 2023
Cash flow from operating activities
Net income	360	1,791
Depreciation of fixed assets	3,790	3,126
Loss on sale of equipment	$-19$	10
Interest income and expenses	1,175	532
Income from sale of fully consolidated companies	0	$-871$
Tax expenses	471	363
Other payments made or received attributable to investment activities	617	0
Increase in other non-current assets	180	1,147
Increase in other non-current liabilities and reserves	$-1,354$	$-25$
Change in working capital	8,405	5,940
Interest paid	$-1,119$	$-435$
Interest received	150	0
Income taxes paid	$-1,506$	$-1,274$
CASH FLOW FROM CURRENT BUSINESS ACTIVITIES	11,150	10,304
Payments for investments in property, plant and equipment and intangible assets	$-889$	$-1,053$
Payments received from sale of property, plant and equipment	20	0
Payments for purchase of shares in fully consolidated entities (net cash outflow)	$-809$	$-1,735$
Payments made or received from sale of fully consolidated companies (net inflow / outflow)	0	$-76$
CASH FLOW FROM INVESTMENT ACTIVITIES	$-1,678$	$-2,864$
Dividends to shareholders in the parent company	$-335$	$-4,184$
Dividends to minorities	$-725$	$-468$
Lease liabilities repaid	$-2,126$	$-1,913$
Bank liabilities repaid	$-2,039$	$-1,650$
CASH FLOW FROM FINANCING ACTIVITIES	$-5,225$	$-7,747$
CHANGES IN CASH AND CASH EQUIVALENTS	4,247	$-306$
Change in cash and cash equivalents due to foreign exchange differences	39	$-8$
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE REPORTING PERIOD	24,341	19,914
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD	28,627	19,600

CENIT AKTIENGESELLSCHAFT, STUTTGART STATEMENT OF CHANGES IN EQUITY (IN ACCORDANCE WITH IFRS) (UNAUDITED)
	Equity attributable to shareholders in the parent company
in EUR k	Subscribed capital	Capital reserves	Currency translation reserve	Revenue reserves		Profit carried forward	Net income	Non-controlling interests	Total
				Legal reserve	Other reserves
On 1/1/2023	8,368	1,058	1,397	418	13,787	11,522	6,283	1,950	44,783
Reclassification of Group net income from last year						6,283	$-6,283$
Total comprehensive income for the period			41		$-851$		4,496	493	4,179
Addition to basis of consolidation								693	693
Dividens paid to minority interests								$-468$	$-468$
Dividend distribution						$-4,184$			$-4,184$
On 31/12/2023	8,368	1,058	1,438	418	12,936	13,621	4,496	2,668	45,003
Reclassification of Group net income from last year						4,496	$-4,496$		0
Total comprehensive income for the period			15		414		109	251	789
Dividends paid to minorites								$-725$	$-725$
Dividend distribution						$-335$			$-335$
On 30/06/2024	8,368	1,058	1,453	418	13,350	17,782	109	2,194	44,732

Notes on the interim financial statement

Pursuant to section 315e of the German Commercial Code (HGB), this condensed consolidated interim financial statement for the listed company CENIT Aktiengesellschaft, Stuttgart, was prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as adopted by the EU, and interpretations thereof by the International Financial Reporting Interpretation Committee (IFRIC). In line with the provisions of IAS 34, we have chosen to make the scope of the information presented in this interim financial statement for the period to June 30, 2024 considerably narrower than that in the year-end consolidated financial statement.

The accounting and consolidation principles applied in this consolidated interim financial statement are based on those adopted in the consolidated financial statement for the 2023 fiscal year. No new standards were adopted by the EU in the first half of 2024. This condensed consolidated interim financial statement should be read in conjunction with the CENIT consolidated financial statement for the 2023 fiscal year.

The scope of consolidation has changed as follows compared to December 31, 2023:

• By purchase agreement dated January 3, 2024, CCE b:digital GmbH, a wholly owned subsidiary of CENIT AG, acquired 100\% of the limited partner's shares in CCE b:digital GmbH\&Co KG. Due to the simultaneous resignation of the general partner, the assets of CCE b:digital GmbH\&Co KG were accrued to CCE b:digital GmbH. CCE, headquartered in Bissendorf, positions itself as an expert for digital solutions and services for engineering and manufacturing - primarily based on the Dassault Systèmes portfolio. CCE was included in the consolidated financial statements for the first time on January 3, 2024. As of June 30, 2024, CCE had 14 employees and has contributed sales of EUR 2,712 k and EBIT of EUR 31 k to CENIT's success since initial consolidation.
• The consideration transferred for the acquisition of the shares in CCE includes a fixed amount of EUR $1,909 \mathrm{k}$ and a variable earn-out agreement. Due to the ongoing purchase price allocation, no intangible assets were capitalized as at the reporting date and non-tax-deductible goodwill in the amount of EUR $1,714 \mathrm{k}$ was provisionally capitalised.
• CENIT incurred expenses of EUR 115 k for legal advice and due diligence in connection with the business combination, of which EUR 38 k is attributable to the current financial year. These costs are reported under other operating expenses.

