Collaboration par excellence

Example: Hasselt City Hall, Belgium — The building of the new municipal administration center in Hasselt, Belgium, demonstrates how seamless collaboration in building projects can minimize risks and save costs from the design phase all the way to commissioning.
A joint project of several brands of the Nemetschek Group.
Nemetschek brands involved: Allplan, GRAPHISOFT, Solibri

Pioneering planning and project execution with Open BIM

“The end-to-end use of BIM solutions constitutes genuine added value for all stakeholders in the building process
because it enables seamless and efficient collboration”
Steven Hendrickx, Head Architect in Hasselt

Large-scale, highly complex building projects in particular require ongoing, reliable and efficient coodination between all stakeholders – both internal and external – across disciplines and between companies. Therefore, in association with other market players, the Nemetschek Group is promoting the Open BIM data standard. This is a universal, collaborative approach to designing, constructing and operating buildings based on open standards and workflows It makes it possible for project stakeholders to collaborate, even if the type of software varies from user to user. The Industry Foundation Classes (IFC) interface has established itself as an open standard and is therefore of central significance.

Sharing and evaluating data throughout the entire product life cycle saves time and money and improves quality. The administration of data is key to this digital transformation, for it is only possible to take full advantage of the potential if each stakeholder can access the data that he or she needs at any given time. This begins with a realistic BIM building model, which is an essential prerequisite for a genuine 5D workflo. This model is no longer limited to just 3D construction data; it also includes data concerning the dimensions of time and costs.

Seamless collaboration exemplified by the Hasselt City Hall

Under the management of the architect team comprising Jaspers-Eyers, MASS Architects and Michel Janssen, a new municipal administration center is being built in Hasselt. The complex, consisting of a renovated building section and a new building, provides approx. 17,000 m2 for the city administration and social services as well as offices. The architects and their most important partners are using Open BIM software solutions for the entire construction process. Three Nemetschek solutions are being implemented for this project: Archicad from Graphisoft for the design and planning of the architects, Allplan Engineering for civil engineering, and the Solibri Model Checker for the BIM quality control carried out by the construction company.

From the beginning, all information concerning the building project is contained in the digital building model – from the draft to implementation – including all design details, desired materials, fire protection requirements, acoustic properties, insulation and building structures, and administration. This constitutes considerable added value for all stakeholders compared to the old standard model, which was purely 3D. Thus, this improvement ensures more than just seamless collaboration between all those involved. The complex project can be turned over to the municipality – the proud building owner – with the required quality, on time and within the specified budget.

Hasselt City Hall is groundbreaking – in terms of design, planning and project implementation.

Independent and yet consistent

Steven Hendrickx, the head architect in Hasselt, recognized four decisive factors with Open BIM over the course of the successful project:

  • Individual partners design their model with their preferred BIM software, and with their own templates. Outstanding collaboration is ensured, though, thanks to a common, uniform standard which is specified in advance.
  • The division of labor is defined at the beginning of the project. Data on statics, for instance, have an essential impact on the architecture and structural design. Data on heating, ventilation and air-conditioning, on the other hand, are also important but don’t generally flow directly into the architecture. These data, for example, can be sufficiently analyzed with the BIM solution for quality assurance from Solibri.
  • Design changes in one area don’t necessarily affect the plans of all the others involved in the project. The architecture and the building stage are inherently the most closely linked.
  • The expertise of the staff, i.e., extensive holistic knowledge of the various building disciplines, is also critical for the success of the project.

Two examples of the advantage of precise planning

In Hasselt, the construction company was commissioned with excavation, among other tasks. An assessment of the amount of sand that needed to be removed was done based on a cal culation using conventional 2D planning methods, which yielded a result of 800 cubic meters. The engineers used the Solibri Model Checker based on Open BIM and the data provided by the architects and arrived at a figue that was just half this amount, i.e., 400 cubic meters of sand. This shows how exact the work with Open BIM solutions can be.

The steel struts to be installed are another example: With the interface function IFC Exports from Allplan, it was possible to use the BIM model to automatically calculate which steel struts needed fieproofing. All it took was a mouse click to obtain precise results, right down to the running meter. In projects that don’t use Open BIM solutions, these calculations are made by manually entering the data from 2D drawings in Excel or some other software and then recalculating and evaluating the data for use in quotations and planning, a process that is susceptible to error and one that leaves a lot of room for interpretation. These errors often go undetected until the actual cost planning is already completed. In the case of the Hasselt City Hall,  it was possible to avoid such errors from the outset.

