Nemetschek Se · XETR:NEM
Nemetschek — Investor Presentation (March 2011)
33 slides from Nemetschek's investor presentation, March 2011
Slide 1: Company Presentation
Company Presentation Ernst Homolka, CEO March 2011
Slide 2: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Outlook Background Information 1
Slide 3: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Outlook Background Information 2
Slide 4: Nemetschek at a glance
Nemetschek at a glance Nemetschek is the European leader for software solutions in the AEC sector (Architecture – Engineering – Construction) Holding structure with ten strong product brands Founded in 1963 as an engineering firm by Professor Georg Nemetschek (main shareholder) More than 1,000 emplo
Slide 5: Solutions for the whole building process
Solutions for the whole building process 4
Slide 6: Building process calls for better coordination (BIM)
Building process calls for better coordination (BIM) Building Information Modeling (BIM): The integrated process of designing, building and managing buildings – ideally supported by one digital Model accessible to every participant Source: BuildingSmart Forum Berlin, 2009 5
Slide 7: Adoption of BIM on the increase – with good reason
Adoption of BIM on the increase – with good reason BIM Adoption – North America vs. Europe BIM Benefits Contributing the Most Value Improved collective understanding 69% 2007 2009 2010 of design intent Improved overall project quality 62% Reduced conflicts 59% during construction 28% 49% 36% Reduced
Slide 8: Nemetschek covers main parts of the value chain
Nemetschek covers main parts of the value chain Software solutions support communication of all participants Allplan Architecture, ArchiCAD (Graphisoft) Architect Vectorworks Allplan Engineering , Glaser isb CAD Nemetschek Scia, Structural Nemetschek Frilo Civil Engineer Engineer Single Facilities B
Slide 9: Long-term corporate vision…
Long-term corporate vision… From European leader to worldwide leader for integrated AEC software solutions Melbourne Convention and Exibition Centre, Australia 8
Slide 10: … and how we want to get there
… and how we want to get there Grow organically and sustainably Developing new solutions – more than 22 percent of revenues are invested in R&D Consolidating the range of solutions – finding and retaining new partners Step by step internationalization Grow through acquisitions Broadening our interna
Slide 11: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Outlook Background Information 10
Slide 12: AEC Software: Local heroes and international players
AEC Software: Local heroes and 4 international players 2009 Comments revenues (million EUR) Autodesk 400 Revenue in the AEC segment Nemetschek 124 Revenue excluding 32% Multimedia and Real Estate Management 48 % Bentley 90 Nemetschek estimate Tekla 36 Segment Building & Construction 10% others 600 N
Slide 13: Nemetschek is number 1 in Europe
Nemetschek is number 1 in Europe Leading EMEA AEC Providers 2009 Revenues Nemetschek 118 Autodesk (Building, Buzzsaw & 114 Civils) Bentley (Building Plants & Civils) 106 AVEVA 74 Intergraph (PPM) 63 Tekla 20 Source: Cambashi 12
Slide 14: Steady market growth before economic downturn
Steady market growth before economic downturn Annual market growth rate used to be around 6 percent (since 2002)* Worldwide market volume for AEC software dropped by almost 20 percent in 2009** 1500,00 1485 1500 1414 1322 1296 1241 1200 1000,00 1089 1008 The world market for AEC Software in EUR mill
Slide 15: Growth driver for BIM solutions: Cost pressure
Growth driver for BIM solutions: Cost pressure The construction industry wants to increase productivity ̶ and is ready to invest in software Potential Adoption Drivers in Western Europe Current BIM Investment Priorities Improved communication between all parties 57% Developing internal collaborative
Slide 16: Growth driver for BIM solutions: Green building
Growth driver for BIM solutions: Green building Construction industry needs to deliver sustainable buildings Buildings account for almost 40 percent of all CO2 emissions Energy standards for buildings are being tightened, energy pass mandatory in Europe Economic stimulus packages all over the world
Slide 17: Nemetschek is benefiting from these trends
Nemetschek is benefiting from these trends Clear Focus on AEC – Architects and Engineers develop solutions for architects and engineers Realized BIM workflow between Nemetschek software products Strong support for open data exchange and non-proprietary exchange formats Broad range of solutions for t
