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Nemetschek SE Investor Presentation 2021
301_ip_2021-09-20_10925bb6-2a57-4b1a-a3b4-2f85f101f4e3.pdf
Investor Presentation
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NEMETSCHEK GROUP
Nemetschek Group
Company Presentation
September 2021
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We Address the Pain Points of the Construction Industry
General challenges
Need for Affordable Housing
Housing shortage due to urbanization, especially in metropolitan areas.
Time & Cost Pressure in Projects
The constantly increasing complexity of construction projects leads to higher time, cost, and/or quality demands.
Sustainability
Climate protection requirements are putting pressure on the industry to build more sustainably.
Opportunities for us
Seamless Collaboration
Collaboration between different disciplines must be further improved in order to reduce information losses caused by silos.
Framework Conditions
Open data standards are the basis for seamless collaboration and higher efficiency.
Investments in Digitalization
Construction industry still lagging behind other industries. But regulations increase need for investments in Digitalization.
Company Presentation
3 | SEPTEMBER 2021
NEMETSCHEK
GROUP
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
Construction and demolition account for
35% of all waste in the EU
During the construction phase
10% of materials are wasted
30% of construction is rework
The HANDPRINT of our Customers
Renovation & Demolition
- Easier reconstruction of buildings
- Reusing raw materials
Operate & Manage
- Smart buildings
- Digital twins
- Efficient usage of office spaces and energy
Building & Construction
- Optimized usage of resources and materials via exact cost & time estimation
- Up to 60% less energy consumption and 90% less waste with prefabrication
Planning & Design
- Less errors & rework through cross-functional planning
- Green buildings
- Simulations
- Energy analysis
- Exact calculation of materials
Sources: Global Status Report 2019, UN Environment and the International Energy Agency. Engineering-News Record 2018/2019
Company Presentation
4 | SEPTEMBER 2021
NEMETSCHEK
GROUP
Intact long-term trend of AEC/O BIM Software Market is Offering huge Potential
Construction lagging behind Digitalization
Addressable market growth ~10% p.a.
Company Presentation
5 | SEPTEMBER 2021
NEMETSCHEK
GROUP
02
Our Positioning in the AEC/O Industry
Nemetschek Group Drives Digitalization in the Construction Industry...
... for an efficient building lifecycle
- Pioneer for open standards
- Software solutions for the entire lifecycle of buildings, from planning and construction to facility management
- Close cooperation with science and universities
- 25% of revenue flow into research & development
- Named one of the 50 Sustainability & Climate Leaders by the U.N.
... local and global
- BIM solutions made in Germany, competition essentially abroad
- One of the top 3 software providers in Germany
- More than 3,000 employees worldwide, 25% of them in Germany
- Nearly €600 million in revenue, 24% of which are generated in Germany (2020)
- 15 brands with solutions for a wide range of customers at 80 locations worldwide
... with 60 years of commitment!
- Prof. Georg Nemetschek is founder, majority shareholder and spiritus rector of the Nemetschek Group
- Awarded with Konrad Zuse Medal for commitment to the construction industry and promotion of young talent as well as the Federal Cross of Merit for his lifetime achievements
- Nemetschek Innovation Foundation and Georg Nemetschek Foundation promote competence and excellence in the building industry (most recently: TU Munich Endowed Chair)
Company Presentation
7 | SEPTEMBER 2021
NEMETSCHEK
GROUP
Nemetschek Group's Leading-Edge Software Solutions
Covering the Entire Building Lifecycle
Planning & Design
Technology-edge design tools. Seamless collaboration among all stakeholders improves the overall project quality.
Build & Construct
Collaboration tools to connect office / field workers to increase efficiency along with world-class ERP tools.
Operate & Manage
Increase efficiency in buildings: 80% of a building's costs are generated during its operational phase.
