Nexus AG

Earnings Release • Nov 27, 2014

letter to our stockHolders

Dear Stockholders:

The NEXUS team can also show very successful development of business in the third quarter 2014. We have again succeeded in a changing and very demanding environment to improve our sales and result considerably.

With an increase of approx. 8.0% in sales and result before taxes and interest, we could again grow convincingly in a challenging third quarter.

The wide range of our product portfolio was benefi cial in this respect. We have a number of market-leading diagnostic modules in addition to our core product "NEXUS / HIS", which can be marketed within NEXUS / HIS or independent of it. We provide very competitive complete solutions for senior citizen homes and rehabilitation institutions at the same time. This wide-ranged product portfolio enables us to adapt sales and project priorities to the respective market situation. This is also necessary at the present time.

The competitive situation in the European HIS market has changed substantially over the past months. Several companies were sold completely or partially, and the concentration of providers has continued further. Although these changes in the European competitive environment provide considerable opportunities for NEXUS, they have also created uncertainty among hospital customers at the same time. Many customers are waiting to see the result of acquisition strategy and only invest when the product strategy of their providers is clear and credible.

Highlights 3rd Quarter 2014 Development of Business

• • Further profi table growth in the third quarter
• • High payment in advance for important customers and development projects
• • Regionale- and portfolio expansion by enterprise acquisitions

It has been seen that it is a challenge in the current market situation to achieve substantial rates of increase. However, we consider this to be a short-term development, due to which we need not abandon our continual growth path.

To the contrary: We still had very attractive growth rates both in sales and revenue in the third quarter. We achieved this although we made considerable upfront investments in new product developments. This includes the introduction of a full-outsourcing project in the German Hospital Association with substantial initial investments and the collaboration in development with a medical product manufacturer, via which we will only generate revenue in subsequent periods.

We have also increased our product initiatives and invested very clearly in future growth drivers with the products "NEXUS / MOBILE" and "NEXUS New Generation". We have radically revised and streamlined our service processes to improve our internal workfl ows. Our goal is to structure addressing customers more directly. This is a goal that our customers consider extremely important.

We are strongly convinced that our market demands more and improved solutions from us and that we have the chance to lay the foundation for growth in the coming years.

Our latest acquisitions are targeting the same goal. We have used the third and the start of the fourth quarter to continue our strategy of the past years: the integration of smaller companies. We acquired shares in three companies overall.

On 8 September 2014, we purchased a majority share of the ProLohn GmbH, Singen Hohentwiel. The company operates in the area of human resources management on the market with approx. 15 staff members. Thanks to this acquisition, we will be able in the future to offer our customers programs for more effi cient structuring of their HR processes and ensure far-reaching integration into our information systems. This is an area, in which we expect a lot of future potential in hospitals.

Thanks to the acquisition of a majority share of MARABU EDV-Beratung und -Service GmbH, Berlin, on 25 September 2014, we have been able to enhance our portfolio with an Enterprise Content Management (ECM) solution. With approx. 35 employees and installations in more than 100 hospitals, the company is one of the market leaders for ECM solutions in the healthcare sector. NEXUS is enabling its customers with this product enhancement to integrate archiving processes completely into the hospital information system (NEXUS / HIS) and the diagnostic information system (NEXUS / DIS) as well as to get everything from one source.

We also acquired 100% of the shares of CS3i SAS, Vichy (F), on 31 October 2014. This also concerns a small company with approx. 32 employees, but which strengthens our position in France considerably. The company is the market leader for digital patient records in private French clinics. Together with NEXUS / OPTIM SAS, Grenoble (F), we expect synergy effects and substantial strengthening of our brand in France.

The NEXUS team is determined to take advantage of the current market opportunity and also to grow via acquisitions. This is a strategy that we have already implemented successfully in the past.

In spite of our multifaceted innovation, optimization and acquisition projects, we also scored in sales in 2014. We had orders from a total of 234 hospitals, rehabilitation institutions and senior citizen homes, including larger projects and new orders for complete hospitals.

