Hello, ladies and gentlemen. Welcome to the conference call of Schneider Electric and RID Software SE. As a reminder, all participants will be in a listen only mode. After the presentation, there will be an opportunity to ask may I now hand you over to Ahmed Vala, Head of Investor Relations NIDA Electric SE who will lead you through this conference. Please go ahead.
Well, thank you, operator. Hello, and welcome, everybody. Thanks for making this conference call, to share the details around the offer that Schneider Electric intends to, to launch for database software, which has been announced this morning. The press release and the presentations are available on the website and through the wire as well. This is a joint call.
So we have the management of both companies represented from Schneider Electric. We have Jonka Sculptri Quad, Chairman and CEO, Emmanuel Babreaux, the Deputy CEO and CFO, and Philippe Delong, Executive Vice President, Head of the Energy Management Business for database software, course. We have Tom Woolf, her CEO, together with his colleagues, Michael, and Matt, the CFO, and COO. The presentation will be followed by a Q And A session. And we will let's kick it off now and we come back then for questions.
So let me hand over to Jean Pascal to take us through, the transaction.
Thank you, Annette. I to all of you. While I'm in Asia at the moment for business reasons, and unfortunately, I cannot be struttgart. Today on Schneider's side, I get most of the mine to Philippe De Alarm within charge of energy management. Tom has been project manager of the offer on RIB on Emmanuel, Emmanuel Babaugh, that will be with whom I will be sharing a lot of of this presentation.
As an introduction, because I think this move is really important on the strategic, I would like to emphasize a few points. The first point is that the offer we launch on IB today is very logical. Boschneider on IB are working to make the building, the construction industry, smart and digital, and therefore, to make it efficient and sustainable. If you remember, in the industrial environment, we've been building an integrated software suite with AVEVA, bringing together our portfolio of operations so we are together with a design on build software suite of Aziva to create the new Aziva, no need to say that that bridge between the build on the operation world has proven very unique and very convincing and very successful for our customers. In The building on data center environment, we at Schneider has been developing organically a portfolio of operation focus, soft software on digital services, cloud based mostly.
We call them the advisors, if you remember, Power Advisor, Building Advisor, Resource Advisor, which we have been growing steadily. What we contemplate doing with IB is to do in buildings, what we have done in industry with AVEVA Bridge digitally the world of construction with the world of operations. And one thing probably to be noted is that building is much less digitized than industry. So the potential of that market is very important Second point I'd like to make is that we confirm with this move, our development in software But it's important to integrate that we do it in a very calculated and surgical manner. We do not intend cover the complete value chain of digitization.
We are not, I'm not obsessed by the size of our software business we are just obsessed by the value we bring to our customers and by the value we can bring to the software companies that join us. That means we have at Schneider to be able to bring new things to the companies that join us. And of course, we're obsessed by the value we can bring our shareholders and their shareholders. So we want to be extremely precise in the blocks we had the portfolio. Particularly, we do not go into building design where the market is well catered with big names we want to partner and we already partner with those names.
We point exclusively to the places where Schneider has a strong customer access on where the software solution has a strong link to our operation software. From that point of view, IV brings 2 important addings to our portfolio. A functionality we didn't have on that all of our customers building professional routes contractors will digitize in the future. A software platform for planning, cost on real time construction monitoring. On second, of course, focus on the building space, which is important, which Aleva does, but which is not at the core of what Aleva does.
Third point I'd like to emphasize is that I'm very excited because we can bring a lot to each other, and especially on neider side, we wish to bring to Ivy's credibility of the name of a large company on the international sales network, which IB has been building with a lot of effort and dedication over the past 2 years, but certainly this has needed a lot of resources We believe that our alliance will allow RB to focus its development on growth on adoption of I2M2 particularly. It's cloud platform. 4th point I'd like to emphasize is that this operation is led by Schneider, on Net AVEVA because of the priority to build fast synergies with a building on energy management part of Schneider, which is residing into Schneider. Because of the common focus on BIM that we have at Schneider on that IB and the wheel of the IB management to stay specialized and associated to the future of the new OIB within one identified company. But you also realize that the structure filtration of that we propose respects our principles for software, keeping IV as one company to guarantee customers agnostic from hardware on guaranteeing our employees and associate the specialization of the company in the field of software, while still benefiting from strong links with Schneider.
