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 closes third quarter of 2019 with record earnings and undiminished high rate of growth

Corporate News News Company News

  • +20.4% increase in revenue to EUR 138.3 million in Q3 2019
  • +31.5% growth in recurring revenue, accelerated by subscriptions
  • +46.4% rise in EBITDA to EUR 42.8 million leads to high EBITDA margin of 30.9%
  • + Earnings per share triples to EUR 0.47, driven by strong operating performance and positive one-off effect resulting from the successful sale of DocuWare
  • Targets in the upper end confirmed for the year 2019 as a whole

Munich, October 31, 2019 – The Nemetschek Group (ISIN DE 0006452907), Germany’s second largest listed software company, continued on its dynamic growth course in the third quarter with an increase in revenue of 20.4% compared to the corresponding quarter in the previous year. The operating result before interest, tax and depreciation and amortization (EBITDA) clearly increased over-proportionally to revenue by 46.4%, which caused the operating margin to rise by more than five percentage points to 30.9%.

“Nemetschek is on a direct course to another record year. The results at the nine-month point reflect our strong positioning across the entire value chain process in the building industry, and are inherent to high growth dynamics and increased efficiency. Our Group has never been as strong and competitive as it is today,” sums up Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group.

Major indicators of the Group’s success in Q3 and the first nine months of 2019

  • In the third quarter, Group revenue rose to EUR 138.3 million. A high rate of organic growth of 15.7% and the strong development of the recently acquired Spacewell brand led to a total growth rate of 20.4% compared to the same quarter of the previous year. In the first nine months of the year, revenues increased by 22.7% compared to the same period in the previous year, organically by 17.2%.

  • With a plus of 31.5%, rising to EUR 76.6 million, recurring revenue from software service contracts and subscriptions remained a major growth driver in Q3. The nine-month perspective indicated similar growth dynamics (+33.9%).

    Revenues from rental models (subscriptions) contributed in particular to this, rising by 119.0% in Q3 and by 129.6% in the first nine months. In the case of several Nemetschek brands such as dRofus, RISA and Spacewell, a large portion of business is already based on subscriptions. At the beginning of September of this year, with Maxon a further brand has strengthened the strategic alignment of the Nemetschek Group with its new product release towards a subscription-based business model, which most importantly offers new customers very attractive options since there is no longer a license fee. The growing subscription-based revenues ensure high levels of continuity and planning reliability. The growth power of Nemetschek can thus no longer be measured solely in terms of license sales.

  • The operating Group earnings (EBITDA) clearly increased over-proportionally compared to revenue in Q3 by 46.4%, reaching EUR 42.8 million. The EBITDA margin consequently jumped to a high 30.9% (previous year: 25.5%). In the nine months, the margin improved, rising to 29.4% (previous year’s period: 26.7%).

    The strong increase was positively influenced by the initial application of the new IFRS 16 concerning the accounting of leases. Adjusted for this effect, the EBITDA margin in Q3 amounted to 28.2%, which was more than that of the previous year, and reached the previous year’s level in the first nine months (26.7%).

  • The quarterly profit almost tripled in Q3 as a result of the strong operative business and a positive one-off effect arising from the successful sale of the non-strategic interest in DocuWare of EUR 18.2 million, rising to EUR 54.0 million. The income arising from the sale of DocuWare in the amount of EUR 29.9 million is reflected in the financial results. The earnings per share rose accordingly from EUR 0.16 to EUR 0.47. Adjusted for the positive one-off effect, the result is a quarterly profit of EUR 24.1 million (+32.4%), and earnings per share amounting to EUR 0.21. From a nine-month perspective, it was possible to increase the profit for the period by 81.3%, rising to EUR 95.4 million, which corresponds to earnings per share in the amount of EUR 0.83 (previous year: EUR 0.46).

Segment highlights in Q3 and in the first nine months of 2019

  • The Build segment continues to be a growth driver of the Nemetschek Group with an increase in revenue of 25.2% in Q3, and of 27.9% in the first nine months. The corresponding clearly over-proportional rise in EBITDA (Q3: +76.3%, 9M: +51.7%) led to peak margins in this segment of 32.0% in Q3 and 32.7% in the first nine months.

  • The Design segment recorded growth of 9.8% in Q3, and 11.3% in the nine-month perspective. EBITDA increased over-proportionally by 33.6% in Q3, which caused the EBITDA margin to reach 31.4% (previous year’s quarter: 25.8%) and rose to 29.0% in the first nine months (previous year’s period: 24.9%).

