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RIB Software SE: The RIB Group announces its figures for the first half of 2021: Stable revenue growth (+8.6%) with strong operating margin (29.5%)

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DGAP-News: RIB Software SE / Key word(s): Half Year Report
30.07.2021 / 08:00
The issuer is solely responsible for the content of this announcement.

July 30, 2021

The RIB Group announces its figures for the first half of 2021: Stable revenue growth (+8.6%) with strong operating margin (29.5%)

 

- Group revenue grows by 8.6% to €138.7 million in the first half despite the global impact of Covid-19 (previous year adjusted for e-commerce: € 127.7 million)

- Adjusted for the Phase III deal included in the previous year (€ 7.9 million), consolidated revenues increase by 15.8%

- Recurring revenues (ARR) grow by 9.2% to € 37.9 million in Q2 (previous year: € 34.7 million)

- International sales increase by 15.5% to € 91.6 million (previous year: € 79.3 million)

- International share of revenue rises to 66.1% (previous year: 62.1%)

- Operating EBITDA margin remains high at 29.5%

Stuttgart, Germany, July 30, 2021. RIB Software SE the world's leading provider of iTWO 4.0 cloud enterprise platform technology today announces its key financial figures for the first half of 2021.

Group shows solid revenue development in first half of 2021

Despite the global economic impact of the Covid-19 pandemic, we can look back on a successful first half of the year. Group revenues, adjusted for the e-commerce revenues still included in the previous year, increased by 8.6% to € 138.7 million (previous year: € 127.7 million). Organic revenue growth, adjusted for the Phase III deal included in the previous year, was around 7.0%. Software revenues grew by 0.8% to € 102.8 million (previous year: € 102.0 million). Adjusted for the Phase III deal included in the prior-year period, software revenues grew by 9.2%. As in the first quarter of 2021, service revenues developed very positively due to the high number of projects and increased by 39.1% to € 35.9 million (previous year: € 25.8 million).

EBITDA fell by 16.7% year-on-year to € 38.9 million (previous year: € 46.7 million), resulting in an EBITDA margin of 28.0% (previous year: 36.6%). At € 40.9 million, operating EBITDA remained at the previous year's level (previous year: € 41.2 million). Adjusted for the Phase III deal in the previous year, operating EBITDA increased by 22.8%. At € 10.6 million, depreciation and amortization from purchase price allocation (PPA-amortization) was higher than in the previous year (€ 7.9 million). Adjusted operating EBITA increased by 3.8% to € 30.3 million (previous year: € 29.2 million). At 21.8%, adjusted operating EBITA margin remained essentially at the level of the previous year (previous year: 22.9%).

The average number of employees changed by 41.6% to 2,541 (previous year: 1,794 employees).

Cash flow from operating activities amounts to € 34.8 million

The net cash flow from operating activities amounts to € 34.8 million (previous year: € 38.8 million). The main reason for the decline is the increase in income taxes paid to € 7.0 million (previous year: € 3.7 million), which includes back payments from the previous year and enhanced advance payments. The net cash flow from investing activities was € -7.9 million lower than in the previous year (€ -19.2 million). This is essentially due to the higher payments for the acquisition of consolidated companies in the same period of the previous year. The net cash flow from financing activities of € -56.7 million was significantly below the previous year (€ -2.4 million) due to the dividend of € -51.0 million distributed in the reporting period. In the previous year, the dividend payment was not made until the second half of 2020 due to the postponement of the Annual General Meeting as a result of the Covid-19 pandemic.

As of June 30, 2021 the Group had cash and cash equivalents, including available-for-sale securities and time deposits, of € 196.3 million (December 31, 2020: € 224.0 million). Equity amounted to € 472.0 million (December 31, 2020: € 506.5 million). The equity ratio thus decreased slightly to 69.2% (December 31, 2020: 71.7%).

