Kein Folientitel

1
CompanyPresentation
Mensch und Maschine Software SE March 2009
2
Business model

• Mensch und Maschine Software SE (MM) is a
  leading vendor of CAD/CAM solutions in
  Europe(CAD/CAM Computer Aided
  Design/Manufacturing)
• European CAD/CAM Market MM Market share 7
• Founded 1984 25 years market presence
• Leading Value-Added Distributor in Europe for
  global CAD market leader Autodesk
• 25 MM share in Autodesk European market
• MMs own CAD/CAM Software development for
  differentiation and profile in the market
• Open Mind (CAM) Dataflor (Gardening/Landscaping)

3
Business model

• Two segment model
• MM Software CAD/CAM Software development
• 2008 Sales EUR 25.2 mln / 91 Gross margin /
  15.7 EBIT margin
• Value-Added Distribution (VAD) of Autodesk CAD
  Software
• 2008 Sales EUR 196.5 mln / 16.4 Gross margin /
  3.1 EBIT margin

4
Business model

• Sales models
• In the Autodesk market indirect through Partner
  Resellers
• No direct end customer business
• MM Technology Mainly direct sales
• Indirect sales in exceptional cases through
  highly qualified partners

5
Business model

• Beginning 2009 Three segment model
• New Value-Added Reselling (VAR) - German
  speaking markets
• Market entry in D/A/CH via Market Offensive,
  partly by acquisitions
• Sales EUR 40-50 mln / 35 Gross margin / up to
  10 EBIT margin
• Gross margin 50/50 from Services / CAD Software
  sales

6
Business model

• Market Offensive strategy

• Acquisition of key VAR partners in D/A/CH
• First group Q1/2009 CAD-LAN AG (CH), ES GmbH
  (A), Haberzettl GmbH (Nuremberg), LeyCAD
  (Reichshof near Cologne), AtWork GmbH
  (Osnabrueck), Dressler GmbH (Friedrichshafen)
• Further partner acquisitions planned during
  2009/2010 in D/A/CH
• Share swap (founders become co-entrepreneurs, low
  cash requirement)
• Two step takeover, performance dependent
  valuation over min. 2 years
• Extensive change to VAR business in D/A/CH
• Status 2008 Complete Autodesk purchase volume in
  Distribution
• 2009E 50/50 purchase volume split VAR /
  Distribution
• 2010E 80 VAR / 20 Distribution (e.g. AutoCAD
  LT)
• Outside D/A/CH actually no VAR business planned
• Autodesk is mainly selling through Distribution
  in other regions
• But MM now prepared for any changes in Autodesk
  sales model

7
Business model

• Segmentation (group level)

2008
2009E
8
Business model

• Geographical markets
• Distribution MM Software in 16 European
  countries

• D/A/CH VAR Business
• Sales offices in Japan, APAC and USA (MM
  Software only)
• Headcount
• 2008 388 (PY 327)
• 2009E gt500 employees
• Segmentation 35 VAR35 MM Technology30
  Distribution

9
Business model

• Customers / industry segments
• Good segment balance

• Mechanical PLMapprox. 50 sales share

• Architecture/Construction Visualization
  approx. 25

• Infrastructure Gardening/ Landscaping approx.
  15

• Electrical Engineering approx. 10

• Installed base
• over 50,000 end customers
• over 500,000 seats installed (gt50,000 new per
  year)
• Wide price/performance range
• Software from 1,000 Euro to more than 100,000
  Euro per seat

10
CAD/CAM in practice

• Architecture/Structural Engineering BMW-Welt
  Munich

Customer Schmid Stumpf Fruehauf und Partner,
Munich
11
CAD/CAM in practice

• Example product visualization of a robot system

Customer Duerr EcoClean GmbH
12
CAD/CAM in practice

• Example Production plant design in the dental
  industry

Customer Ivoclar Vivadent AG, Schaan,
Liechtenstein
13
CAD/CAM in practice

• Gardening and Landscaping
• Subsidiary DATAflor
• Price region approx. EUR 5,000 per seat
• Design and maintenance of GaLa Projects

Project Revitalization of Waldsiedlung,
Hanau-Grossauheim
14
CAD/CAM in practice

• Electrical Engineering
• Product AutoCAD ecscad
• Price region approx. EUR 5,000 per seat
• Technology sold to Autodesk on October 15, 2008

Project Groupwide unique electrical
documentation for INA-Schaeffler group,
Herzogenaurach
15
CAD/CAM in practice

• CAM Computer Aided Manufacturing
• Subsidiary Open Mind Product family hyperMill
• Price range EUR 15,000 to gt100,000 per seat
• Nearly 10 of group revenue / gt30 of gross margin

Project CNC programming for the manufacturing of
motorsport prototypes by Japanese DAISHIN SEIKI
CORPORATION
16
History Culture

• MM was founded in 1984 by Adi Drotleff
• 25 years of market experience / developed market
  position
• Public since 1997 / Listing on Prime standard
• Developed Corporate Culture
• Employees in the MM group are Co-Entrepreneurs
  (profit oriented remuneration, options, decision
  making processes)
• Low fluctuation sickness rate
• Experienced Management Team
• Most members are gt15 years in the company
• Strong 2nd/3rd management level

