Nemetschek SE

Earnings Release • Apr 28, 2017

NEMETSCHEK GROUP Financial Results Q1 2017

April 28, 2017

Nemetschek Group Highlights for Q1 2017 (1)

Dynamic revenue growth in Q1 2017	Q1 revenues increased strongly by 24.0% to 96.3 mEUR  Inorganic effects – dRofus (1.3 mEUR) and Design Data (3.1 mEUR) Organic growth of high 18.3%
Strong revenue increase abroad	Revenues abroad increased significantly by 26.5% to 67.5 mEUR  Revenue share outside of Germany at 70.1%, Americas at 27.0% Growth regions: Americas, Asia, Nordic Domestic revenues also in growth mode with +18.5% to 28.8 mEUR
Growth driver: Recurring revenues	revenues up by 31.5% to 43.8 mEUR Recurring  Recurring revenue share at high 45.4% Positive revenue development of software licenses: +20.4% to 48.5 mEUR Both, high recurring revenues and new customers secured
EBITDA grew stronger than revenues – profitability increased	EBITDA up by 25.5% yoy to 26.3 mEUR EBITDA margin increased from 27.0% to 27.4%  No activation of R&D costs Strategic investments to secure future growth: Internationalization, cross-brand developments, innovations

Nemetschek Group Highlights for Q1 2017 (2)

Significant growth of net income and EPS		Net income (group shares) increased significantly by 28.6% to 14.2 mEUR EPS up to 0.37 EUR (previous year: 0.29 EUR) Net income w/o PPA increased by 28.3% to 16.7 mEUR EPS (w/o PPA) accordingly at 0.43 EUR
Cash and solid balance sheet		Cash and cash equivalents at 101.4 mEUR despite dRofus acquisition Net liquidity at 11.7 mEUR Equity ratio of 45.2% - leeway for further investments / acquisitions
Dividend		Dividend proposal of 0.65 EUR per share (previous year: 0.50 EUR per share) Dividend increase of 30% yoy Total amount to be distributed of 25.025 mEUR Proposal to the AGM on June 1, 2017 in Munich
Outlook confirmed		Q1 as a very good basis for the fiscal year 2017 Continuing to be the fastest growing software company in Europe Revenue target range: 395 - 401 mEUR, increase of +17% - +19% Thereof organic: +13% - +15%, inorganic effects through dRofus and Design Data EBITDA target range: 100 - 103 mEUR (+16 - +20%) High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

3

Revenues: Excellent and dynamic start in the fiscal year 2017

Q1 2017

• Revenues up by 24.0% to 96.3 mEUR
• Acquired companies dRofus and Design Data contributed around 4.4 mEUR
• Organic growth of 18.3% yoy

International growth accelerated

Revenues split Q1 2017 in %

Regional facts

• Strong growth abroad of 26.5%
• 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 +18.5%

High share of recurring revenues

Revenues split Q1 2017 in %

Recurring revenues*

• High growth of 31.5% to 43.8 mEUR
• High recurring revenue share of 45.4% leads to higher stability

Software license revenues

• Up by 20.4% to new high of 48.5 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

* Software services, rental models (Subscriptions, SaaS)

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EBITDA increased stronger than revenues

in mEUR

EBITDA

Up by 25.5% to 26.3 mEUR

EBITDA margin

• EBITDA margin improved to 27.4%
• High EBITDA margin despite strategic investments to secure future growth and lower EBITDA margins of strongly expanding acquired brands

Net income and EPS with significant growth of 28.6% yoy

Segment overview

Design

• Double-digit revenue growth rate of +18.0%
• Inorganic effect of dRofus with 1.3 mEUR revenues
• Organic growth of +15.4%
• Positive development in all brands and regions
• EBITDA margin increased to 28.3%

Build

• Very strong revenue growth of +42.9%
• Inorganic effect of Design Data with 3.1 mEUR revenues
• Organic growth of +26.9%
• Bluebeam and Solibri are strongest growing brands
• Further investments to secure high growth rates in the future

Manage

• Continued revenue growth with +20.3%
• Slight improvement of the EBITDA margin

Media & Entertainment

• Positive revenue development with +13.2%
• High profitability but further investments in future growth

