CENIT AG — Interim / Quarterly Report 2009

Nov 9, 2009

9-Months Report 2009

CENIT AG Systemhaus

Industriestraße 52-54 D-70565 Stuttgart Tel: + 49 711 7825-30 Fax: + 49 711 7825-4000 Internet: http://www.cenit.de

Investor Relations: ISIN:DE0005407100

Fabian Rau Tel: + 49 711 7825-3185 Fax:+ 49 711 782544-4185 Email: aktie@cenit.de

CENIT AT A GLANCE (ungeprüft) unaudited)
At a glance - January 1 until September 30, 2009
in Mill. EUR		Sept. 30, 2009 Sept. 30, 2008
Sales	63,38	56,63
Gross profits	43,53	44,85
EBITDA	2,77	3,88
Operating returns (EBIT)	1,71	2,80
EBT	1,90	3,26
Netincome of the group	1,73	2,56
Result per share (basic) in EURO	0,21	0,31
Result per share (diluted) in EURO	0,21	0,31
Number of employees at end of period	705	726
EBIT - Margin	2,7%	4,9%
Profit - Margin	2,7%	4,5%
in Mill. EUR	September 30, 2009	Dec. 31, 2008
Equity in ratio	64%	64%
Equity	27,09	25,36
Liabilities	15,14	14,05
Balance sheet total	42,24	39,41

OVERALL ECONOMIC SITUATION AND BUSINESS SENTIMENT

There are growing indications that the recession is coming to an end. In the US, there are consistent signs of economic recovery, which the IMF attributes to government assistance measures. The ECB calculates that US economic output will still contracted slightly during the third quarter, but that it has stabilized overall and thus performed better than had been anticipated during the preceding quarter.

In a report issued this autumn, Germany's leading economic research institutes likewise expect Germany's gross domestic product to grow by 1.2 percent in 2010, despite the fact that the economy had to cope with a massive decline of approx. 5 percent during the current year. According to estimates released by the Rhenish-Westphalian Institute for Economic Research (RWI) and the Munich-based ifo Institute for Economic Research, the major risk factor for the future is that new upheavals in the international financial and banking system cannot be ruled out by any means. The financing conditions for enterprises, which are growing more restrictive as it is, could develop into a credit crunch that would act as a serious impediment to economic recovery. The economic pundits thus recommend that the Federal Government require banks to retain a significantly higher capital ratio and thereby widen the scope for future lending. They also believe that it is high time to develop strategies for phasing out the extraordinary measures taken to combat the financial crisis.

In its recent study on the software and IT services market in Germany, PAC Paris (Pierre Audoin Consultant) reaches the conclusion that while investment sentiment in the IT sector will remain muted throughout 2009, many providers of software and IT services will be able to breathe more freely as they feel the effects of recovery during the coming months. This market, which has contracted in many areas ever since the onset of the crisis, will already regain 2008 levels during the coming year 2010.

A poll of 600 IT-reliant enterprises in Germany, which PAC conducted in May of 2009, also indicates an upward trend. Almost one-third of the enterprises polled responded optimistically and expect IT budgets to grow in 2010, while only about 20% expected such budget increases for 2009. Similarly, the number of respondents who expect cost-cutting in their IT segments during 2010 is significantly lower. But larger enterprises were among the most

cautious – and they are exactly the ones that make for the lion's share of earnings among IT providers.

According to PAC's forecast, project business will continue to contract, but this can be offset by the strong growth rates that can be achieved in individual outsourcing segments. We too believe that project-related business will remain weak during the coming year.

KONZERNLAGEBERICHT GROUP SITUATION REPORT

DEVELOPMENT OF RESULTS

CENIT's results during the third quarter show that we have held our ground in an expectedly difficult business environment. With total sales of 63.4 m €, we have again claimed an increase over the previous year, in the order of 12 percent. For the first time, we were able to achieve significant income from software sales again. As a result, we were able to fulfil our expectations for the 3rd Quarter, a period characterized by short-time work in the auto industry and the summer holidays. We are continuing to follow a consistent enterprise policy aimed at sustainability, and in doing so take a careful approach to the challenges that lie ahead. As for our customers, we can in many instances discern resumed investment decisions for new, innovative products. It remains our foremost task to influence these decisions in our favour.

