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1
CompanyPresentation
Mensch und Maschine Software SE October/November
2007
2
Business model

• Mensch und Maschine Software SEis one of the
  leading vendors of CAD/CAM solutions in
  Europe(CAD/CAM Computer Aided
  Design/Manufacturing)
• Well balanced business model within the CAD/CAM
  market in three respects
• Geographical markets
• Customers and industry segments
• Product portfolio

3
Business model

• Geographical markets
• Market access in 15 European countries through
  18 locations

• Additional sales offices in the USA. APAC and
  Japan

4
Business model

• Customers / industry segments
• Good segment balance

• Mechanical PLMapprox. 50 sales share

• Architecture/Constructionincl. Building Services
  and Visualization approx. 25

• Geographical Information Systems (GIS)
  Gardening/ Landscaping approx. 15

• Electrical Eng. approx. 10

• Indirect sales model
• approx. 1.000 resellers(lt3.5 revenue share
  each)
• over 50.000 end customers
• over 500.000 seats installed (gt50.000 new per
  year)

5
Business model

• Product portfolio Software development/distributi
  on balance

• MM Software development (MM Technology)
• Concentration on applications in addition to CAD
  standards
• High gross margin 88 / EBIT margin potential
  20-25
• Important for differentiation and profile in the
  CAD/CAM market
• Value-Added Software Distribution (Trading
  products)
• Concentration on CAD market leader Autodesk
• High revenues. gross margin 17. EBIT margin
  potential 4-5
• Important for market position
• Gross margin mix 40 MM software / 60
  distribution
• Approx. 2/3 sales in new business 1/3 in
  existing business
• Wide price/performance range
• Software from 100 Euro to more than 100.000 Euro
  per seat

6
Target market

• Market volume CAD/CAM SoftwareServices
• Worldwide gt 10 bln EUR(Sources Daratech.
  Dressler-Verlag. own research)
• Europe gt 3 bln EUR
• Market share MM in Europe
• directly approx. 5-6
• indirectly approx. 10 (end customer sales by
  resellers)
• Market growth / market development
• Solid market growth 5-10 p.a.
• MM well positioned in growth segments. e.g.
• Indirect sales / mid price systems
• CAM (highly innovative 5 axis milling)

7
History Culture

• MM was founded in 1984 by Adi Drotleff
• 23 years of market experience / developed market
  position
• Public since 1997 / Listing in 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 gt10 years in the company
• Strong 2nd/3rd management level

8
MM is European SE

• Conversion from AG to SE completed
• Seated in seven EU states. MM already has the
  target SE structure simple conversion was
  possible (Art 2 (4) EU-D. 2157)
• Shareholders decision May 30. 2006 with 99.95
  of votes
• Registered as of Dec 7. 2006
• 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
• Remaining operating business Spun-off as of Jan
  1. 2006

9
MM Group Structure
10
Acquisition Creata

• Corporate News October 10. 2007
• Takeover 50.1 in Potsdam software company Creata
• Portfolio Software service for recording.
  calculation. management and supervision of
  broadband and cable networks (MM Technology
  Segment)
• Application basing on market leading standards
  Autodesk (CAD) and Oracle (Database)
• 2008E Sales EUR 2.0 mln / EBIT EUR 0.3 mln
  (15)
• MM Investment EUR 0.7 mln
• Valuation 4.5 to 5.0x EBIT 2008 (variable with
  /- correction)
• Capital increase. invest 100 fuelling further
  growth
• Closing/consolidation Scheduled for Q1/2008

11
Marketing Instruments

• Strong presence at trade shows
• 2007 47 shows in 14 countries

• Live presentations via Internet
• 2007 presentations withapprox. 3.000 attendees
• Rapidly growing trend
• Prospects database / CRM
• approx. 150.000 addresses
• Lead qualification (Telemarketing)
• Highly developed lead management dealers/endusers
• approx. 10.000 qualified leads per yearpassed on
  to authorized dealers

12
IT / Web / Backoffice

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

• gt60 online order entry
• For resellers end customersdirect / indirect
  (Shop Hosting)
• SCM (Supply Chain Management)
• Automatic order processing with suppliers and
  customers
• Target driving online order entry quota towards
  100
• High cost- time savings. error reduction

13
Sales development

• Sales 2006 EUR 170.3 mln / 16

• CAGR 1997-2006 14 p.a.
• Sales per share doubled1997 EUR 6.67 / 2006
  EUR 13.51
• International sales grew from 25 to 75 since
  1997

• Typical quarterly seasonality
• Q1 Q4 stronger. Q2 Q3 slower

• Sales Jan-Sep 2007
• Q1 EUR 64.2 mln (PY 46.3 / 38)
• Q2 EUR 45.9 mln (PY 36.0 / 28)
• Q3 EUR 49.2 mln (PY 39.2 / 26)
• 1-9 EUR 159.4 mln (PY 121.5 / 31)

14
Personnel development

• Headcount increased until 2002 (acquisitions).
  then decreased due to restructuring and use of
  synergetic effects

