DGAP-News: Nemetschek SE maintains growth dynamic in third quarter of 2018 and significantly increases revenues and profits

Corporate News - Quarterly Release

Nemetschek Group maintains growth dynamic in third quarter of 2018 and significantly increases revenues and profits

- Group revenues again show strong double-digit growth of 19.8% in third quarter

- Accelerated growth in recurring revenues (+26.4%) in Q3, driven by subscription models (+64.7%)

- EBITDA margin of 26.7% after nine months at top end of target range accompanied by high strategic investment

- Earnings per share in Q3 at EUR 0.47 significantly up on previous year (+ 19.9%)

- Executive Board affirms outlook for the year 2018

Munich, October 30, 2018 - The Nemetschek Group (ISIN DE0006452907) has maintained its strong growth in the third quarter and further enhanced its earnings. At the same time, the world's second largest provider of software solutions for the AEC sector invested in strategic projects to be sure of continued double-digit growth in the future.

Major indicators of the Group's success in Q3 / the first nine months of 2018

- Group revenue in Q3 2018 rose to EUR 114.9 million, yet again demonstrating a strong growth rate of 19.8% (currency-adjusted: 19.7%) compared to the previous year. Purely organic growth in Q3 amounted to 17.0%. Cumulative revenues for the first nine months rose by 14.2% (currency-adjusted: 18.0%) to EUR 330.9 million. Organic growth amounted to 12.4%.

- Recurring revenues from software service contracts and subscriptions remained growth drivers in Q3, rising by 26.4% to EUR 58.3 million. An increase of 20.5% was recorded for the period January to September. This disproportionate increase reflects the strategic change to the business model of offering subscriptions in addition to licenses. Revenue from subscriptions increased considerably in Q3 by 64.7% to EUR 5.6 million. Growth in the first nine months was an impressive 46.9%.

- Consolidated operating earnings (EBITDA) increased in Q3 by 17.8% year on year to EUR 29.2 million. In the first nine months, the EBITDA rose by 15.3% to EUR 88.2 million; at 26.7%, the EBITDA margin was slightly up on the previous year (26.4%) and as such at the top end of the target range for 2018 of between 25% and 27%. At the same time, Nemetschek invested as planned in strategic projects, including further internationalization and innovative solutions, so as to ensure it would be able to consistently achieve double-digit growth in the future.

- In Q3, the net income (Group shares) rose by a significant 19.9% to EUR 18.2 million, prompting the earnings per share to increase to EUR 0.47. Cumulative net income for the first nine months rose by 22.9% to EUR 52.6 million, which corresponds to earnings per share of EUR 1.37.

"Our sustained fast pace of growth shows that our strategic priorities are the right ones. The acquisition of MCS Solutions represents a strategically important investment in the Manage segment. We have also maintained the growth dynamic in licenses and recurring revenues from subscriptions and service contracts. And even with our investments in growth, our profitability is still at a very high level. All of this provides an extremely solid basis for the final quarter of the year and beyond," says Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group.

Segment development

- The strongest revenue growth, both in Q3 (35.4%) and in the first nine months (25.6%) (currency-adjusted: +32.9%), was in the Build segment. At 58.1%, the cumulative EBITDA for the first nine months grew disproportionately compared to revenue growth, resulting in the EBITDA margin reaching an impressive 27.3% in the first nine months. Alongside the US brand Bluebeam, Solibri also achieved strong growth, especially in the Nordic countries and the UK.

- Q3 also saw double-digit revenue growth (11.1%) in the Design segment. The cumulative increase after nine months was 8.9% (currency-adjusted: 11.3%). Due to investments in growth in this segment in the first nine months of the year, the EBITDA margin decreased year on year from 27.8% to 25.0%.

- In the third quarter, the Manage segment was significantly reinforced through the acquisition of MCS Solutions, headquartered in Antwerp. MCS Solutions offers modular and integrated software solutions for property, facility and workplace management as well as smart building platforms designed to optimize productivity and efficiency for building administrators. The first consolidation began in September, meaning MCS contributed revenues of EUR 1.4 million in Q3. Growth in the Manage segment rose in Q3 by 75%, while organic growth was at 8.3%. Cumulative growth amounted to 32.4% (organic: 8.9%). The EBITDA margin increased from 20.1% to 22.0% in the first nine months.

- The Media & Entertainment segment recorded a significantly accelerated revenue growth rate of 18.5% in Q3. Cumulative growth after nine months was 7.9% (currency-adjusted: 11.5%). The EBITDA margin increased significantly from 36.9% to 41.9% in the period from January to September. Nemetschek SE increased its share of Maxon from 70% to 100% at the beginning of July. Under the leadership of a new CEO, the brand is now expected to leverage its growth potential even further in the key AEC markets.

Outlook for the Group for 2018 is affirmed

The Nemetschek Group has confirmed the goals it had set itself so far for the whole of 2018 and expects to achieve EUR 447-457 million* in Group-wide sales this year. The EBITDA margin is expected to be in the corridor of 25% and 27%.

*The revenue forecast is based on a planned exchange rate of 1.18 EUR / USD.

KPIs in quarter summary

KPIs in 9-month summary

Segment KPIs in quarterly summary

Segment KPIs in 9-month summary

The full 9-month report for 2018 can be downloaded from the Investor Relations section of the company's website.

For further information about 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 in the building sector. Our software helps architects, engineers, construction companies and building managers plan more proactively, exchange information securely and seamlessly, and collaborate more closely. This means that building and infrastructure projects can be executed more efficiently and sustainably. Thanks to the unique holding structure of the Nemetschek Group, its 16 strong brands can act as entrepreneurs close to the market, drive innovation and work closely with their 4 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group today employs more than 2,500 experts. Listed on the stock market and noted in the TecDax since 1999, in 2017 the company achieved revenues of 395.6 million euros and an EBITDA of 108.0 million euros.