CENIT AG AD HOC ANNOUNCEMENT: Weaker Q4 2022 expected - adjusted forecast for fiscal year 2022 despite the strong sales growth in the fiscal year so far

Release of inside information pursuant to Article 17 of Regulation (EU) No. 596/2014

24.11.2022

Stuttgart, November 24, 2022 - CENIT AG publishes an update for the fourth quarter of 2022 and adjusts the forecast for the fiscal year 2022, despite the significant sales growth of 22% in the 3rd quarter, after it is no longer expected that the generally deteriorated environment in the markets, relevant for CENIT, will recover significantly in the short-term. The reasons lie primarily in the increasing reluctance of medium-sized industrial companies to make major investments in digitization this year. However, these developments make it considerably more difficult to forecast the usual order placement at the end of the fiscal year. In addition, the expected major projects in the defense sector are no longer expected in fiscal year 2022, as the respective governments have not yet made any decisions on awarding contracts to the relevant companies. This makes a forecast for the 4th quarter, which is significant for CENIT, very difficult.

In addition, CENIT's result will be burdened by extraordinary expenses for changes in the area of human resources amounting to around EUR 1 million, financial difficulties at customers, necessary adjustments within the IT infrastructure and funding grants not received in this fiscal year. A significant improvement in earnings is expected for the 2023 financial year.

The company's outlook for the fiscal year 2022 from the beginning of May included the macroeconomic as well as geopolitical challenges known at that time, which initially contributed to an improved order situation at CENIT and also showed first signs of a possible recovery. However, the management now assumes a hesitancy to invest on the part of medium-sized companies, which will at least have a greater impact on the fourth quarter of the business year than initially expected. Overall, however, the management sees a positive investment mood for digitization projects in the markets of relevance for CENIT for the coming fiscal year.

As the company no longer expects the general market environment to significantly recover in the short term, it is adjusting its forecast for the fiscal year 2022. For the fiscal year 2022, the Management Board now expects a sales level of EUR 162 million to EUR 166 million (previously: EUR 170 million) and EBIT of EUR 6.2 million to EUR 6.8 million (previously: EUR 9 million).