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Nemetschek SE

Earnings Release Oct 28, 2016

301_10-q_2016-10-28_105a5d34-8740-41d4-8111-9e3f3d6bfc7c.pdf

Earnings Release

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QUARTERLY STATEMENT AS OF SEPTEMBER 30, 2016

To our shareholders

Patrik Heider, Spokesman of the Executive Board and CFOO

The Nemetschek Group continued on its course of dynamic development in the third quarter of 2016 and considerably increased its profitability compared to the same period in the previous year.

MAJOR INDICATORS OF THE GROUP'S SUCCESS

  • ||| In the third quarter, Group revenues rose by 18.5% to EUR 83.9 million (previous year: EUR 70.7 million). Organic growth amounted to 14.9%. Revenue for the nine-month period was EUR 245.4 million, which is 19.2% higher than the corresponding value from the previous year (EUR 205.9 million), whereby organic growth reached 17.1%.
  • ||| The Nemetschek Group further reinforced its international alignment. In the first nine months of this year, revenue abroad rose by 20.7% to EUR 166.0 million (previous year's period: EUR 137.6 million). Growth regions were primarily North America, Asia and Scandinavia.
  • ||| With a plus of 20.9% and rising to EUR 129.0 million (nine months of 2015: EUR 106.7 million), revenue from the sale of software licenses constituted a further growth driver. Recurring revenues from maintenance contracts and rental models however also increased considerably in the two-digit range by 16.1%, reaching EUR 104.3 million (previous year's period: EUR 89.9 million). The share of recurring revenues compared to total revenues was 42.5%.
  • ||| EBITDA rose over-proportionally compared to revenue. It increased in the first nine months by 34.8% to EUR 66.6 million (previous year's period: EUR 49.4 million), which corresponds to an operating margin of 27.1% (previous year's period: 24.0%). EBITDA adjusted for the one-time effect occurring in Q2 and amounting to EUR 1.9 million rose as of September 30, 2016 by 30.9% to EUR 64.7 million, which corresponds to an adjusted EBITDA margin of 26.4%.
  • ||| The net income (Group shares) increased by 49.9% to EUR 36.3 million (nine months of 2015: EUR 24.2 million). The earnings per share rose from EUR 0.63 to EUR 0.94. Adjusted for the one-time effect, the Group's net income for the year is calculated at EUR 34.9 million (+44.4%) with adjusted earnings per share of EUR 0.91.

The figures from the first nine months clearly indicate that Nemetschek is in optimum shape. We are well on the way to another record year. The business development confirms our strategic initiatives such as product innovations and strengthened internationalization. We are growing organically in the two-digit range and have accelerated this growth as a result of our acquisitions.

HEALTHY BALANCE SHEET AND HIGH LIQUID RESERVES

The Group's net asset structure and financial position continue to be extremely sound. The Nemetschek Group demonstrated an equity ratio of 41.4% as of September 30, 2016 (December 31, 2015: 44.0%). Cash and cash equivalents increased to EUR 103.0 million (December 31, 2015: EUR 84.0 million).

DEVELOPMENT OF THE SEGMENTS IN THE FIRST NINE MONTHS

The Design segment continued on its growth course. Revenue rose by 13.2% to EUR 162.3 million (previous year's period: EUR 143.4 million). EBITDA increased over-proportionally compared to revenue by 32.1%, reaching EUR 45.8 million (previous year's period in 2015: EUR 34.7 million). The EBITDA margin rose accordingly from 24.2% to a very high 28.2%. This growth arose from almost all regions and brands.

The strongest growth was achieved in the Build segment. Revenue increased by 42.6% to EUR 62.0 million (previous year's period in 2015: EUR 43.5 million). This is supplemented by inorganic effects totaling EUR 4.6 million as a result of the acquisition of the Finish company Solibri (as of January 1, 2016) and the acquisition of Design Data (as of August 1, 2016), located in the US. Organic growth amounted to 32.6%. Likewise, EBITDA increased considerably by 43.5% to EUR 11.5 million (previous year's period: EUR 8.0 million), which caused the EBITDA margin to improve from 18.5% to 18.6%.

