RIB Software SE: The RIB Group announces its figures for the 2019 financial year: Group revenues increase significantly by 57% to EUR 214.6 million and operating EBITDA by 32% to EUR 51.2 million

DGAP-News: RIB Software AG SE / Key word(s): Annual Results
30.03.2020 / 09:00
The issuer is solely responsible for the content of this announcement.

March 30, 2020

The RIB Group announces its figures for the 2019 financial year: Group revenues increase significantly by 57% to EUR 214.6 million and operating EBITDA by 32% to EUR 51.2 million

Managing Directors and Administrative Board publish joint Reasoned Statement on Schneider Electric's takeover offer

RIB establishes the RIB CARE Initiative, actively contributing to the world's combat against the Corona pandemic

- Annually recurring revenues (ARR) increase by 94.5% to EUR 112.6 million

- Organic growth in the software business (ARR and NRR) reaches 12%

- Operating EBITDA up 32.0% to EUR 51.2 million

- Cash flow from operating activities rises by 13.7% to EUR 34.8 million

- MTWO/iTWO 4.0 users increase to 69,337 (planned: 30,000 users)

- Managing Directors and administrative board recommend acceptance of Schneider Electric's takeover offer

- The offer is in the best interest of RIB, RIB's shareholders and its stakeholders

Stuttgart, Germany, March 30, 2020. RIB Software AG SE, the world's leading provider of iTWO 4.0 cloud enterprise platform technology, today announced its key financial figures for the fiscal year 2019.

Very strong revenue growth in fiscal year 2019

Consolidated revenues increased by 56.8% to EUR 214.6 million in fiscal year 2019 (previous year: EUR 136.9 million). In the past fiscal year, annually recurring revenues (ARR) sharply increased by 94.5% to EUR 112.6 million (previous year: EUR 57.9 million). Non-recurring revenues also increased by 21.4% to EUR 45.4 million (previous year: EUR 37.4 million). Software AG and software-related revenues (ARR and NRR) thus increased by 65.8% to EUR 158.0 million (previous year: EUR 95.3 million). The organic growth of these revenues was 12%. Service revenues grew by 46.7% to EUR 47.7 million (previous year: EUR 32.3 million).

In the high-margin reporting segment iMTWO, sales increased significantly by 60.8% to EUR 205.2 million (previous year: EUR 127.6 million).

Strong margins despite extensive investments

In the 2019 fiscal year and despite its strong investments in the planned expansion of the sales network and cloud platform MTWO, the RIB Group was able to achieve an operating EBITDA margin of 23.9% (adjusted for currency effects and one-off/special effects). The EBITDA margin was at the upper end of the planned EBITDA margin of 20-25% during the investment phase and despite the switch from license to subscription, M&A expenses of 14 M&A deals with an investment volume of around EUR 110 million and due to planned start-up costs in the new business areas xYTWO, MTWO and SGTWO.

Moreover, 2019 was characterized by strong investments in personnel, technology expansions for MTWO and the acquisition of users for our MTWO/iTWO 4.0 platform as well as promising initiatives such as the MTWO "out of the box" solution, which can be used by clients within 48 hours. As a result, we were able to significantly increase the MTWO/iTWO 4.0 user base from 3,000 to 69,337, far exceeding our target of 30,000 users in 2019.

Guidance for 2020

We announced in the press release of 13 February 2020, that the RIB Group planned to achieve revenues of between EUR 270 million and EUR 310 million and an operating EBITDA of between EUR 57 million and EUR 65 million for 2020.

Due to current developments in connection with the coronavirus (COVID-19) and the as yet unforeseeable economic consequences, the guidance of 13 February 2020 may no longer be relevant, and we have to suspend this guidance until further notice and may- issue new guidance for 2020 around the time of the Annual General Meeting in June, as the situation develops.