Dear Stockholders: It is an exciting time for NEXUS, and we are faced with numerous challenges. However, we remain confi dent. We have outstanding products, our organization is very stable, and we continually work on improving our processes. These are the optimum prerequisites to operate successfully, even in a new competitive environment and with a substantially increased business volume.

We are looking forward to this task and would like to thank you, dear stockholders, for your trust.

Warm regards,

DR. INGO BEHRENDT NEXUS CEO

Financial Highlights for the 3rd Quarter 2014

	09/30/2014	09/30/2013
	KEUR	%	KEUR
Sales	56.351	7,9	52.237
Sales Healthcare Software	49.883	8,4	45.998
Sales Healthcare Service	6.468	3,7	6.239
Sales National	33.650	12,7	29.864
Sales International	22.701	1,5	22.373
Result of ther period before tax and interest (EBIT)	5.134	8,0	4.754
Result of the period before tax	5.285	8,5	4.873
Result of the period	5.282	3,3	5.112
Earnings per Share	0,37	1,7	0,36
Investments in Intangible and Fixed Assets	4.521	27,4	3.549
Depreciation	4.904	-5,5	5.191
Net Liquidity	26.145	8,9	24.018
Cash Flow from operating activities	7.799	8,5	7.189
Employees (on the cut-off date)	625	1,5	616

NEXUS-products are: simply - focussed - fast

Interim Annual Report Sales/Result: CONTINUED Increase in the 3rd Quarter

NEXUS Group sales increased from KEUR 52,237 to KEUR 56,351 (+7.9%) in the first nine months of the year 2014.

As a result, it was possible to continue the uninterrupted positive development of sales of the NEXUS Group of many years in the first nine months of 2014.

The international share of total business volume was 40.3% following 42.8% (Q3-2013), but it increased despite decreased sales in the Arabian and French markets by approx. 1.5% to KEUR 22,701. Sales in Germany developed very positively (+12.7%). Large orders as well as an increasing number of regular customers were the reason for this. Sales effects from exchange rate fluctuations were not significant compared to 31 December 2013.

Growth was generated in both business segments of NEXUS AG in the first three quarters. Sales in the area of Healthcare Service increased by approx. 8.4% from KEUR 45,998 (Q3-2013) to KEUR 49,883. An increase of 3.7% to KEUR 6,468 (Q3-2014) following KEUR 6,239 (Q3-2013) was achieved in the Healthcare Service segment. This contains the sales of approx. KEUR 142 of ProLohn GmbH.

The positive development of sales was also reflected in the result.

The operating result before taxes and interest (EBIT) improved by approx. 8.0% to KEUR 5,143 (Q3-2103: KEUR 4,754).

The result before taxes (EBT) reached KEUR 5,285 following KEUR 4,873 in Q3-2013 (+8.5%). The operating result after taxes improved by approx. 3.3% to KEUR 5,282. The effective tax burdens remain slight as previously due to losses of the individual companies carried forward (KEUR 262). Write-offs of KEUR 4,904 decreased compared to the previous year (Q3-2012: KEUR 5,191). The same applies to capitalized goods/services on own account, which are approx. KEUR 100 less than the previous year at KEUR 3,045. The return on sales after taxes is approx. 9.4%. Earnings per share amounted to €0.37.

Result before tax and interest (EBIT) in KEUR (3rd quarter) +8.0% as of previous year

One-time effects and expenses for setting up new business areas and the integration of acquired companies are 7 shown in their full amount in the operating result.

Sales increased by 4.4% to KEUR 18,528 following KEUR 17,752 in the third quarter of 2013. The result before taxes of KEUR 1,623 was 3.0% higher than the previous year (Q3-2013: KEUR 1,575).

The operative cash flow reached KEUR 7,799 as of 30 September 2014.

An operative cash flow of KEUR 7,799 was achieved in the first nine months of 2014 following KEUR 7,189 in the third quarter of 2013 (+8.5%). Dividends in the amount of KEUR 1,808 have been paid during the current year. Investments in intangible and fixed assets were made in the amount KEUR 4,521 following KEUR 3,549 in Q3-2013. Liquid funds of KEUR 26,145 are substantially higher (+8.9%) than the previous year (Q3-2013: KEUR 24,018) despite considerable investments and distribution of dividends.

