RIB Software AG (RSTA) expecting 100% growth of after-tax profits for the full fiscal year
RIB Software AG has raised its after-tax earnings forecast for the fiscal year 2014 in view of business results and the successful conclusion of probably the most prestigious and important 5D BIM software license agreement in the global AEC and infrastructure sector with Germany's Deutsche Bahn.
* 100% increase to at least EUR 18 million year-on-year.
Stuttgart, Germany, 31 October 2014. We are nearing the close of a highly successful and exciting year for 5D BIM technology providers. The RIB Group's iTWO 5D BIM big data technology is consolidating the firm's position as the global market leader for end-to-end 5D BIM technology. RIB unveiled its iTWO LAB technology in 2014, introducing the first iTWO-based 5D BIM financial product called 'iTWO PCI' (Project Cost Insurance), developed jointly with world-leading reinsurer Munich Re. Since October the company has been collaborating on the planning of the first-ever virtual skyscraper (project name iTWO Tower) at the iTWO 5D LAB of Georgia Tech university, which is set to be a breakthrough for the 5D construction process and for iTWO 5D BIM big data technology in the United States.
The capital markets have recognised the huge growth and turnover potential in the digitalisation of the global construction industry. According to Yahoo Finance, on 29 October, Autodesk (ADSK/USA) was valued at a price-earnings ratio (PE) of over 74.7, with Dassault (DASTY) trading at a PE of over 42.6. The software players in the AEC market are on the radar of large investors.
Analysts believe there is a good chance of the AEC, EPC and infrastructure market growing from USD 8 trillion to 15 trillion USD by 2025, and IT spending rising from a current 1% up to 3%. A new 500-billion-dollar market could be created, a mere 1% of which amounts to 5 billion USD in annual turnover. This would allow market-leading providers like RIB, Autodesk and Dassault to increase their "large deals" by 80% annually over several years.
RIB Software AG has landed the largest order in the company's 50-year history, signing a deal with Deutsche Bahn (DB) for iTWO 5D software - a milestone eagerly anticipated by both employees and shareholders alike. As a world-leading infrastructure provider in the field of mobility and logistics, Deutsche Bahn is one of Europe's largest purchasers of construction services. Deutsche Bahn commissions roughly 10,000 small, medium and large infrastructure and construction projects annually, representing a gross investment volume (CAPEX/capital expenses) of more than 8 billion EUR. We therefore expect numerous follow-up orders from DB's top 1,000 suppliers and from global infrastructure and utility firms.
The RIB Group's high expectations for the Chinese "Year of the Horse" are on track to be met, with all targets for the fiscal year 2014 appearing within reach as of early October:
- at least 100% growth (>USD 10 million) for one iTWO company license (previous year: >USD 5 million)
- at least 80% growth in iTWO 'large deals' from 8 in 2013 to 14 in 2014
- at least 50% growth in iTWO license and Cloud revenue
- at least 100% growth in earnings after taxes
Thomas Wolf, CEO of RIB Software AG: "In view of our strong performance and good results this fiscal year we now estimate earnings after taxes to total at least EUR 18 million. That represents a 100% year-on-year increase, which is well above our original expectations (+25%). We owe this tremendous success to our global team in Germany (DACH Region), the United States (NA Region), China (Greater China Region), Denmark (Nordic Countries), Singapore (Southeast Asia Region), Australia (ANZ Region) and the United Arab Emirates (Middle East Region). We are also very pleased about a BHF Bank study published in September 2014 which ranked RIB Software AG first out of 1,111 listed European family-run enterprises with market capitalisation of EUR 500 million or more. Focusing on the attractiveness of company shares for investors, the study confirms the impressive growth of the RIB Group over the last few years. We shall not rest until the market has completely converted over to 5D technology."
About RIB Group
RIB Software AG is an innovator in construction business. The company designs, develops, and offers iTWO technology for the construction industry worldwide. iTWO is the world's first Cloud-based Big Data BIM 5D enterprise solution for construction industry. Since its inception in 1961, RIB Software AG has been the pioneer in construction innovation, exploring and bringing in new technology, new thinking and new working method to enhance construction productivity, and transforming the construction industry into the most advanced and digitalized industry in the 21st century. RIB is headquartered in Stuttgart, Germany, and listed in Prime Standard Frankfurt Stock Exchange since 2011. With about 700 talents located in over 36 offices worldwide, RIB is serving 100,000 clients including construction contractors, developers, owners, investors and governments, in the field of building construction, infrastructure, EPC sector, etc.