17
MM is European SE

• Since 12/2006, MuM is SE (Societas Europaea)
• Seated in seven EU states, MM already has the
  target SE structure simple conversion was
  possible (Art 2 (4) EU-D. 2157)
• Monistic board system
• Ideal board structure for entrepreneurial public
  company with a shareholders meeting majority
  held by management board
• Administrative Board Adi Drotleff, Norbert Kopp,
  Thomas Becker
• Managing Directors Adi Drotleff (CEO), Werner
  Schwenkert (CTO), Peter Schützenberger (CFO),
  Michael Endres (Marketing), Jens Jansen (CIO)
• MM SE is pure group holding
• Operating business through subsidiaries

18
IT / Web / Back office

• Nearly all MM group members using SAP R/3 as
  ERP system
• Integrated CRM system (Customer Relationship
  Management)
• Fully integrated online shop

• gt70 online order entry
• Direct SAP access for MM partners and customers
• SCM (Supply Chain Management)
• Automatic order processing with Autodesk and
  customers
• Nearly 100 online processing quote achieved with
  Autodesk
• High cost- time savings, error reduction

19
Sales development

• Sales 2008 EUR 223.1 mln / 5

• In local currencies approx. 8
• Negative impact mainly from GBP
• CAGR 1997-2008 14 p.a.
• Sales per share more than doubled1997 EUR 6.67
  / 2008 EUR 16.44

• Quarterly seasonality 2008
• Q1 very strong (new company record)
• Q2 highest growth 20
• Q3 4 (in local currencies 7)
• Q4 -2 (in local currencies 1)
• Slowdown towards the year end
• Q2-Q4 nearly equal sales

20
Profit development

• Operating profit EBITA 2008 EUR 10.28 mln (PY
  9.83 / 4.6)
• EBIT margin 4.6 (PY 4.6)

• Including disinvestment profit ecscad and
  loss/writeoff Creata GmbH
• EBITDA EUR 11.76 mln (PY 10.69)
• Quarterly seasonality following sales

• Net 2008 EUR 5.76 mln (PY 6.03)
• Per share EUR 0.42 (PY 0.47)
• Dividend (tax free) Proposal EUR 0.20 (PY
  0.20)
• Operating Cashflow 2008EUR 9.32 mln (PY 3.65)

21
Balance sheet

• Total assets Dec 31, 2008
• EUR 84.99 mln (PY 80.33)

Total assets

• Net bank debt Dec 31, 2008
• EUR 11.16 mln (PY 15.98)

• Equals lt1.0x EBITDA 2008
• Convertible loan EUR 1.06 mln paid back
• EUR 0.52 mln invested in share repurchase
• In the course of 2009/10, net bank debt will go
  to zero at scheduled business development

Net bank debt

• Shareholders equity Dec 31, 2008
• EUR 26.4 mln (PY 24.4)
• Equity ratio 31.1 (PY 30.3)
• Return on Equity ROE 21.8 (PY 25.2)

22
Shareholder structure

• of shares at Dec 31, 2008 approx. 13.6 mln
• Shareholder structure
• 48.5 Free float
• 1.2 Treasury Stock
• 50.3 Management
• CEO / Chairman of the Board Adi Drotleff 44.2
• Purchase since beginning of 2006gt800,000
  shares / Invest gt4.0 MEUR
• CTO Werner Schwenkert 6.1

• MM is both a public and private company

23
Investor Relations

• Designated Sponsors
• LBBW, Stuttgart
• Close Seydler, Frankfurt
• Analyst coverage
• LBBW Buy - fair value EUR 5.60
• Independent Research Buy - fair value EUR
  5.70
• SES Research Buy - fair value EUR 6.00
• Performaxx Buy fair value EUR 10.23
• GSC Research Buy fair value EUR 5.20

24
Share price development
Since Oct 9, 2008 Share buyback program started
25
Outlook

• 2009 No reasonable guidance possible
• Short term Concentration on cost control cash
  flow
• Q1/2009 expected approx. on Q4/2008 level
• Q2/2009 probably slower / Transition to VAR
  business in D/A/CH
• Beginning Q3 or Q4 maybe growth
• Anti cyclic investment behavior
  Mechanical/Electrical customers
• CAD/CAM systems not used in production, but in
  development
• Impacts of national economic programs
• MM Market Offensive gaining more momentum
• Mid to long term goal
• Sales growth 10 to 15 p.a.
• Increase of EBITA margin from actually just under
  5 by economy of scale and better margin in the
  VAR business

26
Investment Highlights

• Mensch und Maschine is
• Established in the CAD/CAM market for 25 years
• Both a public and private company
• Mensch und Maschine has
• A good market position in a growth market
• A business model well balanced across 3 segments
• A profitable growth story including margin
  potential
• A very conservative market valuation
• P/E significantly lower than 10
• Dividend yield significantly higher than 5 net