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 maintains growth dynamic in third quarter of 2018 and significantly increases revenues and profits

  • Group revenues again show strong double-digit growth of 19.8% in third quarter
  • Accelerated growth in recurring revenues (+26.4%) in Q3, driven by subscription models (+64.7%)
  • EBITDA margin of 26.7% after nine months at top end of target range accompanied by high strategic investment
  • Earnings per share in Q3 at EUR 0.47 significantly up on previous year (+ 19.9%)
  • Executive Board affirms outlook for the year 2018

Munich, October 30, 2018 – The Nemetschek Group (ISIN DE0006452907) has maintained its strong growth in the third quarter and further enhanced its earnings. At the same time, the world’s second largest provider of software solutions for the AEC sector invested in strategic projects to be sure of continued double-digit growth in the future.

Major indicators of the Group’s success in Q3 / the first nine months of 2018

  • Group revenue in Q3 2018 rose to EUR 114.9 million, yet again demonstrating a strong growth rate of 19.8% (currency-adjusted: 19.7%) compared to the previous year. Purely organic growth in Q3 amounted to 17.0%. Cumulative revenues for the first nine months rose by 14.2% (currency-adjusted: 18.0%) to EUR 330.9 million. Organic growth amounted to 12.4%.
  • Recurring revenues from software service contracts and subscriptions remained growth drivers in Q3, rising by 26.4% to EUR 58.3 million. An increase of 20.5% was recorded for the period January to September. This disproportionate increase reflects the strategic change to the business model of offering subscriptions in addition to licenses. Revenue from subscriptions increased considerably in Q3 by 64.7% to EUR 5.6 million. Growth in the first nine months was an impressive 46.9%.
  • Consolidated operating earnings(EBITDA) increased in Q3 by 17.8% year on year to EUR 29.2 million. In the first nine months, the EBITDA rose by 15.3% to EUR 88.2 million; at 26.7%, the EBITDA margin was slightly up on the previous year (26.4%) and as such at the top end of the target range for 2018 of between 25% and 27%. At the same time, Nemetschek invested as planned in strategic projects, including further internationalization and innovative solutions, so as to ensure it would be able to consistently achieve double-digit growth in the future.
  • In Q3, the net income (Group shares) rose by a significant 19.9% to EUR 18.2 million, prompting the earnings per share to increase to EUR 0.47. Cumulative net income for the first nine months rose by 22.9% to EUR 52.6 million, which corresponds to earnings per share of EUR 1.37.

“Our sustained fast pace of growth shows that our strategic priorities are the right ones. The acquisition of MCS Solutions represents a strategically important investment in the Manage segment. We have also maintained the growth dynamic in licenses and recurring revenues from subscriptions and service contracts. And even with our investments in growth, our profitability is still at a very high level.  All of this provides an extremely solid basis for the final quarter of the year and beyond,” says Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group.

Segment development

  • The strongest revenue growth, both in Q3 (35.4%) and in the first nine months (25.6%) (currency-adjusted: +32.9%), was in the Build segment. At 58.1%, the cumulative EBITDA for the first nine months grew disproportionately compared to revenue growth, resulting in the EBITDA margin reaching an impressive 27.3% in the first nine months. Alongside the US brand Bluebeam, Solibri also achieved strong growth, especially in the Nordic countries and the UK.
  • Q3 also saw double-digit revenue growth (11.1%) in the Design segment. The cumulative increase after nine months was 8.9% (currency-adjusted: 11.3%). Due to investments in growth in this segment in the first nine months of the year, the EBITDA margin decreased year on year from 27.8% to 25.0%.
  • In the third quarter, the Manage segment was significantly reinforced through the acquisition of MCS Solutions, headquartered in Antwerp. MCS Solutions offers modular and integrated software solutions for property, facility and workplace management as well as smart building platforms designed to optimize productivity and efficiency for building administrators. The first consolidation began in September, meaning MCS contributed revenues of EUR 1.4 million in Q3. Growth in the Manage segment rose in Q3 by 75%, while organic growth was at 8.3%. Cumulative growth amounted to 32.4% (organic: 8.9%). The EBITDA margin increased from 20.1% to 22.0% in the first nine months.
  • The Media & Entertainment segment recorded a significantly accelerated revenue growth rate of 18.5% in Q3. Cumulative growth after nine months was 7.9% (currency-adjusted: 11.5%). The EBITDA margin increased significantly from 36.9% to 41.9% in the period from January to September. Nemetschek SE increased its share of Maxon from 70% to 100% at the beginning of July. Under the leadership of a new CEO, the brand is now expected to leverage its growth potential even further in the key AEC markets.

Outlook for the Group for 2018 is affirmed

The Nemetschek Group has confirmed the goals it had set itself so far for the whole of 2018 and expects to achieve EUR 447-457 million* in Group-wide sales this year. The EBITDA margin is expected to be in the corridor of 25% and 27%.

