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Nemetschek SE
Investor Presentation • Nov 7, 2024
301_ip_2024-11-07_3ab88b91-fb19-481f-889e-102ff6436733.pdf
Investor Presentation
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Earnings Call Q3- / 9M-24
Nemetschek Group
November 07, 2024
- Q3- / 9M-24: Continued strong growth with a high profitability in Q3. As expected, Design growth was impacted by high comparison base and subscription transition while Build started to accelerate growth.
Strong operational development in first nine months in line with plans. - GoCanvas: Successful start of integration. Good underlying operational performance in Q3 in line with expectations and impacted by PPA-related accounting effects.
- Subscription Transition: Strong recurring revenue development driven by move to subscription and SaaS. Transition in Design segment progressing as expected while the migration of Bluebeam will be nearly completed as planned by the end of FY-24.
- Outlook FY-24: Based on the strong results of the first nine months and the expected very strong growth in Build in Q4, the organic and extended outlook for FY24 are fully confirmed.
Q3-24: Strong Profitable Growth in a Continued Challenging Environment
ARR
EURm
Q3-23
Q3-24
- ARR organic ${ }^{2}$ growth: $+25.2 \% \mathrm{y} / \mathrm{y}$
- Ongoing high growth in ARR shows continued high sustainable revenue growth for the next 12 months
- Subscription/SaaS revenue accelerated $+94.3 \% \mathrm{y} / \mathrm{y}$ ( $+77.5 \%$ organic)
04 Nemetschek Group | Earnings Call Q3- / 9M-24
Revenues
EURm
Q3-23
Q3-24
- Revenue organic growth: $+8.9 \%$ $\mathrm{y} / \mathrm{y}\left(+9.6 \% \mathrm{cc}^{1}\right)$
- Unchanged economic environment in our end-markets
- Growth continues to be impacted by accounting-related subscription/ SaaS transition effects
EPS
EUR
- EBITDA margin: $30.1 \%$ due currently still lower profitability of GoCanvas
- Organic EBITDA margin³: $32.2 \%$
1 Constant currency; 2 Excl. effect from GoCanvas; 3 Excl. dilution from GoCanvas.
EPS
EUR
- EPS decline driven by higher interest expense due to financing and amortization of GoCanvas
- EPS before PPA amortization: EUR 0.44 (Q3-23: 0.44)
Update on GoCanvas Acquisition
Status Quo as of Q3-24
Integration and operational performance of GoCanvas progressing as planned
Next Steps
Go-to-Market
- $\quad$ Start of training and collaboration of GoCanvas \& Bluebeam sales teams
- Prepare international expansion of GoCanvas outside of North America
- Define route to cross-sell GoCanvas to Bluebeam customers, e. g. launch GoCanvas with Bluebeam channel partner
Integration:
- Integration of back-office functions such as Finance, Human Resources, IT
- Check for potential vectors of technical integration
Culture \& HR:
- GoCanvas becoming part of the Nemetschek Group Family
- Cultural enrichment, collaboration, and extended career paths
Overview Financial Results
9M-24
Key Financial Highlights 9M-24: Successful First Nine Month of the Year
Segments 9M-24: Design and Build Segments remain Main Growth Drivers
Recurring Revenues: Successful Transition leads to New Record High of 86\%
Revenue Share by type in \%
Recurring revenues (Software services (32\%); Subscription/SaaS (54\%)) Licenses $\square$ Consulting \& Hardware
Overview Q3-24:
NEMETSCHEK
GROUP
At a Glance: Income Statement and Important KPIs
| Key Figures mEUR | 9M-241 | In \% of revenue | 9M-23 | Growth y/y |
|---|---|---|---|---|
| Revenues | 794.7 | 100\% | 632.0 | $+11.5 \%$ |
| Cost of goods and services | $-29.9$ | $4.2 \%$ | $-25.0$ | $+20.0 \%$ |
| Personnel expenses | $-293.8$ | $41.7 \%$ | $-271.2$ | $+8.3 \%$ |
| Other operating income/expenses | $-175.0$ | $24.8 \%$ | $-147.3$ | $+18.8 \%$ |
| EBITDA | 205.9 | 29.2\% | 188.5 | $+9.2 \%$ |
| EBITDA margin | 29.2\% | - | 29.8\% | -60bps |
| Organic EBITDA margin ${ }^{2}$ | 29.9\% | - | 29.8\% | $+10 b p s$ |
| D\&A (incl. PPA) | $-45.4$ | $6.4 \%$ | $-44.6$ | $+1.8 \%$ |
| EBIT | 160.5 | 22.8\% | 143.9 | $+11.5 \%$ |
| EBIT margin | 22.8\% | - | 22.8\% | $+1 b p s$ |
| Net income (group shares) | 123.6 | $17.6 \%$ | 114.1 | $+8.5 \%$ |
| EPS | 1.07 | - | 0.99 | $+8.5 \%$ |
| EPS (before PPA) | 1.26 | - | 1.14 | $+10.1 \%$ |
| FCF (before M\&A) | 196.6 | - | 178.3 | $+10.4 \%$ |
| Equity ratio in \% | 39.1\% | - | 61.4\% | $-2,230 b p s$ |
| Net Cash | $-369.5$ | - | 223.1 | ->100\% |
10 Nemetschek Group | Earnings Call Q9- / 9M-24 1 Incl. effect from GoCanvas; 2 Excluding dilution from GoCanvas
Guidance 2024: Organic and Expanded (incl. GoCanvas) Guidance fully confirmed
Additional Information Guidance 2024:
1) The statements on the effects of the acquisition on the 2024 financial year are subject to the proviso that important key figures, including the calculation of the purchase price allocation (PPA) for GoCanvas, will not be finalized until later in the year.