  • The Manage segment was considerably strengthened by the acquisition of the Spacewell brand (initial consolidation as of September 2018). As a result of organic growth and the strong contribution of Spacewell, revenues in Q3 increased from EUR 3.6 million in the previous year’s period to EUR 9.7 million. In the first nine months, it was possible to increase revenue to EUR 27.2 million (previous year’s period: EUR 7.7 million). In Q3, the EBITDA margin amounted to 23.1%. The margin for the first three quarters of 12.6% includes the acquisition costs of EUR 1.5 million for the acquisition of the Axxerion brand from the first quarter. Adjusted for these acquisition costs, the EBITDA margin reached 18.1%.

  • In the Media & Entertainment segment, strong growth was achieved with the simultaneous conversion to subscription models. The subscription model was introduced in late Q3 and contributed to the highest September results in segment history. As a result of organic growth and the contribution of the acquired Redshift, revenues rose by 26.0% in Q3 and 24.3% in the first nine months. The EBITDA margin in the first nine months amounted to 35.1% (previous year’s period: 41.9%) as a result of the acquisition and integration costs for Redshift as well as the conversion costs for subscriptions.

Targets in the upper end anticipated for the year 2019 as a whole

As a result of the strong development in the first nine months, the executive board expects that the previously set corporate targets for the year 2019 as a whole will be comfortably achieved in terms of revenue as well as in terms of the EBITDA margin. Group revenue is thus anticipated in the upper end of the announced range of EUR 540 million to EUR 550 million, which corresponds to a growth of 17% to 19% compared to the previous year.

The executive board sees the EBITDA margin in the upper end of the target range of 27% to 29%, including the effects from the conversion to the new leasing standard IFRS 16*.

*For the first time, as of January 1, 2019, the new financial reporting standard IFRS 16 is to be considered, according to which leases of any kind (operating or finance leasing) are to be accounted for and recognized. As a result of this reform, the Nemetschek Group anticipates a positive effect on the EBITDA level in the range of approximately EUR 14 million to EUR 15 million. The Nemetschek Group will provide detailed information on the effects on EBITDA arising from IFRS 16 in the quarters.

 

Overview of quarterly key figures (Q)
 

in EUR million

Q3 2019

Q3 2018

Δ in %
 

Δ in %
(FX-adj)

Revenue

138.3

114.9

  +20.4%

+18.0%

- thereof software licenses

55.0

52.3

+5.1%

+2.7%

- thereof recurring revenues

76.6

58.3

+31.5%

+29.0%

- Subscription (part of recurring revenues)

13.1

6.0

+119.0%

+115.1%

EBITDA

42.8

29.2

+46.4%

+40.7%

Margin

30.9%

25.5%

 

 

EBITDA (adjusted for IFRS 16)

38.9

29.2

+33.2%

+27.5%

Margin (adjusted for IFRS 16)

28.2%

25.5%

 

 

EBITA (normalized EBIT)

36.3

27.0

+34.4%

 

Margin

26.2%

23.5%

 

 

Net income (Group shares)

54.0

18.2

+197.2%

 

Earnings per share in EUR*

0.47

0.16

+197.2%

 

Net income (Group shares) w/o
one-off effect of the DocuWare sale 

24.1

18.2

+32.4%

 

Adjusted earnings per share in EUR*

0.21

0.16

+32.4%

 

Net income (Group shares) before
amortization from purchase price allocation (PPA)

57.4

21.1

   +172.0%

 

Earnings per share before PPA in EUR*

0.50

0.18

  +172.0%

 

*For reasons of better comparability, the earnings per share after the stock split are shown

 

9-month overview of key figures
 

In EUR million

9M 2019

9M 2018

Δ in %
 

Δ in %
(FX-adj)

Revenue

406.0

330.9

  +22.7%

+19.6%

- thereof software licenses

167.3

155.8

+7.4%

+4.2%

- thereof recurring revenues

217.5

162.4

+33.9%

+30.8%

- Subscription (part of recurring revenues)

34.5

15.0

+129.6%

+124.5%

EBITDA

119.4

88.2

+35.4%

+30.7%

Margin

29.4%

26.7%

 

 

EBITDA (adjusted for IFRS 16)

108.2

88.2

+22.7%

+17.9%

Margin (adjusted for IFRS 16)

26.7%

26.7%

 

 

EBITA (normalized EBIT)

101.0

82.0

+23.2%

 

Margin

24.9%

24.8%

 

 

Net income (Group shares)

95.4

52.6

+81.3%

 

Earnings per share in EUR*

0.83

0.46

+81.3%

 

Net income (Group shares) w/o
one-off effect of the DocuWare sale 

65.5

52.6

+24.5%

 

Adjusted earnings per share in EUR*

0.57

0.46

+24.5%

 

Net income (Group shares) before
amortization from purchase price allocation (PPA)

105.2

61.1

   +72.1%

 

Earnings per share before PPA in EUR*

0.91

0.53

  +72.1%

 

*For reasons of better comparability, the earnings per share after the stock split are shown

 

Overview of quarterly key figure per segment (Q3)