Finally, I should say that Schneider on IB have a common point. We have strong European routes, but we have been we have bet for a long time on the strong development of Asia, especially in construction. So, Tom, I, Filip, are living in Asia, and we have been discussing with each other for a long time on what we announced today has been the result of multiple or long lasting discussion between the teams of RIB on the team of Schneider to assess the convergence on the compatibility of our culture. Now I'd like to move to the slide presentation and I'm moving to slide 2. So the highlights of this announcement are pretty simple.
We are on a journey to build leadership in digital and sustainable smart building solution. Which is an objective that both companies have in common. We want here to enable end to end business life cycle offering financially, we aim to be accretive to in adjusted EBITA margin in 2021. We offer a very attractive premium of 41% on the last closing price and 37% premium on the last 3 months 16% of the shares have been committed by the shareholders, by some shareholders of IB. The deal is fully supported by IB board and the IB management will continue developing their company in their roles.
Going to Slide 3 and remind you that our mission, our purpose at Schneider, is to lead digital solutions for efficiency on sustainability converging the world of energy on automation. And of course, what we are talking about today is geared to buildings on data centers. Moving on to Slide 4, and reminding you what I introduced you to in June last year during our Investor Day, we proposed superior solution at Schneider because we propose a combination of 4 integration, the 1 of energy and automation, the one from endpoint to the cloud, which is EcoStruxure, the one from building and design to operate on man maintain the life cycle integration, which is at the core of IB on Schneider going together. And finally, the integration from a traditional way of managing a company side by side to the integrated way of managing company. So here, what we are talking about is about 0.3 lifecycle integration And slide 5, you remember that a bit more than 2 years ago, we created the new Aviva doing that integration of the lifecycle for industry and infrastructure in engineering and industrial software what we are going to talk about later or today is about doing that for the building that we see all digital and electric on where we keep building a software portfolio.
So now I'd like to hand over to Philippe. Philippe are online
Yes, I am. Thank you, Jean Pascal. So just to keep building on everything you said, we're going to try to go one level down and evidence sits with a few specifics. So page 6, so we are a technology company and our goal with our customers drive efficiency and sustainability. I'm leading Energy Management, which has a very strong core business.
And we've heard loud and clear the fact that our shareholders and actually our customers saw an opportunity for us to further expand into digital. And into software. And the more we did that, the more we and we made quite a bit of work to map the different options. And as Jean Pascal said, be logical on where to go we really realized that to be relevant, we needed to be on the full life cycle with our customers to drive the right innovation. So if we go at page 7 and try to really position the different offers, so Jean Pascal was telling you guys that in the industry, we created what we call that layer 3, the digital layer with Avisa and actually also joining force with what came from at that time in Vences and Schneider on the operate and maintain.
And actually, what we are doing, what we are aiming to do today with RIB is very similar and it's a parallel path in the building space. So we have a core technology in connected products in Edge Control. We build organically a fantastic set of technology in operation and maintain our advisors, our digital services, driving power reliability, AGSE Optimization, assets and and ability. And we clearly saw an opportunity to expand further looking the full life cycle at the bill phase. And that's exactly where RID fits, which is building a very complimentary or bringing a very complimentary offering in construction, so ware that allow Schneider Electric to bring a full life cycle experience to our customers, driving sustainability and the efficiency.
And you've seen that slide, partnership with other player in design because indeed, we believe there are big names in that space. And we've tried and we've worked with these names to really plug and make sure that we would build the best complementarity with those people. Now, if we go on slide 8 and really look a bit at the big picture, what are the the customer needs and the market opportunity. Again, if we make the parallel to the previous page, we at Schneider have been pretty active on the OpEx phase, driving energy efficiency. That's something that we've been talking about for the past 10 years at minimum asset efficiency.
So our value proposition is very strong here. But actually there is equal, if not greater value proposition to be delivered at the CapEx phase. 90% of the construction project run over costs. There is a lot of waste, 30% waste, which actually is related to the fact that we are at the beginning of the digital journey. And there was a Mackenzie survey that was showing that the more digital, the more but when we look at the all industry, we believe that at best that in the users in this industry are digital at 5%.
And that's the very best because in most countries, it's actually more around 1% and 2%. So all of this shows that we are at the tipping point of really a massive deployment of digital technology in the old construction And this is so we see therefore a double digit market growth opportunity. And we believe RID is ideally placed year with the support of Schneider to expand its capability. So I'm going to pass it to Tom. Tom, you are the Chairman and CEO of RIV.
