ANNUAL REPORT CONTENTS OF THE ANNUAL REPORT 2010 1 NEMETSCHEK SPECIAL Opportunity and Risk Report 46 Supplementary Report 51 14 TO OUR SHAREHOLDERS Outlook Report 2011/2012 51 16 Letter to the Shareholders 18 Nemetschek on the Capital Market CONSOLIDATED FINANCIAL STATEMENTS 54 20 Corporate Governance OF NEMETSCHEK AG (IFRS) 23 Report of the Supervisory Board Consolidated statement of 57 comprehensive income 26 GROUP MANAGEMENT REPORT NEMETSCHEK AG Consolidated statement of fi nancial position 58 28 The Company Consolidated cash fl ow statement 60 28 Nemetschek in brief Consolidated statement of changes in equity 61 28 Business segments Notes to the consolidated fi nancial statement 62 31 Strategy and market position Declaration of the legal representatives 118 32 Corporate responsibility Audit opinion 119 33 Report on enterprise controlling and declaration on corporate management FINANCIAL STATEMENTS OF NEMETSCHEK AG (HGB) 122 34 Disclosures pursuant § 315 sec. 4 HGB Balance sheet 124 36 Remuneration report Profi t and loss account 126 37 Employees 38 Research and development 40 The Underlying Conditions Inside cover pages front: 41 Report on the Earnings, Financial, Key Figures of Nemetschek Group 2010 and Net Asset Situation Highlights 2010 41 Earnings situation Inside cover pages rear: 43 Financial situation Financial Calendar 2010 44 Net asset situation Publication details and Pictures 45 Principles and aims of fi nancial management Contact Highlights 2010 The group publishes the Graphisoft launches Archi- preliminary fi gures for 2009 Nemetschek reports a good CAD 14 – data exchange with – and exceeds earnings quarterly result – and is free engineers and design profes- expectations of net debt again sionals is made far easier February April June Vectorworks with a new Europe-wide launch of the new release – visualizations are software version Allplan 2011 far more effective thanks to – the new graphic core makes cooperation with Maxon the program much faster Nemetschek raises the fore- Maxon launches Cinema 4D New version of Scia Engineer Nemetschek share achieves cast for 2010 – and achieves Release 12 – and offers a available – the focus is on its highest price in 10 years an EBITDA margin of 25 per- clearer program structure implementation of the national – at the start of December, it cent in the fi rst six months and better image quality annexes to the Eurocodes peaks at over 32 euros July September October December Key Figures NEMETSCHEK GROUP 2010 in million € Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Dec. 31, 2006 Revenues 149.7 135.6 150.4 146.2 107.5 Gross profi t 145.8 130.8 143.6 139.0 101.8 as % of revenue 97 % 96 % 95 % 95 % 95 % EBITDA 37.1 30.4 31.4 33.6 20.7 as % of revenue 25 % 22 % 21 % 23 % 19 % per share in € 3.85 3.16 3.26 3.49 2.15 EBIT 27.5 20.9 21.0 23.9 17.8 as % of revenue 18 % 15 % 14 % 16 % 16 % per share in € 2.86 2.17 2.18 2.48 1.85 Net income (group shares) adjusted by PPA effects 24.5 17.9 16.2 20.4 13.9 per share in € 2.55 1.86 1.68 2.12 1.45 Net income (group shares) 18.9 12.2 10.4 14.6 13.6 per share in € 1.97 1.27 1.08 1.52 1.41 Net income 20.1 12.9 11.3 15.3 14.4 Cash fl ow for the period 34.7 28.6 29.9 30.8 21.3 Cash fl ow from operating activities 32.3 23.4 30.4 25.3 18.3 Cash fl ow from investing activities – 3.8 – 3.6 – 4.7 – 102.4 – 6.3 Cash and cash equivalents 30.6 22.9 23.2 29.1 32.0 Net debt 11.1 – 9.3 – 26.1 – 40.4 – 68.0 Equity 93.5 79.6 67.9 62.9 55.1 Equity-quote 57 % 50 % 41 % 34 % 27 % Average number of outstanding shares (undiluted) 9,625,000 9,625,000 9,625,000 9,625,000 9,625,000 Headcount as of balance sheet date 1,076 1,064 1,114 1,067 1,151 “The future of building lies in the concerted interaction of all those involved in the network.” Prof. Georg Nemetschek, 1996 The entire building process can be optimized with the help of information technology. Since the mid 1990s, company founder Professor Georg Nemetschek has been focusing on the best way to achieve this. The vision: Nemetschek wants to provide all those involved in the design, construction and management of buildings with all the relevant data at any time and place in a consistent form, and thereby optimize the entire life cycle of buildings with regard to quality, costs and deadlines. Thanks to the internet, this vision can now be realized. A NETWORK OF PARTICIPANTS: The Gotthard base tunnel in Switzerland was designed by an engineering consortium led by Gähler + Partner AG with software from Allplan. Companies involved in the project included: Strabag AG, Tunnelbau Gähler + Partner AG, Projektingenieure Rothpletz, Lienhard + Cie. AG Gruner AG CES Bauingenieur AG Dr. M. Kobel + Partner AG Implenia Bau AG Frutiger AG Bilfinger+Berger Pizzarotti S.p.A. Lombardi AG Pöyry AG Amberg Engineering AG Implenia Bau AG Alpine Bau GmbH CSC Impresa Costruzioni SA Impregilo S.p.A. Hochtief AG Atel Installationstechnik AG Alcatel Lucent AG Thales Rail Signalling Solutions AG Balfour Beatty GmbH Basler & Hofmann AG BGS Bau Guss AG Bochumer Eisenhütte Heintzmann GmbH & Co. KG CSD Ingenieure AG Sieber Cassina + Handke AG Elkuch Bator AG Ennio Ferrari Jura-Cement-Fabriken Karl-H. Mühlhäuser GmbH & Co. KG Pagani + Lanfranchi sa Alpiq Burkhalter ... and many more NEMETSCHEK SPECIAL 5 Networked planning, construction, management. The future. 