nemetschek group company presentation · september 2017 company presentation 15. nemetschek group...

NEMETSCHEK GROUPCompany Presentation

September 2017

Barco One Campus, Kortrijk, BelgiumArchitects: Jaspers-Eyers Architects | Engineering Office: Establis

Image: Marc Detiffe | Realized with GRAPHISOFT and SCIA

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NEMETSCHEK GROUP: In Brief………………………...….……………………………….......3

Trends & Strategy…...………………………………………………………………………………8

Financials: Q2 / H1 2017……………….....………………………………………………...........14

NEMETSCHEK Share………..………...……………..………………………….…………….....24

Outlook: FY 2017.…………………………………….…………………….……………………...27

Appendix…………………………………………………………………….….……………...…...29

Contact...………………………..…………………………………………….…………………….34

SEPTEMBER 2017 COMPANY PRESENTATION

Agenda


Our Founder

Mission: „We drive digitalization and innovation for the entire life cycle of the AEC industry!“

Vision: Innovation driver and digital backbone of the AEC industry with strong global brands and customer proximity.

Responsibility: Prof. Nemetschek establishes the Nemetschek charitable foundation, supporting projects in the areas of education, science and research, arts and culture, the environment, international understanding and social projects.

Prof. Georg NemetschekFounder and Member of the Supervisory Board of Nemetschek SE

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The Philosophy of Nemetschek

We are a Group of industry leaders with a unique DNA and expertise in the AEC* industry.

All of our strong brands share the same mission:

“We are open and declare our support of Open BIM, a standard that allows maximum flexibility and a seamless collaboration of all the parties involved in the construction process so that quality is enhanced in construction in compliance with time and cost schedules.”

* Architecture, Engineering, Construction

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History: 50 Years of Innovation and Success

* Building Information Modeling

INTERNATIONALIZATION INNOVATION DRIVERSPIRIT OF INVENTION

1980Nemetschek presents the first computer-aided engineering software (CAE)

1984The first CAD solution ALLPLAN 1.0 appears on the market

1998Numerous acquisitions: Frilo, Glaser, Bausoftware, Crem

2000Acquisition: Vectorworks.Group headquarters move to new premises at the Munich Fair

2017Acquisition: dRofus

1963Georg Nemetschek, a certified engineer, founds the “engineering firm for the construction industry”

TODAYGlobally leading software company in Open BIM* and 5D

2013Acquisition: Data Design System

2006Graphisoft and Sciabecome subsidiaries of the Nemetschek Group

1983Internationalization begins in Austria and Switzerland

1999IPO of Nemetschek. Acquisitions: Maxon, Auer

1968The first use of computers in the construction industry

1997Nemetschek presents the database-driven platformO.P.E.N. – known today as BIM*

2008Founding of Allplan GmbH(formerly Nemetschek Allplan Systems GmbH)

2005Founding of Precast Software Engineering(formerly Nemetschek Engineering)

2016Acquisitions: Solibri andDesign Data.Conversion of Nemetschek AG into a SE

2014Acquisition: BluebeamSoftware. Investment in the start-up Sablono GmbH

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Nemetschek at a Glance


Facts and figures> 50 years of innovation, founded in 1963 and headquartered in Munich, GermanyOpen BIM pioneer and 5D provider with software solutions for the AEC* and media industry 14 strong brands337.3 mEUR sales revenues (2016)2.3 million users in 142 countriesAbout 2,000 employees worldwide60 locations in more than 40 countriesIPO 1999, listed in the TecDax2.5 billion EUR market capitalization

* Architecture, Engineering, Construction

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Media &Entertainment

Strong Brands under One Umbrella


MANAGEBUILDDESIGN

Architecture Engineering Construction

Nemetschek covers the complete value chain in the AEC & Media industry Entrepreneurial brands: Industry leaders with a unique DNA, expertise and customer orientation Attractive set-up for potential targets

