Nemetschek holds its ground in times of crisis

  • Revenues of 150.4 million euros
  • EBITDA margin of 20.9 percent
  • Cash flow for period at 30 million euros

Munich, February 18, 2009 – Nemetschek AG (ISIN 0006452907), Europe’s largest vendor of software for architecture, civil engineering and the building industry, managed to hold its ground in the last fiscal year despite the worldwide economic crisis and grew profitably in 2008 too. According to the provisional figures, revenues increased by 2.9 percent from 146.2 million euros to 150.4 million euros and are thus slightly higher than the most recently announced expectations.

Revenue growth in 2008 is largely attributable to sales in Germany, where the building industry managed to stay relatively stable. At 57.4 million euros, sales in Germany accounted for a third of overall revenues. The company achieved 39 percent of its revenues with long-term maintenance contracts. The consequences of the financial crisis first became noticeable in the last three months: in Q4, which is traditionally the strongest sales quarter, year-on-year revenues dropped by 4.6 percent from 43.4 million euros to 41.4 million euros.

EBITDA 31.4 million euros

The EBITDA in 2008 amounted to 31.4 million euros after 33.6 million euros in the previous year. This corresponds to an EBITDA margin of 20.9 percent after 23.0 percent 2007. In Q4 the EBITDA margin was 21.0 percent. The operating result (EBIT) was 21.0 million euros after 23.9 million euros in the previous year, the net income dropped from 15.3 million euros to 11.3 million euros. In particular, as a result of the drop in the interest level, the new market valuation of the interest rate swaps, which the company had entered into as part of the acquisition of Graphisoft, made a significant difference. This revaluation resulted in a one-time impact on interest of 2.5 million euros, which, however, did not have any effect on the cash flow.

The cash flow for the period is around 30 million euros and is thus at the same level as the previous year. The company managed to reduce the liabilities from the Graphisoft acquisition by more than half within two years. The debt now stands at 49.3 million euros. Nemetschek AG’s equity ratio increased from 33.7 to 39.7 percent.

In view of the uncertain global economic situation, the Managing Board will not provide a specific outlook. The complete annual report 2008 will be published on March 27, 2009.

Explanations

'Despite the economic downturn in the second half of the year we managed to increase our revenues and to cross the revenue threshold of 150 million euros for the first time in 2008,' says Ernst Homolka, CEO of Nemetschek AG. He added that the Nemetschek Group had survived the crisis largely unaffected to date but that from today’s perspective a sustainable forecast for 2009 could not be made and that the worldwide recession would also leave its mark on Nemetschek. However, the group had several strengths that would come to bear in the crisis. Among these were the comprehensive product portfolio and the broad customer base as well as the fact that the company achieved almost 40 percent of its revenues from long-term maintenance contracts. 'Nemetschek will definitely remain a significantly profitable company,' emphasized Homolka.