Nemetschek SE

Investor Presentation • Sep 11, 2018

Nemetschek Group

Company Presentation September 2018

Nemetschek's key achievements: #2 biggest listed software company in Germany

We generate high shareholder returns¹

4-year TSR*

• | Nemetschek: ~500% | Peer group² : ~110%
• | TecDAX: ~120%

We outperform our peers²

4-year revenue CAGR: | Nemetschek: >20% | Peer group² : <10%

We keep our promises

FY 2017:

| Strong revenue growth by +17.3% to € 395.6m | EBITDA guidance with € 108.0m exceeded

We have become a global player

Impressive track record:

| 5-year CAGR of 45% in the US – the world's largest / most competitive AEC market

We deliver high profitability while we invest significantly in growth

Focus on growth:

| Double-digit revenue growth with sustainable EBITDA margin corridor of 25%-27%

¹ TSR: Total shareholder return: Share price performance + dividend | ² Peer group: International software companies

Nemetschek's industry achievements: #2 biggest global player in AEC

| We deliver revolutionary and best-in-class solutions in AEC covering the complete value chain

| We set industry standards for design, structural engineering, construction and building operations workflows

| We are the most customer-oriented AEC company

| We respect the customer's needs

| We gained >300,000 new users in 2017 (total of 4.0 million users worldwide)

| We stand for a flexible distribution approach, offering subscription as an additional choice

| We are the strongest growing AEC company with a 5-year CAGR of 17.7% | We outperformed the AEC market growth (~11% p.a.) 5 years in a row | We are closing the gap to the market leader to become #1 in AEC

Company Presentation

The Nemetschek Group: A unique approach similar to German Mittelstand

| Highly specialized small or midsized companies

| Long-term focus

| Innovative: holding 5x as many patents per employee as major cooperations

| Customer focused: 37% of all employees have regular customer contact (only 7% in major co-operations)

| Internationally successful: Almost 50% of all small world market leaders are German

| Going to market through 16 strong brands (5-90m €)

| Every brand is a world leader in its discipline

| Innovative: Many brands are pioneers in Building Information Modeling

| Customer focused: All brands are developing their solutions in close cooperation with the customers

| Internationally successful: #1 AEC software provider in Europe, one of the largest worldwide

Our DNA: Strong brands under one umbrella

Architecture 
DESIGN		BUILD	MANAGE	Media & Entertainment

• | Nemetschek covers the complete value chain in the AEC & Media industry
• | Entrepreneurial brands: Industry leaders with a unique DNA, expertise and customer orientation
• | Attractive set-up for potential targets

01 Financial Results H1 2018

Charles Perkinns Centre, Sydney, Australia

Architects: fjmt, fjmtstudio.com | Image: John Gollings | Realized with GRAPHISOFT

Top key figures Q2 2018: Accelerated growth with high profitability

Company Presentation

Top key figures H1 2018: On the way to achieving the guidance for 2018

¹ Constant currency

Company Presentation

Growth driver recurring revenues: Smooth transition towards subscription

Revenue split H1 2018

Consulting & Hardware

¹ Constant currency ² Previous year

Company Presentation

Software licenses yoy Recurring revenues yoy +23.0% cc¹ +17.4% ▌ Strong growth to €8.9m (previous year: €6.5m) ▌ Strategic change of business model: smooth transition towards subscriptions Subscription yoy +48.3% cc¹ +37.6% +13.1% cc¹ +6.7% ▌ Above average growth to €104.1m (previous year: €88.7m) ▌ Accelerated growth in Q2 ▌ Half year figures of 103.4 mEUR in line with expectations H1 2018 Software licenses yoy Recurring revenues yoy +23.6% cc¹ +19.3% Subscription yoy +49.4% cc¹ +41.2% +21.4% cc¹ +16.1% Q2 2018 H1 2018 comments

Internationalization is key: Growth accelerated in Q2 in all regions

Americas +29% cc¹ +15% Europe +11% cc¹ +9% Asia +19% cc¹ +10% UK +31% cc¹ +28% Germany +9% H1 2018 Americas +32% cc¹ +21% Europe +15% cc¹ +13% Asia +27% cc¹ +19% UK +41% cc¹ +33% Germany +11% Q2 2018

¹ Constant currency ² Previous year

Company Presentation

Segment overview: Build segment is key growth driver

Revenues in €m

Company Presentation

Net liquidity situation allows for strategic M&A

¹ Operating cash flow/EBITDA ²Previous year = End of 2017

Company Presentation

02 AEC Industry in Transition

Scott Sports SA, Gibisiez, Swiss

General planner / Architect: Itten+Brechbühl AG, Bern

The world population will grow by 2.5 billion in the next 30 years

In 1810, 2% of the population lived in cities, in 2010 it was 50%

By 2050, most of the world will be living in megacities

We spend more than 20 hours a day in buildings

Buildings consume 40% of the world's energy, and growing

90% of urban growth will happen in developing countries

SEPTEMBER 18 Company Presentation 14

In the same period, manufacturing has increased productivity 760%

SEPTEMBER 18 15

Company Presentation

The AEC Market grows to € 7.4 billion in 2021

End-user-expenditures (EUE) in m€

Source: Cambashi BIM Design Obseratory and internal research

03 Outlook 2018 / Mid -Term Goal 2020

Scott Sports SA, Gibisiez, Swiss

General planner / Architect: Itten+Brechbühl AG, Bern

Mid-term goal 2020: Secure future double-digit growth while maintaining a high EBITDA margin