So Tell us about your company.
Yes, thanks. Shopas Galla and Chile, but I could not agree more with your words. And your strategy and our vision from IB is to digital transform the building and infrastructure industry into most advanced industries. On our planet and to create next generation of living. And this means we are working very hard hand in hand to reach a carbon free and sustainable living space by 2050.
And this is such a big task where I believe join forces is the best way to reach this very, very important target. And RB is positioned as a global market leader in digital transformation of this industry. We are more We are not on the design sector. We are on the build sector. And here we have reached a leading position.
And when you look deeper in IB, we are the cost guys. So we are world champions when it comes to cost and time. So we are combining in the future three d design with cost and time to come to a real 5d solution, which allows in real time to monitor projects And this is not only on a project level, but on an enterprise level because all our industry players are thinking about how to digitally transform their business. And here, we try, to bring the best solution. And the best solution means today cloud platform, only the replatforming of the software industry is ongoing and we have created a cloud platform, which is now rolled out worldwide, but we have also a competitor from Silicon Valley who are employing 1000 salespeople to win the market.
So we had to join forces to make sure that our platform, our cloud platform can really win this competition. IP at a glance, we are founded 61. We are maybe the oldest Worldwide software company in the construction vertical. We are headquartered in Stuttgart, but we have also an international headquarter in Asia and we have around 2700 employees increasing employees very, very fast we have the most people on the count in our sector. We are working in 26 countries with 100,000 clients and we have already 500,000 users who are daily using our technology.
Our revenue is around 2 14 1,000,000 in 2019. We announced numbers today and our EBITDA is 23% or a little bit more than 23% or 50,000,000. We have 2 products. 1 is called I24.0, which is a completely cloud platform, which can be implemented within 48 hours because we are also offering infrastructure as a service because a lot of companies in this fragmented market are not big enough to have their own infrastructure here cloud help. Therefore, we have a partnership with Microsoft in the go to market.
Now with the Microsoft on the one side and Schneider on the other side, we believe we are now super strong in winning this market. But, I want to hand over now
to Thank you, Tom. So, clearly, a great capabilities. And if we are back to customers, One thing that actually we find very compelling is that we are talking to the same customers. These customers are end users, they are contract with the general contractor, mechanical, electrical contractors. And the great thing here is that Schneider has a huge customer base partners and really end user customers.
And what we did over the past months was to talk to our customers about the RID capabilities and see how they would react. And I would say 2 things I retain are very striking. 1, extremely excited by the value prop and what it would bring for them. So you have on page 11, a few example, a larger builder for which RIB would allow a clear improvement of each each rate by being much faster to respond and much more accurate to respond quotes, a co location data center provider that's today using Excel. I'm not going to name that company, to do the whole project estimate and for which using RIB would mean a 40% productivity improvement and or a large general contractor for which using RIB costing module would mean a 60% improvement of cost accuracy and actually behind this much more efficiency into doing this business.
That's just a subset of customer example because we've been extremely diligent to look at many different other customers, electrical contractor, mechanical contractors. We're discussing yesterday with some about a customer very far away from where we are on the on more the Pacific zone that was an end user and that actually is very close to passing another M2. So really a lot of, complementarity here and capacity for Schneider to open doors. And I would say for Schneider, another benefit, which is complementing the whole value proposition we have with our customers with value props that are really, really important at the C level. So a reinforcement of the intimacy we would have with the hundreds of thousands of customers that Schneider is reaching every day.
So that leads me to Page 12, where we see, really with this operation, a full alignment with our strategy. To expand our digital offers in our key end market. And you know that our building and data center market is more than 50% of our sales. So that's really important. In the previous slide, I was trying to show where our IBCs in our Eco structure stacks are really at level 3 at the phase of construction.
The point I was just listing before, which is it's helping our customer engagement more at C level because our value proposition would be extremely meaningful and important for our customers. And I would say, last but not least, expand our share of software and services and make Schneider an even stronger digital and software company to position ourselves in the all digital and the electric world. Page 13, very important also to state what Schneider Electric brings to REIT software. For sure, a long term shareholding position, which is really important, combine the capacity to accelerate the international expansion of RIB, which when I say we are today at the tipping point it's a race against time to be in front of customers and expose the best technology to the biggest number of customers. Clearly Schneider brings a deep domain expertise in efficiency and sustainability in the field of building more at the OpEx phase, but I would say pretty much end to end.
