Financial Statements of Nemetschek SE for 2020
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Building Lifecycle Intelligence FINANCIAL STATEMENTS (GERMAN COMMERCIAL CODE) NEMETSCHEK SE 2020 Financial Statements Nemetschek SE 2 4 Management Report 56 Balance Sheet Nemetschek SE 58 Profit and Loss Account Nemetschek SE 60 Notes to the Financial Statement ofNemetschek SE 61 Accounting policies 61 Notes to the Balance Sheet 65 Notes to the Profit and Loss Account 66 Other disclosures 68 Supervisory board 69 Executive board 70 Statementoffixedassets Nemetschek SE 72 Declaration of the members of the body authorized to represent the company 72 Inde pendent auditor’s report 78 Publication Details 3 Group Management Report 4 6 About This Report 6 Group Principles 6 Group Business Model 10 Targets and Strategy 12 Corporate Management and Governance 13 Research and Development 14 Non-Financial Declaration 14 Principles 14 Corporate Social Responsibility (CSR) at the N emetschek Group 15 Key Non-Financial Issues 16 ain Risks M Group Management Report Group 16 Key CSR Issues 22 Economic Report 22 Macroeconomic and Industry-Specific Conditions 25 Business Performance in 2020 and Key Events Influencing the Company’s Business Performance 26 Results of Operations, Financial Position and Net Assets of the Nemetschek Group 36 Results of Operations, Financial Position and Net Assets of Nemetschek SE 38 Comparison of Actual and Forecast Business Performance of the Nemetschek Group 39 Opportunity and Risk Report 46 Outlook 2021 50 O ther Disclosures, Remuneration Report 50 Corporate Governance Declaration 50 Explanatory Report of the Executive Board on Disclosures Pursuant to Sections 289a and 315a of the HGB 52 Remuneration Report 5 Combined Management Report for the 2020 Financial Year About This Report The management report of Nemetschek SE and the Group The legal corporate structure is presented in the notes of the con- managementreportforthe2020financialyearhavebeenconso- solidatedfinancialstatementsonpage124. lidated. The corporate governance declaration in accordance with § 161 AktG is published on the website ir.nemetschek.com/ Business activities en/corporate-governance. The corporate governance declaration The four segments of the Nemetschek Group offer a diverse port- can also be found in the chapter << To our Shareholders >>. The folio comprising graphical, analytical and commercial solutions consolidatedfinancialstatementspreparedbyNemetschekasof thatenableacontinuousworkflowinthelifecycleofconstruction December 31, 2020 are in compliance with the International and infrastructure projects. Customers include architectural and Financial Reporting Standards (IFRS), applicable as of the repor- design offices of all sizes, structural planners, engineers of all ting date, as well as with the requirements of the German Com- disciplines, planning and service providers, construction compa- mercial Code in connection with German Accounting Standards. nies and their suppliers, process controllers, as well as property, building and facility managers. 1 Group Principles Within the planning, construction and administrative process of buildings, the central working method is Building Information 1.1 Group Business Model Modeling (BIM), a term synonymous with the digitalization of the construction industry. BIM is used to digitally record and connect Organization all design, quality, timing and business requirements and data. The Nemetschek Group, founded in 1963 by Prof. Georg This information is used to create a virtual, three-dimensional, Nemetschek and comprising Nemetschek SE and its operating semantic building model. Time and cost are added to the simula- subsidiaries, offers software solutions to enable continuous work- tion as fourth and fifth dimensions. BIM enables efficient and flowacrosstheentireconstructionlifecycle. transparentcollaborationandanimprovedworkflowforallthose involved throughout the entire process of planning, building and Nemetschek SE, headquartered in Munich, is a strategic holding managingapropertyorinfrastructureproject.BIMisfirstused company with 15 brands operating in four segments. The term virtually in order to identify and correct planning errors even befo- “brands” is understood to mean subsidiaries of Nemetschek SE. re the actual construction process. The extensive data collected Nemetschek SE is responsible for the central functions of corpo- via BIM forms a very good basis for Digital Twins. A digital twin is ratefinance&tax,controlling,investorrelations&corporatecom- an image of a building that is created during the planning phase munication, corporate development and operations, mergers and and continuously enriched with