NEMETSCHEK GROUPCompany Presentation
September 2017
Barco One Campus, Kortrijk, BelgiumArchitects: Jaspers-Eyers Architects | Engineering Office: Establis
Image: Marc Detiffe | Realized with GRAPHISOFT and SCIA
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NEMETSCHEK GROUP: In Brief………………………...….……………………………….......3
Trends & Strategy…...………………………………………………………………………………8
Financials: Q2 / H1 2017……………….....………………………………………………...........14
NEMETSCHEK Share………..………...……………..………………………….…………….....24
Outlook: FY 2017.…………………………………….…………………….……………………...27
Appendix…………………………………………………………………….….……………...…...29
Contact...………………………..…………………………………………….…………………….34
SEPTEMBER 2017 COMPANY PRESENTATION
Agenda
SEPTEMBER 2017 COMPANY PRESENTATION
Our Founder
Mission: „We drive digitalization and innovation for the entire life cycle of the AEC industry!“
Vision: Innovation driver and digital backbone of the AEC industry with strong global brands and customer proximity.
Responsibility: Prof. Nemetschek establishes the Nemetschek charitable foundation, supporting projects in the areas of education, science and research, arts and culture, the environment, international understanding and social projects.
Prof. Georg NemetschekFounder and Member of the Supervisory Board of Nemetschek SE
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SEPTEMBER 2017 COMPANY PRESENTATION
The Philosophy of Nemetschek
We are a Group of industry leaders with a unique DNA and expertise in the AEC* industry.
All of our strong brands share the same mission:
“We are open and declare our support of Open BIM, a standard that allows maximum flexibility and a seamless collaboration of all the parties involved in the construction process so that quality is enhanced in construction in compliance with time and cost schedules.”
* Architecture, Engineering, Construction
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SEPTEMBER 2017 COMPANY PRESENTATION
History: 50 Years of Innovation and Success
* Building Information Modeling
INTERNATIONALIZATION INNOVATION DRIVERSPIRIT OF INVENTION
1980Nemetschek presents the first computer-aided engineering software (CAE)
1984The first CAD solution ALLPLAN 1.0 appears on the market
1998Numerous acquisitions: Frilo, Glaser, Bausoftware, Crem
2000Acquisition: Vectorworks.Group headquarters move to new premises at the Munich Fair
2017Acquisition: dRofus
1963Georg Nemetschek, a certified engineer, founds the “engineering firm for the construction industry”
TODAYGlobally leading software company in Open BIM* and 5D
2013Acquisition: Data Design System
2006Graphisoft and Sciabecome subsidiaries of the Nemetschek Group
1983Internationalization begins in Austria and Switzerland
1999IPO of Nemetschek. Acquisitions: Maxon, Auer
1968The first use of computers in the construction industry
1997Nemetschek presents the database-driven platformO.P.E.N. – known today as BIM*
2008Founding of Allplan GmbH(formerly Nemetschek Allplan Systems GmbH)
2005Founding of Precast Software Engineering(formerly Nemetschek Engineering)
2016Acquisitions: Solibri andDesign Data.Conversion of Nemetschek AG into a SE
2014Acquisition: BluebeamSoftware. Investment in the start-up Sablono GmbH
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Nemetschek at a Glance
SEPTEMBER 2017 COMPANY PRESENTATION
Facts and figures> 50 years of innovation, founded in 1963 and headquartered in Munich, GermanyOpen BIM pioneer and 5D provider with software solutions for the AEC* and media industry 14 strong brands337.3 mEUR sales revenues (2016)2.3 million users in 142 countriesAbout 2,000 employees worldwide60 locations in more than 40 countriesIPO 1999, listed in the TecDax2.5 billion EUR market capitalization
* Architecture, Engineering, Construction
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Media &Entertainment
Strong Brands under One Umbrella
SEPTEMBER 2017 COMPANY PRESENTATION
