Nemetschek SE — Call Transcript 2021

Oct 28, 2021

Queen's Wharf, Brisbane, Australia

Architects: Cottee Parker Architects | Picture: Destination Brisbane Consortium | Realized with Bluebeam, dRofus, Graphisoft & Bluebeam

Nemetschek Group

Earnings Call Q3 - / 9M -2021

October 28 2021 | Dr. Axel Kaufmann, Spokesman & CFOO

01 Financial Results Q3 - / 9M -21

Top Key Figures Q3-21: Continued Strong Growth With High Profitability

3 OCTOBER 2021

Q3-21: Continued Strong Growth Despite Substantially Higher Comparison Base

Key Business Highlights 9M-21: Successful First Nine Months of the Year

Financial Performance

Strategic Highlights

Internationalization as a Growth Driver

International expansion of brands (e.g. European expansion of US brands and vice versa)

Continued Progress on Harmonization

• Precast & SDS2 integration into Allplan progressing as planned
• Graphisoft and DDS join forces

Subscription/SaaS

Growth underpins success of segment-tailored subscription strategy

5 Earnings Call Q3- / 9M-21 OCTOBER 2021

Record High: Share of Recurring and Subscription/SaaS Revenues

Revenue Share by Type in %

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	Q3 2021	Q3 YoY	9M-2021	9M YoY	in % of revenue
Revenues	169.3	+13.9%	493.6	+13.0%	100.0%
Cost of materials/cost of purchased services	-5.8	-5.3%	-18.1	+5.4%	3.7%
Personnel expenses	-72.4	+8.3%	-212.6	+8.3%	43.1%
Other operating income/expenses	-36.8	+27.0%	-102.7	+9.2%	20.8%
EBITDA	54.4	+16.4%	160.3	+24.0%	32.5%
EBITDA margin	32.1%	+68bps	32.5%	+287bps	-
D&A (incl. PPA)	-12.3	+1.0%	-37.2	+0.2%	7.5%
EBIT	42.0	+21.8%	123.0	+33.6%	24.9%
EBIT margin	24.8%	+160bps	24.9%	+384bps	-
Net income (Group shares)	34.2	+35.7%	96.8	+42.9%	19.6%
EPS	0.30	+35.7%	0.84	+42.9%	-
Operating cash flow	57.8	+59.2%	163.6	+42.9%	-
Free cash flow (ex M&A)	55.5	+64.0%	149.3	+39.0%	-
Equity ratio in %	52.0%	-	52.0%	-	-
Net cash	109.1	-	109.1	-	-

Earnings Call Q3- / 9M-21

7 OCTOBER 2021

Q3-21 Segment Overview: Continued Strong Momentum in Build, Record Quarter in M&E

• New customer wins despite uncertain market environment Margin uplift after successful integration of acquisitions Red Giant & Redshift and subscription transition

Earnings Call Q3- / 9M-21

response to Covid-19

Q3-20: EBITDA margin artificially

high due to cost-savings measures in

8 OCTOBER 2021 Margin increase driven by strong growth and operational efficiency

Industry Shows & Events: Staying Closely Connected to our Customers

Highlights Q3: Digital Brand Events

Bluebeam XCON Anywhere

• Latest trends in digital construction

BIM World Munich

Upcoming In-Person Industry Shows in Q4:

• Leading BIM networking platform in DACH (> 8000 participants)
• 10 Nemetschek brands on-site

Graphisoft Building Together

• Presentations from leading AEC industry professionals

Digital Construction Week

• Key UK event dedicated to digital construction, engineering, design, manufacturing, and operation
• 5 Nemetschek brands on-site

Allplan Global Summit

• First large digital event

• 30 keynotes & presentations from Allplan and industry experts

Earnings Call Q3- / 9M-21 9 OCTOBER 2021

02 Outlook & Summary

Crown Sydney, Sydney, Australia

Rendereing: Floodslicer | Realized with Bluebeam

Market Overview: Continued Positive Market Conditions

Earnings Call Q3- / 9M-21

Summary 9M-21 – Successful First Nine Months of the Year

9M-21:

• Strategic Highlights
• − First venture investments in promising start-ups
• − Optimization of organizational structure
• Financial Highlights
• − New record levels in revenue, EBITDA and EPS
• − Substantial increase in Subscription/SaaS contribution

• − Strong cash flow generation underpins high earnings quality

• Long-term structural growth drivers unchanged

• Strong market position, products & customer relationships
• Continued progress on strategic initiatives
• − Further reduction of organizational complexity
• − Continuously screening the market for attractive & innovative start-ups

Success based on Nemetschek's strong operational business

As a leading AEC software company, Nemetschek is well positioned for future growth

Outlook 2021: We Now Target the Upper End of Guidance Ranges

Outlook 2021:

Please note: The outlook is based on the assumption that there will be no material deterioration in the economic conditions in Q4-21 and that the Corona pandemic will continue to be under control.

