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Nemetschek SE Investor Presentation 2024
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Investor Presentation
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Earnings Call Q4- / FY-23
Nemetschek Group March 21, 2024
Agenda
01 Highlights FY-2023 and Strategic Update
05 Appendix
02 Update Subscription/SaaS Transition
03 Financial Results Q4- / FY-2023
04 Guidance 2024 and Ambition 2025
Review Financial Year 2023
03 Nemetschek Group | Earnings Call Q4-/ FY-23
Financial Year 2023: All Metrics Achieved or Exceeded
| Outlook 2023 | Results 2023 | |||
|---|---|---|---|---|
| Revenues Growth: 8.0% (at cc1) 6.0% - Initially (4.0% - 6.0%) |
Revenues Growth: +8.0% (at cc1) to EUR 851.6m |
|||
| ARR Growth: > 25% |
ARR Growth: +26.7% (at cc1) |
|||
| EBITDA Margin: 28%-30% |
EBITDA Margin: 30.3% |
|||
| Share Recurring Revenue: > 75% |
Share Recurring Revenue: 76.6% |
|||
| 1 Constant currency |
Strategic Highlights FY 2023: Continued Progress in All Strategic Focus Areas
continued build-up to utilize future growth
opportunities
Update Subscription/SaaS Transition
Road to Recurring Business Model: Main Driver Subscription/SaaS
Financial Results Q4- / FY-23
Q4-23: Strong Finish of the Year 2023
1 Constant currency
Key Financial Highlights FY-23: Continued Growth in a Challenging Environment
Segments FY 2023: Resilient Growth in Design, Build Recording Growth Despite Transition
Revenues by Type: Subscription/SaaS Driving Recurring Revenue Share > 75%
1 Constant currency 2 Annual Recurring Revenue (ARR): Average of all recurring revenues (Sub./SaaS and maintenance contracts) over the last
At a Glance: Income Statement and Important KPIs
| Key Figures mEUR | FY-23 | In % of revenue | FY-22 | Growth y/y |
|---|---|---|---|---|
| Revenues | 851.6 | 100% | 801.8 | +6.2% |
| Cost of goods and services | -33.9 | 4.0% | -31.8 | +6.5% |
| Personnel expenses | -360.9 | 42.4% | -337.2 | +7.0% |
| Other operating income/expenses | -199.1 | 23.4% | -175.8 | +13.2% |
| EBITDA | 257.7 | 30.3% | 257.0 | +0.3% |
| EBITDA margin | 30.3% | - | 32.0% | -170bps |
| D&A (incl. PPA) | -58.2 | 6.8% | -58.8 | -1.1% |
| EBIT | 199.5 | 22.8% | 198.1 | +0.7% |
| EBIT margin | 23.4% | - | 24.7% | -130bps |
| Net income (group shares) | 161.3 | 18.9% | 161.9 | -0.4% |
| EPS | 1.40 | - | 1.40 | -0.4% |
| FCF (before M&A) | 240.6 | - | 182.4 | +31.9% |
| Equity ratio in % | 61.4% | - | 57.5% | +390bps |
| Net Cash | 261.2 | - | 124.9 | +109% |
Outlook
14 Nemetschek Group | Earnings Call Q4-/ FY-23
Guidance 2024 and Ambition 2025
| Starting Point |
Guidance | Ambition |
|---|---|---|
| 2023 | 2024 | 2025 |
| ARR: EUR 718.6m Revenue: EUR 851.6m |
ARR Growth: ~ 25% Revenue Growth: 10% - 11% (at constant currencies) |
Revenue Growth: Significantly above market – Mid-teens |
| EBITDA Margin: 30.3% |
EBITDA Margin: 30% - 31% |
|
| Share Recurring Revenue: 77% |
Share Recurring Revenue: ~ 85% |
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. 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
16 Nemetschek Group | Earnings Call Q4-/ FY-23
Income Statement
| €m | FY 2023 | FY 2022 | % YoY |
|---|---|---|---|
| Revenues | 851.6 | 801.8 | +6.2% |
| Other income |
8.9 | 12.6 | -29.1% |
| Operating income | 860.5 | 814.4 | +5.7% |
| Cost of goods and services | -33.9 | -31.8 | +6.5% |
