Nemetschek SE: Raised Targets for 2020 Fully Achieved - At Least High Single-Digit Growth with High Profitability in 2021
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Nemetschek SE: Raised Targets for 2020 Fully Achieved - At Least High Single-Digit Growth with High Profitability in 2021

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

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).

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 2020 12M 2019 Δ in % Δ in %
(FX-adj)
Revenues 596.9 556.9 +7.2% +8.3%
- thereof software licenses 210.0 228.2 -8.0% -6.9%
- thereof recurring revenues 359.0 299.5 +19.9% +21.1%
- Subscription/SaaS (part of recurring revenues) 90.4 50.3 +79.6% +82.2%
EBITDA 172.3 165.7 +4.0% +4.9%
Margin 28.9% 29.7%    
EBITA 149.3 143.7 +3.8%  
Margin 25.0% 25.8%    
EBIT 122.5 123.6 -0.9% -0.4%
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 effect prior year* 96.9 97.7 -0.7%  
Earnings per share in EUR w/o one-time effect prior year* 0.84 0.85 -0.7%  
Net income (Group shares) before PPA and w/o one-time effect prior year* 115.2 110.8 +4.0%  
Earnings per share in EUR before PPA and w/o one-time effect prior year* 1.00 0.96 +4.0%  

*Prior year figure w/o positive one-time effect from DocuWare sale

Overview of quarterly key figures (Q4)

In EUR million Q4 2020 Q4 2019 Δ in % Δ in %
(FX-adj)
Revenues 160.1 150.8 +6.1% +9.7%
- thereof software licenses 58.0 60.9 -4.7% -1.2%
- thereof recurring revenues 93.6 82.0 +14.2% +18.0%
- Subscription/SaaS (part of recurring revenues) 26.9 15.9 +69.7% +75.8%
EBITDA 43.0 46.2 -7.0% -3.0%
Margin 26.9% 30.6%    
EBITA 37.2 40.3 -7.9%  
Margin 23.2% 26.7%    
EBIT 30.4 35.2 -13.5% -10.0%
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 effect prior year* 29.2 31.7 -7.9%  
Earnings per share in EUR w/o one-time effect prior year* 0.25 0.27 -7.9%  
Net income (Group shares) before PPA and w/o one-time effect prior year* 33.2 35.1 -5.4%  
Earnings per share in EUR before PPA and w/o one-time effect prior year* 0.29 0.30 -5.4%  

*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 Δ in % Δ 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 Δ in % Δ 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.