Media & Entertainment
Visual and special effects & rendering to present objects in a realistic way for decision makers
Company Presentation
SEPTEMBER 2021
NEMETSCHEK
GROUP
03
Financial Performance / Investment Story
Market Overview: Strong Demand for our Products Across the Entire Construction Market
Construction markets
Residential
Sub-segments:
Multi-Family Homes
Flats
Non-Residential
Sub-segments:
Education
Health
Commercial (e.g. Office)
Infrastructure
Sub-segments:
Airports
Bridges
Tunnels
Market Status
Company Presentation
10 | SEPTEMBER 2021
NEMETSCHEK
GROUP
Top Key Figures Q2-2021: Record Quarter Across the Board
- Strongest organic quarterly growth in years
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Strong demand for Nemetschek's leading software solutions in all market segments
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Subscription/SaaS continues to be the main growth driver: +53.1% cc¹
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Subscription share reaches new record high with 18% of total revenues
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Q2-21: EBITDA margin: 34.0% vs. Q2-20: 28.8%
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Main drivers: strong operational growth combined with high efficiency
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Tax rate: 18.5% vs. 23.5% in previous year
- EPS before PPA amortization: 0.34 EUR (+50.1%)
Company Presentation
11 | SEPTEMBER 2021
¹ Constant currency
NEMETSCHEK
GROUP
Key Business Highlights H1-21: Excellent First Half of the Year due to Operational Strength
Financial Performance
Revenues: +12.5% (FX adj.: +16.7%) to EUR 324.3m
Subscription/SaaS: +45.7% (FX adj.: +51.5%) to EUR 58.5m
EBITDA: +28.3% to EUR 105.9m (Margin: 32.7%)
Earnings per Share EUR 0.54 (+47.1% y/y)
High Cash Conversion: 99.9%
Equity Ratio: 49.3% (H1-20: 43.3%)
Strategic Highlights
Value accretive M&A and Venture Investments
- Successful integration of acquisitions Red Giant and Redshift in Maxon
- Start-up Investments: Reconstruct, Sablono
Continued Progress on Harmonization
- Precast integration into Allplan
- Allplan & SDS2 join forces
Subscription/SaaS
- Growth underpins success of segment-tailored subscription strategy
Company Presentation
SEPTEMBER 2021
NEMETSCHEK
GROUP
Continued Strong Growth in Subscription/SaaS
Revenue Share by Type in %
Development Share Subscription/SaaS vs. Software Services
Software licenses
Consulting & Hardware
Recurring revenues
| Software services (43%)
| Subscription/SaaS (18%)
Q2-21
Recurring revenues y/y
+12.4%
+16.4% cc¹
Subscription/SaaS y/y
+47.4%
+53.1% cc¹
Software licenses y/y
+24.7%
+30.0% cc¹
H1-21
Recurring revenues y/y
+12.0%
+16.2% cc¹
Subscription/SaaS y/y
+45.7%
+51.5% cc¹
Software licenses y/y
+13.1%
+17.8% cc¹
Company Presentation
SEPTEMBER 2021
1 Constant currency
NEMETSCHEK
GROUP
Q2-21 Segment Overview: Strong Operational Performance in all Divisions
- Graphisoft with largest contribution to revenue and margin increase
- Acceleration of license growth: +36% (vs. +13% in Q1-21)
- Main growth driver Bluebeam with highest increase in new users in company's history
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Strong growth despite continued FX headwind from USD
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Growth picking up in Q2 with +15.6% (vs. 9.2% in Q1)
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Strong growth purely organic
- Margin uplift after successful integration of acquisitions Red Giant and Redshift
Company Presentation
14 | SEPTEMBER 2021
1 Constant currency
NEMETSCHEK
GROUP
Strategic Initiatives for Strong Future Growth
Operations & Solutions
Harmonization/Reducing Complexity
- Organizational simplification
- Group-wide activities to harmonize processes (IT & HR)
Business Transformation: Subscription/SaaS
- Strong growth after successful transition of Maxon
- Bluebeam in final preparations for subscription move in Q4-21, comes from a great installed base and detailed preparation
Customer Focus/Cross-Brand Activities
- Enhanced group-wide competences (e.g. Key Account Management)
- Introduction of innovative and integrated solutions for the benefit of our customers
M&A/Start-Ups & Ventures
Planning & Design Division
- Acquisition & integration of ADAPT by RISA to strengthen structural engineering competence in the US
- Integration of Precast in Allplan successfully completed
Operate & Manage Division
- Acquisition & Integration of DEXMA by Spacewell to expands portfolio with AI-powered Energy Management Solution
Media & Entertainment Division
- Acquisition & integration of Red Giant and Redshift successfully completed
Start-Ups & Ventures
- Investment in Contech-Champion Sablono
- New Expert Role (Head of Start Up & Venture Investments)
Company Presentation
SEPTEMBER 2021
NEMETSCHEK
GROUP
Overall a Compelling Position: Strong Foundation for Sustainable Growth
Nemetschek SE
| Attractive end-markets | Unique market position | Attractive business model | Strong financial position | Value accretive M&A plus Ventures |
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| 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/O value chain | ||||
| Leader in Open BIM | ||||
| Close proximity to customers within our 4 divisions | Highly profitable | |||
| Strong Cash conversion (~ 90%) | ||||
| High share of recurring revenues (approx. 60%) | Very healthy balance sheet | |||
| Equity ratio: 49% | ||||
| EUR 200m credit line secured | ||||
| Long-term anchor shareholder | Strong track record of bolt-on acquisitions | |||
| Disciplined approach | ||||
| Substantial financial fire power | ||||
| Focus on long-term value generation |
Ambition 2023
- Mid-teens growth starting in 2023 and following the successful Subscription/SaaS transition
- Share of Recurring Revenues: ~ 75% (t/o Share of Subscription/SaaS ~ 45%)
Company Presentation
SEPTEMBER 2021
NEMETSCHEK
GROUP
Increased Guidance 2021: Upgrade after Strong Operational Performance in H1
Outlook 2021:
Please note: The outlook is based on the assumption that there will be no deterioration in the economic conditions in the second half of 2021 and that the Corona pandemic will continue to be under control.
Company Presentation
17 | SEPTEMBER 2021
NEMETSCHEK
GROUP
Company Presentation
18 | SEPTEMBER 2021
NEMETSCHEK
GROUP
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 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.