Nemetschek SE

Earnings Release • Jul 31, 2014

Q2 2014 Earnings Call

July 31th, 2014

Agenda

Executive summary

Financial data

Outlook 2014

Appendix

Summary Q2 / Half year 2014 (1)

Continued successful revenue development

• Q2 revenues increased to 51.3 mEUR (+14.6%)
• Half-yearly revenues at 102.3 mEUR (+15.6%)
• Design segment: growth driver with an increase of 19.2% in the first half
• Software licenses business back on growth path: plus 17.2% to 48.3 mEUR
• Software services with continued growth of 14.6% to 48.5 mEUR

Revenue increase at home and abroad at high level

• Germany still strong market: plus 16.4% to 41.1 mEUR
• International markets also in growth mode: plus 15.1% to 61.2 mEUR

Profitability improved significantly

• Above-average increase in earnings compared to revenues
• EBITDA grew by 25.5% yoy to 25.6 mEUR in the first half 2014
• EBITDA margin up by 2 percentage points from 23.0% to 25.0%
• Q2 EBITDA up by 29.2% to 12.4 mEUR

Summary Q2 / Half year 2014 (2)

Strong increase of net income and EPS

• Net income (group shares) with significant growth of +38.8% to 14.4 mEUR
• EPS at 1.50 EUR
• Net income w/o PPA at 16.1 mEUR (+22.1%)
• EPS w/o PPA at 1.67 EUR

Cash flow and liquidity situation

• Operating cash flow up by 36.6% to 26.0 mEUR
• Dividend payout in the second quarter of 12.5 mEUR in total
• Net cash increased to 58.7 mEUR (48.6 mEUR at year end 2013)
• All significant key indicators improved
• Solid financial base and high liquidity ensure further organic and inorganic growth

Agenda

Executive summary

Financial data

Outlook

Appendix

Continued growth in revenues in the second quarter

in mEUR

Strong home market (+16.4%)

International markets also in growth mode (+15.1%)

Well-balanced growth of license and service contracts

% of revenues

Software services:

Up by 14.6% to 48.5 mEUR: Recurring revenues secured

Software licenses:

Up by 17.2% to 48.3 mEUR: New customers wins and increasing customer base

High EBITDA margin

• EBITDA increased over proportional compared to revenues
• EBITDA margin up by 2 percentage points to 25.0%

Strong EPS development

in EUR

• Net result up by 38.8% to 14.4 mEUR, EPS at 1.50 EUR
• Net result w/o PPA at 16.1 mEUR (+22.1%); EPS w/o PPA at 1.67 EUR

Segment overview

Margin situation improved

significantly

Highlights

Products / Solutions

New releases of ArchiCAD 18 by Graphisoft and 30 years edition by Allplan with successful implementation of CineRender (rendering engine of Maxon)

buildingSMART

• Nemetschek has joined Strategic Advisory Council to foster better interoperability in the built environment
• To establish an universal collaboration format for building models

Strategic investments

• Investments in young and innovative companies to strengthen market position in 5D (cost and time)
• Hartmann technologies: ice BIM adds the detailed determination of costs and quantities to the NEVARIS solution in the Build segment
• Sablono: start-up company with competence in intelligent BIM scheduling

Net cash development

Operating cash flow	Increased by 36.6% yoy to 26.0 mEUR
CapEx	1.9 mEUR as expected and below last year End of activation period of own worked capitalized
Dividend payment	12.5 mEUR after AGM in May
Net cash	58.7 mEUR (+20.7% compared to year-end 2013)

High cash position enables further growth organically and via acquisitions

Agenda

Executive summary

Financial data

Outlook

Appendix

Outlook 2014 confirmed

• Market conditions Sound macroeconomic indicators; solid outlook for construction markets
• Growth expected for BIM products and solutions
• Strategic market Enhanced market position in the promising BIM 5D market
• positioning Clear focus on AEC market and leading in Open BIM solutions
  • Strong and independent global brands
  • Focus on customer needs
• First half 2014 Sound base for further growth and reaching our guidance
• Healthy balance sheet and high liquidity reserves
• Growth potential Strengthen Nemetschek's position abroad
  • Capable of investing in inorganic growth
  • Driving innovations for an industry whose transformation has just begun

