Nemetschek SE

Earnings Release • Nov 12, 2013

Company Presentation Nemetschek Group

November 2013

Agenda

Nemetschek Group: In brief

Strategy

Financial data and Q3 highlights

Nemetschek share

Why invest?

Where we come from

Start

• Company foundation: 50 years ago by Prof. Georg Nemetschek
• Innovation: Computer Aided Design (CAD) software replaced drawing board

Today

• Solutions, innovations and BIM for AECM (Architecture, Engineering, Construction, Management)
• 40 locations around the world
• 11 strong brands

• 300,000 customers

• In 142 countries
• FY 2012 revenues: 175.1mEUR; EBITDA margin: 23%

Strong position as a leading global provider of BIM* software solutions

What makes us so special

Nemetschek only listed company covering complete value chain in AECM and multimedia

• Strong, entrepreneurial brands: Close involvement with customers, speed, excellence, innovation
• Strategic added value: Complementarity, specialization and best in class instead of shared services
• Attractive for potential targets: Integration of different cultures

What we want

Our Vision

• Inspire a better built environment through a highly collaborative AECM community
• Providing leading software solutions for AECM industries
• The expectation never has been, and nor will it be, anything less

Our Mission

• We provide all stakeholders with a creative & high performing workplace
• We offer the most innovative, best tools, workflows and open-collaboration solutions

Our Objective

To become worldwide market leader for Open BIM solutions in AECM

We drive innovation and digitalization for the entire building life cycle

Agenda

Nemetschek Group: In brief

Strategy

• Internationalization
• Industry mega trends
• Innovations

Financial data and Q3 highlights

Nemetschek share

Why invest?

3 pillars for future growth

• Growth factors: Organic and via acquisitions
• Acquisition focus: Strategic fit to close regional and technology gaps
• Currently in process of acquiring a target with strategic technology and solution

International revenue split

YTD 2013 in % of revenues

• Market leader in core markets DACH
• Market position in Americas and Asia established
• Growth potential abroad

Internationalization: Regions on the agenda 1

• Strengthening our position in the Americas, Asia, Northern and Eastern Europe
• Markets with strong growth prospects and increasing demand

• Leverage via co-operations, acquisitions and early-stage occupation

• Where it is all going? BIM Building Information Modeling

• Building Information Modeling Central topic in the entire lifecycle of the building process is today the so-called BIM
• Pioneer of BIM idea Nemetschek has followed this holistic philosophy for almost 30 years and revolutionized the collaboration process in the construction industry
• • Capabilities of BIM 3D visualization and building simulation
  • Intelligent elements as digital prototypes
  • Better understanding of building "behavior"
  • Data management (cost, time management etc.)

Nemetschek: Pioneer of BIM idea

Mega trends: Clear focus on BIM 2

BIM universal approach to collaborative design, realization and operation of buildings

Numerous advantages through BIM for all stakeholders in the building life cycle

• Open BIM allows real collaboration in contrast to a closed platform
• No one excluded, bigger market, more business
• Reflects modern way of working and thinking in the connected world today

Innovations: Example 3

Goal: primary online cloud-based platform for building projects

3 Innovations: Example

IFC, SketchUp, Allplan, Scia, Vectorworks, Graphisoft, Revit …

• The simplest way to store, share, visualize and connect building information
• Version 1.0 has started in November 2013

3 Innovations: Example Cineware by Maxon

In new dimensions!

Red Bull Media House visualized by Cinema 4D

• Leading developer of 3D software for creative industries
• Top customers: BMW, CNN, Sony Pictures, Disney, Vitra, many more
• Well known for powerful features, rock-solid stability, ease-of-use and fast workflow
• Supported by over 150 distributors and resellers in over 80 countries

Cutting edge software solution for visual effects, motion graphics and 3D visualization

3 Innovations: Example Cineware by Maxon

• Strategic partnership since March 2013
• Marketing and development cooperation
• 1st product: CINEWARE Live 3D-Pipeline between After Effects and CINEMA 4D
• Reducing file import and export by 90% huge time savings
• Mega brand Adobe has chosen Maxon as exclusive partner
• Promising cooperation
• Access to new customers and international markets

Agenda

Nemetschek Group: In brief

Strategy

Financial data and Q3 highlights

Nemetschek share

Why invest?