MANAGEBUILDDESIGN
Architecture Engineering Construction
Nemetschek covers the complete value chain in the AEC & Media industry Entrepreneurial brands: Industry leaders with a unique DNA, expertise and customer orientation Attractive set-up for potential targets
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Trends & Strategy
SEPTEMBER 2017 COMPANY PRESENTATION 8
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WorkflowsDrawings
Since 1985
Models
Today Tomorrow
AEC Industry in Transition
COMPANY PRESENTATIONSEPTEMBER 2017 9
Mega Trend Digitalization – Entering The Industries
SEPTEMBER 2017 COMPANY PRESENTATION
3,82
3,33
3,30
3,21
3,12
3,10
3,03
3,01
2,90
2,70
2,51
2,47
2,35
2,05
1,97
1,97
1,82
most some few very few1.0 2.0 3.0 4.0
Source: TOP 500 survey 2014 / Accenture
Average: 2,8
Telecommunications
Media & entertainment
Information technology
Automobile manufacturers
Electronics & high tech
Service providers
Logistics & transportations
Mechanical & plant engineering
Trade
Pharmaceutical & medical-device industry
Consumer goods
Utility sector
Automotive supplier
Chemical industry
Metals
Construction
Oil & Gas
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IT Spending as a % of Revenue by Industry (2015)
SEPTEMBER 2017 COMPANY PRESENTATION
1,1
1,2
1,3
1,4
1,5
1,8
2,1
2,2
2,9
2,9
3,0
3,1
3,9
4,1
4,5
4,6
5,5
6,5
6,9
0% 1% 2% 3% 4% 5% 6% 7% 8%
Source: IT Key Metrics ‚Data 2015
Software Publishing and Internet Services
Banking and Financial Services
Education
Media and Entertainment
Professional Services
Healthcare Providers
Telecommunication
Pharmaceuticals, Life Sciences and Medical
Transportation
Insurance
Utilities
Industrial Electronics and Electrical Equipment
Consumer Products
Industrial Manufacturing
Retail and Wholesale
Chemicals
Food and Beverage Processing
ConstructionEnergy
90
525
2015 2025
Global IT Investment in construction increasing
Source: McKinsey
19%CAGR
Average: 3,4
in billion USD
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North America
1478
North America
2685
Europe1222
Europe2772
APAC872
APAC1653
ROW 488
ROW 838
2015 2020
BIM Market Size 2015/2020
BIM Market Size and Growth
SEPTEMBER 2017 COMPANY PRESENTATION
Europe$ 1,222 mUSD +13.4%
North America$ 1,478 mUSD +12.7%
$ Market Size 2015 CAGR 2015 - 2020
Total7,948 mUSD
Total4,313 mUSD
+11.4%
+13.6%
+13.4%
+12.7%
CAGR
BIM Market by Region 2015
CAGR: +13%5 years
APAC$ 872 mUSD +13.6%
ROW$ 488 mUSD +11.4%
Source: BIM Market, Global Trends and Forecasts (2015-2020)
Markets and Markets
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Status of Current BIM Regulations and Use
SEPTEMBER 2017 COMPANY PRESENTATION
Source: HSBC, Kepler Cheuvreux
50%
95%
We currently use BIM
In five year's time we will use BIM
National UK BIM Report survey on future use of BIM
Countries currently recommending or mandating BIMCountries recommending BIM as of 2017Countries with BIM guidelines/ positive BIM development
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SEPTEMBER 2017 COMPANY PRESENTATION
Financials: Q2 / H1 2017
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Nemetschek Group Highlights for Q2 / H1 2017 (1)
Double-digit revenue growth in H1 2017
Revenues in first half at upper end of guidance 2017H1 revenues: Strong increase of 20.1% to 194.0 mEUROrganic growth of 14.8% (inorganic effects: dRofus (2.6 mEUR) and Design Data (5.7 mEUR))Q2 revenues: Up by 16.5% to 97.7 mEUROrganic growth of 11.6% Challenging Q2: High comparison level of previous year and release shift of one major brand in Design Segment from Q2 to second half 2017 will lead to revenue shift in H2
Strong revenue increase abroad
Revenues abroad: Up by 24.6% to 136.7 mEURRevenues share outside of Germany at 70.5% Higher footprint in the very competitive US market with revenues share of around 29%Growth regions: Americas, Asia, Scandinavia
Growth driver: Recurring revenues
