Nemetschek SE

Quarterly Report • Apr 30, 2024

INNOVATIVE / ETHICAL / TRUSTWORTHY AI built by Nemetschek

N E M E T S C H E K S E QUARTERLY STATEMENT AS OF MARCH 31

AI

Key Figures

NEMETSCHEK GROUP

in EUR million	3 months 2024	3 months 2023	Change
Operative figures
Revenues	223.9	204.6	9.4%
- thereof software licenses	29.8	47.6	–37.5%
- thereof recurring revenues	185.9	149.4	24.5%
- subscription + SaaS (as part of the recurring revenues)	106.3	63.8	66.5%
EBITDA	68.3	61.0	11.9%
as % of revenue	30.5%	29.8%
EBIT	54.7	46.6	17.3%
as % of revenue	24.4%	22.8%
Net income (group shares)	42.5	36.3	17.4%
per share in €	0.37	0.31
Net income (group shares) before purchase price allocation	47.3	41.7	13.3%
per share in €	0.41	0.36
Cash flow figures
Cash flow from operating activities	84.5	74.9	12.8%
Cash flow from investing activities	–7.8	–6.0
Cash flow from financing activities	–7.4	–29.9
Free cash flow	76.7	68.9	11.4%
Free cash flow before M&A investments	82.1	72.5	13.3%
Balance sheet figures
Cash and cash equivalents*	339.5	268.0	26.6%
Net liquidity/net debt*	334.4	261.2	28.1%
Balance sheet total*	1,378.9	1,274.3	8.2%
Equity ratio in %*	60.2%	61.4%
Headcount as of balance sheet date	3,433	3,436	–0.1%
Share figures
Closing price (Xetra) in €	91.54	63.28
Market Capitalization	10,572.87	7,308.84

* Presentation of previous year as of December 31, 2023.

Interim Group Management Report

Report on the earnings, financial and asset situation

Results of Operations

Successful start to the year in Q1 2024: Revenue growth of 9.4% with an EBITDA margin of 30.5%

Group revenues increased by 9.4% to EUR 223.9 million in the first three months of 2024 (same period of previous year: EUR 204.6 million) while transitioning to subscription and SaaS models. Adjusted for currency effects, i.e. on the basis of constant exchange rates, revenue growth would have amounted to 10.3%.

EBITDA increased by 11.9% to EUR 68.3 million (same period of previous year: EUR 61.0 million). The EBITDA margin increased from 29.8% in the first three months of 2023 to 30.5% as of March 31, 2024.

Revenue development

Revenues by business type – Subscription and SaaS remain growth driver

All in all, the first three months of 2024 saw an encouraging revenue development. Simultanously, the Group made further progress toward its strategic objective of increasing the share of recurring revenues – especially subscription and SaaS – in total revenues. In total, recurring revenues rose to EUR 185.9 million (same period of previous year: EUR 149.4 million), corresponding to a growth of 24.5% (currency-adjusted: 25.4%). Subscription and SaaS revenues alone increased significantly by a further 66.5% (currency-adjusted: 68.0%), from EUR 63.8 million in the same period of the previous year to EUR 106.3 million. The ARR increased by 24.5% in Q1 (adjusted for currency effects: 25.4%) to EUR 743.6 million, which was significantly stronger than the total revenue growth. Consequently the share of recurring revenues improved by 10 percentage points from 73.0% in the first three months of 2023 to 83.0% this year. This development is in line with the strategic objective of expanding the proportion of recurring revenues.

Revenues from software licenses amounted to EUR 29.8 million in the first three months of the financial year, a decline of –37.5% compared to the same period of the previous year (EUR 47.6 million). Adjusted for currency effects, the decrease amounted to –36.9%. The share of total revenues attributable to revenues from software licenses declined signficantly to 13.3% (same period of previous year: 23.3%).

