Ad-hoc | 2 November 2005 08:46

Nemetschek’s positive trend continues for results in the third quarter

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, November 2, 2005 – The Nemetschek group closed the first nine months of 2005 with a considerable growth in profit of 25 % and was also able to sustain the growth in sales. As a result, the technology provider for the design, building, and management of real estate saw an improvement for the third quarter running compared with the previous year and continued its positive growth trend in the international sphere. Operating profit increases by 25.1 % to 7 million euros Group sales rose to 69.5 million euros in the first nine months (previous year: 68.4 million euros). In the same period, Nemetschek was able to increase the operating profit (EBITA) by 25.1% to 7.0 million euros (previous year 3.1 million euros; previous year before goodwill amortization 5.6 million euros). On September 30, the net earnings for the year increased to 5.4 million euros (previous year 1.9 million euros; previous year before goodwill amortization 4.3 million euros). This represents an increase of 24.9 %. The technology provider was able to considerably increase the earnings per share to 0.56 euros (previous year 0.20 euros; previous year before goodwill amortization 0.45 euros). Solid financial situation for further development of the group The improvement in earnings meant that the cash flow for the period improved by 19 % to 9.9 million euros (previous year: 8.3 million euros). Nemetschek therefore not only demonstrates continued profitability but also enjoys a solid financial situation, which enables the group to actively pursue its measures for further strategic development. The liquid assets were 26.5 million euros on September 30 (December 31, 2004: 39.0 million euros before dividend payment), while the equity capital was 45.9 million euros (December 31, 2004: 60.0 million euros). This is equivalent to an equity ratio of 57.1 %. Outlook: Continued positive trend for results Nemetschek expects a traditionally strong fourth quarter in 2005. Nemetschek’s planning sees 2005 close with two-digit growth for the operating profit and a slight increase in sales. The complete nine-month report will be published on November 11, 2005. For additional information, contact: Nemetschek AG, Maren Moisl, Investor Relations, Tel. 089 – 9 27 93 1219, Fax 089 – 9 27 93 5404, moisl@nemetschek.de Nemetschek AG Konrad-Zuse-Platz 1 81829 München Deutschland ISIN: DE0006452907 WKN: 645290 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 02.11.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Nemetschek successful in the third quarter Munich, November 2, 2005 – The Nemetschek group closed the first nine months of 2005 with a considerable growth in profit of 25 % and was also able to sustain the growth in sales. As a result, the technology provider for the design, building, and management of real estate saw an improvement compared with the third quarter of the previous year and continued its positive growth trend in the international sphere. Growth in particular in the Design and NBO business units Group sales rose to 69.5 million euros (previous year: 68.4 million euros), with the Design and New Business Opportunities (NBO) business units in particular showing above-average development. International activities are constantly increasing. International sales account for 53 % of overall sales, up from 49 % in the previous year. Across all the business units, Nemetschek generates around 40 % of sales from fixed service contracts. “By concluding a service contract, our customers – designers, architects, engineers, construction companies, facility managers, and real estate management companies – receive the latest innovative software solutions, maintenance, support, and training,” explains Gerhard Weiß, chairman of the executive board. Operating profit increases by 25.1 % to 7 million euros In the first nine months, Nemetschek was able to increase the operating profit (EBITA) by 25.1% to 7.0 million euros (previous year 3.1 million euros; previous year before goodwill amortization 5.6 million euros). On September 30, the net earnings for the year increased to 5.4 million euros (previous year 1.9 million euros; previous year before goodwill amortization 4.3 million euros). This represents an increase (before goodwill amortization) of 24.9 %. The technology provider was able to considerably increase the earnings per share to 0.56 euros (previous year 0.20 euros; previous year before goodwill amortization: 0.45 euros). Solid financial situation for further development of the group The improvement in earnings meant that the cash flow for the period improved by 19 % to 9.9 million euros (previous year: 8.3 million euros). Nemetschek therefore not only demonstrates continued profitability but also enjoys a solid financial situation, which enables the group to actively pursue its measures for further strategic development. The liquid assets were 26.5 million euros on September 30 (December 31, 2004: 39.0 million euros before dividend payment), while the equity capital was 45.9 million euros (December 31, 2004: 60.0 million euros). This is equivalent to an equity ratio of 57.1 %. Implementing construction processes more efficiently and exploiting market potential Cost accounting is playing an increasingly important role in the building process. The aim is to minimize the eight percent construction cost deviation estimated by experts. “The most important factors in achieving potential savings include the use of state-of-the-art software and new technologies in building planning, in particular Building Information Modeling (BIM),” explains Weiß. In BIM technology, a room drawn on the computer does not just consist of four lines; an intelligent software solution enables a variety of information to be stored, such as the material and size of the walls and floor slabs, for example. As a result, in the planning stage, it is possible to calculate the costs for a building fairly accurately. The changes to the planning and construction process that are often made also involve less risk. As a pioneer of BIM, Nemetschek provides an environment in which all the relevant information can be entered and transferred accurately – without loss of data, transfer errors, or interface difficulties. “In this respect, Nemetschek’s integrated solutions, which are matched to each other, offer added effectiveness, a reduction in risk, and an increase in quality. Processes ranging from design and construction through to the management of buildings and real estate can be implemented more effectively, and large deviations in construction costs become a thing of the past. This adds real value for the building industry, which offers significant market potential for Nemetschek,” says Weiß. Outlook: Continued positive trend for results Weiß is optimistic: “We are expecting a traditionally strong fourth quarter.” Nemetschek’s planning sees 2005 close with two-digit growth for the operating profit and a slight increase in sales. The complete nine-month report will be published on November 11, 2005. The Nemetschek group is one of the world’s leading technology companies for the design, construction and management of buildings and real estate. Its standard software solutions, available in 16 languages, are used by more than 160,000 companies in 142 countries. Nemetschek’s IT solutions create synergies and optimize the overall building creation and management process in terms of quality, cost and time. For additional information, contact: Nemetschek AG, Dr. Bettina Hierath, Tel. 089 – 9 27 93 1360, Fax 089 – 9 27 93 5308, bhierath@nemetschek.de End of message (c)DGAP