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+Ms 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 years 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 quarters 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 years 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 years 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+Ms 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 ---------------------------------------------------------------------------
DGAP-Adhoc: Mensch und Maschine Software SE discloses 2008 preliminary figures
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