Revenues:	EBITDA margin:
207 - 212 mEUR (+ 11 - 14%)	23 - 25%

IR calendar 2014 and contact

• 31/07/2014 Publication Q2 2014
• 30/10/2014 Publication Q3 2014

Contact: Stefanie Zimmermann Investor Relations +49 89 92793 1229 szimmermann@nemetschek.com

Agenda

Executive summary

Financial data

Outlook

Appendix

P+L statement – Q2 / HY comparison

mEUR	Q2 2014	Q2 2013	% YoY	HY 2014	HY 2013	% YoY
Revenues	51.3	44.8	+14.6%	102.3	88.5	+15.6%
Own work capitalized/ other operating income	0.7	0.7	+8.8%	1.7	2.0	-15.2%
Operating income	52.0	45.4	+14.5%	103.9	90.4	+14.9%
Cost of materials/ purchased services	-1.8	-2.2	-17.6%	-3.8	-4.3	-11.1%
Personnel expenses	-22.5	-19.2	+17.1%	-44.5	-38.4	+15.8%
Other operating expenses	-15.3	-14.4	+6.0%	-30.1	-27.4	+9.9%
Operating costs	-39.6	-35.8	+10.5%	-78.4	-70.1	+11.8%
EBITDA	12.4	9.6	+29.2%	25.6	20.4	+25.5%
Margin	24.2%	2.5%		25.0%	23.0%
Depreciation of PPE and amortization	-2.1	-2.6	-18.9%	-4.3	-5.2	-18.4%
Thereof PPA	-1.0	-1.6		-2.0	-3.1
EBITA (normalized EBIT)	11.3	8.5	+32.0%	23.3	18.3	+27.5%
EBIT	10.3	7.0	+47.3%	21.3	15.2	+40,7%
Financial result	0	0		0	0
EBT	10.3	7.0	+47.5%	21.3	15.2	+40.6%
Income taxes	-2.9	-2.0	+45.5%	-6.1	-4.2	+43.7%
Minorities	0.5	0.1		0.8	0.6
Net income (group shares)	6.9	4.9	+40.7%	14.4	10.4	+38.8%
EPS in EUR	0.72	0.51	+40.7%	1.50	1.08	+38.8%

Balance sheet – Assets

mEUR	June 30, 2014	Dec 31, 2013
Assets
Cash and cash equivalents	58.7	48.6
Trade receivables, net	24.7	21.9
Other current assets	10.4	9.2
Total current assets	93.8	79.6
Property, plant and equipment	5.4	5.3
Intangible assets	27.5	30.9
Goodwill	59.4	60.1
Other non-current assets	2.0	2.5
Total non-current assets	94.2	98.9
Total assets	188.0	178.5

Balance sheet – Equity and liabilities

mEUR	June 30, 2014	Dec 31, 2013
Equity and liabilities
Trade payables & accrued liabilities	19.5	20.1
Deferred revenue	34.5	23.5
Other current liabilities	10.8	10.4
Total current liabilities	64.8	54.0
Deferred tax liabilities	3.4	4.1
Other non-current liabilities	1.4	2.3
Total non-current liabilities	4.8	6.4
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-14.4	-12.8
Retained earnings	80.0	78.3
Minority interests	1.7	1.6
Total equity	118.3	118.2
Total equity and liabilities	188.0	178.5

Cash flow statement

mEUR	June 30, 2014	June 30, 2013	% YoY
Cash at beginning of period	48.6	44.3	+9.6%
Operating cash flow	26.0	19.1	+36.6%
Investing cash flow	-1.8	-2.5	(-26.0)
t/o CapEx	-1.9	-2.5
Financing cash flow	-14.1	-12.1	17.4%
FX-effects	0.1	-0,2
Cash at end of period	58.7	48.7	+20.6%
Free cash flow(1)	24.2	16.6	+45.9%

Disclaimer

This presentation contains forward-looking statements based on the beliefs of Nemetschek AG management. Such statements reflect current views of Nemetschek AG 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 AG does not intend or assume any obligation to update these forward-looking statements.