CENIT AG — Interim / Quarterly Report 2017

May 17, 2017

CENIT Aktiengesellschaft, Stuttgart At a glance – January 1 until March 31, 2017
in EUR k	March 31st, 2017	March 31st, 2016
Sales	29,955	29,628
Gross profits	18,584	18,526
EBITDA	2,656	2,745
Operating returns (EBIT)	2,154	2,095
EBT	2,151	2,093
Netincome of the group	1,387	1,610
Earnings per share (basic) in EUR	0.17	0.19
Earnings per share (diluted) in EUR	0.17	0.19
Number of employees at end of period	613	629
EBIT‐Margin	7.2%	7.1%
Profit‐Margin	4.6%	5.4%
in EUR k	March 31st, 2017	December 31st, 2016
Equity in ratio	55.6%	56.2%
Equity	41,746	40,578
Liabilities	33,310	31,643
Balance sheet total	75,056	72,221

DEVELOPMENT OF RESULTS

After three months, CENIT AG was able to slightly increase its sales and EBIT. The company recorded a sales growth by around 6 percent in its own software compared to the same period of previous year.

OVERVIEW OF 3 MONTHS FIGURES

During the first three months, CENIT group generated sales of EUR k 29,955 (prior year: EUR k 29,628/1.1%). EBITDA amounted to EUR k 2,656 (prior year: EUR k 2,745/‐3.3%) at EBIT of EUR k 2,154 (prior year: EUR k 2,095/2.8%). Earnings per share were EUR 0.17 (prior year: EUR 0.19).

BREAKDOWN OF EARNINGS

In the PLM segment, CENIT achieved in the first 3 months earnings of EUR k 26,215 (prior year: EUR k 25,407/3.2%). The EIM segment attained a sales total of EUR k 3,740 against EUR k 4,221 during the same period of 2016 (‐11.4%). Sales of third‐party software totaled EUR k 13,435 (prior year: EUR k 13,583/‐1.1%), while sales of CENIT's proprietary software increased from EUR k 3,931 to EUR k 4,160/5.8%. Sales in the service and consulting segment amounted to EUR k 12,245 (prior year: EUR k 12,088/1.3%). Other sales totaled EUR k 115 (prior year: EUR k 26/> 100.0%).

COST DEVELOPMENT

Other operating expenses totaled EUR k 3,278 (prior year: EUR k 3,291).

INVESTMENTS

Investments expenditures in the first 3 months 2017 amounted to EUR k 573 (prior year: EUR k 205).

CHANGES IN MANAGING AND SUPERVISORY BODIES

None in the first 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 12 May 2017, the Managing Board and the Supervisory Board of CENIT proposed the payment of a dividend of EUR 1.00 for the 2015 business year. The General Meeting approved this proposal. A total amount of approx. EUR k 8,368 was paid out to the CENIT AG shareholders.

ORDERS SITUATION

The group‐wide order intake totaled EUR k 33,198 (prior year: EUR k 34,618/‐3.7%). Orders in hand as at 31 March 2017 amounted to EUR k 32,488 (prior year: EUR k 35,097/‐7.4%).

ORDERS OF SPECIAL SIGNIFICANCE

None.

LIQUID ASSETS AND SECURITIES

On the balance‐sheet date, bank deposits totaled EUR k 42,884 (31 Dec. 2016: EUR k 33,606). The enterprise is free of debt.

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance‐sheet total is EUR k 75,056. Trade receivables totaled EUR k 11,396. On the balance‐ sheet date, equity capital amounted to approx. EUR k 41,746 (31 Dec. 2016: EUR k 40,578) at an equity ratio of 55.6% (31 Dec. 2016: 56.2%). Operative cash flow totaled EUR k 10,081 (prior year: EUR k 5,918).

EMPLOYEES

On 31 March 2017, CENIT employed 613 staff group‐wide (prior year: 629).

SUPPLEMENTARY, OPPORTUNITIES AND FORECAST REPORTS

For the current year, the CENIT Group is anticipating a sales growth by 2% with unchanged earnings (EBIT) compared to the previous year.