OVERVIEW OF 3RD QUARTER FIGURES

Group-wide sales again increased, attaining 63.4 m € (09/2008: 56.6 m €/ 12%) at the end of the 3rd Quarter. The gross surplus amounted 43.5 m € (09/2008: 44.9 m €/ -3%). EBITDA attained 2.8 m € (09/2008: 3.9 m €/ -28%). EBIT during the reporting period amounted to 1.7 m € (09/2008: 2.8 m €/ -39%). The pre-tax result (EBT) was 1.9 m € (09/2008: 3.3 m €/ - 41%). The consolidated result was 1.7 m € (09/2008: 2.6 m €/ -32%). Consolidated EPS (earnings per share) thus derive to 0.21 € per share (09/2008: 0.31 €/ -32%).

BREAKDOWN OF EARNINGS

Sales in the services sector grew by 9% to a current 40.2 m € (09/2008: 36.9 m €), making services the strongest contributor to sales with a share of 63%. Sales of CENIT software during the first 9 months of the current business year totalled 5.7 m € (09/2008: 6.3 m € / - 9%). Sales of CENIT's proprietary software thus account for approx. 9% of total sales. Thanks in particular to the VAR model, the non-CENIT software business grew by 57% to 16.9 m € (09/2008: 10.8 m €), accounting for 27% of total sales. Other proceeds accrued total 0.5 m €.

HOLDINGS – FOREIGN SUBSIDIARIES

CENIT (Switzerland) AG achieved sales of 2.8 m € (09/2008: 3.7 m €), accounting for EBIT of 0.8 m € (09/2008: 2.1 m €).

With sales of 4.1 m € (09/2008: 4.9 m €), CENIT North America attained negative EBIT of –0.6 m € (09/2008: 0.2 m €).

Achieving sales of 0.4 m € (09/2008: 0.5 m €), CENIT SRL in Romania was able to post EBIT of 0.1 m € (09/2008: 0.1 m €).

The CENIT company in Toulouse, France realized sales of 0.3 m € (09/2008: 0.2 m €) and EBIT of 0.02 m € (09/2008: 0.02 m €).

DEVELOPMENT OF COSTS

Other business-related expenditures totalled 10.0 m € (reference period 2008: 11.9 m €).

INVESTMENTS

Investments during the first 9 months of 2009 totalled 0.6 m € (09/2008: 1.1 m €).

CHANGES IN COMPOSITION OF MANAGING AND SUPERVISORY BOARDS

None

EVENTS OF SPECIAL SIGNIFICANCE WHICH COULD AFFECT THE BUSINESS RESULT

None

RISK MANAGEMENT REPORT

There was no inventory risk for the Group during the reporting period. For more information, please refer to the detailed risk analysis contained in the 2008 Annual Report.

INTERIM DIVIDEND

No interim dividend was paid out.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

None

ORDERS SITUATION

Orders in hand totalled 21.1 m € (9/2008: 26.2 m €) and incoming orders were at 56.9 m €. (9/2008: 73.6 m €). These figures do not provide a meaningful basis of comparison however, because after the 2nd Quarter the figures for the second half of the year were heavily influenced by a single large order.

ORDERS OF SPECIAL SIGNIFICANCE

None

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits and securities incl. current assets totalled 17.6 m € (31 December 2008: 13.2 m €). The enterprise remains debt-free.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total was 42.2 m €. Trade debtors and other assets totalled 10.5 m €. On the balance-sheet date, the Group's net worth was approx. 27.1 m € (31 December 2008: 25.4 m €), with an equity ratio of 64% (31 December 2008: 64%). The operative cash flow was 2.6 m € (30 September 2008: 4.5 m €).

STAFF

On the balance-sheet date, CENIT employed a total of 705 staff (09/2008: 726).

