Successful start in fiscal year 2014

  • Revenue increase of 16.7% to EUR 51.0 million
  • Above-proportional EBITDA growth to EUR 13.2 million (+22.3%)
  • EBITDA margin climbs to 25.8%
  • Earnings per share significantly higher than in previous year at EUR 0.78 (+37.2%)

Munich, April 30, 2014 – Nemetschek AG (ISIN 0006452907) had a successful start to the new fiscal year 2014 and was able to continue its growth course, both in terms of revenues and earn-ings.

Above-proportional earnings growth

Overall, in the first three months group revenues climbed by 16.7% to EUR 51.0 million (previous year: EUR 43.7 million). The earnings before interest, taxes and depreciation (EBITDA) improved above-proportionally compared to revenues. Up by 22.3% EBITDA rose to EUR 13.2 million as at the end of the first quarter 2014 (previous year: EUR 10.8 million). The EBITDA margin improved accordingly to 25.8% (previous year: 24.6%). The above-proportional increase in earnings is also reflected in net income for the period: at EUR 7.5 million, net income for the year (group share) was 37.2% higher than in the previous year (EUR 5.5 million). Accordingly, earnings per share rose to EUR 0.78 from EUR 0.57 in the previous year.

Internationalization continued

Non-domestic revenues rose in the first three months by 18.5% to EUR 30.6 million (previous year: EUR 25.9 million). "In the first quarter of 2014 we accelerated our growth in international markets and expanded our market presence", said Patrik Heider, CFOO and spokesman of Nemetschek AG. "Growth regions included Asia – in particular Japan – as well as North and Latin America", continued Heider. The strong market position of the Nemetschek Group in the DACH region also had a positive effect on revenue growth. Domestic revenues rose in the first quarter 2014 by 14.0% to EUR 20.3 million (previous year: EUR 17.8 million).

Rise in software licenses and software service contracts

After in the previous year when software service contracts in particular generated large growth im-pulses, software license sales again climbed significantly in the first quarter 2014. With a plus of 18.7% revenues from software licenses increased to EUR 24.3 million (previous year: EUR 20.5 million). The software service contracts continued the positive development of the previous year and also continued to grow in the first quarter of 2014. With a plus of 14.3% revenues from software ser-vices amounted to EUR 23.8 million (previous year: EUR 20.8 million). "The double-digit growth in both significant areas secures sustainable corporate growth for us. On the one hand we secure new customers through the licensing business and, on the other hand, we secure ourselves recurring revenues through service contracts" commented Heider.

Sound balance sheet and high liquid reserves

Also at the end of the first quarter of 2014 Nemetschek AG has an extremely solid net asset struc-ture and financial position. The equity ratio amounted to 62.5% as at March 31, 2014. Furthermore the Nemetschek Group has net liquidity of EUR 67.0 million and thus owns enough liquid reserves to continue further planned growth.

Development of the segments

The Design segment contributed most to the positive start to the year. With growth of 20.6% reve-nues climbed in the first quarter 2014 to EUR 41.9 million (previous year: EUR 34.7 million). It was possible to significantly increase EBITDA by 40.2% to EUR 10.3 million and thus the EBITDA margin amounted to 24.6% (previous year: 21.1%). Vectorworks and Graphisoft were able to gen-erate growth and expand their market presence in almost all regions. Allplan developed according to plan in the first quarter of 2014, in particular the software license business contributed positively to development.

In the Build segment revenues of EUR 3.9 million were slightly above the previous year level (EUR 3.8 million). Due to planned investments EBITDA amounted to EUR 0.9 million (previous year: EUR 1.2 million), which represents an EBITDA margin of 22.8%.

In the Manage segment the positive development from the previous year continued with a rise in revenues of 16.1%. Revenues rose within the first three months to EUR 1.2 million (previous year: EUR 1.0 million). EBITDA increased slightly to EUR 0.2 million. The EBITDA margin amounted to 17.0%.

The Multimedia segment demonstrated stable development. The slight decline in revenues in the first quarter 2014 to EUR 4.1 million is, above all, due to the very strong previous year quarter. The EBITDA margin remained high at 44.2%.

Outlook for 2014

Our positive start to the year confirms that we are on target to achieve the targets for the whole year 2014. We continue to view the market environment as solid and firmly maintain our objective of achieving revenues ranging from EUR 207 to 212 million (increase of 11% to 14%). We expect an EBITDA margin of between 23% and 25%.

Summary of key figures

In millions of EuroQ1 2014Q1 2013Δ in %
Revenues51.043.7+16.7%
- thereof software licences24.320.5+18.7%
- thereof software service23.820.8+14.3%
EBITDA13.210.8+22.3%
Margin25.8%24.6%
EBITA (normalized EBIT)12.09.7+23.5%
Margin23.6%22.3%
Net income (group shares)7.55.5+37.2%
Earnings per share in Euro0.780.57+37.2%
Net income for the year (group shares) before depreciation, amortization and purchase price allocation8.46.9+22.2%
Adjusted earnings per share before amortization of purchase price allocation0.870.71+22.2%

Key figures segments

In millions of EuroQ1 2014Q1 2013Δ in %
Design
Revenues41.934.7+20.6%
EBITDA10.37.3+40.2%
Margin24.6%21.1%
Build
Revenues3.93.8+0.7%
EBITDA0.91.2-28.6%
Margin22.8%32.1%
Manage
Revenue1.21.0+16.1%
EBITDA0.20.2+1.5%
Margin17.0%19.5%
Multimedia
Revenues4.14.1-1.7%
EBITDA1.82.0+10.1%
Margin44.2%48.3%

The complete report 3-monthly report 2014 can be found on the internet page of the company under Investor Relations as a download.