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8

Trends & Strategy

SEPTEMBER 2017 COMPANY PRESENTATION 8

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WorkflowsDrawings

Since 1985

Models

Today Tomorrow

AEC Industry in Transition

COMPANY PRESENTATIONSEPTEMBER 2017 9

Mega Trend Digitalization – Entering The Industries


3,82

3,33

3,30

3,21

3,12

3,10

3,03

3,01

2,90

2,70

2,51

2,47

2,35

2,05

1,97

1,97

1,82

most some few very few1.0 2.0 3.0 4.0

Source: TOP 500 survey 2014 / Accenture

Average: 2,8

Telecommunications

Media & entertainment

Information technology

Automobile manufacturers

Electronics & high tech

Service providers

Logistics & transportations

Mechanical & plant engineering

Trade

Pharmaceutical & medical-device industry

Consumer goods

Utility sector

Automotive supplier

Chemical industry

Metals

Construction

Oil & Gas

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IT Spending as a % of Revenue by Industry (2015)


1,1

1,2

1,3

1,4

1,5

1,8

2,1

2,2

2,9

2,9

3,0

3,1

3,9

4,1

4,5

4,6

5,5

6,5

6,9

0% 1% 2% 3% 4% 5% 6% 7% 8%

Source: IT Key Metrics ‚Data 2015

Software Publishing and Internet Services

Banking and Financial Services

Education

Media and Entertainment

Professional Services

Healthcare Providers

Telecommunication

Pharmaceuticals, Life Sciences and Medical

Transportation

Insurance

Utilities

Industrial Electronics and Electrical Equipment

Consumer Products

Industrial Manufacturing

Retail and Wholesale

Chemicals

Food and Beverage Processing

ConstructionEnergy

90

525

2015 2025

Global IT Investment in construction increasing

Source: McKinsey

19%CAGR

Average: 3,4

in billion USD

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North America

1478

North America

2685

Europe1222

Europe2772

APAC872

APAC1653

ROW 488

ROW 838

2015 2020

BIM Market Size 2015/2020

BIM Market Size and Growth


Europe$ 1,222 mUSD +13.4%

North America$ 1,478 mUSD +12.7%

$ Market Size 2015 CAGR 2015 - 2020

Total7,948 mUSD

Total4,313 mUSD

+11.4%

+13.6%

+13.4%

+12.7%

CAGR

BIM Market by Region 2015

CAGR: +13%5 years

APAC$ 872 mUSD +13.6%

ROW$ 488 mUSD +11.4%

Source: BIM Market, Global Trends and Forecasts (2015-2020)

Markets and Markets

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Status of Current BIM Regulations and Use


Source: HSBC, Kepler Cheuvreux

50%

95%

We currently use BIM

In five year's time we will use BIM

National UK BIM Report survey on future use of BIM

Countries currently recommending or mandating BIMCountries recommending BIM as of 2017Countries with BIM guidelines/ positive BIM development

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Financials: Q2 / H1 2017

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15SEPTEMBER 2017 COMPANY PRESENTATION

Nemetschek Group Highlights for Q2 / H1 2017 (1)

Double-digit revenue growth in H1 2017

Revenues in first half at upper end of guidance 2017H1 revenues: Strong increase of 20.1% to 194.0 mEUROrganic growth of 14.8% (inorganic effects: dRofus (2.6 mEUR) and Design Data (5.7 mEUR))Q2 revenues: Up by 16.5% to 97.7 mEUROrganic growth of 11.6% Challenging Q2: High comparison level of previous year and release shift of one major brand in Design Segment from Q2 to second half 2017 will lead to revenue shift in H2

Strong revenue increase abroad

Revenues abroad: Up by 24.6% to 136.7 mEURRevenues share outside of Germany at 70.5% Higher footprint in the very competitive US market with revenues share of around 29%Growth regions: Americas, Asia, Scandinavia

Growth driver: Recurring revenues

Recurring revenues: Strong growth of 29.1% to 88.7 mEURShare of recurring revenues at high 45.7%Software licenses: Positive development with 13.0% growth to 96.9 mEURLicense revenue share of 50.0%

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EBITDA on high level

H1 EBITDA: up by 18.3% to 51.7 mEUR, EBITDA margin at 26.6% EBITDA previous year adjusted for one-time gain of 1.9 mEUR at 43.7Including one-time gain EBITDA increased by 13.4%Q2 EBITDA: up by 11.7% to 25.3 mEUR, EBITDA margin of 25.9%Strategic investments started in Q2Mature brands are contributing to efficiency