SUPPLEMENTARY REPORT, OPPORTUNITIES AND OUTLOOK

IMF, OECD and ECB agree that the global economy will contract overall during 2009, but recover somewhat toward the end of the year. The general expectation is that the global economy will begin to grow again, although the financial crisis remains to be fully overcome. Against this backdrop, we shall remain cautious, but will nevertheless faithfully pursue our profitable enterprise policy.

CENIT Aktiengesellschaft Systemhaus CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unauditedt) for the period from January 1 to September 30, 2009

in EUR k	Sept. 30, 2009	Dec. 31, 2008
ASSETS
NON-CURRENT ASSETS
Intangible assets	1.286	1.505
Property, plant and equipment	2.362	2.449
Investments in an associate	50	51
Income tax receivable	603	583
	4.301	4.588
DEFERRED TAX ASSETS	154	0
NON-CURRENT ASSETS	4.455	4.588
CURRENT ASSETS
Inventories	1.173	1.129
Trade receivables	10.492	15.065
Receivables from associates	3.986	2.977
Current income tax assets	1.740	1.043
Other receivables	425	156
Other financial assets at fair value through profit or loss	2.960	960
Cash	14.617	12.265
Prepaid expenses	2.388	1.231
CURRENT ASSETS	37.781	34.826
TOTAL ASSETS	42.236	39.414

CENIT Aktiengesellschaft Systemhaus CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unauditedt) for the period from January 1 to September 30, 2009

in EUR k	Sept. 30, 2009	Dec. 31, 2008
EQUITY AND LIABILITIES
EQUITY
Issued capital	8.368	8.368
Capital reserve	1.058	1.058
Currency translation reserve	-292	-292
Legal reserve	419	418
Other revenue reserves	11.051	8.140
Net income of the Group attributable to the shareholders of CENIT AG	6.489	7.672
	27.093	25.364
Minority interests	0	0
TOTAL EQUITY	27.093	25.364
NON-CURRENT LIABILITIES
Deferred tax liabilities	434	516
CURRENT LIABILITIES
Currenct liabilities to banks	0	0
Trade payables	2.669	5.069
Liabilities to associates	0	39
Other liabilities	11.797	7.198
Current income tax liabilities	76	1.058
Other provisions	167	170
Deferred income	0	0
	14.709	13.534
TOTAL EQUITY AND LIABILITIES	42.236	39.414

CENIT Aktiengesellschaft Systemhaus CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2009

	in EUR k		Sept. 30, 2009	Sept. 30, 2008
	1. REVENUE		63.384	56.625
	2. Increase or decrease in work in process		-626	2.336
	Total operating performance		62.758	58.961
	3. Other operating income		726	474
	Operating perfomance		63.484	59.435
	4. Cost of materials	19.958		14.584
	5. Personnel expenses	30.654		29.034
	6. Amortization of intangible assets and
	depreciation on property, plant and equipment	1.067		1.082
	7. Other operating expenses	10.099		11.935
			61.778	56.635
	NET OPERATING INCOME		1.706	2.800
	8. Other interest and similar income	216		217
	9. Interest and similar expenses	17		5
	10. Result from financial instruments
	at fair value through profit or loss	0		252
	11. Share of profit of an associate	-1
			198	464
	RESULT FROM ORDINARY ACTIVITIES		1.904	3.264
	12. Extraordinary profit/loss		0	0
	13. Income taxes		175	701
	14. NET INCOME OF THE GROUP FOR THE YEAR		1.729	2.563
	15. thereof attributable to the equity holders of CENIT AG		1.729	2.563
	16. thereof attributable to minority interests		0	0
	Earnings per share in EUR
basic			0,21	0,31
	diluted		0,21	0,31