Recurring revenues: Strong growth of 29.1% to 88.7 mEURShare of recurring revenues at high 45.7%Software licenses: Positive development with 13.0% growth to 96.9 mEURLicense revenue share of 50.0%
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EBITDA on high level
H1 EBITDA: up by 18.3% to 51.7 mEUR, EBITDA margin at 26.6% EBITDA previous year adjusted for one-time gain of 1.9 mEUR at 43.7Including one-time gain EBITDA increased by 13.4%Q2 EBITDA: up by 11.7% to 25.3 mEUR, EBITDA margin of 25.9%Strategic investments started in Q2Mature brands are contributing to efficiency
Net income and EPS Net income: Up by 21.1% to 27.7 mEUR (previous year w/o one-time gain)EPS: at 0.72 EUR
Solid balance sheet Dividend payment: 25m EUR after the AGM on June 1, 2017Cash and cash equivalents at 83.4 mEUR despite dRofus acquisition and dividend payoutEquity ratio at 43.6% - leeway for further investments / acquisitions
Outlook for FY 2017 confirmed
H1 as a very good basis for the fiscal year 2017Outlook for FY 2017 confirmed:Revenue target range: 395 - 401 mEUR, increase of +17% - +19% Thereof organic: +13% - +15%, inorganic effects through dRofus and Design DataEBITDA target range: 100 - 103 mEUR (+16 - +20%)High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands
Nemetschek Group Highlights for Q2 / H1 2017 (2)
SEPTEMBER 2017 COMPANY PRESENTATION
77,7 83,896,3 97,7
Q1 2016 Q1 2017 Q2 2016 Q2 2017
Positive revenue development continued in Q2 2017
SEPTEMBER 2017
+24.0% +16.5% +20.1%
161,5
194,0
HY 2016 HY 2017
Change
in mEUR
Organic growth of 11.6% yoy in Q2 Organic growth of 14.8% yoy in H1 Inorganic effects:
Design Data: 5.7 mEUR dRofus: 2.6 mEUR
COMPANY PRESENTATION 17
International Growth In Focus, More than 50 Locations
AMERICASBrazilCanadaMexicoUSA
WESTERN ANDSOUTHERN EUROPEAustriaBelgiumFranceGreat BritainGermanyItalyNetherlandsSpainSwitzerland
ASIAChinaJapan
Singapore
NORTHERN AND EASTERN EUROPE
Czech RepublicFinland
HungaryNorwayRussia
SlovakiaSweden
SEPTEMBER 2017 COMPANY PRESENTATION
AUSTRALIA
Germany30%
Europe w/oGermany
32%
Americas29%
Asia/Pacific9%
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Software license revenues
50,0%
Recurring revenues*
45,7%
Consulting & Hardware
4,3%
* Software services, rental models (Subscriptions, SaaS)
High share and strong growth of recurring revenues
SEPTEMBER 2017 COMPANY PRESENTATION
Revenues split H1 2017 in %
Recurring revenues* High growth of 29.1% to 88.7 mEUR
High recurring revenue share of 45.7% leads to higher stability
Software license revenues Up by 13.0% to 96.9 mEUR
New customers wins
Increasing customer base
Consequently recurring revenues will follow
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43,745,6
51,7
21,0 22,726,3 24,6
Q1 2016 Q1 2017 Q2 2016 Q2 2017
EBITDA margin on high level
SEPTEMBER 2017
+25.5% Change
in mEUR
EBITDA of the previous year 2016 is shown with and w/o the positive one-time effect of 1.9 mEUR
EBITDAMargin 27.0% 27.4% 27.1% 29.3% 27.0%
COMPANY PRESENTATION
25,3
25.9%
+11.7%* (+3.1%)
*
HY 2016 HY 2017
+18.3%* (+13.4%)
26.6%
*
28.2%
* EBITDA w/o 1.9 mEUR positive one-time effect in Q2 2016
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Net Income and EPS with solid growth
SEPTEMBER 2017 COMPANY PRESENTATION
22,9 24,2
27,7
Net incomein mEUR
Change
H1 2016 H1 2017
+21.1%* (+14.5%)
0,59 0,630,72
H1 2016 H1 2017
+21.1%* (+14.5%)
EPSin EUR
* Net income and EPS w/o 1.9 mEUR positive one-time effect
*
*
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All segments with double-digit growth rates
SEPTEMBER 2017
40,3
3,211,2
57,1
3,8
12,3
EBITDAMargin
Change
27.4% 27.4%
+13.1%
22.6% 22.4% 17.5% 18.1% 42.9% 41.6%
+41.6% +17.5% +10.1%
DesignRevenue growth in H1: 13.1% (organic growth of 10.7%)Challenging Q2: High previous year level and release shift of one major brand from Q2 in H2 2017EBITDA margin H1 on previous year level
