CIMdata PLM Industry Summary Online Archive
17 February 2011
Financial News
Nemetschek Achieves Record Result
Nemetschek AG increased revenues by 10 percent to 150 million euros in 2010, thus achieving the same revenue level as 2008 again. The operating result (EBITDA) increased to a record high: according to preliminary figures, the operating result amounts 37 million euros, an increase of 22 percent over the previous year. The EBITDA margin was 25 percent. The group thus exceeded its record result, which was set in 2007 (EBITDA of 34 million euros). Net income (group shares) rose by 55 percent to 19 million euros while the cash flow from operating activities increased by 37 percent to more than 32 million euros.
Significant increase in revenues from license sales and maintenance contracts
In 2010 the group largely managed to make up for the slump in license sales in the crisis year 2009. The revenues from license sales increased by 16 percent to 75 million euros. The revenues from long-term maintenance contracts have been increasing constantly for years and at an increasingly dynamic pace: in 2010 they increased by a total of 8 percent to 67 million euros. The group's foreign markets recovered above all in the past fiscal year: with a 15 percent increase in revenues to 89 million euros. Revenues in Germany rose by 5 percent to 61 million euros.
The Nemetschek Group managed to grow above all in the Design and Multimedia business units. In the Design unit, revenues increased by 11 percent to 122 million euros, the EBITDA margin in this segment was 22 percent, up from 20 percent in the previous year. In the Multimedia business unit, the revenues even increased by 37 percent to 11 million euros and, at 38 percent, the margin was at a record level (previous year: 29 percent). In the Build segment, revenues remained largely stable at 14 million euros and with a steady, high EBITDA margin of 39 percent. In the Manage business unit, revenues remained almost stable with roughly 4 million euros, the EBITDA margin was 9 percent (previous year: 17 percent).
Earnings per share up by more than 50 percent
As a result of the considerable growth coupled with a fundamentally stable cost structure, the Nemetschek group achieved an EBITDA of 37 million euros in 2010 (previous year: 30 million euros). At 118 million euros the operating costs were up by 9 percent from the previous year. However, this was largely attributable to revenue-dependent cost items such as dealer commissions and bonuses as well as higher expenses for the market launch of new product versions. Besides there were higher costs for external personnel due to the company-wide implementation of a new ERP-System. At 1,076 (previous year: 1,064) the workforce remained largely unchanged.
According to the preliminary figures, the operating profit (EBIT) increased by 32 percent to 28 million euros. At 19 million euros, the net income (group shares) increased disproportionately by 55 percent. This includes a one-off effect of 1.6 million euros as part of an investment reduction. The earnings per share (group shares, basic) are 1.96 euros, up from 1.27 euros in the previous year.
The strong operating result is also reflected in the cash flow: the cash flow from operating activities increased year-on-year by 37 percent to 32 million euros. The cash flow from investment activities was -4 million euros. The free cash flow thus amounted to more than 28 million euros.
Compared to December 31, 2009, cash and cash equivalents increased by 34 percent to 31 million euros and exceeded the remaining loans from the Graphisoft acquisition (20 million euros) by 11 million euros. The Nemetschek group has an equity ratio of 56 percent (December 31, 2009: 50 percent).
The complete annual report 2010 will be presented on March 28, 2011.
Significant growth planned in 2011
After spending 2010 successfully making up for the ground lost in 2009, Nemetschek plans to grow significantly in the current fiscal year: organic revenue growth of around 10 percent resulting in overall revenues of around 165 million euros is planned.
"To achieve our ambitious growth targets we have to invest in our product and service offerings as well as in our market presence," emphasized Ernst Homolka, CEO, Nemetschek AG. Nemetschek wants to drive forward with its internationalization activities in 2011; among other things, the company plans to establish a wholly-owned subsidiary in Brazil. In 2010, the group invested almost 24 percent of its revenues in research and development; furthermore, both the group’s subsidiary companies and the Nemetschek holding company have planned additional investments in 2011 to make the software solutions web-capable and to be able to offer new services over the Internet in the future.
"We will consistently harness new growth opportunities that arise as a result of the general trend toward cloud computing," explained Homolka. In some areas this includes a moderate expansion of the work force.
Against this background, Nemetschek will achieve an operating result (EBITDA) of around 37 to 39 million euros in 2011 as a whole, which would correspond to an EBITDA margin of around 23 percent. After depreciation and amortization (including PPA) of around 10 million euros the EBIT will amount to between 27 and 29 million euros.
Nemetschek is known for the fact that the strong operating result is also reflected in the operating cash flow. Thus, in the current fiscal year, the company will succeed in almost completely repaying the loan taken to finance the acquisition of Graphisoft. The interest charges will be reduced further as a result. For 2011, the management expects to achieve net income of around 19 to 21 million euros.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.