13 Earnings Call Q3- / 9M-21 OCTOBER 2021

Income Statement

€m	9M -2021	9M -2020	%YoY
Revenues	493.6	436.8	+13.0%
Other operating income	6.2	7.3	-15.1%
Operating income	499.8	444.1	+12.5%
Cost of materials/purchased services	-18.1	-17.2	+5.4%
Personnel expenses	-212.6	-196.4	+8.3%
Other operating expenses	-108.9	-101.3	+7.5%
Operating expenses	-339.6	-314.9	+7.8%
EBITDA	160.3	129.3	+24.0%
Margin	32.5%	29.6%
Depreciation and amortization	-37.2	-37.2	+0.2%
t/o Right -of -use assets	-11.1	-11.7	-4.7%
t/o PPA	-19.1	-18.5	+3.5%
EBIT	123.0	92.1	+33.6%
Financial result	-1.1	-1.7	-38.0%
t/o IFRS 16	-1.0	-1.1	-9.7%
EBT	121.9	90.4	+34.9%
Income taxes	-23.6	-22.0	+7.3%
Non -controlling interests	1.5	0.6
Net income (group shares)	96.8	67.7	+42.9%
EPS in EUR	0.84	0.59	+42.9%

Balance Sheet – Assets

€m	September 30, 2021	December 31, 2020
Assets
Cash and cash equivalents	191.9	139.3
Trade receivables, net	66.8	64.6
Inventories	0.7	0.6
Other current assets	33.0	31.8
Current assets, total	292.4	236.4
Property, plant and equipment	20.8	21.6
Right-of-use assets	58.9	61.3
Intangible assets	131.9	138.2
Goodwill	428.4	416.7
Other non-current assets	25.1	15.5
Non-current assets, total	665.1	653.3
Total assets	957.5	889.7

Balance Sheet – Equity and Liabilities

€m	September 30, 2021	December 31, 2020
Equity and liabilities
Short-term borrowings and current portion of long-term loans	40.9	59.6
Trade payables & accrued liabilities	69.6	67.5
Deferred revenue	158.8	129.5
Current lease liability	13.8	13.4
Other current assets	37.5	25.9
Current liabilities, total	320.6	295.8
Long-term borrowings without current portion	41.9	70.7
Deferred tax liabilities	24.7	25.2
Non-current lease liability	51.7	54.3
Other non-current liabilities	20.9	26.4
Non-current liabilities, total	139.2	176.6
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	377.6	315.3
Other comprehensive income	-23.0	-39.4
Non-controlling interests	15.2	13.4
Equity, total	497.8	417.3
Total equity and liabilities	957.5	889.7

Earnings Call Q3- / 9M-21

OCTOBER 2021 18

Cash Flow Statement

€m September 30, 2021 September 30, 2020 % YoY Cash and cash equivalents at the beginning of the period 139.3 209.1 -33.4% Cash flow from operating activities 163.6 114.5 +42.9% Cash flow from investing activities -19.7 -90.3 t/o Cash paid for acquisition of other investments -7.2 0.0 t/o CapEX -5.6 -7.3 t/o Cash paid for acquisition of subsidiaries, net of cash acquired -5.4 -83.3 Cash flow from financing activities -95.8 -81.8 +17.1% t/o Dividend payments -34.7 -32.3 t/o Cash received from bank loan 18.0 6.9 t/o Repayments of borrowings -65.6 -43.1 t/o Principal elements of lease payments -11.2 -9.6 FX-effects 4.5 -4.8 Cash and cash equivalents at the end of the period 191.9 146.6 +30.9% Free cash flow1 143.9 24.2 Free cash flow1 (w/o acquisition effects) 149.3 107.5 +39.0%

¹ Operating cash flow – Investing cash flow

Contact

NEMETSCHEK SE Investor Relations

Konrad-Zuse-Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com

Disclaimer

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

Ülemiste train station, Tallin, Estonia

Architects: 3+1 Architects | Image: 3+1 Architects | Realized with Vectorworks