RIB CARE Initiative

With the RIB CARE Initiative, we are extremely proud to announce a very important initiative that we have established within the global RIB team. RIB CARE aims to actively support people in need. The administrative board has approved a budget of up to 500,000 Euro for this purpose. The RIB CARE team is currently developing an air bridge from Asia to Europe in order to provide medical staff and caregivers in senior homes with protective clothing, such as masks and protective suits. The delivery will be carried out with the support of our local RIB offices. The procurement of the goods is ensured by our team in Guangzhou/China. The logistics are handled by our xTWO team together with international airlines. For RIB's employees, investors, business partners and users we have established bank accounts in Europe and Asia to collect donations in support of RIB CARE. During the first week of April, thousands of masks and protective gear will be flown from China to Europe by RIB CARE. It is planned to continue the initiative until the spread of the corona virus is stopped. On behalf of all RIB employees, we would like to take this opportunity to thank the heroes of our time, the medical staff and the thousands of helpers in the fight against the deadly Corona virus, some of whom are saving thousands of lives at the risk of their own lives. We at RIB stand at the side of these heroes!

The impact of the Coronavirus leading to a global shift towards remote working or working from home could support the company's iTWO Cloud technology (which provides integration of virtual in physical). To support our customers during the crisis, we are offering customers who wish to switch from desktop to a cloud solution limited access to 100 users at a one-time discount of 50% in the first 12 months and guarantee a Go-Live in 48 hours after a virtual lab and hackathon.

In 2020 we expect RIB to have available liquid funds of more than EUR 400 million as the sum of liquid assets, free cash flow and a credit line, which gives RIB an extremely solid financial position to meet future challenges.


CONSOLIDATED FIGURES - OVERVIEW

€ million unless otherwise indicated 2019 2018 Change
Revenue 214.6 136.9 56.8 %
ARR 112.6 57.9 94.5 %
NRR 45.4 37.4 21.4 %
Services 47.4 32.3 46.7 %
E-Commerce 9.2 9.2 0.0 %
Operating EBITDA* 51.2 38.8 32.0 %
as % of revenue 23.9 % 28.3 %  
EBIT adjusted for PPA-amortization 32.4 29.7 9.1 %
as % of revenue 15.1 % 21.7 %  
Operating EBT* adjusted for PPA-amortization 33.5 35.8 -6.4 %
as % of revenue 15.6 % 26.2 %  
Consolidated net profit of the year 9.1 21.9 -58.4 %
Equity ratio 74.7 % 83.6 %  
Cash flow from operating activities 34.8 30.6 13.7 %
Expenses from purchase price allocation (PPA amortization) 12.3 5.3 132.1 %
Average number of employees 1,599 1,038 54.0 %
Group liquidity** 125.8 238.2 -47.2 %
Research and development expenses 32.5 26.0 25.0 %
R&D ratio - iMTWO segment*** 19.2 % 21.0 %  
 

* EBITDA and EBT adjusted by currency effects and one-off / special effects.

** Cash and cash equivalents, time deposits and available-for-sale securities.

*** Ratio adjusted for revenues from Value Added Resellers and Managed Service Providers.

The full 2019 annual report is available for download on the RIB Group website under Investor Relations.

Joint Reasoned Statement regarding the takeover offer by Schneider Electric

The Managing Directors and the administrative board of RIB today also published their joint Reasoned Statement on the voluntary public takeover offer by Schneider Electric. In the Reasoned Statement, the Managing Directors and the administrative board recommend that RIB shareholders accept the offer. They consider the offer price of EUR 29.00 per RIB share to be adequate and believe that a strategic participation of Schneider Electric in RIB is in the best interests of RIB, RIB shareholders and other stakeholders.

The Reasoned Statement and a non-binding English translation thereof are published on the RIB website at https://www.rib-software.com/en/group/investor-relations/takeover-offer

The Managing Directors and the administrative board of RIB recommend that shareholders wishing to accept Schneider Electric's offer do so in good time, as the current corona crisis may cause delays in the banking-related processing of acceptance declarations.

About RIB Group

RIB Software AG SE is an innovator in the building and construction industry. The company develops and offers cutting-edge digital technologies for construction enterprises and projects across various industries worldwide. iTWO 4.0, RIB's flagship cloud-based platform, provides the world's first enterprise cloud technology based on 5D BIM with AI integration for construction companies, industrial companies, developers and project owners, etc. With over 50 years of experiences in the construction industry, RIB Software AG SE focuses on IT and engineering and becomes the pioneer in construction innovation, exploring and bringing in new thinking, new working methods and new technologies to enhance construction productivity. RIB is headquartered in Stuttgart, Germany and Hong Kong, China, and listed on the prime standard Frankfurt Stock Exchange since 2011. With over 2,700 talents in more than 25 countries worldwide, RIB is targeting to transform the construction industry into the most advanced and digitalized industry in the 21st century



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