Mensch und Maschine Software SE discloses final 2017 figures

Preliminary figures confirmed – Targets increased

New profit and cash flows records marked in 2017
Profit and dividend targets increased from 2018 onwards

Wessling, March 12, 2018 – Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, during the annual accounts press conference today confirmed the preliminary 2017 figures which had been disclosed on February 15, with new earnings and operating cash flows records and a 43% dividend increase to 50 Cents. Most figures are in fact slightly better than initially reported, and the increase of profit and dividend targets from 2018 onwards have been detailed. Sales came in at EUR 160.85 mln (PY: 167.07 / -3.7%) in 2017, with EUR 50.47 mln (PY: 46.24 / +9.1%) from the Software segment and EUR 110.38 mln (PY: 120.83 / -8.6%) from the VAR Business. Contrasted to sales, gross margin grew to EUR 94.82 mln (PY: 91.43 / +3.7%), with Software contributing EUR 48.94 mln (PY: 44.73 / +9.4%). VAR Business gross margin amounted to EUR 45.88 mln (PY: 46.70 / -1.8%), thereof EUR 29.88 mln (PY: 25.73 / +16%) from M+M proprietary services and EUR 16.00 mln (PY: 20.97 / -24%) from the Autodesk business. All in all, over 83% (PY: 77%) of 2017 group gross margin was contributed by proprietary sources, which drove gross yield further up to 59.0% (PY: 54.7%).

Operating profit EBITDA before depreciation, amortization, interest and taxes increased to EUR 18.04 mln (PY: 15.76 / +14.5%), marking a new record level, with EUR 12.69 mln (PY: 10.66 / +19%) contribution from Software and EUR 5.35 mln (PY: 5.09 / +5.0%) from VAR Business. EBITDA margin climbed to 11.2% (PY: 9.4%) in the group, 25.2% (PY: 23.1%) in the Software segment and 4.8% (PY: 4.2%) in the VAR Business. Net profit after minority shares jumped to EUR 8.55 mln (PY: 6.59 / +30%), or 52.5 Cents (PY: 40) per share, also marking a new record, as did operating cash flows coming in at EUR 15.22 mln (PY: 14.64) or 93.5 Cents (PY: 90) per share.

Management will propose to the annual shareholders’ meeting on May 9 to pay a dividend increased by 43% to 50 Cents (PY: 35), again including the option to be paid out in cash or as a share dividend.

After the sparkling rebound of VAR Business growth in Q4, M+M CEO Adi Drotleff has now increased the targets: ‘For 2018 we expect gross margin at EUR 104-108 mln (+10-12%), EBITDA at EUR 22-23 mln (+22-28%) and net profit at EUR 11-12 mln (+30-40%) or 67-73 Cents/share. From 2019 onwards we target an annual EUR 4-5 mln EBITDA increase to correspond with an annual EUR 3-4 mln / 18-24 Cents/share net profit improvement, so by 2020 net profit should exceed one Euro per share. Along with that, we plan to raise the dividend for 2018 to 62-68 Cents and from 2019 onwards annually by 15-20 Cents.’