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Nemetschek SE
Investor Presentation • Mar 31, 2020
301_ip_2020-03-31_61347ff3-cc42-4800-8c47-6bf1a967ca56.pdf
Investor Presentation
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Nemetschek Group
Earnings Call FY-19
31 March 2020 | Dr. Axel Kaufmann, Spokesman & CFOO
Bunjil Place, Narre Warren, Australia Architects: fjmt; Image: Trevor Mein | Realized with Graphisoft 01 Financial Results Q4 & FY-19
Top Key Figures Q4-19: Expected Year-End Finish Confirms Preliminary Numbers
Key Business Highlights 2019: Another Successful Year
Strong Financial Performance M&A Transactions, Divestitures
01/2019: Axxerion acquired by MCS, renamed afterwards in "Spacewell" Manage & Operate Division:
04/2019: Redshift by Maxon 01/2020: RedGiant by Maxon Media & Entertainment Division:
Sale of minority interest:
08/2019: Value-generating sale of DocuWare with a positive one-time effect on EPS
MARCH 2020 Earnings Call FY-2019 4
Top Key Figures FY-19: Another Record Year
Globally Positioned: Strong Growth in all Regions
2019: Over-proportional growth in the United States
Earnings Call FY-2019
Strong Growth in Recurring Revenues: Subscription Is Key Driver
Revenue distribution 2019
At a Glance: Income Statement and Important KPIs
| in % of | ||||
|---|---|---|---|---|
| Key Figures mEUR | Q4 2019 | FY 2019 | FY YoY | revenue |
| Revenues | 150.8 | 556.9 | +20.7% | 100.0% |
| Cost of materials/cost of purchased services | -6.2 | -20.2 | +41.8% | 3.6% |
| Personnel expenses | -61.4 | -239.4 | +19.4% | 43.0% |
| Other operating expenses | -38.1 | -137.8 | +5.4% | 24.7% |
| EBITDA | 46.2 | 165.7 | +36.6% | 29.7% |
| EBITDA margin (w/o IFRS 16) | 30.6% (28.0%) | 29.7% (27.0%) | +340bps | - |
| D&A (incl. PPA) | -11.1 | -42.1 | +79.3% | 7.6% |
| EBIT | 35.2 | 123.6 | +26.4% | 22.2% |
| EBIT margin | 23.3% | 22.2% | +100bps | - |
| Net income (Group shares) | 31.7 | 127.2 | +66.3% | 22.9% |
| EPS | 0.27 | 1.10 | +66.3% | - |
| EPS (w/o DocuWare sale) |
0.27 | 0.85 | +27.7% | - |
| Operating cash flow | - | 160.4 | +60.8% | - |
| Free cash flow (ex M&A) |
- | 174.5 | +97.3% | - |
| Equity ratio in % | - | 40.7% | - | - |
| Net debt/ liquidity | - | 21.0 | - | - |
Segment Overview: Build Segment Remains in Strong Growth Mode
Earnings Call FY-2019 9 MARCH 2020
Wardian London, London, Great Britain Contractor: Ballymore; Image: Jason Hakwes | Realized with Bluebeam 02 Financial Outlook
Long-term Trend remains intact: AEC BIM Software Market offers huge potential
BIM Maturity Map
Source: Cambashi BIM Design Observatory 2020, internal research
Earnings Call FY-2019
Sustainability: Gaining a Greater Importance for Our Customers
The FOOTPRINT of the Building Industry
Buildings and construction account for
| 36% of global final energy use and | 39% of energy-related CO2 emissions
During the construction phase
| 10% of materials are wasted | 30% of construction is rework
In 90% of all projects, time or cost overruns occur.
Sources: Global Status Report 2019, UN Environment and the International Energy Agency. Engineering-News Record 2018/2019
Nemetschek Is Well Positioned!
Nemetschek SE
| Attractive End | Unique market | Attractive business | Strong financial | Value accretive |
|---|---|---|---|---|
| markets | position | model | position | M&A |
Huge growth potential Structural long-term growth drivers (low degree of digitalization) Growth supported by regulation |
Best in class products Product offering along the complete AEC value chain Leader in Open BM Close proximity to customers within our 4 divisions |
Highly profitable Strong Cash conversion (> 80%) High share of recurring revenues (approx.50%) High returns (ROCE>20%) |
Very healthy balance sheet Net cash position Equity ratio: 41% No major refinancing needs Long-term anchor shareholder |
Strong track record of bolt-on acquisitions (e.g. Bluebeam) Disciplined approach Substantial financial fire power Focus on long-term value generation |
Operating mode via four strong divisions with leading global brands
13 MARCH 2020 Earnings Call FY-2019
Our Business Model in Light of a Potential Crisis Scenario
Earnings Call FY-2019
Outlook 2020: Conservative Guidance Due to Covid-19
Earnings Call FY-2019
Income Statement
