Nemetschek SE — Call Transcript 2023

Oct 26, 2023

Earnings Call Q3- / 9M-23

Nemetschek Group October 26, 2023

Key Messages

• 1. Q3-23: Strong growth driven by one-time effects in Design and Build with correlating higher profitability. Subscription/SaaS transitions of Bluebeam and Design brands progressing as planned.
• 2. 9M-23: Successful first nine months of the year with substantial progress made on our journey to a subscription and SaaS centric business model in all segments.

3. Updated FY-23 guidance:

• o Revenue growth (constant currency): 6.0% 8.0%
• o EBITDA margin: Upper end of 28%-30% range
• o Mid-term ambitions for FY-24 & FY-25 fully re-iterated
• 4. Resilient Business Model: High growth in economic challenging times underpins Nemetschek's resilient business model thanks to its high share of recurring revenues, its innovative solutions, and its well diversified geographical exposure.

Financial Results Q3-23

Q3-23: Strong Profitable Growth in a Challenging Environment

Nemetschek's Executive Team for the Next Phase of Growth

Continued Progress on Strategic Topics

• Maxon Collaborates with Adobe to Unveil Limited-Time Bundle

Business Enablement

• Good progress in harmonization of processes and structures and continued build-up to enable future growth journey
• Enhanced operational excellence

Innovation & Technological Leadership

• dTwin market launch: open, data-driven Digital Twin cloud platform
• Innovative new Releases of major brands (Graphisoft, Allplan, Vectorworks, Maxon)
• Ongoing development of new cloud features across brands
• Various Artificial Intelligence initiatives

Start-up Investments

• Value generation by combining the competences of our start-up investments & brands:
  • o Technical integration (e.g. Imerso & Solibri, Reconstruct & Bluebeam/Allplan)
  • o Co-/cross-selling (Reconstruct & Allplan)

Key Financial Highlights 9M-23: Strong First Nine Months of the Year

07 Nemetschek Group | Earnings Call Q3-/ 9M-23

Segments 9M-23: Well on Track, Strong Subscription Growth in all Segments

Revenues by Type: Subscription/SaaS driving Recurring Revenue Share to 75%

1 Constant currency 2 Annual Recurring Revenue (ARR): Average of all recurring revenues (Sub./SaaS and maintenance contracts) over the last

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	9M-23	In % of revenue	9M-22	Growth y/y
Revenues	632.0	100%	598.9	+5.5%
Cost of goods and services	-25.0	3.9%	-22.4	+11.4%
Personnel expenses	-271.2	42.9%	-248.5	+9.1%
Other operating income/expenses	-147.3	23.3%	-126.6	+16.4%
EBITDA	188.5	29.8%	201.3	-6.4%
EBITDA margin	29.8%	-	33.6%	-380bps
D&A (incl. PPA)	-44.6	7.1%	-43.7	+2.0%
EBIT	143.9	22.8%	157.6	-8.7%
EBIT margin	22.8%	-	26.3%	-350bps
Net income (group shares)	114.1	18.1%	127.9	-10.8%
EPS	0.99	-	1.11	-10.8%
FCF (before M&A)	178.3	-	151.1	+17.9%
Equity ratio in %	59.5%	-	57.4%	-
Net Cash	223.1	-	120.5	-

Outlook

11 Nemetschek Group | Earnings Call Q3-/ 9M-23

Outlook 2023: Increase After the First Nine Month of the Year

Guidance 2023		Ambition
Old	Updated	2024	2025
ARR Growth: > 25% Share Recurring Revenue: > 75% Revenue Growth: 4% - 6% (at constant currencies) EBITDA Margin: 28% - 30%	ARR Growth: > 25% Share Recurring Revenue: > 75% Revenue Growth: 6.0% - 8.0% (at constant currencies) EBITDA Margin: Upper end of 28% - 30% Range	Revenue Growth: Double digit percentage growth EBITDA Margin: > 30% Share Recurring Revenue: ~85%	Revenue Growth: Significantly above market – At least Mid-teens

Guidance 2023:

Please note: The guidance is based on the assumption that the global macroeconomic or sector-specific conditions will not deteriorate significantly in 2023. Furthermore, no additional potential negative effects from the current developments in the Middle East conflict and the ongoing war in Ukraine are reflected in the outlook.

