CENIT AG — Interim / Quarterly Report 2011

Aug 11, 2011

6-Month Report 2011

CENIT AG Industriestraße 52-54 70565 Stuttgart Tel. +49 7 11 78 25-30 Fax: +49 7 11 78 25-40 00 ISIN: DE0005407100 Internet: www.cenit.de

Investor Relations: Tel. +49 7 11 78 25-3320 Fax: +49 7 11 78 25 44-4320 E-Mail: aktie@cenit.de

CENIT AT A GLANCE (unaudited)
At a glance - January 1 until June 30, 2011
in Mill. EUR	June 30, 2011	June 30, 2010
Sales	50,32	41,38
Gross profits	33,21	28,14
EBITDA	2,93	1,58
Operating returns (EBIT)	1,99	0,86
EBT	2,12	0,96
Netincome of the group	1,45	0,67
Result per share (basic) in EURO	0,17	0,08
Result per share (diluted) in EURO	0,17	0,08
Number of employees at end of period	652	618 *
EBIT - Margin	3,9%	2,1%
Profit - Margin	2,9%	1,6%
in Mill. EUR	June 30, 2011	Dec. 31, 2010
Equity in ratio	54%	58%
Equity	29,28	29,04
Liabilities	25,21	20,69
Balance sheet total	54,49	49,73

* rev.statement

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 2nd Quarter 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 2nd Quarter 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 2011

ERGEBNISENTWICKLUNG

The results of the first 6 months of 2011 increased in comparison to the same period last year. Increased demand is coming especially from the manufacturing industry and from automotive suppliers, leading to sustained growth in the product lifecycle management (PLM) field. However, the enterprise information management (EIM) segment was likewise able to achieve higher sales during the first half of the year. Overall, sales of CENIT's proprietary software and third-party software were up significantly against the previous year. Based on these positive developments, we have raised our annual forecast for the 2011 business year. The precondition for achieving this goal is continued stability of the business environment.

With the acquisition of Transcat PLM in Switzerland, CENIT AG is strengthening its presence on the international market. In July, CENIT also established a subsidiary in Japan, so that the enterprise is now directly represented on the Asian continent.

OVERVIEW OF 2nd QUARTERE FIGURES

By the end of the 2nd Quarter, CENIT Group posted sales revenue of 50.3 m EUR (2010: 41.4 m EUR/22%). EBITDA totaled 2.9 m EUR (2010: 1.6 m EUR/85%), representing EBIT of 1.99 m EUR (2010: 0.9 m EUR/131 %). Earnings per share amounted to 0.17 EUR (2010: 0.08 EUR/113%).

BREAKDOWN OF EARNINGS

In the PLM segment, we achieved a sales total of 35.7 m EUR (2010: 30.6 m EUR/17%). The EIM segment posted sales of 14.6 m EUR after 10.7 m EUR in 2010 (36%). Sales of third-party software attained 18.6 m EUR (2010: 12.5 m EUR/48%), while sales of CENIT's proprietary software grew from 3.8 m EUR to 5.7 m EUR (53%). Turnover from services and consulting totaled 25.9 m EUR (2010: 24.6 m EUR/5%). Other sales amounted to 0.1 m EUR (2010: 0.5 m EUR /-76%).

PARTICIPATIONS – FOREIGN HOLDINGS

During the second Quarter of 2011, CENIT (Switzerland) AG merged with Transcat PLM AG (Switzerland). As a consequence, the company headquarters will relocate to Effretikon during the coming weeks. Currently, CENIT (Switzerland) AG employs 22 staff. The subsidiary achieved sales proceeds of 4.5 m EUR (2010: 1.4 m EUR), accounting for EBIT of 0.5 m EUR (2010: 0.04 m EUR).

With sales totaling 4.8 m EUR (2010: 2.5 m EUR), CENIT North America Inc. posted EBIT of 0.7 m EUR (2010: -0.1 m EUR). The high growth rate is attributable to a large one-off project.

CENIT SRL achieved sales of 0.5 m EUR (2010: 0.2 m EUR) and EBIT of 0.02 m EUR (2010: -0.01 m EUR).

CENIT France SARL posted sales of 0.3 m EUR (2010: 0.3 m EUR), representing EBIT of 0.05 m EUR (2010: 0.01 m EUR).

