Nemetschek SE

Earnings Release • Oct 29, 2010

Quarterly Statement as of September 30, 2010

Dear shareholders, ladies and gentlemen,

In the first three quarters of the current fiscal year we were already able to recover a substantial part of ground lost in the year of crisis - 2009. Revenues are almost back at the level of the comparable 2008 period and the EBITDA margin is also at record level after nine months.

License revenues, particularly affected in 2009, even managed to climb by over 20 percent – mainly abroad. We made good headway in Europe just as in the USA, Japan and Australia. Additionally, we achieved our first successes in the future market of Brazil. Our Belgian subsidiary Scia can now count several of the largest Brazilian steel corporations as its customers.

Obviously, it was the right thing, even in times of crisis, to keep the team together and to maintain the innovative strength of the company at a high level. All subsidiaries were able to pursue their new developments with unfailing energy. Thus, Vectorworks and our multimedia subsidiary, Maxon, brought out new product versions in the third quarter which were received very well by the market. In advance of the launch of the new release Allplan 2011, Allplan successfully performed an update and upgrade program for old customers and, as a result, also secured new maintenance contracts.

Ladies and gentlemen, in light of the successes of the first nine months, it is conceivable that the Nemetschek Group will again reach the level of 2008, a strong year for revenues. However, at the current time it would be premature to increase forecasts again.

Settlement is at the end - and everything depends on how well the fourth quarter progresses. The relative growth rate – the key word being baseline effect – will almost certainly be lower than in the current 9-month comparison since, in the fourth quarter 2009, economic recovery was already clearly noticeable. On the other hand, the fourth quarter is traditionally strong in terms of revenue and, of course, we will again make every effort not to disappoint those expectations of us.

Dear shareholders, I thank you for your confidence.

Yours sincerely

Ernst Homolka CEO

The share

Changeable price development

At the beginning of the 3rd quarter 2010 the price of the Nemetschek share increased significantly: whereas it was still quoted at 22.35 euros as of July 1, on August 17 it reached its provisional annual highest level at 26.79 euros. The background to this increase was, in addition to a good market environment, positive company analyses: at the end of July Goldman Sachs confirmed the share price target at 35 euros, at the beginning of August the WestLB increased the price target from 36 to 38 euros.

As part of the renewed uncertainty arising on the stock exchanges the Nemetschek share also came under pressure from the middle of August. At the same time as rising trading volumes it fell to its monthly low of 22.08 euros by mid September. The reduced price level allowed interest in the share to subsequently climb again, enabling it to offset part of the losses once more. As of September 30 the share closed at 24.19 euros and was thus 7 percent higher than at the end of the last quarter.

Price development of the Nemetschek Share from September 1, 2009 onwards

Key figures

Millions of €	September 30, 2010	September 30, 2009	Change
Revenues	108.3	96.9	12%
Gross profit	105.4	93.4	13%
as % of revenue	97%	96%
EBITDA	26.5	18.9	40%
as % of revenue	25%	20%
EBIT	19.4	11.7	66%
as % of revenue	18%	12%
Net income (Group shares) adjusted by PPA effects *)	17.4	10.5	65%
per share in €	1.81	1.09
Net income (Group shares)	13.2	6.3	109%
per share in €	1.37	0.65
Net income	13.7	6.5	110%
Cash flow for the period	24.5	17.8	38%
Cash flow from operating activities	27.6	18.1	52%
Cash flow from investing activities	–2.4	–2.9	–17%
Cash and cash equivalents	36.2	22.9	58%
Net debt **)	9.2	–9.4	–198%
Equity **)	87.7	79.6	10%
Equity-quote **)	52%	50%
Headcount as of balance sheet date **)	1,063	1,064
Average number of outstanding shares (undiluted)	9,625,000	9,625,000

*) PPA = Purchase Price Allocation

**) Presentation of previous year as of December 31, 2009

Interim Management Report

Report on the Earnings, Financial, and Asset Situation

Clear increases in revenues and results

In the first nine months of 2010 the Nemetschek Group was able to again improve and exceed expectations in all key indicators. Compared to the prior year period, which was characterised by the consequences of the world economic crises, revenues rose by 12% to 108.3 million euros (previous year: 96.6 million euros). The EBITDA increased by 40% to 26.5 million euros (previous year: 18.9 million euros), thus the operating margin rose from 20 to 25%. The Group generated cash flow of 27.6 million euros from the operating business (previous year: 18.1 million euros), which represents a plus of 52% compared to the prior year period.