In the Manage segment, it was possible to considerably increase revenue to EUR 5.0 million, a plus of 19.4% compared to the previous year's period (EUR 4.2 million). EBITDA increased by 50.2% to EUR 1.0 million (previous year's period: EUR 0.6 million), which corresponds to a considerably higher EBITDA margin amounting to 19.3% (previous year's period: 15.4%).

The Media & Entertainment segment showed solid growth, rising from 8.3% to EUR 16.1 million (previous year's period: EUR 14.9 million). Despite investments, EBITDA increased by 5.8% to EUR 6.4 million (previous year's period: EUR 6.0 million). The EBITDA margin fell slightly below that of the previous year (40.6%) at 39.7%.

OUTLOOK FOR THE WHOLE OF 2016

We confirm the forecast for revenue and EBITDA for the current 2016 financial year, a forecast which was already increased at the beginning of October. The new forecast anticipates revenue in the range of EUR 338 million to EUR 341 million (previously: EUR 319 million to EUR 325 million). This results in a planned growth in revenue compared to the previous year (EUR 285.3 million) of +18% to +20% (previously: +12% to +14%). Operating EBITDA (adjusted for the positive one-time effect from the second quarter amounting to EUR 1.9 million) is now expected to be in the range of EUR 89 million to EUR 91 million. This would be an increase compared to the previous year's value (EUR 69.5 million) of +28% to +31% (previous forecast: EUR 77 million to EUR 80 million).

Thank you for your trust!

Yours sincerely

Patrik Heider

Nemetschek on the capital market

VOLATILITY IN THE STOCK MARKETS

Following a weak start to the year and an extremely volatile first half-year, stock markets regained some measure of stability in the third quarter. Uncertainties related to future monetary policy in the US, the Eurozone and in Japan dominated market activities in the third quarter. In Europe, economic and political risks increased following the British referendum. However, the direct impact of a weaker UK economy appears negligible in the global context.

The DAX and TecDAX indexes declined slightly over the year, by just under 2 percent.

NEMETSCHEK SHARE PRICE PERFORMANCE SINCE THE START OF 2016

Despite some fluctuations, Nemetschek shares closed the first nine months of 2016 with a significant plus. Nemetschek shares started the year at EUR 45.00 on January 4, 2016, reaching a 2016 low of EUR 34.28 on February 11, 2016 before recovering. The results of the Brexit referendum triggered another slide in mid-June. The share price subsequently rallied strongly and closed the first nine months at EUR 54.55 – a gain of approximately 20 percent since the start of the year. Accordingly, the market capitalization of Nemetschek SE amounted to around EUR 2.10 billion as of the end of the third quarter.

DEVELOPMENT OF THE NEMETSCHEK SHARE AS WELL AS OF THE TECDAX AND DAX INDEXED

Nemetschek shares develop better than TecDAX and DAX

SHAREHOLDER STRUCTURE

As of September 30, 2016, Nemetschek SE's share capital was unchanged at EUR 38,500,000, divided into 38,500,000 no-par value bearer shares.

The free float remained unchanged at 46.43 percent as of September 30, 2016.

SHAREHOLDER STRUCTURE*

* Direct shareholdings as of September 30, 2016

Key figures

NEMETSCHEK GROUP

in EUR million 3rd Quarter 2016 3rd Quarter 2015 Change 9 month 2016 9 month 2015 Change
Revenues 83.9 70.7 18.5% 245.4 205.9 19.2%
EBITDA 21.0 16.8 24.9% 66.6 49.4 34.8%
as % of revenue 25.1% 23,8% 27.1% 24.0%
EBITDA (w/o one-time effect) 21.0 16.8 24.9% 64.7 49.4 30.9%
as % of revenue 25.1% 23.8% 26.4% 24.0%
EBITA 19.2 15.1 26.6% 61.3 44.5 37.7%
as % of revenue 22.8% 21.4% 25.0% 21.6%
EBIT 16.3 12.6 29.3% 53.0 36.9 43.6%
as % of revenue 19.4% 17,8% 21.6% 17.9%
Net income (group shares) 12.1 8.7 38.9% 36.3 24.2 49.9%
per share in € 0.31 0.23 0.94 0.63
Net income (group shares w/o
one-time effect)
12.1 8.7 38.9% 34.9 24.2 44.4%
per share in € 0.31 0.23 0.91 0.63
Net income (group shares) before
depreciation of PPA*
14.2 10.5 35.6% 42.3 29.6 43.0%
per share in € 0.37 0.27 1.10 0.77
Cash flow from operating activities 64.5 48.8 32.1%
Free cash flow 18.7 40.8 –54.1%
Net liquidity/net debt** 0.2 3.3 –95.3%
Equity ratio** 41.4% 44.0%
Headcount as of balance sheet date 1,902 1,708 11.4%

