Autodesk business on commission base from H2/24
- No impact on M+M gross profit and earnings
- VAR cost of materials and sales go down, margins up

Wessling, November 23, 2023 – As a leading Autodesk Platinum Partner, Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM/BIM specialist company, is fully involved in and strongly supports the transition of the partner model from resale to an agent model, which was presented at Autodesk's Q3 conference on November 21st.

After the gross profit from the Autodesk business has already been switched from discount ("front-end") to commission payments ("back-end") in recent years, resales are expected to be omitted from August 2024, while complete customer support remains with the partner.

For M+M, this significantly will reduce cost of materials in the VAR segment, with sales also decreasing to the same extent, while gross profit and EBIT remain unchanged, resulting in significantly higher margins. From 2025, the first full year with the new model, we expect group gross margin to increase to 75-80% (2022: 50.3%) and EBIT margin to exceed 20% (2022: 13.3%).

CFO Markus Pech is also pleased about the streamlining of the balance sheet and the savings in processing, which should more than compensate for the conversion effort in the medium term: “Much less trading sales have to be insured and collected, and due to the currently ongoing conversion of our internal systems we can integrate the new model smoothly.”

Chairman Adi Drotleff adds: “The agent model ideally combines the advantages of indirect sales for broad customer support with Autodesk's understandable desire to have licensing and contractual relationships with users in one hand. For the M+M business model, it means streamlining and a significant improvement in margins. From my point of view, Autodesk will be giving us a very nice gift with the new processing model for the 40th M+M company anniversary coming up in 2024.”