Nemetschek SE

Earnings Release • Apr 29, 2016

NEMETSCHEK GROUP Financial Results Q1 2016

April 29th, 2016

Nemetschek Group Highlights for Q1 2016 (1)

Nemetschek Group Highlights for Q1 2016 (2)

Significant growth in EPS	Net income (group shares) showed strong growth of 31.6% to 11.0 mEUR  EPS at 0.29 EUR (previous year: 0.22 EUR) Net income w/o PPA increased by 27.5% to 13.0 mEUR EPS (w/o PPA) accordingly at 0.34 EUR
Cash and solid balance sheet	Cash and cash equivalents at 97.2 mEUR  Net liquidity at 21.2 mEUR Equity ratio of 44.5% - leeway for further investments / acquisitions
Annual General Meeting	On May 20, 2016 in Munich  Dividend proposal of 0.50 EUR per share (previous year: 0.40 EUR per share) Dividend increase of 25% yoy Total amount to be distributed of 19.25 mEUR
New Executive Board structure	Announcement of the appointment of Sean Flaherty as Chief Strategy Officer in a full time position  Focus on Group-wide future strategy, globalization and development of advanced technology in the target markets EB will intensify and accelerate the growth – both organic and via M&A
Outlook confirmed	Q1 as a strong basis for the fiscal year 2016  Revenue target range of 319-325 mEUR, up by +12%-14% (thereof organic: +11%-13%) EBITDA target range of 77-80 mEUR

3

Revenues: Excellent start in the fiscal year 2016

Revenues in mEUR

Q1 2016 revenues increased strongly by 16.7% to 77.7 mEUR

Solibri contributed revenues of around 1 mEUR

Organic growth of high 15.6% yoy

International growth accelerated

Revenues split Q1 2016 in %

• Strong growth of 20.8% abroad
• Growth markets:
• Americas
• Asia
• Nordics
• Further growth potential abroad

Software licenses and recurring revenues shows double-digit growth

Revenues split Q1 2016 in %

Software license revenues

• Up by 17.1% to 40.3 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

Recurring revenues*

• Up by 16.1% to 33.3 mEUR
• Increasing visibility

* Software services, subscripton

EBITDA increased stronger than revenues

in mEUR

EBITDA

• EBITDA up by 21.0% to 21.0 mEUR
• EBITDA margin improved to 27.0%

Further investments in

• Internationalization
• New customer segments
• Sales & marketing

Net income and EPS with significant growth of 31.6% yoy

+27.5%

0,34

Segment overview

Design

• Design segment showed again double-digit growth
• EBITDA margin increased to 26.1%
• Further strategic investments to secure future growth (sales, internationalization)
• Growth in all main focus regions

Build

• Very strong revenue growth of 41.2%
• Inorganic effect of Solibri with 1 mEUR revenues
• Organic growth of 34% LFL
• Bluebeam showed over proportional growth (new release of Revu 2016)

Manage

• Continued revenue growth with +13.0%
• Significant improvement of the EBITDA margin
• iXHaus with new customer wins: Potsdamer Platz in Berlin

Media & Entertainment

• Flat development yoy
• Strong previous year with onetime effect
• Investments in new customer segments etc. have impact on margins

Cash flow situation

in mEUR

EBITDA

+21.0% yoy

Operating cash flow

+7.2% to 21.3 mEUR

Investing cash flow

• Capex of 1.9 mEUR
• Previous year: Investment in distribution partner

Cash flow from financing activities

Repayment of bank loan (-4.6 mEUR)

