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:

Outstanding 2017 financial year – Strong growth with high profitability in 2018 – 2020 growth target: > EUR 600 million in revenue

Corporate News

 

  • Software provider announces mid-term growth target for the first time
  • Outlook for 2018: Double-digit revenue growth envisaged, EBITDA margin remains in the corridor of 25% to 27% despite major investments
  • 2017: Group revenue rises by 17.3% to EUR 395.6 million
  • Over-proportional EBITDA growth of +22.7% to EUR 108.0 million
  • Earnings per share significantly above previous year at EUR 1.94 (+59.1%)
  • 9th consecutive dividend increase: Dividend payout forecast to rise to EUR 0.75 per share

Munich, March 29, 2018 – Following an extremely successful 2017 with new records in revenue and operating result, the Nemetschek Group (ISIN DE0006452907), the world’s second largest software provider for the AEC industry, announces a mid-term growth target for the first time: For 2020, a rise in revenue volume of more than EUR 600 million is planned.

The company anticipates revenue growth in the clear, double-digit percentage range for the current year of 2018. Despite future-oriented investments in the amount of EUR 10 million, the EBITDA margin is expected to remain as planned in the already achieved corridor of 25% and 27% in future.

Today the Nemetschek Group is publishing the 2017 annual financial statements, the key data of which was already announced on February 5, 2018.

 

Major indicators of the Group’s success in 2017

  • Group revenue rose to an all-time high of EUR 395.6 million, a growth of 17.3% compared to the previous year (currency-adjusted: 18.6%). Organic growth also rose considerably by 13.8% (currency-adjusted: +15.0%).
  • Recurring revenues from software service contracts and subscriptions, which rose by 25.5% to EUR 183.9 million, were growth drivers, already making up 46.5% of total revenues.
  • Continued internationalization is another growth engine: Revenues generated abroad rose by 19.9% to EUR 276.4 million. Especially in the USA, the trend-setting future market for new technologies, Nemetschek increased the revenues in 2017 with an above average growth of around 25%. The average growth in the past five years of around 45% is even stronger. The United States is meanwhile the largest single market in the Nemetschek portfolio, with a 30% share of total revenue.
  • On a segment basis, the Build segment experienced the strongest revenue growth with 31.0% (currency-adjusted: 33.1%), increasing to EUR 114.6 million. In particular, as a result of the continued strong development of Bluebeam and Solibri, organic growth was considerably higher than the Group average at 25.1%. It was possible to more than double EBITDA, causing the EBITDA margin to increase to 23.2%, up from the previous year’s 14.7%.
    In the Design segment, revenue rose by 12.8% to EUR 249.2 million (currency-adjusted: 13.8%). The brand with the strongest growth in this segment was Graphisoft. EBITDA rose by 11.1% percent to EUR 70.3 million. In the Manage segment, revenue rose by 13.8% to EUR 8.1 million. EBITDA was able to grow over-proportionally to revenue by 17.2%, rising to EUR 1.9 million. The Media & Entertainment segment increased revenue by 8.9% to EUR 23.8 million (currency-adjusted: 10.9%). The EBITDA margin rose slightly compared to the previous year to 38.8%.
  • Consolidated operating earnings before interest, taxes, depreciation and amortization (EBITDA) increased over-proportionally compared to revenue by 22.7%, rising to EUR 108.0 million, which corresponds to a high EBITDA margin of 27.3%. At the same time, the operating earnings development in the final quarter was extraordinarily high, also as a result of reporting date effects in the case of current investments.
  • As a result of strong operating performance and positive non-operating special effects, the net income for the year (Group shares) rose considerably by 59.1% to EUR 74.7 million, causing earnings per share to increase to EUR 1.94. Adjusted for the release of an earn-out liability (EUR 7.6 million) in the financial results, as well as positive tax effects (EUR 4.6 million) as a result of the US tax reform and the release of deferred tax provisions, the net income for the year is calculated at EUR 62.4 million, which corresponds to a rise of 33.0% compared to the previous year. The adjusted EPS amounts to EUR 1.62.
  • The operating cash flow increased significantly by 22.3% to EUR 97.4 million. The cash conversion at 90.2% remained at a high level. The Group equity ratio was above the previous year’s level (44.4%) at 49.5%.

