Nemetschek (NEM-FF)

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Hermann S

Nemetschek is a company offering information technology solutions in the architecture, engineering, and construction sector. The group is marketing 10 different brands - Allplan, Graphisoft, Vectorworks, Scia, Frilo, Glaser, Auer, Bausoftware, Crem, and Maxon. More than 270,000 customers in 142 countries work with the products. The company is specialised on integrated software solutions which create synergies and optimize the complete life cycle of buildings in terms of quality, cost and time.^[1]

Company Overview

Nemetschek is listed in the Prime Standard on the Frankfurt Stock Exchange. The company was growing significantly by the recent aquisition of Graphisoft in 2006. The company was founded by Prof. Georg Nemetschek in 1963 and 53.51% of the shares are still owned by the Nemetschek family. Nemetschek is market leader in the AEC software segment in Europe and behind Autodesk worldwide number two.

Business and Financial Metrics

Nemetschek is reporting according to the IFRS standard. The fiscal year is starting January 1 and reporting currency is EUR.^[2] A 2.9% increase of revenues to 150.4 mill. EUR and a drop of net profits to 11.4 mill. EUR were reported for 2008. Net profits included a one time impact of - 2.5 mill. EUR due to a revaluation of interest rate swaps which the company had entered into as part of the Graphisoft aquisition. The reported equity ratio was 40.6%.^[3]

Business Segments

CAD and Building Information Modelling

Nemetschek offers software solutions and services to create 3D models of the building and include all relevant information in the model. All required details for the planning, construction and management of buildings can be derived from the model. The groups brands are Allplan, Graphisoft and VectorWorks. Graphisoft has strong presence in Eastern Europe and VectorWorks is developed by the US subsidiary in Maryland. Customers of the products are architects, engineeers and construction companies.

Scientific Applications and Certification

The subsidiary Scia (Scientific Applications) is selling software for the calculation and dimensioning of reinforced concrete slabs and project management. Frilo specializes is the development of software for structural calculations and covers all areas of civil engineering required for the certification of structures. Glaser is offering software for formwork and reinforcement design, steel construction, wood construction and roof design.

Business Applications

Bausoftware and Auer are offering business application software which is targeted at midsize building and industrial construction companies. Crem Solutions is selling software and services for the management of real estate.

Virtual Reality

Maxon is a specialist for 3D graphics software. CINEMA 4D and BodyPaint 3D are being used worldwide in advertising, film, architecture, science and design.

Key Trends and Forces

Improved 3D and Building Information Model

Efficient planning and realisation of buildings requires improved integration levels and interfaces to support the project process with seamless information flow. After radical improvements of 3D modelling and CAE software the next step is to find better integration and associativity of the complete data sets including the portion needed for estimating, enquiry and ordering of the civil work.^[4]

Current Downtrend / Credit Crisis

Globally, the construction industry is negatively affected by the economic downturn. Nemetschek reported an 11% drop in revenues and a stable EBITDA margin of 20% (previous year 21%) for the first 3 quarters in 2009.^[5]

Competition

AutoDesk is offering building information modelling software and is targeting the same customer base (among many others).^[6] Other huge companies (Oracle, SAP, Infor) are competing in the field of business application software. Nemetschek's strength is the focus on the construction business as a customer.

References

1. ↑ Webpage of Nemetschek AG
2. ↑ Nemetschek AG - Publications
3. ↑ Nemetschek - Annual Report 2008, 2009-03-27
4. ↑ AutoDesk - Information on Building Information Modeling
5. ↑ Quarterly Statement as of September 30, 2009
6. ↑ Company Presentation, October 2009