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: The start of the year shows planned revenue growth with sustained high profitability

Corporate News News

  • Group revenues in Q1 increased currency-adjusted by 13.1% to EUR 102.2 million
  • Recurring revenue is key driver (currency-adjusted: +22.4% year-on-year)
  • EBITDA margin still at high 27.3% with simultaneously significant strategic investments
  • Earnings per share significantly above the previous year value at EUR 0.43 (+15.2%)
  • Outlook for entire 2018 year confirmed

Munich, April 27, 2018 – The Nemetschek Group (ISIN DE0006452907), the world’s second-largest provider of software for the AEC industry, began the 2018 fiscal year according to plan, despite the negative currency effects and a high comparable base from the strong first quarter of last year. The biggest growth impetuses came from the recurring sales from maintenance contracts and rental models (subscriptions). 

Key success indicators of the group in the first quarter of 2018

  • The group revenues rose to EUR 102.2 million, which is a currency-adjusted growth of 13.1% (reported: 6.2%) compared to the high previous year value of EUR 96.3 million.
  • The drivers of the growth were the recurring revenues from software service contracts and subscription, which increased currency-adjusted by 22.4% (reported: 15.6%) compared to the previous year quarter to EUR 50.6 million and thus already makes up 49.5% of the total revenues. The disproportionate increase reflects the strategic change of the Nemetschek business model of offering subscriptions in addition to licenses. This change is gentle and respects the customer’s wishes. Due to the strong demand for subscription, the revenues from this type of revenue increased in the first quarter significantly disproportionately to the group growth currency-adjusted by 47.3% (reported: 33.8%) to EUR 4.3 million.   
  • The operational group earnings before interest, taxes, depreciation and amortization (EBITDA) increased currency-adjusted by 13.3% (reported: 5.9%) to EUR 27.9 million. Nemetschek achieved a high EBITDA margin of 27.3% and at the same time made significant investments in strategic projects.
  • The net income (group shares) rose significantly disproportionately to the revenues by 15.2% to EUR 16.4 million so that the earnings per share increased to EUR 0.43. The tax rate of 24.5% (period last year: 28.4%) was in particular positively impacted by the US tax reform. This positive tax effect will continue in the long term.
  • The operating cash flow increased significantly by 19.6% to EUR 26.6 million. The cash conversion (EBITDA to operating cash flow) was still at an extremely high level at 95.2%.

Segment development

  • On a segment basis, the Build segment achieved the strongest revenue growth in the first quarter with currency-adjusted 26.6% (reported: 13.1%) at EUR 31.6 million. The EBITDA of the segment rose by 55.6% to EUR 9.8 million in particular due to the strong development of the US brand Bluebeam so that the EBITDA margin reached 31.0%.
  • In the Design segment, the revenues rose currency-adjusted 8.2% (reported: 3.5%) to EUR 62.8 million. The exceptionally strong quarter in the previous year is to be taken into account. The EBITDA margin declined from 28.3% to 24.2% compared to the previous year due to the increased investments.
  • The Manage segment continued its double-digit growth with a positive 12.2% to EUR 2.0 million. The EBITDA increased by 39.1% to EUR 0.4 million.
  • The earnings in the Media & Entertainment segment rose currency-adjusted by 5.3% (reported:
  • -1.3%) in the first quarter to EUR 5.8 million. The EBITDA margin achieved almost the high level of the previous year at 44.3%.

“Despite the negative currency effects, we are satisfied with the development in the first quarter. Nemetschek is completely on schedule,” sums up Patrik Heider, spokesman of the executive board and CFOO of the Nemetschek Group. “Our economic strength is the prerequisite for being able to sustainably invest in the future viability of Nemetschek. Given our unique solution portfolio and our promising product pipeline, we are confident that we will reach our goals for 2018 and also our goals for the medium-term,” continues Heider.

Group outlook for 2018 confirmed

For the current year of 2018, the company confirms its previous outlook and expects group revenues in the range of EUR 447 million to EUR 457 million.* The EBITDA margin is expected to be in the corridor of 25% and 27% that is already achieved and is also sought after moving forward. At the same time, Nemetschek is investing an additional EUR 10 million in strategic projects.

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

Overview of key figures

In EUR millionQ1 2018Q1 2017Δ in %
(FX-adj)
Revenues102.296.3+6.2%
(+13.1%)
- thereof software licenses

47.3

48.5-2.6%
(+4.8%)
- thereof recurring revenues50.643.8+15.6%
(+22.4%)
EBITDA27.926.3+5.9%
(+13.3%)
EBITDA margin27.3%27.4% 
EBITA (normalized EBIT)26.024.4+6.5%
EBITA margin25.4%25.3% 
Net income (Group shares)16.414.2+15.2%
Earnings per share in EUR0.430.37+15.2%
Net income (Group shares) before PPA depreciation19.116.7+14.3%
Earnings per share in EUR before PPA depreciation0.500.43+14.3%

Key figures by segment

In EUR millionQ1 2018Q1 2017Δ in %
(FX-adj)
Design   
Revenues62.860.7+3.5%
(+8.2%)
EBITDA15.217.2-11.6%
(-8.9%)
EBITDA margin24.2%28.3% 
Build   
Revenues31.627.9+13.1%
(+26.6%)
EBITDA9.86.3+55.6%
(+78.5%)
EBITDA margin31.0%22.6% 
Manage   
Revenues2.01.8+12.2%
(+12.2%)
EBITDA0.40.3+39.1%
(+39.2%)
EBITDA margin17.6%14.2% 
Media & Entertainment   
Revenues5.85.9-1.3%
(+5.3%)
EBITDA2.62.6-1.9%
(+2.2%)
EBITDA margin44.3%44.6% 

The entire 3-month report for 2018 is available for download on the company’s website under Investor Relations.

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 driving the digitalization of the building industry. With our software, architects, engineers, construction companies, and facility managers can plan ahead, seamlessly share information and work together more closely. Building and infrastructure projects can thus be conducted more efficiently and sustainably. The unique holding structure provides our 15 strong brands with the flexibility to innovate in an entrepreneurial way while closely engaging with their 2.7 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the company today employs more than 2,000 experts. Publicly listed since 1999 and quoted on the TecDAX, the company generated revenues of EUR 395.6 million and an EBITDA of EUR 108.0 million in 2017.

Nemetschek Group Q1 2018 revenue growth
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