Revenues by region – Internationalization

The increasingly global alignment of the Group is an important factor in its diversification. In the first three months of 2024, domestic revenues increased by 5.7% to EUR 50.2 million (same period of previous year: EUR 47.5 million). In its foreign markets, the Nemetschek Group generated revenues of EUR 173.8 million (same period of previous year: EUR 157.1 million), corresponding to an increase of 10.6% compared to the previous year period. Foreign markets accounted for 77.6% of total revenues in the first three months of 2024 (same period of previous year: 76.8%).

Overview of segments

The Design segment, whose business activities are mainly focused on Europe, generated revenues of EUR 115.6 million in the first three months of 2024 (same period of previous year: EUR 106.3 million). This corresponds to a growth of 8.7% (currency-adjusted: 9.3%). The difficult market environment, marked especially by the higher interest rate level and the geopolitical challenges in Europe, still leads to longer sales cycles among customers. The main growth drivers were revenues from subscriptions and SaaS models, which increased by around 65%. The accounting-related dampening effects of the accelerated transition to subscription and SaaS are expected to have a stronger impact in the coming quarters in line with planning. Same time it will have a positive impact on the further increase in recurring revenues.

EBITDA grew by 18.0%, from EUR 30.0 million in the first three months of 2023 to EUR 35.5 million in the first three months of 2024. This led to a margin of 30.7%, (same period of previous year: 28.3%). As of January 1, 2024, the Digital Twin business unit, including thedRofus brand, was transferred from the Manage segment to the Design segment and will be consolidated there.

In the Build segment, which primarily targets construction companies in the USA and the German-speaking countries, Bluebeam's transition to subscription and SaaS models continued to be successful and as planned. The majority of new customers are opting for the high-value subscription and SaaS packages with more extensive cloud features. The share of this revenue category more than doubled from 29.4% in Q1 2023 to more than 65% in the current quarter. Revenue increased by 9.0% in the first three months of 2024 (currency-adjusted: 10.0%) to EUR 67.5 million (same period of previous year: EUR 62.0 million). The transition of the business model will have a particularly positive impact on growth in Q4, as the prior-year comparison basis in the final quarter does not include license sales for the first time.

EBITDA decreased by –3.8% to EUR 21.0 million in the first three months of 2024 (same period of previous year: EUR 21.8 million). At 31.1%, the EBITDA margin in the first three months of 2024 was below the previous year's level of 35.2% as expected.

In the Manage segment, which focuses on European commercial construction, the market situation stabilized slightly, even though the volume of investments by facility managers remains below pre-crisis levels. Revenues totaled to EUR 12.5 million in the first three months of 2024. This represents a growth of 9.9% (currency-adjusted: 9.9%) compared to the first three months of 2023, when revenues amounted to EUR 11.4 million.

Segment EBITDA amounted to EUR 0.8 million in the first three months of 2024 (same period of previous year: EUR –0.3 million), with the result that the margin increased from –2.7% in the first three months of 2023 to 6.6% in the first three months of 2024.

In the Media segment the growth re-accelerated in Q1. Revenues increased by 9.7% (currency-adjusted: 10.9%) to EUR 29.4 million (same period of previous year: EUR 26.8 million) in the first three months of 2024.

Segment EBITDA amounted to EUR 11.0 million in the first three months of 2024 (same period of previous year: EUR 9.4 million). Accordingly, the EBITDA margin increased from 35.2% in the first three months of 2023 to 37.4% in the first three months of 2024.

Earnings performance – Earnings per share at EUR 0.37

Operating expenses increased by 8.0% in the first three months of 2024 from EUR 159.8 million to EUR 172.6 million. The cost of materials included in this item increased to EUR 9.1 million (same period of previous year: EUR 7.8 million). Personnel expenses rose by 6.1% from EUR 88.8 million in the first three months of 2023 to EUR 94.2 million. Other expenses increased by 14.0% from EUR 48.9 million to EUR 55.7 million. Depreciation and amortization of fixed assets declined by –5.6% from EUR 14.4 million to EUR 13.5 million.