The following table shows the preliminary fair values of the assets and liabilities at the acquisition date:

Fair values at the acquisition date (preliminary) in EUR K	$03 / 01 / 2024$
Intangible assets	3
Property, plant and equipment	1,173
Trade accounts receivable	306
Other receivables	1
Cash and cash equivalents	1,139
Other Assets	179
Total assets	$\mathbf{2 , 8 0 1}$
Lease liabilities	1,112
Trade accounts payable	169
Other liabilities	402
Current income tax liabilities	25
Other accrued liabilities	35
Deferred tax liabilities	1
Contract liabilities	861
Total liabilities	$\mathbf{2 , 6 0 5}$
Net assets	$\mathbf{1 9 6}$

The consolidated interim financial statement of June 30, 2024 has not been audited or subjected to review. Concerning material changes in the consolidated balance sheet and statement of comprehensive income, we refer you to the report on net assets, financial and earnings situation within this interim management report.

Estimates and assumptions

Estimates and assumptions contain corresponding risks and uncertainties. Many factors that have an influence on the business model, business activities, business strategy and success of the CENIT Group are not always within the CENIT Group's sphere of influence. When updating the estimates and discretionary decisions, available information on the probable economic development was taken into account. This information was included when examining the recoverability of financial assets, in particular receivables.

Relevant information on current as well as expected business development was taken into account in the analysis on the recoverability of financial assets, particularly with regard to trade receivables and goodwill (IAS 36). In this context, there were no indications of impairment of goodwill.

Breakdown of income by product/income type

in EUR k	H1 2024	H1 2023	Change in \%
Third-party software	50,771	44,754	13.4
from licences	2,817	2,471	14.0
from subscriptions	8,629	7,191	20.0
from software updating	39,325	35,092	21.1
CENIT consulting and services	39,210	35,008	12.0
CENIT Software	9,291	7,637	21.7
from licences	2,444	1,570	55.7
from subscriptions	1,351	768	75.9
from software updating	5,496	5,299	3.7
Merchandise	83	71	16.9
Total	99,355	87,470	13.6

Breakdown of income by regions

in EUR k	H1 2024	H1 2023	Change in \%
Germany	65,889	55,818	18.0
Europe excluding Germany	30,072	28,566	5.3
America	3,156	3,004	5.0
Asia	238	82	$>100.0$
Total	$\mathbf{9 9 , 3 5 5}$	$\mathbf{8 7 , 4 7 0}$	$\mathbf{1 3 . 6}$

Group segment report

The principles on which information on Group segments was prepared are the same as those adopted in the consolidated financial statement for the 2023 fiscal year.

For corporate management purposes, the Group is organised into business units based on its products and services, and includes the following two reportable operating segments:

• PLM (Product Lifecycle Management)
• EIM (Enterprise Information Management)

30 JUNE 2024	IN EUR K	PLM	EIM	RECONCILIATION	TOTAL
External revenue		79,285	20,070	0	99,355
Amortisation and depreciation		2,181	1,609	0	3,790
EBIT		1,071	935	0	2,006
Financial result		0	0	$-1,174$	$-1,174$
Income taxes		0	0	$-471$	$-471$
Net income		1,071	935	$-1,646$	360
Segment assets		64,666	51,184	33,453	149,303
Segment liabilities		44,062	19,388	41,121	104,571
Investments in property, plant and equipment and intangible assets		760	239	0	999

30 JUNE 2023	IN EUR K	PLM	EIM	RECONCILIATION	TOTAL
External revenue		69,060	18,410	0	87,470
Amortisation and depreciation		1,689	1,437	0	3,126
EBIT		1,964	656	0	2,620
Financial result		0	0	$-532$	$-532$
Income taxes		0	0	$-363$	$-363$
Net income		2,030	656	$-895$	1,791
Segment assets		52,911	51,613	24,826	129,350
Segment liabilities		42,745	18,947	25,266	86,958
Investments in property, plant and equipment and intangible assets		873	180	0	1,053

Responsibility statement

"To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, we affirm that the half-year financial report provides a true and fair impression of the assets and the financial and earnings situation of the Group, and that this 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 describing the principal risks and opportunities associated with the anticipated development of the Group."

Stuttgart, August 2024
CENIT Aktiengesellschaft
The Management Board

Peter Schneck
Spokesman, Management Board

Axel Otto
Chief Financial Officer

CENIT AG
Industriestrasse 52-54
D-70565 Stuttgart

P $\quad+497117825-30$
E Info@cenit.de
www.cenit.com