Net income and EPS Net income: Up by 21.1% to 27.7 mEUR (previous year w/o one-time gain)EPS: at 0.72 EUR

Solid balance sheet Dividend payment: 25m EUR after the AGM on June 1, 2017Cash and cash equivalents at 83.4 mEUR despite dRofus acquisition and dividend payoutEquity ratio at 43.6% - leeway for further investments / acquisitions

Outlook for FY 2017 confirmed

H1 as a very good basis for the fiscal year 2017Outlook for FY 2017 confirmed:Revenue target range: 395 - 401 mEUR, increase of +17% - +19% Thereof organic: +13% - +15%, inorganic effects through dRofus and Design DataEBITDA target range: 100 - 103 mEUR (+16 - +20%)High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

Nemetschek Group Highlights for Q2 / H1 2017 (2)


77,7 83,896,3 97,7

Q1 2016 Q1 2017 Q2 2016 Q2 2017

Positive revenue development continued in Q2 2017

SEPTEMBER 2017

+24.0% +16.5% +20.1%

161,5

194,0

HY 2016 HY 2017

Change

in mEUR

Organic growth of 11.6% yoy in Q2 Organic growth of 14.8% yoy in H1 Inorganic effects:

Design Data: 5.7 mEUR dRofus: 2.6 mEUR

COMPANY PRESENTATION 17

International Growth In Focus, More than 50 Locations

AMERICASBrazilCanadaMexicoUSA

WESTERN ANDSOUTHERN EUROPEAustriaBelgiumFranceGreat BritainGermanyItalyNetherlandsSpainSwitzerland

ASIAChinaJapan

Singapore

NORTHERN AND EASTERN EUROPE

Czech RepublicFinland

HungaryNorwayRussia

SlovakiaSweden


AUSTRALIA

Germany30%

Europe w/oGermany

32%

Americas29%

Asia/Pacific9%

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Software license revenues

50,0%

Recurring revenues*

45,7%

Consulting & Hardware

4,3%

* Software services, rental models (Subscriptions, SaaS)

High share and strong growth of recurring revenues


Revenues split H1 2017 in %

Recurring revenues* High growth of 29.1% to 88.7 mEUR

High recurring revenue share of 45.7% leads to higher stability

Software license revenues Up by 13.0% to 96.9 mEUR

New customers wins

Increasing customer base

Consequently recurring revenues will follow

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43,745,6

51,7

21,0 22,726,3 24,6

Q1 2016 Q1 2017 Q2 2016 Q2 2017

EBITDA margin on high level

SEPTEMBER 2017

+25.5% Change

in mEUR

EBITDA of the previous year 2016 is shown with and w/o the positive one-time effect of 1.9 mEUR

EBITDAMargin 27.0% 27.4% 27.1% 29.3% 27.0%

COMPANY PRESENTATION

25,3

25.9%

+11.7%* (+3.1%)

*

HY 2016 HY 2017

+18.3%* (+13.4%)

26.6%

*

28.2%

* EBITDA w/o 1.9 mEUR positive one-time effect in Q2 2016

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Net Income and EPS with solid growth


22,9 24,2

27,7

Net incomein mEUR

Change

H1 2016 H1 2017

+21.1%* (+14.5%)

0,59 0,630,72

H1 2016 H1 2017

+21.1%* (+14.5%)

EPSin EUR

* Net income and EPS w/o 1.9 mEUR positive one-time effect

*

*

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All segments with double-digit growth rates

SEPTEMBER 2017

40,3

3,211,2

57,1

3,8

12,3

EBITDAMargin

Change

27.4% 27.4%

+13.1%

22.6% 22.4% 17.5% 18.1% 42.9% 41.6%

+41.6% +17.5% +10.1%

DesignRevenue growth in H1: 13.1% (organic growth of 10.7%)Challenging Q2: High previous year level and release shift of one major brand from Q2 in H2 2017EBITDA margin H1 on previous year level

BuildRevenue growth of 41.6% in H1 (organic growth of 27.4%)EBITDA margin H1 on previous year level

ManageH1 revenue growth of 17.5%EBITDA margin improved slightly year on year

Media & EntertainmentH1 revenue growth of 10.1% Planned investments have impact on margins