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2017	December 31st, 2016
ASSETS
NON‐CURRENT ASSETS
Intangible assets	5,204	5,230
Property, plant and equipment	2,296	2,208
Investment in Joint Venture	61	61
Income tax receivable	1	0
Deferred tax assets	387	424
NON‐CURRENT ASSETS	7,949	7,923
CURRENT ASSETS
Inventories	278	396
Trade receivables	11,396	19,631
Receivables from Joint Venture	3,073	3,292
Current income tax assets	297	442
Other receivables	137	209
Cash and cash equivalents	42,884	33,606
Prepaid expenses	9,042	6,722
CURRENT ASSETS	67,107	64,298
TOTAL ASSETS	75,056	72,221

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED BALANCE SHEET (in accordance with IFRSs) (unaudited)
in EUR k	March 31st, 2017	December 31st, 2016
EQUITY AND LIABILITIES
EQUITY
Issued capital	8,368	8,368
Capital reserve	1,058	1,058
Currency translation reserve	1,207	1,279
Statutory earnings reserve	418	418
Other earnings reserves	13,099	13,099
Unappropriated retained earnings	16,661	15,293
Equity attributable to shareholders of CENIT AG	40,811	39,515
Non‐controlling interests	935	1,063
TOTAL EQUITY	41,746	40,578
NON‐CURRENT LIABILITIES
Other liabilities	2,856	3,106
Deferred tax liabilities	680	658
NON‐CURRENT LIABILITIES	3,536	3,764
CURRENT LIABILITIES
Trade liabilities	3,576	3,679
Liabilities due to Joint Venture	0	39
Other liabilities	9,792	14,169
Current income tax liabilities	431	416
Other provisions	175	211
Deferred income	15,800	9,365
CURRENT LIABILITIES	29,774	27,879
TOTAL EQUITY AND LIABILITIES	75,056	72,221

CENIT	Aktiengesellschaft, Stuttgart CONSOLIDATED INCOME STATEMENT (in	accordance	with IFRSs) (unaudited)
	in EUR k	1st Jan – 31st March 2017	1st Jan – 31st March 2016
1.	REVENUE		29,955	29,628
2.	Increase/decrease in work of process		0	0
	Total operating performance		29,955	29,628
3.	Other operating income		265	447
	Operating performance		30,220	30,075
4.	Cost of materials	11,636		11,549
5.	Personnel expenses	12,650		12,490
6.	Amortization and depreciation of intangible assets and property, plant and equipment	502		650
7.	Other operating expenses	3,278		3,291
			28,066	27,980
	OPERATING RESULT		2,154	2,095
8.	Other interest and similar income	0		0
9.	Other interest and similar expenses	3		2
			‐3	‐2
	RESULT FROM ORDINARY ACTIVITIES		2,151	2,093
10.	Income taxes		764	483
	NET INCOME OF THE GROUP FOR THE YEAR		1,387	1,610
	thereof attributable to the shareholders of CENIT AG		1,368	1,610
	thereof attributable to non‐controlling interests		19	6
	Earnings per share in EUR
basic			0.17	0.19
	diluted		0.17	0.19

CENIT Aktiengesellschaft, Stuttgart

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF CASH FLOWS (in accordance with IFRS) (unaudited)

in EUR k	1st Jan – 31st	1st Jan – 31st
	March 2017	March 2016
Cash flow from operating activities
Earnings before tax and net interest	2,154	2,095
Adjustments for:
Amortization/depreciation of intangible assets and property, plant and equipment	502	650
Gains (‐) and losses (+) on disposals of non‐current assets	0	‐5
Increase/decrease in other non‐current assets and liabilities and provisions	‐257	‐228
Interest paid	‐3	‐2
Interest received	0	0
Income tax paid	‐547	‐490
Net operating income before changes in net working capital	1,849	2,020
Increase/decrease in trade receivables and other current non‐cash assets	6,176	‐45
Increase/decrease in inventories	118	39
Increase/decrease in current liabilities and provisions	1,938	3,904
Net cash flows from operating activities	10,081	5,918
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	‐573	‐205
Purchase of shares in fully consolidated entities (net cash outflow)	0	‐351
Income from the sale of property, plant and equipment	6	5
Net cash paid for investing activities	‐567	‐551
Cash flow from financing activities
Dividends paid to non‐controlling interests	‐147	0
Net cash paid for financing activities	‐147	0
Net increase/decrease in cash and cash equivalents	9,367	5,367
Change in cash and cash equivalents due to foreign exchange differences	‐89	‐169
Cash and cash equivalents at the beginning of the reporting period	33,606	33,941
Cash and cash equivalents at the end of the reporting period	42,884	39,139

CENIT Aktiengesellschaft, Stuttgart CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in accordance with IFRS) (unaudited)

In EUR k		1st Jan – 31st March 2017	1st Jan – 31st March 2016
Net income for the year		1,387	1,610
Other comprehensive income
Items that will be reclassified to the income statement in the future under certain circumstances
Currency translation reserve of foreign subsidiaries	‐72		‐160
Items that will not be reclassified to the income statement in the future
Actuarial gains/losses from defined benefit obligations and similar obligations	0		0
Deferred taxes recognised on other comprehensive income	0		0
Other comprehensive income after tax		‐72	‐160
Total comprehensive income		1,315	1,450
Thereof attributable to the shareholders of CENIT AG		1,296	1,444
thereof attributable to non‐controlling interests		19	6

