Corporate News

Nemetschek Group plans further strong revenue and earnings growth after record year 2014

- Revenue rises by 17.5% to EUR 218.5 million in 2014

- EBITDA grows over-proportionally to revenue by 22.8% to EUR 56.8 million

- Earnings per share significantly above previous year at EUR 3.27 (+31.1%)

- Proposed dividend rises to EUR 1.60 per share (+23%)

- Positive 2015 prospects: Bluebeam acquisition will accelerate growth

Munich, March 31, 2015 - The Nemetschek Group (ISIN 0006452907) looks back on a very successful 2014 fiscal year with a strong fourth quarter. Revenue and earnings reached record highs. The Group revenue of the Nemetschek Group increased by 17.5 percent to EUR 218.5 million (previous year: EUR 185.9 million), thus exceeding the forecast corridor of EUR 211 to 216 million. In the fourth quarter, revenues rose to EUR 65.0 million, a growth of 25.7% compared to the same quarter in the previous year (EUR 51.7 million).

Earnings from operative activities increased over-proportionally to revenue growth. The earnings before interest, taxes, depreciation and amortization (EBITDA) rose in the course to the year as a whole by 22.8% to EUR 56.8 million (previous year: EUR 46.3 million). The operating margin grew accordingly to 26.0% (previous year: 24.9%) and exceeded the forecast corridor of 23% to 25% despite the acquisition costs for US software company Bluebeam. EBITDA increased to EUR 18.0 million in Q4, a plus of 24.2% compared to the quarter of the previous year (EUR 14.5 million). The net income for the year (Group shares) rose considerably as of December 31, 2014: At EUR 31.5 million, this was 31.1% more than the previous year (EUR 24.0 million). Accordingly, the earnings per share rose from EUR 2.49 in the previous year to EUR 3.27. In Q4, the net income for the year (Group shares) rose by 16.5% to EUR 9.1 million, an earnings per share of EUR 0.95 (previous year: EUR 0.82).

Growth in all major regions
The Nemetschek Group further advanced its international growth strategy and extended its market presence, especially in the USA, with the acquisition of Bluebeam. In total, non-domestic revenues climbed by 19.5% to EUR 131.5 million (previous year: EUR 110.1 million). Thus, the share of revenues abroad rose to 60.2%. In addition to the USA, the growth regions include markets in Asia, especially Japan, and Latin America. Germany, too, continued to develop positively: With a plus of 14.6%, revenues increased to EUR 87.0 million (previous year: EUR 75.9 million).

Increase in revenue from software licenses and software service contracts
With a plus of 20.7%, revenues from software licenses rose to EUR 105.0 million (previous year: EUR 87.0 million). It was possible to increase revenues from software service contracts to EUR 101.0 million, a rise of 13.3% compared to the previous year (EUR 89.1 million).

"The achieved results of operations prove the sustainable success of the Nemetschek Group," summarizes Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group, regarding the 2014 fiscal year. "We exceeded our targets in terms of revenue and earnings, attained record figures and made important moves towards a successful future. The ongoing expansion of our solution portfolio, our innovative strength, consistent internationalization and the emphasis on growth - organic and as a result of acquisitions - are key drivers of this successful development. In keeping with our newly defined acquisition strategy, with the acquisition of Bluebeam we have thus invested in the megatrend of collaboration for the improved cooperation between all those involved in the building process. At the same time, the acquisition allows us to considerably extend our presence in the important US market."

Development of the segments
The Design segment is a major growth driver of the Group. There was a significant increase in revenues, which grew by 17.1% to EUR 175.1 million (previous year: EUR 149.5 million). The Vectorworks and Graphisoft brands in particular contributed to this growth. Purely organic growth (without the 11-month effect of EUR 9.2 million from DDS) was approx. 11%. EBITDA rose over-proportionally to revenue: At EUR 43.8 million it was 32.5% higher than that of the previous year (EUR 33.1 million). The EBITDA margin rose from 22.1% in the previous year to 25.0%.

In the Build segment, revenue rose by 30.4% to EUR 20.1 million (previous year: EUR 15.4 million). This includes revenues of EUR 4.9 million as a result of Bluebeam, consolidated since October 31, 2014. Organic revenue amounted to EUR 15.2 million and almost reached the previous year's level. EBITDA reached EUR 4.1 million (previous year: EUR 5.5 million), which corresponds to an EBITDA margin of 20.5% (previous year: 36.0%). The decline of the EBITDA margin can be traced back to the capitalization of own work capitalized in the amount of EUR 1.6 million in the previous year. In 2014 there were no further items of own work capitalized.

Revenues in the Manage segment rose by 5.0% compared to the previous year to EUR 5.3 million (previous year: EUR 5.0 million), with the fourth quarter being the strongest with 12.3% growth. EBITDA remained at the previous year's level at EUR 1.1 million.

The Media & Entertainment segment showed favorable revenue growth which rose by 12.4% to EUR 18.0 million (previous year: EUR 16.0 million) with strong year's end business. The EBITDA margin remained high at 43.2% (previous year: 40.7%).

Proposed dividend of EUR 1.60 per share
As in previous years, the Nemetschek Group would also like to involve its shareholders in the positive development. At the annual general meeting on May 20, 2015, the Executive Board and Supervisory Board will propose to increase the dividend to EUR 1.60 per share; a plus of 23% over the previous year (EUR 1.30 per share). The Nemetschek Group would thus pay out about 35% of the operative cash flow.

Positive prospects for 2015
In 2015, too, the Nemetschek Group plans to continue to grow profitably and sustainably and to gain market share. Growth will be accompanied by strategic investments, e.g. in extending BIM 5D expertise, targeting new customer segments in the area of Media & Entertainment and further internationalization of the brands. For the 2015 fiscal year, the Nemetschek Group anticipates an increase in revenue ranging from EUR 262 million to EUR 269 million (+20% to +23% compared to 2014). The Nemetschek Group estimates purely organic growth in the corridor of 6% to 9%. An increase in EBITDA in the target range of EUR 62 million to EUR 65 million is expected.

Overview of key figures

Key figures by segment

The complete 2014 annual report 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 92793 1229
szimmermann@nemetschek.com

About the Nemetschek Group
The Nemetschek Group, Munich, is a globally leading software provider for the AEC (Architecture, Engineering, Construction) industry. With its 13 brands, the Nemetschek Group now serves more than 1.8 million users in 142 countries from more than 50 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 revenues of EUR 218.5 million and an EBITDA of EUR 56.8 million in 2014.