Nemetschek SE

Interim / Quarterly Report • Jul 28, 2022

2022 HALF-YEAR STATEMENT AS OF JUNE 30

To our shareholders

YVES PADRINES CHIEF EXECUTIVE OFFICER (CEO)

Following the very good start to the year 2022, the Nemetschek Group continued its strong double-digit growth path in revenues and earnings in the second quarter. The basis for this successful operational performance is Nemetschek's attractive portfolio of software solutions, the consistent implementation of its strategic initiatives, as well as the high level of commitment of the entire organization and the management team. We are currently benefiting from the strong relationship with our customers as well as the lasting high demand in our industries for our digital solutions. The development in the first half of the year thus confirms our strategy to continue the internationalization of our business and to decrease the complexities across the Group while continuing to win new customers. Based on the strong operational development in the first two quarters of the year as well as the high share of recurring revenues, the Executive Board confirms its outlook for the financial year 2022 – despite an increasing uncertainty of the global economic environment. The Executive Board therefore continues to expect a revenue growth at constant exchange rates in the range of 12% to 14% for the Group. The EBITDA margin is targeted to be between 32% and 33%.

Key Figures of the Group in Q2 and H1 2022

» Consolidated revenue grew by 22.9% (currency-adjusted: 16.4%) in Q2 to EUR 203.8 million (Q2 previous year: EUR 165.9 million). The accumulated consolidated revenue for the first six months increased to EUR 396.1 million, representing a 22.1% growth (currency-adjusted: 16.9%) over the previous year's EUR 324.3 million.

• » The main growth driver in Q2 continued to be the recurring revenues from subscription and Software as a Service (SaaS) models. Revenues from this category increased by 56.5% (currency-adjusted: 47.8%) to EUR 47.3 million (Q2 previous year: EUR 30.2 million). In the first half of 2022, revenues from subscriptions and SaaS models grew by 58.1% (currency-adjusted 51.0%) to EUR 92.5 million (H1–21: EUR 58.5 million). As a result, the share of subscriptions / SaaS revenues increased from 18.0% to a new record high of 23.3%. The licence business also developed positively in Q2 with a revenue growth of 14.0% (currency-adjusted: 7.0%) to EUR 66.4 million (Q2 previous year: EUR 58.2 million). In the first six months of the year, licence revenues increased by 15.0% (currency-adjusted: 9.4%) to EUR 130.2 million (H1 previous year: EUR 113.3 million).
• » The operative consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 21.7% (currency-adjusted: 11.7%) in Q2 to EUR 68.6 million (Q2 previous year: EUR 56.3 million). At 33.6%, the EBITDA margin in Q2 was at a similar level to last year's (34.0%). On a half-year basis, the EBITDA margin expanded to 34.9% (H1 previous year: 32.7%).
• » Net income (Group shares) grew by 40.4% in Q2 to EUR 46.5 million (Q2 previous year: EUR 33.1 million). Consequently, the earnings per share in Q2 increased to EUR 0.40 (Q2 previous year: EUR 0.29). In the first half of 2022, the profit grew by 42.4% to EUR 89.1 million (H1 previous year: EUR 62.6 million), corresponding to earnings per share of EUR 0.77 (H1 previous year: EUR 0.54).

