Nemetschek SE

Earnings Release • Jul 26, 2019

University Library Freiburg, Germany

Architects: Degelo Architects, Basel, Switzerland | Image: Andrea Secci | Realized with GRAPHISOFT

Nemetschek Group

Second Quarter I Half Year 2019 Earnings Call

26 July 2019 | Patrik Heider, Spokesman & CFOO

Key Business Highlights H1 2019: Excellent Basis for Achieving Targets in FY 2019

Strong Performance Continued in H1 2019 M&A / Sale Successes

IFRS 16 adjusted: 25.9%

Recurring revenues Subscription/SaaS revenues +136.7%

Revenues abroad +30.2%

Share split: End of June

High cash conversion 90.4%

Brand-level acquisitions: Manage Division

Axxerion by MCS, renamed afterwards in Spacewell

Redshift by Maxon Media & Entertainment Division

Sale of minority interest:

Value-generating sale of DocuWare with a strong positive one-time effect on EPS in Q3

Top Key Figures Q2 2019: Strong Growth of >20% Continued with High Operating Margin of 29%

Earnings Call Q2 / H1 2019 26 JULY 2019

3

Top Key Figures H1 2019: On the Way to Another Record Year

Earnings Call Q2 / H1 2019

Growth Driver Recurring Revenues: Subscription is Key Driver

Revenue distribution H1 2019

Earnings Call Q2 / H1 2019

Internationalization Is Key: Broad Growth Across All Regions

Earnings Call Q2 / H1 2019

Segment Overview: Build Segment Remains Key Growth Driver in H1

Revenues in m€

¹ Constant currency

Strong Cash Conversion Allows Further Investment in Organic Growth and Strategic M&A

| +30.0% - partly influenced by IFRS 16 | Adjusted growth (IFRS 16): +17.5%

| +59.8% | Strong development driven by good operative performance and IFRS 16

| - € 12.7m in Capex

| - € 97.6m for acquisition (thereof: € 73.4m Axxerion, € 24.2m Redshift)

| - € 21.1m repayment of loans

| - € 31.2m dividend payment

| + € 100.0m new loans for acquisitions

(thereof: € 82.0m Axxerion, € 18.0m Redshift)

¹ Operating cash flow/EBITDA | ² Previous year = End of 2018

Earnings Call Q2 / H1 2019

Outlook 2019: Strong Double-Digit Growth While Maintaining a High EBITDA Margin Confirmed

€m	Q2 2019	Q2 2018	% YoY	H1 2019	H1 2018	%YoY
Revenues	137.8	113.8	+21.1%	267.7	216.0	+23.9%
Own work capitalized/other operating income	1.2	2.2	-45.8%	2.8	3.1	-12.4%
Operating income	139.0	116.0	+19.8%	270.5	219.2	+23.4%
Cost of materials/purchased services	-4.9	-3.4	+46.4%	-9.3	-6.6	+39.7%
Personnel expenses	-60.3	-48.9	+23.2%	-117.5	-94.1	+25.0%
Other operating expenses	-33.8	-32.6	+3.6%	-67.0	-59.5	+12.6%
Operating expenses	-99.0	-84.9	+16.6%	-193.8	-160.2	+21.0%
EBITDA	40.0	31.1	+28.6%	76.6	59.0	+30.0%
Margin	29.0%	27.3%		28.6%	27.3%
Depreciation and amortization	-10.4	-5.5	+88.4%	-20.2	-10.8	+87.0%
t/o right-of-use assets	-3.6	0.0		-7.0	0.0
t/o PPA	-4.2	-3.4	+22.7%	-8.3	-6.8	+21.3%
EBITA (normalized EBIT)	33.8	29.0	+16.6%	64.7	55.0	+17.7%
EBIT	29.6	25.6	+15.7%	56.4	48.2	+17.1%
Financial result	-0.2	0.3		-0.7	0.1
t/o interest expenses right-of-use assets	-0.4	0.0		-0.7	0.0
EBT	29.4	25.8	+13.9%	55.7	48.3	+15.3%
Income taxes	-7.5	-7.0	+7.5%	-14.2	-12.5	+13.7%
Non-controlling interests	0.0	-0.7		0.1	-1.4
Net income (group shares)	21.9	18.1	+20.8%	41.4	34.5	+20.3%
EPS in EUR	0.19	0.16*	+20.8%	0.36	0.30*	+20.3%

* for better comparability, earnings per share has been presented after the stock split

€m	June 30, 2019	December 31, 2018
Assets
Cash and cash equivalents	119.8	120.7
Trade receivables, net	65.3	55.8
Inventories	1.6	1.2
Other current assets	30.8	24.6
Current assets, total	217.4	202.2
Property, plant and equipment	24.7	17.6
Right-of-use assets	65.3	0.0
Intangible assets	136.6	102.1
Goodwill	322.8	244.3
Other non-current assets	10.5	14.3
Non-current assets, total	559.8	378.3
Total assets	777.2	580.6

€m	June 30, 2019	December 31, 2018
Equity and liabilities
Short-term borrowings and current portion of long-term loans	80.5	56.3
Trade payables & accrued liabilities	43.0	53.5
Deferred revenue	126.2	95.1
Current lease liability	11.3	0.0
Other current assets	21.7	17.3
Current liabilities, total	282.7	222.3
Long-term borrowings without current portion	129.0	74.3
Deferred tax liabilities	26.3	17.2
Non-current lease liability	56.5	0.0
Other non-current liabilities	21.8	17.2
Non-current liabilities, total	233.6	108.7
Subscribed capital and capital reserve	128.0	51.0
Retained earnings	145.2	212.1
Other comprehensive income	-12.3	-13.6
Non-controlling interests	0.1	0.1
Equity, total	260.9	249.6
Total equity and liabilities	777.2	580.6

€m	June 30, 2019	June 30, 2018	% YoY
Cash and cash equivalents at the beginning of the period	120.7	104.0	+16.2%
Cash flow from operating activities	69.3	43.4	+59.8%
Cash flow from investing activities	-111.8	-8.2
t/o CapEX	-12.7	-5.2
t/o Cash paid for business combinations	-97.6	-3.1
Cash flow from financing activities	41.1	-54.0
t/o Dividend payments	-31.2	-28.9
t/o Repayments of borrowings	-21.1	-23.0
t/o Changes in bank liabilities due to company acquisitions	100.0	0.0
t/o Principal elements of lease payments	-5.1	0.0
FX-effects	0.4	0.1
Cash and cash equivalents at the end of the period	119.8	85.3	+46.5%
Free cash flow1	-42.5	35.1

(w/o acquisition effects) 55.1 38.2 +44.4%

¹ Operating cash flow – Investing cash flow

Free cash flow¹

Safe Harbor Statement

Each of the presentations today will contain forward -looking statements about our strategies, products, future results, performance or achievements, financial, operational and otherwise, including statements about our strategic priorities, guidance and our mid -term goal, our M&A strategy, and our capital allocation initiatives. These statements reflect management's current expectations, estimates and assumptions based on the information currently available to us. These forward -looking statements are not guaranteeing of future performance and involve significant risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by the forward -looking statements contained in these presentations.

Nemetschek undertakes no obligation to publicly update or revise any forward -looking statements. All forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward -looking statements, which speak only as of their dates.

26 JULY 2019 Earnings Call Q2 / H1 2019

Contact

NEMETSCHEK SE Investor Relations

Konrad -Zuse -Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com