CENIT Aktiengesellschaft, Stuttgart STATEMENT OF CHANGES IN EQUITY (in accordance with IFRS) (unaudited)

			Attributable to shareholders of CENIT AG
in EUR k	Subscribed capital	Capital reserves	Currency translation reserve	Legal reserve	Revenue reserves Other reserves	Retained earnings	Non‐ controlling interests	Total
As of 1st January 2016	8,368	1,058	1,096	418	14,807	14,096	0	39,843
Total comprehensive income			183		‐223	8,080	65	8,105
Dividend distribution						‐8,368	0	‐8,368
Acquisition of a subsidiary							998	998
Withdrawals from/addition to the revenue reserves					‐1,485	1,485	0	0
As of 31st December 2016	8,368	1,058	1,279	418	13,099	15,293	1,063	40,578
Total comprehensive income			‐72		0	1,368	19	1,315
Acquisition of a subsidiary
Dividends paid to non‐ controlling interests							‐147	‐147
Dividend distribution						0	0	0
As of 31st March 2017	8,368	1,058	1,207	418	13,099	16,661	935	41,746

CENIT Aktiengesellschaft

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

		EIM	PLM	Reconciliation	Group
in EUR k
External revenue	Q1‐Q1 2017	3,740	26,215	0	29,955
	Q1‐Q1 2016	4,221	25,407	0	29,628
EBIT	Q1‐Q1 2017	‐25	2,179	0	2,154
	Q1‐Q1 2016	‐337	2,431	0	2,095
Share of profit of	Q1‐Q1 2017	0	0	0	0
joint ventures	Q1‐Q1 2016	0	0	0	0
Other interest result and	Q1‐Q1 2017	0	0	‐3	‐3
financial result	Q1‐Q1 2016	0	0	‐2	‐2
Income taxes	Q1‐Q1 2017	0	0	764	764
	Q1‐Q1 2016	0	0	483	483
Net income of the Group	Q1‐Q1 2017	‐25	2,179	‐767	1,387
	Q1‐Q1 2016	‐337	2,431	‐483	1,610
Segment assets	Q1‐Q1 2017	5,989	25,417	43,589	74,995
	Q1‐Q1 2016	8,098	25,811	40,265	74,174
Investment in a joint venture	Q1‐Q1 2017	0	61	0	61
	Q1‐Q1 2016	0	53	0	53
Segment liabilities	Q1‐Q1 2017	6,525	25,796	989	33,310
	Q1‐Q1 2016	8,133	22,166	1,637	31,936
Investments in property, plant and	Q1‐Q1 2017	69	504	0	573
equipment and intangible assets	Q1‐Q1 2016	38	167	0	205
Amortization and depreciation	Q1‐Q1 2017	131	371	0	502
	Q1‐Q1 2016	134	516	0	650

EIM = Enterprise Information Management; PLM = Product Lifecycle Management

CENIT Aktiengesellschaft

Group Segment Report by Region (in accordance with IFRSs) unaudited

in EUR k		Germany	Switzerland	North America	Romania	France	Japan	Reconciliation	Consolidation	Group
External revenue	Q1‐Q1 2017	21,838	3,490	3,582	453	105	487	0	0	29,955
	Q1‐Q1 2016	21,566	2,480	4,204	683	184	511	0	0	29,628
Segment assets	Q1‐Q1 2017	28,319	4,771	2,914	368	303	957	43,588	‐6,225	74,995
	Q1‐Q1 2016	29,756	3,222	5,039	720	413	596	40,616	‐6,188	74,174
Investment in a joint venture	Q1‐Q1 2017	61	0	0	0	0	0	0	0	61
	Q1‐Q1 2016	53	0	0	0	0	0	0	0	53
Investments in property, plant and	Q1‐Q1 2017	524	19	7	20	1	2	0	0	573
equipment and intangible assets	Q1‐Q1 2016	188	3	9	5	0	0	0	0	205

DIRECTORS' HOLDING:

Number of shares as at March 31st, 2017

Total number of shares :		8,367,758
Management Board:		Supervisory Board:
Kurt Bengel:	6,000	Andreas Schmidt:	108,792
Matthias Schmidt:	1,670	Hubert Leypoldt:	1,600
		Andreas Karrer:	1,000

Financial Calendar:

1st August 2017	Release of 6‐Months Report 2017
2nd November 2017	Release of 9‐Months Report 2017
27th ‐29th November 2017	German Equity Forum, Frankfurt

IDL