DGAP-Adhoc: Mensch und Maschine Software SE discloses 2008 preliminary figures

Mensch und Maschine Software SE / Preliminary Results

03.02.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------

Acceptable Q4 helps respectable annual results
- Sales, operating and net profit slightly above previous year
- Very positive balance sheet development due to record cash flow
- Immediate shutdown of single loss-making division

Wessling, February 3, 2009 – Mensch und Maschine Software SE (MUM - ISIN
DE0006580806), a CAD/CAM specialist company listed on the Prime Standard,
achieved annual sales amounting to EUR 223.2 mln (PY: 212.9 / +5%) with an
average 387 employees, according to the preliminary 2008 figures now
available. Group sales were negatively impacted by more than six million
Euro, mainly from the British Pound exchange rate. In local currencies the
growth was approx. 8 percent.

Growth drivers with rates around 10 percent and more were the German
speaking area, Benelux and Scandinavia, as well as M+M’s self developed
software. In spite of the economic downturn, even the UK revenue climbed by
nearly four percent in local currency. France and Italy came in on about
the previous year’s level, while Poland was the only country with sales
falling by about 5%. However, M+M had more than doubled sales in Poland in
the previous two years. The Romanian subsidiary, which had started in
Q1/2008, contributed over 6 Million Euro sales, exactly compensating for
the negative impact from currency exchange rates, which means that the
nominal +5% represents the organic growth rate in 2008.

With 53.6% share of annual sales and a +9% growth rate (approx. +12% in
local currencies), the first half year of 2008 was significantly stronger
than the second six months, which just saw a small plus amounting to +1%
(approx. +4% in local currencies). In absolute numbers, the first quarter’s
EUR 70.0 mln sales still marked a new company record, while the three
following quarters came in with nearly equal sales amounting to EUR 52.6 /
51.2 / 52.4 mln, respectively. Growth compared to the previous year in Q2
reached a maximum +20%, falling back to +4% and -2% (approx. +7% and +1% in
local currencies) in Q3 and Q4, respectively.

Operating profit EBITA – subject to the not yet finalized audit – amounted
to approx. EUR 10.3 mln (PY: 10.0 / +3%), also including significant
negative impact from GBP exchange rate. All operating group units including
Romania were profitable, with the single exception of Creata GmbH, taken
over just one year ago, which lost approx. EUR 1.35 mln. To avoid further
charges, M+M is stopping new cash injections with immediate effect and
entirely writes off the engagement. This causes additional non-cash charges
amounting to approx. 7 Cents per share on 2008 net earnings, but will
improve 2009 and future results by approx. 10 Cent per share (cash).

This negative non-recurring effect is opposed by the earnings from the ECS
sale, where the currency exchange fluctuations during the past year
occurred to create a positive impact for M+M, as the sales currency, USD,
at the closing date mid October 2008 noted significantly higher than
calculated. Together with an improved financial result and a low tax rate
due to the existing tax loss carryovers, net earnings are expected to come
in slightly better than in the previous year, probably resulting in
earnings per share on previous year’s EUR 0.47 level, in spite of a 6%
increase in the number of shares.

Altogether, the fourth quarter with operating earnings EBITA amounting to
approx. EUR 2.6 mln (PY: 2.8 / -7%) and approx. 10 Cents (PY: 11) earnings
per share was acceptable, when taking into account the increasingly rapid
aggravated market environment.

The balance sheet development, however, was more than just acceptable. Due
to a record operating cash flow amounting to more than 70 Cents per share,
net bank debt decreased to approx. EUR 10.7 mln (PY: 16.0) as of Dec 31,
2008, being lower than EBITDA amounting to approx. EUR 11.7 mln. In
addition to the EUR 2.8 mln dividend payment, the 2004 convertible loan in
the amount of EUR 1.1 mln was paid back, and approx. EUR 0.5 mln was
invested in the share buyback program.

Shareholders’ equity at Dec 31, 2008, increased to approx. EUR 27.8 mln
(PY: 24.4 / +14%), capital ratio was approx. 32.5% (PY: 30.3%). Though the
Return on Equity ROE did not quite reach the previous year’s 25.2% peak, it
could be kept at a still very respectable 23 percent.

M+M CEO and major shareholder Adi Drotleff: 'As we already pulled the cost
break internally during the good Q1, we were able to compensate the
softening of business during the second half year relatively well, allowing
us to add another baby record to the great record year 2007. At the moment
we are further streamlining expenses, without risking our substance, to
lower our break-even point, as 2009 will definitely not be an easy ride. We
are expecting Q1 to be more or less on the Q4 level, maybe followed by an
even slower Q2. The good news is that we are very well positioned after
several boom years in a row, and the newly started market offensive makes
our business model even more crisis-proof. Therefore I am seeing some
chance that we may begin to pick up and see sales and earnings increase in
the second half year. In the long term, I am absolutely convinced that we
will continue the average sales growth of nearly 15% which we had during
the past 10 years while increasing the profit margin, and further
strengthening our financial base. Therefore I will suggest to the
Administrative Board not to increase the dividend for 2008 as intended, but
keep it at 20 Cents, additionally retaining approx. EUR 0.7 mln. As M+M’s
dividend is tax free, this still represents a net dividend return
significantly higher than 5 percent.'
DGAP 03.02.2009 
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------