Stuttgart, March 31^st, 2020 - 2019 was a year with many challenges for CENIT. CENIT Group slightly exceeded the planned sales target of 170,000 EUR k by 1% to 171,711 EUR k. Compared to the plan of around 10,000 EUR k, an EBIT of only 9,195 EUR k was achieved, which represents a difference of -8% against the plan. This is primarily due to the failure to achieve the targets set for the sale of own and third-party software. Although sales in this area increased by around 6% compared to the previous year, they were still below plan.

During the 2019 business year, CENIT group generated sales revenues of EUR k 171,711 (prior year: EUR k 169,990/1.0%). Sales of CENIT's proprietary software increased by 5.9% at EUR k 16,355 compared to EUR k 15,449. Sales revenues in CENITs consulting and services segment totaled EUR k 49,486 and thus declined by -0.6% on-year (2018: EUR k 49,776). Sales of third-party software increased by around 1.3% to EUR k 105,628 (2018: EUR k 104,299).

The gross profit (operating output less cost of materials) amounted to EUR k 86,797 (2018: EUR k 87,632), representing a decrease of -1.0%.

CENIT achieved EBITDA in amount of EUR k 15,238 (2018: EUR k 11,948/27.5%) and EBIT of EUR k 9,195 (2018: EUR k 9,028/1.8%). Earnings per share were EUR 0.82 EUR (2018: 0.71 EUR).

Orders Development

During the 2019 business year, orders received by CENIT Group totaled EUR k 165,545 (2018: EUR k 177,902). Orders in hand on December 31, 2019 amounted to EUR k 47,223 (2018: EUR k 53,389).

Asset and Financial Situation

On the balance-sheet date, the company's equity capital was EUR k 40,940 (2018: EUR k 39,102), representing an equity ratio of 45.8% (2018: 49.4%). On the balance-sheet date, bank deposits and liquid assets totaled EUR k 18,461 (2018: EUR k 18,041). The operative cash flow was EUR k 11,682 (2018: EUR k 9,617). In 2019, cash flow was influenced by a dividend payment to shareholders in the total amount of EUR k 5,021, returns of leasing liabilities in amount of EUR k 3,357 and investments in the amount of EUR k 2,759.

Employees

On December 31^st, 2019, CENIT group employed 737 (2018: 757). Consolidated personnel expenditures during the reporting period were EUR k 60,300 (2018: EUR k 58,571). CENIT currently provides training for 54 young professionals in a variety of occupations. Trainees include informatics and economics students from the Dual University of Baden-Württemberg (DHBW) and vocational trainees in the field of information technology.

Annual General Meeting and Dividend

Given the background of the COVID-19 pandemic, the Management and Supervisory Boards of CENIT AG have decided that the Annual General Meeting planned for the middle of May 2020 will take place at a later date. A new date has not yet been set; as soon as this is the case, the company will announce it and make it public in due time.

The Management and Supervisory Boards will propose to the Annual General Meeting that a dividend of EUR 0.45 per share, be distributed from CENIT AG's unappropriated profit in the amount of EUR 3,765 k.

Outlook

An equity ratio of around 46% places CENIT on very secure footing. This lets CENIT act as a strong and reliable partner to its customers.

The forecast for the 2020 business year is based on sales at the previous year's level of around EUR 170,000 k and EBIT of EUR 9,000 k. Any possible effects caused by the Coronavirus were not taken into account, since we are unable to estimate them at this early stage.

The complete 2019 Annual Report is available in a German and English version on the CENIT homepage: /reports.

About CENIT:
CENIT is your partner for successful digital transformation. With a broad solutions and services portfolio, CENIT enables clients to optimize their horizontal and vertical business processes. Our solutions are based on innovative technologies in: product lifecycle management, the digital factory and enterprise information management. With interdisciplinary knowledge of the processes involved and their considerable expertise in the field, CENIT consultants provide customers with end-to-end advice to ensure that solutions are implemented with an understanding of the entire value chain. With a holistic approach and based on trusted partnerships, CENIT takes responsibility for solutions on behalf of our clients. From the initial consultation to the introduction of innovative IT solutions, right through to ensuring a cost-effective operation. The CENIT team adapts to each client, taking a practical approach, which enables measurable, operational optimizations. CENIT has been helping prestigious customers in key industries to gain competitive advantages for 30 years! CENIT has around 800 employees worldwide who work with customers from: automotive, aerospace, industrial equipment, tool and mold manufacturing, financial services, and trade and consumer products industries.

Please send queries to:
CENIT AG
Investor Relations
Tanja Marinovic
Industriestrasse 52-54, D-70565 Stuttgart
Tel.:
Fax: 20
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Additional Information:
This press/ad hoc report may contain future-oriented statements regarding the business, financial and earnings situation of, as well as profit projections for, CENIT. Such future-oriented statements are characterized by terms or statements such as "the company may" or "the company will", "expects", "assumes", "is considering", "intends to", "plans", "believes", "will continue to" and/or "estimates", as well as similar terms and statements. Such statements contain no guarantee that the projections will in fact be achieved. Rather, such statements involve risks, imponderables and assumptions that are difficult to predict and, in addition, are based on assumptions as to future events which may prove to be incorrect. For this reason, actual events may diverge significantly from the assumptions contained in the respective statement. In a future-oriented statement by which CENIT expresses expectations or assumptions with regard to future events, these expectations or assumptions are made in good faith, and it shall be assumed that they are made upon an appropriate basis; however, it cannot be guaranteed that the said statements, expectations or assumptions shall indeed occur, or be attained or fulfilled. The actual operative result may diverge significantly from such future-oriented statements and is subject to certain risks. In this regard, please refer to the Business Report of CENIT AG.