License revenues increased by 21 %

Compared to the first nine months of 2009 the revenues from license sales rose by 21% to 53.3 million euros (previous year: 44.0 million euros). Revenues from long-term maintenance contracts rose by 6% to 49.1 million euros (previous year: 46.1 million euros).

Above-average growth abroad

In foreign markets, which particularly suffered in the previous year under the crisis, the Nemetschek Group was able to drive revenues from 54.9 million euros to 64.5 million euros. This represents a plus of 17%. Revenues in Germany rose compared to the prior year by 4% from 42.0 million euros to 43.8 million euros. The portion of foreign revenues was thus 60%.

Strong growth in the segments of Design and Multimedia

Revenues in the Design segment climbed by 12% to 88.0 million euros. EBITDA amounted to 19.6 million euros after 13.6 million euros in the prior year. Thus this business unit achieved an EBITDA margin of 22% compared to 17% in the prior year.

The Multimedia business unit achieved above-average results: Compared to the prior year revenues increased by 33% to 7.7 million euros. EBITDA increased to 2.9 million (previous year: 1.5 million euros). This is equivalent to an operating margin of 38% after 26% in the previous year.

The Build segment was able to maintain the high revenue level of the prior year period and generated revenues amounting to 9.9 million euros (previous year: EUR 9.8 million euros). At the same time, with an EBITDA of 3.7 million euros (previous year: 3.4 million euros), this segment similarly achieved an operative margin of 38% (previous year 34%). The Manage segment generated revenues of 2.7 million euros (previous year: 3.0 million euros) and an EBITDA of 0.3 million euros (previous year 0.5 million euros).

Excellent earnings situation

As a result of the increase in revenues the Nemetschek Group achieved an EBITDA of 26.5 million euros in the first nine months of the year (previous year: 18.9 million euros). The operating expenses were 5% above the prior year level at 91.9 million euros (previous year: 87.5 million euros). This is mainly due to costs dependent on revenues such as distributor commissions and variable salary components and,

additionally, higher costs incurred for the market introduction of new product versions of Allplan, Vectorworks and Maxon.

Earnings per share doubled

Following amortization from the purchase price allocation of 5.3 million euros and interest charges of 2.9 million euros, the net income for the year was 13.7 million euros (previous year: 6.5 million euros). The financial result contains the interest expenses of 0.9 million euros, which result from a negative market valuation of the interest hedge concluded as part of the financing of the Graphisoft acquisition. This is matched by income of 1.6 million euros from the sale of 8% of DocuWare AG. The earnings per share (consolidated shares, undiluted) have more than doubled compared to the prior year: from 0.65 euro to 1.37 euro.

Higher operative cash flow

The strong operative result in the first nine months is also reflected in the operating cash flow. Compared with the prior year cash flow from operating activities rose by 9.5 million euros to 27.6 million euros (previous year: 18.1 million euros). The cash flow for the period reached 24.5 million euros after 17.8 million euros in the prior year.

The cash flow from investing activities amounted to – 2.4 million euros (previous year – 2.9 million euros). This comprises payments for investments in fixed assets as well as receipts from the sales of shares in DocuWare AG referred to above. Additionally, the group paid a total of 0.4 million euros for the purchase of minority interests in Maxon Computer Ltd., in Graphisoft R&D zrt. and in the Swiss Nemetschek Fides & Partner AG.