Strategic Focus and Segment Overview

• » In addition to the successful Subscription and SaaS transition and the increase in the share of recurring revenues, the Group's strategic focus continued to be on the ongoing internationalization of its business. The success of this strategy is reflected in the over-proportional growth in revenues abroad (+27.0%) in the first half of the year, with North America and Asia/Pacific in particular contributing to this strong growth. Nemetschek's increasing diversification in terms of end-markets and regions, along with the rising share of recurring revenues further improve the plannability and resilience of its business model which is particularly important in the face of the currently increasing uncertainties in the economic environment. In the first half of the year, Nemetschek continued with its integration and harmonization initiatives across its brand portfolio while simultaneously driving the developments in its innovation focus areas of artificial intelligence, cloud-solutions, and digital twins. The integration of the acquired US company Pixologic in the Media segment continued as planned. Additionally, with the strategic acquisition of DC-Software, the technology portfolio of the Design segment was once again expanded. Nemetschek also continued with its strategy to invest in young and innovative companies in the AEC/O industry with the investment in start-up SymTerra, a UK-based provider of a construction site communications platform. The Nemetschek Group adjusted its governance structures to future growth. Therefore, following the Annual General Meeting on May 12, 2022, the Supervisory Board was expanded from four to six members.
• » In the Design segment, the Nemetschek Group recorded revenues of EUR 97.3 million in Q2 2022 (Q2 previous year: EUR 86.3 million). This corresponds to a growth of 12.6% (currency-adjusted: 8.8%) compared to the previous year's quarter. In the first half of 2022, revenues grew by 11.5% (currency-adjusted: 8.4%) to EUR 190.5 million (H1 previous year: EUR 170.9 million). The EBITDA margin in Q2 2022 of 33.0% lies above the prior year level of 31.9%. In the first six months of the financial year, the segment recorded a margin of 33.5% (H1 2021: 32.7%).
• » In the Build segment, revenues in Q2 2022 increased significantly by 36.5% (currency-adjusted: 25.2%) to EUR 73.1 million (Q2 previous year: EUR 53.5 million). Revenues of EUR 137.8 million (H1 previous year: EUR 103.2 million) in the first half of the year correspond to a growth of 33.5% (currency-adjusted: 24.6%). In Q2 2022, the EBITDA margin was reduced to 42.9% (Q2 previous year: 45.9%). In the first half of 2022, the EBITDA margin was slightly above the previous year's level (44.3% versus 44.0% in H1-21).
• » In the Manage segment, revenues in Q2 2022 grew by 4.7% (currency-adjusted: 4.8%) to EUR 11.6 million (Q2 previous year: EUR 11.1 million). In the first half of 2022, revenues of EUR 22.6 million (H1 previous year: EUR 22.0 million) result in a growth of 2.9% (currency-adjusted: 2.9%). The EBITDA margin of 8.6% in Q2 2022 was below the previous year's level of 10.0%. For H1, the EBITDA margin was at 7.6% (previous year: 8.8%).
• » Revenues in the Media segment increased by 48.4% (currency-adjusted: 40.2%) from EUR 16.5 million to EUR 24.4 million in Q2. In the first six months of the year, revenues amounted to EUR 50.0 million (H1 previous year: EUR 31.2 million), corresponding to a growth of 60.3% (currency-adjusted: 53.1%). Apart from the strong organic growth dynamics, the Media segment also benefited from inorganic growth impulses due to the acquisition of the business operations of Pixologic, Inc.. The segment's EBITDA margin increased significantly to 39.2% in Q2 2022 (Q2 previous year 35.7%). In the first half of 2022, the EBITDA margin increased significantly to 43.3% compared to last year's 34.8% last year.

Financial Outlook for 2022 Confirmed

The Executive Board of the Nemetschek Group confirms its financial targets published in March 2022. The Executive Board therefore continues to expect a revenue growth at constant exchange rates in the range of 12% to 14% for the Group. The EBITDA margin is targeted to be between 32% and 33%.

On the one hand, the confirmation of these targets is based on the strong operational performance in the first two quarters of the year as well as the high proportion of recurring revenues. On the other hand, it also reflects an increasing uncertainty of the global economic environment caused by Russia's war against the Ukraine, the ongoing Covid-19 pandemic, as well as the continued supply chain problems across sectors accompanied by increasing procurement and financing costs. The outlook does not reflect potential negative effects due to any escalation of this conflict and severe economic distortions.

Yours sincerely

Yves Padrines

Nemetschek on the Capital Market

Rising inflation fears at the beginning of the year 2022 led to a faster than expected normalization of monetary policies. The expected higher interest rates led to a strong movement of capital out of growth and technology stocks and into value stocks. In addition, Russia's war against the Ukraine as well as repeated regional lockdowns due to the ongoing Covid-19 pandemic caused distortions in the global energy markets and further worsened the situation of the already strained global supply chains.

The deteriorating outlook for the global economy, which was partly based on these developments, resulted in a sell-off across almost all asset classes and the global stock markets in particular.

The European and US stock market indices as well as emerging market stocks recorded comparable sharp price declines in the first half of 2022. The German stock market indices also saw strong price declines in the first half of 2022. The DAX lost 20%, while the MDAX and TecDAX declined by around 27% which was comparable to the STOXX Europe (Software & Computer Services) which lost –29%.

Nemetschek Share Price Trend since the Beginning of 2022

After a very strong increase of 86.8% in 2021, the shares of the Nemetschek SE started the new year at a record high of EUR 112.80 on January 3, 2022. However, during the first half of the year, the shares of the Nemetschek SE were also not immune to the developments on the global capital markets and recorded a sharp share price decline similar to the TecDax and most of its peers. The Nemetschek shares reached its low of EUR 54.62 on June 17, 2022. At the end of the first half of the year, the share price was at EUR 57.76, corresponding to a market capitalization of EUR 6.67 billion. By the end of July, Nemetschek' s share price stabilized at these levels.

