CENIT : Quarterly report Q2 | 2023

	CENIT GROUP - AT A GLANCE
	1 JANUARY TO 30 JUNE 2023 (UNAUDITED)
	in EUR k		Q2 2023			Q2 2022	Change		H1 2023		H1 2022	Change
				in %			in %
	Key data
	Revenue		44,054			38,514	14.4		87,470		73,912	18.3
	Third-party software		22,475			22,181	1.3		44,754		43,654	2.5
	from licences		1,293			1,959	-34.0		2,471		3,207	-22.9
	from recurring sales*		21,182			20,221	4.8		42,284		40,447	4.5
	Proprietary software		4,287			4,358	-1.6		7,637		7,985	-4.4
	from licences		1,208			1,528	-20.9		1,570		2,320	-32.3
	from recurring sales*		3,079			2,829	8.9		6,067		5,665	7.1
	Consulting and services		17,262			11,959	44.3		35,008		22,231	57.5
	Merchandise		30			16	80.4		71		42	67.5
	EBITDA		4,173			2,654	57.3		5,746		3,378	70.1
	EBIT		2,614			1,507	73.5		2,620		1,119	134.1
	as % of sales		5.93			3.91	51.6		3.00		1.51	97.9
	Net income		1,864			1,065	75.0		1,791		552	224.5
	per share in Cents
	(basic / undiluted after minority		21.1			11.8	78.6		18.5		4.6	302.2
	interests)
	Cash flow data
	Cash flow from current business		1,610			-1,916	>100.0		10,304		9,280	11.0
	activities
	Cash flow from		-675			-28,076	97.6		-2,864		-28,234	89.9
	investment activity
	Cash flow from		-5,966			15,940	>-100.0		-7,747		15,191	>-100.0
	financing activity
	Balance sheet ratios								30/06/		31/12/	Change
								2023		2022	in %
	Liquid assets								19,600		19,914	-1.6
	Net liquidity								-10,799		-13,775	21.6
	Total assets								129,350		127,037	1.8
	Equity ratio in %								32.8		35.3	-7.0
	Employees on reporting date								862		861	0.0
	Key share ratios
	Closing share price (Xetra) in EUR								12.90		12.20	5.7
	Market capitalization										102,086	5.7
							107,944

*Subscription and software maintenance contracts

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Interim Management Report

Report on assets and financial and earnings situation

Continued strong consulting and service business (vs. previous year: +57.5%) and increased license

sales define sales growth (vs previous year: +EUR 13,558 k, +18.3%) in the first half of 2023

The consulting and service business (vs. previous year: +72.8%), which was already growing strongly in

the first quarter, continued to do so extremely in the second quarter (vs. previous year: +44.3%) and was also boosted by a significant increase in the sale of recurring software licenses (vs previous year: +4.8%).

Against the mentioned background and taking into account increased other operating income (vs. previous year: EUR +710 k), a lower cost of materials ratio due to the product mix (vs. previous year: -5.39 percentage points), however higher operating expenses as a whole (vs. previous year: EUR +12,585 k), consolidated EBIT improved by 134.1% to EUR 2,620 k. The order backlog increased by 18.4% to 59,260 TEUR (previous year 50,050 TEUR).

Acquisition of MIP Management Informations Partner Gesellschaft für EDV - Beratung und Management -Training mbh (MIP) to enhance expertise in the areas of data management and analysis.

As of Janaury 31, 2023, CENIT AG acquired 100% in MIP. With sales of EUR 1,361 k and an EBIT of EUR 181 k, as of June 30, 2023, MIP contributes to the success of CENIT Group.

Sale of 100% of shares in CENIT Japan K.K. and a simultaneous expansion of distribution in the Japa- nese robotics market

With effect from June 01, 2023, CENIT AG has sold 100% of the shares in CENIT Japan K.K. Since then, the Japanese subsidiary has been part of Argo Graphics Inc. (Tokyo) and now acts as a master reseller for CENIT's FASTSUITE E2 software, thus strengthening CENIT's presence in the Japanese robotics mar- ket. In addition, the deconsolidation effect of EUR 871 k had a positive impact on EBIT.

Segments at a glance

The performance of the two segments PLM and EIM for the first half of 2023 was as follows: EIM was able to significantly increase external sales by +108.5% compared to the same period of the previous year - in particular due to inorganic factors - and generate a segment EBIT of EUR 656 k. The PLM area was also able to increase its segment sales by +6.1%, and did improve the segment EBIT disproportionally by EUR 1,474 k to EUR 1,964 k.

In addition to the earning power, the continued positive operating cash flow contributes to the strength of the CENIT Group.

