NEMETSCHEK SE
Nemetschek SE: Raised Targets for 2020 Fully Achieved - At Least High Single-Digit Growth with
High Profitability in 2021
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DGAP-News: Nemetschek SE / Key word(s): Annual Results/Forecast
Nemetschek SE: Raised Targets for 2020 Fully Achieved - At Least High
Single-Digit Growth with High Profitability in 2021
23.03.2021 / 07:00
The issuer is solely responsible for the content of this announcement.
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Corporate News
Nemetschek Group: Raised Targets for 2020 Fully Achieved -
At Least High Single-Digit Growth with High Profitability in 2021
- Revenues increase to EUR 596.9 million in 2020 (+7.2%), EBITDA margin at
high 28.9%
- Recurring revenues increase by 19.9% to EUR 359.0 million, driven by
subscription/SaaS (+79.6% to EUR 90.4 million)
- Outlook for 2021: At least high single-digit growth at constant currencies
and attractive EBITDA margin of between 27% to 29% targeted
- Ambition 2023: Growth in the mid-teens following successful
subscription/SaaS transition
Munich, March 23, 2021 - The Nemetschek Group (ISIN DE 0006452907) has
recorded successful business development in 2020 despite the global Covid-19
crisis and has also created important prerequisites for accelerating its
growth course in the future. The provider of software solutions for the
construction industry fully met its 2020 annual targets for revenues and
profitability (EBITDA margin), which were raised in October. For 2021,
currency-adjusted revenue growth is expected to be at least in the high
single-digit percentage range. At the same time, Nemetschek is aiming for a
continuously increasing share of recurring revenues, which will be driven
primarily by the conversion to a cloud-centric subscription model (SaaS) of
its global Build-division brand Bluebeam which will start in the second half
of 2021. In 2021, the EBITDA margin is expected to remain within the high
corridor of 27% to 29% as previously targeted. In addition, the Executive
Board is confident to reach a mid-teens growth starting in 2023 and
following the successful subscription/SaaS transition.
"Thanks to our rapid adaption to the new circumstances, a crisis-resistant
business model and prudent cost management, we have successfully mastered
the past year," said Dr. Axel Kaufmann, Spokesman of the Executive Board and
CFOO. "With our very good positioning regionally and with customers, and the
steadily increasing share of recurring revenues, we have laid the foundation
for further growth in 2021 while achieving attractive profitability. In the
coming years, the clear benefits from the stronger shift to subscription and
cloud will contribute to value creation and significantly accelerate our
growth," Kaufmann added.
Key Group figures for 2020
- Group revenues increased by 7.2% (adjusted for currency effects: 8.3%) to
EUR 596.9 million (2019: EUR 556.9 million). This increase in revenues is
attributable to both solid organic growth of 5.6% and the first-time revenue
consolidation resulting from the Red Giant acquisition in the Media &
Entertainment segment.
- The clear growth driver was recurring revenues from software service
contracts and rental models (Subscription + SaaS), which increased by 19.9%
(adjusted for currency effects: 21.1%) to EUR 359.0 million and thus already
accounted for 60.1% of total revenues (previous year: 53.8%) in 2020. This
above-average increase reflects the strategic approach of the business model
to increasingly offer rental models. Revenues from Subscription + SaaS
increased significantly by 79.6% (adjusted for currency effects: 82.2%) to
EUR 90.4 million.
- Group operating EBITDA for the full year rose by 4.0% (adjusted for
currency effects: 4.9%) to EUR 172.3 million (previous year: EUR 165.7
million), resulting in a high EBITDA margin of 28.9%.
- Due to higher PPA depreciation resulting from the Red Giant acquisition,
net income for the year was almost at the previous year's level at EUR 96.9
million (previous year: EUR 97.7 million, adjusted figure before a positive
one-off effect from the sale of the minority interest in DocuWare).
Accordingly, earnings per share amounted to EUR 0.84 (previous year: EUR
0.85).
- The increase in the equity ratio to 46.9% (previous year: 40.7%) and the
high cash conversion rate of 91.4% demonstrate the Group's healthy financial
position, which is geared toward further growth.
- Nemetschek plans to increase the dividend by around 7% to EUR 0.30 per
share (previous year: EUR 0.28 per share). Subject to approval by the Annual
General Meeting on May 12, 2021, the total dividend payout would rise to EUR
34.7 million.
Segment performance in 2020
The four segments of the Nemetschek Group were affected to varying degrees
by the coronavirus in 2020 due to their regional focuses and customer groups
(see table).