DEVELOPMENT OF THE NEMETSCHEK SHARE IN 2022 COMPARED TO THE DAX, MDAX, TECDAX AND STOXX (SOFTWARE & COMPUTER SERVICES) INDEXED

Nemetschek DAX MDAX TecDAX STOXX Euro

Shareholder Structure

The Nemetschek SE share capital amounted to EUR 115,500,000 as of June 30, 2022 and was divided into 115,500,000 no-par value bearer shares.

SHAREHOLDER STRUCTURE*

* Direct shareholdings as of June 30, 2022.

Virtual Annual General Meeting (AGM) approved all Agenda Items

The ordinary AGM of the Nemetschek SE was held as a virtual event on May 12, 2022 for the third consecutive time due to the Covid-19 pandemic. For registered shareholders and their proxies, the entire AGM, including Q&A and voting, was broadcasted live as part of a password-protected internet service.

Shareholders were informed at the AGM about the past financial year 2021 and the prospects for the current financial year 2022. In addition, the resolutions from the agenda were presented. The company's shareholders approved all items on the agenda with a clear majority.

The agenda also included the payment of the annual dividend. For the fiscal year 2021, the Executive Board proposed the payment of a dividend of EUR 0.39 per share, an increase of 30% over the previous year (EUR 0.30 per share). The total dividend payment amounted to EUR 45.0 million (previous year: EUR 34.7 million). The company thus continued its sustainable dividend policy based on the successful business development in 2021 and increased its dividend for the ninth consecutive time despite an ongoing challenging environment. Simultaneously, the Nemetschek Group will continue to strategically invest in value-enhancing acquisitions as well as start-ups in order to drive future growth.

Other agenda items included the discharge of the members of the Executive Board and Supervisory Board for the financial year 2021, the expansion of the Supervisory Board from four to six members along with the corresponding amendment of the Statutes and the election of board members. It should be highlighted that the company's founder, Prof. Georg Nemetschek, was elected as the honorary chairman of the Supervisory Board. In addition, the approval of the Remuneration Report for the financial year 2021 was resolved, and the remuneration system for members of the Executive Board was approved and amendments to the Articles of Association on remuneration of Supervisory Board members were resolved.

The free float was at 48.4% on June 30, 2022.

Key figures

NEMETSCHEK GROUP

in EUR million	2rd quarter 2022	2rd quarter 2021	Change	6 months 2022	6 months 2021	Change
Operative figures
Revenues	203.8	165.9	22.9%	396.1	324.3	22.1%
- thereof software licenses	66.4	58.2	14.0%	130.2	113.3	15.0%
- thereof recurring revenues	128.8	99.9	28.9%	249.5	196.1	27.3%
- subscription (as part of the recurring revenues)	47.3	30.2	56.5%	92.5	58.5	58.1%
EBITDA	68.6	56.3	21.7%	138.4	105.9	30.7%
as % of revenue	33.6%	34.0%		34.9%	32.7%
EBIT	53.4	42.3	26.3%	109.6	81.0	35.3%
as % of revenue	26.2%	25.5%		27.7%	25.0%
Net income (group shares)	46.5	33.1	40.4%	89.1	62.6	42.4%
per share in €	0.40	0.29		0.77	0.54
Net income (group shares) before purchase price allocation	53.8	39.2	37.1%	102.0	72.5	40.8%
per share in €	0.47	0.34		0.88	0.63
Cash flow figures
Cash flow from operating activities	42.6	45.3	–5.9%	114.6	105.8	8.4%
Cash flow from investing activities	–11.0	–10.3		–21.7	–14.2
Cash flow from financing activities	–41.6	–44.2		–56.4	–66.3
Free cash flow	31.6	35.0		92.9	91.6
Balance sheet figures
Cash and cash equivalents*				197.9	157.1	26.0%
Net liquidity/net debt*				69.6	28.4
Balance sheet total*				1,146.5	1,054.2	8.8%
Equity ratio in %*				53.2%	51.4%
Headcount as of balance sheet date				3,268	3,129	4.4%
Share figures
Closing price (Xetra) in €				57.76	64.52
Market Capitalization				6,671.28	7,452.10

* Presentation of previous year as of December 31, 2021.