In the first three months of 2024 the net income (group shares) increased by 17.4% to EUR 42.5 million (same period of previous year EUR 36.3 million). The corresponding earnings per share amounted to EUR 0.37 (same period of previous year: EUR 0.31). Adjusted for amortization from the purchase price allocation after tax, net income increased by 13.3% to EUR 47.3 million (same period of previous year: EUR 41.7 million), resulting in earnings per share of EUR 0.41 (same period of previous year: EUR 0.36).

The Group's tax rate amounted to 20.8% in the first three months of 2024 (same period of previous year: 20.2%).

Financial position

Development of cash flow – Operating cash flow at EUR 84.5 million – Cash and cash eqivalents at EUR 339.5 million

Cash flow from operating activities was mainly used for investments in fixed assets and start-ups, repayments of loans and repayments of lease liabilities.

The Nemetschek Group generated a cash flow from operating activities of EUR 84.5 million in the first three months of 2024 (same period of previous year: EUR 74.9 million).

Cash flow from investing activities amounted to EUR –7.8 million in the first three months of 2024 (same period of previous year: EUR –6.0 million) and includes payments for investments in start-ups in the amount of EUR 5.4 million (same period of previous year: EUR 3.3 million) and capital expenditures of EUR 2.4 million (same period of previous year: EUR 2.6 million).

The cash flow from financing activities amounted to EUR –7.4 million (same period of previous year: EUR –29.9 million) and primarily consisted of repayments of bank loans of EUR 1.9 million (same period of previous year EUR 27.1 million) and payments of lease liabilities in the amount of EUR 4.4 million (same period of previous year EUR 4.1 million). In the previous year these payments were offset by cash inflows from bank loans in the amount of EUR 2.5 million.

As at March 31, 2024, the Nemetschek Group held cash and cash equivalents of EUR 339.5 million (December 31, 2023: EUR 268.0 million).

Equity ratio at 60.2%

The balance sheet total increased from EUR 1,274.3 million to EUR 1,378.9 million compared to December 31, 2023. Equity amounted to EUR 830.7 million (December 31, 2023: EUR 781.9 million). The increase in equity was in particular driven by the net income for the year (EUR 43.3 million) as well as by the currency-related increase of Group assets (EUR 5.0 million).

The equity ratio reached 60.2% at the end of the frist quarter 2024 compared to 61.4% as of December 31, 2023.

Significant events after the interim reporting period

On April 12, 2024, the Nemetschek Group entered a new revolv ing credit facility (RCF) agreement with a consortium of eight national and international banks with a total volume of EUR 500.0 million. The facility has a term of five years, that can optionally be extended by up to two years and contains an option to increase the volume by up to EUR 300.0 million. The syndicated loan, that can be used for general corporate purposes, including refinanc ing of existing indebtedness and M&A, replaces the majority of the existing credit facilities and strengthens the stable foundation of the Group financing.

There were no further significant events after the end of the inter im reporting period.

Employees

As of March 31, 2024, the Nemetschek Group employed a staff of 3,433 (March 31, 2023: 3,436), a slight decrease of –0.1% on the prior-year quarter. In the following quarters, the Nemetschek Group intends to further increase the number of employees in order to ensure future growth.

Report on opportunities and risks

The Group management report for the year ended December 31, 2023 describes the opportunities and risks that could have a significant impact on the net assets, financial posi tion, and results of operations of the Nemetschek Group. It also describes the features of the risk management system. During the first three months of 2024, the overall risk situation for the company did not change significantly compared with December 31, 2023.

