Strong growth dynamics coupled with continued high profitability in second quarter

  • Strong rise in Group revenue in Q2 by 21.2% currency-adjusted
  • Recurring revenue continues to be a growth driver in Q2 (currency-adjusted: +23.6%)
  • License growth subject to considerable acceleration (currency-adjusted: +21.4%)
  • High EBITDA margin of 27.3% coupled with continued high levels of strategic investment
  • Earnings per share in Q2 significantly above previous year at EUR 0.47 (+34.2%)
  • Executive Board confirms outlook for the year 2018 as a whole

Munich, July 27, 2018 – At the Nemetschek Group (ISIN DE0006452907), the second-largest provider of software solutions for the AEC industry worldwide, business development in the second quarter has accelerated considerably compared to the first three months of 2018, and this despite ongoing negative currency exchange effects. The profitability of the Group continued to remain high in Q2. At the same time, the Nemetschek Group invested in strategic projects as announced in order to achieve double-digit growth in the future as well.

Major indicators of the Group’s success in the second quarter 2018

  • Group revenue in Q2 2018 rose to EUR 113.8 million, a strong growth rate of 16.5% compared to the previous year. Currency-adjusted growth was even more significant at 21.2%.
  • Recurring revenue from software service contracts and subscriptions remained growth drivers in Q2, rising by 19.3% (currency-adjusted: +23.6%) to EUR 53.6 million. The disproportionately large increase reflects the strategic change underlying Nemetschek’s business model, which entails offering customers subscriptions for software as well as licenses. In the second quarter of the year, revenue from subscriptions jumped disproportionately in relation to the Group’s growth, rising by 41.2% (currency-adjusted: +49.4%) to EUR 4.7 million.
  • Growth from license sales also rose considerably faster: revenue from licenses increased to EUR 56.2 million in Q2, a plus of 16.1% (currency-adjusted: +21.4%).
  • The operating results for the Group (EBITDA) rose by 22.6% (currency-adjusted: +22.0%) to EUR 31.1 million in Q2, which was over-proportional compared to its revenues.
  • Lying at 27.3% in Q2, the EBITDA margin continued to be at a high level, actually slightly above the range the company was originally aiming for, which was 25–27%. At the same time, Nemetschek invested in strategic projects as it had planned so as to ensure it would be able to achieve two-digit growth figures consistently in future.
  • In Q2, the net income for the year (Group shares) rose over-proportionally in relation to revenue, jumping by 34.2% to EUR 18.1 million and causing the earnings per share to go up to EUR 0.47.

“Nemetschek increased its speed considerably in Q2, so we were able to keep on ploughing ahead over the first six months and achieved double-digit growth as well as being highly profitable,” says Patrik Heider, spokesman for the Executive Board and CFOO of the Nemetschek Group. “This superb development is proof that we are doing the right thing by making large investments in future growth and to ensure our dynamic. We are well on the way to achieving our overall goals for 2018,” he adds.

Segment Development

  • Looking at the different business segments Nemetschek runs, the one that saw the strongest increase in sales in Q2 — and, indeed, the first six months of the year — was Build with 28.2% growth (currency-adjusted: +37.1%). Its EBITDA clearly rose over-proportionally in relation to its revenue, with the EBITDA margin reaching a high 28.4% in the second quarter (see table). The positive development in its earnings is particularly due to Bluebeam, its US brand. Bluebeam acquired Project Atlas, LLC in mid-June as part of an asset deal. Their product, Project Atlas, is a software application used in the construction industry and is essentially a digital mapping module with which to visually organize and connect documents and data kept at different locations. Using this method, anyone who is involved in a building site project can create and search a digital overview of their project and then make decisions on the spot whenever time is of the essence. Furthermore, Nevaris acquired 100% of the shares in 123erfasst.de GmbH on July 2, which is the market leader in mobile building-site management in Germany. 123erfasst.de GmbH offers services such as app-based time recording and building-site documentation, making it an indispensable part of digital building sites.
  • Revenue in the Design segment grew at a faster rate in Q2, reaching +12.1% (currency-adjusted: +15.1%). Compared to the same period last year, the EBITDA margin in second quarter dropped from 26.5% to 25.2% due to planned investments in growth in this segment.
  • The Manage segment continued to grow well in Q2, achieving a plus of 6.5%. The EBITDA margin in Q2 was with 20.6% slightly below the last year (21.7%).  
  • The Media & Entertainment segment was able to grow faster in Q2, achieving a plus of 7.5% (currency-adjusted: +12.0%). The EBITDA margin increased from 38.8% to 43.9% in the second quarter. Nemetschek SE increased its share of Maxon from 70% to 100% at the beginning of July. Under the leadership of a new CEO, the brand is expected to leverage its growth potential in the key AEC markets even further now.