Interim Group Management Report (H1 2022)

Results of Operations, Financial Position, and Net Assets

Results of Operations

Results of Operations – Successful first half 2022: Revenue growth of 22.1% with further improvement in EBITDA margin to 34.9%

Group revenues increased by 22.1% to EUR 396.1 million in the first six months of 2022 (H1 previous year: EUR 324.3 million). This was attributable to a strong revenue growth especially in the segments Build and Media. Adjusted for currency effects, i.e. on the basis of constant exchange rates, revenue growth would have amounted to 16.9%.

EBITDA increased by 30.7% to EUR 138.4 million (1H previous year: EUR 105.9 million). This meant EBITDA margin rose considerably from 32.7% in the first half of 2021 to 34.9%. The further upturn in the margin is primarily attributable to the good operating business development and above-average revenue growth in the high-margin Build and Media segments.

Revenue development

Revenues by business type – Subscription and SaaS remain growth drivers

All in all, the first half of 2022 saw extremely encouraging revenue development as the Group made further progress toward its strategic objective of increasing the share of recurring revenues – especially subscription and SaaS – in total revenues. In total, recurring revenues rose to EUR 249.5 million (1H previous year: EUR 196.1 million), corresponding to revenue growth of 27.3% (currency-adjusted: 22.0%). This above-average increase meant that the share of recurring revenues improved from 60.5% in the first half of 2021 to 63.0%. Subscription/SaaS revenues alone increased significantly by a further 58.1% (currency-adjusted: 51.0%), from EUR 58.5 million in the same period of the previous year to EUR 92.5 million.

Licensing business also enjoyed encouraging growth. Revenues from software licenses amounted to EUR 130.2 million in the first six months of the financial year, an increase of 15.0% compared to the first half of the previous year (EUR 113.3 million). Adjusted for currency effects, the increase amounted to 9.4%. The share of total revenues attributable to revenues from software licenses declined slightly to 32.9% (1H previous year: 34.9%). This development is in line with our strategic objective of expanding the proportion of recurring revenues.

Revenues by region – Internationalization

The increasingly global alignment of the Group is an important factor in its diversification. In the first half of 2022, domestic revenues increased by 7.3% to EUR 85.9 million (1H previous year: EUR 80.1 million). In its foreign markets, the Nemetschek Group generated revenues of EUR 310.1 million, (1H previous year: EUR 244.2 million), corresponding to an increase of 27.0% compared to the previous year period. Foreign markets accounted for 78.3% of total revenues in the first half of 2022 (1H previous year: 75.3%). In particular, the Americas and Asia/Pacific focus regions made an above-average contribution to the strong growth in the Group, while development in Europe was overshadowed by the challenging geopolitical situation.

Overview of segments

The Design segment, whose business activities are mainly focused on Europe, generated revenues of EUR 190.5 million in the first half of 2022 (1H previous year: EUR 170.9 million). This corresponds to a growth of 11.5% (currency-adjusted: 8.4%) and was mainly driven by the over-proportional increase in subscription revenues with 59.3%.

EBITDA grew by 14.2%, from EUR 55.9 million in the first half of 2021 to EUR 63.9 million in the first half of 2022. This led to a slight improvement in the margin to 33.5%, (1H previous year: 32.7%). The Build segment, which primarily targets construction companies in the USA and the German-speaking countries, continued to benefit greatly from what is currently still a very friendly environment in the construction sector. Revenues increased by 33.5% in the first half of 2022 (currency-adjusted: 24.6%) to EUR 137.8 million (1H previous year: EUR 103.2 million). The targeted timing for the transformation process to subscription and SaaS solutions in the second half of 2022 was confirmed.

EBITDA increased by 34.5% to EUR 61.1 million in the first half of 2022 (1H previous year: EUR 45.4 million). At 44.3%, the EBIT-DA margin in the first half of 2022 was slightly higher than in the same period of the previous year 44.0%.

In the Manage segment, which focuses on European commercial construction, the market situation stabilized slightly, even though the volume of investments by facility managers remains below pre-crisis levels. Revenues totaled EUR 22.6 million in the first half of 2022. This represents growth of 2.9% (currency-adjusted: 2.9%) compared with the first half of 2021, when revenues amounted to EUR 22.0 million. The slight growth in the segment was driven by recurring revenues as well as license business.

Segment EBITDA amounted to EUR 1.7 million in the first half of 2022 (1H previous year: EUR 1.9 million), with the result that the margin declined from 8.8% in the first half of 2021 to 7.6% in the first half of 2022.

