Nemetschek confirms outlook for 2009

  • Nine-month figures presented
  • revenues fall by 11 percent
  • EBITDA margin stable at 20 percent
  • cash flow from operating activities 18.1 million euros
  • expectations for 2009 confirmed

Munich, November 6, 2009 – Nemetschek AG (ISIN 0006452907), Europe's largest vendor of software for architecture, engineering and the construction industry achieved revenues of 96.9 million euros in the first nine months of 2009. Revenues therefore fell by 11 percent compared to the strong same period of the previous year (109.0 million euros). However, the company was able to keep its operating margin (EBITDA) more or less stable at 20 percent. In the same period of the previous year, it was 21 percent. The EBITDA amounted to 18.9 million euros, compared to 22.7 million euros in the first nine months of 2008. The net income was 6.5 million euros, compared to 9.4 million euros in the previous year.

Revenues from maintenance contracts rose slightly

Despite the difficult economic environment, the Nemetschek Group was able to increase revenues from maintenance contracts by two percent, from 45.3 million euros to 46.1 million euros. As a result, revenues from maintenance made up 48 percent of total revenues, compared to 42 percent in the same period of the previous year. Revenues from license sales, on the other hand, fell by 21 percent from 55.9 million euros to 44.0 million euros. Revenues from consulting and training dropped by 12 percent from 7.8 to 6.8 million euros.

In the German domestic market, the company saw revenues rise slightly, with 42.0 million euros following 41.3 million euros in the same period of the previous year. In the foreign markets, however, revenues fell from 67.7 million euros in 2008 to 54.9 million euros. The company's foreign revenue consequently fell from 62 percent of total revenues in 2008 to 57 percent.

Profitable segments

All four of the Group's segments were profitable in the first nine months of 2009. The companies in the Design segment, which are, in particular, responsible for the software solutions focusing on architecture and engineering, achieved revenues of 78.4 million euros, compared to 90.2 million euros in the previous year. This corresponds to a drop of 13 percent. The EBITDA margin was 17 percent, compared to 20 percent in the previous year.

In the Build business unit, which comprises the alphanumeric software products supporting the actual construction process, the companies were able to increase their revenues by 5 percent, from 9.3 million euros to 9.8 million euros, while the EBITDA margin rose to 34 percent (previous year: 27 percent).

The Manage segment, which develops solutions for commercial real estate management, achieved practically the same revenues as in 2008, namely 3.0 million euros. The EBITDA margin fell slightly from 19 to 16 percent. After revenues totaling 6.3 million euros in the same period of the previous year, the Multimedia segment (3D software for visualization and animation) achieved 5.8 million euros in the first nine months of 2009. The EBITDA was 1.5 million euros, corresponding to an operating margin of 26 percent, compared to 30 percent in the previous year.

Costs reduced further

Thanks to strict cost management, Nemetschek was able to absorb the bulk of the drop in revenues. Overall, operating costs fell by 9 percent and the measures implemented to date will continue to positively affect the company results.

Compared to the second quarter 2009, personnel expenses fell by 6 percent. Other operating costs were reduced by 18 percent from 35.7 million euros to 29.3 million euros. This is due among other things to savings in advertising, sales expenditure and external personnel costs.

After depreciation of intangible assets from the purchase price allocation for Graphisoft and Scia of 5.3 million euros, the Group's operating profit (EBIT) was 11.7 million euros, compared to 15.2 million euros in the same period of the previous year. Net income amounted to 6.5 million euros (previous year: 9.4 million euros). The earnings per share (consolidated shares) were 0.65 euros, compared to 0.93 euros in the same period of the previous year.

Net debt reduced

In the first nine months of 2009, the company achieved cash flow from operating activities of 18.1 million euros, compared to 22.8 million euros in the previous year. The cash flow from financing activities amounted to -11.5 million euros (previous year: -24.8 million euros). The previous year's amount contained repayments of 14.8 million euros as well as paid dividends of 6.3 million euros. Until September 30, 2009 the Nemetschek Group had repaid loan debts of 9.6 million euros.

Compared to December 31, 2008, the Group's liquid assets increased by 3.5 million euros to 26.7 million euros. As a result, the Group's net debt is 13.0 million euros (December 31, 2008: 26.1 million euros). The equity capital totals 73.7 million euros, compared to 67.9 million euros on December 31, 2008 - the equity ratio is 46 percent.

Drop in number of employees

As of September 30, 2009, the Nemetschek Group employed 1,069 people; at the end of 2008 the company had 1,114 employees worldwide. In recent months, the number of employees fell primarily in the subsidiaries in the United States and Belgium.

Outlook confirmed

The construction industry is still feeling the effects of the global economic crisis. Following a predicted drop in revenues of almost 10 percent in 2009, the European industry association Euroconstruct also anticipates a fall in revenues of 2 percent for 2010. The industry in Germany is performing comparatively well: for Germany, the construction industry association HDB expects a fall in revenues of 3 percent for the current year. The relatively stable development here is due not least to the federal government's massive economic programs, which are slowly having an impact: investment in refurbishment and the preservation of existing buildings has risen considerably, for example.

The Nemetschek Group is also profiting from this. 'With their solutions for energy-efficient construction and renovation, our subsidiaries are addressing exactly the right topics,' states Ernst Homolka, CEO of Nemetschek AG. In view of this and Nemetschek's strong position in the domestic market, management confirmed its previous forecasts. According to these, the Group expects a fall in revenue of around 10 percent, but should be able to keep its operating margin (EBITDA) steady at around 20 percent.