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Nemetschek SE — Interim / Quarterly Report 2018
Oct 30, 2018
301_ip_2018-10-30_295b1655-a2f5-4eee-9d15-1b802fffbf2c.pdf
Interim / Quarterly Report
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Nemetschek Group
Financial Highlights Third Quarter / 9 Months Results 2018 October 30, 2018
1 Constant currency
1 Constant currency
Growth driver recurring revenues: Smooth transition towards subscription ongoing
Revenue split 9M 2018
Recurring revenues Maintenance and rental models such as subscription, SaaS
Software licenses
Consulting & Hardware
1 Constant currency 2 Previous year
| Q3 2018 9M 2018 |
9M 2018 comments | |||
|---|---|---|---|---|
| Recurring revenues yoy | Recurring revenues yoy | Above average growth to ▌ |
||
| +26.4% +26.5% cc1 |
+20.5% +24.2% cc1 |
€ 162.4m | ||
| Subscription yoy |
Subscription yoy |
Strong growth to € 14.5m ▌ |
||
| +64.7% +66.3% cc1 |
+46.9% +54.5% cc1 |
(previous year: € 9.9m) Strategic change of business ▌ model towards subscriptions |
||
| Software licenses yoy | Software licenses yoy | Double-digit growth in Q2 ▌ |
||
| +14.1% +13.5% cc1 |
+9.1% +13.2% cc1 |
and Q3 9-month figures of € 155.8m ▌ in line with expectations |
Internationalization is key: US is strongest growing market
1 Constant currency 2 Previous year
Segment overview: Build segment is key growth driver
Revenues in €m
Healthy balance sheet allows further strategic M&A
-71,1
EBITDA
in €m
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Net liquidity2
1 Operating cash flow/EBITDA 2Previous year = End of 2017 ▌ 9M 2017 ▌ 9M 2018
8
Entering new markets / Partnerships
- ▌ Graphisoft enters into strategic partnership with Singapore's Surbana Jurong – biggest urban and infrastructure consulting firm in Asia
- ▌ Vectorworks opens new office in Canada
- ▌ dRofus adds first reseller partner for US and Australia/New Zealand
- ▌ Bluebeam with stronger focus on UK and Germany
- ▌ Allplan opened up new office in West Chester, USA, to address the US concrete reinforcement market
Acquisition (Brand-level)
- ▌ Nemetschek acquired MCS Solutions to enter the smart building operations market
- ▌ Bluebeam acquired project Atlas' groundbreaking visualization SaaS solution "maps" for construction industry
- ▌ Nevaris acquired market leader in mobile construction site management 123erfasst.de
Cross-brand highlights / Interoperability
- ▌ First dRofus and Graphisoft Open BIM Project in Australia – Sunshine Coast University Hospital
- ▌ First Allplan Bridge software released
Increase efficiency
▌ Implementation of groupwide IT infrastructure is on track
Operational excellence
1 The revenue outlook is based on planned exchange rate of 1.18 EUR/USD
Financial Calendar
| November 13, 2018 | Capital market day |
|---|---|
| November 15, 2018 | Morgan Stanley TMT Conference, Barcelona |
| November 27, 2018 | Equity Forum, Frankfurt |
| December 6, 2018 | Berenberg European Conference, Pennyhill |
OCTOBER 2018 FINANCIAL HIGHLIGHTS THIRD QUARTER / FIRST NINE MONTHS 2018
| €m | Q3 2018 | Q3 2017 | % YoY | 9M 2018 | 9M 2017 | %YoY |
|---|---|---|---|---|---|---|
| Revenues | 114.9 | 95.8 | +19.8% | 330.9 | 289.8 | +14.2% |
| Own work capitalized/other operating income |
1.2 | 1.3 | -10.4% | 4.3 | 3.5 | +25.0% |
| Operating income | 116.1 | 97.2 | +19.4% | 335.3 | 293.3 | +14.3% |