Converting to Open BIM pays off

As is the case with any change, it takes a certain amount of time for companies and employees to accept BIM as the norm. The best way, according to Steven Hendrickx, is to start out by planning smaller projects using BIM. The experience thereby gained will make it possible to complete successively larger BIM projects. The advantages of collaborating through Open BIM are obvious: The entire workflow is much simpler for all project stakeholders, and building projects are completed within time and cost budgets.

CONCLUSION

Consistent standards and open interfaces in par-ticular are essential for successful building projects. Stakeholders need solutions that can “work together” for all and any individual tasks being performed. Seamless collaboration between humans and machines: This is ensured with Open BIM, and backed by the brands of the Nemetschek Group.

Reference projects on this topic:

Nemetschek Group anticipates further strong growth in revenue and earnings following record year 2016

Corporate News Company News

  • Group revenue rises by 18.2% to EUR 337.3 million in 2016
  • EBITDA grows clearly and over-proportionally to revenue by 26.6% to EUR 88.0 million
  • Earnings per share rise considerably to EUR 1.22 (+30.7%)
  • Dividend is to be increased to EUR 0.65 per share
  • Guidance for 2017: Double-digit growth rates planned for revenue and EBITDA

Munich, March 31, 2017 – Following a record year in 2016, indicators are pointing to continued strong growth for the Nemetschek Group (ISIN DE0006452907) in 2017. The company, one of the world’s leading software providers for the AEC (Architecture, Engineering, Construction) industry, again anticipates clear double-digit growth rates for Group revenue and Group EBITDA for the current financial year.

In the 2016 financial year, Nemetschek continued on its dynamic growth course and was able to increase earnings over-proportionally to revenue. “Throughout the entire course of the year, we have achieved double-digit growth rates while strengthening our global market position,” said Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group. “In addition to these operating successes, we were able to integrate two additional brands – Design Data and dRofus – in our portfolio and thus broaden our base for future growth even further.”

Key figures of the Group’s success in 2016

  • Group revenue rose to an all-time high of EUR 337.3 million, a growth of 18.2% compared to the previous year (EUR 285.3 million). Purely organic growth was a high 15.9%.
  • In terms of geography, the increase in revenue had a broad base: Non-domestic revenues climbed by 21.7% to EUR 230.5 million (previous year: EUR 189.5 million). The share of non-domestic revenue thus continued to grow according to plan, rising to 68.4% (previous year: 66.4%). Germany, too, continued to develop positively with double-digit revenue growth of 11.4%, rising to EUR 106.7 million (previous year: EUR 95.8 million).
  • The two pillars of revenue “software licenses” and “recurring revenue from software service contracts and rental models” grew at an almost identical pace. Recurring revenue rose by 19.7% to EUR 146.5 million (previous year: EUR 122.4 million), and now constitutes more than 43% of Group revenue. Software licenses also increased considerably by 16.9% to EUR 175.8 million (previous year: EUR 150.4 million).
  • Operating earnings before interest, tax and depreciation and amortization (EBITDA) grew over-proportionally to Group revenue by 26.6%, rising to EUR 88.0 million (previous year: EUR 69.5 million). The EBITDA margin improved over the course of the 2016 financial year, reaching 26.1%, following 24.4% in the previous year. In addition to strong growth, a one-off gain in the amount of EUR 1.9 million contributed to the increase in earnings. On the other hand, a negative tax effect in the amount of EUR 1.4 million as well as success-related increases in personnel costs had an impact. Even after adjustment for the positive one-off effect, Nemetschek was able to increase the EBITDA more strongly than revenue to EUR 86.1 million and improve the EBITDA margin to 25.5%.
  • With a plus of 30.7%, the net income for the year (Group shares) rose to EUR 46.9 million (previous year: EUR 35.9 million), which resulted in an increase in earnings per share to EUR 1.22 (previous year: EUR 0.93 per share).
  • The operating cash flow increased by 22.4% to EUR 79.7 million (previous year: EUR 65.1 million). The Group equity ratio remained high at 44.4% (previous year: 45.0%).
  • As a result of the positive business development, a dividend in the amount of EUR 0.65 per share will be proposed to the annual general meeting on June 1, 2017. This would be an increase of 30% compared to the previous year (EUR 0.50 per share).

Development of the segments

All four segments contributed to the favorable development of business in 2016.