The cash flow from financing activities amounted to – 12.2 million euros (previous year: – 11.6 million euros) and includes the dividend payments (4.8 million euros), repayment of borrowings (5.3 million euros), interest payments (1.7 million euros) as well as distributions to minority interests (0.5 million euros).

The Group was able to increase liquid funds by 13.3 million euros to 36.2 million euros despite dividend payments and repayments of borrowings compared to December 31, 2009. As a result, the liquid funds exceed the remaining loans from the Graphisoft acquisition (27.0 million euros) by 9.2 million euros.

Thanks to the stronger liquid funds current assets increased by 14.5 million euros to 67.3 million euros (December 31, 2009: 52.8 million euros). As a result of the amortization of the assets from the purchase price allocation, non-current assets decreased to 102.8 million euros (December 31, 2009: 106.5 million euros).

Equity quote of 52 %

14.1 million euros of the current liabilities relate to the current portion of the bank loans (including interest share) from the Graphisoft acquisition. 12.9 million euros of the non-current liabilities relate to the long-term portion of the bank loans. The balance sheet total was 170.1 million euros as of September 30, 2009 (December 31, 2009: 159.4 million euros). This is mainly due to the increase in liquid funds and the rise of 6.7 million euros in deferred revenues to 21.4 million

euros relating to maintenance fees invoiced. Equity amounted to 87.7 million euros (December 31, 2009: 79.6 million euros) and the equity quote was thus 52% (December 31, 2009: 50%).

Employees

On September 30, 2010, the Nemetschek Group employed 1,063 people (December 31, 2009: 1,064).

Consolidated statement of comprehensive income for the period from January 1 to September 30, 2010 and January 1 to September 30, 2009

	Thousands of € 3rd Quarter 2010 3rd Quarter 2010		9 month 2010	9 month 2009
Revenues	37,045	31,695	108,289	96,914
Own work capitalized	322	25	927	138
Other operating income	367	413	2,120	2,138
Operating Income	37,734	32,133	111,336	99,190
Cost of materials / cost of purchased services	–2,306	–2,113	–5,922	–5,795
Personnel expenses	–15,785	–14,343	–47,201	–45,155
Depreciation of property, plant and equipment and amortization of intangible assets	–2,386	–2,377	–7,119	–7,197
thereof amortization of intangible assets due to purchase price allocation	–1,763	–1,763	–5,288	–5,344
Other operating expenses	–10,712	–9,682	–31,671	–29,333
Operating expenses	– 31,189	– 28,515	– 91,913	– 87,480
Operating results (EBIT)	6,545	3,618	19,423	11,710
Interest income	43	30	127	254
Interest expenses	–776	–988	–2,918	–3,029
Income from associates	42	42	1,596	129
Earnings before taxes	5,854	2,702	18,228	9,064
Income taxes	–1,224	–871	–4,496	–2,524
Net income for the year	4,630	1,831	13,732	6,540
Other comprehensive income:
Difference from currency translation	–979	–266	–133	–700
Total comprehensive income for the year	3,651	1,565	13,599	5,840
Net income for the year attributable to:
Equity holders of the parent	4,369	1,683	13,189	6,297
Minority interests	261	148	543	243
Net income for the year	4,630	1,831	13,732	6,540
Total comprehensive income for the year attributable to:
Equity holders of the parent	3,390	1,417	13,056	5,597
Minority interests	261	148	543	243
Total comprehensive income for the year	3,651	1,565	13,599	5,840
Earnings per share (undiluted) in euros	0.45	0.17	1.37	0.65
Earnings per share (diluted) in euros	0.45	0.17	1.37	0.65
Average number of shares outstanding (undiluted)	9,625,000	9,625,000	9,625,000	9,625,000
Average number of shares outstanding (diluted)	9,625,000	9,625,000	9,625,000	9,625,000

Shares owned by board members

As of September 30, 1010, there is no change in the share ownership of the board members: Professor Georg Nemetschek (supervisory board) owns 1,411,322 shares; Ernst Homolka (CEO) owns 225 shares.

