Mensch und Maschine Software SE / Quarter Results 27.10.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Good profit growth in third quarter - Q3: Operating profit EBITA +20% / Net profit +26% - Strong Q4 expected with 50% plus in operating profit Wessling, October 27, 2008 With a solid third quarter, Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company listed on the Prime Standard, remained on a profitable growth path after the first nine months of fiscal year 2008. Sales accelerated to EUR 170.8 mln (PY: 159.4 / +7%), operating profit EBITA was EUR 7.73 mln (PY: 7.24 / +7%), while net profit excluding minority shareholdings came in at EUR 4.62 mln (PY: 4.19 / +11%). Higher growth in local currencies After adjustment of currency exchange effects, negatively impacting group sales, accounted in Euro, by nearly five million, growth in local currencies amounted to approx. 10 percent. In particular, this was due to the British Pound weakness, as approx. one fifth of M+M group sales are achieved in UK. On the operating profit level, the negative currency impact is smaller, amounting to approx. half a million Euro, as most of the expenses are accounted in local currencies, resulting in approx. 14% operating profit growth after currency adjustment. Q3 with disproportionate profit growth The sales contribution of third quarter was EUR 51.20 mln (PY: 49.23), representing a moderate 4% increase (7% after currency adjustment). Due to a good margin mix, EBITA climbed disproportionately to EUR 1.69 mln (PY: 1.42 / +20%), with net profit excluding minority shareholdings increasing by 26% to EUR 0.91 mln (PY: 0.72). M+M software still driving growth As seen in the second quarter, M+Ms own software business continued to be the main growth driver during the summer months at +18% in Q3 and +14% for nine months. German business staying strong At 14% growth rate during the first three quarters, the domestic business contributed significantly better to growth, although the nominal 4.5% rate in international business was heavily loaded by currency volatility, doubling to approx. 9% after adjustment of these effects. In the third quarter, domestic and international sales moved head to head at approx. 7% after currency adjustment. Very positive balance sheet development The operating cashflow as of Sept 30, 2008 reached a new record at EUR 12.69 mln (Sep 30, 2007: 12.29). Net bank debt decreased to EUR 10.9 mln (Dec 31, 2007: 16.0). Additionally, the remaining amount of EUR 1.1 mln of the 2004 convertible loan was paid back in July. Shareholders equity climbed to EUR 26.4 mln (Dec 31, 2007: 24.4). The capital ratio was increased to 32.1% (Dec 31, 2007: 30.3%). Sale of ecscad technology on Oct 15, 2008 On August 20, we announced the sale of our electrical engineering software technology ecscad to the Autodesk group. The agreed purchase price represents approximately 2.5 times the annual sales generated by ecscad in the past. This disinvestment, closed on October 15, generated approximately EUR 2.5 mln net cash inflow for the M+M group ex minority shares and escrow. The non-recurring disinvestment profit before taxes in Q4/2008 is expected to be in the range of EUR 2.0 mln. As the M+M group will continue to actively market ecscad as an Autodesk product, it does therefore not expect a material impact on future sales and operating earnings as a result of this transaction. Strong Q4 expected with 50% plus in operating profit For Q4/2008, M+M actually expects sales amounting to EUR 64.3 mln. Compared to the relatively weak EUR 53.6 mln sales in Q4/2007, this goal represents approx. 20% growth. For the full fiscal year, the resulting sales target is approx. EUR 235 mln (PY: 212.9 / +10%), representing 13% growth in local currencies. The expected operating profit EBITA in Q4 is approx. EUR 4.3 mln (PY: 2.8). In line with the sales level, the relatively weak quarter in the previous year results in a disproportionate growth opportunity of more than 50%. With Q4 being on target, the 2008 EBITA would be EUR 12 mln, representing +20%. While sales and operating profit targets for 2008 are slightly lower than the original EUR 240 mln and EUR 13 mln, mainly due to currency effects, the original EUR 0.62 (PY: 0.47 / +32%) target for net profit per share could even be slightly exceeded due to the ecscad disinvestment. DGAP 27.10.2008 --------------------------------------------------------------------------- Language: English Issuer: Mensch und Maschine Software SE Argelsrieder Feld 5 82234 Wessling Deutschland Phone: +49 (0)815 3933-0 Fax: +49 (0)815 3933-100 E-mail: investor-relations@mum.de Internet: www.mum.de ISIN: DE0006580806 WKN: 658 080 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Mensch und Maschine Software SE discloses nine months figures
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