Nemetschek SE

Earnings Release • Apr 30, 2019

University Library Freiburg, Germany

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

Nemetschek Group

3 -Month Results 2019 Earnings Call

30 April 2019 | Patrik Heider, Spokesman & CFOO

Key Business Highlights in the First Quarter: Excellent Start in the FY 2019

Strong Performance M&A Successes

Revenues:

IFRS 16 adjusted: 25.5% EBITDA margin: 28.2%

+27.1% to € 129.9m

Recurring revenues +33.9% Subscription revenues +124.8%

Revenues abroad +32.7%

Dividend proposal: €0.81 per share

High cash conversion 94.1%

Brand-level acquisitions: Manage Division

Axxerion by MCS, renamed afterwards in Spacewell

Redshift by Maxon Media & Entertainment Division

Earnings Call Q1 2019 30 APRIL 2019 2

Top Key Figures Q1 2019: Growth Accelerated in the First 3 Months of 2019

Growth Driver Recurring Revenues: Strongest Growth in Subscription

Internationalization Is Key: Broad Growth Across All Regions

Earnings Call Q1 2019

Segment Overview: Build Segment Remains Key Growth Driver in Q1

Revenues in m€

Earnings Call Q1 2019

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

| +31.4% - partly influenced by IFRS 16 | Adjusted growth (IFRS 16): +18.5%

| +30.0% | Strong development based on good operative performance

| - € 5.6m in Capex as planned

| - € 73.3m for acquisition

| - € 10.5m repayment of loans

| +€ 80.4m new loans for acquisitions

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

Earnings Call Q1 2019

Investment Focus: Our Strategic Investments Are Going on in 2019

3 Strategic initiatives to drive next-generation solutions

1. From Design to Build

| Targeting large customers by connecting the competences of brands | Disruptive workflow for design collaboration | Growing positioning in infrastructure

2. Transformative construction solutions

| Connected solutions to digitalize workflows and leverage construction project data in new ways | Empower file users with mobile solutions

3. Smart Building Platform

| Creating an integrated portfolio for the total building management lifecycle | Closing the loop towards design & build | Multi-source intelligent data hub for improving building, people and service performance

Enter adjacent markets

• | Leverage regional market leadership
• and competencies across brands
• | Investments in local market presence, resources, and end-to-end localized customer experience

Focus on markets with biggest potential

| USA followed by Europe and Asia

Increase efficiency

| Implementation of a groupwide harmonized core application infrastructure to leverage process efficiency

Earnings Call Q1 2019

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

9

P+L statement Q1 2019 comparison

€m	Q1 2019	Q1 2018	% YoY
Revenues	129.9	102.2	+27.1%
Own work capitalized/other operating income	1.6	1.0	+64.7%
Operating income	131.5	103.2	+27.4%
Cost of materials/purchased services	-4.3	-3.3	+32.8%
Personnel expenses	-57.3	-45.1	+26.9%
Other operating expenses	-33.2	-26.9	+23.6%
Operating expenses	-94.8	-75.3	+26.0%
EBITDA	36.7	27.9	+31.4%
Margin	28.2%	27.3%
Depreciation and amortization	-9.8	-5.3	+85.5%
t/o right-of-use assets	-3.4	0.0
t/o PPA	-4.0	-3.4	+19.9%
EBITA (normalized EBIT)	30.9	26.0	+18.9%
EBIT	26.8	22.6	+18.7%
Financial result	-0.5	-0.1
t/o Interest expenses right-of-use assets	-0.4	0.0
EBT	26.3	22.5	+16.9%
Income taxes	-6.7	-5.5	+21.4%
Non-controlling interests	0.0	-0.6
Net income (group shares)	19.6	16.4	+19.7%
EPS in EUR	0.51	0.43	+19.7%

€m	March 31, 2019	December 31, 2018
Assets
Cash and cash equivalents	144.7	120.7
Trade receivables, net	63.2	55.8
Inventories	1.4	1.2
Other current assets	26.2	24.6
Current assets, total	235.6	202.2
Property, plant and equipment	21.0	17.6
Right-of-use assets	68.3	0.0
Intangible assets	133.2	102.1
Goodwill	299.3	244.3
Other non-current assets	13.7	14.3
Non-current assets, total	535.5	378.3
Total assets	771.1	580.6

Balance sheet – Equity and liabilities

€m	March 31, 2019	December 31, 2018
Equity and liabilities
Short-term borrowings and current portion of long-term loans	59.4	56.3
Trade payables & accrued liabilities	40.8	53.5
Deferred revenue	124.3	95.1
Current lease liability	11.0	0.0
Other current assets	21.6	17.3
Current liabilities, total	257.0	222.3
Long-term borrowings without current portion	141.0	74.3
Deferred tax liabilities	24.5	17.2
Non-current lease liability	58.9	0.0
Other non-current liabilities	16.7	17.2
Non-current liabilities, total	241.2	108.7
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	231.6	212.1
Other comprehensive income	-9.8	-13.6
Non-controlling interests	0.1	0.1
Equity, total	272.9	249.6
Total equity and liabilities	771.1	580.6

€m	March 31, 2019	March 31, 2018	% YoY
Cash and cash equivalents at the beginning of the period	120.7	104.0	+16.2%
Cash flow from operating activities	34.5	26.6	+30.0%
Cash flow from investing activities	-78.8	-1.9
t/o CapEX	-5.6	-1.9
t/o Cash paid for business combinations	-73.3	0.0
Cash flow from financing activities	66.8	-6.7
t/o Repayments of borrowings	-10.5	-6.5
t/o Changes in bank liabilities due to company acquisitions	80.4	0.0
t/o Principal elements of lease payments	-2.4	0.0
FX-effects	1.5	-1.1
Cash and cash equivalents at the end of the period	144.7	120.9	+21.7%
Free cash flow1	-44.3	24.7
Free cash flow1 (w/o acquisition effects)	29.0	24.7	+17.4%

¹ Operating cash flow – Investing cash flow

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 guarantees 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.

Ingenuity Center, Nottingham, Great Britain Architects: Bond Bryan Architects, Great Britain | Realized with GRAPHISOFT

30 APRIL 2019 Earnings Call Q1 2019

Contact

NEMETSCHEK SE Investor Relations

Konrad -Zuse -Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com