Mensch und Maschine Software SE · XETR:MUM

Mensch und Maschine Software — Investor Presentation (April 2006)

22 slides from Mensch und Maschine Software's investor presentation, April 2006

  1. Slide 1: Company Presentation

    Company Presentation Mensch und Maschine Software AG April 2006

  2. Slide 2: Business model

    Business model  Mensch und Maschine Software AG is one of the leading vendors of CAD/CAM solutions in Europe (CAD/CAM = Computer Aided Design/Manufacturing)  Well balanced business model within CAD/CAM market in three respects:  Geographical markets  Customers and industry segments  Product por

  3. Slide 3: Business model: Geographical markets

    Business model  Geographical markets:  Market access in 15 European countries through 18 locations  Additional sales offices in the USA, Singapore and Japan

  4. Slide 4: Business model: Customers / industry segments

    Business model  Customers / industry segments:  Good segment balance  Mechanical + PLM: approx. 50% sales share  Architecture/Construction incl. Building Services and Visualization: approx. 25% Geographical Information  Systems (GIS) & Gardening/ Landscaping: approx. 15%  Electrical Eng.: appr

  5. Slide 5: Business model: Product portfolio

    Business model  Product portfolio: Software development/distribution balance  M+M Software development (M+M Technology)  Concentration on applications in addition to CAD standards  High gross margin >85% / EBIT margin potential up to 25%  Good for differentiation and profile in the CAD/CAM mark

  6. Slide 6: Target market

    Target market  Market volume CAD Software and Services:  Worldwide > 10 bln EUR (Sources: Daratech, Dressler-Verlag, own research)  Europe: > 3 bln EUR  Market share M+M in Europe:  directly approx. 4-5%  indirectly approx. 10% (end customer sales by resellers)  Market growth / market develop

  7. Slide 7: History & Culture

    History & Culture  M+M was founded in 1984 by Adi Drotleff  22 years of market experience / developed market position  Public since 1997 / Listing in Prime standard  Developed Corporate Culture  Employees in the M+M group are „Co-Entrepreneurs“ (profit oriented remuneration, options, decision m

  8. Slide 8: Marketing Instruments

    Marketing Instruments  Strong presence at trade shows:  2005: 58 shows in 12 countries  Customer news „M+M Magazine“:  2005: 8 editions in 4 languages  2005: Total # of copies 88,000  Prospects database / CRM  approx. 200,000 addresses  Lead qualification (Telemarketing)  Highly developed l

  9. Slide 9: IT / Web / Backoffice

    IT / Web / Backoffice  Nearly all M+M group members using SAP R/3 as ERP system  Integrated CRM system (Customer Relationship Management)  Fully integrated online shop:  >60% online order entry  For resellers & end customers direct / indirect (Shop Hosting)  SCM (Supply Chain Management)  Aut

  10. Slide 10: Sales development

    Sales development 150  Sales 2005: EUR 147.2 mln / +9% Intern'l Germany 125 a.  CAGR 1997-2005: 14% p.a. p. 100 4%  Sales per share nearly doubled: +1 1997: EUR 6.67 / 2005: EUR 12.21 75  International sales grew from 50 25% in 1997 to 73% in 2005 25 0 97 98 99 00 01 02 03 04 05 50  Quarterly s

  11. Slide 11: Disinvestments

    Disinvestments  Q1/2005:  50.1% subsidiary Compass (PDM/PLM) sold to Autodesk  Cash inflow EUR 7.1 mln / book profit EUR 6.2 mln  Asset deal, not tax free (consumption of tax carryovers)  Q2/2005:  20% share C-Plan (GIS) sold to Autodesk  Cash inflow EUR 3.2 mln / book profit EUR 2.1 mln  Ne

  12. Slide 12: Personnel development

    Personnel development  Headcount increased until 2002 500 Technology (acquisitions), then decreased 450 VAD Int'l M+M AG due to restructuring and use of 400 synergetic effects 350  2005: 307 employees (average) 300  140 / 46% Technology subsidiaries 250  95 / 31% VAD International 200  72 / 23%