The balance sheet total increased from KEUR 101,966 to KEUR 102,347 compared to 31 December 2013. There are no essential bank liabilities. Intangible assets and goodwill add up to a total of approx. € 49.0 million following approx. € 49.7 million in the third quarter 2013. Despite increased sales, trade account receivables decreased from KEUR 19,320 as of 31 December 2013 to KEUR 17,019 (Q3-2014).

There have been no essential changes of the net worth position of the Group compared to 31 December 2013.

Highlights Q3-2014 Group Sales and Result

• • 7.9% increase in sales from KEUR 52,237 to KEUR 56,351 in third quarter
• • 8.5% increase in result before taxes from KEUR 4,873 to KEUR 5,285
• • Operative cash flow of KEUR 7,799 achieved (+8.5%)
• • Liquid funds amount to KEUR 26,145 (+8.9%)

Sales by divisions

	01/01/ - 09/30/14	01/01/ - 09/30/13	∆ IN %	07/01/ - 09/30/14	07/01/ - 09/30/13	∆ IN %
	KEUR	KEUR		KEUR	KEUR
Healthcare Software	49,883	45,998	8.4	16,281	15,545	4.7
Healthcare Service	6,468	6,239	3.7	2,247	2,207	1.8
Total	56,351	52,237	7.9	18,528	17,752	4.4

Sales by regions

	01/01/ - 09/30/14	01/01/ - 09/30/13	∆ IN %	07/01/ - 09/30/14	07/01/ - 09/30/13	∆ IN %
	KEUR	KEUR		KEUR	KEUR
Germany	33,650	29,864	12.7	11,274	9,136	23.4
Switzerland	19,039	17,255	10.3	6,549	6,051	8.2
Austria	1,182	1,284	-7.9	305	665	-54.1
Rest of world / USA	2,480	3,834	-35.3	400	1,900	-78.9
Total	56,351	52,237	7.9	18,528	17,752	4.4

Staff

NEXUS Group employed a total of 625 people (Q3-2013: 616 employees) as of 30 September 2014. The great majority of the employees (563) work in the Healthcare Software segment (Q3-2013: 551). The Health Care Service segment employed 62 people (Q3 2013: 65).

innovative software-solutuion "MORE THAN JUST A FEW APPS": NEXUS / MOBILE

NEXUS has developed a comprehensive mobile concept for NEXUS / HIS, which goes far beyond a simple app development.

"We are making your NEXUS / HIS completely mobile!"

This is an attractive promise for our customers in their daily work: not to have to search for and carry around any paper files, not to lack any information, and not to have to make any entries subsequently on a stationary PC. Instead, information is provided directly at patient´s on a tablet or smartphone. X-rays, laboratory values and even complete case histories are available mobile. Changes in patient conditions can be entered and checked without loss of time or having to get to a PC. You can submit or release orders to service facilities immediately as well as prescribe drugs and have them administered. This means that medical and nursing processes can be optimized greatly and unproductive times can be avoided.

In order to keep this promise in actual practice, NEXUS has developed a comprehensive mobile concept. In this concept, the aspects of application design ("app development"), management (app releases/terminals), and safety (communication and authorizations) are considered to the same extent. This is a closed system, which enables continual enhancement of the mobile infrastructure. The core components are:

• • Mobile device management: mobile devices and app authorizations are managed uniformly throughout a hospital.
• • Hospital app-store: apps are provided to users and updated automatically in an app store. The app store contains numerous apps, which support medical and nursing processes.
• • Hospital apps: users can install the apps required on their terminals. Updates, data connections and synchronization are handled automatically.
• • NEXUS / MOBILE: All NEXUS / APPS run on a uniform, intuitively operable interface, the standard elements of which are used repeatedly on all apps.
• • Security Gateway: Internal and external hospital communication is secured by our gateway. The gateway also handles online communication with NEXUS / HIS and offline synchronization.

Only interaction of the individual technical components and flexibility in app development enable an integrated mobile strategy for a complete hospital.