Highlights in the first nine months 2013

Growth factors

• Group revenues up by 5.1%
• Maintenance revenues up by 8.9%
• International markets gained momentum

High profitability

• EBITDA increased by 12.1% to 31.8 mEUR; high EBITDA margin at 23.7%
• Net income (group shares) with strong growth (+24.5%) at 16.2 mEUR
• EPS at 1.68 EUR, EPS w/o PPA at 2.17 EUR

New executive board

• Dr. Tobias Wagner, Interim, as of 29/08/2013
• Viktor Varkonyi (CEO Graphisoft) and Sean Flaherty (CEO Vectorworks) as of 01/11/2013
• New Financial and Operational Executive Manager (CFOO) will be announced soon

New management will drive internationalization, innovations, growth and profitability

Brands and projects (excerpt)

• New management team completed to implement future growth strategy
• Release of Allplan version 2014 in November: Better 3D modeling, comprehensive collaboration and usability, direct connection to cloud-based bim+ platform

• Focus: Planning and development of new releases, expand solution portfolio, strengthening agile development processes, integration of SaaS solutions (Nevaris, bim+), stronger international positioning

• Open cloud based platform for the building industry, providing the simplest way to store, share, visualize and connect building information

• bim+ uses best technologies for web, cloud, apps and mobile devices to help all participants in building processes to build faster and better
• Go-live in November

Brands and projects (excerpt)

New release of BIM software ArchiCAD 17 (26 country-specific versions)

• Foundation of Graphisoft Mexico as South & Central American regional hub
• New versions: BIMx Hyper-Model mobile app, EcoDesigner STAR, BIM Cloud Enterprise solution

New release CAD software Vectorworks 2014: more than 130 improvements, e.g. new BIM tools for architects, increased site design capabilities, better documentation, graphic tools

New version of Adobe After Effects with "lite" version of CINEMA 4D

New CINEMA 4D Release 15 with improved 3D motion graphics, visual effects, painting and rendering software workflow

Solid revenue development

in mEUR

Q3 2013 shows stronger growth with 5.8% than previous quarters

YTD 2013 with 5.1% in range of expectations

Strong growth of maintenance contracts

• Maintenance up by 8.9% yoy leads to higher recurring revenues
• Stable licenses business, up by 1.5% yoy

EBITDA well above previous year

EBITDA increased over proportional compared with revenues

EBITDA margin with 23.7% on high level

Strong EPS development

• Strong increase in earnings
• Net result up by 24.5% to 16.2 mEUR
• EPS at 1.68 EUR (24.5% yoy)
• EPS w/o PPA up by 17.9% at 2.17 EUR

Net cash development

Operating cash flow increased by 8.9% to 28.7 mEUR

• CapEx 3.9 mEUR in line with forecast (~6 mEUR in FY 2013)
• Dividend payment 11.1 mEUR in Q2

Cash position 55.4 mEUR (+25.2% YTD)

High cash position enables further growth organically and via acquisitions

Segment overview

Agenda

Nemetschek Group: In brief

Strategy

Financial data and Q3 highlights

Nemetschek share

Why invest?

Shareholder structure

• Founded: in 1963
• IPO: March 10, 1999
• Number of shares: 9,625,000
• Frankfurt Stock Exchange, Prime Standard
• Bloomberg: NEM GY, Reuters: NEKG.DE
• Shares Nemetschek family: 53.5%
• Freefloat: 46.5 percent
• Current MarketCap: ~ 465 mEUR
• Current TecDAX Ranking: 28/31
• Prof. Georg Nemetschek
• Dr. Ralf Nemetschek
• Alexander Nemetschek
• Ingrid Nemetschek
• Free float

Nemetschek share price performed better than indices

Inclusion in the TecDAX improves visibility

In 2013* +49% +35% +16%

Agenda

Nemetschek Group: In brief

Strategy

Financial data and Q3 highlights

Nemetschek share

Why invest?

Very good reasons

Market conditions • Robust development of construction markets

• Strong growth expected for BIM products and solutions
• Strategic market Clear focus on AECM market
• positioning Leading in Open BIM solutions
  • Strong global brands

Healthy financial • High margin business

• Strong cash generation
• Healthy balance sheet

Growth potential • Integrated process: Design, build and manage buildings, infrastructure

• Strengthen Nemetschek's position abroad
• Capable of investing in inorganic growth
• Driving innovations for an industry whose transformation has just begun
• FY 2013(e): Revenue growth of ~ 6%, EBITDA margin 22 24%

Appendix

Leading in the AEC industry…

Science & Technology Park, Doha (Qatar)

… always at the cutting edge …

…in projects worldwide…

The Faith Lutheran College Secondary School, West of Brisbane (Australia)

