DGAP-News: Mensch und Maschine Software SE / Key word(s):
Miscellaneous
Mensch und Maschine Software SE:
12.09.2011 / 12:58
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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
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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
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138940 12.09.2011
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