Munich, April 27, 2018 – The Nemetschek Group (ISIN DE0006452907), the world’s second-largest provider of software for the AEC industry, began the 2018 fiscal year according to plan, despite the negative currency effects and a high comparable base from the strong first quarter of last year. The biggest growth impetuses came from the recurring sales from maintenance contracts and rental models (subscriptions).
Key success indicators of the group in the first quarter of 2018
- The group revenues rose to EUR 102.2 million, which is a currency-adjusted growth of 13.1% (reported: 6.2%) compared to the high previous year value of EUR 96.3 million.
- The drivers of the growth were the recurring revenues from software service contracts and subscription, which increased currency-adjusted by 22.4% (reported: 15.6%) compared to the previous year quarter to EUR 50.6 million and thus already makes up 49.5% of the total revenues. The disproportionate increase reflects the strategic change of the Nemetschek business model of offering subscriptions in addition to licenses. This change is gentle and respects the customer’s wishes. Due to the strong demand for subscription, the revenues from this type of revenue increased in the first quarter significantly disproportionately to the group growth currency-adjusted by 47.3% (reported: 33.8%) to EUR 4.3 million.
- The operational group earnings before interest, taxes, depreciation and amortization (EBITDA) increased currency-adjusted by 13.3% (reported: 5.9%) to EUR 27.9 million. Nemetschek achieved a high EBITDA margin of 27.3% and at the same time made significant investments in strategic projects.
- The net income (group shares) rose significantly disproportionately to the revenues by 15.2% to EUR 16.4 million so that the earnings per share increased to EUR 0.43. The tax rate of 24.5% (period last year: 28.4%) was in particular positively impacted by the US tax reform. This positive tax effect will continue in the long term.
- The operating cash flow increased significantly by 19.6% to EUR 26.6 million. The cash conversion (EBITDA to operating cash flow) was still at an extremely high level at 95.2%.
- On a segment basis, the Build segment achieved the strongest revenue growth in the first quarter with currency-adjusted 26.6% (reported: 13.1%) at EUR 31.6 million. The EBITDA of the segment rose by 55.6% to EUR 9.8 million in particular due to the strong development of the US brand Bluebeam so that the EBITDA margin reached 31.0%.
- In the Design segment, the revenues rose currency-adjusted 8.2% (reported: 3.5%) to EUR 62.8 million. The exceptionally strong quarter in the previous year is to be taken into account. The EBITDA margin declined from 28.3% to 24.2% compared to the previous year due to the increased investments.
- The Manage segment continued its double-digit growth with a positive 12.2% to EUR 2.0 million. The EBITDA increased by 39.1% to EUR 0.4 million.
- The earnings in the Media & Entertainment segment rose currency-adjusted by 5.3% (reported:
- -1.3%) in the first quarter to EUR 5.8 million. The EBITDA margin achieved almost the high level of the previous year at 44.3%.
“Despite the negative currency effects, we are satisfied with the development in the first quarter. Nemetschek is completely on schedule,” sums up Patrik Heider, spokesman of the executive board and CFOO of the Nemetschek Group. “Our economic strength is the prerequisite for being able to sustainably invest in the future viability of Nemetschek. Given our unique solution portfolio and our promising product pipeline, we are confident that we will reach our goals for 2018 and also our goals for the medium-term,” continues Heider.
Group outlook for 2018 confirmed
For the current year of 2018, the company confirms its previous outlook and expects group revenues in the range of EUR 447 million to EUR 457 million.* The EBITDA margin is expected to be in the corridor of 25% and 27% that is already achieved and is also sought after moving forward. At the same time, Nemetschek is investing an additional EUR 10 million in strategic projects.
* The revenue forecast is based on a planned exchange rate of 1.18 EUR/USD.
Overview of key figures
|In EUR million||Q1 2018||Q1 2017||Δ in %|
|- thereof software licenses|
|- thereof recurring revenues||50.6||43.8||+15.6%|
|EBITA (normalized EBIT)||26.0||24.4||+6.5%|
|Net income (Group shares)||16.4||14.2||+15.2%|
|Earnings per share in EUR||0.43||0.37||+15.2%|
|Net income (Group shares) before PPA depreciation||19.1||16.7||+14.3%|
|Earnings per share in EUR before PPA depreciation||0.50||0.43||+14.3%|
Key figures by segment
|In EUR million||Q1 2018||Q1 2017||Δ in %|
|Media & Entertainment|
The entire 3-month report for 2018 is available for download on the company’s website under Investor Relations.
For further information on the company, please contact
+49 89 540459 250
About the Nemetschek Group
The Nemetschek Group is driving the digitalization of the building industry. With our software, architects, engineers, construction companies, and facility managers can plan ahead, seamlessly share information and work together more closely. Building and infrastructure projects can thus be conducted more efficiently and sustainably. The unique holding structure provides our 15 strong brands with the flexibility to innovate in an entrepreneurial way while closely engaging with their 2.7 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the company today employs more than 2,000 experts. Publicly listed since 1999 and quoted on the TecDAX, the company generated revenues of EUR 395.6 million and an EBITDA of EUR 108.0 million in 2017.