And of course, the whole customer relationship with the 500,000 plus partners we have in the world, which are for RID a fantastic opportunity and we've been speaking at length, we stop about that. Now we're going to move to, let's say, the key parameters of the offer and nobody better than, I mean, nobody would be better than Emmanuel to talk about that. So Emmanuel, up to you.
Thank you, Philippe. Good morning, everybody. And indeed, we are moving to the main features of our offer. And we believe that it clearly a very compelling offer for Air ID shareholders. The first thing is that we are making our offer under the form of a voluntary tender offer for all of RIB's shares.
The offer price is per share in cash, And it does represent a 41% premium to current share price and 37% premium to the 3 months VWAP. We put a minimum acceptance threshold of 50 percent plus 1 share on a fully deleted basis. We do not intend to enter into a a a domination agreement with the company. Jean Pascal mentioned it, the deal has been fully supported by AirIB's administrative board. The CFO and the CEO.
So both Michael and Tom, have committed to tender half of their shares. I percent. And the AIRIB will also tender about 7% treasury shares. And that means that we have secured already 16% of IRID shares. The CEO and the CFO will continue in their role and they will remain on the administrative board.
And the offer is of course subject to antitrust clearance, notably in Germany, in Austria, in Republic in the U. S. And in South Africa and that will also require diffuse approval. I am now moving on page 15, the financial impact on Schneider Electric. I think we've highlighted it through the call.
We expect strong revenue synergy by putting ARIB and Schneider in the same team. And we are clearly a nice double digit organic growth for the future of Air IBs. When we look at the impact on profitability of the company, there is, you know, this synergy that are going to drive up the margin rapidly. We do expect to have this, transaction to be accretive on the Schneider Electric adjusted EBITDA margin in 2021 and we have a clear plan to get to 20% in 2022. So very fast acceleration together with the top line growth of the profitability.
When we look at AirIB guidance for 2020, they said an expected EBITDA between 1000000 and 1000000. And that means that our offer is offering a multiple of 23.5 time on the expected, multiple for, the, the transaction. And, and that, that, that give, a multiple that is, is clear thanks to the guidance. The transaction, will be immediately neutral or positive to Schneider Electric EPS, of course, excluding the Portugal runoff transaction cost. And the ROCE is expected to cover work by year 5.
And moving on to Page 16, which are the next step. So we are going to file before end of February, the draft offer with Bethin, the regulatory body of the German market. We expect the start of the accident period in March and end of the accident period in April and that will need a settlement at the end of Q2 2020. I now hand over to Jean Pascal for the conclusion.
Well, that will be a very short conclusion. As you can see, I, be on Schneider, share the same vision for the building. Of course, smart, unsustainable, share the same vision or the same vision for the need streamline the life cycle of the building. And we've checked over time, certainly more so over the past months but discussing on working together over the past years that we had the same corporate culture entrepreneurial spirit in the field of construction. So we are all very excited to combine forces to allow RIV to really focus on growth, on allocating its resources to the deployment of its platform.
That concludes, our presentation, Amit.
Well, yes, thank you, John Thank you all. Let's move now to Q And A. Just a point before we start taking questions. Everyone's info. The recording of this call should be available by about 1 pm CED.
So that's just for info. Let's start on the first question. Please, operator.
Thank you very much. And we will now begin our you. Session. As a courtesy to the other participants may have finally request that you limit the number of questions you ask to 2 at a time And we've received the first question. It is from Ben Aglow of Morgan Stanley.
Please go ahead. Your line is now open.
Good morning and thank you taking the question. It was really just to understand the management retention aspect.
I don't know
if that's a question for Tom. Or for Jean Pascal, but in terms of tendering half of the shares, in terms of the remaining shares, are there lockup in, around what the management can do? And in terms of continuing, are there going to be specific lockup agreements in terms of how long the existing management stays with the company?
Jean Pascal, you won't take it or you want me to take it?
No, I won't take it. Okay.