Events after the end of the interim reporting period

There were no significant events after the end of the interim reporting period.

Report on significant transactions with related parties

There are no significant changes compared to the information provided in the consolidated financial statements as of December 31, 2009.

Opportunity and risk report

Please see the group management report for the year ended December 31, 2009 for details on the significant opportunities and risks for the prospective development of the Nemetschek Group. There have been no major changes in the subsequent period.

Report on forecasts and other statements on prospective development

After the significant revenue losses in 2009 the Nemetschek Group is well on its way to make up for these. In the first nine months revenues have almost again reached the level of the comparable period in 2008. This is, above all, apparent from the positive development of license income which previously suffered under the crisis. At the same time, revenues from maintenance contracts are increasing constantly.

Consolidated statement of financial position as of September 30, ²⁰¹⁰ and December 31, 2009

Assets Thousands of €	September 30, 2010	December 31, 2009
Current assets
Cash and cash equivalents	36,191	22,861
Trade receivables, net	21,164	21,141
Inventories	645	827
Tax refunded claims for income taxes	3,592	2,286
Current financial assets	525	537
Other current assets	5,224	5,181
Current assets, total	67,341	52,833
Non-current assets
Property, plant and equipment	3,543	3,632
Intangible assets	44,154	47,529
Goodwill	52,180	51,958
Associates / investm ents	462	660
Deferred tax assets	1,239	1,344
Non-current financial assets	588	763
Other non-current assets	625	640
Non-current assets, total	102,791	106,526

Recovery is above all noticeable in foreign markets. This is also true of Western Europe with the exception of Spain as well as for parts of Eastern Europe. Revenues developed favorably in the USA and in the Asian-Pacific region such as in Japan and Australia; also in the emerging nation of Brazil the Group achieved its first successes. The German market continues to prove robust, which was also confirmed by the recent upward adjustment of the forecast by the federal government.

Against this background management is confident that it can uphold its forecasts. For 2010 Nemetschek is expecting continuing increases in revenues in the region of 9 percent – and thus growth to settle at the upper end of the forecast that was raised in the middle of the year. The plus in revenues could be even more significant should the fourth quarter progress well.

Since cost levels are only expected to rise slightly and mainly in line with revenues, the increased revenues will have a positive effect on the operating result. For the current fiscal year management continues to expect an EBITDA margin of around 24%.

Equity and liabilities Thousands of €	September 30, 2010	December 31, 2009
Current liabilities
Short-term loans and current portion of long-term loans	14,053	8,731
Trade payables	3,311	5,007
Payments on account	29	164
Provisions and accrued liabilities	11,955	9,371
Deferred revenue	21,445	14,774
Income tax liabilities	4,409	2,431
Other current liabilities	3,665	4,868
Current liabilities, total	58,867	45,346
Non-current liabilities
Long-term loans without current portion	12,947	23,556
Deferred tax liabilities	5,274	6,564
Pension provisions	211	200
Non-current financial obligations	4,400	3,490
Other non-current liabilities	755	618
Non-current liabilities, total	23,587	34,428
Equity
Subscribed capital	9,625	9,625
Capital reserve	41,611	41,611
Revenue reserve	52	52
Currency translation	–3,937	–3,804
Retained earnings	38,817	30,643
Equity (Group shares)	86,168	78,127
Minority interests	1,510	1,458
Equity, total	87,678	79,585
Total equity and liabilities	170,132	159,359

Consolidated cash flow statement for the period from January 1 to September 30, 2010 and January 1 to September 30, 2009

