Nemetschek Inreases Profit and Plans Dividend

Despite the drop in revenue, the group posted earnings of 30.4 million euros before interest, tax, depreciation and amortization (EBITDA), which is only marginally less than the previous year’s level of 31.4 million euros.

Nemetschek AG thus increased its EBITDA margin to 22 percent, up from 20.9 percent in 2008. At 20.9 million euros, the group’s earnings before interest and taxes (EBIT) were virtually the same as in the previous year (21 million euros). As a result of fewer interest expenses, the net income (consolidated shares) rose from 10.4 million euros to 12.2 million euros.

The cash flow for the period amounted to 28.6 million euros after 29.9 million euros in 2008. The cash flow from operating activities dropped from 30.4 million euros to 23.5 million euros due to the successful reduction in liabilities. The cash flow from investment activities amounted to 3.6 million euros after 4.7 million euros in the previous year. Nemetschek’s free cash flow in 2009 thus amounted to 19.8 million euros (previous year 25.7 million euros).

The cash stock amounted to 22.9 million euros, whereby the group’s net debt was reduced to 9.3 million euros (previous year 26.1 million euros). In 2009 the equity capital increased from 67.9 million euros to 79.6 million euros. The equity ratio increased accordingly from 40.6 to 49.9 percent in 2009.

Resumption of dividend payout

“In 2009 we proved that Nemetschek is a crisis-resistant company that is capable of generating profits and maintaining sustaining economic activity even in the most adverse conditions”, commented Ernst Homolka, member of the managing board and CEO, Nemetschek AG, referring to the 2009 annual report. He pointed out how investments in research and development had even increased slightly in 2009 (by 0.5 million euros to 33.6 million euros) and amounted to almost 25 percent of revenues.

The earnings per share were 1.27 euros, compared to 1.08 euros in the previous year. Due to the good result, at the annual general meeting the managing board and supervisory board will propose paying out around 4.8 million euros from the balance sheet profit of 13.8 million euros to shareholders. This is equivalent to a dividend of 0.50 euros per share. Based on the final share price in 2009 it is equivalent to a dividend yield of 3.1 percent.

“With an equity ratio of 50 percent and net debt in the single-digit millions, we can safely count ourselves among the German dividend shares”, said Homolka.

Profitable business units

The four business units under the Nemetschek AG roof offer end-to-end solutions for the entire value-added process – from the planning and design of a building and its visualization to the actual construction process and the use of the building. With revenues of 109.5 million euros, the Design business unit, which encompasses the software solutions of the portfolio companies with a focus on architecture and civil engineering, represented the bulk of the group’s revenues (previous year 124.3 million euros). The segment’s EBITDA amounted to 22.0 million euros after 24.3 million euros in 2008.

The second largest business unit of Nemetschek AG, the Build segment, encompasses the alphanumeric software products that accompany the actual construction process. Sales revenues in this unit increased to 14.0 million euros (previous year 12.9 million euros) thanks to strong project business toward the end of the year. The EBITDA increased from 3.5 million euros to 5.4 million euros. With sales revenues of 4.0 million euros (previous year 4.2 million euros) and an EBITDA of 0.7 million euros (previous year 0.5 million euros) the Manage business unit with its solutions for real estate management made a positive contribution to the group earnings. The Multimedia segment generated sales revenues of 8.1 million euros (previous year 9.0 million euros). The EBITDA amounted to 2.4 million euros after 3.1 million euros in the previous year.

Nemetschek wants to stabilize margin in 2010.

The company expects the revenue level to at least remain stable in 2010. Investment stimuli are still lacking in the commercial and residential construction sectors, but since the economic situation is slowly improving, the group’s companies anticipate low single-digit percentage growth.

“This means that in 2010 we should be in a position to at least maintain the current margin level and go ahead with our investment plans at the same time”, emphasized Homolka. “Increasing revenues will also be reflected in the operating result.” The group is still following a policy of strict cost discipline in all areas. However, Nemetschek will maintain high investments not only in research and development, but also increase its investments in developing its market presence in 2010. The operating result will continue to lead to a correspondingly high cash flow.

Thanks to its high cash flow, Nemetschek managed to repay 67.8 million euros of the bank loan of 100 million euros taken to finance the acquisition of Graphisoft in just three years. In 2010 and 2011 the interest expense will continue to fall and net income will continue to increase as result, said Homolka.

About Nemetschek

The Nemetschek Group is Europe’s leading vendor of software for architecture and construction. The graphical, analytical and commercial solutions cover a large part of the value chain in the construction industry –from the planning and visualization of a building to the construction process to building management. The portfolio of the software programs includes CAD solutions for architects and engineers up to construction software for cost planning, tenders, invoicing and execution of building work. There are also solutions for facility and commercial real estate management as well as visualization software for architecture and film industry.

The company was founded in 1963 and employs 1.064 people worldwide. His products are used by more than 300,000 customers in 142 countries worldwide In 2009, Nemetschek achieved revenues of 135.6 million euros and an operating result (EBITDA) of 30.4 million euros.

For more information, visit http://www.nemetschek.com.

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See Also

Nemetschek AG website

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Source: Material used in press releases is often supplied by external sources and used as is.