AI Terminal
Nemetschek SE
Investor Presentation • Jul 31, 2024
301_ip_2024-07-31_438f5c79-9f66-4ba1-b588-d0cf58f73c94.pdf
Investor Presentation
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Earnings Call Q2- / H1-24
Nemetschek Group
July 31, 2024
- GoCanvas: Highly value-generating acquisition of GoCanvas progressing as expected with closing as of July 1, 2024.
- Q2-24: Continued high growth driven by strong recurring revenue development in Design and Build segments.
Profitability impacted by one-off costs in connection with M\&A activities. - H1-24: Successful operational development in line with plans. Substantial progress on our journey to a subscription and SaaS centric business model in all segments.
- Outlook FY-24: Expanded outlook for FY 2024 following the acquisition of GoCanvas - while fully confirming our organic guidance.
Q2-24: Recurring Business Driven by +83\% Growth in Subscription \& SaaS Revenue
ARR
EURm
$+26.5 \%$
$+26.2 \% \mathrm{cc}^{1}$
Q2-23
Q2-24
- Ongoing strong increase in ARR shows continued high sustainable revenue growth for the next 12 months
-
Subscription/SaaS revenue accelerated in Q2 and remains main growth driver: $+82.9 \%\left(+82.2 \% \mathrm{cc}^{1}\right)$
-
Q2 revenue growth in line with plans
- Growth impacted by accountingrelated subscription/
SaaS transition effects and unchanged markets environment
$+9.7 \%$
$+9.7 \% \mathrm{cc}^{1}$
Q2-23
Q2-24
Q2 revenue growth in line with plans
- Growth impacted by accountingrelated subscription/
SaaS transition effects and unchanged markets environment
EBITDA
EURm
EPS
EUR
- Q2-24: EBITDA margin: 27.0\% (Q2-23: 27.0\%)
- Adjusted EBITDA margin*: 29.4\%
- Impacted by subscription/SaaS transition \& one-offs in connection with M\&A (mid-singledigit million EUR amount)
- Adjusted for M\&A-related costs
EPS
EUR
NEMETSCHEK
GROUP
Strategic Highlights First Half 2024
M\&A and Start-up Investments
- Acquisition of GoCanvas:
- Highly value-generating due to complementary technologies, customer bases, and regional sales structures
- Significant synergy potential by combining Bluebeam office and GoCanvas field worker communities
Business Model
- Subscription/SaaS Transition progressing as planned
- Record share of $85 \%$ in recurring revenues driven by high growth of subscription/SaaS
Innovation \& Technological Leadership
- Launch of Nemetschek Group AI Innovation Hub to accelerate and streamline the adoption of AI initiatives for external and internal use cases
- Launch of various AI features across different brands
- First successful use cases of dTwin
Go-to-market
- Driving internationalization: Opening of a new local Go-to-Market office in Mumbai, India
- Strengthening of cross-selling activities
Business Enablement
- Further harmonization and continued build-up to enable future growth journey
- Enhanced operational excellence
Overview Financial Results H1-24
Key Financial Highlights H1-24: Successful First Half of the Year 2024
- Adjusted for M\&A-related costs
Segments H1-24: Design and Build Segments Main Growth Drivers
Recurring Revenues: Successful Transition Leads to New Record High of 85\%
Revenue Share
by type in \%
Recurring revenues (Software services (34\%); Subscription/SaaS (51\%)) Licenses $\square$ Consulting \& Hardware
At a Glance: Income Statement and Important KPIs
| Key Figures mEUR | H1-24 | In \% of revenue | H1-23 | Growth y/y |
|---|---|---|---|---|
| Revenues | 451.6 | $100 \%$ | 412.1 | $+9.6 \%$ |
| Cost of goods and services | $-19.2$ | $4.3 \%$ | $-17.0$ | $+13.1 \%$ |
| Personnel expenses | $-189.2$ | $41.9 \%$ | $-182.4$ | $+3.8 \%$ |
| Other operating income/expenses | $-113.5$ | $25.1 \%$ | $-95.7$ | $+18.6 \%$ |
| EBITDA | 129.7 | $28.7 \%$ | 117.1 | $+10.8 \%$ |
| EBITDA margin | $28.7 \%$ | - | $28.4 \%$ | $+30 b p s$ |
| Adj. EBITDA margin* | $30.0 \%$ | - | $28.4 \%$ | $+160 b p s$ |
| D\&A (incl. PPA) | $-27.1$ | $6.0 \%$ | $-29.7$ | $-8.8 \%$ |
| EBIT | 102.8 | $22.7 \%$ | 87.4 | $+17.5 \%$ |
| EBIT margin | $22.7 \%$ | - | $21.2 \%$ | $+150 b p s$ |
| Net income (group shares) | 84.5 | $18.7 \%$ | 69.1 | $+22.3 \%$ |
| EPS | 9.73 | - | 8.60 | $+22.3 \%$ |
| FCF (before M\&A) | 135.6 | - | 114.7 | $+18.2 \%$ |
| Equity ratio in \% | $59.0 \%$ | - | $57.5 \%$ | $+150 b p s$ |
| Net Cash | 306.7 | - | 168.3 | $+82.2 \%$ |
OZ
Outlook
Guidance 2024: Organic Guidance Confirmed \& Expanded by GoCanvas
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.
