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Nemetschek SE
Investor Presentation • Apr 30, 2024
301_ip_2024-04-30_80c81cda-9fe0-4627-b5e2-c0491f82aa22.pdf
Investor Presentation
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Earnings Call Q1-24
Nemetschek Group April 30, 2024
Highlights Q1-24
02 Nemetschek Group | Earnings Call Q1-24
Key Messages
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- Successful start to the year 2024 driven by a strong growth in recurring revenues.
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- Demand environment in AEC/O markets in Europe and North America unchanged.
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- Highly successful subscription/SaaS transition in the Design and Build segments continues to develop as planned.
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- Well on track to reach outlook FY-24. Strong foundation to achieve above-market growth and shareholder returns in the medium- to long-term by leveraging our leading positions in structurally growing industries.
Strategic Update Q1-24: Driving Internationalization
India – A Huge Opportunity:
- Population: 1.3bn
- Indian economy: 5th largest in the world
- Indian construction market: 3rd largest in the world
Nemetschek in India:
- Opening of a new local Go-to-Market office in Mumbai
- Products and product packages will be jointly sold under the Nemetschek Group brand
- Already established location in Hyderabad acting as a shared services, development and research excellence center
Strategic Update Q1-24: New Partnerships to Advance AEC/O & M&E Industries
Nemetschek & Autodesk
- Interoperability agreement between Nemetschek Group & Autodesk
- Improve open collaboration and efficiencies in AEC/O and M&E industries
- Enhance existing interoperability between Nemetschek Group and Autodesk solutions
- Both companies will provide mutual access to their APIs and industry clouds
Nemetschek & Hexagon:
- Partnership of Nemetschek with Hexagon's Geosystems Division focused on digital twins
- Increasing the efficiency in building operations
- Nemetschek to provide its new horizontal, open, and cloud-based dTwin platform
- Hexagon to provide its end-to-end reality capture solutions
Key Financial Highlights Q1-24: Successful Start to the Year 2024
Overview Financial Results Q1-24
Segments Q1-24: All Segments According to Plan
* As a result of the strategic reclassification of the Digital Twin Business Unit from the Manage to the Design segment prior year figures were restated for comparability reasons.
Recurring Revenues: Successful Transition Leads to New Record High of 83%
At a Glance: Income Statement and Important KPIs
| Key Figures mEUR | Q1-24 | In % of revenue | Q1-23 | Growth y/y |
|---|---|---|---|---|
| Revenues | 223.9 | 100% | 204.6 | +9.4% |
| Cost of goods and services | -9.1 | 4.1% | -7.8 | +16.9% |
| Personnel expenses | -94.2 | 42.1% | -88.8 | +6.1% |
| Other operating income/expenses | -52.3 | 23.4% | -47.1 | +11.2% |
| EBITDA | 68.3 | 30.5% | 61.0 | +11.9% |
| EBITDA margin | 30.5% | - | 29.8% | +70bps |
| D&A (incl. PPA) | -13.6 | 6.1% | -14.4 | -5.6% |
| EBIT | 54.7 | 24.4% | 46.6 | +17.3% |
| EBIT margin | 24.4% | - | 22.8% | +160bps |
| Net income (group shares) | 42.5 | 19.0% | 36.3 | +17.4% |
| EPS | 0.37 | - | 0.31 | +17.4% |
| FCF (before M&A) | 82.1 | - | 72.5 | +13.3% |
| Equity ratio in % | 60.2% | - | 58.0% | +220bps |
| Net Cash | 339.5 | - | 189.1 | +79.5% |
Outlook
11 Nemetschek Group | Earnings Call Q1-24
Guidance 2024: On Track After Successful Start to the Year