DEVELOPMENT OF COSTS

Other business-related expenditures totaled 7.3 m EUR (reference period 2010: 6.7 m EUR/10%).

INVESTMENTS

Total investments during the first 6 months of 2011 were 2.7 m EUR (reference period 2009: 0.5 m EUR).

CHANGES IN COMPOSITION OF MANAGING AND SUPERVISORY BOARDS

None

EVENTS OF SPECIAL SIGNIFICANCE WHICH COULD AFFECT THE BUSINESS RESULT

None

INTERIM DIVIDEND

No interim dividend was paid out.

DIVIDENDS APID OR PROPOSED FOR PAYMENT

The Managing and Supervisory Boards of CENIT proposed to the General Meeting on 26 May 2011 that a dividend of 0.15 EUR per share be paid out. The General Meeting approved this proposal. A total amount of approx. 1.25 m EUR was paid out to CENIT AG shareholders.

ORDERS SITUATION

Incoming orders Group-wide totaled 56.6 m EUR (2010: 42.4 m EUR/33%). On 30 June 2011, orders in hand amounted to 35.4 m EUR (2010: 25.4 m EUR/40%).

ORDERS OF SPECIAL SIGNIFICANCE

None

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits and securities totaled 19.7 m EUR (31 Dec. 2010: 13.3 m EUR). The enterprise is debt-free.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is 54.5 m EUR. Trade debtors and other assets totaled 18.5 m EUR. On the declaration date, the Group's net worth was approx. 29.3 m EUR (31 Dec 2010: 29 m EUR), with an equity ratio of 54% (31 Dec 2010: 58%). The operative cash flow was 7.3 m EUR (06/2010: 1.3 m EUR).

STAFF

On 30 June 2011, 652 staff members were employed Group-wide (30 June 2010: 618).

SUPPLEMENTARY REPORT, OPPORTUNITIES AND OUTLOOK

For the second half of the year, we again expect to achieve strong software business, as is traditionally the case during the last months of the year. Assuming continued stability of the economic environment, our current assessment allows us to raise our annual sales and earnings growth forecast for the 2011 business year from 10% to 15%, against 2010.

CENIT Aktiengesellschaft
CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
for the period from January 1 to June 30, 2011

in EUR k	June 30, 2011	Dec. 31, 2010
ASSETS
NON-CURRENT ASSETS
Intangible assets	5.969	4.320
Property, plant and equipment	2.187	1.953
Investment in an associated company	53	54
Income tax receivables	487	478
Other financial assets measured and recognized at fair value
through profit or loss	0	3.000
Trade receivables	0	194
Deferred tax assets	157	19
NON-CURRENT ASSETS	8.854	10.018
CURRENT ASSETS
Inventories	183	634
Trade receivables	15.824	15.291
Receivables from associated companies	2.632	4.865
Current income tax assets	1.046	699
Other receivables	165	159
Other financial assets measured and recognized at fair value	966	966
through profit or loss
Cash and cash equivalents	19.693	13.306
Prepaid expenses	5.126	3.790
CURRENT ASSETS	45.636	39.710
TOTAL ASSETS	54.490	49.728

CENIT Aktiengesellschaft
CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
for the period from January 1 to June 30, 2011

in EUR k	June 30, 2011	Dec. 31, 2010
EQUITY AND LIABILITIES
EQUITY
Issued capital	8.368	8.368
Additional paid-in capital	1.058	1.058
Currency translation reserve	196	154
Legal revenue reserve	418	418
Other revenue reserves	11.741	11.740
Unappropriated retained earnings	7.495	7.299
TOTAL EQUITY CAPITAL	29.276	29.037
NON-CURRENT LIABILITIES
Other liabilities	267	267
Deferred tax liabilities	1.887	1.267
	2.154	1.534
CURRENT LIABILITIES
Trade payables	2.562	4.684
Liabilities to associated companies	0	0
Other liabilities	13.275	12.198
Current income tax liabilities	272	64
Other provisions	342	177
Deferred income	6.609	2.034
	23.060	19.157
TOTAL ASSETS	54.490	49.728

