DGAP-News: Nemetschek SE

Corporate News

Nemetschek Group continues double-digit percentage growth with high profitability in the third quarter

- Continued strong development despite negative currency effects in Q3: revenues for the nine-month period grow by 18.1% to EUR 289.8 million

- EBITDA rises to EUR 76.5 million

- EBITDA margin as of September 30, 2017 with a high 26.4% almost at the level of the previous year's period despite strategic investments

- Forecast for fiscal year 2017 confirmed

Munich, October 27, 2017 - The Nemetschek Group (DE ISIN 0006452907), an internationally leading software provider for the AEC (Architecture, Engineering, Construction) industry, continued on its course of strong growth and maintained high levels of profitability. This was possible despite negative currency effects in the third quarter as a result of the euro's increase in value vis-à-vis the US dollar. The greatest growth impulses originated from abroad and from recurring revenues from maintenance contracts and rental models.

Major indicators of the Group's success

- In the third quarter, Group revenues rose by 14.3% (currency-adjusted: 17.3%) to EUR 95.8 million (previous year's quarter: EUR 83.9 million). Organic growth amounted to 12.0% (currency-adjusted: 14.9%). Revenue for the nine-month period was EUR 289.8 million, which is 18.1% (currency-adjusted: 18.3%) higher than the corresponding value from the previous year (EUR 245.4 million), whereby organic growth reached 13.9% (currency-adjusted: 14.1%).

- The Nemetschek Group further reinforced its international alignment. In the first nine months of this year, revenue abroad rose over-proportionally compared to total revenue by 21.7% to EUR 202.0 million (previous year's period: EUR 166.0 million). Growth regions were primarily North America, Asia and Scandinavia. Irrespective of the strong growth abroad, Nemetschek was also able to achieve double-digit growth in Germany and increased revenue by 10.6% to EUR 87.8 million from January to September.

- With a plus of 27.2% to EUR 134.8 million (nine-month period 2016: EUR 106.0 million) recurring revenues from maintenance contracts and rental models constituted further growth drivers. The share of recurring revenues compared to total revenues rose to 46.5%. Revenue with software licenses increased by 10.6% to EUR 142.8 million (previous year's period: EUR 129.0 million).

- Earnings before interest, tax and depreciation and amortization (EBITDA) grew over-proportionally to revenue by 18.1% (currency-adjusted: 23.0%) to EUR 24.8 million (previous year's quarter: EUR 21.0 million). The EBITDA margin in the third quarter increased accordingly to 25.9% (Q3 2016: 25.1%). EBITDA for the nine-month period rose by 14.9% (currency-adjusted: 16.9%) to EUR 76.5 million (previous year: EUR 66.6 million). The EBITDA margin in the first nine months of 2017 of 26.4% almost reached the level of the previous year's period (27.1%) despite strategic investments in future growth.

- The net income for the year (Group shares) increased by 18.1% to EUR 42.8 million (first nine months of 2016: EUR 36.3 million). The earnings per share for the nine-month period rose from EUR 0.94 to EUR 1.11.

"After the first nine months and the development of the final quarter to date, we are on the way to another record year despite negative currency effects. The business development confirms our strategic initiatives such as product innovations and strengthened internationalization. We are growing organically in the two-digit range and are accelerating this growth as a result of our acquisitions," says Patrik Heider, Spokesman and CFOO of the Nemetschek Group.

Development of the segments in the nine months of 2017
In the Design segment, revenue rose by 12.1% to EUR 181.9 million (previous year's period: EUR 162.3 million). Purely organic growth was around 10% without considering dRofus, which was acquired at the beginning of the year (revenue amount EUR 3.9 million). EBITDA increased by 10.3% to EUR 50.5 million (previous year's period: EUR 45.8 million). The operating margin thus remained practically unchanged compared to the previous year at 27.8% (previous year's period: 28.2%).

The strongest growth was achieved in the Build segment. Segment revenue increased by 36.5% to EUR 84.6 million (previous year's period: EUR 62.0 million). Organically - without the acquired SDS/2 with a revenue contribution of EUR 8.2 million - revenue rose by around 26%. EBITDA increased over-proportionally compared to revenue by 58.9%, reaching EUR 18.4 million (first nine months of 2016: EUR 11.5 million), which caused the EBITDA margin to jump from 18.6% to 21.7%.

In the Manage segment, revenue rose by 17.7% to EUR 5.8 million in the first nine months of 2017 (previous year's period: EUR 5.0 million). EBITDA climbed to EUR 1.2 million. The EBITDA margin reached 20.1%, a slight increase compared to the previous year's level (19.3%).

Revenue in the Media & Entertainment segment increased to EUR 17.5 million in the first nine months, a rise of 8.7% compared to the previous year's period (EUR 16.1 million). The EBITDA margin reached 36.9% (previous year: 39.7%).

Prospects: Forecast for 2017 confirmed
Excluding currency effects, the executive board anticipates Group revenue in the range of EUR 395 million to EUR 401 million (+17% to +19% compared to the previous year). Purely organic growth is expected to be between 13% and 15%. There may be further negative effects as a result of exchange rate fluctuations, in particular from EUR to USD.

Regarding Group EBITDA, the executive board anticipates an increase of between EUR 100 million and EUR 103 million. The objective is to maintain the high margin level of 2016 despite strategic investments in future growth and EBITDA margins which are still below average for the strongly expanding brands acquired.

Overivew of key figures

Key figures by segment

The complete nine-month report for 2017 is available for download in the Investor Relations section of the company website.

For further information on the company, please contact:

Nemetschek Group
Stefanie Zimmermann
Investor Relations
+49 89 540459 250
szimmermann@nemetschek.com

About the Nemetschek Group

The Nemetschek Group is driving digitalization for a better built world. The unique holding structure gives our 15 strong brands the flexibility to innovate in an entrepreneurial way while closely engaging with their 2.3 million customers worldwide. Our Open BIM approach is lifting Building Information Modeling to the next level: Architects, engineers and construction companies can seamlessly exchange data and choose the best technology for their needs. Founded by Prof. Georg Nemetschek in 1963, the company today employs more than 2,000 experts who are building the architecture, engineering and construction (AEC) industries of the future. Publicly listed since 1999 and quoted on the TecDAX, the company generated revenue of EUR 337.3 million and an EBITDA of EUR 88.0 million in 2016.