* Purchase Price Allocation

** Presentation of previous year as of December 31, 2015

Interim Management Report

REPORT ON THE EARNINGS, FINANCIAL AND ASSET SITUATION

INCREASE IN REVENUES OF 19.2 %, HIGH EBITDA MARGIN OF 27.1 %

The Nemetschek Group increased its revenues as of September 30, 2016 by 19.2% to EUR 245.4 million (previous year: EUR 205.9 million). EBITDA rose over-proportionally compared to revenue. With a plus of 34.8%, EBITDA increased to EUR 66.6 million (previous year: EUR 49.4 million), which corresponds to an operating margin of 27.1% (previous year: 24.0%). The significant increase in EBITDA can be traced back to the continued ongoing growth of the Nemetschek Group as well as a one-time gain from a legal dispute with a former member of the executive board of Nemetschek SE in the amount of EUR 1.9 million. Adjusted for this effect, EBITDA would be EUR 64.7 million and the EBITDA margin 26.4%.

REVENUES FROM SOFTWARE LICENSES ROSE BY 20.9 %

Revenues from software licenses increased to EUR 129.0 million. The Nemetschek Group increased revenues from software licenses in the first nine months by 20.9% to EUR 129.0 million (previous year: EUR 106.7 million). In addition, during the same period, it was possible to raise recurring revenues from software service contracts and rental models by 16.1% to EUR 104.3 million (previous year: EUR 89.9 million). The share of revenues from software licenses compared to total revenues grew slightly from 51.8% to 52.6%.

In terms of region, the revenue impulses originated primarily from abroad. In overseas markets, the Nemetschek Group achieved revenues amounting to EUR 166.0 million, a plus of 20.7% compared to the previous year. The share of revenues from overseas amounted to 67.6%, following 66.8% in the previous year's period. As of September 30, 2016, revenues from within Germany increased by 16.1% to EUR 79.4 million (previous year: EUR 68.4 million).

SUMMARY OF SEGMENTS

The one-time gain of EUR 1.9 million explained above was not allocated to the individual segments due to its non-operative character, and is represented in the segment reporting as a reconciliation.

In the Design segment, the Nemetschek Group generated revenue growth of 13.2% to EUR 162.3 million (previous year: EUR 143.4 million). EBITDA increased over-proportionally compared to revenue by 32.1%, reaching EUR 45.8 million (previous year: EUR 34.7 million). This is equivalent to an operating margin of 28.2%, following 24.2% in the previous year.

In the Build segment, revenues clearly rose compared to those of the previous year due to the continued growth of Bluebeam Software, Inc., reaching EUR 62.0 million (previous year: EUR 43.5 million). Organic growth was supplemented by inorganic effects resulting from the acquisition of the companies Solibri (Finland) as of January 1, 2016 and Design Data (USA) as of August 1, 2016. The EBITDA margin amounted to 18.6% (previous year: 18.5%).

The Manage segment sustained the positive development from the first half of the year and as of September 30, 2016 increased revenues by 19.4% to EUR 5.0 million (previous year: EUR 4.2 million). It was possible to raise the EBITDA margin to 19.3% (previous year: 15.4%).

Revenues in the Media & Entertainment segment increased by 8.3% to EUR 16.1 million in the first nine months of 2016. Based on the year-over-year comparison, the EBITDA margin fell slightly to 39.7% (previous year: 40.6%).