Guidance 2024:
Please note: The guidance is based on the assumption that the global macroeconomic or sector-specific conditions will not deteriorate significantly in 2024 and 2025. 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
13 Nemetschek Group | Earnings Call Q1-24
Income Statement
| €m | Q1 2024 | Q1 2023 | % YoY |
|---|---|---|---|
| Revenues | 223.9 | 204.6 | +9.4% |
| Other income |
3.4 | 1.8 | +86.4% |
| Operating income | 227.3 | 206.4 | +10.1% |
| Cost of goods and services | -9.1 | -7.8 | +16.9% |
| Personnel expenses | -94.2 | -88.8 | +6.1% |
| Other expenses | -55.7 | -48.9 | +14.0% |
| Operating expenses | -159.1 | -145.5 | +9.4% |
| EBITDA | 68.3 | 61.0 | +11.9% |
| Margin | 30.5% | 29.8% | |
| Depreciation and amortization | -13.6 | -14.4 | -5.6% |
| t/o right -of -use assets |
-4.1 | -4.3 | -2.6% |
| t/o PPA | -6.2 | -7.2 | -13.2% |
| EBIT | 54.7 | 46.6 | +17.3% |
| Financial result | 0.0 | -0.5 | +>100% |
| t/o IFRS 16 | -0.5 | -0.5 | +8.8% |
| EBT | 54.7 | 46.1 | +18.7% |
| Income taxes | -11.4 | -9.3 | +22.6% |
| Non -controlling interests |
0.8 | 0.6 | +38.0% |
| Net income (group shares) | 42.5 | 36.3 | +17.4% |
| EPS in EUR | 0.37 | 0.31 | +17.4% |
Balance Sheet – Assets
| €m | March 31, 2024 |
December 31, 2023 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 339.5 | 268.0 |
| Trade receivables, net | 118.2 | 99.6 |
| Inventories | 0.9 | 1.0 |
| Other current assets | 57.2 | 49.6 |
| Current assets, total | 515.7 | 418.2 |
| Property, plant and equipment | 23.3 | 23.7 |
| Right-of-use assets | 58.1 | 60.9 |
| Intangible assets | 129.5 | 135.1 |
| Goodwill | 557.3 | 552.0 |
| Other non-current assets | 95.2 | 84.3 |
| Non-current assets, total | 863.3 | 856.1 |
| Total assets | 1,379.0 | 1,274.3 |
Balance Sheet – Equity and Liabilities
| €m | March 31, 2024 |
December 31, 2023 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 4.9 | 6.8 |
| Trade payables | 15.6 | 15.3 |
| Provisions and accrued liabilities | 59.6 | 65.7 |
| Deferred revenue | 321.5 | 265.1 |
| Current lease liability | 16.6 | 16.7 |
| Other current liabilities | 40.5 | 31.0 |
| Current liabilities, total | 458.7 | 400.6 |
| Long-term borrowings without current portion | 0.1 | 0.1 |
| Deferred tax liabilities | 15.8 | 16.7 |
| Non-current lease liability | 50.7 | 52.8 |
| Other non-current liabilities | 22.9 | 22.2 |
| Non-current liabilities, total | 89.5 | 91.8 |
| Subscribed capital and capital reserve | 128.0 | 128.0 |
| Retained earnings | 684.5 | 640.8 |
| Other reserves | -17.8 | -22.2 |
| Non-controlling interests | 36.1 | 35.3 |
| Equity, total | 830.7 | 781.9 |
| Total equity and liabilities | 1,379.0 | 1,274.3 |
Cash Flow Statement
| €m | Q1 2024 | Q1 2023 | % YoY |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 268.0 | 196.8 | +36.2% |
| Cash flow from operating activities | 84.5 | 74.9 | +12.8% |
| Cash flow from investing activities | -7.8 | -6.0 | +29.0% |
| t/o CapEX | -2.4 | -2.6 | |
| t/o Cash paid for acquisition of equity investments | -5.4 | -3.3 | |
| Cash flow from financing activities | -7.4 | -29.9 | -75.2% |
| t/o Cash received from bank loans | 0.0 | 2.5 | |
| t/o Repayments of borrowings | -1.9 | -27.1 | |
| t/o Principal elements of lease payments | -4.4 | -4.1 | |
| FX-effects | +2.1 | -1.7 | |
| Free cash flow | 76.7 | 68.9 | +11.4% |
| Free cash flow (before M&A)1 | 82.1 | 72.5 | +13.3% |
| Cash and cash equivalents at the end of the period | 339.5 | 234.1 | +45.0% |
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.