| Cost of materials/purchased services | -3.6 | -3.4 | +5.9% | -10.2 | -9.7 | +5.7% |
| Personnel expenses | -51.2 | -42.1 | +21.8% | -145.3 | -127.6 | +13.9% |
| Other operating expenses | -32.0 | -26.9 | +18.9% | -91.5 | -79.6 | +15.0% |
| Operating expenses | -86.8 | -72.4 | +20.0% | -247.0 | -216.8 | +13.9% |
| EBITDA | 29.2 | 24.8 | +17.8% | 88.2 | 76.5 | +15.3% |
| Margin | 25.5% | 25.9% | 26.7% | 26.4% | ||
| Depreciation of PPA and amortization | -6.0 | -5.3 | +14.3% | -16.8 | -16.2 | +4.2% |
| t/o PPA | -3.8 | -3.3 | +15.8% | -10.6 | -10.2 | +3.9% |
| EBITA (normalized EBIT) |
27.0 | 22.8 | +18.4% | 82.0 | 70.5 | +16.2% |
| EBIT | 23.2 | 19.5 | +18.8% | 71.4 | 60.3 | +18.3% |
| Financial result | -0.1 | -0.2 | 0.0 | -0.6 | ||
| EBT | 23.1 | 19.3 | +19.3% | 71.4 | 59.7 | +19.6% |
| Income taxes | -6.1 | -3.9 | +57.5% | -18.6 | -15.3 | +21.0% |
| Non-controlling interests | 1.2 | -0.3 | -0.2 | -1.5 | ||
| Net income (group shares) | 18.2 | 15.1 | +19.9% | 52.6 | 42.8 | +22.9% |
| EPS in EUR | 0.47 | 0.39 | +19.9% | 1.37 | 1.11 | +22.9% |
| €m | September 30, 2018 | December 31, 2017 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 106.8 | 104.0 |
| Trade receivables, net | 51.6 | 41.0 |
| Inventories | 1.4 | 0.6 |
| Other current assets | 21.4 | 13.5 |
| Current assets, total | 181.2 | 159.1 |
| Property, plant and equipment | 16.6 | 14.9 |
| Intangible assets | 104.6 | 86.9 |
| Goodwill | 248.1 | 192.7 |
| Other non-current assets | 7.7 | 7.3 |
| Non-current assets, total | 377.0 | 301.7 |
| Total assets | 558.2 | 460.8 |
| €m | September 30, 2018 | December 31, 2017 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 52.1 | 36.0 |
| Trade payables & accrued liabilities | 44.6 | 43.7 |
| Deferred revenue | 95.6 | 68.1 |
| Other current assets | 19.6 | 18.0 |
| Current liabilities, total | 211.9 | 165.7 |
| Long-term borrowings without current portion | 87.2 | 43.9 |
| Deferred tax liabilities | 20.1 | 13.5 |
| Other non-current liabilities | 12.2 | 9.6 |
| Non-current liabilities, total | 119.4 | 67.1 |
| Subscribed capital and capital reserve | 51.0 | 51.0 |
| Retained earnings | 189.7 | 193.2 |
| Other comprehensive income | -14.0 | -18.7 |
| Non-controlling interests | 0.2 | 2.5 |
| Equity, total | 226.9 | 227.9 |
| Total equity and liabilities | 558.2 | 460.8 |
| €m | September 30, 2018 | September 30, 2017 | % YoY |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 104.0 | 112.5 | -7.6% |
| Cash flow from operating activities | 72.1 | 68.2 | +5.8% |
| Cash flow from investing activities | -71.1 | -31.9 | +122.6% |
| t/o CapEX | -7.8 | -6.9 | +12.1% |
| t/o Cash paid for business combinations | -63.3 | -24.9 | |
| Cash flow from financing activities | -0.2 | -46.7 | |
| t/o Repayments of borrowings | -29.5 | -19.5 | |
| t/o Changes in bank liabilities due to company acquisitions | 86.0 | 0.0 | |
| t/o Payments for acquisitions of non-controlling interests |
-25.5 | -0.2 | |
| FX-effects | 1.9 | -5.9 | |
| Cash and cash equivalents at the end of the period | 106.8 | 96.2 | +11.0% |
| Free cash flow1 | 1.1 | 36.3 | |
| Free cash flow1 (w/o acquisition effects) |
64.4 | 61.1 | +5.2% |
1 Operating cash flow – Investing cash flow
Contact
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 reflects 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.