Nemetschek adjusts forecast for 2008

  • Significant drop in revenues in November
  • Revenues for 2008 likely to be at last year’s level
  • EBITDA margin of around 20 percent expected

Munich, December 14, 2008 – The effects of the worldwide economic slowdown are now being felt for the first time by the Nemetschek Group (ISIN 0006452907). In November, Europe’s leading vendor of information technology for the design, construction and management of buildings recorded a significant first-time drop in revenues – following uninterrupted growth up to and including October. International sales, in particular, were slow in November while revenues in Germany were largely stable. Under these circumstances, it is likely that the company will no longer be able to maintain the original revenue targets for the year. From today’s perspective, instead of a medium-digit percent increase in revenues, the group expects revenues to be at around last year’s level (146 million euros). Nevertheless, thanks to strict cost discipline, an EBITDA margin of around 20 percent ought to be achieved. In its most recent projection, the company had forecast a margin of more than 20 percent for 2008. The anticipated corporate profit is also likely to be affected by a necessary revaluation of the interest rate swaps following the change in the interest rates landscape. This results in a one-time interest payment of 1.7 million euros, which, however, will not have any effect on the cashflow.

Explanations

'The Nemetschek Group has defied the economic downturn for a long time, thanks also to the trend in German-speaking countries that is still comparatively stable,' says Nemetschek CEO Ernst Homolka. In view of the drop in revenues in November and the economic outlook, which has again worsened drastically, the company, however, now has to assume that end-of-year sales will be slow. Year-of-end sales are traditionally focused on November and December. Homolka stated that a serious forecast for 2009 was not yet possible in view of the uncertain economic outlook. 'The Nemetschek Group, however, has a firm footing. We have a strong cashflow and are focused on earnings.'