In EUR million

Q3 2019

Q3 2018

Δ in %
 

Δ in %
(FX-adj)

Design

 

 

 

 

Revenue

76.5

69.7

+9.8%

+8.3%

EBITDA

24.0

18.0

+33.6%

+28.9%

EBITDA margin

31.4%

25.8%

 

 

EBITDA margin (adjusted for IFRS 16)

28.7%

25.8%

 

 

Build

 

 

 

 

Revenue

44.2

35.3

+25.2%

+20.9%

EBITDA

14.1

8.0

+76.3%

+67.6%

EBITDA margin

32.0%

22.7%

 

 

EBITDA margin (adjusted for IFRS 16)

28.8%

22.7%

 

 

Manage

 

 

 

 

Revenue

9.7

3.6

+168.7%

+168.1%

EBITDA

2.2

0.9

+146.0%

+145.3%

EBITDA margin

23.1%

25.2%

 

 

EBITDA margin (adjusted for IFRS 16)

19.6%

25.2%

 

 

Media & Entertainment

 

 

 

 

Revenue

7.9

6.2

+26.0%

+23.3%

EBITDA

2.4

2.3

+3.3%

-2.0%

EBITDA margin

30.8%

37.5%

 

 

EBITDA margin (adjusted for IFRS 16)

29.4%

37.5%

 

 

 

9-month overview of key figures per segment

In EUR million

9M 2019

9M 2018

Δ in %
 

Δ in %
(FX-adj)

Design

 

 

 

 

Revenue

226.5

203.6

+11.3%

+9.4%

EBITDA

65.6

50.8

+29.1%

+26.0%

EBITDA margin

29.0%

24.9%

 

 

EBITDA margin (adjusted for IFRS 16)

26.4%

24.9%

 

 

Build

 

 

 

 

Revenue

128.8

100.7

+27.9%

+22.2%

EBITDA

42.2

27.8

+51.7%

+42.9%

EBITDA margin

32.7%

27.6%

 

 

EBITDA margin (adjusted for IFRS 16)

29.5%

27.6%

 

 

Manage

 

 

 

 

Revenue

27.2

7.7

+251.4%

+250.9%

EBITDA

3.4

1.7

+102.1%

+103.0%

EBITDA margin

12.6%

22.0%

 

 

EBITDA margin (adjusted for IFRS 16)

8.8%

22.0%

 

 

Media & Entertainment

 

 

 

 

Revenue

23.5

18.9

+24.3%

+20.9%

EBITDA

8.2

7.9

+4.0%

+0.7%

EBITDA margin

35.1%

41.9%

 

 

EBITDA margin (adjusted for IFRS 16)

33.7%

41.9%

 

 

 

Overview of half-year key figures per segment

In EUR million

6M 2019

6M 2018

Δ in %
 

Δ in %
(FX-adj)

Design

 

 

 

 

Revenue

150.0

133.9

+12.0%

+10.0%

EBITDA

41.6

32.8

+26.7%

+24.4%

EBITDA margin

27.7%

24.5%

 

 

EBITDA margin (adjusted for IFRS 16)

25.2%

24.5%

 

 

Build

 

 

 

 

Revenue

84.6

65.4

+29.4%

+22.9%

EBITDA

28.0

19.8

+41.8%

+32.9%

EBITDA margin

33.2%

30.3%

 

 

EBITDA margin (adjusted for IFRS 16)

29.9%

30.3%

 

 

Manage

 

 

 

 

Revenue

17.5

4.1

+323.2%

+322.8%

EBITDA

1.2

0.8

+51.7%

+54.6%

EBITDA margin

6.9%

19.1%

 

 

EBITDA margin (adjusted for IFRS 16)

2.8%

19.1%

 

 

Media & Entertainment

 

 

 

 

Revenue

15.7

12.7

+23.5%

+19.7%

EBITDA

5.8

5.6

+4.2%

+1.8%

EBITDA margin

37.2%

44.1%

 

 

EBITDA margin (adjusted for IFRS 16)

35.9%

44.1%

 

 

 

The complete 9-month report for 2019 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 is a pioneer for digital transformation in the AEC industry. As the sole corporate group worldwide, Nemetschek covers the entire life cycle of building and infrastructure projects with its software solutions and guides its customers into the future of digitalization. With its intelligent and innovative software solutions, the Nemetschek Group increases quality in the building process and improves the digital workflow of all those involved in the building process. This revolves around the use of open standards (Open BIM). The innovative solutions of the 16 brands in the four customer-oriented divisions are used by more than five million users worldwide. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group today employs more than 2,800 experts. Publicly listed since 1999 and quoted on the MDAX and TecDAX, the company achieved revenue in the amount of EUR 461.3 million and an EBITDA of EUR 121.3 million in 2018.

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