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. --------------------------------------------------------------------------- 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.' --------------------------------------------------------------------------- 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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: [email protected] 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 --------------------------------------------------------------------------- 513765 24.10.2016