Slide 18: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Outlook Background Information 17
Slide 19: Highlights 2010
Highlights 2010 Profitability and Cash Flow at record level EBITDA of 37 Mio. Euro - Margin at 25 percent Net income of 20 Mio. Euro EPS of 1.97 Euro (EPS adjusted by PPA effects 2.55 Euro) Free Cash Flow of more than 28 Mio. Euro New products and synergies New software solutions from Allplan, Graph
Slide 20: Profitable growth for years
Profitable growth for years 180 26 160 165.0 25 140 150.4 149.7 25 146.2 24 120 135.6 24 100 23 19 80 22 60 22 21 40 21 20 20 0 19 2007 2008 2009 2010 2011e 2007 2008 2009 2010 2011e Revenues in EUR millions EBITDA margin as % 19
Slide 21: Strong rate of maintenance contracts
Strong rate of maintenance contracts Software and licenses: 50 percent - New licenses sold, update and upgrade business Maintenance: 45 percent - Software service contracts running from 12 to 36 months Services & Hardware: 5 percent - Training, consulting, customizing in projects 7.0 5.0 46.0 45.0 M
Slide 22: International business recovered
International business recovered Stable business in Germany provided solid basis in times of crisis Nemetschek again generates 60 percent of its revenues outside its domestic market 120,00 100,00 15.0 80,00 42.5 36.7 38.2 43.0 40.7 42.0 60,00 40,00 57.5 63.3 61.8 57.0 59.3 20,00 43.0 0,00 2006 2007
Slide 23: High margins in the relevant business units
High margins in the relevant business units 140,0 45 120,0 40 121.6 38 39 38 35 100,0 109.6 30 80,0 25 29 60,0 20 17 22 20 15 40,0 9 10 20,0 14.0 13.5 11.1 4.0 8.1 3.6 5 0,0 0 YTD 2009 YTD 2010 YTD 2009 YTD 2010 Design Build Manage Multimedia Design Build Manage Multimedia Revenue development in EUR
Slide 24: Strong operating result and strong cash flow
Strong operating result and strong cash flow 40 35 35 37.1 30 32.2 33.6 30.4 30 31.4 30.4 25 25 25.3 20 23.4 20 20.7 15 18.3 15 10 10 5 5 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Operating result (EBITDA) Cash flow from operating activities in EUR millions in EUR millions * preliminary
Slide 25: Key Figures
Key Figures 2009 2008 YTD 2010 YTD 2009 in EUR millions in EUR millions in EUR millions in EUR millions Revenues 135.6 150.4 149.7 135.6 EBITDA 30.4 31.4 37.1 30.4 EBITDA margin 22% 21% 25% 22% EBIT 20.9 21.0 27.5 20.9 Cash flow from operating 23.4 30.4 32.3 23.4 activities Cash flow from investing
Slide 26: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Outlook Background Information 25
Slide 27: Outlook 2011
Outlook 2011 General market conditions improved significantly International markets recovered – in Europe as well as in the US and Asia-Pacific Total construction sector output in Europe remains stable – only Germany, France and Scandinavian Countries expected to grow* Nemetschek plans significant g
Slide 28: Key Takeaways
Key Takeaways Reliable basis of business Strong profitability – EBITDA-margin at around 23 percent High cash flows – operating result is reflected in a corresponding cash flow Stable earnings basis – almost 50 percent maintenance contracts Strong growth drivers Growing demand for BIM software soluti
Slide 29: Contents
Contents Company Profile and Business Model Market and Growth Drivers Business Development Latest Developments and Outlook Background Information 28
Slide 30: Current shareholder structure
Current shareholder structure Number of shares: 9,625,000 IPO: March 10, 1999 Frankfurt Stock Exchange, Prime Standard Market capitalization: approx. 280 million euros 25.1% Shares held by the Nemetschek family: 54 percent 46.43% 11.51% 11.51% 5.44% Prof. Georg Nemetschek Dr. Ralf Nemetschek Alexand
Slide 31: Share price development
Share price development Coverage DZ-Bank Goldman Sachs Macquarie WestLB 30
Slide 32: Calendar and contact
Calendar and contact Dates 2011 3/28/2011 Annual Report 2010 4/29/2011 Q1 Report 2011 5/24/2011 Annual General Meeting 7/29/2011 Half Year Report 2011 10/28/2011 Q 3 Report 2011 Contact Head of Investor Relations Regine Petzsch Phone: +49 89 92793 – 1219 Fax: +49 89 92793 – 4219 rpetzsch@nemetschek.
Slide 33: Disclaimer
Disclaimer This presentation contains forward-looking statements based on beliefs of Nemetschek AG management. Such statements reflect current views of Nemetschek AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those pr