*The revenue forecast is based on a planned exchange rate of 1.18 EUR / USD.

 

KPIs in quarter summary

In EUR million

Q3 2018

Q3 2017

Δ in %

Δ in %
(FX-adj)

Revenue

114.9

95.8

+19.8 %

+19.7 %

– of which software licenses

52.3

45.9

+14.1 %

+13.5 %

– of which recurring revenues

58.3

46.1

+26.4 %

+26.5 %

– subscriptions (part of recurring revenues)

5.6

3.4

+64.7 %

+66.3 %

EBITDA

29.2

24.8

+17.8 %

+16.4 %

Margin

+25.5 %

+25.9 %

 

 

EBITA (normalized EBIT)

27.0

22.8

+18.4%

 

Margin

23.5%

23.8%

 

 

Net income (Group shares)

18.2

15.1

+19.9 %

 

Earnings per share in EUR

0.47

0.39

+19.9 %

 

Net income (Group shares)before PPA amortization

21.1

17.4

+20.7 %

 

Earnings per share before amortization from purchase price allocation (PPA) in EUR

0.55

0.45

+20.7 %

 


KPIs in 9-month summary

In EUR million

9M 2018

9M 2017

Δ in %

Δ in %
(FX-adj)

Revenue

330.9

289.8

+14.2 %

+18.0 %

– of which software licenses

155.8

142.8

+9.1 %

+13.2 %

– of which recurring revenues

162.4

134.8

+20.5 %

+24.2 %

– subscriptions (part of recurring revenues)

14.5

9.9

+46.9 %

+54.5 %

EBITDA

88.2

76.5

+15.3 %

+17.2 %

Margin

26.7 %

26.4 %

 

 

EBITA

82.0

70.5

+16.2%

 

Margin

24.8%

24.3%

 

 

Net income (Group shares)

52.6

42.8

+22.9 %

 

Earnings per share in EUR

1.37

1.11

+22.9 %

 

Net income (Group shares)before PPA amortization

61.1

50.0

+22.2 %

 

Earnings per share before amortization from purchase price allocation (PPA) in EUR

1.59

1.30

+22.2 %

 

 

Segment KPIs in quarterly summary

In EUR million

Q3 2018

Q3 2017

Δ in %

Δ in %
(FX-adj)

Design

 

 

 

 

Revenue

67.8

61.0

+11.1 %

+11.1 %

EBITDA

17.4

17.4

-0.1 %

+1.1 %

Margin

25.6 %

28.5 %

 

 

Build

 

 

 

 

Revenue

37.2

27.5

+35.4 %

+34.8 %

EBITDA

8.6

5.6

+54.9 %

+51.4 %

Margin

23.1 %

20.2 %

 

 

Manage

 

 

 

 

Revenue

3.6

2.1

+75.0 %

+76.0 %

EBITDA

0.9

0.5

+85.7 %

+89.0 %

Margin

25.2 %

23.8 %

 

 

Media & Entertainment

 

 

 

 

Revenue

6.2

5.3

+18.5 %

+17.7 %

EBITDA

2.3

1.4

+72.1 %

+74.2 %

Margin

37.5 %

25.9 %

 

 


Segment KPIs in 9-month summary

In EUR million

9M 2018

9M 2017

Δ in %

Δ in %
(FX-adj)

Design

 

 

 

 

Revenue

198.1

181.9

+8.9 %

+11.3 %

EBITDA

49.6

50.5

-1.9 %

-0.9 %

Margin

25.0 %

27.8 %

 

 

Build

 

 

 

 

Revenue

106.2

84.6

+25.6 %

+32.9 %

EBITDA

29.0

18.4

+58.1 %

+69.0 %

Margin

27.3 %

21.7 %

 

 

Manage

 

 

 

 

Revenue

7.7

5.8

+32.4 %

+32.7 %

EBITDA

1.7

1.2

+44.7 %

+46.0 %

Margin

22.0 %

20.1 %

 

 

Media & Entertainment

 

 

 

 

Revenue

18.9

17.5

+7.9 %

+11.5 %

EBITDA

7.9

6.5

+22.7 %

+25.9 %

Margin

41.9 %

36.9 %

 

 

The full 9-month report for 2018 can be downloaded from the Investor Relations section of the company’s website.


For further information about 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 driving digitalization in the building sector. Our software helps architects, engineers, construction companies and building managers plan more proactively, exchange information securely and seamlessly, and collaborate more closely. This means that building and infrastructure projects can be executed more efficiently and sustainably. Thanks to the unique holding structure of the Nemetschek Group, its 16 strong brands can act as entrepreneurs close to the market, drive innovation and work closely with their 4 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group today employs more than 2,500 experts. Listed on the stock market and noted in the TecDAX since 1999, in 2017 the company achieved revenues of 395.6 million euros and an EBITDA of 108.0 million euros.