DGAP-News: Nemetschek SE

Corporate News Nemetschek Group

Outstanding 2017 financial year -
Strong growth with high profitability in 2018 -
2020 growth target: > EUR 600 million in revenue

- Software provider announces mid-term growth target for the first time

- Outlook for 2018: Double-digit revenue growth envisaged, EBITDA margin remains in the corridor of 25% to 27% despite major investments

- 2017: Group revenue rises by 17.3% to EUR 395.6 million

- Over-proportional EBITDA growth of +22.7% to EUR 108.0 million

- Earnings per share significantly above previous year at EUR 1.94 (+59.1%)

- 9^th consecutive dividend increase: Dividend payout forecast to rise to EUR 0.75 per share

Munich, March 29, 2018 - Following an extremely successful 2017 with new records in revenue and operating result, the Nemetschek Group (ISIN DE0006452907), the world's second largest software provider for the AEC industry, announces a mid-term growth target for the first time: For 2020, a rise in revenue volume of more than EUR 600 million is planned.

The company anticipates revenue growth in the clear, double-digit percentage range for the current year of 2018. Despite future-oriented investments in the amount of EUR 10 million, the EBITDA margin is expected to remain as planned in the already achieved corridor of 25% and 27% in future.

Today the Nemetschek Group is publishing the 2017 annual financial statements, the key data of which was already announced on February 5, 2018.

Major indicators of the Group's success in 2017

- Group revenue rose to an all-time high of EUR 395.6 million, a growth of 17.3% compared to the previous year (currency-adjusted: 18.6%). Organic growth also rose considerably by 13.8% (currency-adjusted: +15.0%).

- Recurring revenues from software service contracts and subscriptions, which rose by 25.5% to EUR 183.9 million, were growth drivers, already making up 46.5% of total revenues.

- Continued internationalization is another growth engine: Revenues generated abroad rose by 19.9% to EUR 276.4 million. Especially in the USA, the trend-setting future market for new technologies, Nemetschek increased the revenues in 2017 with an above average growth of around 25%. The average growth in the past five years of around 45% is even stronger. The United States is meanwhile the largest single market in the Nemetschek portfolio, with a 30% share of total revenue.

- On a segment basis, the Build segment experienced the strongest revenue growth with 31.0% (currency-adjusted: 33.1%), increasing to EUR 114.6 million. In particular, as a result of the continued strong development of Bluebeam and Solibri, organic growth was considerably higher than the Group average at 25.1%. It was possible to more than double EBITDA, causing the EBITDA margin to increase to 23.2%, up from the previous year's 14.7%.

In the Design segment, revenue rose by 12.8% to EUR 249.2 million (currency-adjusted: 13.8%). The brand with the strongest growth in this segment was Graphisoft. EBITDA rose by 11.1% percent to EUR 70.3 million. In the Manage segment, revenue rose by 13.8% to EUR 8.1 million. EBITDA was able to grow over-proportionally to revenue by 17.2%, rising to EUR 1.9 million. The Media & Entertainment segment increased revenue by 8.9% to EUR 23.8 million (currency-adjusted: 10.9%). The EBITDA margin rose slightly compared to the previous year to 38.8%.

- Consolidated operating earnings before interest, taxes, depreciation and amortization (EBITDA) increased over-proportionally compared to revenue by 22.7%, rising to EUR 108.0 million, which corresponds to a high EBITDA margin of 27.3%. At the same time, the operating earnings development in the final quarter was extraordinarily high, also as a result of reporting date effects in the case of current investments.

- As a result of strong operating performance and positive non-operating special effects, the net income for the year (Group shares) rose considerably by 59.1% to EUR 74.7 million, causing earnings per share to increase to EUR 1.94. Adjusted for the release of an earn-out liability (EUR 7.6 million) in the financial results, as well as positive tax effects (EUR 4.6 million) as a result of the US tax reform and the release of deferred tax provisions, the net income for the year is calculated at EUR 62.4 million, which corresponds to a rise of 33.0% compared to the previous year. The adjusted EPS amounts to EUR 1.62.

- The operating cash flow increased significantly by 22.3% to EUR 97.4 million. The cash conversion at 90.2% remained at a high level. The Group equity ratio was above the previous year's level (44.4%) at 49.5%.

9^th consecutive dividend increase

As a result of the positive business development, a dividend in the amount of EUR 0.75 per share will be proposed to the annual general meeting on May 30, 2018 (previous year: EUR 0.65 per share). This would be an increase of some 15%. The proposed total dividends to be distributed amount to EUR 28.9 million.

"2017 was an outstanding year for Nemetschek. We have once again proven our operational strength and our globally leading role in the AEC industry," summarizes Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group. "We will keep on our course, combining organic growth with the high-potential acquisition of new brands. The key to our success remains our consistent alignment with customer benefit and our uncompromising quality standards. We want to improve digital workflows in the building industry and make them more efficient for the success of our meanwhile approximately 2.7 million customers worldwide. We see best growth opportunities worldwide for our Group in our market of double-digit growth, amounting to more than EUR 4 billion. This is reflected not least of all in our revenue target for 2020."

Group outlook for 2018 and growth targets for 2020
From today's perspective, on the basis of the current portfolio, the executive board anticipates Group revenue in the range of EUR 447 million to EUR 457 million* for 2018. Investments in the amount of EUR 10 million in strategic projects already underway at Group and brand levels are to secure this double-digit percentage growth for the future. Despite major investments, as achieved in the past, Group EBITDA is forecast to remain in the planned corridor of 25% to 27%. For the 2020 financial year, Nemetschek aims to generate Group revenue of more than EUR 600 million.

Overview of key figures

*The revenue forecast is based on a planned exchange rate of 1.18 EUR/USD
** Adjusted for positive special effects of 12.2 mEUR in total (thereof: 7.6 mEUR in financial result and 4.6 mEUR in taxes because of US tax reform and release of deferred tax provisions)

Key figures by segment

The complete 2017 annual report 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 the digitalization of the building industry. With our software, architects, engineers, construction companies, and facility managers can plan ahead, seamlessly share information and work together more closely. Building and infrastructure projects can thus be conducted more efficiently and sustainably. The unique holding structure provides our 15 strong brands with the flexibility to innovate in an entrepreneurial way while closely engaging with their 2.7 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the company today employs more than 2,000 experts. Publicly listed since 1999 and quoted on the TecDAX, the company generated revenues of EUR 395.6 million and an EBITDA of EUR 108.0 million in 2017.