Growth course in the iMTWO segment continued (8.6%)

Total revenue in the iMTWO segment rose by 8.6% to € 138.4 million (previous year: € 127.4 million). Organic revenue growth adjusted for the Phase III deal of the previous year amounts to 6.9%. Software revenues grew by 0.8% to € 102.5 million (previous year: €101.7 million). Adjusted for the Phase III deal included in the previous year's period, software revenues increased by 9.3%. The segment EBITDA fell by 16.7% to € 38.8 million (previous year: € 46.6 million), reducing the EBITDA margin to 28.0% (previous year: 36.6%). The operating EBITDA in the segment remained slightly below the previous year's level at € 40.7 million (previous year: € 41.1 million), which corresponds to an operating EBITDA margin of 29.4% (previous year: 32.3%).

Revenue development in the regions

Internationally, revenues grew by 15.5% to € 91.6 million (previous year: € 79.3 million). In contrast, domestic revenues fell by 2.7% to € 47.1 million (previous year: € 48.4 million) due to the Phase III deal included in the previous year. Adjusted for this, domestic revenues rose by 16.3%. The international share of total revenues thus amounted to 66.1% (previous year: 62.1%).

In the EMEA region (Europe, Middle East and Africa, excl. Germany), revenues increased by 29.5% to € 34.0 million (previous year: € 26.2 million), in North America by 5.9% to € 35.7 million (previous year: € 33.7 million) and in the APAC region (Asia Pacific) by 13.4% to € 21.9 million (previous year: € 19.3 million).

Schneider Electric plans squeeze-out under stock corporation law

On July 5, 2021, Schneider Electric Investment AG, Düsseldorf, submitted to RIB Software SE the formal request pursuant to Section 327a (1) sentence 1 AktG that the General Meeting of RIB Software SE should resolve to transfer the shares of the remaining shareholders (minority shareholders) to Schneider Electric Investment AG in return for an appropriate cash compensation (so-called squeeze-out under stock corporation law).

Schneider Electric Investment AG holds approximately 96.41% of the registered share capital of RIB Software SE and is therefore its main shareholder within the meaning of section 327a para. 1 sentence 1 AktG. The resolution on the transfer shall be passed at an extraordinary General Meeting of RIB Software SE which is supposed to take place in the fourth quarter of 2021. The amount of the appropriate cash compensation that Schneider Electric Investment AG, as the main shareholder, will pay to the minority shareholders of RIB Software SE for the transfer of the shares has not yet been determined.

Further business development

Due to the uncertainties caused by Covid-19 and in the context of further cost reductions and preservation of liquidity, we have continued to strongly reduce investments in new business areas, such as YTWO, and are focusing on the successful expansion of the iMTWO segment.

On this basis and considering the further likely impact of the Covid-19 pandemic, provided it does not intensify during the year, we maintain the RIB Group's guidance for the 2021 financial year, according to which the company plans to generate revenue of between € 280 million and € 310 million and operating EBITDA of between € 65 million and € 75 million.

CONSOLIDATED FIGURES OVERVIEW

€ million unless otherwise indicatedYTD 6/2021YTD 6/2020*Change
Revenue138.7127.78.6 %
ARR77.875.13.6 %
NRR25.026.9-7.1 %
Services35.925.839.1 %
EBITDA38.946.7-16.7 %
as % of revenue28.0%36.6% 
Operating EBITDA**40.941.2-0.7 %
as % of revenue29.5 %32.3 % 
Adjusted operating EBITA30.329.23.8 %
as % of revenue21.8 %22.9 % 
Equity ratio***69.2 %71.7 % 
Cash flow from operating activities34.838.8-10.3 %
Expenses from purchase price allocation (PPA amortization)10.67.934.2 %
Average number of employees2.5411.79441.6 %
Group liquidity****196.3224.0-12.4 %
 

* The figures for 2020 only include amounts from continuing operations.

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

*** Previous year as of December 31, 2020.

**** Cash and cash equivalents, time deposits and available-for-sale securities. Previous year as of December 31, 2020.


About RIB Group

RIB Software SE is a pioneer in the digitalization of the 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 6D BIM with AI integration for construction companies, industrial companies, developers and project owners, etc. RIB Software SE is a member of Schneider Electric and headquartered in Stuttgart, Germany and Hong Kong, China. With over 2,700 talents in more than 25 countries worldwide, RIB is targeting to transform the construction industry into the most sustainable and digitalized industry in the 21st century.



30.07.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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