EARNINGS PER SHARE AT EUR 0.94

Operating expenses rose by 14.7% from EUR 172.6 million to EUR 198.0 million. The resulting material expenses grew by EUR 1.0 million to EUR 8.0 million. Personnel expenses increased by 17.7% from EUR 93.2 million to EUR 109.7 million. Depreciation and amortization rose from EUR 12.5 million to EUR 13.6 million as a result of the purchase price allocation of Solibri Oy as well as greater investments in the previous year. Additionally, other operating expenses rose by 11.3% from EUR 60.0 million to EUR 66.7 million.

In the first nine months, the tax rate of the Nemetschek Group amounted to 28.0% (previous year: 31.0%). The reduction is mainly the result of deferred tax expenses on unrealized intra-Group foreign exchange gains incurred in the previous year. The net income for the year (Group shares) amounted to EUR 36.3 million and thus significantly exceeded the previous year's amount of EUR 24.2 million by 49.9%. Thus the earnings per share amounted to EUR 0.94 (previous year: EUR 0.63). Adjusted for the amortization from the purchase price allocation, net income for the year was 43.0% higher at EUR 42.3 million than in the previous year (EUR 29.6 million), and thus the earnings per share reached EUR 1.10 (previous year: EUR 0.77 per share).

OPERATING CASH FLOW AMOUNTS TO EUR 64.5 MILLION

As of September 30, 2016, the Nemetschek Group generated an operating cash flow of EUR 64.5 million, an increase of EUR 32.1% compared to the previous year (previous year: EUR 48.8 million). The rise in operating cash flow is attributable in particular to the 42.6% increase in the net income for the year before taxes. The cash flow from investing activities amounted to EUR –45.8 million (previous year: EUR –8.0 million) and mainly includes payments totaling EUR 40.4 million in connection with acquiring shares of the Design Data Corporation, Nebraska, USA.

The cash flow from financing activities amounted to EUR 1.2 million (previous year: EUR –28.5 million) and mainly includes incoming payments totaling EUR 38.0 million arising from taking out bank loans in connection with the acquisition of Design Data as well as dividend payments amounting to EUR 19.3 million, profit distributions to non-controlling interests totaling EUR 1.2 million and the repayment of bank loans of EUR 15.7 million.

HIGH BALANCE OF CASH AND CASH EQUIVALENTS OF EUR 103.0 MILLION

As of September 30, 2016, the Nemetschek Group had cash and cash equivalents at its disposal amounting to EUR 103.0 million (December 31, 2015: EUR 84.0 million).

Mainly due to higher balances of cash as well as higher trade receivables, current assets increased to EUR 154.8 million (December 31, 2015: EUR 125.9 million). The cause of this rise in trade receivables was the persistently high revenue growth of the Nemetschek Group.

Due to the acquisition of Design Data, non-current assets rose to EUR 285.6 million (December 31, 2015: EUR 253.6 million). Within the scope of the preliminary purchase price allocation, the amount of EUR 12.3 million was recognized for technology/customer base and brand as well as goodwill in the amount of EUR 29.5 million.

EQUITY RATIO AT 41.4 %

Deferred revenues increased by EUR 15.6 million to EUR 57.6 million in line with software service contracts invoiced. The balance sheet total amounted to EUR 440.4 million as of September 30, 2016 (December 31, 2015: EUR 379.5 million). Equity rose to EUR 180.3 million (December 31, 2015: EUR 164.8 million). This resulted in an equity ratio of 41.4%.

EMPLOYEES

As of the reporting date, September 30, 2016, the Nemetschek Group employed a staff of 1,902 (September 30, 2015: 1,708). The increase is mainly attributable to the recruitment planned in several Group companies. The acquisition of Design Data with 62 employees contributed to this increase.

REPORT ON SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

There are no significant changes compared to the information provided in the consolidated financial statements as of December 31, 2015.

OPPORTUNITY AND RISK REPORT

Please see the opportunities and risks described in the Group management report for the year ended December 31, 2015 for details on significant opportunities and risks for the prospective development of the Nemetschek Group. In the interim period there have been no material changes.

