DGAP-News: RIB Software SE / Key word(s): Half Year Report 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%) 2021-07-30 / 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 EUR138.7 million in the first half despite the global impact of Covid-19 (previous year adjusted for e-commerce: EUR 127.7 million) - Adjusted for the Phase III deal included in the previous year (EUR 7.9 million), consolidated revenues increase by 15.8% - Recurring revenues (ARR) grow by 9.2% to EUR 37.9 million in Q2 (previous year: EUR 34.7 million) - International sales increase by 15.5% to EUR 91.6 million (previous year: EUR 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 EUR 138.7 million (previous year: EUR 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 EUR 102.8 million (previous year: EUR 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 EUR 35.9 million (previous year: EUR 25.8 million). EBITDA fell by 16.7% year-on-year to EUR 38.9 million (previous year: EUR 46.7 million), resulting in an EBITDA margin of 28.0% (previous year: 36.6%). At EUR 40.9 million, operating EBITDA remained at the previous year's level (previous year: EUR 41.2 million). Adjusted for the Phase III deal in the previous year, operating EBITDA increased by 22.8%. At EUR 10.6 million, depreciation and amortization from purchase price allocation (PPA-amortization) was higher than in the previous year (EUR 7.9 million). Adjusted operating EBITA increased by 3.8% to EUR 30.3 million (previous year: EUR 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 EUR 34.8 million The net cash flow from operating activities amounts to EUR 34.8 million (previous year: EUR 38.8 million). The main reason for the decline is the increase in income taxes paid to EUR 7.0 million (previous year: EUR 3.7 million), which includes back payments from the previous year and enhanced advance payments. The net cash flow from investing activities was EUR -7.9 million lower than in the previous year (EUR -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 EUR -56.7 million was significantly below the previous year (EUR -2.4 million) due to the dividend of EUR -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 EUR 196.3 million (December 31, 2020: EUR 224.0 million). Equity amounted to EUR 472.0 million (December 31, 2020: EUR 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 EUR 138.4 million (previous year: EUR 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 EUR 102.5 million (previous year: EUR101.7 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 EUR 38.8 million (previous year: EUR 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 EUR 40.7 million (previous year: EUR 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 EUR 91.6 million (previous year: EUR 79.3 million). In contrast, domestic revenues fell by 2.7% to EUR 47.1 million (previous year: EUR 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 EUR 34.0 million (previous year: EUR 26.2 million), in North America by 5.9% to EUR 35.7 million (previous year: EUR 33.7 million) and in the APAC region (Asia Pacific) by 13.4% to EUR 21.9 million (previous year: EUR 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 EUR 280 million and EUR 310 million and operating EBITDA of between EUR 65 million and EUR 75 million. CONSOLIDATED FIGURES OVERVIEW EUR million unless otherwise indicated YTD 6/2021 YTD 6/2020* Change Revenue 138.7 127.7 8.6 % ARR 77.8 75.1 3.6 % NRR 25.0 26.9 -7.1 % Services 35.9 25.8 39.1 % EBITDA 38.9 46.7 -16.7 % as % of revenue 28.0% 36.6% Operating EBITDA** 40.9 41.2 -0.7 % as % of revenue 29.5 % 32.3 % Adjusted operating EBITA 30.3 29.2 3.8 % as % of revenue 21.8 % 22.9 % Equity ratio*** 69.2 % 71.7 % Cash flow from operating activities 34.8 38.8 -10.3 % Expenses from purchase price allocation (PPA amortization) 10.6 7.9 34.2 % Average number of employees 2.541 1.794 41.6 % Group liquidity**** 196.3 224.0 -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
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