  • In the Design segment, revenue rose by 11.1% to EUR 220.9 million. The Graphisoft brand achieved the strongest growth, followed by Data Design System and Allplan. EBITDA increased over-proportionally to revenue by 27.9% to EUR 63.2 million. The EBITDA margin improved from 24.9% to 28.6%.
  • The Build segment achieved a growth in revenue of 45.6%, rising to EUR 87.5 million. The Solibri brand, acquired at the end of 2015, is included for the first time for a full 12 months with a revenue contribution of EUR 4.5 million, and Design Data, acquired on August 1, 2016, contributed revenue amounting to EUR 4.7 million over a five-month period. Organic growth, driven in particular by US brand Bluebeam Software, reached a very high level with around 31%. EBITDA increased by 22.7% to EUR 12.8 million, with growth remaining below revenue growth as a result of major investments. The EBITDA margin reached 14.7% (previous year: 17.4%).
  • In the Manage segment, revenue rose by 12.0% to EUR 7.1 million. EBITDA was able to grow over-proportionally to revenue by 19.4%, rising to EUR 1.6 million. Accordingly, the EBITDA margin increased to 22.7% (previous year: 21.3%).
  • The Media & Entertainment segment increased revenue by 8.7% to EUR 21.8 million. EBITDA rose slightly from EUR 8.2 million to EUR 8.4 million, resulting in an EBITDA margin of 38.6% (previous year: 41.0%). Investments in product innovations are reflected in the earnings.

Optimistic outlook for 2017

In 2017, the Nemetschek Group will continue to pursue its corporate policy which aims for sustained growth. This growth is coupled by strategic investments, e.g., in further internationalization and cross-brand projects.

Without accounting for currency influences and further possible acquisitions, the Nemetschek Group plans to generate Group revenue in the range of EUR 395 million to EUR 401 million (+17% to +19%) in the 2017 financial year. Purely organic growth (excluding the companies dRofus, consolidated since the beginning of the year, and Design Data, included for the first time for the full 12 months) is anticipated to be between 13% and 15%.

Operating earnings are also expected to grow considerably. The executive board anticipates a 2017 Group EBITDA of between EUR 100 million and EUR 103 million. This would be an increase of 16% to 20% compared to the adjusted EBITDA of the previous year (EUR 86.1 million). Despite strategic investments and the lower EBITDA margins of the strongly expanding brands, this will allow Nemetschek to maintain the already high margin from 2016 in order to secure sustainable growth.

Nemetschek Group: Overview of key figures

In EUR millionQ4 2016Q4 2015Δ in %12M 201612M 2015Δ in %
Revenue91.979.3+15.8%337.3285.3+18.2%
- thereof software licenses

46.8

43.7+7,1%175.8150.4+16.9%
- thereof recurring revenues40.532.1+26.2%146.5122.4+19.7%
EBITDA21.420.1+6.5%88.069.5+26.6%
Margin23.3%25.3% 26.1%24.4% 
EBITDA (w/o one-time effect)*21.420.1+6.5%86.169.5+23.9%
Margin23.3%25.3% 25.5%24.4% 
EBITA (normalized EBIT)19.418.3+6.1%80.7

62.8

+28.5%
Margin21.1%23.1% 23.9%22.0% 
Net income (Group shares)10.711.7-8.9%46.935.9+30.7%
Earnings per share in euros0.280.30-8.9%1.220.93+30.7%
Net income (Group shares) before depreciation from purchase price allocation12.913.2-2.7%55.142.8+28.9%
Earnings per share before depreciation from purchase price allocation0.330.34-2.7%1.431.11+28.9%

* adjusted for the positive one-off effect arising in Q2 2016 in the amount of EUR 1.9 million

 

Key figures by segment

In EUR millionQ4 2016Q4 2015Δ in %12M 201612M 2015Δ in %
Design      
Revenue58.655.4+5.8%220.9198.8+11.1%
EBITDA17.414.8+18.0%63.249.5+27.9%
Margin29.8%26.7% 28.6%24.9% 
Build      
Revenue25.516.6+53.6%87.560.1+45.6%
EBITDA1.32.4-47.1%12.810.4+22.7%
Margin5.0%14.4% 14.7%17.4% 
Manage      
Revenue2.12.2+-2.2%7.16.3+12.0%
EBITDA0.60.7-8.5%1.61.3+19.4%
Margin30.7%32.8% 22.7%21.3% 
Media & Entertainment      
Revenue5.75.2+9.7%21.820.1+8.7%
EBITDA2.02.2-7.5%8.48.2+2.2%
Margin35.6%42.2% 38.6%41.0% 
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