| Personnel expenses | -360.9 | -337.2 | +7.0% |
| Other expenses | -208.0 | -188.4 | +10.4% |
| Operating expenses | -602.8 | -557.4 | +8.1% |
| EBITDA | 257.7 | 257.0 | +0.3% |
| Margin | 30.3% | 32.0% | |
| Depreciation and amortization | -58.2 | -58.8 | -1.1% |
| t/o right -of -use assets |
-16.7 | -16.3 | +2.5% |
| t/o PPA | -29.4 | -31.8 | -7.6% |
| EBIT | 199.5 | 198.1 | +0.7% |
| Financial result | 5.0 | 1.4 | +261.9% |
| t/o IFRS 16 | -1.9 | -1.4 | +39.0% |
| EBT | 204.5 | 199.5 | +2.5% |
| Income taxes | -40.6 | -34.4 | +17.8% |
| Non -controlling interests |
2.7 | 3.2 | -15.0% |
| Net income (group shares) | 161.3 | 161.9 | -0.4% |
| EPS in EUR | 1.40 | 1.40 | -0.4% |
Balance Sheet – Assets
| €m | December 31, 2023 |
December 31, 2022 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 268.0 | 196.8 |
| Trade receivables, net | 99.6 | 84.5 |
| Inventories | 1.0 | 0.9 |
| Other current assets | 49.6 | 44.9 |
| Current assets, total | 418.2 | 327.1 |
| Property, plant and equipment | 23.7 | 26.6 |
| Right-of-use assets | 61.0 | 69.8 |
| Intangible assets | 135.1 | 171.7 |
| Goodwill | 552.0 | 557.0 |
| Other non-current assets | 84.3 | 45.9 |
| Non-current assets, total | 856.1 | 871.0 |
| Total assets | 1,274.3 | 1,198.1 |
Balance Sheet – Equity and Liabilities
| €m | December 31, 2023 |
December 31, 2022 |
|---|---|---|
| Equity and liabilities | ||
| Short-term borrowings and current portion of long-term loans | 6.8 | 65.1 |
| Trade payables | 15.3 | 15.7 |
| Provisions and accrued liabilities | 65.7 | 70.3 |
| Deferred revenue | 265.1 | 206.9 |
| Current lease liability | 16.7 | 14.9 |
| Other current liabilities | 31.0 | 31.0 |
| Current liabilities, total | 400.6 | 403.8 |
| Long-term borrowings without current portion | 0.1 | 6.9 |
| Deferred tax liabilities | 16.7 | 19.8 |
| Non-current lease liability | 52.8 | 62.4 |
| Other non-current liabilities | 22.2 | 15.9 |
| Non-current liabilities, total | 91.8 | 105.1 |
| Subscribed capital and capital reserve | 128.0 | 128.0 |
| Retained earnings | 640.8 | 533.9 |
| Other reserves | -22.2 | -8.6 |
| Non-controlling interests | 35.3 | 36.0 |
| Equity, total | 781.9 | 689.2 |
| Total equity and liabilities | 1,274.3 | 1,198.1 |
Cash Flow Statement
| €m | FY 2023 | FY 2022 | % YoY |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 196.8 | 157.1 | +25.3% |
| Cash flow from operating activities | 252.9 | 213.8 | +18.3% |
| Cash flow from investing activities | -37.8 | -52.4 | -27.8% |
| t/o CapEX | -12.7 | -19.0 | |
| t/o Cash paid for acquisition of equity investments | -24.1 | -4.8 | |
| Cash flow from financing activities | -139.4 | -124.0 | +12.4% |
| t/o Dividends | -52.0 | -45.0 | +15.4% |
| t/o Cash received from loans | 18.5 | 40.8 | |
| t/o Repayments of borrowings | -83.6 | -98.7 | |
| t/o Principal elements of lease payments | -16.5 | -16.0 | |
| FX-effects | -4.4 | 2.3 | |
| Free cash flow | 215.0 | 161.4 | +33.2% |
| Free cash flow (before M&A)1 | 240.6 | 182.4 | +31.9% |
| Cash and cash equivalents at the end of the period | 268.0 | 196.8 | +36.2% |
SHAPE THE WORLD
NEMETSCHEK SE Investor Relations Konrad-Zuse-Platz 1 81829 Munich Germany
[email protected] www.nemetschek.com
NEMETSCHEK SE Konrad-Zuse-Platz 1 | 81829 München | Tel. (089) 540459-0 | www.nemetschek.com
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.