CENIT Aktiengesellschaft CONSOLIDATED INCOME STATEMENT (in accordance with IFRS) (unaudited) for the period from January 1 to June 30, 2011

in EUR k		June 30, 2011	June 30, 2010
1. SALES REVENUES		50.319	41.377
2. Increase/Decrease in the work in progress		53	434
Gross performance		50.372	41.811
3. Other operating income		519	360
Operating perfomance		50.891	42.171
4. Cost of materials	17.686		14.033
5. Personnel expenses	22.931		19.842
6. Amortization/depreciation of intangible assets and
of property, plant and equipment	940		723
7. Other operating expenses	7.349		6.716
		48.906	41.314
OPERATING RESULT		1.985	857
8. Other interest and similar income	133		106
9. Interest and similar expenses	3		5
10. Result from financial instruments measured and
recognized at fair value through profit or loss	0		0
11. Share in profit/loss of associated companies	0		4
		130	105
RESULT OF ORDINARY ACTIVITIES		2.115	962
12. Income taxes		663	291
13. NET INCOME OF THE GROUP FOR TPERIOD 14. Thereof attributable to CENIT AG shareholders		1.452 1.452	671 671
Earnings per share in EUR
basic		0,17	0,08
diluted		0,17	0,08

CENIT Aktiengesellschaft CONSOLIDATED INCOME STATEMENT (in accordance with IFRS) (unaudited) for the period from April 1 to June 30, 2011

in EUR k		2nd Quarter,2011	2nd Quarter, 2010
1. SALES REVENUES		26.006	20.664
2. Increase/Decrease in the work in progress		-73	111
Gross performance		25.933	20.775
3. Other operating income		194	181
Operating perfomance		26.127	20.956
4. Cost of materials	9.218		7.185
5. Personnel expenses	11.635		9.712
6. Amortization/depreciation of intangible assets and
of property, plant and equipment	498		367
7. Other operating expenses	3.735		3.472
		25.086	20.736
OPERATING RESULT		1.041	220
8. Other interest and similar income	63		72
9. Interest and similar expenses	2		3
10. Result from financial instruments measured and
recognized at fair value through profit or loss	0		0
11. Share in profit/loss of associated companies	0		0
		61	69
RESULT OF ORDINARY ACTIVITIES		1.102	289
12. Income taxes		381	104
13. NET INCOME OF THE GROUP FOR THE PERIOD		721	185
14. Thereof attributable to CENIT AG shareholders		721	185
Earnings per share in EUR
basic		0,09	0,02
diluted		0,09	0,02

CENIT Aktiengesellschaft CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRSs) (unaudited) for the period from January 1 to June 30, 2011

in EUR k	June 30,2011	June 30,2010
Cash flow from operating activities
Earnings before income taxes and interest result	1.985	857
Adjusted for:
Amortization/depreciation of intangible assets and property, plant and equipment	940	723
Losses from the disposal of non-current assets	0	1
Income from the disposal of non-current assets	0	0
Profit/loss from associated companies	1	-4
Incidental acquisition costs concerning shares in fully consolidated companies	0	0
Other non-cash expenses	303	292
Change in fair value of other financial assets measured at fair value through profit or loss	0	0
Increase/decrease in other non-current assets and liabilities or provisions	184	4
Interest paid	-3	-5
Interest received	133	106
Income taxes paid	-662	-462
Operating result before changes in (net) working capital	2.881	1.512
Increase/decrease in trade receivables
and other current non-monetary assets	92	-2.636
Increase/decrease in inventories	451	-695
Increase/decrease in current liabilities and provisions	3.902	3.086
Net cash from operating activity	7.326	1.267
Cash flow from investing activities
Acquisition of property, plant and equipment
and of intangible assets	-2.684	-516
Purchase of investments in an associate	0	0
Income from the sale of property, plant and equipment	0	0
Change in other financial assets not
attributable to cash and cash equivalents	3.000	-1.000
Net cash used for investments	316	-1.516
Cash flow from financing activity
Dividends paid to shareholders	-1.255	-2.510
Net cash used for financing activity	-1.255	-2.510
Net increase/decrease in cash and cash equivalents	6.387	-2.759
Cash and cash equivalents at the beginning of the reporting period	13.306	18.599
Cash and cash equivalents at the end of the reporting period	19.693	15.840

CENIT Aktiengesellschaft

STATEMENT OF CHANGES IN SHAREHOLDES`EQUITY (in accordance with IFRSs) (unaudited) as of June 30, 2011

