Nemetschek SE

Earnings Release • Jul 28, 2017

NEMETSCHEK GROUP Financial Results Q2 / H1 2017

July 28, 2017

Nemetschek Group Highlights for Q2 / H1 2017 (1)

Double-digit revenue growth in H1 2017	Revenues in first half at upper end of guidance 2017 H1 revenues: Strong increase of 20.1% to 194.0 mEUR Organic growth of 14.8% (inorganic effects: dRofus (2.6 mEUR) and Design Data (5.7 mEUR))  Q2 revenues: Up by 16.5% to 97.7 mEUR Organic growth of 11.6% Challenging Q2: High comparison level of previous year and release shift of one major brand in Design Segment from Q2 to second half 2017 will lead to revenue shift in H2
Strong revenue increase abroad	Revenues abroad: Up by 24.6% to 136.7 mEUR Revenues share outside of Germany at 70.5%  Higher footprint in the very competitive US market with revenues share of around 29% Growth regions: Americas, Asia, Scandinavia
Growth driver: Recurring revenues	Recurring revenues: Strong growth of 29.1% to 88.7 mEUR  Share of recurring revenues at high 45.7% Software licenses: Positive development with 13.0% growth to 96.9 mEUR License revenue share of 50.0%

Nemetschek Group Highlights for Q2 / H1 2017 (2)

Positive revenue development continued in Q2 2017

in mEUR

161,5 194,0 HY 2016 HY 2017

• Organic growth of 11.6% yoy in Q2 Organic growth of 14.8% yoy in H1
• Inorganic effects:
  • Design Data: 5.7 mEUR
  • dRofus: 2.6 mEUR

International growth accelerated

Revenues split H1 2017 in %

Regional facts

• Strong growth abroad of 24.6%
• Growth markets:
• Americas
• Asia
• Nordic
• Continued success in the US as the biggest and most competitive market worldwide
• Positive revenue development also in Germany with +10.6%

High share and strong growth of recurring revenues

Revenues split H1 2017 in %

Recurring revenues*

• High growth of 29.1% to 88.7 mEUR
• High recurring revenue share of 45.7% leads to higher stability

Software license revenues

• Up by 13.0% to 96.9 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

^* Software services, rental models (Subscriptions, SaaS)

EBITDA margin on high level

in mEUR

* EBITDA w/o 1.9 mEUR positive one-time effect in Q2 2016

EBITDA of the previous year 2016 is shown with and w/o the positive one-time effect of 1.9 mEUR

Net Income and EPS with solid growth

* Net income and EPS w/o 1.9 mEUR positive one-time effect

8

0,72

All segments with double-digit growth rates

Design

• Revenue growth in H1: 13.1% (organic growth of 10.7%)
• Challenging Q2: High previous year level and release shift of one major brand from Q2 in H2 2017
• EBITDA margin H1 on previous year level

Build

• Revenue growth of 41.6% in H1 (organic growth of 27.4%)
• EBITDA margin H1 on previous year level

Manage

• H1 revenue growth of 17.5% EBITDA margin improved
• slightly year on year

Media & Entertainment

• H1 revenue growth of 10.1%
• Planned investments have impact on margins

Cash flow situation

in mEUR

* End of FY 2016

** Operating cash flow / EBITDA

EBITDA

+13.4% yoy

Operating cash flow

• +28.4% yoy
• Previous year: One-time effects of 3.5 mEUR in trade receivables resulting from later customer payments (July 2016) – adjusted growth of 16.8%

Investing cash flow

• Capex of 4.0 mEUR
• Acquisition of dRofus (24.5 mEUR)

Cash flow from financing activities

• Repayment of bank loan (-13.0 mEUR)
• Dividend payment (-25.0 mEUR)

Conversion rate**

86% (previous year: 76%)

Optimistic outlook 2017 confirmed

Market conditions	Digitalization		and IT spending will drive the use of software solutions in the AEC market BIM market is expected to grow at a remarkable rate owing regulations mandating the adoption of BIM software for construction projects	to supportive government
Strategic market positioning	Clear focus on AEC market Leading player of Network of industry leaders	Open BIM solutions
Growth potential/ Investments	Focus on internationalization (North America, Asia, Europe) Investments in cross-brand strategic projects, new regional markets and customer segments, sales & marketing and innovation Strategically co-operations & acquisitions Healthy balance sheet - capable of investing in organic and in inorganic growth
Guidance 2017 confirmed	Revenues: Focus EBITDA: Double digit growth acquired brands in mEUR Revenues EBITDA	on topline with double FY 2016 337.3 86.1**	digit growth rates in the mid-teens High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding Forecast 2017* 395 – 401 (+17% - +19%) 100 – 103 (+16 - +20%)	Organic +13% - +15%

