Q2 RIB SOFTWARE SE - Interim Report | January - June 2021

2021

RIB Group shows stable revenue development with strong operating margin in the first half of 2021

  • Group revenue grows by 8.6% to € 138.7 million in the first half of the year, 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), Group revenue grows by 15.8%
  • Recurring revenues (ARR) grow by 9.2% to € 37.9 million in Q2 (previous year: € 34.7 million)
  • International revenues 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%

CONSOLIDATED FIGURES - OVERVIEW

2nd quarter

2nd quarter

6 months

6 months

€ million unless otherwise indicated

2021

2020*

change

2021

2020*

change

Revenue

69.9

64.9

7.7%

138.7

127.7

8.6%

ARR

37.9

34.7

9.2%

77.8

75.1

3.6%

NRR

14.3

18.1

-21.0%

25.0

26.9

-7.1%

Services

17.8

12.1

47.1%

35.9

25.8

39.1%

EBITDA

16.3

31.0

-47.4%

38.9

46.7

-16.7%

as % of revenue

23.3%

47.8%

28.0%

36.6%

Operating EBITDA**

20.1

25.4

-20.9%

40.9

41.2

-0.7%

as % of revenue

28.8%

39.1%

29.5%

32.3%

Amortization from purchase price allocations

(PPA)

5.3

3.9

35.9%

10.6

7.9

34.2%

Cash flows from operating activities

34.8

38.8

-10.3%

Group liquidity***

196.3

224.0

-12.4%

Equity ratio****

69.2%

71.7%

Average number of employees

2,541

1,794

41.6%

* Previous year's figures were adjusted for the amounts of the discontinued business unit xTWO (e-commerce).

  • EBITDA adjusted for currency effects and one-off/special effects.
  • Cash and cash equivalents, time deposits and available-for-sale securities. Previous year as of December 31, 2020.
  • Previous year as of December 31, 2020.

RIB Software SE

Vaihinger Straße 151

70567 Stuttgart

Interim Group Management Report | REPORT ON EARNINGS, FINANCIAL POSITION AND NET WORTH

INTERIM GROUP MANAGEMENT REPORT

REPORT ON EARNINGS, FINANCIAL POSITION AND NET WORTH

  • GROUP REVENUE GROWS BY 8.6% TO € 138.7 MILLION IN THE FIRST HALF OF THE YEAR, 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), GROUP REVENUE INCREASES BY 15.8%
  • RECURRING REVENUES (ARR) ROSE BY 9.2% TO € 37.9 MILLION IN Q2 (PREVIOUS YEAR: € 34.7
    MILLION)
  • INTERNATIONAL REVENUES GROW BY 15.5% TO € 91.6 MILLION (PREVIOUS YEAR: € 79.3 MILLION)
  • INTERNATIONAL SHARE INCREASES TO 66.1% (PREVIOUS YEAR: 62.1%)

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).

  • OPERATING EBITDA MARGIN REMAINS HIGH AT 29.5%

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%).

R&D expenses increased by € 3.8 million to € 15.2 million in the first half of 2021 (previous year: € 11.4 mil- lion). General and administrative expenses rose from € 15.1 million to € 21.5 million, while sales and marketing expenses rose to € 30.7 million (previous year: € 25.7 million). The cost increases in general and administrative expenses are mainly due to one-time special effects related to the stock options in the amount of € 5.4 million. The rise in R&D expenses as well as in sales and marketing expenses mainly results from the acquisition of new companies, which were acquired in the second half of 2020. In addition, depreciation and amortization from purchase price allocations included in sales and marketing expenses enhanced as a result of the acquisitions made.

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

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RIB SOFTWARE SE | INTERIM REPORT JANUARY - JUNE 2021

REPORT ON EARNINGS, FINANCIAL POSITION AND NET WORTH | Interim Group Management Report

- 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%).

Trade payables declined to € 20.1 million (December 31, 2020: € 24.6 million). Trade receivables increased to

  • € 61.9 million (December 31, 2020: € 54.8 million).

  • DEVELOPMENT OF THE SEGMENTS

iMTWO

Growth course 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%).

YTWO

In the YTWO segment, total revenue of € 0.3 million (previous year: € 0.3 million) was at a very low level, as in the previous year. The segment EBITDA was also € 0.1 million, as in the previous year.

INTERIM REPORT JANUARY - JUNE 2021 | RIB SOFTWARE SE

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Interim Group Management Report | REPORT ON EARNINGS, FINANCIAL POSITION AND NET WORTH

- REVENUE DEVELOPMENT IN THE REGIONS

International 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).

REPORT ON OPPORTUNITIES AND RISKS

Regarding to the material opportunities and risks of the expected development of the RIB Group, we refer to the opportunities and risks described in the Group Management Report as of 31 December 2020 and at the Annual General Meeting and published on the RIB website.

OUTLOOK - FISCAL YEAR 2021

- 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-calledsqueeze-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.

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RIB SOFTWARE SE | INTERIM REPORT JANUARY - JUNE 2021

REPORT ON EARNINGS, FINANCIAL POSITION AND NET WORTH | Interim Group Management Report

- 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.

FURTHER INFORMATION

We invite our shareholders to visit our Investor Relations website, in particular to keep an eye on our presentations to investors and our updated definitions to understand our current strategy.

INTERIM REPORT JANUARY - JUNE 2021 | RIB SOFTWARE SE

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RIB Software SE published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 05:38:09 UTC.