REPORT ON FORECASTS AND OTHER STATEMENTS ON PROSPECTIVE DEVELOPMENT

Increased forecast for financial year 2016 confirmed

As a result of the very good business development, the Nemetschek Group confirms the forecast increased at the beginning of October for revenue and EBITDA for the current 2016 financial year. The new forecast anticipates revenue in the range of EUR 338 million to EUR 341 million (previously: EUR 319 million to EUR 325 million). This results in a planned growth in revenue compared to the previous year (EUR 285.3 million) of +18% to +20% (previously: +12% to +14%). Operating EBITDA (adjusted for the positive special effect from the second quarter amounting to EUR 1.9 million) is now expected to be in the range of EUR 89 million to EUR 91 million. This would be an increase compared to the previous year's value (EUR 69.5 million) of +28% to +31% (previous forecast: EUR 77 million to EUR 80 million).

NOTES TO THE INTERIM FINANCIAL STATEMENTS BASED ON IFRS

The interim financial statements of the Nemetschek Group have been prepared in accordance with the International Financial Reporting Standards (IFRS), as required to be applied in the European Union, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and of the Standing Interpretations Committee (SIC). These interim financial statements have been prepared in accordance with the provisions of IAS 34.

The interim financial statements as of September 30, 2016 have not been audited and have not undergone an audit review. The same accounting policies and calculation methods are applied to the interim financial statements as for the consolidated financial statements dated December 31, 2015. Significant changes to the consolidated statement of financial position, the consolidated statement of comprehensive income and the consolidated cash flow statement are detailed in the report on the earnings, financial and asset situation.

The group of companies consolidated is the same as of December 31, 2015, except for the following companies.

Company acquisitions:

||| Design Data Corporation, Nebraska, USA

Effective from August 1, 2016, shares in Design Data Corporation, Nebraska, USA were acquired.

The preliminary purchase price amounted to EUR 42.4 million, within the scope of initial recognition in the consolidated financial statements, the amount of EUR 12.3 million was recognized for technology/customer base and brand as well as goodwill in the amount of EUR 29.5 million. The purchase price allocation as of September 30, 2016 was carried our on the basis of preliminary determinations.

Newly founded:

  • ||| Nemetschek Inc., Maryland, USA
  • ||| SCIA Inc., Maryland, USA

Munich, October 2016

Patrik Heider Sean Flaherty Viktor Várkonyi

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period from January 1 to September 30, 2016 and 2015

STATEMENT OF COMPREHENSIVE INCOME

Thousands of € 3rd Quarter 2016 3rd Quarter 2015 9 months 2016 9 months 2015
Revenues 83,858 70,743 245,386 205,920
Own work capitalized 0 0 7 7
Other operating income 973 726 5,601 3,598
Operating income 84,831 71,469 250,994 209,525
Cost of materials /cost of purchased services –2,918 –2,481 –7,953 –6,940
Personnel expenses –38,507 –32,295 –109,713 –93,206
Depreciation of property, plant and equipment and
amortization of intangible assets
–4,721 –4,224 –13,552 –12,475
thereof amortization of intangible assets due
to purchase price allocation
–2,874 –2,538 –8,258 –7,603
Other operating expenses –22,398 –19,868 –66,735 –59,976
Operating expenses –68,544 –58,868 –197,953 –172,597
Operating results (EBIT) 16,287 12,601 53,041 36,928
Interest income 55 35 103 128
Interest expenses –211 –145 –656 –493
Share of results of associated companies –32 –40 –105 54
Other financial income –6 0 –11 113
Earnings before taxes (EBT) 16,093 12,451 52,372 36,730
Income taxes –3,669 –3,425 –14,671 –11,370
Net income for the year 12,424 9,026 37,701 25,360
Other comprehensive income:
Difference from currency translation 796 –1,228 –1,368 7,996
Subtotal of items of other comprehensive income
that will be reclassified to income in future periods
796 –1,228 –1,368 7,996
Gains/losses on revaluation of defined benefit pension plans –319 484 –450 –104
Tax effect 89 –136 126 29
Subtotal of items of other comprehensive income that
will not be reclassified to income in future periods
–230 348 –324 –75
Subtotal other comprehensive income 566 –880 –1,692 7,921
Total comprehensive income for the year 12,990 8,146 36,009 33,281
Net profit or loss for the period attributable to:
Equity holders of the parent 12,075 8,695 36,263 24,194
Non-controlling interests 349 332 1,438 1,166
Net income for the year 12,424 9,027 37,701 25,360
Total comprehensive income for the year
attributable to:
Equity holders of the parent 12,719 7,713 34,731 31,807
Non-controlling interests 271 433 1,278 1,474
Total comprehensive income for the year 12,990 8,146 36,009 33,281
Earnings per share (undiluted) in euros 0.31 0.23 0.94 0.63
Earnings per share (diluted) in euros 0.31 0.23 0.94 0.63
Average number of shares outstanding (undiluted, units) 38,500,000 38,500,000 38,500,000 38,500,000
Average number of shares outstanding (diluted, units) 38,500,000 38,500,000 38,500,000 38,500,000