6 Networked construction. How to get there. 11 Networked planning. Now. 12 Networking in a team. Now. CONSOLIDATED CONSOLIDATED FINANCIAL STATEMENTS NEMETSCHEK SPECIAL TO OUR SHAREHOLDERS MANAGEMENT REPORT FINANCIAL STATEMENTS OF NEMETSCHEK AG Networked planning, construction, management. The future. Even in times of global mass production, every building remains unique. It is the product of collaboration between numerous participants that join forces for the project and constantly have to communicate with each other. The processes relating to building are complex, because they are planned, controlled and executed by numerous disciplines at different locations. As a result, progress with regard to productivity is lower in the building sector than in other industries. Nemetschek‘s goal is to optimize interdisciplinary collaboration in the construction process and increase efficiency with the help of sophisticated information technologies. The group‘s organi- zation along the construction value chain – design, construction, management – emanates from this “To- The decisive challenge is figuring tal Quality“ approach: out how one discipline can process Efficient processes require efficient communication relevant data from another – and smooth data exchange. The key challenge here is for one discipline to be able to directly process regardless of the software used. relevant data from another discipline, regardless of whether this data comes from CAD programs, solutions for structural calculations, construction process planning, documents or ERP programs for costing – and without the need for time-con- suming re-input of data, as has often been necessary up to now. In some areas, this already works well; the seamless integration between CAD software and structural analysis programs from the Nemetschek Group is one example of this. But the real goal is far more ambitious: ultimately, a central data model for every construction project will integrate the work done by all the discip- lines involved, regardless of the software used. In this way – and that is what Nemetschek understands by the much-discussed Building Informa- tion Modeling (BIM) – not only will the planning and construction process itself become far more productive, there will also be a significant increase in efficiency in the decades-long management phase of a building. The building manager has access to the central data model, and thus the related detailed information, at all times and can therefore carry out necessary renovation or refurbishment measures far more easily and cost-effectively. The owner has access to the entire building project‘s DNA, so to speak. 5 Networked construction. How to get there. The company founder‘s vision is within reach today – thanks to the extended capabilities of the internet and the increased linking up of large sections of business. Only recently has the internet started to offer the bandwidths required to manage large volumes of data at the required speed, and today, flat rates are common. Information exchange, as well as the handling of entire busi- ness processes over the internet is so normal that location- and device-independent use of ser- vices via cloud computing is becoming the most important trend in the IT industry. Nemetschek is taking advantage of this development: a team of experts at group level is develop- ing a new Web platform that provides information on demand and in structured form to all those involved in a construction project. In the first version of the platform, users are able to evaluate, comment on and link to relevant files and documents, whatever their format, and regardless of time and place. The second development step for the platform is to provide the currently relevant data – and only this data – from one discipline‘s software solution to another discipline‘s program in such a way that this data can be processed there directly, commented on and imported back, and, if applic- able, with instructions for action. Previous data exchange formats such as the manufacturer- HOW CUSTOMERS BENEFIT FROM THE INTERNET » Program services can be procured flexibly » Customers pay for what they need – fixed costs become variable costs » Content that makes work easier is available in the latest version at any time » Teams can work together regardless of where the individual members are located » Interdisciplinary collaboration becomes easier