BuildRevenue growth of 41.6% in H1 (organic growth of 27.4%)EBITDA margin H1 on previous year level
ManageH1 revenue growth of 17.5%EBITDA margin improved slightly year on year
Media & EntertainmentH1 revenue growth of 10.1% Planned investments have impact on margins
Revenuesin mEUR
106,8
120,9
COMPANY PRESENTATION
H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017
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Cash flow situation
SEPTEMBER 2017 COMPANY PRESENTATION
in mEUR
EBITDA+13.4% yoy
Operating cash flow+28.4% yoy
Previous year: One-time effects of 3.5 mEUR in trade receivables resulting from later customer payments (July 2016) – adjusted growth of 16.8%
Investing cash flowCapex of 4.0 mEUR
Acquisition of dRofus (24.5 mEUR)
Cash flow from financing activitiesRepayment of bank loan (-13.0 mEUR)
Dividend payment (-25.0 mEUR)
Conversion rate** 86% (previous year: 76%)
16,3
-30,1
-3,0
34,6
45,6
0,2
-39,9
-28,7
44,5
51,7EBITDA
Operating cash flow
Investing cash flow
Cash flow from financing activities
Net liquidity
H1 2017H1 2016
*
* End of FY 2016** Operating cash flow / EBITDA
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NEMETSCHEK Shares
SEPTEMBER 2017
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COMPANY PRESENTATION 24
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Founded: in 1963IPO: March 10, 1999Number of shares: 38,500,000Frankfurt Stock Exchange, Prime StandardBloomberg: NEM GY, Reuters: NEKG.DEShares Nemetschek family: 53.57%Freefloat: 46.43 percentCurrent MarketCap: ~ 2.5 billion EURCurrent TecDAX Ranking: 18/20
Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of NEMETSCHEK GROUP in the future
Prof. Georg Nemetschek
4,7%
Nemetschek Vermögensverwaltungs
GmbH & Co. KG48,4%
Free float46,9%
Stable Shareholder Structure
COMPANY PRESENTATIONSEPTEMBER 2017
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Share Price Increased Stronger than TecDAX and DAX
COMPANY PRESENTATIONSEPTEMBER 2017
Time Nemetschek TecDAX DaxYear 2013 +52% +38% +23%
Year 2014 +66% +18% +3%
Year 2015 +120% +34% +10%
Year 2016 +20% -1% +7%
YTD 2017 +18% +25% +4%
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55
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61
64
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01.2017 02.2017 03.2017 04.2017 05.2017 06.2017 07.2017 08.2017 09.2017
Nemetschek TecDAX DAX
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Outlook: FY 2017
COMPANY PRESENTATION 27
Optimistic outlook 2017 confirmed
SEPTEMBER 2017 COMPANY PRESENTATION
in mEUR FY 2016 Forecast 2017* Organic
Revenues 337.3 395 – 401 (+17% - +19%) +13% - +15%
EBITDA 86.1** 100 – 103 (+16 - +20%)
*USD/EUR plan rate: 1.09** EBITDA w/o positive one-time effect of 1.9 mEUR
Market conditions Digitalization and IT spending will drive the use of software solutions in the AEC marketBIM market is expected to grow at a remarkable rate owing to supportive government regulations mandating the adoption of BIM software for construction projects
Strategic market positioning
Clear focus on AEC marketLeading player of Open BIM solutionsNetwork of industry leaders
Growth potential/ Investments
Focus on internationalization (North America, Asia, Europe)Investments in cross-brand strategic projects, new regional markets and customer segments, sales & marketing and innovationStrategically co-operations & acquisitionsHealthy balance sheet - capable of investing in organic and in inorganic growth
Guidance 2017 confirmed
Revenues: Focus on topline with double digit growth rates in the mid-teens EBITDA: Double digit growthHigh EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands
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Appendix
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P+L statement Q2 / FY comparison
mEUR Q2 2017 Q2 2016 % YoY 6M 2017 6M 2016 % YoY
Revenues 97.7 83.8 +16.5% 194.0 161.5 +20.1%