So, First of all, on the so Tom and Michael have I've actually proposed to tender all their shares and we've asked and been really specific that we wanted the 2 of them retained half of their share to be very strongly incentivized to the project. And we believe it's important. Jean Pascal was talking about the joint entrepreneurial culture, and we are very attached to it. And I we share the same vision in that regard. So we think it's a it's really important.
In term of lock up there is a sort of lockup that would last for 14 months. And that's a starting point, but I would say Michael and Tom are very committed to the success of this operation. I think you heard that also through the call. And the fact that they are keeping some shares is to us a very important condition for that. There is a current contract up to December 2022, which, let's say, clarify the future for the coming 3 years.
And they would say we are going to take dense things step by step and learn as we work together.
Understood. And are there any other sort of separate things in place for the, let's call it, the divisional management or the other senior employees. I'm just trying to understand the ability to keep people on board.
Yes. We have agreed that we continue all the agreements and all the relationships with our top leaders. And, because we have over years a relationship with Schneider and Schneider leaders have presented on our summits. Our people know Schneider very well and we could get appealing that this will be seen as a big step forward and fully in line with our top management.
Okay,
great. Thank you very much.
Thank you, Ben. Let's take the next question.
The next question we've received is from William Mackie of Kepler Cheuvreux. Please go ahead. Your line is now open.
Yes. Good morning. Thank you for taking the question. I believe in the past, RIB has developed its business through a series of acquisitions in of IT service providers. And now that you are are joining forces with Schneider Electric and able to utilize their footprint for distribution.
Do you envisage a change in the way that you bring this product to market and how would that change develop against the backdrop of the shifting sort of, revenue agreements, which is a second, I guess, subsidiary question as we move towards a subscription model as opposed to just selling pure licenses. So is there a change in the revenue outlook? That's the first question. The second, you have a platform, I believe, called y y t w o, which is quite interesting. It's a procurement platform for building products.
I wonder what the plans are for using that given that there's obviously a lot of cross synergy potential between your your software platform and Schneider Electric interest in distributing product? Yes. Thank
you. Yes. 1st of all the We have a 5 years plan and we shared this 5 year plan with a lot of interested parties. As you know, half a year ago, we announced that we are open for discussions with strategic, and financial investors to strengthen our shareholder base And we have given this 5 year plan with all the details that we have developed and sales network sales network now over this MSP investments. And after, and now we have this global sales network, which can help now to utilize all the client relationships which we win with our new partner.
And, it's very important to know that, with this cloud offering, with this M2 cloud offering, we have now a product which can be implemented in 20 in 48 hours, which is a product which can be used by such sales organization. I believe with Microsoft and Schneider and with this teamwork in sales and with our network, we are now very well positioned, but, it's within our 5 years plan, which we have announced 1 year ago and which we have shared with a lot of parties. We find that the match here with Schneider was the best match. We don't expect that we are having a different plan now in the market. So we are only sure that the execution of our plan is now highly secured within this alliance or within this strategic investor solution
All right. I think, we move to the next question and I understand that there are probably several questions on the line. Can I just request everyone it to one question per person and then we'll come back to, if time allows? So, operator, next question, please.
The next question is from Gael De Bray of Deutsche Bank.
I think Schneider now offers a number of digital offerings for buildings and data centers, including energy efficiency, software solutions, electrical design capabilities and now Beam. So is there a plan to integrate all of these competencies. I mean, would it make sense, first of all, to do that, to put everything under the same roof?
So on that one, we are very incremental, meaning, I think Jean Pascal said it, we are doing our strategic work to be surgical on capabilities that make sense. And after that work, we saw that this expansion was really making sense for our customers. So one, we want to make sure that we do the best job we can to support Reeves expansion. And then step by step, we are creating the links being very practical with our customers and test what works. We believe there is a great synergy between the build and the operate and maintain.
And by the way, we see other players doing similar paths. So are going to create bridges between this team and between this technology. And the great news is that EcoStruxure is fully cloud enabled, very open and we share this belief with Tom and Tim to connect the dots between the different platforms. You've seen that we made some move with IGXO and LP more in electrical CAD. When you do a full design, of building, of course, electrical is a key attribute where you need to connect the dots.
So We also are going to connect the dots with our customer in a very pragmatic manner, learn from that, and then iterate. Which is really the way we are doing in digital. So yes, we believe there is an opportunity to connect the dots. We are going to learn by doing And by doing that, we're going to be smarter and keep building our plan going forward.
