DGAP-News: Nemetschek SE

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Nemetschek Group: Clear double-digit revenue growth in first half of 2017 with continued high profitability

- Revenue for the half year grows by 20.1% to EUR 194.0 million

- EBITDA increases to EUR 51.7 million, which corresponds to an EBITDA margin of 26.6%

- Positive outlook for 2017 unchanged

Munich, July 28, 2017 - The Nemetschek Group (ISIN DE 0006452907), one of the leading providers of software solutions worldwide for the AEC (Architecture, Engineering, Construction) industry, has continued on its course of dynamic business development in the second quarter of 2017, maintaining high levels of profitability. The greatest growth impulses originated from abroad and from recurring revenues from maintenance contracts and rental models.

Major indicators of the Group's success

- Group revenue in the first half of the year amounted to EUR 194.0 million, which is 20.1% higher than the corresponding value from the previous year (EUR 161.5 million), whereby organic growth reached 14.8% and is therefore at the top end of the target range. In the second quarter, Group revenues climbed by 16.5% to EUR 97.7 million (previous year: EUR 83.8 million). The high basis for comparison resulting from the very strong Q2 from the previous year must be considered. Organic growth in Q2 of this year was 11.6%.

- The Nemetschek Group further reinforced its international alignment. Non-domestic revenue rose considerably and over-proportionally by 24.6% to EUR 136.7 million in the first half of the year 2017. Growth regions were primarily North America, Asia and Scandinavia. The non-domestic proportion of Group revenue increased further to 70.5% (previous year's period: 67.9%).

- Recurring revenue from maintenance contracts and rental models was subject to a strong rise of 29.1%. In the first six months, it increased to EUR 88.7 million (previous year's period: EUR 68.7 million) and thus made up approximately 45.7% of total revenue. Revenues from software licenses also rose in the double digits by 13.0% to EUR 96.9 million (previous year's period: EUR 85.8 million).

- The six-month earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 18.3% to EUR 51.7 million. The previous year's figure in the amount of EUR 43.7 million was adjusted for a positive one-off gain from Q2 2016 in the amount of EUR 1.9 million resulting from a legal dispute. In the first half of the year 2017, the EBITDA margin of 26.6% almost reached the corresponding level from the previous year (27.0%). Before adjustment for the one-off gain in the previous year, EBITDA increased by 13.4%.

- Net income for the year (Group shares) increased from January to June 2017 by 21.1% to EUR 27.7 million (first half of 2016: EUR 22.9 million adjusted for the positive one-off gain). The adjusted earnings per share rose from EUR 0.59 to EUR 0.72. Before adjustment for the one-off effect in the previous year, the net income for the year increased by 14.5%.

"After the first half year, we are completely within the anticipated ranges for 2017," said Patrik Heider, Spokesman and CFOO of the Nemetschek Group. "The second quarter was certainly challenging for us - not only because we had a very strong quarter in the previous year, but also because one of our largest brands from the Design segment shifted its product release and the corresponding revenue from the second quarter to the second half of the year. This makes us even more positive in our outlook for the second half of this year. Nemetschek is well on the way to another record year in terms of revenue and earnings."

Accounting ratios show financial strength
The Group's net asset structure and financial position remained extremely sound as of the end of the first half of the year. The equity ratio amounted to 43.6% as of June 30, 2017 (December 31, 2016: 44.4%). Despite the acquisition of dRofus at the beginning of this year and the dividend payment of around EUR 25 million after the annual general meeting on June 1, 2017, cash and cash equivalents amounted to EUR 83.4 million (December 31, 2016: EUR 112.5 million).

Development of the segments in the first half of the year 2017
In the Design segment, revenue rose by 13.1% to EUR 120.9 million (previous year's period: EUR 106.8 million). Purely organic growth was 10.7% without considering dRofus, which was acquired at the beginning of the year (revenue: EUR 2.6 million). The shift of the product release of one of the largest brands from the second quarter to the second half of the year is reflected in the organic growth. EBITDA increased by 13.2% to EUR 33.1 million (previous year: EUR 29.2 million). The operating margin thus remained unchanged compared to the previous year at 27.4%.

Also, supported by the acquisition of Design Data (revenue amount of EUR 5.7 million), the Build segment expanded very strongly. Segment revenue increased by 41.6% to EUR 57.1 million (previous year's period: EUR 40.3 million). Revenue rose organically by a high 27.4%. EBITDA increased almost proportional to revenue by 40.5% to EUR 12.8 million (first half of the year 2016: EUR 9.1 million) despite investment in future growth. EBITDA margin remained constant at 22.4% (previous year's period: 22.6%).

The Manage segment sustained the positive development from the first quarter and increased revenues in the first half of the year by 17.5% to EUR 3.8 million (previous year's period: EUR 3.2 million). EBITDA increased over-proportionally compared to revenue by 21.7%, reaching EUR 0.7 million. It was possible to increase the EBITDA margin accordingly to 18.1% (previous year: 17.5%).

Half-year revenue in the Media & Entertainment segment increased to EUR 12.3 million, a rise of 10.1% compared to the previous year's period (EUR 11.2 million). The EBITDA margin remained at a high 41.6% (previous year: 42.9%).

Very positive outlook for 2017 continues
Following the very favorable development in the first half of the year, the executive board confirms the previously set targets for the year 2017. It continues to anticipate Group revenue ranging from EUR 395 million to EUR 401 million (+17% to +19% compared to previous year). Purely organic growth is expected to be between 13% and 15%.

Regarding Group EBITDA, the executive board anticipates an increase to between EUR 100 million and EUR 103 million. The objective is to maintain the high margin level of 2016 despite strategic investment in future growth and EBITDA margins which are still below average for the strongly expanding brands acquired.

Overview of key figures

Key figures by segment

The complete six-month report for 2017 is available for download in the Investor Relations section of the company website.

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, Munich, is a globally leading software provider for the AEC (Architecture, Engineering, Construction) industry. Meanwhile, with its 14 brands, the Nemetschek Group now serves around 2.3 million users in 142 countries from 60 locations worldwide. Founded in 1963 by Professor Georg Nemetschek, the company focuses on innovations such as Open Building Information Modeling (Open BIM) for the AEC market of tomorrow. Publicly listed since 1999 and quoted on the TecDAX, the company achieved revenue in the amount of EUR 337.3 million and an EBITDA of EUR 88.0 million in 2016.