Revenuesin mEUR

106,8

120,9

COMPANY PRESENTATION

H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017

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Cash flow situation


in mEUR

EBITDA+13.4% yoy

Operating cash flow+28.4% yoy

Previous year: One-time effects of 3.5 mEUR in trade receivables resulting from later customer payments (July 2016) – adjusted growth of 16.8%

Investing cash flowCapex of 4.0 mEUR

Acquisition of dRofus (24.5 mEUR)

Cash flow from financing activitiesRepayment of bank loan (-13.0 mEUR)

Dividend payment (-25.0 mEUR)

Conversion rate** 86% (previous year: 76%)

16,3

-30,1

-3,0

34,6

45,6

0,2

-39,9

-28,7

44,5

51,7EBITDA

Operating cash flow

Investing cash flow

Cash flow from financing activities

Net liquidity

H1 2017H1 2016

*

* End of FY 2016** Operating cash flow / EBITDA

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NEMETSCHEK Shares

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Founded: in 1963IPO: March 10, 1999Number of shares: 38,500,000Frankfurt Stock Exchange, Prime StandardBloomberg: NEM GY, Reuters: NEKG.DEShares Nemetschek family: 53.57%Freefloat: 46.43 percentCurrent MarketCap: ~ 2.5 billion EURCurrent TecDAX Ranking: 18/20

Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of NEMETSCHEK GROUP in the future

Prof. Georg Nemetschek

4,7%

Nemetschek Vermögensverwaltungs

GmbH & Co. KG48,4%

Free float46,9%

Stable Shareholder Structure

COMPANY PRESENTATIONSEPTEMBER 2017

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Share Price Increased Stronger than TecDAX and DAX

COMPANY PRESENTATIONSEPTEMBER 2017

Time Nemetschek TecDAX DaxYear 2013 +52% +38% +23%

Year 2014 +66% +18% +3%

Year 2015 +120% +34% +10%

Year 2016 +20% -1% +7%

YTD 2017 +18% +25% +4%

43

46

49

52

55

58

61

64

67

70

01.2017 02.2017 03.2017 04.2017 05.2017 06.2017 07.2017 08.2017 09.2017

Nemetschek TecDAX DAX

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Outlook: FY 2017


Optimistic outlook 2017 confirmed


in mEUR FY 2016 Forecast 2017* Organic

Revenues 337.3 395 – 401 (+17% - +19%) +13% - +15%

EBITDA 86.1** 100 – 103 (+16 - +20%)

*USD/EUR plan rate: 1.09** EBITDA w/o positive one-time effect of 1.9 mEUR

Market conditions Digitalization and IT spending will drive the use of software solutions in the AEC marketBIM market is expected to grow at a remarkable rate owing to supportive government regulations mandating the adoption of BIM software for construction projects

Strategic market positioning

Clear focus on AEC marketLeading player of Open BIM solutionsNetwork of industry leaders

Growth potential/ Investments

Focus on internationalization (North America, Asia, Europe)Investments in cross-brand strategic projects, new regional markets and customer segments, sales & marketing and innovationStrategically co-operations & acquisitionsHealthy balance sheet - capable of investing in organic and in inorganic growth

Guidance 2017 confirmed

Revenues: Focus on topline with double digit growth rates in the mid-teens EBITDA: Double digit growthHigh EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

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Appendix

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SEPTEMBER 2017 COMPANY PRESENTATION 29

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P+L statement Q2 / FY comparison

