DGAP-News: Mensch und Maschine Software SE discloses nine months report


DGAP-News: Mensch und Maschine Software SE / Key word(s): 9-month figures
Mensch und Maschine Software SE discloses nine months report

24.10.2016 / 08:35
The issuer is solely responsible for the content of this announcement.

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High profit gain and strong cash flows
- Gross margin +9.7% / EBIT +46% / Net profit +79%
- Proprietary software/services driving business

Wessling, October 24, 2016 - Strong organic growth of proprietary software
and services, mainly in the CAM, BIM and PDM areas, and strict cost
discipline helped Mensch und Maschine Software SE (MUM - ISIN
DE0006580806), a CAD/CAM specialist company, to significantly increase
operating and net profit in the first 9 months of 2016.

9M sales amounted to EUR 127.59 mln (PY: 119.30 / +6.9%), with M+M Software
contributing EUR 33.45 mln (PY: 29.86 / +12%) and the VAR Business
contributing EUR 94.14 mln (PY: 89.44 / +5.3%). Gross margin climbed to a
new record EUR 67.83 mln (PY: 61.83 / +9.7%), with contributions of EUR
32.39 mln (PY: 28.46 / +14%) from Software and EUR 35.44 mln (PY: 33.37 /
+6.2%) from VAR Business, thereof EUR 19.06 mln (PY: 15.67 / +22%) from M+M
service. All in all, gross margin from proprietary software and services
grew by 16.6% to EUR 51.45 mln (PY: 44.13), making the decrease of gross
margin from Autodesk software to EUR 16.39 mln (PY: 17.69 / -7.3%) due to
the transition from licence sale to a rental model more manageable.

Operating profit EBITDA before depreciation, amortization, interest and
taxes grew to a disproportionate EUR 10.80 mln (PY: 8.92 / +21%), with EUR
7.03 mln (PY: 5.56 / +26%) coming from Software and EUR 3.77 mln (PY: 3.36
/ +12%) from the VAR Business. Due to significantly lower PPA amortisation
the EBIT rise was even higher: Group EBIT climbed to EUR 8.35 mln (PY: 5.71
/ +46%).

Net profit after minority shares jumped by 79% to EUR 4.47 mln (PY: 2.49),
or 27.4 Cents (PY: 15.5) per share. The net profit calculation is based on
an expected 35% tax rate for 2016, while the previous year was restated to
the actual 43.3% annual tax rate. The net profit includes negative currency
exchange effects on the financial result amounting to EUR -0.25 mln (PY:
+0.12). Without this effect net profit would have nearly doubled compared
to 9M/2015.

Operating cash flows were EUR 11.79 mln, a remarkable EUR 7.32 mln above
net profit. The previous year's EUR 14.96 mln included the final instalment
amounting to EUR 3 mln from the 2011 sale of the Distribution business.
Purely operating, cash flows stayed on the strong previous year's level.

The very strong development of M+M's proprietary business so far could well
compensate the negative impact starting in Q2 by Autodesk's transition from
license sale to rental: after 9 months EBITDA is nearly EUR 1.9 mln above
previous year. Thus a full year EUR 2.7-3.2 mln surplus seems to be
achievable, resulting in a EUR 15.5-16.0 mln (PY: 12.8 / +21-25%) EBITDA
2016 target. Depending on the further development of currency exchange
effects and the actual tax rate, net profit after minority shares should
come in at EUR 6.8-7.4 mln (PY: 3.87 / +75-90%) and EPS at 42-46 Cents (PY:
24). Very high free cash flows (57 Cents per share after 9 months) make it
more likely to reach the upper limit of the 30-35 Cents (PY: 25) dividend
target range.

M+M CEO Adi Drotleff is not only optimistic for M+M's proprietary business,
but also likes the mid-term perspective of the Autodesk transition: 'As the
annual rental charges at 30-40% of list prices are significantly higher
than the approx. 15% maintenance fees after license sales, we principally
appreciate the transition to a rental model, in accordance with the
financial market, and expect the Autodesk business to be back to a
significant growth contribution by Q4/2017. This means that our mid-term
annual growth targets - EBITDA EUR 3-4 mln, EPS 13-20 Cents and at least 10
Cents more dividend - are well underlined.'


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24.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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:      Regulated Unofficial Market in Berlin, Dusseldorf,          
                Hamburg, Munich (m:access), Stuttgart, Tradegate Exchange;  
                Open Market (Entry Standard) in Frankfurt                   
 
 
   End of News    DGAP News Service  
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513765 24.10.2016