Nemetschek SE

Earnings Release • Oct 30, 2018

Nemetschek Group

Financial Highlights Third Quarter / 9 Months Results 2018 October 30, 2018

¹ Constant currency

¹ Constant currency

Growth driver recurring revenues: Smooth transition towards subscription ongoing

Revenue split 9M 2018

Recurring revenues Maintenance and rental models such as subscription, SaaS

Software licenses

Consulting & Hardware

¹ Constant currency ² Previous year

Q3 2018 9M 2018		9M 2018 comments
Recurring revenues yoy	Recurring revenues yoy	Above average growth to ▌
+26.4% +26.5% cc1	+20.5% +24.2% cc1	€ 162.4m
Subscription yoy	Subscription yoy	Strong growth to € 14.5m ▌
+64.7% +66.3% cc1	+46.9% +54.5% cc1	(previous year: € 9.9m) Strategic change of business ▌ model towards subscriptions
Software licenses yoy	Software licenses yoy	Double-digit growth in Q2 ▌
+14.1% +13.5% cc1	+9.1% +13.2% cc1	and Q3 9-month figures of € 155.8m ▌ in line with expectations

Internationalization is key: US is strongest growing market

¹ Constant currency ² Previous year

Segment overview: Build segment is key growth driver

Revenues in €m

Healthy balance sheet allows further strategic M&A

-71,1

EBITDA

in €m

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

Net liquidity²

¹ Operating cash flow/EBITDA ²Previous year = End of 2017 ▌ 9M 2017 ▌ 9M 2018

8

Entering new markets / Partnerships

• ▌ Graphisoft enters into strategic partnership with Singapore's Surbana Jurong – biggest urban and infrastructure consulting firm in Asia
• ▌ Vectorworks opens new office in Canada
• ▌ dRofus adds first reseller partner for US and Australia/New Zealand
• ▌ Bluebeam with stronger focus on UK and Germany
• ▌ Allplan opened up new office in West Chester, USA, to address the US concrete reinforcement market

Acquisition (Brand-level)

• ▌ Nemetschek acquired MCS Solutions to enter the smart building operations market
• ▌ Bluebeam acquired project Atlas' groundbreaking visualization SaaS solution "maps" for construction industry
• ▌ Nevaris acquired market leader in mobile construction site management 123erfasst.de

Cross-brand highlights / Interoperability

• ▌ First dRofus and Graphisoft Open BIM Project in Australia – Sunshine Coast University Hospital
• ▌ First Allplan Bridge software released

Increase efficiency

▌ Implementation of groupwide IT infrastructure is on track

Operational excellence

¹ The revenue outlook is based on planned exchange rate of 1.18 EUR/USD

Financial Calendar

November 13, 2018	Capital market day
November 15, 2018	Morgan Stanley TMT Conference, Barcelona
November 27, 2018	Equity Forum, Frankfurt
December 6, 2018	Berenberg European Conference, Pennyhill

OCTOBER 2018 FINANCIAL HIGHLIGHTS THIRD QUARTER / FIRST NINE MONTHS 2018

€m	Q3 2018	Q3 2017	% YoY	9M 2018	9M 2017	%YoY
Revenues	114.9	95.8	+19.8%	330.9	289.8	+14.2%
Own work capitalized/other operating income	1.2	1.3	-10.4%	4.3	3.5	+25.0%
Operating income	116.1	97.2	+19.4%	335.3	293.3	+14.3%
Cost of materials/purchased services	-3.6	-3.4	+5.9%	-10.2	-9.7	+5.7%
Personnel expenses	-51.2	-42.1	+21.8%	-145.3	-127.6	+13.9%
Other operating expenses	-32.0	-26.9	+18.9%	-91.5	-79.6	+15.0%
Operating expenses	-86.8	-72.4	+20.0%	-247.0	-216.8	+13.9%
EBITDA	29.2	24.8	+17.8%	88.2	76.5	+15.3%
Margin	25.5%	25.9%		26.7%	26.4%
Depreciation of PPA and amortization	-6.0	-5.3	+14.3%	-16.8	-16.2	+4.2%
t/o PPA	-3.8	-3.3	+15.8%	-10.6	-10.2	+3.9%
EBITA (normalized EBIT)	27.0	22.8	+18.4%	82.0	70.5	+16.2%
EBIT	23.2	19.5	+18.8%	71.4	60.3	+18.3%
Financial result	-0.1	-0.2		0.0	-0.6
EBT	23.1	19.3	+19.3%	71.4	59.7	+19.6%
Income taxes	-6.1	-3.9	+57.5%	-18.6	-15.3	+21.0%
Non-controlling interests	1.2	-0.3		-0.2	-1.5
Net income (group shares)	18.2	15.1	+19.9%	52.6	42.8	+22.9%
EPS in EUR	0.47	0.39	+19.9%	1.37	1.11	+22.9%

€m	September 30, 2018	December 31, 2017
Assets
Cash and cash equivalents	106.8	104.0
Trade receivables, net	51.6	41.0
Inventories	1.4	0.6
Other current assets	21.4	13.5
Current assets, total	181.2	159.1
Property, plant and equipment	16.6	14.9
Intangible assets	104.6	86.9
Goodwill	248.1	192.7
Other non-current assets	7.7	7.3
Non-current assets, total	377.0	301.7
Total assets	558.2	460.8

€m	September 30, 2018	December 31, 2017
Equity and liabilities
Short-term borrowings and current portion of long-term loans	52.1	36.0
Trade payables & accrued liabilities	44.6	43.7
Deferred revenue	95.6	68.1
Other current assets	19.6	18.0
Current liabilities, total	211.9	165.7
Long-term borrowings without current portion	87.2	43.9
Deferred tax liabilities	20.1	13.5
Other non-current liabilities	12.2	9.6
Non-current liabilities, total	119.4	67.1
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	189.7	193.2
Other comprehensive income	-14.0	-18.7
Non-controlling interests	0.2	2.5
Equity, total	226.9	227.9
Total equity and liabilities	558.2	460.8

€m	September 30, 2018	September 30, 2017	% YoY
Cash and cash equivalents at the beginning of the period	104.0	112.5	-7.6%
Cash flow from operating activities	72.1	68.2	+5.8%
Cash flow from investing activities	-71.1	-31.9	+122.6%
t/o CapEX	-7.8	-6.9	+12.1%
t/o Cash paid for business combinations	-63.3	-24.9
Cash flow from financing activities	-0.2	-46.7
t/o Repayments of borrowings	-29.5	-19.5
t/o Changes in bank liabilities due to company acquisitions	86.0	0.0
t/o Payments for acquisitions of non-controlling interests	-25.5	-0.2
FX-effects	1.9	-5.9
Cash and cash equivalents at the end of the period	106.8	96.2	+11.0%
Free cash flow1	1.1	36.3
Free cash flow1 (w/o acquisition effects)	64.4	61.1	+5.2%

¹ Operating cash flow – Investing cash flow

Contact

NEMETSCHEK SE Investor Relations Konrad-Zuse-Platz 1 81829 Munich Germany investorrelations@nemetschek.com www.nemetschek.com

Disclaimer

This presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Such statements reflects current views of Nemetschek SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market acceptance of new products, services or technologies and changes in business strategy. Nemetschek SE does not intend or assume any obligation to update these forward-looking statements.