I may compliment or Amit, Gail, on your question, I think take the example of Aviva. We, on one side, we have gained a lot to supply complete solutions, inclusive of connected product conference on the software layer. But at the same time, from the beginning, I think I've shared that with you guys from the beginning. We completely recognize that the software layer is different. We want it to be agnostic.
We want it to be specialized on software to attract the best talent and that has been very strong credo on our side. So what we are showing is that on one side, we want to maintain the specialization to be the best software company among software companies. But at the same time, is the bridges with Schneider, which we have really succeeded to do in industry so that we make those software companies benefit from all the introductions that we have with customers. And, putting everything on the one roof can is sometimes not the best recipe, to make things happen. So only it will depend on the case.
Some people want it integrated. Some people want to But the reality is that we speak to the same customer, those customers are facing the holistic equation of integration real time on design And this is what we believe that has been our strategy for since we integrated the software of invences. And we keep going into that direction.
All right.
Thanks very much. Thank you. Thanks, Gail. Next question please.
The next question is from James Moore of Redburn. Please go ahead. Your line is now open.
I have a question on the competitive landscape. I guess it might be for Tom. Tom, I believe you operate in the construction replatforming market, which a gather is quite a small part of the overall construction IT software market, maybe 10%. As I'm a complete novice, to this market. Can you help us understand what it is you actually do and what you don't do compared to some of the bigger companies out there like Autodesk, and who the real competitors are and what the sort of market share, pie chart looks like in your in your world.
Yeah. First, we see ourselves as complementary to companies like Autodesk. And when you look on our technology, it's a kind of bridge between design and finance. So we are pressuring the design data to the finance data. And the difference to the most offerings is that we are a kind of enterprise solution.
Enterprise solution means we can connect 1000 of projects, we can connect around the world all data. And when you look on a competition, actually at the moment, there are some Silicon Valley activities who are trying to build a platform, which is also fully native cloud and can support the transformation because at the moment when our clients worldwide, they are looking to digitalize their business, they have understood that there is a value in their data. And to collect all the data is now the most important task and when they have the data all collected, then they can use artificial intelligence and such technologies to develop new business models. And in this market, which I believe will dominate the IT market in this building vertical, in this market, I would say at the moment, IB is in the lead position. I don't see anybody far behind us.
This is what's the comments for Microsoft when they introduced our partnership, but there are some Silicon Valley companies want to win the platform race And we believe now with the, with the partnership with our strategic investor, Schneider, we have a very nice position to win this race. Autodesk for us is, a very complimentary. I would almost say a partner who who has the same vision to digital transform and to, to win,
the companies using BIM technology means 3 d technology instead of 2 d drawings and the traditional way of doing construction. So maybe to wrap it up really in the whole beam. Our advice would be that when you go and assess that market, really, look at the design and then the build has 2 complementary markets. And actually, the competitive landscape is really different in the design and in the build. As we said, we actually don't want to go to design because we believe they are established players that are well in place, Autodesk being clearly one of them and probably the most important one.
Then in build, the market is We've done our homework and we see really a handful of people that have the size of rib. And when we've done the homework of technology, we believe we bring the best capabilities in term of platform, cloud, and capacity to bring together the planning, the costing and the real time management of construction.
Thank you very much.
Thank you, James. We take the next question please.
The next question is from Vyamo Bignon Lojour of UBS. Please go ahead. Your line is now open.
Thank you. Good morning. It's Gama Bigna from UBS. Just a question on the synergies. I guess, you know, RIB having now the access to, you know, it's neither, knowledge and content and context in the architects and specifications, so I wonder, you know, if you can give us a more granular number when it comes to revenue synergies that you're factoring into some of the assumptions.
Obviously, not a specific numbers if you can't, but some kind of guidance as to how to think about this. And whether that actually related to the last question helps you in the competitive landscape with companies like hexagon Smart Build not being able to have the same access as you do?
Very important is that we have announced a 5 year plan or a midterm plan where we have given targets to the whole market. And this we have announced already end of 2018. So this plan is to increase our revenue and to increase our client base, very strong in the next years. And from my side, I can say that with the investment of Schneider, we have a stable shareholder structure, which and we have a fantastic partner, to execute the plan which we have announced I would not raise the plan. At the moment, I would say, with the partnership, strategic partnership in the changing world, it's more safe now to execute this plan, which we have announced to the whole market, in all details.