updated information about the acquisitions,HumanResources,IT&businesssolutions,corpo- entire building lifecycle, e.g. on the building construction, the buil- rateauditandcorporatelegal&compliance. ding physics and energetic behavior and the building use. This The reporting structure comprises the four following segments: allows forecasts to be made of changes to the building itself or its Design,Build,ManageandMedia&Entertainment.Inorderto use. strengthen the focus on the segments in the long term, since the Ideally, the digital-physical connection should be bidirectional, beginning of 2019 each of the four segments has been assigned meaning that the digital twin can cause changes in the physical an Executive Board member or Segment Manager who works object, and these changes are registered in the virtual copy. As a closely with the individual brands within the segment. This result, information and implications from each phase of a build- approach reflects the strategic target of better combining the ing’s lifecycle – whether related to cost, durability, or user expe- brand companies’ expertise within the customer-oriented seg- rience – can be applied to other phases. Ultimately, these insights ments, leveraging synergies and developing segment strategies can help architects, engineers and building managers design and for the respective customer groups or overarching approaches. operate higher performing buildings. This accumulation of data, The brands are active on the market as independent companies alsoinconjunctionwithartificialintelligence(AI),iscalledBuilding within their segment, while they also move within a strategic cor- Lifecycle Intelligence (BLI). ridor agreed on by the holding company and the Segment Mana- The Nemetschek Group has been following this integrated BIM ger. The holding company and the Segment Managers facilitate approach for more than 30 years. The company’s open standard exchange between the brands and initiate strategic projects (Open BIM) enables software solutions from the Nemetschek involving several brands, some of which are cross-segmental, Group to communicate with other software solutions – including thereby creating synergies in the portfolio. Regular reporting and those from competitors – via open data and communication inter- ongoingdialogensuresahighlevelofmanagementefficiency. 6 GROUP PRINCIPLES faces. This allows the seamless transfer and documentation of all neering, Construction and Operation). In addition, a structure can information, data, and digital models relevant to construction beefficientlyrebuiltevenyearslaterbecauseitsdetailsarepreci- throughout the building’s entire creation and operational cycle. selydocumented.Theresultisanincreaseinqualityandefficien- cy in construction, management and renovation processes, At the same time, Open BIM means that the Nemetschek Group whichinsomecasesissignificant. is able to contribute to further establishing this digital method of working as an industry standard. With its Open BIM software Segments solutions, Nemetschek enhances the quality of the construction The operational implementation of the Nemetschek Group’s busi- processandimprovestheworkflowandcooperationofallthose ness model is carried out via the four segments: Design, Build, involved,makingprojectworkmoreefficientwhilealsoensuring ManageandMedia&Entertainment.Theoperationalbusinessis greater cost and schedule reliability. controlled via these segments, in which the 15 brands of the Sustainability is also taken into account through precise planning Nemetschek Group are integrated. At the end of 2020, the brands andtheefficientuseofresources.TheNemetschekGroup’ssolu- Precast and Allplan from the Design segment joined forces under tions thus lay the foundation for integrated planning, implementa- the umbrella of Allplan for an integrated offering in the field of tion and management in the AEC/O industry (Architecture, Engi- engineering and construction. ARCHITECTURE | ENGINEERING | CONSTRUCTION | OPERATIONS (AEC/O) DESIGN BUILD MANAGE MEDIA & ENTERTAINMENT Design segment Build segment With the Design segment’s solutions, customers are able to carry In the Build segment, the Nemetschek Group offers integrated out their tasks across all phases, from planning and design right complete 5D BIM solutions from the bidding and award phase to up to factory and construction planning. The portfolio particularly invoicing, budgeting, scheduling and cost calculation. This also features Open BIM solutions for computer-aided design (CAD) includes commercial ERP solutions for construction-related and computer-aided engineering (CAE), which are used in 2D and accounting and PDF-based workflow solutions for digital