NEXUS Company information and Outlook

Chances and Risks

Please refer to the explanations in the annual report of 31 December 2013 for information about the essential chances and risks in the development of NEXUS Group. There have been no essential changes in the meantime.

Outlook: Next Growth Steps and New Challenges

We are very satisfied with the results of the first three quarters 2014. We were able to continue the positive development of the past years unabated. Sales increases of 8.0% and an increase in EBIT of 8% are very pleasing results. In spite of the outstanding rates of increase of the previous years, we are succeeding in improving our figures even more with good products and strongly motivated employees.

In a demanding competitive environment, we have laid the basis for future growth steps at the same time. Thanks to investments in new products, upfront project work and last but not least company acquisitions, we have made preparations for the next steps in our development process. We are going to use the current year to initiate further measures.

We are thereby using the chances of the ongoing concentration process, but also see the risks associated with the takeovers and new developments. The orientation of the Group to its new size and additional complexity will challenge the organization. Our goals remain the same in this context. We want to growth further profitably and continue our success story of many years. Innovations and strong customer focus are integral components of this goal in the same way as the integration of new companies and regions into the NEXUS Group.

Consequently, we are approaching the new tasks with an equal measure of confidence and respect. The strong motivation of our team will help to master the challenges of the upcoming months.

Accounting and Valuation Methods

This interim report from the NEXUS Group of 30 September 2014 has been prepared in keeping with the International Financial Reporting Standards (IFRS) as they are applied in the EU. The interpretations of the International Financial Reporting Interpretation Committee (IFRIC) have been taken into account.

The regulations of IAS 34 were observed in the interim report of 30 September 2014. This refers to a summarized report, which does not contain all information of an IFRS Group Financial Statement, and consequently this report should be read in connection with the Appendix of the Group Financial Statement 2013. The same accounting and valuation methods were used in the Group Financial Statement for the business year 2013.

	Number of stock owned	Number of options
Director´s Holdings Supervisory Board
Dr. jur. Hans-Joachim König	101.239 Prev. year (101.239)	0 Prev. year (0)
Prof. Dr. Alexander Pocsay	121.500 Prev. year (121.500)	0 Prev. year (0)
Erwin Hauser	15.000 Prev. year (15.000)	0 Prev. year (0)
Diplom-oec. Matthias Gaebler	0 Prev. year (0)	0 Prev. year (0)
Diplom-Betriebswirt (FH) Wolfgang Dörflinger	0 Prev. year (0)	0 Prev. year (0)
Prof. Dr. Ulrich Krystek	0 Prev. year (0)	0 Prev. year (0)
Executive Board
Dr. Ingo Behrendt, Dipl. Inf. Wiss. (MBA)	112.000 Prev. year (112.000)	0 Prev. year (0)
Ralf Heilig Dipl. Betriebswirt (FH), (MBA)	135.350 Prev. year (135.350)	0 Prev. year (0)
Edgar Kuner Dipl.-Ingenieur	248.051 Prev. year (248.051)	0 Prev. year (0)

NEXUSin the Environment of the FinanCial and Health markets

Investor Relations

11/10/14 Quarterly Report Q3 / 2014

Following a stock price leap to €10.95 at the end of 2013, NEXUS shares started the year 2014 at an initially listed price of €10.93. The stocks reached a year-low at € €10.38 in April. The highest price of this year was reached with a closing price in XETRA of € €14.45 on 17 February 2014. The price is currently hovering around €12.00-13.00.

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12/03/ - 12/05/14 DIVI-Congress on Intensive Care and

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1. Joint Annual Meeting the DGNR & DGNKN, Singen

Frankfurt Stock Exchange stock price (1-year period)

facts and figures group P+L accounts as of 09/30/2014 and 09/30/2013 (IFRS)