 

Outlook for the Group for 2018 is confirmed

achieve EUR 447–457 million* in sales for the entire Group this year. Its EBITDA margin is forecast to lie in the range of 25%–27%, which it has done in the past and is expected to do in future, too. At the same time, Nemetschek is additionally investing around EUR 10 million in strategic projects.

* The revenue forecast is based on a planned exchange rate of 1.18 EUR/USD.

 

Key figures – quarterly overview (Q2)

In EUR million

Q2 2018

Q2 2017

Δ in %

Δ in %
(FX-adj)

Revenues

113.8

97.7

+16.5%

+21.2%

- thereof software licenses

56.2

48.4

+16.1%

+21.4%

- thereof recurring revenues

53.6

44.9

+19.3%

+23.6%

EBITDA

31.1

25.3

+22.6%

+22.0%

EBITDA margin

27.3%

25.9%

 

 

EBITA (normalized EBIT)

29.0

23.3

+24.2%

 

EBITA margin

25.5%

23.9%

 

 

Net income (Group shares)

18.1

13.5

+34.2%

 

Earnings per share in EUR

0.47

0.35

+34.2%

 

Net income (Group shares) before PPA

20.8

15.9

+31.1%

 

Earnings per share before PPA in EUR

0.54

0.41

+31.1%

 

 

 

Key figures – half-year overview (H1)

In EUR million

6M 2018

6M 2017

Δ in %

Δ in %
(FX-adj)

Revenues

216.0

194.0

  +11.4%

+17.2%

- thereof software licenses

103.4

96.9

+6.7%

+13.1%

- thereof recurring revenues

104.1

88.7

+17.4%

+23.0%

EBITDA

59.0

51.7

+14.1%

+17.6%

EBITDA margin

27.3%

26.6%

 

 

EBITA (normalized EBIT)

55.0

47.7

+15.2%

 

EBITA margin

25.4%

24.6%

 

 

Net income (Group shares)

34.5

27.7

+24.5%

 

Earnings per share in EUR

0.90

0.72

+24.5%

 

Net income (Group shares) before PPA

39.9

32.6

   +22.5%

 

Earnings per share before PPA in EUR

1.04

0.85

  +22.5%

 

 

 

Key figures by segment – quarterly overview (Q2)

In EUR million

Q2 2018

Q2 2017

Δ in %

Δ in %
(FX-adj)

Design

 

 

 

 

Revenues

67.4

60.2

+12.1%

+15.1%

EBITDA

17.0

15.9

+6.8%

+8.4%

EBITDA margin

25.2%

26.5%

 

 

Build

 

 

 

 

Revenues

37.4

29.2

+28.2%

+37.1%

EBITDA

10.6

6.5

+63.2%

+85.0%

EBITDA margin

28.4%

22.3%

 

 

Manage

 

 

 

 

Revenues

2.1

2.0

+6.5%

+6.5%

EBITDA

0.4

0.4

+1.3%

+1.0%

EBITDA margin

20.6%

21.7%

 

 

Media & Entertainment

 

 

 

 

Revenues

6.9

6.4

+7.5%

+12.0%

EBITDA

3.0

2.5

+21.6%

+25.6%

EBITDA margin

43.9%

38.8%

 

 

 

 

Key figures by segment – half-year overview (H1)

In EUR million

6M 2018

6M 2017

Δ in %

Δ in %
(FX-adj)

Design

 

 

 

 

Revenues

130.2

120.9

+7.8%

+11.6%

EBITDA

32.2

33.1

-2.8%

-2.0%

EBITDA margin

24.7%

27.4%

 

 

Build

 

 

 

 

Revenues

69.0

57.1

+20.8%

+32.0%

EBITDA

20.4

12.8

+59.5%

+76.7%

EBITDA margin

29.6%

22.4%

 

 

Manage

 

 

 

 

Revenues

4.1

3.8

+9.2%

+9.2%

EBITDA

0.8

0.7

+15.5%

+15.4%

EBITDA margin

19.1%

18.1%

 

 

Media & Entertainment

 

 

 

 

Revenues

12.7

12.3

+3.3%

+8.8%

EBITDA

5.6

5.1

+9.6%

+13.8%

EBITDA margin

44.1%

41.6%

 

 

 

The entire 6-month report for 2018 is available for download on the company’s website under Investor Relations.

For further information on the company, please contact

Nemetschek Group
Stefanie Zimmermann
Investor Relations
+49 89 540459 250
szimmermann@nemetschek.com

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.