The Media segment continued its growth trajectory and benefited from acquisition-related growth effects – the acquisition of the business operations of Pixologic, Inc. at the end of the 2021 financial year – as well as the well-advanced conversion to subscription models. In the first half of 2022, revenues rose by 60.3% (currency-adjusted: 53.1%) to EUR 50.0 million (1H previous year: EUR 31.2 million), with the proportion of revenues attributable to subscription models seeing a well above-average increase.

Profitability also continued to improve significantly. Segment EBITDA amounted to EUR 21.6 million in the first half of 2022 (1H previous year: EUR 10.8 million). Accordingly, the EBITDA margin rose from 34.8% in the first half of 2021 to 43.3%, in the first half of 2022.

Earnings performance – Earnings per share at EUR 0.77

Operating expenses increased by 18.6% in the first half of 2022 from EUR 247.5 million to EUR 293.6 million. The cost of materials included in this item increased to EUR 14.6 million (1H previous year: EUR 12.3 million). Personnel expenses rose by 16.6% from EUR 140.2 million in the first half of 2021 to EUR 163.5 million. Other expenses increased by 23.8% from EUR 70.1 million to EUR 86.7 million. Depreciation and amortization of fixed assets increased by 15.6% from EUR 24.9 million to EUR 28.8 million mainly driven by increased amortization from intangible assets acquired during the last twelf month.

In the first half of 2022 the net income (group shares) increased strongly by 42.4% to EUR 89.1 million (1H previous year EUR 62.6 million). The corresponding earnings per share amounted to EUR 0.77 (1H previous year: EUR 0.54). Adjusted for amortization from the purchase price allocation after tax, net income rose by 40.8% to EUR 0.63 (1H previous year: EUR 72.5 million), resulting in earnings per share of EUR 0.88 (1H previous year: EUR 0.63).

The Group's tax rate amounted to 19.2% in the first half 2022 (1H previous year: 19.7%).

Financial position

Development of cash flow – Operating cash flow at EUR 114.6 million – Cash and cash eqivalents at EUR 197.9 million

Cash flow from operating activities was mainly used for investments in fixed assets and intangible assets, dividend payments, repayments of acquisition loans, and repayments of lease liabilities.

The Nemetschek Group generated a cash flow from operating activities of EUR 114.6 million in the first six months of 2022 (1H previous year: EUR 105.8 million). This further increase, which was due in particular to the improvement in operating performance, also more than offset the significant year-on-year rise in income tax payments to EUR 34.7 million which include significant prepayments for income taxes which will be recovered in subsequent years (first half of previous year: EUR 16.5 million).

Cash flow from investing activities amounted to EUR –21.7 million in the first half of 2022 (1H previous year: EUR –14.2 million) and includes payments for contingent purchase price obligations in the amount of EUR 7.5 million and capital expenditures of EUR 8.3 million (1H previous year: EUR 3.8 million).

The cash flow from financing activities amounted to EUR –56.4 million (1H previous year: EUR –66.3 million) and primarily consisted of dividend payments of EUR 45.0 million (1H previous year: EUR 34.7 million), repayments of bank loans of EUR 21.9 million (1H previous year EUR 35.7 million) and payments of lease liabilities in the amount of EUR 8.2 million (1H previous year EUR 7.4 million). These payments were offset by cash inflows from bank loans in the amount of EUR 20.8 million (1H previous year: EUR 13.0 million).

As at June 30, 2022, the Nemetschek Group held cash and cash equivalents of EUR 197.9 million (December 31, 2021: EUR 157.1 million). Mid of July the Nemetschek Group has prolonged and increased the credit lines for upcoming business acquisitions to EUR 275.0 million.

Net assets

Total assets increased from EUR 1,054.2 million as at December 31, 2021 to EUR 1,146.5 million as at June 30, 2022. With equity amounting to EUR 609.4 million (December 31, 2021: EUR 541.7 million), the equity ratio was 53.2% compared to 51.4% as at December 31, 2021. Net income for the first half of the year (EUR 90.8 million) and the EUR 22.3 million increase in the carrying amount of Group assets due to foreign currency effects served to increase equity, while dividend payments (EUR 45.0 million) had an opposing effect. The dividend increased by 30% from EUR 0.30 per share to EUR 0.39 per share.

Significant events after the interim reporting period

There were no significant events after the end of the interim reporting period.

Employees

The Nemetschek Group had 3,268 employees as at June 30, 2022 (June 30, 2021: 3,129), representing an increase of 4.4% compared to the prior-year period. The Nemetschek Group is planning to recruit additional employees over the next few quarters in order to ensure its future growth.