Graphisoft

…via Open BIM realized projects…

Arboleda Building, Santo Domingo (Dominican Republic)

Fraunhofer Institut, Saarbrücken (Germany)

…via Open BIM realized projects …

InterContinental Davos Resort & Spa, Switzerland

The Nuclear Advanced Manufacturing Research Centre (NAMRC), Sheffield (UK)

…in completely new dimensions…

Maxon Cinema 4D

Leading 3D software solution for visual effects and motion graphics

Stratos, Red Bull Media House

…with innovative technology

P+L statement – quarterly comparison

mEUR	Q3 2013	Q3 2012	% YoY
Revenues	45.8	43.3	+5.8%
Own work capitalized/ Other operating income	0.7	0.8	-13.6%
Operating income	46.5	44.1	+5.4%
Cost of materials/ purchased services	-2.0	-1.9	+6.9%
Personnel expenses	-19.3	-19.1	+1.4%
Other operating expenses	-13.7	-12.9	+6%
Operating costs	-35.1	-33.9	+3.5%
EBITDA	11.4	10.2	+12%
Margin	25.0%	23.6%
Depreciation of PPE and amortization	-2.8	-3.1	-9%
Thereof PPA	-1.8	-1.8
EBIT	8.6	7.1	+21.1%
Financial result	0.0	-0.1
EBT	8.6	7.0	+22.5%
Income taxes	-2.2	-2.0	+9.1%
Minorities	-0.3	-0.3
Net income (group shares)	6.1	4.7	+30.3%
EPS in EUR	0.64	0.49

P+L statement – 9 months comparison

mEUR	9M 2013	9M 2012	% YoY
Revenues	134.2	127.7	+5.1%
Own work capitalized/ Other operating income	2.7	3.0	-10.6%
Operating income	136.9	130.7	+4.8%
Cost of materials/ purchased services	-6.3	-5.5	+14.2%
Personnel expenses	-57.7	-56.8	+1.6%
Other operating expenses	-41.1	-40.0	+2.8%
Operating costs	-105.1	-102.3	+2.7%
EBITDA	31.8	28.4	+12.1%
Margin	23.7%	22.2%
Depreciation of PPE and amortization	-8.4	-8.7	-2.6%
Thereof PPA	-5.3	-5.3
EBIT	23.4	19.7	+18.6%
Financial result	0.0	-0.6
EBT	23.4	19.1	+22.7%
Income taxes	-6.4	-5.1	+24.9%
Minorities	-0.8	-0.9
Net income (group shares)	16.2	13.0	+24.5%
EPS in EUR	1.68	1.35

Balance sheet – Assets

mEUR	Sep 30, 2013	Dec 31, 2012
Assets
Cash and cash equivalents	55.4	44.3
Trade receivables, net	21.7	21.4
Other current assets	10.2	8.7
Total current assets	87.4	74.4
Tangible assets	4.9	5.0
Intangible assets	26.7	31.4
Goodwill	52.8	52.6
Other non-current assets	2.2	1.6
Total non-current assets	86.5	90.6
Total assets	173.9	165.0

Balance sheet – Equity and liabilities

mEUR	Sep 30, 2013	Dec 31, 2012
Equity and liabilities
Short-term loans	0.0	0.0
Trade payables & accrued liabilities	17.3	19.0
Deferred revenue	28.8	21.6
Other current liabilities	7.6	6.3
Total current liabilities	53.7	46.9
Deferred tax liabilities	1.6	1.7
Other non-current liabilities	2.0	4.4
Total non-current liabilities	3.5	6.1
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-4.2	-3.9
Retained earnings	68.7	63.6
Minority interests	1.2	1.3
Total equity	116.7	112.0
Total equity and liabilities	173.9	165.0

Cash flow statement

mEUR	30/09/2013	30/09/2012	% YoY
Cash at beginning of period	44.3	33.5	+32.2%
Operating cash flow	28.7	26.3	+8.9%
Investing cash flow	-3.9	-4.4	-11.4%
t/o CapEx	-3.9	-3.9
Financing cash flow	-13.1	-18.0	-27.2%
FX-effects	-0.5	0.4
Cash at end of period	55.4	37.8	+46.8%
Free cash flow(1)	24.8	22.0	+13.0%

IR calendar 2013 and contact

• 31/10 Publication of Q3 Report
• 11-12/11 Equity Forum Frankfurt
• 05/12 Berenberg European Conference, London

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

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.