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of September 30, 2016 and December 31, 2015

STATEMENT OF FINANCIAL POSITION

ASSETS
Thousands of €
September 30, 2016 December 31, 2015
Current assets
Cash and cash equivalents 103,033 83,966
Trade receivables, net 36,905 29,611
Inventories 603 530
Tax refunded claims for income taxes 2,604 2,467
Other current financial assets 97 78
Other current assets 11,534 9,297
Current assets, total 154,776 125,949
Non-current assets
Property, plant and equipment 13,886 13,792
Intangible assets 103,976 100,761
Goodwill 163,239 134,949
Investments in associates and non-current available-for-sale assets 1,808 1,863
Deferred tax assets 1,713 1,372
Non-current financial assets 43 51
Other non-current assets 951 793
Non-current assets, total 285,616 253,581
Total assets 440,392 379,530
EQUITY AND LIABILITIES
Thousands of €
September 30, 2016 December 31, 2015
Current liabilities
Short-term loans and current portion of long-term loans 26,144 18,577
Trade payables 5,869 6,590
Provisions and accrued liabilities 29,183 25,619
Deferred revenue 57,624 41,996
Income tax liabilities 6,455 3,707
Other current financial obligations 536 571
Other current liabilities 10,937 7,086
Current liabilities, total 136,748 104,146
Non-current liabilities
Long-term loans without current portion 76,731 62,059
Deferred tax liabilities 23,710 24,315
Pensions and related obligations 2,146 1,744
Non-current financial obligations 13,160 13,732
Other non-current liabilities 5,383 6,617
Non-current liabilities, total 121,130 108,467
Equity
Subscribed capital 38,500 38,500
Capital reserve 12,485 12,485
Retained earnings 133,118 116,345
Other comprehensive income –3,803 –2,498
Equity (Group shares) 180,300 164,832
Non-controlling interests 2,214 2,085
Equity, total 182,514 166,917
Total equity and liabilities 440,392 379,530

CONSOLIDATED CASH FLOW STATEMENT

for the period from January 1 to September 30, 2016 and 2015

CONSOLIDATED CASH FLOW STATEMENT

Thousands of € 2016 2015
Profit (before tax) 52,372 36,730
Depreciation and amortization of fixed assets 13,552 12,475
Change in pension provision –48 40
Other non-cash transactions –302 –12
Portion of the result of non-controlling interests 105 –54
Result from disposal of fixed assets 228 110
Cash flow for the period 65,907 49,289
Interest income –103 –128
Interest expenses 656 493
Change in other provisions 2,000 312
Change in trade receivables –4,137 649
Change in other assets –1,563 1,359
Change in trade payables –838 –1,164
Change in other liabilities 14,286 8,432
Interest received 76 126
Income taxes received 1,403 1,005
Income taxes paid –13,172 –11,527
Cash flow from operating activities 64,515 48,846
Capital expenditure –5,691 –5,716
Cash received from the disposal of fixed assets 308 133
Cash paid for the purchase of consolidated companies and other
business combinations net of cash aquired
–40,399 –2,418
Cash flow from investing activities –45,782 –8,001
Dividend payments –19,250 –15,400
Cash paid to non-controlling interests –1,162 –2,044
Cash received from bank loans 38,000 0
Repayment of borrowings –15,700 –9,000
Interest paid –650 –488
Purchase of non-controlling interests 0 –1,577
Cash flow from financing activities 1,238 –28,509
Changes in cash and cash equivalents 19,971 12,336
Effect of exchange rate differences on cash and cash equivalents –904 2,215
Cash and cash equivalents at the beginning of the period 83,966 56,968
Cash and cash equivalents at the end of the period 103,033 71,519