- The Design segment, which focuses on Europe, felt the effects of the
crisis early on, but reported a clear stabilization in the second half of
the year. At EUR 314.9 million, revenues in 2020 were up slightly on the
previous year (EUR 314.7 million), while the EBITDA margin remained high at
30.4% (previous year: 31.1%).
- The Build segment, with its focus on the construction industry in the USA,
felt the effects of the crisis with a time lag, as expected. Revenues
increased by 8.7% (adjusted for currency effects: 10.3%) to EUR 193.0
million. The EBITDA margin was up as compared to the previous year at 36.3%
(34.7%).
- In the still young Manage segment, too, the effects of the Covid-19
pandemic were felt with a time lag. Overall, growth of 6.2% (adjusted for
currency effects: 6.3%) to EUR 40.9 million was reported. The EBITDA margin
was 9.0% due to investments in future growth.
- The Media & Entertainment segment was strengthened by the acquisition of
US company Red Giant. Despite simultaneous switch to subscription models,
significant growth of 62.8% (adjusted for currency effects: 65.0%) to EUR
55.2 million was achieved. Organic growth was also impressive at 20.6%. The
EBITDA margin rose to 28.1% (previous year: 27.8%).
Strategic priorities: Focus on stronger integration and recurring revenues
A key focus in 2021 continues to be a more intensive bundling of the
competencies of the Nemetschek brands in the four segments. In the Design
segment, on the product side two cross-brand workflow solutions (Integrated
and Federated Design) were successfully launched on the market for the first
time in 2020. Moving forward, the Group's internal complexity will be
reduced, synergies created and overarching solutions developed for customers
from a single source.
Nemetschek's objective remains to steadily increase its recurring revenues
from service contracts and rental models in order to maintain a close
customer contact and a high level of customer satisfaction, secure long-term
sustainable growth and provide greater planning security. Rental models in
particular make it possible to tap into new customer groups as customers
have shown greater demand for this flexible option, especially during the
pandemic. In the four segments, the offer and implementation of rental
models are at different stages of progress due to the differing needs of
customers by discipline and region. Following the successful conversion to
subscription models in the Media segment in 2020, the Bluebeam brand in the
Build segment will begin its conversion to a cloud- and data-centric
offering (SaaS) in the second half of 2021. The stronger shift to
subscription/SaaS business models creates value by opening up additional
market potential through newly addressed customers, expanded customer
lifetime value, and increased recurring revenues.
Financial outlook 2021 and future growth ambition
Thanks to the continued positive fundamental market opportunities and a
strong operating and financial base of the Nemetschek Group, the Executive
Board is positive about the year 2021. On the basis of a successful start to
the new fiscal year and assuming that there is no deterioration in the
general economic conditions, the Executive Board expects currency-adjusted
revenue growth at least in the high single-digit percentage range in 2021.
At the same time, the Nemetschek Group will further increase its share of
recurring revenues. Group EBITDA will continue to be in the high target
range of 27% to 29%.
In 2022, further growth is expected at a similar level as in 2021, with an
even stronger shift to subscription/SaaS models at the same time. Based on
further strategic progress as well as the structurally attractive
subscription business, the Executive Board is therefore optimistic to again
achieve significantly accelerated and sustainable revenue growth in the
mid-teens percentage range starting in 2023.
Overview of full year key figures
In EUR million 12M 12M in %
2020 2019 in (FX-adj)
%
Revenues 596.9 556.9 +7.- +8.3%
2%
- thereof software licenses 210.0 228.2 -8.- -6.9%
0%
- thereof recurring revenues 359.0 299.5 +19- +21.1%
.9%
- Subscription/SaaS (part of recurring 90.4 50.3 +79- +82.2%
revenues) .6%
EBITDA 172.3 165.7 +4.- +4.9%
0%
Margin 28.9% 29.7%
EBITA 149.3 143.7 +3.-
8%
Margin 25.0% 25.8%
EBIT 122.5 123.6 -0.- -0.4%
9%
Margin 20.5% 22.2%
Net income (Group shares) 96.9 127.2 -23-
.8%
Earnings per share in EUR 0.84 1.10 -23-
.8%
Net income (Group shares) w/o one-time 96.9 97.7 -0.-
effect prior year* 7%
Earnings per share in EUR w/o one-time 0.84 0.85 -0.-
effect prior year* 7%
Net income (Group shares) before PPA and 115.2 110.8 +4.-
w/o one-time effect prior year* 0%
Earnings per share in EUR before PPA and 1.00 0.96 +4.-
w/o one-time effect prior year* 0%
*Prior year figure w/o positive one-time effect from DocuWare sale
Overview of quarterly key figures (Q4)
In EUR million Q4 Q4 in %
2020 2019 in (FX-adj)
%
Revenues 160.1 150.8 +6.- +9.7%
1%
- thereof software licenses 58.0 60.9 -4.- -1.2%
7%
- thereof recurring revenues 93.6 82.0 +14- +18.0%
.2%
- Subscription/SaaS (part of recurring 26.9 15.9 +69- +75.8%
revenues) .7%
EBITDA 43.0 46.2 -7.- -3.0%
0%
Margin 26.9% 30.6%
EBITA 37.2 40.3 -7.-
9%
Margin 23.2% 26.7%
EBIT 30.4 35.2 -13- -10.0%
.5%
Margin 19.0% 23.3%
Net income (Group shares) 29.2 31.7 -7.-
9%
Earnings per share in EUR 0.25 0.27 -7.-
9%
Net income (Group shares) w/o one-time 29.2 31.7 -7.-
effect prior year* 9%
Earnings per share in EUR w/o one-time 0.25 0.27 -7.-
effect prior year* 9%
Net income (Group shares) before PPA and 33.2 35.1 -5.-
w/o one-time effect prior year* 4%
Earnings per share in EUR before PPA and 0.29 0.30 -5.-
w/o one-time effect prior year* 4%
*Prior year figure w/o positive one-time effect from DocuWare sale
Overview of full year key figures per segment
In EUR million 12M 2020 12M 2019 in % in % FX-adj.
