DGAP-News: Mensch und Maschine Software SE

Sparkling Q4 with 32% EBITDA growth
- Proprietary business and cost discipline driving success
- New profit and cash flows records marked in 2017

Wessling, February 15, 2018 - A sparkling Q4 with approx. 32% EBITDA growth enabled new 2017 profit and cash flow records for Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company. The success was driven by the strong proprietary business combined with strict cost discipline. The transition from sale to subscription by our supplier Autodesk, which had a significant retarding effect during the first nine months, began to provide positive impulses.

According to preliminary figures, Q4 sales rose to approx. EUR 45.0 mln (PY: 39.48 / +14%), resulting in annual sales of approx. EUR 160.5 mln (PY: 167.07 / -4%) in 2017, with approx. EUR 50.4 mln (PY: 46.24 / +9%) from the Software segment and approx. EUR 110.1 mln (PY: 120.83 / -9%) from the VAR Business. Gross margin grew to approx. EUR 94.8 mln (PY: 91.43 / +3.7%), with Software contributing approx. EUR 48.9 mln (PY: 44.73 / +9.4%). VAR Business gross margin amounted to approx. EUR 45.9 mln (PY: 46.70 / -2%), thereof approx. EUR 29.9 mln (PY: 25.73 / +16%) from M+M proprietary services and approx. EUR 16.0 mln (PY: 20.97 / -24%) from the Autodesk business. All in all, approx. 83% (PY: 77%) of 2017 group gross margin was contributed by proprietary sources, which drove gross yield further up to approx. 59% (PY: 54.7%).

Operating profit EBITDA before depreciation, amortization, interest and taxes increased to approx. EUR 18.0 mln (PY: 15.76 / +14%), marking a new record level, with approx. EUR 12.7 mln (PY: 10.66 / +19%) contribution from Software and approx. EUR 5.3 mln (PY: 5.09 / +4%) from VAR Business. EBITDA margin climbed to approx. 25% (PY: 23.1%) in the Software segment, approx. 4.8% (PY: 4.2%) in the VAR Business and approx. 11.2% (PY: 9.4%) in the group. Net profit after minority shares soared to approx. EUR 8.5 mln (PY: 6.59 / +29%), or 52 Cents (PY: 40) per share, also marking a new company record, as did operating cash flows coming in at approx. EUR 15.2 mln (PY: 14.64) or 93 Cents (PY: 90) per share.

M+M CEO Adi Drotleff is pleased by the successful fiscal year end: 'In 2017 we reached our profit targets in spite of a very flat gross margin growth, not only marking new records but also proving that our strict cost management is working perfectly. Thus it is most likely that we can propose a 50 Cents dividend following 35 Cents in the previous year. In addition, Q4 has clearly demonstrated the level of profit increase potential M+M has for the future.'

Attention: The final audited 2017 figures, which will be disclosed in the accounts press conference on March 12, 2018, can differ from the preliminary figures.