CONSOLIDATED SEGMENT REPORTING

for the period from January 1 to September 30, 2016 and 2015

SEGMENT REPORTING

2016 Thousands of € Total Elimination/
Reconciliation
Design Build Manage Media &
Entertainment
Revenue, external 245,386 162,321 61,965 4,967 16,133
Intersegment revenue –1,668 0 549 5 1,114
Total revenue 245,386 –1,668 162,321 62,514 4,972 17,247
EBITDA 66,593 1,900 45,786 11,549 960 6,398
Depreciation/amortization –13,552 –5,242 –7,990 –39 –281
Segment operating result
(EBIT)
53,041 1,900 40,544 3,559 921 6,117

The reconciliation item kEUR 1,900 results from an on-time effect, which could not be allocated to the segments

SEGMENT REPORTING

2015 Thousands of € Total Elimination Design Build Manage Media &
Entertainment
Revenue, external 205,920 143,395 43,465 4,161 14,899
Intersegment revenue –1,428 1 378 5 1,044
Total revenue 205,920 –1,428 143,396 43,843 4,166 15,943
EBITDA 49,403 34,668 8,048 639 6,048
Depreciation/amortization –12,475 –5,709 –6,495 –34 –237
Segment operating result
(EBIT)
36,928 28,958 1,554 606 5,810

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period from January 1 to September 30, 2016 and 2015

STATEMENT OF CHANGES IN EQUITY

Equity attributable to the parent company's shareholders
Thousands of € Subscribed
capital
Capital reserve Retained
earnings
currency
conversion
Total Non-controlling
interests
Total
equity
As of January 1, 2015 9,625 41,360 96,621 –12,625 134,981 1,595 136,576
Difference from
currency translation
7,665 7,665 331 7,996
Remeasurement gains/
losses from pensions and
related obligations
–52 –52 –23 –75
Net income for the year 24,194 24,194 1,166 25,360
Total comprehensive
income for the year
0 0 24,142 7,665 31,807 1,474 33,281
Increase of share capital
through corporate funds
28,875 –28,875
Share purchase from
non-controlling interests
–543 –543 537 –6
Dividend payments to
non-controlling interests
–202 –202 –1,842 –2,044
Dividend payment –15,400 –15,400 –15,400
As of September 30, 2015 38,500 12,485 104,618 –4,960 150,643 1,764 152,407
As of January 1, 2016 38,500 12,485 116,345 –2,498 164,832 2,085 166,917
Difference from
currency translation
–1,305 –1,305 –63 –1,368
Remeasurement gains/
losses from pensions and
related obligations
–227 –227 –97 –324
Net income for the year 36,263 36,263 1,438 37,701
Total comprehensive
income for the year
0 0 36,036 –1,305 34,731 1,278 36,009
Acquisition of non
controlling interests
Dividend payments to
non-controlling interests
–13 –13 –1,149 –1,162
Dividend payment –19,250 –19,250 –19,250
As of September 30, 2016 38,500 12,485 133,118 –3,803 180,300 2,214 182,514

Financial Calendar 2016

Contact

Nemetschek SE, Munich Investor Relations, Konrad-Zuse-Platz 1, 81829 Munich

Contact: Stefanie Zimmermann, Head of Investor Relations and Corporate Communication Tel. +49 89 92793-1229, Fax +49 89 92793-4229 E-Mail: [email protected]

NEMETSCHEK SE Konrad-Zuse-Platz 1 81829 Munich Tel. +49 89 92793-0 Fax +49 89 92793-5511 [email protected] www.nemetschek.com

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