 

9th consecutive dividend increase

As a result of the positive business development, a dividend in the amount of EUR 0.75 per share will be proposed to the annual general meeting on May 30, 2018 (previous year: EUR 0.65 per share). This would be an increase of some 15%. The proposed total dividends to be distributed amount to EUR 28.9 million. “2017 was an outstanding year for Nemetschek. We have once again proven our operational strength and our globally leading role in the AEC industry,” summarizes Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group. “We will keep on our course, combining organic growth with the high-potential acquisition of new brands. The key to our success remains our consistent alignment with customer benefit and our uncompromising quality standards. We want to improve digital workflows in the building industry and make them more efficient for the success of our meanwhile approximately 2.7 million customers worldwide. We see best growth opportunities worldwide for our Group in our market of double-digit growth, amounting to more than EUR 4 billion. This is reflected not least of all in our revenue target for 2020.”

 

Group outlook for 2018 and growth targets for 2020

From today’s perspective, on the basis of the current portfolio, the executive board anticipates Group revenue in the range of EUR 447 million to EUR 457 million* for 2018. Investments in the amount of EUR 10 million in strategic projects already underway at Group and brand levels are to secure this double-digit percentage growth for the future. Despite major investments, as achieved in the past, Group EBITDA is forecast to remain in the planned corridor of 25% to 27%. For the 2020 financial year, Nemetschek aims to generate Group revenue of more than EUR 600 million.

 

Overview of key figures

In EUR million

Q4 2017

Q4 2016

Δ in %
(FX-adj)

12M 2017

12M 2016

Δ in %
(FX-adj)

Revenues

105.7

91.9

+15.1%
(+19.4%)

395.6

337.3

+17.3%
(+18.6%)

- Thereof softwware licenses

52.2

46.8

+11.6%

195.0

175.8

+10.9%

- Thereof recurring revenues

49.1

40.5

+21.1%

183.9

146.5

+25.5%

EBITDA

31.5

21.4

+47.2%

108.0

88.0

+22.7%

Margin

29.8%

23.3%

 

27.3%

26.1%

 

EBITA (normalized EBIT)

29.4

19.4

+51.3%

99.9

80.7

+23.8%

Margin

27.8%

21.1%

 

25.3%

23.9%

 

Net income (Group shares)

31.8

10.7

+198.5%

74.7

46.9

+59.1%

Earnings per share in EUR

0.83

0.28

+198.5%

1.94

1.22

+59.1%

Adjusted net income**

19.7

10.7

+84.5%

62.4

46.9

+33.0%

Adjusted earnings per share in EUR**

0.51

0.28

+84.5%

1.62

1.22

+33.0%

Net income (Group shares) before PPA depreciation  

35.2

12.9

   +173.7%

85.2

55.1

+54.6%

Earnings per share before PPA depreciation

0.92

0.33

  +173.7%

2.21

1.43

+54.6%

 

*The revenue forecast is based on a planned exchange rate of 1.18 EUR/USD
** Adjusted for positive special effects of 12.2 m€ in total (thereof: 7.6 m€ in financial result and 4.6 m€ in taxes because of US tax reform and release of deferred tax provisions)

 

Key figures by segment

In Mio. Euro

Q4 2017

Q4 2016

Δ in %
(FX-adj)

12M 2017

12M 2016

Δ in %
(FX-adj)

Design

 

 

 

 

 

 

Revenues

67.3

58.6

+14.9%
(+18.2%)

249.2

220.9

+12.8%
(+13.8%)

EBITDA

19.8

17.4

+13.2%

70.3

63.2

+11.1%

Margin

29.4%

29.8%

 

28.2%

28.6%

 

Build

 

 

 

 

 

 

Revenues

30.0

25.5

+17.5%
(+24.9%)

114.6

87.5

+31.0%
(+33.1%)

EBITDA

8.3

1.3

 

26.6

12.8

+107.6%

Margin

27.6%

5.0%

 

23.2%

14.7%

 

Manage

 

 

 

 

 

 

Revenues

2.2

2.1

+4.8%

8.1

7.1

+13.8%

EBITDA

0.7

0.6

+9.7%

1.9

1.6

+17.2%

Margin

32.1%

30.7%

 

23.4%

22.7%

 

Media & Entertainment

 

 

 

 

 

 

Revenues

6.3

5.7

+9.7%
(+14.2%)

23.8

21.8

+8.9%
(+10.9%)

EBITDA

2.8

2.0

+36.4%

9.2

8.4

+9.5%

Margin

44.3%

35.6%

 

38.8%

38.6%

 

The complete 2017 annual report is available for download in the Investor Relations section of the company website.

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.

 

Press Contact

Nemetschek Group
Stefanie Zimmermann
Investor Relations
+49 89 540459 250
szimmermann@nemetschek.com

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