9

Cash flow situation

in mEUR

EBITDA

+25.5% yoy

Operating cash flow

• Only slight increase because of earn-out component of Bluebeam (5 mEUR)
• Adjusted operating cash flow (w/o earn-out) would have been at 26.9 mEUR (+26.3% yoy)

Investing cash flow

• Capex of 1.2 mEUR
• Acquisition of dRofus (24.5 mEUR)

Cash flow from financing activities

Repayment of bank loan (-6.5 mEUR)

Net liquidity situation despite dRofus acquisition

Leeway to grow organically and via acquisitions

Conversion rate**

Strong conversion rate of 83% (previous year: 102%)

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 confirmend	Revenues: Focus on topline with double digit growth rates in the mid-teens EBITDA: Double digit growth High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands in mEUR FY 2016 Forecast 2017* Organic
		Revenues	337.3	395 – 401 (+17% - +19%)	+13% - +15%
		EBITDA	86.1**	100 – 103 (+16 - +20%)

*USD/EUR plan rate: 1.09

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

P+L statement Q1 / FY comparison

mEUR	Q1 2017	Q1 2016	% YoY
Revenues	96.3	77.7	+24.0%
Own work capitalized/other operating income	1.0	1.2	-15.4%
Operating income	97.3	78.8	+23.4%
Cost of materials/ purchased services	-2.7	-2.4	+14.3%
Personnel expenses	-43.4	-35.0	+24.0%
Other operating expenses	-24.8	-20.5	+21.2%
Operating costs	-70.9	-57.9	+22.6%
EBITDA	26.3	21.0	+25.5%
Margin	27.4%	27.0%
Depreciation of PPA and amortization	-5.5	-4.4	+23.8%
t/o PPA	-3.5	-2.7	+30.1%
EBITA (normalized EBIT)	24.4	19.3	+26.5%
EBIT	20.9	16.6	+26.0%
Financial result	-0.2	-0.2
EBT	20.7	16.4	+26.4%
Income taxes	-5.9	-4.8	+23.0%
Non-controlling interests	-0.6	-0.5
Net income (group shares)	14.2	11.0	+28.6%
EPS in EUR	0.37	0.29	+28.6%

mEUR	March 31, 2017	December 31, 2016
ASSETS
Cash and cash equivalents	101.4	112.5
Trade receivables, net	47.3	38.8
Inventories	0.5	0.6
Other current assets	18.6	16.0
Current assets, total	167.8	167.9
Property, plant and equipment	13.9	14.3
Intangible assets	94.6	89.7
Goodwill	192.2	177.2
Other non-current assets	6.1	5.7
Non-current assets, total	306.8	286.8
Total assets	474.6	454.7

Balance sheet – Equity and liabilities

mEUR	March 31, 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	33.8	40.7
Deferred revenue	75.2	55.3
Other current assets	31.7	24.1
Current liabilities, total	166.8	146.1
Long-term borrowings without current portion	63.6	70.2
Deferred tax liabilities	22.1	20.6
Other non-current liabilities	7.8	15.7
Non-current liabilities, total	93.4	106.5
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	158.1	144.0
Other comprehensive income	1.9	4.4
Non-controlling interests	3.2	2.8
Equity, total	214.3	202.1
Total equity and liabilities	474.6	454.7

mEUR	March 31, 2017	March 31, 2016	% YoY
Cash and cash equivalents at the beginning of the period	112.5	84.0	+34.0%
Cash flow from operating activities	21.9	21.3	+2.7%
Cash flow from investing activities	-25.6	-1.8
t/o CapEX	-1.2	-1.9	-38.9%
t/o Cash paid for business combinations	-24.5	0.0
Cash flow from financing activities	-6.9	-4.8	+42.3%
t/o Repayments of borrowings	-6.5	-4.6
FX-effects	-0.5	-1.5
Cash and cash equivalents at the end of the period	101.4	97.2	+4.3%
Free cash flow(1)	-3.7	19.5

(1) Operating cash flow – Investing cash flow

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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.

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