Consolidated Profit and Loss Account	07/01/ - 09/30/14	07/01/ - 09/30/13	01/01/ - 09/30/14	01/01/ - 09/30/13
	KEUR	KEUR	KEUR	KEUR
Revenue	18,528	17,752	56,351	52,237
Other capitalized company work	946	1,306	3,045	3,145
Other operating income	704	174	1,258	730
Cost of materials	3,442	3,768	10,400	10,368
Personnel expenses	10,700	9,108	31,993	28,336
Depreciation and amortization of fixed intangible and tangible assets	1,587	1,961	4,904	5,191
Other operating expenses	2,896	2,892	8,223	7,464
Operating Income	1,553	1,504	5,134	4,754
Expenses from associated companies	49	-1	49	0
Interest and similar income	26	30	130	149
Interest payable and other similar charges	5	-43	28	29
Profit before	1,623	1,575	5,285	4,873
Income taxes	-37	-216	3	-239
Period result	1,660	1,791	5,282	5,112
The result for the period attributable to: - Shareholders of NEXUS AG - Non-controlling shareholders	1,854 -194	1,978 -186	5,515 -233	5,493 -380
Period result per share in KEUR
Weighted Average of Issued Shares in Circulation (in Thousands) - simple - diluted	15,069 0.12 0.12	15,064 0.11 0.11	15,069 0.37 0.37	15,064 0.36 0.36

Consolidated Profit and Loss of 09/30/2014 and 09/30/2013

Consolidated Profit and Loss Account in KEUR	07/01/ - 09/30/14	07/01/ - 09/30/13	01/01/ - 09/30/14	01/01/ - 09/30/13
Remaining Period result	1,660	1,791	5,282	5,112
Actuarial profits and losses (after taxes on profit)	-439	-39	-437	-63
Differences from the conversion of foreign currency	430	113	595	-270
Market value changes from assets available for sale (after taxes on profit)	-9	74	158	-333
Other overall Result	1,651	1,865	5,440	4,779
Overall Result of ther Period
Of the period result, attributed to:
- Stockholders of NEXUS AG	1,711	1,981	5,673	5,159
- Minority interests	-60	-116	-233	-380

Facts and Figures Balance sheet as of 09/30/2014 and 12/31/2013 (IFRS)

Assets	09/30/2014	12/31/2013
	KEUR	KEUR
Long-term assets
Goodwill	26,066	25,271
Other intangible assets	22,892	23,813
Fixed Assets	2,338	1,864
Shares in companies valuated at equity	43	43
Credited deferred taxes	4,053	3,697
Other financial assets	219	84
Total long-term assets	55,611	55,222
Short-term assets
Inventories	448	283
Trade receivables and other receivables	17,019	19,320
Profi t tax receivables	903	404
Other non-financial assets	1,631	1,436
Other financial assets	590	1,497
Short-term financial assets	9,190	8,142
Cash and balance in bank	16,955	15,662
Total Short-term assets	46,736	46,744
Total assets	102,347	101,966

Facts and Figures Balance sHeet as oF 09/30/2014 and 12/31/2013 (iFrs)

Liabilities and equity	09/30/2014	12/31/2013
	KEUR	KEUR
Capital and accruals
Subscribed capital	15.105	15,105
Capital reserve	25.804	25,780
Profi t carried forward	31.579	25,787
Consolidate annual surplus	5.515	7,601
Other cumulated Group result	-931	-1,088
Own shares	-286	-290
Equity capital attributable to stockholders of the parent company	76.786	72,895
Shares of non-controlling partners	-772	-526
Total Equity	76.014	72,369
Long-term debts
Pension obligations	3,294	3,371
Debited deferred taxes	3,695	2,564
Financial liabilities		43
Other fi nancial debts	4,758	2,754
Total long-term debts	11,747	8,732
Short-term debts
Deferments	1,340	916
Financial liabilities	62	152
Trade accounts payable	3,237	4,011
Liabilities from tax on profi t	912	754
Deferred revenue liability	3,910	4,344
Other non-fi nancial debts	6,866	6,462
Other fi nancial debts	3,403	4,226
Total Short-term debts	19,729	20,865
Total assets	102,481	101,966