Appendix

13 Nemetschek Group | Earnings Call Q3-/ 9M-23

Income Statement

€m	9M 2023	9M 2022	% YoY
Revenues	632.0	598.9	+5.5%
Other income	6.4	13.5	-52.5%
Operating income	638.4	612.4	+4.2%
Cost of goods and services	-25.0	-22.4	+11.4%
Personnel expenses	-271.2	-248.5	+9.1%
Other expenses	-153.8	-140.2	+9.7%
Operating expenses	-449.9	-411.1	+9.4%
EBITDA	188.5	201.3	-6.4%
Margin	29.8%	33.6%
Depreciation and amortization	-44.6	-43.7	+2.0%
t/o right -of -use assets	-12.5	-12.2	+2.5%
t/o PPA	-23.1	-23.7	-2.6%
EBIT	143.9	157.6	-8.7%
Financial result	0.6	5.0	-87.2%
t/o IFRS 16	-1.4	-1.0	+48.1%
EBT	144.5	162.6	-11.1%
Income taxes	-28.4	-32.5	-12.6%
Non -controlling interests	2.0	2.2	-9.1%
Net income (group shares)	114.1	127.9	-10.8%
EPS in EUR	0.99	1.11	-10.8%

Balance Sheet – Assets

€m	September 30, 2023	December 31, 2022
Assets
Cash and cash equivalents	248.0	196.8
Trade receivables, net	106.5	84.5
Inventories	1.5	0.9
Other current assets	49.9	44.9
Current assets, total	405.8	327.1
Property, plant and equipment	25.2	26.6
Right-of-use assets	64.6	69.8
Intangible assets	149.9	171.7
Goodwill	558.3	557.0
Other non-current assets	66.8	45.9
Non-current assets, total	864.9	871.0
Total assets	1,270.7	1,198.1

Balance Sheet – Equity and Liabilities

€m	September 30, 2023	December 31, 2022
Equity and liabilities
Short-term borrowings and current portion of long-term loans	23.5	65.1
Trade payables	12.4	15.7
Provisions and accrued liabilities	68.1	70.3
Deferred revenue	271.5	206.9
Current lease liability	16.9	14.9
Other current liabilities	32.0	31.0
Current liabilities, total	424.3	403.8
Long-term borrowings without current portion	1.4	6.9
Deferred tax liabilities	15.7	19.8
Non-current lease liability	56.6	62.4
Other non-current liabilities	17.1	15.9
Non-current liabilities, total	90.9	105.1
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	597.8	533.9
Other reserves	-6.8	-8.6
Non-controlling interests	36.6	36.0
Equity, total	755.6	689.2
Total equity and liabilities	1,270.7	1,198.1

Cash Flow Statement

€m	9M 2023	9M 2022	% YoY
Cash and cash equivalents at the beginning of the period	196.8	157.1	+25.3%
Cash flow from operating activities	186.9	173.9	+7.5%
Cash flow from investing activities	-23.3	-27.7	-15.9%
t/o CapEX	-8.9	-11.4
t/o Cash paid for acquisition of equity investments	-13.4	-3.9
Cash flow from financing activities	-113.1	-124.3	-9.0%
t/o Dividends	-52.0	-45.0	+15.4%
t/o Cash received from loans	21.2	27.8
t/o Repayments of borrowings	-65.6	-91.4
t/o Principal elements of lease payments	-12.7	-12.6
FX-effects	0.7	7.7
Free cash flow	163.5	146.2	+11.9%
Free cash flow (before M&A)1	178.3	151.2	+17.9%
Cash and cash equivalents at the end of the period	248.0	186.6	+32.9%

SHAPE THE WORLD

NEMETSCHEK SE Investor Relations Konrad-Zuse-Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com

NEMETSCHEK SE Konrad-Zuse-Platz 1 | 81829 München | Tel. (089) 540459-0 | 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.