• Sales per head 2002 gt 2006 KEUR 306 gt 568 /
  86
• Since 2007 growing headcount Sep 30. 2007 339
  Employees
• 175 / 52 Technology subsidiaries
• 97 / 28 Distribution International
• 67 / 20 HQ (Holding/Distribution GER)

15
Development of expenses

• 2002 expense push. then reduction through
  Restructuring/Disinvestment

• 2006 Operating expenses 3
• Increase mainly from marketing budget

• SM EUR 26.4 mln
• GA EUR 9.0 mln
• RD EUR 6.0 mln

• Attention RD expenses only occur for software
  development segment. not for trading segment
• No capitalization of development costs according
  to IAS 38.45
• Software library including many hundred man
  years of invested development is a hidden
  reserve
• Jan-Sep 2007 Operating expenses 11.6

16
Earnings development

• Operating result EBITA 2006EUR 6.84 mln (PY
  3.39 / 102)
• EBITA margin 4.0 (PY 2.3)

• Non-recurring EUR 0.42 mln (PY 4.19)
• Disinvestments 0.79 (PY 8.29)
• - Restructuring costs -0.38 (PY -1.7)
• - Impairment of goodwill 0.0 (PY -2.41 /
  restated)

• EBITDA 2006 (before depreciation) EUR 7.73 mln
  (PY 4.27 / 81)

• Operating result EBIT(A) 1-9/2007
• Q1 EUR 4.16 mln (PY 3.02 / 38)
• Q2 EUR 1.66 mln (PY 0.90 / 84)
• Q3 EUR 1.41 mln (PY 0.93 / 51)
• 1-9 EUR 7.24 mln (PY 4.85 / 49)

17
Earnings development

• Net earnings 2006 EUR 3.20 mln (PY 0.54)
• EUR 0.24 per share (PY 0.04)
• Dividend 2006 EUR 0.15 per share (PY 0.10)
• Tax free (27 KStG)
• Net earnings Jan-Sep 2007
• Q1 EUR 2.75 mln (PY 1.60 / 72)
• Q2 EUR 0.83 mln (PY 0.25 / 236)
• Q3 EUR 0.68 mln (PY 0.25 / 170)
• 1-9 EUR 4.26 mln (PY 2.10 / 103)
• Operating Cashflow
• 2006 EUR -2.96 mln
• 1-9/07 EUR 12.29 mln
• Negative swing in 2006 more than compensated

18
Balance sheet development

• Total assets
• Dec 31, 2006 EUR 76.8 (PY 61.5 mln)

Total assets

• Sep 30, 2007 EUR 68.3 mln / -5
• Net bank debt Dec 31, 2006
• Dec 31, 2006 EUR 18.5 mln (PY 14.4)

• Sep 30, 2007 EUR 10.3 mln / low !

• Shareholders equity
• Dec 31, 2006 EUR 14.9 mln (PY 10.0)
• Equity ratio 20.8 (PY 16.3)
• Return on Equity ROE 21.5 (PY 5.4)
• Sep 30, 2007 EUR 18.4 mln / 23
• Equity ratio 26.9
• Small capital increase Oct 24, 2007
• Shareholders equity EUR 21.9 mln
• Equity ratio 32.1

Net bank debt
19
Shareholder structure

• of shares at Oct 31, 2007 approx. 13.6 mln
• Shareholder structure
• 50.6 Free float
• 49.4 Management
• CEO / Chairman of the Board Adi Drotleff 43.2
• Purchase 2006/2007gt 650.000 shares / Invest gt
  3,5 MEUR
• CTO Werner Schwenkert 6.1

• MM is both a public and private company

20
Investor Relations

• Designated Sponsors
• LBBW, Stuttgart
• Close Seydler, Frankfurt
• Analyst coverage
• LBBW Buy - fair value EUR 7.60
• Independent Research Buy - fair value EUR
  8.00
• SES Research Buy - fair value EUR 7.50
• Performaxx Buy fair value EUR 9.74
• GSC Research Buy fair value EUR 8.60
• First Focus Buy fair value EUR 9.00

21
Share price development
22
Outlook

• Mid term goal Moderate sales growth / focus on
  improvement of profit margin
• Targets 2007
• Sales EUR 210 mln / 25

Sales

• EBIT margin 5 (2006 4.3) EUR 10 mln / 40

• Net earnings EUR 6.5 mln / 100
• approx. EUR 0.50 per share
• Dividend EUR 0.20 per share (tax free)

• Targets 2008
• Sales EUR 240 mln / 15

• EBIT EUR 13.5 mln / 35
• Net earnings EUR 9.0 mln / 40
• approx. EUR 0.70 per share
• Dividend EUR 0.25 per share (tax free)

23
Investment Highlights

• Mensch und Maschine is
• Established in the CAD/CAM market for 23 years
• Both a public and private company
• Mensch und Maschine has
• A good market position in a growth market
• A well balanced business model
• A consolidated growth story
• A profit margin potential for further improvement
• A conservative market valuation (P/S lt0.4 /
  P/E08E 7)
• A reasonable dividend yield (2007e 3)