2) The guidance is based on the assumption that the global macroeconomic or sector-specific conditions will not deteriorate significantly in 2024. Furthermore, no additional potential negative effects from the current developments in the Middle East conflict and the ongoing war in Ukraine are reflected in the outlook.
Q5
Appendix
Income Statement
| €m | 9M 2024 | 9M 2023 | Y/Y\% |
|---|---|---|---|
| Revenues | 704.7 | 632.0 | $+11.5 \%$ |
| Other income | 7.7 | 6.4 | $+18.9 \%$ |
| Operating income | 712.3 | 638.4 | $+11.6 \%$ |
| Cost of goods and services | $-29.9$ | $-25.0$ | $+20.0 \%$ |
| Personnel expenses | $-293.8$ | $-271.2$ | $+8.3 \%$ |
| Other expenses | $-182.7$ | $-271.2$ | $+18.8 \%$ |
| Operating expenses | $-506.4$ | $-449.9$ | $+12.6 \%$ |
| EBITDA | 205.9 | 188.5 | $+9.2 \%$ |
| Margin | 29.2\% | 29.8\% | |
| Depreciation and amortization | $-45.4$ | $-44.6$ | $+1.8 \%$ |
| to right-of-use assets | $-12.9$ | $-12.5$ | $+2.7 \%$ |
| to PPA | $-22.8$ | $-23.1$ | $-1.3 \%$ |
| EBIT | 160.5 | 143.9 | $+11.5 \%$ |
| Financial result | $-0.3$ | $-0.6$ | $+52.0 \%$ |
| to IFRS 16 | $-1.5$ | $-1.4$ | $+2.7 \%$ |
| EBT | 160.2 | 144.5 | $+10.8 \%$ |
| Income taxes | $-33.8$ | $-28.4$ | $+19.2 \%$ |
| Non-controlling interests | 2.6 | 2.0 | $+28.1 \%$ |
| Net income (group shares) | 123.8 | 114.1 | $+8.5 \%$ |
| EPS in EUR | 1.07 | 0.99 | $+8.5 \%$ |
Balance Sheet - Assets
| €m | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 262.4 | 268.0 |
| Trade receivables, net | 135.1 | 99.6 |
| Inventories | 1.1 | 1.0 |
| Other current assets | 67.5 | 49.6 |
| Current assets, total | 466.1 | 418.2 |
| Property, plant and equipment | 22.5 | 23.7 |
| Right-of-use assets | 52.2 | 60.9 |
| Intangible assets | 275.0 | 135.1 |
| Goodwill | $1,170.5$ | 552.0 |
| Other non-current assets | 102.5 | 84.3 |
| Non-current assets, total | 1,622.7 | 856.1 |
| Total assets | 2,088.8 | 1,274.3 |
Balance Sheet - Equity and Liabilities
| €m | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 631.9 | 6.8 |
| Trade payables | 16.5 | 15.3 |
| Provisions and accrued liabilities | 71.5 | 65.7 |
| Deferred revenue | 355.6 | 265.1 |
| Current lease liability | 15.2 | 16.7 |
| Other current liabilities | 40.2 | 31.0 |
| Current liabilities, total | 1,130.8 | 400.6 |
| Long-term borrowings without current portion | 0.0 | 0.1 |
| Deferred tax liabilities | 57.0 | 16.7 |
| Non-current lease liability | 45.9 | 52.8 |
| Other non-current liabilities | 38.1 | 22.2 |
| Non-current liabilities, total | 141.1 | 91.8 |
| Subscribed capital and capital reserve | 128.0 | 128.0 |
| Retained earnings | 711.2 | 640.8 |
| Other reserves | $-58.4$ | $-22.2$ |
| Non-controlling interests | 36.1 | 35.3 |
| Equity, total | 816.9 | 781.9 |
| Total equity and liabilities | 2,088.8 | 1,274.3 |
Cash Flow Statement
| €m | 9M 2024 | 9M 2023 | Y/Y\% |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 268.0 | 196.8 | $+36.2 \%$ |
| Cash flow from operating activities | 205.9 | 186.9 | $+10.2 \%$ |
| Cash flow from investing activities | $-691.5$ | $-23.3$ | $->100 \%$ |
| t/o CapEX | $-9.2$ | $-8.9$ | |
| t/o Cash paid for acquisition of equity investments | $-6.1$ | $-13.4$ | |
| Cash paid for acquisition of subsidiaries, net of cash acquired | $-676.3$ | 0.0 | |
| Cash flow from financing activities | $-691.5$ | $-23.3$ | $->100 \%$ |
| t/o Dividend payments | $-55.4$ | $-52.0$ | |
| t/o Cash received from bank loans | 631.0 | 21.2 | |
| t/o Repayments of borrowings | $-73.2$ | $-65.6$ | |
| t/o Principal elements of lease payments | $-13.2$ | $-12.7$ | |
| FX-effects | $-1.6$ | $+0.7$ | |
| Free cash flow | $-485.6$ | 163.5 | $->100 \%$ |
| Free cash flow (before M\&A) ${ }^{1}$ | 196.8 | 178.3 | $+10.4 \%$ |
| Cash and cash equivalents at the end of the period | 262.4 | 248.0 | $+5.8 \%$ |
SHAPE THE WORLD
NEMETSCHEK SE
Investor Relations
Konrad-Zuse-Platz 1
81829 Munich
Germany
[email protected] www.nemetschek.com
Disclaimer
This presentation contains forward-looking statements based on the beliefs of Nemetschek SE management.
Such statements reflect current views of Nemetschek SE 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 SE does not intend or assume any obligation to update these forward-looking statements.