Consolidated cash flow statement from January 1 to September 30, 2014 and 2013

Cash Flow for the period from January 1 to September 30, 2014 and 2013	2014	2013
	KEUR	KEUR
1. Cash Flow from operating activities
Group annual result before tax on income	5,285	4,873
Depreciation and amortization of intangible assets
and plant, equipment and other fixed assets	4,904	5,191
Other expenses / income with no impact on expenses / revenue	-268	-333
Increase / decrease in inventories	-164	-71
Profit / loss from disposal of long term capital	1,425	147
Profit / loss from disposal of securities	779	-81
Increase / decrease in trade payables and other liabilities that cannot be allocated to investing or financing activities	-4,030	-2,670
Paid Interest	-28	-29
Received Interest	147	167
Payments made for taxes on profit	-282	-32
Income taxes received	31	27
	7,799	7,189
2. Cash Flow from investment activities
Payments for investments in intangible assets and fixed assets	-4,521	-3,549
Purchase of companies after deduction of acquired payment means	-416	-693
Payments made / received due to investment of funds within the context of short-term fund positions	0	2,000
	-4,937	-2,242
3. Cash Flow from financing activities
Dividend payment	-1,808	-1,657
Payments due to taking short-term loans	53	0
	-1,755	-1,657
4. Cash and cash equivalents at end of fiscal year
Cash relevant changes in cash and cash equivalents (sum of 1 + 2 + 3)	1,107	3,290
Cash and cash equivalents at beginning of fiscal year	15,467	12,521
	16,574	15,811
5. Comp osition of cash and cash equivalents
Liquid Funds	16,955	15,873
Bank liabilities due on demand	-381	-62
	16,574	15,811

¹⁵ Group statement of changes in equity from 09/30/2014 until 09/31/2013 (IFRS)

	Authorized capital	Capital reserves	Other provisions	Equity diference from curency conversion	Validation eserve for financial instruments	Pension provisions	Profit carried forware	Anual net profit	Own s hares	stockh, of parent company Equity cap. attributable to	Shares of non-controlling partners	Equity captial total
	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR	KEUR
Consolidated equity as of 01/01/2013	15,105	25,757	1,076	-310	-1,627	22,398	6,128	-295	68,232	-118	68,114	6,353
Posting of consolidated surplus 2012 in the Group profit carried forward						6,128	-6,128		0		0
Recognized directly in other comprehensive income			-270		-62				-332		-332
Other comprehensive income after taxes 09/30/2013	0	0	-270	0	-62	6,128	0	0	-332	0	-332	0
Group consolidated profit 2013							5,112		5,112	-380	4,732
Overal Result of Period	0	0	-270	0	-62	6,128	5,112	0	4,780	-380	4,400	0
Dividend payment						-1,657			-1,657		-1,657
Purchase / sale of own shares		14				25		3	17		-234
Consolidated equity as of 09/30/2013	15,105	25,771	806	-310	-1,690	26,869	5,112	-292	71,494	-489	71,005	6,353
Consolidated equity as of 01/01/2014	15,105	25,780	504	0	-1,592	25,787	7,601	-290	72,895	-526	72,369	6,353
posting of consolidated surplus 2013 in the Group profi t carried forward						7,601	-7,601		0		0
Actuarial profi ts and losses					-419				-419	0	-419
Deferred taxes entered in other comprehensive ncome					-18				-18		-18
Currency difference			595						595		595
Other comprehensive income after taxes	0	0	595	0	-437	7,601	-7,601	0	158	0	158	0
Consolidated surplus 2014							5,515		5,515	-248	5,267
Overal Result of Period	0	0	595	0	-437	7,601	5,515	0	5,673	-248	5,425	0
Dividend payment						-1,808			-1,808		-1,808
Purchase / sale of own shares		24						4	28		28
Consolidated equity 09/30/2014	15,105	25,804	1,099	0	-2,030	31,579	5,515	-286	76,786	-772	76,013	6,353

Declaration according to § 37y No. 1 WpHG

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view ot the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description ot the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

Villingen-Schwenningen, November 10, 2014

NEXUS AG Executive Board

NEXUS AG, Auf der Steig 6, D-78052 Villingen-Schwenningen Telefon +49 (0)7721 8482 -0, Fax +49 (0)7721 8482-311 www.nexus-ag.de, info@nexus-ag.de