€m Q4 2019 Q4 2018 % YoY 12M 2019 12M 2018 %YoY Revenues 150.8 130.4 +15.7% 556.9 461.3 +20.7% Own work capitalized/other operating income 1.1 1.1 -2.5% 6.2 5.5 +13.5% Operating income 152.0 131.5 +15.5% 563.1 466.8 +20.6% Cost of materials/purchased services -6.2 -4.1 +53.0% -20.2 -14.3 +41.8% Personnel expenses -61.4 -55.3 +11.0% -239.4 -200.6 +19.4% Other operating expenses -38.1 -39.1 -2.6% -137.8 -130.7 +5.4% Operating expenses -105.7 -98.5 +7.4% -397.4 -345.5 +15.0% EBITDA 46.2 33.0 +39.9% 165.7 121.3 +36.6% Margin 30.6% 25.3% 29.7% 26.3% Depreciation and amortization -11.1 -6.6 +67.2% -42.1 -23.5 +79.3% t/o right-of-use assets -3.9 0.0 -14.7 0.0 t/o PPA -4.6 -4.1 +10.4% -17.1 -14.7 +16.0% EBITA (normalized EBIT) 39.7 30.5 +30.0% 140.7 112.5 +25.0% EBIT 35.2 26.4 +33.0% 123.6 97.8 +26.4% Financial result 1.4 2.0 30.1 2.0 t/o interest expenses right-of-use assets -0.4 0.0 -1.5 0.0 t/o gain on disposal of shares in associates 0.0 0.0 29.9 0.0 EBT 36.5 28.4 +28.5% 153.7 99.8 +54.0% Income taxes -4.8 -4.7 +1.9% -26.4 -23.2 +13.6% Non-controlling interests 0.0 -0.1 0.1 0.1 Net income (group shares) 31.7 23.8 +33.1% 127.2 76.5 +66.3% EPS in EUR* 0.27 0.21 +33.1% 1.10 0.66 +66.3% Net income (group shares) w/o DocuWare-effect 31.7 23.8 +33.1% 97.7 76.5 +27.7% EPS in EUR* 0.27 0.21 +33.1% 0.85 0.66 +27.7%
* for better comparability, EPS considers stock split
Earnings Call FY-2019
Balance Sheet – Assets
| €m | December 31, 2019 |
December 31, 2018 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 209.1 | 120.7 |
| Trade receivables, net | 62.0 | 55.8 |
| Inventories | 1.0 | 0.8 |
| Other current assets | 23.3 | 24.9 |
| Current assets, total | 295.5 | 202.2 |
| Property, plant and equipment | 27.6 | 17.6 |
| Right-of-use assets | 66.2 | 0.0 |
| Intangible assets | 127.7 | 102.1 |
| Goodwill | 325.0 | 244.3 |
| Other non-current assets | 15.2 | 14.3 |
| Non-current assets, total | 561.7 | 378.3 |
| Total assets | 857.2 | 580.6 |
Balance Sheet – Equity and Liabilities
| €m | December 31, 2019 |
December 31, 2018 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 58.6 | 56.3 |
| Trade payables & accrued liabilities | 56.4 | 53.5 |
| Deferred revenue | 118.5 | 95.1 |
| Current lease liability | 12.6 | 0.0 |
| Other current assets | 25.6 | 17.3 |
| Current liabilities, total | 271.6 | 222.3 |
| Long-term borrowings without current portion | 129.5 | 74.3 |
| Deferred tax liabilities | 23.3 | 17.2 |
| Non-current lease liability | 57.7 | 0.0 |
| Other non-current liabilities | 26.4 | 17.2 |
| Non-current liabilities, total | 236.9 | 108.7 |
| Subscribed capital and capital reserve | 128.0 | 51.0 |
| Retained earnings | 230.9 | 212.1 |
| Other comprehensive income | -10.4 | -13.6 |
| Non-controlling interests | 0.1 | 0.1 |
| Equity, total | 348.6 | 249.6 |
| Total equity and liabilities | 857.2 | 580.6 |
Earnings Call FY-2019
Cash Flow Statement
| €m | December 31, 2019 |
December 31, 2018 |
% YoY |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 120.7 | 104.0 | +16.2% |
| Cash flow from operating activities | 160.4 | 99.7 | +60.8% |
| Cash flow from investing activities | -83.8 | -74.4 | |
| t/o CapEX | -19.3 | -11.3 | |
| t/o Cash paid for business combinations | -97.9 | -63.1 | |
| t/o Cash received from disposal of shares in associate | 33.3 | 0.0 | |
| Cash flow from financing activities | 10.7 | -10.4 | |
| t/o Dividend payments | -31.2 | -28.9 | |
| t/o Repayments of borrowings | -72.5 | -38.0 | |
| t/o Changes in bank liabilities due to company acquisitions | 130.0 | 86.0 | |
| t/o Principal elements of lease payments | -11.3 | 0.0 | |
| FX-effects | 1.1 | 1.8 | |
| Cash and cash equivalents at the end of the period | 209.1 | 120.7 | +73.2% |
| Free cash flow1 | 76.6 | 25.4 | |
| Free cash flow1 (w/o acquisition effects) |
174.5 | 88.5 | +97.3% |
1 Operating cash flow – Investing cash flow
21 MARCH 2020 Earnings Call FY-2019
Contact
NEMETSCHEK SE Investor Relations
Konrad-Zuse-Platz 1 81829 Munich Germany
[email protected] www.nemetschek.com
Safe Harbor Statement
The presentation today does contain forward-looking statements about our strategies, products, future results, performance or achievements, financial, operational and otherwise, including statements about our strategic priorities, guidance and our mid-term goal, our M&A strategy, and our capital allocation initiatives. These statements reflect management's current expectations, estimates and assumptions based on the information currently available to us. These forward-looking statements are not guarantees of future performance and involve significant risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by the forward-looking statements contained in these presentations.
Nemetschek undertakes no obligation to publicly update or revise any forward looking statements. All forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates.
Company Presentation 22 JANUARY 2020
