Nemetschek SE

Earnings Release • Oct 31, 2013

Q3 2013 Conference Call

Dr. Tobias Wagner 31 October 2013

Executive summary

Financial data

• Brands and projects
• Outlook

Highlights in the first nine months 2013

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

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 management will drive internationalization, innovations, growth and profitability

Executive summary

Financial data

• Brands and projects
• Outlook

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

International revenue split

YTD 2013 in % of revenues

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

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)

mEUR	9M 2012	9M 2013	% YoY
EBITDA	28.4	31.8	+12.1%		24,8	-11,1	-2,6
Operating cash flow	26.3	28.7	+8.9%
Conversion rate*	93%	90%		44,3				55,4
Investing cash flow	-4.4	-3.9	-11.4%
Free cash flow	22.0	24.8	+13.0%	Net cash 2012	Free cash flow 9M	Dividend payout	Other	Net cash 9M 2013
					2013	2013

High cash position enables further growth organically and via acquisitions

Segment overview

Executive summary

Financial data

Brands and projects

Outlook

Brands and projects (excerpt)

Highlights

New management team completed to implement future growth strategy

Next steps

• 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

Highlights

• 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

Next steps

Go-live in November

Brands and projects (excerpt)

Highlights

• New release of BIM software ArchiCAD 17 (26 country-specific versions)
• Foundation of Graphisoft Mexico as South & Central American regional hub

Next steps

New versions: BIMx Hyper-Model mobile app, EcoDesigner STAR, BIM Cloud Enterprise solution

Highlights

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

Highlights

• 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

Executive summary

Financial data

Brands and projects

Outlook

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

Outlook

• Market conditions Robust development of construction markets • Strong growth expected for BIM products and solutions
• Strategic market Clear focus on AECO 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%

IR-calendar 2013 and contact

• 31/10 Publication of Q3 Report
• 11-13/11 Equity Forum Frankfurt
• 05/12 Berenberg European Conference, London

Contact:

Stefanie Zimmermann

Investor Relations +49 89 92793 1229 szimmermann@nemetschek.com

Executive summary

Financial data

Brands and projects

Outlook

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%

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.