Appendix
Income Statement
| €m | H1 2024 | H1 2023 | Y/Y\% |
|---|---|---|---|
| Revenues | 451.6 | 412.1 | $+9.6 \%$ |
| Other income | 4.4 | 3.6 | $+20.3 \%$ |
| Operating income | 456.0 | 415.8 | $+9.7 \%$ |
| Cost of goods and services | $-19.2$ | $-17.0$ | $+13.1 \%$ |
| Personnel expenses | $-189.2$ | $-182.4$ | $+3.8 \%$ |
| Other expenses | $-117.9$ | $-99.4$ | $+18.7 \%$ |
| Operating expenses | $-326.3$ | $-298.7$ | $+9.2 \%$ |
| EBITDA | 129.7 | 117.1 | $+10.8 \%$ |
| Margin | 28.7\% | 28.4\% | |
| Depreciation and amortization | $-27.1$ | $-29.7$ | $-8.8 \%$ |
| t/o right-of-use assets | $-8.4$ | $-8.3$ | $+0.8 \%$ |
| t/o PPA | $-12.3$ | $-15.4$ | $-20.3 \%$ |
| EBIT | 102.6 | 87.4 | $+17.5 \%$ |
| Financial result | 6.7 | 0.8 | $+>100 \%$ |
| t/o IFRS 16 | $-1.0$ | $-0.9$ | $+9.4 \%$ |
| EBT | 109.3 | 88.1 | $+24.1 \%$ |
| Income taxes | $-23.3$ | $-17.9$ | $+30.2 \%$ |
| Non-controlling interests | 1.5 | 1.1 | $+36.2 \%$ |
| Net income (group shares) | 84.5 | 69.1 | $+22.3 \%$ |
| EPS in EUR | 0.73 | 0.60 | $+22.3 \%$ |
Balance Sheet - Assets
| €m | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 309.8 | 268.0 |
| Trade receivables, net | 130.1 | 99.6 |
| Inventories | 0.9 | 1.0 |
| Other current assets | 70.5 | 49.6 |
| Current assets, total | 511.3 | 418.2 |
| Property, plant and equipment | 23.0 | 23.7 |
| Right-of-use assets | 56.0 | 60.9 |
| Intangible assets | 139.5 | 135.1 |
| Goodwill | 571.0 | 552.0 |
| Other non-current assets | 96.0 | 84.3 |
| Non-current assets, total | 885.3 | 856.1 |
| Total assets | 1,396.7 | 1,274.3 |
Balance Sheet - Equity and Liabilities
| $\epsilon_{\text {m }}$ | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 3.1 | 6.8 |
| Trade payables | 20.9 | 15.3 |
| Provisions and accrued liabilities | 61.7 | 65.7 |
| Deferred revenue | 334.8 | 265.1 |
| Current lease liability | 15.8 | 16.7 |
| Other current liabilities | 34.3 | 31.0 |
| Current liabilities, total | 470.6 | 400.6 |
| Long-term borrowings without current portion | 0.0 | 0.1 |
| Deferred tax liabilities | 19.2 | 16.7 |
| Non-current lease liability | 49.3 | 52.8 |
| Other non-current liabilities | 33.0 | 22.2 |
| Non-current liabilities, total | 101.6 | 91.8 |
| Subscribed capital and capital reserve | 128.0 | 128.0 |
| Retained earnings | 671.2 | 640.8 |
| Other reserves | $-11.3$ | $-22.2$ |
| Non-controlling interests | 36.6 | 35.3 |
| Equity, total | 824.5 | 781.9 |
| Total equity and liabilities | 1,396.7 | 1,274.3 |
Cash Flow Statement
| €m | H1 2024 | H1 2023 | Y/Y\% |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 268.0 | 196.8 | $+36.2 \%$ |
| Cash flow from operating activities | 141.5 | 122.2 | $+15.8 \%$ |
| Cash flow from investing activities | $-31.5$ | $-21.9$ | $+43.6 \%$ |
| t/o CapEX | $-6.0$ | $-7.7$ | |
| t/o Cash paid for acquisition of equity investments | $-6.0$ | $-13.3$ | |
| Cash paid for acquisition of subsidiaries, net of cash acquired | $-19.7$ | 0.0 | |
| Cash flow from financing activities | $-72.8$ | $-86.2$ | $-15.5 \%$ |
| t/o Dividend payments | $-55.4$ | $-52.0$ | |
| t/o Cash received from bank loans | 0.0 | 10.5 | |
| t/o Repayments of borrowings | $-3.8$ | $-33.9$ | |
| t/o Principal elements of lease payments | $-8.9$ | $-8.2$ | |
| FX-effects | $+4.7$ | $-1.7$ | |
| Free cash flow | 110.0 | 100.2 | $+9.7 \%$ |
| Free cash flow (before M\&A) ${ }^{1}$ | 135.6 | 114.7 | $+18.2 \%$ |
| Cash and cash equivalents at the end of the period | 309.9 | 209.2 | $+48.1 \%$ |
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.