DGAP-News: Mensch und Maschine Software SE / Key word(s): Miscellaneous Mensch und Maschine Software SE: 12.09.2011 / 12:58 --------------------------------------------------------------------- M+M continues 'Market Offensive' in Europe - Distribution business will be sold for approx. EUR 25 million - New segment 'VAR Europe' starting from 2012 - Double digit midterm target for group EBITDA margin Wessling, September 12, 2011 - Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, is now continuing in Europe the ,Market Offensive', which has been successful in the German speaking area since 2009, transitioning from Distribution to a Value Added Reselling business, i.e. from indirect to direct sales, in all countries. M+M therefore has entered into a purchase agreement with the Tech Data group (NASDAQ: TECD) acquiring the complete Distribution business from the M+M group. The agreed purchase price is approx. EUR 25 million, with a fixed part of about 2/3 which will be paid in 2011/2012 and a variable part of about 1/3 paid out depending on business development during the next three years. The international subsidiaries in France, Italy, UK, Belgium, Poland and Romania will be kept in the M+M group with approx. 70 of the current 113 employees, serving as the base for building up the VAR business, which will be partly supplemented by acquisition of former reselling partners as in the German speaking countries. For 2012 the new segment ,VAR Europe' is planning sales of EUR 30-40 million, which shall be roughly doubled by 2015, with a 10% target EBITDA margin as in the German speaking market. Including acquisitions, the headcount is expected to reach around 150 by end of 2012 and grow to approx. 200 by 2015. The number of employees in the group will then be well above 800 (June 30, 2011: 639). After closing the contract, which is dependent on various conditions including antitrust consent, which is expected for the end of October, and after completing and handing over the distribution business to the purchaser, M+M's equity ratio will rise to approx. 40% (Dec 31, 2010: 26.4%), with net bank debt decreasing to around zero (Dec 31, 2010: EUR 11.9 mln). The non-recurring profit from the sale of the distribution business in 2011 is expected to be around 20 Cent per share, increasing the EPS target to 40-50 Cent (PY: -3). The planned dividend doubling to 20 Cent thus can be confirmed. M+M CEO Adi Drotleff looks forward to the further business model development: ,Through the sale of our Distribution activities and by rolling out the VAR business to Europe, we are rigorously transitioning our business model towards higher value and margins. With the segments Software, VAR DACH and VAR Europe, the group gross yield, which back in 2008 had been at 25%, will have doubled to approx. 50% as early as 2012, and the EBITDA margin, which historically never had been higher than the 5.8% achieved in 2008, is targeted to be sustainably double digit beginning 2013. Our midterm goal for 2014 is to achieve gross margin north of EUR 100 million (2010: 66.2), EBITDA in the range of EUR 20 to 25 million and EPS above 75 Cent, of which due to the debt-free balance sheet more than half can be paid out.' Drotleff adds: ,The particular beauty of exiting from Distribution first is that, other than in the German speaking countries, we do not expect negative operating margins during transition to the VAR business, as we can support the business during that phase from the purchase price rates until it achieves the target margin from its own activities. Thus the new segment will provide a positive EBITDA contribution from the beginning.' End of Corporate News --------------------------------------------------------------------- 12.09.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Mensch und Maschine Software SE Argelsrieder Feld 5 82234 Wessling Germany 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: Freiverkehr in Berlin, Düsseldorf, Hamburg, München (m:access), Stuttgart; Open Market in Frankfurt End of News DGAP News-Service --------------------------------------------------------------------- 138940 12.09.2011
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