Report on opportunities and risks

The Group management report for the year ended December 31, 2021, describes the opportunities and risks that could have a significant impact on the net assets, financial position, and results of operations of the Nemetschek Group. It also describes the features of the risk management system. During the first half of 2022, the overall risk situation for the Company did not change significantly compared with December 31, 2021, with the exception of the war in Ukraine.

The war in Ukraine is giving rise to economic and industry-specific developments that could also have an indirect impact on the Nemetschek Group. For example, interruptions to supply chains and the energy supply and a further rise in inflation could substantially disrupt the world economy and the capital markets, which could have negative consequences for the Nemetschek Group. The management is continuously observing developments, discussing potential measures, and ensuring that assessments of the situation are taken into account in current business decisions.

Overall, Nemetschek is satisfied that the risks identified do not pose a threat to the continued existence of the Group, either individually nor as a whole. This assessment is supported by the balance sheet structure, liquidity resources and financing structure.

Report on forecasts and other statements on expected development

The Executive Board of the Nemetschek Group confirms the forecasts published in March 2022. This means that year-on-year revenue growth adjusted for currency effects is expected to amount to between 12% and 14%, while a range of 32% to 33% is forecast for the EBITDA margin. These targets are confirmed on the basis of the strong business performance in the first two quarters of the current year and the high proportion of recurring revenues. However, it also reflects the growing deterioration in the global economic environment, which has been exacerbated by the Russian invasion of Ukraine and the ongoing Covid-19 pandemic, and which is leading to supply bottlenecks across all sectors and rising procurement and financing costs. It does not take into account the potential impact of an escalation of the conflict, which would cause significant economic disruption.

As the result of changes, it is possible that the individual figures in this quarterly report do not exactly add up to the totals given and that the percentage disclosures do not reflect the absolute values from which they are derived.

Consolidated Statement of Comprehensive Income

for the period from January 1 to June 30, 2022 and 2021

STATEMENT OF COMPREHENSIVE INCOME

Thousands of €	2rd quarter 2022	2rd quarter 2021	6 months 2022	6 months 2021
Revenues	203,846	165,866	396,069	324,298
Other income	4,099	2,673	7,146	4,172
Operating income	207,944	168,540	403,215	328,470
Cost of goods and services	–7,643	–5,593	–14,559	–12,270
Personnel expenses	–85,306	–70,787	–163,510	–140,239
Depreciation of property, plant and equipment and amortization of intangible assets	–15,237	–14,090	–28,769	–24,891
thereof amortization of intangible assets due to purchase price allocation	–8,455	–7,853	–15,539	–12,765
Other expenses	–46,407	–35,819	–86,743	–70,060
Operating expenses	–154,594	–126,289	–293,581	–247,460
Operating result (EBIT)	53,351	42,250	109,634	81,010
Interest income	11	11	71	25
Interest expenses	–603	–861	–1,237	–1,499
Other financial expenses/income	3,607	–321	3,904	–728
Net finance costs	3,015	–1,171	2,738	–2,202
Share of net profit of associates	0	83	0	83
Earnings before taxes (EBT)	56,366	41,162	112,372	78,891
Income taxes	–9,815	–7,602	–21,538	–15,522
Net income for the year	46,551	33,560	90,834	63,369
Other comprehensive income:
Difference from currency translation	14,882	–2,970	22,337	11,489
Items of other comprehensive income that are reclassified subsequently to profit or loss	14,882	–2,970	22,337	11,489
Gains/losses from the revaluation of defined benefit pension plans	503	–2	773	235
Tax effect	–150	1	–226	–67
Items of other comprehensive income that will not be reclassified to profit or loss	353	–1	546	168
Subtotal other comprehensive income	15,235	–2,972	22,884	11,657
Total comprehensive income for the year	61,786	30,589	113,718	75,026
Net profit or loss for the period attributable to:
Equity holders of the parent	46,510	33,128	89,106	62,574
Non-controlling interests	41	432	1,728	795
Net income for the year	46,551	33,560	90,834	63,369
Total comprehensive income for the year attributable to:
Equity holders of the parent	60,120	30,709	109,972	73,875
Non-controlling interests	1,666	–121	3,746	1,150
Total comprehensive income for the year	61,786	30,589	113,718	75,026
Earnings per share (undiluted) in euros	0.40	0.29	0.77	0.54
Earnings per share (diluted) in euros	0.40	0.29	0.77	0.54
Average number of shares outstanding (undiluted)	115,500,000	115,500,000	115,500,000	115,500,000
Average number of shares outstanding (diluted)	115,500,000	115,500,000	115,500,000	115,500,000