Design
Revenue 314.9 314.7 +0.1% +0.9%
EBITDA 95.9 98.0 -2.2% -3.0%
EBITDA margin 30.4% 31.1%
Build
Revenue 193.0 177.7 +8.7% +10.3%
EBITDA 70.1 61.6 +13.7% +16.5%
EBITDA margin 36.3% 34.7%
Manage
Revenue 40.9 38.5 +6.2% +6.3%
EBITDA 3.7 7.9 -53.4% -51.8%
EBITDA margin 9.0% 20.5%
Media & Entertainment
Revenue 55.2 33.9 +62.8% +65.0%
Revenue organic 40.5 33.9 +19.4% +20.6%
EBITDA 15.5 9.4 +65.0% +72.0%
EBITDA margin 28.1% 27.8%
Overview of quarterly key figures per segment (Q4)
In EUR million Q4 2020 Q4 2019 in % in % FX-adj.
Design
Revenue 85.6 84.8 +1.0% +3.2%
EBITDA 19.7 28.2 -30.1% -29.3%
EBITDA margin 23.0% 33.3%
Build
Revenue 48.7 47.7 +2.1% +8.0%
EBITDA 15.2 16.3 -6.5% +1.5%
EBITDA margin 31.2% 34.0%
Manage
Revenue 11.7 11.2 +3.8% +3.9%
EBITDA -0.4 3.9
EBITDA margin -3.6% 34.3%
Media & Entertainment
Revenue 15.9 9.2 +73.0% +80.4%
Revenue organic 12.9 9.2 +40.8% +45.2%
EBITDA 4.1 0.8 +418.3% +460.9%
EBITDA margin 26.2% 8.7%
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 a pioneer for digital transformation in the AEC
industry. With its intelligent software solutions, it covers the entire
lifecycle of building and infrastructure projects and guides its customers
into the future of digitalization. As one of the leading corporate groups
worldwide, the Nemetschek Group increases quality in the building process
and improves the digital workflow of all those involved in the building
process. This makes it possible to design, build and manage buildings with
greater efficiency, sustainability and environmental compatibility in terms
of resources. The focus is on the use of open standards (Open BIM). The
portfolio also includes digital solutions for visualization, 3D modeling and
animation. The innovative products of the 15 brands of the Nemetschek Group
in the four customer-oriented segments are used by approximately six million
users worldwide. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek
Group today employs more than 3,000 experts.
Publicly listed since 1999 and quoted on the MDAX and TecDAX, the company
achieved revenue amounting to EUR 596.9 million and an EBITDA of EUR 172.3
million in 2020.
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23.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Nemetschek SE
Konrad-Zuse-Platz 1
81829 München
Germany
Phone: +49 (0)89 540459-0
Fax: +49 (0)89 540459-444
E-mail: investorrelations@nemetschek.com
Internet: www.nemetschek.com
ISIN: DE0006452907
WKN: 645290
Indices: MDAX, TecDAX
Listed: Regulated Market in Berlin, Frankfurt (Prime Standard);
Regulated Unofficial Market in Dusseldorf, Hamburg,
Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1177351
End of News DGAP News Service
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1177351 23.03.2021
°
Nemetschek SE: Raised Targets for 2020 Fully Achieved - At Least High Single-Digit Growth with High Profitability in 2021 (english)
Am 23. März 2021 um 07:00 Uhr
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