Net liquidity situation

Leeway to grow organically and via acquisitions

Conversion rate**

Strong conversion rate of 102% (previous

** Operating cash flow / EBITDA

Optimistic outlook 2016 confirmed

Current situation		Strong basis due to the excellent Q1 figures
Market conditions		Robust development of construction markets Additional growth coming from trends technologies, mobile solutions etc. Regulations regarding BIM standards			such as Open BIM, 5D, collaboration, platform
Strategic market positioning		Clear focus on AEC market Leading Strong and independent global brands	in Open BIM solutions
Focus on Growth potential/ Investments in new markets, customer segments, sales & marketing Investments Strategically co-operations & acquisitions Healthy balance sheet Capable of investing in organic and in inorganic growth in mEUR FY 2015				internationalization (North/Latin America, Asia, Europe) Forecast 2016*	Organic
		Revenues	285.3	319 - 325 (+12%-14%)	+11%-13%

EBITDA 69.5 77 - 80 -

* USD/EUR plan rate: 1.11

mEUR	Q1 2016	Q1 2015	% YoY
Revenues	77.7	66.6	+16.7%
Own work capitalized/ other operating income	1.2	2.2	-47.7%
Operating income	78.8	68.8	+14.6%
Cost of materials/ purchased services	-2.4	-2.0	+19.2%
Personnel expenses	-35.0	-30.0	+16.7%
Other operating expenses	-20.5	-19.4	+5.3%
Operating costs	-57.9	-51.4	+12.5%
EBITDA	21.0	17.4	+21.0%
Margin	27.0%	26.1%
Depreciation of PPA and amortization	-4.4	-4.1	+6.9%
t/o PPA	-2.7	-2.5	+6.0%
EBITA (normalized EBIT)	19.3	15.8	+22.3%
EBIT	16.6	13.2	+25.4%
Financial result	-0.2	0.0
EBT	16.4	13.3	+23.4%
Income taxes	-4.8	-4.4	+9.0%
Non-controlling interests	-0.5	-0.5
Net income (group shares)	11.0	8.4	+31.6%
EPS in EUR	0.29	0.22*	+31.6%

* for better comparability, earnings per share has been presented after the stock split

mEUR	March 31, 2016	December 31, 2015
Assets
Cash and cash equivalents	97.2	84.0
Trade receivables, net	33.2	29.6
Inventories	0.5	0.5
Other current assets	13.3	11.8
Current assets, total	144.3	125.9
Property, plant and equipment	13.9	13.8
Intangible assets	95.6	100.8
Goodwill	132.3	134.9
Other non-current assets	4.4	4.1
Non-current assets, total	246.3	253.6
Total assets	390.5	379.5

Balance sheet – Equity and liabilities

mEUR	March 31, 2016	December 31, 2015
Equity and liabilities
Short-term borrowings and current portion of long-term loans	18.6	18.6
Trade payables & accrued liabilities	24.8	32.2
Deferred revenue	56.6	42.0
Other current assets	15.7	11.4
Current liabilities, total	115.7	104.1
Long-term borrowings without current portion	57.5	62.1
Deferred tax liabilities	23.4	24.3
Other non-current liabilities	20.2	22.1
Non-current liabilities, total	101.0	108.5
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	127.3	116.3
Other comprehensive income	-7.0	-2.5
Non-controlling interests	2.5	2.1
Equity, total	173.8	166.9
Total equity and liabilities	390.5	379.5

Cash flow statement

mEUR	March 31, 2016	March 31, 2015	% YoY
Cash and cash equivalents at the beginning of the period	84.0	57.0	+47.4%
Cash flow from operating activities	21.3	19.9	+7.2%
Cash flow from investing activities	-1.8	-2.6	-30.4%
t/o CapEX	-1.9	-1.1	+70.7%
t/o Cash paid for business combinations	0.0	-1.4
Cash flow from financing activities	-4.8	-4.8	+0,7%
t/o Repayment of borrowings	-4.6	-3.0
FX-effects	-1.5	4.0
Cash and cash equivalents at the end of the period	97.2	73.5	+32.3%
Free cash flow(1)	19.5	17.3	+12.8%

(1) Operating cash flow - Investing cash flow

Contact

NEMETSCHEK SE

Investor Relation 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 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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