Consolidated Statement of Financial Position

as of June 30, 2022 and December 31, 2021

STATEMENT OF FINANCIAL POSITION

Assets	Thousands of € June 30, 2022	December 31, 2021
Current assets
Cash and cash equivalents	197,942	157,095
Trade receivables	83,037	70,108
Inventories	889	949
Income tax receivables	10,040	4,766
Other financial assets	1,313	1,220
Other non-financial assets	31,737	28,990
Current assets, total	324,959	263,128
Non-current assets
Property, plant and equipment	22,894	20,736
Intangible assets	150,531	158,884
Goodwill	555,106	523,967
Right-of-use assets	61,337	59,233
Investments in associates	4,063	4,063
Deferred tax assets	9,518	8,208
Other financial assets	14,922	13,816
Other non-financial assets	3,136	2,158
Non-current assets, total	821,506	791,064

Total assets 1,146,464 1,054,193

Equity and liabilities	Thousands of €	June 30, 2022	December 31, 2021
Current liabilities
Short-term borrowings and current portion of long-term loans		107,449	93,766
Trade payables		10,453	11,260
Provisions and accrued liabilities		55,701	71,744
Deferred revenue		202,613	157,975
Income tax liabilities		9,182	11,496
Other financial liabilities		3,563	7,355
Lease liabilities		14,573	14,060
Other non-financial liabilities		20,024	16,870
Current liabilities, total		423,558	384,526
Non-current liabilities
Long-term borrowings without current portion		20,860	34,935
Deferred tax liabilities		19,166	20,590
Pensions and related obligations		2,869	3,601
Provisions		5,050	4,530
Deferred revenue		2,467	2,966
Income tax liabilities		4,701	4,787
Other financial liabilities		827	1,241
Lease liabilities		54,237	51,977
Other non-financial liabilities		3,310	3,379
Non-current liabilities, total		113,487	128,005
Equity
Subscribed capital		115,500	115,500
Capital reserve		12,485	12,485
Retained earnings		459,929	415,410
Other reserves		2,876	–17,533
Equity (group shares)		590,791	525,862
Non-controlling interests		18,628	15,799
Equity, total		609,419	541,662
Total equity and liabilities		1,146,464	1,054,193

Consolidated Cash Flow Statement

for the period from January 1 to June 30, 2022 and 2021

CONSOLIDATED STATEMENT OF CASH FLOWS

	Thousands of € 6 months 2022	6 months 2021
Profit (before tax)	112,372	78,891
Depreciation and amortization of fixed assets	28,769	24,891
Net finance costs	–2,738	2,202
Share of net profit of associates	0	–83
EBITDA	138,403	105,901
Other non-cash transactions	1,212	1,682
Cash flow for the period	139,615	107,583
Change in trade working capital	23,945	23,948
Change in other working capital	–15,984	–10,015
Financing effects	75	25
Income taxes received	1,666	758
Income taxes paid	–34,674	–16,524
Cash flow from operating activities	114,642	105,773
Capital expenditure	–8,282	–3,803
Changes in liabilities from acquisitions	–7,465	–1,583
Cash received from disposal of fixed assets	16	139
Cash paid for acquisition of subsidiaries, net of cash acquired	–5,033	–2,219
Cash paid for acquisition of other investments	–974	–6,732
Cash flow from investing activities	–21,737	–14,199
Dividend payments	–45,045	–34,650
Dividend payments to non-controlling interests	–917	–337
Cash received from bank loans	20,800	13,000
Repayment of borrowings	–21,850	–35,650
Principal elements of lease payments	–8,218	–7,425
Interests paid	–1,159	–1,260
Cash flow from financing activities	–56,389	–66,321
Changes in cash and cash equivalents	36,516	25,253
Effect of exchange rate differences on cash and cash equivalents	4,332	2,932
Cash and cash equivalents at the beginning of the period	157,095	139,320
Cash and cash equivalents at the end of the period	197,942	167,505