Equity attributable to shareholders of the parent

in EUR k	Issued capital	Additional paid-in capital	Currency translation reserve	Legal reserve	Other revenue reserves	Unappro- priated retained earnings	Total
As of January 1,2010	8.368	1.058	-309	418	11.040	7.500	28.075
Exchange differences			463				463
Net income of the Group for the year						3.009	3.009
Total comprehensive income	0	0	463	0	0	3.009	3.472
Reversal of minority interests							0
Acquisition of residual share							0
Dividend pay-out						-2.510	-2.510
Allocations to the other revenue reserves					1.300	-1.300
Withdrawls from other revenue reserves					-600	600
As of Dec. 31,2010 Exchange differences	8.368	1.058	154 42	418	11.740	7.299	29.037 42
Net income of the Group for the year						1.452	1.452
Total comprehensive income	0	0	42	0	0	1.452	1.494
Reversal of minority interests							0
Acquisition of residual share							0
Transfer from stock options							0
Dividend distribution						-1.255	-1.255
Allocation to the other revenue reserve					1	-1	0
Allocation to the other revenue reserve							0
Allocation to the legal revenue reserve							0
Capital increase from company funds							0
As of June 30, 2011	8.368	1.058	196	418	11.741	7.495	29.276

CENIT Aktiengesellschaft

Segment Reporting by Business Unit (in accordance with IFRSs) (unaudited)

for the period from January 1 to June 30, 2011

		EIM	PLM	not allocated	Group
in EUR k
External revenue	2011	14.610	35.710	0	50.319
	2010	10.735	30.641	0	41.376
EBIT	2011	474	1.511	0	1.985
	2010	237	620	0	857
Share of profit of	2011	0	0	0	0
an associated entity	2010	0	4	0	4
Other interest result and	2011	0	0	130	130
financial result	2010	0	0	102	102
Income taxes	2011	0	0	663	663
	2010	0	0	291	291
Net income of the Group	2011	474	1.511	-534	1.452
	2010	236	620	-186	670
Segment assets	2011	11.807	20.281	22.350	54.436
	2010	5.764	18.235	20.960	44.959
Investment in an associate	2011	0	53	0	53
	2010	0	54	0	54
Segment liabilities	2011	6.612	16.443	2.159	25.214
	2010	5.589	11.899	962	18.450
Investments in property, plant and	2011	268	2.416	0	2.684
equipment and intangible assets	2010	141	375	0	516
Amortization % depreciation	2011	368	572	0	940
	2010	169	554	0	723

EIM=Enterprise Information Management; PLM = Product Lifecycle Management

CENIT Aktiengesellschaft

Segment Report by Country (in accordance with IFRSs) for the period from January 1 to June 30, 2011 (unaudited)

in EUR k		Germany	Switzerland	North America	Romania	France	not allocated	Consolidation	Group
Internal revenue	2011	2.437	13	205	169	312	0	-3.136	0
	2010	1.812	17	253	215	254	0	-2.552	0
External revenue	2011	43.137	2.268	4.590	298	27	0	0	50.319
	2010	37.708	1.354	2.313	1	1	0	0	41.377
Segment assets	2011	28.350	4.136	2.840	175	69	22.349	-3.482	54.436
	2010	22.510	851	1.354	74	29	20.960	-819	44.959
Investment in an associate	2011	53	0	0	0	0	0	0	53
	2010	54	0	0	0	0	0	0	54
Investments in property, plant and	2011	777	1.874	22	12	0	0	0	2.684
equipment and intangible assets	2010	493	0	18	2	3	0	0	516

EXPLANATORY NOTES TO SHARES AND SUBSCRIPTION RIGHTS HELD BY DIRECTORS, COMPANY OFFICERS AND EMPLOYEES IN ACCORDANCE WITH Section § 160 Subsection 1 No. 2 AND 5 AktG

The Directors of the company have 39,000 share option rights. CENIT employees have also 150.000 share option rights.

DIRECTORS' HOLDING:

Number of shares as at June, 30, 2011

Total Number of Shares: 8,367,758

Executive Board		Supervisory Board
Kurt Bengel:	6,000	Andreas Schmidt:	191,792
Christian Pusch:	8,000	Hubert Leypoldt:	1,600
		Andreas Karrer:	1,000

Financial Calendar:

10.11.2011	3rd Quarter Report
21.-23.11.2011	German Equity Forum Frankfurt