*USD/EUR plan rate: 1.09

** EBITDA w/o positive one-time effect of 1.9 mEUR

P+L statement Q2 / FY comparison

mEUR	Q2 2017	Q2 2016	% YoY	6M 2017	6M 2016	% YoY
Revenues	97.7	83.8	+16.5%	194.0	161.5	+20.1%
Own work capitalized/other operating income	1.1	3.5	-66.9%	2.1	4.6	-53.9%
Operating income	98.8	87.3	+13.2%	196.1	166.2	+18.0%
Cost of materials / purchased services	-3.5	-2.6	+34.1%	-6.3	-5.0	+24.7%
Personnel expenses	-42.1	-36.2	+16.2%	-85.5	-71.2	+20.0%
Other operating expenses	-27.9	-23.9	+16.8%	-52.7	-44.3	+18.8%
Operating expenses	-73.5	-62.7	+17.2%	-144.4	-120.6	+19.8%
EBITDA	25.3	24.6	+3.1%	51.7	45.6	+13.4%
Margin	25.9%	29.3%		26.6%	28.2%
EBITDA (w/o one-time effect)	25.3	22.7	+11.7%	51.7	43.7	+18.3%
Margin (w/o one-time effect)	25.9%	27.1%		26.6%	27.0%
Depreciation of PPA and amortization	-5.4	-4.4	+22.9%	-10.9	-8.8	+23.3%
t/o PPA	-3.4	-2.7	+27.2%	-6.9	-5.4	+28.6%
EBITA (normalized EBIT)	23.3	22.9	+2.1%	47.7	42.1	+13.3%
EBIT	19.9	20.2	-1.3%	40.8	36.8	+11.0%
Financial result	-0.2	-0.3		-0.4	-0.5
EBT	19.7	19.9	-1.1%	40.4	36.3	+11.3%
Income taxes	-5.6	-6.2	-10.0%	-11.5	-11.0	+4.3%
Non-controlling interests	-0.6	-0.6		-1.1	-1.0
Net income (group shares)	13.5	13.1	+2.6%	27.7	24.2	+14.5%
EPS in EUR	0.35	0.34	+2.6%	0.72	0.63	+14.5%
Net income (group shares w/o one-time effect)	13.5	11.8	+14.2%	27.7	22.9	+21.1%
EPS in EUR (w/o one-time effect)	0.35	0.31	+14.2%	0.72	0.59	+21.1%

mEUR	June 30, 2017	December 31, 2016
ASSETS
Cash and cash equivalents	83.4	112.5
Trade receivables, net	44.8	38.8
Inventories	0.5	0.6
Other current assets	16.2	16.0
Current assets, total	145.0	167.9
Property, plant and equipment	14.1	14.3
Intangible assets	87.6	89.7
Goodwill	184.9	177.2
Other non-current assets	6.2	5.7
Non-current assets, total	292.8	286.8
Total assets	437.7	454.7

Balance sheet – Equity and liabilities

mEUR	June 30, 2017	December 31, 2016
EQUITY AND LIABILITIES
Short-term borrowings and current portion of long-term loans	26.1	26.0
Trade payables & accrued liabilities	34.9	40.7
Deferred revenue	72.9	55.3
Other current assets	29.0	24.1
Current liabilities, total	163.0	146.1
Long-term borrowings without current portion	57.1	70.2
Deferred tax liabilities	19.1	20.6
Other non-current liabilities	7.9	15.7
Non-current liabilities, total	84.1	106.5
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	146.3	144.0
Other comprehensive income	-9.5	4.4
Non-controlling interests	2.9	2.8
Equity, total	190.6	202.1
Total equity and liabilities	437.7	454.7

mEUR	June 30, 2017	June 30, 2016	% YoY
Cash and cash equivalents at the beginning of the period	112.5	84.0	+34.0%
Cash flow from operating activities	44.5	34.6	+28.4%
Cash flow from investing activities	-28.7	-3.0
t/o CapEX	-4.0	-3.2	+26.0%
t/o Cash paid for business combinations	-24.5	0.0
Cash flow from financing activities	-39.9	-30.1	+32.9%
t/o Dividend payments	-25.0	-19.3	+30.0%
t/o Repayments of borrowings	-13.0	-9.2
FX-effects	-4.9	-0.7
Cash and cash equivalents at the end of the period	83.4	84.9	-1.8%
Free cash flow(1)	15.7	31.6	-50.2%
Free cash flow(1) (w/o acquisition effects)	40.2	31.6	+27.2%

(1) Operating cash flow – Investing cash flow

17

Architects: Patterson Associates Architects | Image: Patrick Reynolds | Realized with GRAPHISOFT

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Disclaimer

This presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Such statements reflect 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.