Consolidated Statement of Changes in Equity

for the period from January 1 to June 30, 2022 and 2021

			Equity attributable to the parent company's shareholders
Thousands of €	Subscribed capital	Capital reserve	Retained earnings	Translation reserve	Total	Non-controlling interests	Total equity
As of January 1, 2021	115,500	12,485	315,341	–39,408	403,919	13,373	417,292
Other comprehensive income	-	-	145	11,156	11,301	356	11,657
Net income for the year	-	-	62,574	-	62,574	795	63,369
Total comprehensive income for the year	0	0	62,719	11,156	73,875	1,151	75,026
Dividend payments to non-controlling interests	-	-	-	-	0	–337	–337
Dividend payment	-	-	–34,650	-	–34,650	-	–34,650
As of June 30, 2021	115,500	12,485	343,410	–28,252	443,143	14,187	457,330
As of January 1, 2022	115,500	12,485	415,410	–17,533	525,862	15,799	541,662
Other comprehensive income	-	-	457	20,409	20,866	2,018	22,884
Net income for the year	-	-	89,106	-	89,106	1,728	90,834
Total comprehensive income for the year	0	0	89,563	20,409	109,972	3,746	113,718
Dividend payments to non-controlling interests	-	-	-	-	0	–917	–917
Dividend payment	-	-	–45,045	-	–45,045	-	–45,045
As of June 30, 2022	115,500	12,485	459,929	2,876	590,790	18,628	609,419

Notes to the interim financial statements

The condensed consolidated interim financial statements of the Nemetschek Group have been prepared in accordance with the International Financial Reporting Standards (IFRS), as required to be applied in the European Union, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and of the Standing Interpretations Committee (SIC). These interim financial statements have been prepared in accordance with the requirements of IAS 34.

The interim financial statements as of June 30, 2022 have not been audited and have not undergone an audit. Significant changes to the consolidated statement of financial position, the consolidated statement of comprehensive income and the consolidated cash flow statement are detailed in the report on the earnings, financial and asset situation.

The accounting and valuation policies applied in the condensed consolidated interim financial statements are generally based on the same accounting and valuation policies used as a basis for the consolidated financial statements for the 2021 financial year. The presentation of certain prior-year information has been reclassified to conform the current year presentation.

Revenues

REVENUES

	14,990
249,499	196,052
130,190	113,256
6 months 2022	6 months 2021
	16,381

REVENUES BY REGION

Thousands of €	6 months 2022	6 months 2021
Germany	85,945	80,133
Europe without Germany	121,821	108,335
Americas	148,881	105,937
Asia/Pacific	38,099	28,950
Rest of World	1,323
	396,069	324,298

Consolidated Segment Reporting

for the period from January 1 to June 30, 2022 and 2021

SEGMENT REPORTING

2022	Thousands of €	Design	Build	Manage	Media	Reconciliation	Total
Revenue, total		190,547	137,782	22,597	49,966	–4,824	396,069
thereof revenue external		188,980	136,001	22,319	48,769	0	396,069
	thereof intersegment revenue	663	1,781	126	1,198	–3,769	0
EBITDA		63,889	61,070	1,724	21,636	–9,916	138,403
Depreciation/Amortization							–28,769
Net finance costs							2,738
EBT							112,372

SEGMENT REPORTING

2021	Thousands of €	Design	Build	Manage	Media	Reconciliation	Total
Revenue, total		170,858	103,194	21,970	31,178	–2,903	324,298
thereof revenue external		169,881	102,175	21,840	30,401	0	324,298
thereof intersegment revenue		13	1,019	112	777	–1,921	0
EBITDA		55,922	45,412	1,934	10,835	–8,202	105,901
Depreciation/Amortization							–24,891
Net finance costs							–2,202
Share of net profit of associates							83
EBT							78,891

Declaration of the legal representatives

"We hereby confirm that to the best of our knowledge, the interim consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group and the interim Group management report gives a true and fair view of the business performance, including the results of operations and the situation of the Group, and describes the main opportunities and risks and anticipated development of the Group in the remaining financial year, in accordance with the applicable framework for interim financial reporting."

Munich, July 2022

Yves Padrines Dr. Axel Kaufmann Viktor Várkonyi Jon Elliott

Financial calendar 2022

October 27, 2022

Publication 3rd Quarter 2022

Contact

Nemetschek SE, München Investor Relations, Konrad-Zuse-Platz 1, 81829 Munich

Contact: Stefanie Zimmermann, VP Investor Relations and Corporate Communication Tel.: +49 89 540459-250, Fax: +49 89 540459-444, E-Mail: szimmermann@nemetschek.com

NEMETSCHEK SE Konrad-Zuse-Platz 1 81829 Munich Tel.: +49 89 540459-0 Fax: +49 89 540459-414 investorrelations@nemetschek.com www.nemetschek.com