Thousands of €	2010	2009
Profit (before tax)	18,228	9,064
Depreciation and amortization of fixed assets	7,119	7,197
Change in pension provision	11	40
Other non-cash transactions	659	1,576
Income from associates	–1,596	–129
Losses from disposals of fixed assets	43	22
Cash flow for the period	24,464	17,770
Interest income	–127	–254
Interest expenses	2,918	3,029
Change in other provisions and accrued liabilities	2,584	–1,914
Change in trade receivables	228	2,244
Change in other assets	747	2,896
Change in trade payables	–1,696	–3,541
Change in other liabilities	477	–551
Cash received from distributions of associates	146	235
Interest received	121	253
Income taxes received	665	605
Income taxes paid	–2,928	–2,659
Cash flow from operating activities	27,599	18,113
Capital expenditure	–3,730	–1,660
Cash paid for additional shares purchased from Intercompanies	–370	0
Cash received from disposal of shares in associates	1,646	0
Changes in liabilities from acquisitions	0	–1,299
Cash received from the disposal of fixed assets	75	78
Cash flow from investing activities	– 2,379	– 2,881
Dividend payments	–4,813	0
Minority interests paid	–450	–67
Repayments of borrowings	–5,287	–9,651
Interest paid	–1,671	–1,831
Cash flow from financing activities	– 12,221	– 11,549
Changes in cash and cash equivalents	12,999	3,683
Effect of exchange rate differences on cash and cash equivalents	331	– 205
Cash and cash equivalents at the beginning of the period	22,861	23,227
Cash and cash equivalents at the end of the period	36,191	26,705

Consolidated segment reporting for the period from January 1 to September 30, 2010 and January 1 to September 30, 2009

2010	Thousands of €	Total	Elimination	Design	Build	Manage	Multimedia
Revenue, external		108,289		88,032	9,897	2,689	7,671
Intersegment revenue		0	–368	0	8	5	355
Total revenue		108,289	– 368	88,032	9,905	2,694	8,026
EBITDA		26,542		19,635	3,719	267	2,921
Depreciation / A m ortization		–7,119		–6,835	–103	–42	–139
Segment Operating result (EBIT)		19,423		12,800	3,616	225	2,782

2009	Thousands of €	Total	Elimination	Design	Build	Manage	Multimedia
Revenue, external		96,914		78,359	9,760	3,026	5,769
Intersegment revenue		0	–364	0	7	13	344
Total revenue		96,914	– 364	78,359	9,767	3,039	6,113
EBITDA		18,907		13,576	3,362	475	1,494
Depreciation / A m ortization		–7,197		–6,916	–104	–41	–136
Segment Operating result (EBIT)		11,710		6,660	3,258	434	1,358

Statement of changes in group equity for the period from January 1 to September 30, 2010 and January 1 to September 30, 2009

	Equity attributable the parent company's shareholders
Thousands of €	Subscribed capital	Capital reserve	Revenue reserve	Currency translation	Retained earnings	Total	Minority interests	Total equity
As of January 1, 2009	9,625	41,611	52	– 3,042	18,413	66,659	1,245	67,904
Difference from currency translation				–700		–700		–700
Net income of the year					6,297	6,297	243	6,540
Total comprehensive income for the year	0	0	0	– 700	6,297	5,597	243	5,840
Dividend payments minorities						0	–67	–67
Dividend payment						0		0
As of September 30, 2009	9,625	41,611	52	– 3,742	24,710	72,256	1,421	73,677
As of January 1, 2010	9,625	41,611	52	– 3,804	30,643	78,127	1,458	79,585
Difference from currency translation				–133		–133		–133
Net income of the year					13,189	13,189	543	13,732
Total comprehensive income for the year	0	0	0	– 133	13,189	13,056	543	13,599
Share purchase from minorities					–174	–174	–69	–243
Dividend payments minorities					–28	–28	–422	–450
Dividend payment					–4,813	–4,813		–4,813
As of September 30, 2010	9,625	41,611	52	– 3,937	38,817	86,168	1,510	87,678

Notes to the Interim Financial Statements based on IFRS

The interim financial statements of the Nemetschek Group have been prepared in accordance with the International Financial Reporting Standards (IFRS), as required to be applied in the European Union, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and of the Standing Interpretations Committee (SIC). The interim financial statements have been prepared in accordance with the provisions of IAS 34.

