Company Presentation Nemetschek Group
January 15, 2014
Who we are
History
- Company foundation: 50 years ago by Prof. Georg Nemetschek
- Innovation: Computer Aided Design (CAD) software replaced drawing board
Today
- Nemetschek Group with 12 strong brands
- Solutions, innovations and BIM* for AECM (Architecture, Engineering, Construction, Management)
-
1.1 million users in 142 countries
Mission
- Offer the most innovative, best tools, workflows and open-collaboration solutions
- Become worldwide market leader for Open BIM solutions in AECM
We drive innovation and digitalization for the entire building life cycle
What makes us so special
- Nemetschek: Only listed company covering complete value chain in AECM and multimedia
- Strong, entrepreneurial brands: Close involvement with customers, speed, excellence, innovation
- Strategic added value: Complementarity, specialization and best in class instead of shared services
- Attractive for potential targets: Integration of different cultures
Agenda
Nemetschek Group: In brief
Strategy
- Internationalization
- Industry mega trends
- Innovations
Financial data and Q3 highlights
Nemetschek share
Why invest?
What drives our growth
- Growth: Organic and via acquisitions
- Acquisition focus: Strategic fit to close regional and technology gaps
Successful acquisition of Data Design System
Facts
- Based in Norway, branches in Germany Austria and The Netherlands
- With around 90 employees DDS serves 13,500 customers worldwide
- FY 2012: Revenues of ~8.7 mEUR, operating result of ~1.5 mEUR
DDS solution portfolio
- Leading CAD software provider for intelligent building planning
- Solutions for mechanical, electrical, plumbing (MEP), heating, ventilation, air conditioning
- All DDS-CAD solutions support Open BIM planning processes
- Member of Open BIM initiative
- Nemetschek extends portfolio with strategic MEP solutions for building process
- DDS remains strong individual brand
- Together we strengthen our home base and expand international footprint
- Clear fit between Nemetschek and DDS
International revenue split 1
YTD 2013 in % of revenues
- Market leader in core markets DACH
- Market position in Americas and Asia established
- Growth potential abroad
Internationalization: Regions on the agenda 1
- Strengthening our position in the Americas, Asia, Northern and Eastern Europe
- Markets with strong growth prospects and increasing demand
-
Leverage via co-operations, acquisitions and early-stage occupation
-
Where it is all going? BIM Building Information Modeling
- Building Information Modeling Central topic in the entire lifecycle of the building process is today the so-called BIM
- Pioneer of BIM idea Nemetschek has followed this holistic philosophy for almost 30 years and revolutionized the collaboration process in the construction industry
-
- Capabilities of BIM 3D visualization and building simulation
- Intelligent elements as digital prototypes
- Better understanding of building "behavior"
- Data management (cost, time management etc.)
Nemetschek: Pioneer of BIM idea
Mega trends: Clear focus on BIM 2
BIM universal approach to collaborative design, realization and operation of buildings
Numerous advantages through BIM for all stakeholders in the building life cycle
- Open BIM allows real collaboration in contrast to a closed platform
- No one excluded, bigger market, more business
- Reflects modern way of working and thinking in the connected world today
Innovations: Example 3
Goal: primary online cloud-based platform for building projects
3 Innovations: Example
IFC, SketchUp, Allplan, Scia, Vectorworks, Graphisoft, Revit …
- The simplest way to store, share, visualize and connect building information
- Version 1.0 has started in November 2013
3 Innovations: Example Cineware by Maxon
In new dimensions!
Red Bull Media House visualized by Cinema 4D
- Leading developer of 3D software for creative industries
- Top customers: BMW, CNN, Sony Pictures, Disney, Vitra, many more
- Well known for powerful features, rock-solid stability, ease-of-use and fast workflow
- Supported by over 150 distributors and resellers in over 80 countries
Cutting edge software solution for visual effects, motion graphics and 3D visualization
3 Innovations: Example Cineware by Maxon
- Strategic partnership since March 2013
- Marketing and development cooperation
- 1st product: CINEWARE Live 3D-Pipeline between After Effects and CINEMA 4D
- Reducing file import and export by 90% huge time savings
- Mega brand Adobe has chosen Maxon as exclusive partner
- Promising cooperation
- Access to new customers and international markets
Agenda
Nemetschek Group: In brief
Strategy
Financial data and Q3 highlights
Nemetschek share
Why invest?