Report on forecasts and other state ments on expected development

Following the successful start to the year, the Executive Board confirms the targets already communicated for the current finan cial year 2024. The currency-adjusted revenue growth is expect ed to be in the range of 10 to 11%. The growth in annual recurring revenue (ARR) is forecasted to grow by around 25%, so signifi cantly faster than Group revenues. The share of recurring revenue as a percentage of total revenue is expected to increase further to around 85% in 2024. The EBITDA margin is forecasted to be in the range of 30% to 31%.

The guidance is based on the assumption that the global macro economic or industry-specific conditions will not deteriorate sig nificantly in 2024. Furthermore, no additional potential negative effects from the current conflict in the Middle East and the ongo ing war in Ukraine are reflected in the outlook.

Consolidated statement of comprehensive income

for the period from January 1 to March 31, 2024 and 2023

STATEMENT OF COMPREHENSIVE INCOME

Thousands of €	3 months 2024	3 months 2023
Revenues	223,949	204,628
Other income	3,379	1,813
Operating income	227,329	206,440
Cost of goods and services	–9,114	–7,795
Personnel expenses	–94,234	–88,799
Depreciation of property, plant and equipment and amortization of intangible assets	–13,550	–14,354
thereof amortization of intangible assets due to purchase price allocation	–6,222	–7,171
Other expenses	–55,720	–48,867
Operating expenses	–172,617	–159,815
Operating result (EBIT)	54,712	46,626
Interest income	1,493	417
Interest expenses	–583	–622
Other financial expenses/income	–903	–312
Net finance costs	7	–516
Earnings before taxes (EBT)	54,719	46,110
Income taxes	–11,406	–9,302
Net income for the year	43,314	36,808
Other comprehensive income:
Difference from currency translation	4,982	–7,669
Items of other comprehensive income that are reclassified subsequently to profit or loss	4,982	–7,669
Gains/losses from the revaluation of defined benefit pension plans	–55	41
Tax effect	16	–12
Items of other comprehensive income that will not be reclassified to profit or loss	–38	29
Subtotal other comprehensive income	4,944	–7,640
Total comprehensive income for the year	48,257	29,168
Net profit or loss for the period attributable to:
Equity holders of the parent	42,547	36,252
Non-controlling interests	766	555
Net income for the year	43,314	36,808
Total comprehensive income for the year attributable to:
Equity holders of the parent	46,969	29,173
Non-controlling interests	1,289	–5
Total comprehensive income for the year	48,257	29,168
Earnings per share (undiluted) in euros	0.37	0.31
Earnings per share (diluted) in euros	0.37	0.31
Average number of shares outstanding (undiluted)	115,500,000	115,500,000
Average number of shares outstanding (diluted)	115,500,000	115,500,000

Consolidated statement of financial position

as of March 31, 2024 and December 31, 2023

STATEMENT OF FINANCIAL POSITION

Assets	Thousands of € March 31, 2024	December 31, 2023
Current assets
Cash and cash equivalents	339,452	268,041
Trade receivables	118,185	99,640
Inventories	884	978
Income tax receivables	22,390	18,998
Other financial assets	1,454	1,359
Other non-financial assets	33,322	29,197
Current assets, total	515,687	418,213
Non-current assets
Property, plant and equipment	23,267	23,735
Intangible assets	129,484	135,106
Goodwill	557,262	552,037
Right-of-use assets	58,066	60,922
Investments in associates	17,121	17,121
Deferred tax assets	37,915	33,850
Other financial assets	35,323	29,583
Other non-financial assets	4,824	3,765
Non-current assets, total	863,263	856,119

