 | Munich, March 26, 2003. The Nemetschek Group has slightly exceeded its sales and profit forecast (revised in November 2002) for fiscal 2002. The Nemetschek Group is one of the leading vendors of software and consulting services for the design, construction and management of buildings and real estate. Sales for the year amounted to EUR 105.5 million (previous year: EUR 124.4 million;
-15%). Major causes for the drop in sales were an overall weak economy, a continued strong drop in building investments in Germany, as well as reluctance to invest in information technology. The Nemetschek Group did not remain unaffected by this trend. At the same time, the Board is already seeing indications that the overall situation will improve during the current fiscal year. Says Spokesman of the Board, Gerhard Weiß, at today's press briefing on annual results in Munich: "During the year that marks the 40th anniversary of the company's founding, we are facing the future with optimism. After all, we have not only optimized our Group's structure successfully, we have also set the course in our products and customer services."
Positive developments internationally
Due to the worsening income situation of architects and civil engineers in Germany the Design business unit reported a drop in sales to EUR 76.3 million during 2002, compared to EUR 93.2 million in sales during the same period in the previous year. The Build business unit reported sales of EUR 13.2 million, after the previous year's total of EUR 15.0 million. The Manage business unit posted sales of EUR 10.3 million, a total that was slightly higher than in the previous year (EUR 9.6 million). International sales totaled EUR 43.8 million and were slightly higher than in the previous year: EUR 42.0 million). Group subsidiary NEMETSCHEK NORTH AMERICA contributed to this positive development, among others. Consequently, the share of total sales contributed by international sales increased to 41.5%, up from 34% in the previous year.
Restructuring measures implemented consistently
During the past fiscal year, Nemetschek initiated an extensive restructuring program to increase efficiency and reduce costs. The annual figures already reflect the positive effects of these measures. The Nemetschek Group's operating profit amounts to EUR -7.9 million (previous year: EUR -35.5 million). This figure includes special expenditures for restructuring in the amount of EUR 8.1 million, consisting of special expenditures in the area of personnel reduction (EUR 3.9 million), accruals related to restructuring (EUR 2.2 million), as well as additional expenditures in the amount of EUR 2.0 million due to Apsis AG's insolvency. The operating profit before special expenditures is positive and amounts to EUR 0.2 million (previous year: EUR -2.8 million).
Significant drop in operating expenses
Thanks to consistently implemented cost reduction measures, especially during the last two quarters, Nemetschek was able to lower operating expenses significantly. Operating expenses before special expenditures for restructuring in 2002 (EUR 8.1 million) or special goodwill amortization and special expenditures in 2001 (EUR 32.7 million) decreased by EUR 21.3 million or 16.5 % compared to the previous year. In addition to taxes and minority interests, expenditures from associated companies cost the Group EUR 1.6 million against its earnings (previous year: EUR 8.6 million). The Group's net earnings amounted to EUR -11.7 million (previous year: EUR - 46.5 million); the loss for the year before special expenditures and expenses from associated companies amounts to EUR -2.0 million (previous year: EUR -8.4 million).
Liquid assets increased by EUR 4.1 million
As of December 12, 2002, the Nemetschek Group was able to increase its liquid assets by EUR 4.1 million, from EUR 17.0 million to EUR 21.1 million. The cash-flow from operating activity increased to EUR 11.7 million (previous year: EUR 4.3 million) - influenced by a substantial decrease in trade receivables of EUR 5.2 million. Cash-flow by DVFA-SG amounted to EUR 2.7 million (previous year: EUR 5.0 million). Equity capital totaled EUR 52.2 million as of December 31, 2002 (previous year: EUR 65.5 million); the equity capital ratio is 61% (previous year: 68 %).
Optimized company structures
During the past fiscal year, Nemetschek's strategy focused on bundling competencies in the Design, Build and Manage business units and on optimizing company structures.
The Group has streamlined its facilities and has taken advantage of development and marketing synergies. With the successful merger of IBD GmbH and Henke & Partner into Nemetschek Bausoftware GmbH, we have created a new pioneering company that provides integrated, complete solutions for building contractors and construction management. Nemetschek also bundled its competencies in the Manage business unit by merging Nemetschek AG's Facility Management business unit with Speedware Velbert/Ratingen. The merger has created Nemetschek CREM Solutions, a leading vendor of innovative software solutions and services for all areas of building usage: from business and technical aspects to infrastructure-based facility and real estate management. With this type of integration, Nemetschek once again offers the market an improved product line of complete solutions for the design, construction and management of buildings and real estate. Thus, over the past fiscal year, Nemetschek has created an ideal set of company structures for achieving sustained profitability in the medium term.
Number of employees
In the course of the restructuring programme the number of employees in the Nemetschek Group decreased to 760 full-time employees as of December 31, 2002 (previous year: 1,017), of which 429 are located in Germany. The Group cut almost 270 jobs, including jobs lost due to Apsis Software AG's insolvency, and significantly streamlined the company's organizational structure.
Nemetschek's 40th anniversary
Founded 40 years ago, Nemetschek today offers integrated solutions for all phases in the life cycle of a building: From architectural design and presentation, CAD planning and structural analysis, costing, tendering, and contract awards, to project handling and control, all the way to IT solutions for facility and real estate management. Says Weiß: "Renowned customers, such as the Halfen Group, Switzerland-based Marti AG, Züricher Versicherung and Allianz Arena München Stadion GmbH are evidence of the high quality of our products. We will use new developments - such as, for example, towards mobile data processing - to continue to complete our solution offering and to live up to our reputation as a leading innovator."
Outlook: stronger market position and return to profitability
Due to the continued downturn in the construction industry, general reluctance among investors and the increasingly difficult situation for architects, construction engineers and building contractors, the Board expects domestic sales to remain flat during 2003. By contrast, given a more favorable international situation, stable sales trends are expected in foreign markets. Says Spokesman of the Board, Gerhard Weiß: "During fiscal 2003, we expect lower overall sales in the Nemetschek Group. However, we are confident that we will return to profitability in 2003, since we not only reduced costs significantly, but we were also able to optimize our Group structure at the same time."
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Nemetschek AG
Dr. Bettina Hierath
Konrad-Zuse-Platz 1
81829 München
Phone: +49 (0)89 - 9 27 93-1360
Fax: +49 (0)89 - 9 27 93-5308
bhierath@nemetschek.de |
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