Highlights in the first nine months 2013
Growth factors
- Group revenues up by 5.1%
- Maintenance revenues up by 8.9%
- International markets gained momentum
High profitability
- EBITDA increased by 12.1% to 31.8 mEUR; high EBITDA margin at 23.7%
- Net income (group shares) with strong growth (+24.5%) at 16.2 mEUR
- EPS at 1.68 EUR, EPS w/o PPA at 2.17 EUR
New executive board
- Dr. Tobias Wagner, Interim, as of 29/08/2013
- Viktor Várkonyi (CEO Graphisoft) and Sean Flaherty (CEO Vectorworks) as of 01/11/2013
- New Financial and Operational Executive Manager (CFOO) Patrik Heider as of 01/03/2014
- New management will drive internationalization, innovations, growth and profitability
Brands and projects (excerpt)
- New management team completed to implement future growth strategy
- Release of Allplan version 2014 in November: Better 3D modeling, comprehensive collaboration and usability, direct connection to cloud-based bim+ platform
-
Focus: Planning and development of new releases, expand solution portfolio, strengthening agile development processes, integration of SaaS solutions (Nevaris, bim+), stronger international positioning
-
Open cloud based platform for the building industry, providing the simplest way to store, share, visualize and connect building information
- bim+ uses best technologies for web, cloud, apps and mobile devices to help all participants in building processes to build faster and better
- Go-live in November
Brands and projects (excerpt)
New release of BIM software ArchiCAD 17 (26 country-specific versions)
- Foundation of Graphisoft Mexico as South & Central American regional hub
- New versions: BIMx Hyper-Model mobile app, EcoDesigner STAR, BIM Cloud Enterprise solution
New release CAD software Vectorworks 2014: more than 130 improvements, e.g. new BIM tools for architects, increased site design capabilities, better documentation, graphic tools
New version of Adobe After Effects with "lite" version of CINEMA 4D
New CINEMA 4D Release 15 with improved 3D motion graphics, visual effects, painting and rendering software workflow
Solid revenue development
in mEUR
Q3 2013 shows stronger growth with 5.8% than previous quarters
YTD 2013 with 5.1% in range of expectations
Strong growth of maintenance contracts
- Maintenance up by 8.9% yoy leads to higher recurring revenues
- Stable licenses business, up by 1.5% yoy
EBITDA well above previous year
EBITDA increased over proportional compared with revenues
EBITDA margin with 23.7% on high level
Strong EPS development
- Strong increase in earnings
- Net result up by 24.5% to 16.2 mEUR
- EPS at 1.68 EUR (24.5% yoy)
- EPS w/o PPA up by 17.9% at 2.17 EUR
Net cash development
Operating cash flow increased by 8.9% to 28.7 mEUR
- CapEx 3.9 mEUR in line with forecast (~6 mEUR in FY 2013)
Dividend payment 11.1 mEUR in Q2
Cash position 55.4 mEUR (+25.2% YTD)
| mEUR |
9M
2012 |
9M
2013 |
%
YoY |
|
|
|
|
|
|
| EBITDA |
28.4 |
31.8 |
+12.1% |
|
|
24,8 |
-11,1 |
-2,6 |
|
Operating
cash flow |
26.3 |
28.7 |
+8.9% |
|
|
|
|
|
|
| Conversion rate* |
93% |
90% |
|
|
44,3 |
|
|
|
55,4 |
| Investing cash flow |
-4.4 |
-3.9 |
-11.4% |
|
|
|
|
|
|
| Free cash flow |
22.0 |
24.8 |
+13.0% |
|
Net cash
2012 |
Free cash
flow 9M
2013 |
Dividend
payout
2013 |
Other |
Net cash
9M 2013 |
|
|
|
|
|
|
|
|
|
|
High cash position enables further growth organically and via acquisitions
Segment overview
Agenda
Nemetschek Group: In brief
Strategy
Financial data and Q3 highlights
Nemetschek share
Why invest?
Shareholder structure
- Founded: in 1963
- IPO: March 10, 1999
- Number of shares: 9,625,000
- Frankfurt Stock Exchange, Prime Standard
- Bloomberg: NEM GY, Reuters: NEKG.DE
- Shares Nemetschek family: 53.57%
- Freefloat: 46.43 percent
- Current MarketCap: ~ 515 mEUR
- Current TecDAX Ranking: 25/31
- Prof. Georg Nemetschek
- Nemetschek Vermögensverwaltungs GmbH & Co KG
- Free float
Nemetschek share price performed better than indices
Inclusion in the TecDAX improves visibility
Agenda
Nemetschek Group: In brief
Strategy
Financial data and Q3 highlights
Nemetschek share
Why invest?
Very good reasons
Market conditions • Robust development of construction markets
- Strong growth expected for BIM products and solutions
- Strategic market Clear focus on AECM market
- positioning Leading in Open BIM solutions
Healthy financial • High margin business
- Strong cash generation
- Healthy balance sheet
Growth potential • Integrated process: Design, build and manage buildings, infrastructure
- Strengthen Nemetschek's position abroad
- Capable of investing in inorganic growth
- Driving innovations for an industry whose transformation has just begun
- FY 2013(e): Revenue growth of ~ 6%, EBITDA margin 22 24%
IR calendar 2014 and contact
- 28/03/2014 Publication Annual Report 2013
- 30/04/2014 Publication Q1 2014
- 20/05/2014 AGM, Munich
- 31/07/2014 Publication Q2 2014
- 30/10/2014 Publication Q3 2014
Contact: Stefanie Zimmermann Investor Relations +49 89 92793 1229 [email protected]
Disclaimer
This presentation contains forward-looking statements based on the beliefs of Nemetschek AG management. Such statements reflect current views of Nemetschek AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general 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. Nemetschek AG does not intend or assume any obligation to update these forward-looking statements.