The continued positive cash flow from operating activities (EUR 10,304 k; previous year: EUR 9,280 k) mainly results from a positive change in working capital (EUR 5,940 k) and the decrease in other non- current assets (EUR 1,147 k). The repayment of the acquisition loan of EUR -1,650 k, the dividend paid of EUR -4,184 k and payments for lease liabilities of EUR -1,913 k resulted in a cash flow from financing activities of EUR -7.747 k. The cash flow from investing activities (EUR -2.864 k) is mainly due to the acquisition of shares in fully consolidated companies in the amount of EUR -1,735 k and investments in tangible and intangible assets (EUR -1,053 k). As a result, cash and cash equivalents as of June 30, 2023 decreased by EUR 314 k to EUR 19,600 k compared to December 31, 2022.

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 k) and the repayment of the acquisition loan (EUR -1,650 k).

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The balance sheet total increased by EUR 2,313 k compared to December 31, 2022. On the assets side, this results mainly from the increase in intangible assets due to the capitalisation of the provisionally determined goodwill (EUR 2,789 k) from the acquisition of MIP on January 31, 2023. On the liabilities side, the increase in the balance sheet total is mainly due to the higher short-term contract liabilities from software maintenance contracts during the year (EUR +11,510 k), which is partially offset by the decrease in trade payables (EUR -4,841 k) and the long-term lease liability (EUR -1,199 k).

Events after the end of the interim reporting period

Effective July 6, 2023, the Berlin-based PI Informatik GmbH became a new member of the CENIT Group. PI Informatik is established among customers from industry, logistics and the public sector as a specialist for complex software developments, SAP consulting services and as a long-standing partner for managed services and IT infrastructure solutions. With PI Informatik's expertise, CENIT is able to complement the CENIT Group's product and solution portfolio at key points. The operational cooperation in projects strengthens the ability to deliver and the innovative power in the field of process digitaliza- tion. In addition, the merger opens up access to new customer, industry and partner segments. PI Informatik employs around 30 people and generates annual sales of approximately EUR 3.5 million.

With effect from July 31, 2023, CENIT has acquired 60% of the shares in an SAP consulting company in the D-A-CH region. The comprehensive SAP expertise and the focus on the energy supply, logistics, industry, trade and public sector sectors make the company a sought-after partner. With annual sales of EUR 4.0 million and 12 employees as well as a network of approx. 70 SAP consultants, the company will contribute to CENIT's success from now on, especially in Austria.

Employees

As of June 30, 2023, the CENIT Group had 862 employees (December 31, 2022: 861). CENIT strives to increase the capacity rate of its employees so that, despite the acquisitions and the resulting increase in the number of employees, an adjustment takes place at the same time.

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, 2022.

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, 2022.

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 quar- ter, 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, also due to the increased order backlog, our outlook for the CENIT Group is to reach a revenue of around EUR 180,000 k and earnings (EBIT) of around EUR 9,500 k. This forecast does not include any new acquisition effects.

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CENIT AKTIENGESELLSCHAFT, STUTTGART

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IN ACCORDANCE WITH IFRS) (UNAUDITED)

in EUR k		Q2 2023		Q2 2022		H1 2023		H1 2022
REVENUE		44,054		38,514		87,470		73,912
Other operating income		1,117		520		1,447		737
OPERATING INCOME		45,171		39,034		88,917		74,649
Cost of materials		18,073		17,528		36,147		34,525
Personnel expenses		19,097		15,514		39,737		31,163
Amortisation of intangible assets and depreciation		1,560		1,146		3,126		2.259
of property, plant and equipment
Other operating expenses		3,713		3,351		7,101		5,579
OPERATING EXPENSES		42,442		37,539		86,111		73,526
Impairments on receivables		-115		11		-186		-4
NET OPERATING INCOME (EBIT)		2,613		1,507		2,620		1,119
Interest income		-3		1		3		1
Interest expenses		285		66		535		101
NET PROFIT (LOSS) BEFORE TAXES (EBT)		2,331		1,442		2,088		1,019
Income taxes		521		377		363		467
NET INCOME CONTINUED OPERATIONS		1,810		1,065		1,725		552
Net Income/Loss discontinued operations		54		0		66		0
NET INCOME		1,864		1,065		1,791		552
Amount attributable to CENIT AG shareholders		1,750		986		1,548		387
Amount attributable to non-controlling interests		114		79		243		165
Earnings per share in cents, basic and diluted		21.1		11.8		18.5		4.6

Items that, under certain circumstances, will be reclassified under the income statement in the Future

Compensation from currency translation for for-		26		178		-26		225
eign subsidiaries
Reclassification of currency differences resulting		27		0		27		0
from deconsolidation
Other comprehensive income after taxes		53		178		1		225
Total comprehensive income		1,917		1,242		1,792		777
Amount attributable to CENIT AG shareholders		1,803		1,163		1,549		612
Amount attributable to minority shareholders		114		79		243		165

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