CONSOLIDATED INCOME STATEMENT (in accordance with IFRSs) (unauditedt) for the period from July 1 to September 30, 2009

	in EUR k		3rd Quarter,2009	3rd Quarter, 2008
	1. REVENUE		20.325	22.343
	2. Increase ot decrease in work of process		-331	274
	Total operating performance		19.994	22.617
	3. Other operating income		144	152
	Operating perfomance		20.138	22.769
	4. Cost of materials	6.342		6.169
	5. Personnel expenses	9.393		9.690
	6. Amortization of intangible assets and
	depreciation on property, plant and equipment	354		527
	7. Other operating expenses	3.167		4.454
			19.256	20.840
	NET OPERATING INCOME		882	1.929
	8. Other interest and similar income	49		61
	9. Interest and similar expenses	13		2
	10. Result from financial instruments
	at fair value through profit or loss	0		153
	11. Share of profit of an associate	-1
			35	212
	RESULT FROM ORDINARY ACTIVITIES		917	2.141
	12. Extraordinary profit/loss		0	0
	12. Income taxes		-68	580
	13. NET INCOME OF THE GROUP FOR THE YEAR		985	1.561
	14. thereof attributable to the shareholders of CENIT AG		985	1.561
	15. thereof attributable to minority interests		0	0
	Earnings per share in EUR
basic			0,12	0,19
	diluted		0,12	0,19

CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRSs) (unaudited) for the period from January 1 to September 30, 2009

		Sept. 30,2008
Cash flow from operating activities
Earnings before tax	1.904	3.264
Adjusted for:
Amortization and depreciation	1.067	1.082
Losses on disposals of non-current assets	13	2
Gains on disposals of non-current assets	3	0
Share of profit of associates	1	0
Other non-cash expenses and income	-179	371
Change in other financial assets	0	0
Interest income	-216	-217
Interest expenses	17	5
Net operating income before changes in net working capital	2.610	4.507
Increase/decrease in trade receivables
and other current, non-monetary assets	1.294	-6.369
Increase/decrease in inventories	-44	-2.653
Increase/decrease in current liabilities and provisions	3.285	5.092
Interest paid	-17	-5
Interest received	216	217
Income taxes paid	-2.367	-2.324
Net cash flow from operating activities	4.977	-1.535
Cash flow from investing activities
Acquisition of property, plant and equipment
and intangible assets	-631	-1.150
Purchase of investments in an associate	0	-2.167
Acquisition of shares in fully consolidated entities	0
Gain on disposal of property, plant and equipment	5	0
Change in other financial assets that are
not allocable to cash and cash equivalents	-2.000	8.320
Net cash paid for investing activities	-2.626	5.003
Cash flow from financing activities
Repayment of longterm bank loans	0	0
Dividends paid to shareholders	0	-4.184
Change in convertible bond	0	0
Net cash paid for financing activities	0	-4.184
Net increase/decrease in cash and cash equivalents	2.352	-716
Cash and cash equivalents at the beginning of the period	12.265	8.995
Cash and cash equivalents at the end of the period	14.617	8.279

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in accordance with IFRSs) (unaudited) as of September 30, 2009

					Equity attributable to equity holders of the parent
in EUR k	Issued capital	Capital reserve	Currency translation reserve	Legal reserve	Other revenue reserves	Net income of the Group attributable to shareholders of CENIT AG	Total	Minority interests	Total
As of January 1,2008	8.368	1.058	-372	418	6.483	10.222	26.177	0	26.177
Exchange differences			80				80		80
Net income of the Group for the year						3.334	3.334		3.334
Total income recognized for the period	0	0	80	0	0	3.334	3.414	0	3.414
Reversal of minority interests					124		124	64	188
Acquisition of residual share					-167		-167	-64	-231
Dividend distribution						-4.184	-4.184		-4.184
Allocations to the other revenue reserve					1.700	-1.700			0
As of Dec. 31,2008	8.368	1.058	-292	418	8.140	7.672	25.364	0	25.364
Exchange differences			1				1		1
Net income of the Group for the year						1.729	1.729	0	1.729
Total income recognized for the period	0	0	1	0	0	1.729	1.730	0	1.730
Reversal of minority interests							0		0
Acquisition of residual share							0		0
Transfer from stock options		0					0		0
Dividend distribution							0		0
Allocation to the other revenue reserve					2.900	-2.900			0
Allocation to the legal revenue reserve				1	11	-12	0		0
Capital increase from company funds							0		0
As of September 30, 2009	8.368	1.058	-291	419	11.051	6.489	27.094	0	27.094