And maybe to complement, so we've done some joint work before I'm using that to really substantiate this the meaning of this combination. And we've met with a lot of customers and when I was mentioning those three examples, there are many more, and we feel strongly on the capacity to indeed open the doors for RID technology.
Thank you, Guillermo. Next question.
The next question is from Malner of Pareto Securities. Your line is now open. Please go ahead.
Hey, good morning, everybody. Actually, it's Continker, but still from Pareto My question is on the listing. Do we plan to keep the listing of our B share a longer term, or do we plan to make a squeeze out at some point in time. Thanks a lot.
Maybe I can take that one Emmanuel speaking. Of course, as we said, we are making an offer for all the shares of the company with the understanding that, term and Michael are going to keep, half of the shares But we believe that it's a very compelling offer for the shareholders. So is if as we expect all shareholder are bringing their shares to the offer, then we will be in a situation where we will keep on me a small number of shareholder and then of course the squeeze out question will be on the table. But I think it's just too early to answer because we don't know what's going to be the final outcome. And therefore, I cannot be more precise than that at that stage.
All right. Okay. Thank you. Next question please.
The next question is from Tanuj Agrawal of Barclays. Please go ahead. Your line is now open.
Hi, good morning there. This is Sanujakrawal from Barclays. I have a question back to on synergies. Actually, I mean, you specify double digit organic growth with Schneider. I mean, what's the synergies we should assume in case of Schneider, which comes to Schneider with this acquisition, please.
If you can have some ballpark numbers around how we achieve the 1,400,000,000 valuation for the company,
I think it's a I mean, we consider that when we help RIB selling, it's good for Schneider. So to be really simple, we think that the biggest source of synergy and that's really what we're going to work upon 1st and foremost, in the back, of course, we're going to work on the technology to make sure that things are better connected, but think we've been very clear on that sales synergy first to help our IB develop its sales. And for sure, for Schneider, it will mean better customer intimacy with a general contractor with the end users that will help us to sell more. But I would say to quantify things simply, 1st and foremost, we'll drive as we'll drive the support, the sales support we're going to give to RID. And I would say very similar to the model we had with Aviva.
And we saw with Aviva that actually it was a win win on both sides because it was helping us to be more relevant from the whole rest of China.
And I would like to add here one point IB technology stands for simulating the whole process before you rebuild. Here we have material labor and equipment. So in the future, every big project will be simulated in all details in BIM in 3 d, you are defining all materials, all labor and all equipment in a project And, we believe that in this time, it's very important that there are databases available where all materials can be used and can be checked in a project. So we believe in the at the moment with IB software, they are more than 1,000,000,000 of projects are created And when this is done in all details, I believe it can have a very nice impact on the product selection in the future and can have a nice impact also on our partner side.
In the end, we bring jointly a few sense for our customers, which is really a big deal.
All right. Thank you. Next question.
The next question we've received is from Tom Beckman of Jefferies. Line is now open. Please go ahead.
Hi, good morning. A couple of short questions for me, please. Could you say whether if I pay a dividend for the last financial year before the offer closes, whether that will be deducted from the 29 year off or not? And could you comment on why you feel it was necessary to file recipients if you consider any parts of higher beef business to be particularly sensitive with respect to the U. S.
Government?
Manuel, you want to take that?
So on the dividend, maybe I will let you answer in Stuttgart. On this issues, well, let's be clear. You know, it's a it's a very technical matter. It depends on the on the characteristic of the deal. And, we've been advised that this transaction would require a CFIUS filing.
And I don't think I have more things to share about it. Maybe back to you on the dividend in Stuttgart.
So the Stuttgart, I lost Stuttgart. So dividend will not be that did.
And do you intend to pay a dividend before the, for last financial year?
We agreed to continue our policy and we have announced it already. So there is no midterm change in the policy at the moment discussed. And I expect that it will be continued.
All right. I think in the interest of time, I think we're going to take the last two questions. So operator, let's have the first of the two
Yes, sure. The next question is from Lee Dunlop of JP Morgan. Your line is now open. Please go ahead.
My question has been answered. Thank you very much.
Thank you. Chenidis from Jerome Bruno of Investeche Bank. Please go ahead. Your line is now open.