Total assets	1,378,950	1,274,332

Equity and liabilities	Thousands of €	March 31, 2024	December 31, 2023
Current liabilities
Short-term borrowings and current portion of long-term loans		4,947	6,802
Trade payables		15,578	15,325
Provisions		22,638	34,835
Accrued liabilities		36,963	30,832
Deferred revenue		321,460	265,097
Income tax liabilities		17,372	11,993
Other financial liabilities		42	55
Lease liabilities		16,549	16,691
Other non-financial liabilities		23,118	18,986
Current liabilities, total		458,666	400,616
Non-current liabilities
Long-term borrowings without current portion		71	71
Deferred tax liabilities		15,811	16,746
Pensions and related obligations		3,615	3,580
Provisions		1,523	1,128
Deferred revenue		6,413	6,150
Income tax liabilities		9,259	9,161
Other financial liabilities		26	8
Lease liabilities		50,706	52,774
Other non-financial liabilities		2,109	2,200
Non-current liabilities, total		89,535	91,819
Equity
Subscribed capital		115,500	115,500
Capital reserve		12,485	12,485
Retained earnings		684,460	640,800
Other reserves		–17,756	–22,210
Equity (group shares)		794,689	746,575
Non-controlling interests		36,060	35,323
Equity, total		830,748	781,898
Total equity and liabilities		1,378,950	1,274,332

Consolidated cash flow statement

for the period from January 1 to March 31, 2024 and 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

Thousands of €	3 months 2024	3 months 2023
Profit (before tax)	54,719	46,110
Depreciation and amortization of fixed assets	13,550	14,354
Net finance costs	–7	516
EBITDA	68,261	60,980
Other non-cash transactions	1,329	443
Cash flow for the period	69,591	61,422
Change in trade working capital	34,414	42,595
Change in other working capital	–7,525	–15,126
Financing effects and tax cash flow	–11,966	–13,963
Cash flow from operating activities	84,514	74,928
Capital expenditure	–2,418	–2,634
Changes in liabilities from acquisitions	0	–239
Cash received from disposal of fixed assets	37	172
Cash paid for acquisition of other investments	–5,400	–3,332
Cash flow from investing activities	–7,782	–6,032
Dividend payments to non-controlling interests	–552	–604
Cash received from bank loans	0	2,462
Repayment of borrowings	–1,855	–27,072
Principal elements of lease payments	–4,368	–4,054
Interests paid	–640	–617
Cash flow from financing activities	–7,414	–29,885
Changes in cash and cash equivalents	69,317	39,011
Effect of exchange rate differences on cash and cash equivalents	2,093	–1,698
Cash and cash equivalents at the beginning of the period	268,041	196,821
Cash and cash equivalents at the end of the period	339,452	234,133

Consolidated statement of changes in equity

for the period from January 1 to March 31, 2024 and 2023

	Equity attributable to the parent company's shareholders
Thousands of €	Subscribed capital	Capital reserve	Retained earnings	Translation reserve	Total	Non-controlling interests	Total equity
As of January 1, 2023	115,500	12,485	533,871	–8,586	653,270	35,953	689,223
Other comprehensive income	–	–	24	–7,103	–7,080	–561	–7,640
Net income for the year	–	–	36,252	–	36,252	555	36,808
Total comprehensive income for the year	0	0	36,276	–7,103	29,173	–5	29,168
Dividend payments to non-controlling interests	–	–	–	–	0	–604	–604
Share-based payments	–	–	283	–	283	–	283
As of March 31, 2023	115,500	12,485	570,430	–15,689	682,726	35,343	718,070
As of January 1, 2024	115,500	12,485	640,800	–22,210	746,575	35,322	781,898
Other comprehensive income	–	–	–32	4,453	4,421	522	4,944
Net income for the year	–	–	42,547	–	42,547	766	43,314
Total comprehensive income for the year	0	0	42,515	4,453	46,969	1,289	48,257
Dividend payments to non-controlling interests	–	–	–	–	0	–552	–552
Share-based payments	–	–	1,145	–	1,145	–	1,145
As of March 31, 2024	115,500	12,485	684,461	–17,756	794,689	36,059	830,748

NEMETSCHEK SE Konrad-Zuse-Platz 1 81829 Munich Tel.: +49 89 540459-0 Fax: +49 89 540459-414 investorrelations@nemetschek.com www.nemetschek.com