  13. Slide 13: Development of expenses

    Development of expenses 60  2002 expense push, then reduction R&D 50 G&A  2005: Restructuring/Disinvestment S&M lowered operating expenses by 7% 40  S&M: 30 EUR 25.2 mln  G&A: EUR 8.8 mln 20  R&D: EUR 6.3 mln 10  Attention: R&D expenses only occur for software development segment, not for 0 di

  14. Slide 14: Earnings development

    Earnings development  Operating result EBITA 2005: EUR 15 10.03 mln (PY 1.84 / +446%) 10 EBITA Netto  Thereof strictly operating: 5 EUR 3.43 mln (PY 0.80 / +328%) 0  Plus EUR 6.60 mln (PY 1.03) -5 balance from +Disinvestments / -Restructuring costs -10  Incl. depreciation of fixed assets -15 EUR

  15. Slide 15: Earnings development

    Earnings development  Net result 2005: 15 EBITA EUR 5.56 mln (PY -9.22) 10 Netto  Swing by nearly 15 mln 5  EUR 0.45 per share (PY -0.85) 0  By far the best result in -5 the company‘s history -10  Old record result from 2001: -15 EUR 2.3 mln 2000 2001 2002 2003 2004 2005  For the first time in

  16. Slide 16: Balance sheet development

    Balance sheet development  Total assets significantly reduced 90 since 2001 by adjustments / 80 disinvestments and reduction in 70 current assets 60  Dec 31, 2005: EUR 66.4 mln / -4% 50  31.12.2005: Net bank debt lowered to 2001 2002 2003 2004 2005 EUR 14.4 mln 40  Dec 31, 2004: EUR 25.4 mln / -

  17. Slide 17: Shareholder structure

    Shareholder structure  # of shares at Dec 31, 2005: ~12.1 mln Schwenkert 6,8%  Shareholder structure:  50.3% Freefloat  49.7% Management – Founder / CEO Adi Drotleff 42.9% Drotleff – CTO Werner Schwenkert 6.8% Free Float 42,9% 50,3%  Capital increase March 20, 2006:  500,000 shares of EUR 4.75

  18. Slide 18: M+M goes European SE

    M+M goes European SE  Conversion from AG to SE planned  Seated in seven EU states, M+M already has the target SE structure – simple conversion possible (Art 2 (4) EU-D. 2157)  Shareholders‘ decision May 2006 retro-active to Jan 1, 2006  Articles of association largely unchanged  Monistic board

  19. Slide 19: Investor Relations

    Investor Relations  Designated Sponsors:  LBBW, Stuttgart  Close Seydler, Frankfurt  Analyst coverage:  First Focus: „Buy“ – fair value EUR 9.00  Independent Research: „Buy“ - fair value EUR 7.00  LBBW: „Buy“ - fair value EUR 7.00  Performaxx: „Speculative buy“ – fair value DFCF EUR 8.00  H

  20. Slide 20: Share price development

    mensch3zmaschne CAD as CAD can Share price development Entwicklung der MuM Aktie / Development of the M+M share M+M === Prime Software —-— --TecDAX . in% in EUR 250% 7,00 200% | 6,00 150% NM AN 5,00 vi vd 100% ih H 4,00 i F PA faite eo eee | 50% wa 3,00 0% Fs 2,00 -50% 1,00 Jan03 Apr Jul = Okt = Jan

  21. Slide 21: Outlook

    Outlook 200  Mid term goal: Moderate sales growth Sales with focus on improvment of profit margin 150  Targets 2006: 100  Sales ~ +10% to EUR >160 mln  EBITA return 4-5% (2005: 2.3%) 50 EUR 6.5 – 8.0 mln (2005: 3.4) 0  Net result: EUR 4.5 – 6.0 mln 01 02 03 04 05 06E 07E  Strictly operating, n

  22. Slide 22: Investment Highlights

    Investment Highlights Mensch und Maschine is:  22 years old, not a start-up company  Both a public and private company Mensch und Maschine has:  A good market position in an interesting market  A well balanced business model  A consolidated growth story  A lot of profit margin potential  A ve

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