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

Strong operating profit and additional extraordinary investments of €10 million in 2018

1 Internationalization 2 3 Operational excellence

Key drivers & fields of investments

Next generation

products & solutions

Taking advantage of market leaderships

| Strong US brands support US market entry for European brands and vice versa

Focus on markets

with biggest potential

| USA followed by Europe and Asia

Architecture & structural engineering

Next-generation

products & solutions

| Targeting large customers by combining superior discipline specific products into total BIMworkflow solutions

Collaboration

• | Development of a group-wide UK BIM compliant Common Data Environment (CDE)
• | Huge market potential: Collaboration market size of >€1 bn with a midteens growth rate

Increase efficiency

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

Excellent positioning in dynamically growing market

¹ Source: Cambashi

Company Presentation

Financial Calender

October 30, 2018	Publication of 9 -month report
November 13, 2018	Capital markets day, Frankfurt
November 15, 2018	Morgan Stanley TMT Conference, Barcelona
November 27, 2018	Eigenkapitalforum (equity forum), Frankfurt
December 6, 2018	Berenberg European Conference 2018,

Pennyhill

04

Company Presentation 21 SEPTEMBER 18

P+L statement Q2 2018 comparison

€m	Q2 2018	Q2 2017	% YoY	H1 2018	H1 2017	%YoY
Revenues	113.8	97.7	+16.5%	216.0	194.0	+11.4%
Own work capitalized/other operating income	2.2	1.1	+90.9%	3.1	2.1	+47.1%
Operating income	116.0	98.8	+17.4%	219.2	196.1	+11.8%
Cost of materials/purchased services	-3.4	-3.5	-4.7%	-6.6	-6.3	+5.6%
Personnel expenses	-48.9	-42.1	+16.3%	-94.1	-85.5	+10.0%
Other operating expenses	-32.6	-27.9	+17.0%	-59.5	-52.7	+13.0%
Operating expenses	-84.9	-73.5	+15.6%	-160.2	-144.4	+10.9%
EBITDA	31.1	25.3	+22.6%	59.0	51.7	+14.1%
Margin	27.3%	25.9%		27.3%	26.6%
Depreciation of PPA and amortization	-5.5	-5.4	+1.8%	-10.8	-10.9	-0.7%
t/o PPA	-3.4	-3.4	+0.5%	-6.8	-6.9	-1.8%
EBITA (normalized EBIT)	29.0	23.3	+24.2%	55.0	47.7	+15.2%
EBIT	25.6	19.9	+28.3%	48.2	40.8	+18.0%
Financial result	0.3	-0.2		0.1	-0.4
EBT	25.8	19.7	+31.1%	48.3	40.4	+19.7%
Income taxes	-7.0	-5.6	+24.6%	-12.5	-11.5	+8.8%
Non-controlling interests	-0.7	-0.6		-1.4	-1.2
Net income (group shares)	18.1	13.5	+34.2%	34.5	27.7	+24.5%
EPS in EUR	0.47	0.35	+34.2%	0.90	0.72	+24.5%

Balance sheet – Assets

€m	June 30, 2018	December 31, 2017
Assets
Cash and cash equivalents	85.3	104.0
Trade receivables, net	53.3	41.0
Inventories	0.6	0.6
Other current assets	21.0	13.5
Current assets, total	160.1	159.1
Property, plant and equipment	15.9	14.9
Intangible assets	81.3	86.9
Goodwill	198.6	192.7
Other non-current assets	7.5	7.3
Non-current assets, total	303.3	301.7
Total assets	463.4	460.8

Balance sheet – Equity and liabilities

€m	June 30, 2018	December 31, 2017
Equity and liabilities
Short-term borrowings and current portion of long-term loans	26.0	36.0
Trade payables & accrued liabilities	40.3	43.7
Deferred revenue	91.3	68.1
Other current assets	18.0	18.0
Current liabilities, total	175.6	165.7
Long-term borrowings without current portion	30.9	43.9
Deferred tax liabilities	12.9	13.5
Other non-current liabilities	7.8	9.6
Non-current liabilities, total	51.6	67.1
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	199.3	193.2
Other comprehensive income	-16.3	-18.7
Non-controlling interests	2.2	2.5
Equity, total	236.2	227.9
Total equity and liabilities	463.4	460.8

Company Presentation

Cash flow statement

€m	June 30, 2018	June 30, 2017	% YoY
Cash and cash equivalents at the beginning of the period	104.0	112.5	-7.6%
Cash flow from operating activities	43.4	44.5	-2.5%
Cash flow from investing activities	-8.2	-28.7	-71.3%
t/o CapEX	-5.2	-4.0	+28.3%
t/o Cash paid for business combinations	-3.1	-24.5
Cash flow from financing activities	-54.0	-39.9
t/o Repayments of borrowings	-23.0	-13.0
FX-effects	0.1	-4.9
Cash and cash equivalents at the end of the period	85.3	83.4	+2.2%
Free cash flow1	35.1	15.7
Free cash flow1 (w/o acquisition effects)	38.2	40.2	-5.1%

¹ Operating cash flow – Investing cash flow

Outstanding success in the US: Worldwide largest single AEC market

Company Presentation

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.