The interim financial statements as of September 30, 2010, have not been audited and have not undergone an audit review. The same accounting policies and calculation methods are applied in the interim financial statements as in the consolidated financial statements as of December 31, 2009. Significant changes to the consolidated statement of financial position and consolidated statement of comprehensive income are detailed in the report on the earnings, financial and asset situation.

The group of companies consolidated is the same as at December 31, 2009 except for the following changes:

As of April 19, 2010 MAXON Computer Ltd., Bedford, Great Britain, purchased all capital shares held externally at a purchase price of 24 thousand euros. After performing a capital reduction, MAXON Computer GmbH, Friedrichsdorf, holds 100 % of MAXON Computer Ltd. as of June 30, 2010. Compared to December 31, 2009 Nemetschek AG still holds a total of 70 % of the shares in MAXON Computer GmbH. Accordingly, as of June 30, 2010 the indirect holding of Nemetschek AG in MAXON Computer Ltd. amounts to 70 % (previously: 63 %).

As of April 30, 2010 Nemetschek AG sold 8 % of its shares in Docu-Ware AG, Germering. The sales price for the shares disposed of amounted to 1,646 thousand euros. DocuWare AG is included in the consolidated financial statements of Nemetschek AG as in the prior year "at equity" - since May 1, 2010 included at 22 % (previously: 30 %).

On Mai 8, 2010 Nemetschek AG purchased further shares in Nemetschek Fides & Partner AG, Wallisellen, Switzerland. At the half-year financial statements as of June 30, 2010, Nemetschek AG held 90 % of the shares in total. This purchase involved the payment of 210 thousand euros.

On May 11, 2010 the dormant NEMETSCHEK (UK) Ltd., London, Great Britain, was removed from the English Register of Companies. Accordingly the company was deconsolidated without any material effect.

As of May 28, 2010 Graphisoft R&D zrt., Budapest, Hungary purchased all remaining capital shares still held externally for a purchase price of 70 thousand euros. Nemetschek AG still holds 100 % of the shares of the parent company Graphisoft SE, Budapest, Hungary. Accordingly, the indirect share of Nemetschek AG in Graphisoft R&D zrt. now amounts to 100 % (previously: 85.8 %).

On July 8, 2010 Nemetschek AG purchased further shares in Nemetschek Fides & Partner AG, Wallisellen, Switzerland. As of September 30, 2010 Nemetschek AG held 91.7 % of the shares in total. This purchase involved the payment of 66 thousand euros.

Munich, October 2010

Ernst Homolka CEO

Financial Calendar 2010

March 24, 2010	Publication Annual Report
April 22, 2010	Capital Market Conference Baden-Baden
April 30, 2010	Quarterly Statement 1 / 2010
May 12, 2010	Roadshow WestLB, London
May 26, 2010	AGM
June 07, 2010	Software & Services Day, WestLB, Zurich
June 29, 2010	German Jour fixe 1-1, BA/Merrill Lynch, London
July 30, 2010	Half-year Report 2010
October 29, 2010	Quarterly Statement 3 / 2010
November 15, 2010	Roadshow Macquarie, Paris
November 22–24, 2010	German Equity Forum Frankfurt / Main
December 1, 2010	Roadshow WestLB, Zurich
December 2, 2010	Roadshow WestLB, London

* Inhouse produced with FIRE.sys

Nemetschek AG Investor R elations Konrad-Zuse-Platz 1 81829 Munich

Contact: R egine Petzsch Head of Corporate Communications and Investor R elations Tel.: + 49 89 92793-1219 Fax.: + 49 89 92793-5404 E-Mail: rpetzsch@ nemetschek.com

NEMETSCHEK Aktiengesellschaft Konrad-Zuse-Platz 1 81829 Munich Germany Phone + 49 89 92793 – 0 Fax + 49 89 92793 – 5200 investorrelations@nemetschek.com www.nemetschek.com