Segment Reporting by Business Unit (in accordance with IFRSs) (ungeprüft) for the period from January 1 to September 30, 2009

		EIM	PLM	not allocated	Group
in EUR k
External sales	Q1-Q3 2009	19.687	43.698	0	63.384
	Q1-Q3 2008	17.668	38.957	0	56.625
EBIT	Q1-Q3 2009	2.083	-377	0	1.706
	Q1-Q3 2008	2.474	327	0	2.800
Share of profit of	Q1-Q3 2009	0	-1	0	-1
an associate	Q1-Q3 2008	0	-1	0	-1
Other interest result and	Q1-Q3 2009	0	0	199	199
financial result	Q1-Q3 2008	0	0	464	464
Income taxes	Q1-Q3 2009	0	0	175	175
	Q1-Q3 2008	0	0	701	701
Net income of the Group	Q1-Q3 2009	2.083	-377	23	1.728
	Q1-Q3 2008	2.474	327	-238	2.563
Segment assets	Q1-Q3 2009	4.547	17.546	20.093	42.186
	Q1-Q3 2008	4.693	21.524	12.332	38.549
Investment in an associate	Q1-Q3 2009	0	50	0	50
	Q1-Q3 2008	0	51	0	51
Segment liabilities	Q1-Q3 2009	3.773	10.848	522	15.143
	Q1-Q3 2008	3.130	9.326	1.446	13.902
Investments in property, plant and	Q1-Q3 2009	300	332	0	631
equipment and intangible assets	Q1-Q3 2008	383	767	0	1.150
Amortization and depreciation	Q1-Q3 2009	218	848	0	1.067
	Q1-Q3 2008	206	877	0	1.082

EIM=Enterprise Information Management; PLM = Project Lifecycle Management

Segment Report by Region (in accordance with IFRSs) for the period from January 1 to September 30, 2009 (ungeprüft)

in EUR k		Germany	Switzerland	North America	Romania	France	not allocated	Consolidation	Group
Internal sales	Q1-Q3 2009	3.375	529	236	370	344	0	-4.854	0
	Q1-Q3 2008	2.358	1.814	222	527	194	0	-5.114	0
External sales	Q1-Q3 2009	56.837	2.273	4.273	2	0	0	0	63.384
	Q1-Q3 2008	50.043	1.867	4.716	0	0	0	0	56.625
Segment assets	Q1-Q3 2009	20.582	3.095	1.571	84	33	20.093	-3.272	42.186
	Q1-Q3 2008	26.850	2.336	1.183	122	3	12.332	-4.276	38.549
Investment in an associate	Q1-Q3 2009	50	0	0	0	0	0	0	50
	Q1-Q3 2008	53	0	0	0	0	0	-2	51
Investments in property, plant and	Q1-Q3 2009	571	4	5	23	28	0	0	631
equipment and intangible assets	Q1-Q3 2008	1.068	5	66	11	0	0	0	1.150

INFORMATION ON SHARES AND OPTIONS HELD BY BOARD MEMBERS AND EMPLOYEES IN ACCORDANCE WITH § 160 Para. 1 No. 2 AND 5 AktG [Stock Corporations Act]

CENIT's Managing and Supervisory Boards hold subscription rights to 39,000 share options. CENIT employees hold subscription rights to 160,000 share options.

Directors´ Holdings:

Share Portfolio as at 30.09.2009

Total number of shares: 8,367,758

Managing Board:		Supervisory Board:
Kurt Bengel:	0	Andreas Schmidt:	191,792
Christian Pusch:	0	Hubert Leypoldt:	1,600
		Andreas Karrer:	0

Financial Calendar:

09 November 2009	German Equity Forum, Frankfurt

DIRECTORS' HOLDING