Quick question, if I may, you, as as management of RIP Software is keeping half of the holding, could Schneider as them to tender should the level of 50% when not reached without it? Thank you.
And you already won't take that one?
Well, I for the time being, you know, the plan is what we've been, we've been clearly disclosing. And And depending on the situation, I mean, I guess everything can be, re discussed, but for the time being, the plan is what we've been announcing. So they keep alpha of their shares.
Thank you.
All right. So maybe we'll give one more question because the previous one was already answered. So let's have one last question please.
Yes. The last question we've received is a follow-up question of James Moore from Redburn. Please go ahead. Your line is now open.
Thanks for squeezing me in, Amit. So I would like to just make sure I understand your financial plan, really. I mean, you're talking about ROCE exceeding WACC in year 5. I'm assuming 8%. I'd love to know if that's wrong, but that about a 104 of no platt.
And if I think about the current tax rates, that's about a 150 of EBIT and a 180 ish of EBITDA. By 2024. I just wanted to check that that's basically the right ballpark. And I wanted to compare it to the the RIB 5 year plan that I found on your RIB definitions on your website, which talks about the numbers way and to that, but maybe you're talking about the market. Maybe you could help me here, but you talk about the construction replatform market going to 1,000,000,000 by 2025.
With a 30% margin, which would be something like a 15,000,000,000 market. And the fact you hope to have 10% of that, which would be 1a half 1,000,000,000. I'm sure there's a there isn't a massive mismatch, but maybe you could help me on how that this plan compares to your existing plan and whether I got the numbers right on both sides or wrong on one side?
We have not changed our future and we have announced all our few. We believe that industries like Automotive Industry are spending 3% of their spending in IT And we believe this also can will happen in the building and infrastructure construction industry. So, and if this happen, of course, there will be companies who are going for this, take, let's say, for this revenue opportunity, and we believe we are in a good position and here nothing has changed, but we have competition and especially new competition comes up around the world because software, IT Industry is a global business So we have not changed our targets, but, and we have also said how much percentage we want to call. And as you know, a big part of the growth was over acquisition and the other part of the call was over organic growth. We have not changed our plan, but we believe with the strategic investor Schneider in IB, we are in a much more secured position because market has changed a lot.
We have a crisis in Asia. We have the Brexit. We have the trade war. We have a lot of things, which came up, climate change becomes a big topic. So we believe now we are in the right shareholder structure, to execute our targets.
And we have tried in the last years always to give the market a full picture that everybody knows where we want to go and could evaluate us in a best way. So this has not changed, but we feel we have a much more secured. We don't have to focus on shareholders and such a part. We can fully focus now on business execution And therefore, we are optimistic. But if you have asked Google or such companies before or Tesla, what can they reach?
Of course, there's a potential but there's also competition in the market.
Can I just add, you know, you were I'm asking about the watch for the company? We view it today and of course, you know, happy to provide detail with a very low interest rate rather around 7%. And to beat the watch, you know, take of course, as we said, strong growth for the top line and strong margin improvement. And that when you combine the 2, that you get to this rocky beaching the word by year 5.
Just while we're on that, are there any integration costs or tax changes that, you could help us with?
So we don't, today expect, you know, change in the tax situation of the company. And in terms of integration costs, today, we don't expect them to be very material, and, and that's what we can, we can share with you at update
Very helpful. Thank you.
James, Jean Pascal, we are going to be more detailed and we can certainly discuss more in detail with you. But I think at the end of the day, what we are bringing to a rebase focus to our IVs focus which is that we can focus on growth. We can focus on adoption. Therefore, generate more growth and make sure the allocation of cost and resources is dedicated to profitable growth. On our base of customer, is working on construction.
Actually, we enter the game at the stage of the construction is eager to find tools to make themselves more So that's really the name of the game. I mean, opening, as Tom was explaining before, a lot of the energy of IV has been dedicated to opening international market, we have that international network and we want to open plenty of other doors and really focus the action of of the company on creating the digital platform for construction.
That's very helpful. Thank you, Jean Pascal, everyone.
All right. I think Thanks, Saul. I think we're at the hour. So maybe we conclude the call here. Just a reminder, at least on the Snyder side, we are still in quiet period.
We have annual results next week. And of course, we will have lots of chances for much more detailed discussions. But thank you all for your time today and have a good rest of the day.
I'm going to speak to you next week.
Thank you.
Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.