DGAP-News: Mensch und Maschine Software SE discloses Q1 report 2018

Most profitable quarter ever
- EBITDA +22% / Net profit +30% / both segments growing
- Targets for 2018 solidly underlined

Wessling, April 23, 2018 - Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, started the new year 2018 with the most profitable quarter ever: After the end of the Autodesk retarding effect +22% EBITDA increase was achieved. While the Software segment continued to contribute a larger share, the VAR Business grew at a much higher percentage. So the gap begins to shrink, as expected.

Group sales increased to EUR 48.58 mln (PY: 45.47 / +6.8%), with EUR 14.02 mln (PY: 12.83 / +9.3%) from M+M Software and EUR 34.56 mln (PY: 32.64 / +5.9%) from the VAR Business. Group gross margin increased to a record EUR 26.79 mln (PY: 24.98 / +7.2%), with a EUR 13.74 mln (PY: 12.56 / +9.3%) share from M+M Software and EUR 13.05 mln (PY: 12.42 / +5.1%) from the VAR segment.

Operating profit EBITDA before depreciation, amortization, interest and taxes grew to EUR 6.62 mln (PY: 5.42 / +22%), the best quarterly result ever. Software contribution was EUR 4.14 mln (PY: 3.54 / +17%), while the VAR Business achieved EUR 2.48 mln (PY: 1.87 / +33%). Net profit after minority shares jumped by 30% to EUR 3.40 mln (PY: 2.62), or 21 Cents (PY: 16) per share. Operating cash flows at EUR 6.82 mln (PY: 7.70) came in twice as high as net profit and even higher than EBITDA.

CEO Adi Drotleff now feels that M+M is on the right track: 'Our EBITDA target range of EUR 22-23 mln (PY: 18.04 / +22% to +28%) is solidly underlined by the start of 2018, particularly as in Q2 the VAR Business sales are expected to speed up due to the renewal of many multi-year Autodesk maintenance contracts. Net profit is also expected in the target range guidance of EUR 11-12 mln (PY: 8.55 mln / +30% to +40%), EPS 67-73 Cents (PY: 52.5). Assuming we achieve these targets we plan to increase the dividend to 62-68 Cents, while in the annual shareholders' meeting on May 9, 2018, the dividend proposal for fiscal year 2017 will be 50 Cents (PY: 35).'