Nemetschek SE — Call Transcript 2013

Apr 30, 2013

Q1 2013 Conference Call

Tanja Tamara Dreilich

30 April 2013

Executive Summary

• Financials
• Outlook
• Appendix

Q1 Headlines

Solid Q1 performance

Revenues	increased by 5% to 43.7 mEUR
EBITDA	raised by 15% to 10.8 mEUR
EBITDA margin	reached high level of 24.6%
EPS	€ 0.55, up 22%
EPS (without PPA)	€ 0.71
Net cash position	increased to 56.0 mEUR (YTD)

Revenue Structure

Q1 Revenues from Software	+2%
------------------------------	-----

Q1 Revenues from Maintenance +9%

Q1 Headlines

New software Nevaris

• Launched end 2012
• Q1 2013 product sales has just started
• Promising feedback from customer base

bim+ platform

• 11th Nemetschek Brand presented at BAU tradeshow in January
• Market entry is planned for mid 2013

Cooperation between Adobe and Maxon announced

• Long-term strategic marketing and development cooperation
• New milestone for the further development of Maxon

Executive Summary

Financials

• Outlook
• Appendix

Group P+L: Q1 results in line with expectations

• Q1 Revenues increased by 5%
• Revenues from Maintenance growing over-proportional in Q1 by 9%
• EBITDA showed strong growth with 15% due to high cost awareness
• Net income well above previous year with 5.3 mEUR (+22%)
• EPS increased to €0.55
• EPS (without PPA) reached € 0.71

€ m	Q1 2012	Q1 2013	% YoY
Revenues	41.6	43.7	+5%
t/o Licences	20.2	20.5	+2%
t/o Maintenance	19.1	20.8	+9%
EBITDA	9.4	10.8	15%
Margin	22.5%	24.6%
Net income (group shares)	4.3	5.3	+22%
EPS	0.45	0.55	+22%

Steady rising Net Cash

• Operating cash flow rising by 41% to 13.7 mEUR
• CapEx at 1.4 mEUR in line with forecast (~6 mEUR in FY 2013)
• Further growing cash position (56 mEUR)
• No financial debt

€ m	Q1 2012	Q1 2013	% YoY
EBITDA	9.4	10.8	15%
Operating cash flow	9.7	13.7	+41%
Conversion rate(1)	103%	127%
Investing cash flow	-1.1	-1.3
Free cash flow	8.6	12.4	+45%

44.3 12.4 -0.7 56.0 Net cash FY 2012 Free cash flow Q1 2013 Other Net cash Q1 2013

Net cash development in EUR millions

(1) Operating cash flow/ EBITDA

Divisional performance

€ m	Q1 2012	Q1 2013	YoY %
Revenues
Design	33.6	34.7	+3%
Build	3.4	3.8	+14%
Manage	1.0	1.0	+1%
Multimedia	3.6	4.1	+16%
EBITDA
Design	6.4	7.3	+15%
Build	1.2	1.2	+5%
Manage	0.2	0.2	+33%
Multimedia	1.7	2.0	+19%
EBITDA margin
Design	19%	21%
Build	35%	32%
Manage	15%	19%
Multimedia	47%	48%

Revenues

• Design: moderate growth in Q1
• Build: customer spending still on high level in Q1
• Multimedia: continued its successful development – inspired by the new Adobe cooperation

EBITDA

• Design: EBITDA and margin increased due to good cost control measures
• Build: planned investments in market and sales due to Nevaris launch
• Manage: improved margin situation

• Multimedia: rapid growth with high margin level

• Executive Summary

• Financials
• Outlook
• Appendix

Outlook 2013

• Cambashi Research: 2013 around 8% growth in technical applications (includes AEC, geospatial and manufacturing) in APAC and Americas and almost 5% for EMEA
• Pike Research: BIM products & services solutions will grow from \$1.8 billion in 2012 to almost \$6.5 billion in 2020
• Expected growth for construction industry in 2013:

Germany ~ 2% USA ~ 8% China ~ 7%.

IR-calendar 2013 and contacts

• May 7: Goldman Sachs European Small and Mid-Cap Symposium in London
• May 16: Annual General Meeting in Munich
• June 20: Berenberg Technology Sector Conference in Paris
• June 21-24: Berenberg Roadshow in USA
• Sept. 24: Baader Investment Conference in Munich
• Sept. 23-25: German Corporate Conference
• Nov. 11-13: Equity Forum in Frankfurt
• Nov. 20-22: Morgan Stanley TMT Conference in Barcelona

Contacts:

Stefanie Zimmermann

Investor Relations

+49 89 92793 1229

szimmermann@nemetschek.com

• Executive Summary
• Financials
• Outlook
• Appendix

P+L statement

€ m	Q1 2013	Q1 2012	% YoY
Revenues	43.7	41.6	+5%
Own work capitalized/ Other operating income	1.3	1.1	+15%
Operating income	45.0	42.7	+5%
Cost of materials/ purchased services	-2.1	-1.7	+23%
Personnel expenses	-19.2	-18.5	+4%
Other operating expenses	-13.0	-13.2	-2%
Operating costs	-34.3	-33.4	+3%
EBITDA	10.8	9.4	+15%
Margin	24.6%	22.5%
Depreciation of PPE and amortization	-2.8	-2.5	+11%
Thereof PPA	-1.8	-1.8
EBIT	8.0	6.9	+16%
Financial result	0.0	-0.3
EBT	8.0	6.6	+20%
Income taxes	-2.2	-1.9	+15%
Minorities	-0.5	-0.4
Net income (group shares)	5.3	4.3	+22%
EPS	0.55	0.45

Balance sheet - Assets

€ m	March 31, 2013	Dec 31, 2012
ASSETS
Cash and cash equivalents	56.0	44.3
Trade receivables, net	23.5	21.4
Other current assets	9.4	8.7
Total current assets	88.9	74.4
Tangible assets	5.1	5.0
Intangible assets	29.6	31.4
Goodwill	52.9	52.6
Other non-current assets	1.6	1.6
Total non-current assets	89.2	90.6
Total assets	178.1	165.0

Balance sheet – Equity and liabilities

€ m	March 31, 2013	Dec 31, 2012
EQUITY AND LIABILITIES
Short-term loans	0.0	0.0
Trade payables & accrued liabilities	16.0	19.0
Deferred revenue	32.8	21.6
Other current liabilities	5.9	6.3
Total current liabilities	54.7	46.9
Deferred tax liabilities	1.7	1.7
Other non-current liabilities	4.1	4.4
Total non-current liabilities	5.8	6.1
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-4.1	-3.9
Retained earnings	68.9	63.6
Minority interests	1.8	1.3
Total equity	117.6	112.0
Total equity and liabilities	178.1	165.0

Cash flow statement

€ m	Q1 2013	Q1 2012	% YoY
Cash at beginning of period	44.3	33.5	+32%
Operating cash flow	13.7	9.7	+41%
Investing cash flow	-1.3	-1.1	+15%
t/o CapEx	-1.4	-1.1
Financing cash flow	-0.4	-0.6	-34%
FX-effects	-0.3	0.5
Cash at end of period	56.0	42.0	+34%
Free cash flow(1)	12.4	8.6	+45%

Disclaimer

This presentation contains forward-looking statements based on 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.