mEUR Q2 2017 Q2 2016 % YoY 6M 2017 6M 2016 % YoY

Revenues 97.7 83.8 +16.5% 194.0 161.5 +20.1%

Own work capitalized/other operating income 1.1 3.5 -66.9% 2.1 4.6 -53.9%

Operating income 98.8 87.3 +13.2% 196.1 166.2 +18.0%

Cost of materials / purchased services -3.5 -2.6 +34.1% -6.3 -5.0 +24.7%

Personnel expenses -42.1 -36.2 +16.2% -85.5 -71.2 +20.0%

Other operating expenses -27.9 -23.9 +16.8% -52.7 -44.3 +18.8%

Operating expenses -73.5 -62.7 +17.2% -144.4 -120.6 +19.8%

EBITDA 25.3 24.6 +3.1% 51.7 45.6 +13.4%

Margin 25.9% 29.3% 26.6% 28.2%

EBITDA (w/o one-time effect) 25.3 22.7 +11.7% 51.7 43.7 +18.3%

Margin (w/o one-time effect) 25.9% 27.1% 26.6% 27.0%

Depreciation of PPA and amortization -5.4 -4.4 +22.9% -10.9 -8.8 +23.3%

t/o PPA -3.4 -2.7 +27.2% -6.9 -5.4 +28.6%

EBITA (normalized EBIT) 23.3 22.9 +2.1% 47.7 42.1 +13.3%

EBIT 19.9 20.2 -1.3% 40.8 36.8 +11.0%

Financial result -0.2 -0.3 -0.4 -0.5

EBT 19.7 19.9 -1.1% 40.4 36.3 +11.3%

Income taxes -5.6 -6.2 -10.0% -11.5 -11.0 +4.3%

Non-controlling interests -0.6 -0.6 -1.1 -1.0

Net income (group shares) 13.5 13.1 +2.6% 27.7 24.2 +14.5%

EPS in EUR 0.35 0.34 +2.6% 0.72 0.63 +14.5%

Net income (group shares w/o one-time effect) 13.5 11.8 +14.2% 27.7 22.9 +21.1%

EPS in EUR (w/o one-time effect) 0.35 0.31 +14.2% 0.72 0.59 +21.1%


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Balance sheet - Assets

mEUR June 30, 2017 December 31, 2016

ASSETS

Cash and cash equivalents 83.4 112.5

Trade receivables, net 44.8 38.8

Inventories 0.5 0.6

Other current assets 16.2 16.0

Current assets, total 145.0 167.9

Property, plant and equipment 14.1 14.3

Intangible assets 87.6 89.7

Goodwill 184.9 177.2

Other non-current assets 6.2 5.7

Non-current assets, total 292.8 286.8

Total assets 437.7 454.7


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Balance sheet – Equity and liabilities

mEUR June 30, 2017 December 31, 2016

EQUITY AND LIABILITIES

Short-term borrowings and current portion of long-term loans 26.1 26.0

Trade payables & accrued liabilities 34.9 40.7

Deferred revenue 72.9 55.3

Other current assets 29.0 24.1

Current liabilities, total 163.0 146.1

Long-term borrowings without current portion 57.1 70.2

Deferred tax liabilities 19.1 20.6

Other non-current liabilities 7.9 15.7

Non-current liabilities, total 84.1 106.5

Subscribed capital and capital reserve 51.0 51.0

Retained earnings 146.3 144.0

Other comprehensive income -9.5 4.4

Non-controlling interests 2.9 2.8

Equity, total 190.6 202.1

Total equity and liabilities 437.7 454.7


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Cash flow statement

mEUR June 30, 2017 June 30, 2016 % YoY

Cash and cash equivalents at the beginning of the period 112.5 84.0 +34.0%

Cash flow from operating activities 44.5 34.6 +28.4%

Cash flow from investing activities -28.7 -3.0

t/o CapEX -4.0 -3.2 +26.0%

t/o Cash paid for business combinations -24.5 0.0

Cash flow from financing activities -39.9 -30.1 +32.9%

t/o Dividend payments -25.0 -19.3 +30.0%

t/o Repayments of borrowings -13.0 -9.2

FX-effects -4.9 -0.7

Cash and cash equivalents at the end of the period 83.4 84.9 -1.8%

Free cash flow(1) 15.7 31.6 -50.2%

Free cash flow(1) (w/o acquisition effects) 40.2 31.6 +27.2%

(1) Operating cash flow – Investing cash flow



Contact

NEMETSCHEK SEInvestor RelationsKonrad-Zuse-Platz 1D-81829 [email protected]

DisclaimerThis presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Suchstatements reflect current views of Nemetschek SE with respect to future events and results and are subject to risksand uncertainties. Actual results may vary materially from those projected here, due to factors including changes ingeneral economic and business conditions, changes in currency exchange, the introduction of competing products,lack of market acceptance of new products, services or technologies and changes in business strategy. NemetschekSE does not intend or assume any obligation to update these forward-looking statements.

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nemetschek group company presentation · september 2017 company presentation 15. nemetschek group...

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