Own work capitalized/other operating income 1.1 3.5 -66.9% 2.1 4.6 -53.9%
Operating income 98.8 87.3 +13.2% 196.1 166.2 +18.0%
Cost of materials / purchased services -3.5 -2.6 +34.1% -6.3 -5.0 +24.7%
Personnel expenses -42.1 -36.2 +16.2% -85.5 -71.2 +20.0%
Other operating expenses -27.9 -23.9 +16.8% -52.7 -44.3 +18.8%
Operating expenses -73.5 -62.7 +17.2% -144.4 -120.6 +19.8%
EBITDA 25.3 24.6 +3.1% 51.7 45.6 +13.4%
Margin 25.9% 29.3% 26.6% 28.2%
EBITDA (w/o one-time effect) 25.3 22.7 +11.7% 51.7 43.7 +18.3%
Margin (w/o one-time effect) 25.9% 27.1% 26.6% 27.0%
Depreciation of PPA and amortization -5.4 -4.4 +22.9% -10.9 -8.8 +23.3%
t/o PPA -3.4 -2.7 +27.2% -6.9 -5.4 +28.6%
EBITA (normalized EBIT) 23.3 22.9 +2.1% 47.7 42.1 +13.3%
EBIT 19.9 20.2 -1.3% 40.8 36.8 +11.0%
Financial result -0.2 -0.3 -0.4 -0.5
EBT 19.7 19.9 -1.1% 40.4 36.3 +11.3%
Income taxes -5.6 -6.2 -10.0% -11.5 -11.0 +4.3%
Non-controlling interests -0.6 -0.6 -1.1 -1.0
Net income (group shares) 13.5 13.1 +2.6% 27.7 24.2 +14.5%
EPS in EUR 0.35 0.34 +2.6% 0.72 0.63 +14.5%
Net income (group shares w/o one-time effect) 13.5 11.8 +14.2% 27.7 22.9 +21.1%
EPS in EUR (w/o one-time effect) 0.35 0.31 +14.2% 0.72 0.59 +21.1%
SEPTEMBER 2017 COMPANY PRESENTATION
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Balance sheet - Assets
mEUR June 30, 2017 December 31, 2016
ASSETS
Cash and cash equivalents 83.4 112.5
Trade receivables, net 44.8 38.8
Inventories 0.5 0.6
Other current assets 16.2 16.0
Current assets, total 145.0 167.9
Property, plant and equipment 14.1 14.3
Intangible assets 87.6 89.7
Goodwill 184.9 177.2
Other non-current assets 6.2 5.7
Non-current assets, total 292.8 286.8
Total assets 437.7 454.7
SEPTEMBER 2017 COMPANY PRESENTATION
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Balance sheet – Equity and liabilities
mEUR June 30, 2017 December 31, 2016
EQUITY AND LIABILITIES
Short-term borrowings and current portion of long-term loans 26.1 26.0
Trade payables & accrued liabilities 34.9 40.7
Deferred revenue 72.9 55.3
Other current assets 29.0 24.1
Current liabilities, total 163.0 146.1
Long-term borrowings without current portion 57.1 70.2
Deferred tax liabilities 19.1 20.6
Other non-current liabilities 7.9 15.7
Non-current liabilities, total 84.1 106.5
Subscribed capital and capital reserve 51.0 51.0
Retained earnings 146.3 144.0
Other comprehensive income -9.5 4.4
Non-controlling interests 2.9 2.8
Equity, total 190.6 202.1
Total equity and liabilities 437.7 454.7
SEPTEMBER 2017 COMPANY PRESENTATION
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Cash flow statement
mEUR June 30, 2017 June 30, 2016 % YoY
Cash and cash equivalents at the beginning of the period 112.5 84.0 +34.0%
Cash flow from operating activities 44.5 34.6 +28.4%
Cash flow from investing activities -28.7 -3.0
t/o CapEX -4.0 -3.2 +26.0%
t/o Cash paid for business combinations -24.5 0.0
Cash flow from financing activities -39.9 -30.1 +32.9%
t/o Dividend payments -25.0 -19.3 +30.0%
t/o Repayments of borrowings -13.0 -9.2
FX-effects -4.9 -0.7
Cash and cash equivalents at the end of the period 83.4 84.9 -1.8%
Free cash flow(1) 15.7 31.6 -50.2%
Free cash flow(1) (w/o acquisition effects) 40.2 31.6 +27.2%
(1) Operating cash flow – Investing cash flow
SEPTEMBER 2017 COMPANY PRESENTATION
SEPTEMBER 2017 COMPANY PRESENTATION
Contact
NEMETSCHEK SEInvestor RelationsKonrad-Zuse-Platz 1D-81829 [email protected]
DisclaimerThis presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Suchstatements reflect current views of Nemetschek SE with respect to future events and results and are subject to risksand uncertainties. Actual results may vary materially from those projected here, due to factors including changes ingeneral 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. NemetschekSE does not intend or assume any obligation to update these forward-looking statements.
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