Nemetschek SE

Earnings Release • Apr 30, 2014

Q1 2014 Earnings Call

April 30th, 2014

Executive summary

Financial data

Outlook 2014

Summary Q1 2014 (1)

Revenue growth factors

• Positive start in FY 2014 with Q1 revenue increase of 16.7% to 51.0 mEUR
• Software licenses business picked up again by 18.7% to 24.3 mEUR
• Software service revenues continued on its growth path with an increase of 14.3% to 23.8 mEUR

Accelerated internationalization

• International markets showed strong growth of 18.5%
• Positive revenue increase of 14.0% in Germany

Growth segments

• Design segment developed positively with an increase of 20.6% to 41.9 mEUR
• Manage segment up by 16.1% yoy
• Well-balanced growth of software license and software service business
• Considerable growth of international markets, esp. Asia, Latin and North America
• Design segment with successful development

Summary Q1 2014 (2)

Profitability improved

• EBITDA increased stronger than revenues: +22.3% to 13.2 mEUR
• EBITDA margin with 25.8% at high level
• EBITA (normalized EBIT) up by 23.5% to 12.0 mEUR

Strong increase of net income and EPS

• Net income (group shares) showed strong growth of +37.2% to 7.5 mEUR
• EPS at 0.78 EUR
• Net income w/o PPA at 8.4 mEUR (+22.2%)
• EPS w/o PPA at 0.87 EUR

Cash flow and liquidity situation

• Operating cash flow up by 46.7% to 20.1 mEUR
• Net cash increased to 67.0 mEUR (48.6 mEUR at year end 2013)

Solid financial base and high liquidity ensure further organic and inorganic growth

Executive summary

Financial data

Outlook

Revenue increased in Q1 2014

in mEUR

Successful start in the fiscal year 2014

Q1 2014 revenues increased by 16.7% to 51.0 mEUR

Well-balanced growth of license and service business

% of revenues

Software licenses:

Up by 18.7% to 24.3 mEUR: New customers wins and increasing customer base

Software services:

Up by 14.3% to 23.8 mEUR: Recurring revenues secure stable growth

EBITDA increased stronger than revenues

in mEUR

• EBITDA up by 22.3% to 13.2 mEUR
• EBITDA margin at 25.8%

Net income and EPS up by 37.2% yoy

• Net income w/o PPA up by 22.2% to 8.4 mEUR
• EPS w/o PPA at 0.87 EUR

Segment overview

• Vectorworks and Graphisoft showed strong development in main regions
• Allplan is on track; licenses business picked up

• Margin situation improved

• Stable development

• Planned investments

Manage

• Continued growth and well filled customer pipeline
• EBITDA as expected
• Stable development

Q1 2013 Q1 2014

48.3% 44.2%

4,1 4,1

-1.7%

High prior year reference quarter, influenced by upgrade specials

Net cash development

Operating cash flow	Increased by 46.7% yoy to 20.1 mEUR
CapEx	0.8 mEUR as expected End of activation period of own worked capitalized
Net cash	67.0 mEUR (+38.0% compared to year-end 2013)

High cash position enables further growth organically and via acquisitions

Executive summary

Financial data

Outlook

Optimistic outlook 2014

• Market conditions Robust development of construction markets, despite political unrest
• Strong growth expected for BIM products and solutions
• Strategic market Clear focus on AECM market
• positioning Leading in Open BIM solutions
  • Strong and independent global brands
• First Quarter 2014 Q1 created a sound base for further growth
• Healthy balance sheet and high liquidity reserves

Growth potential • Strengthen Nemetschek's position abroad

• Capable of investing in inorganic growth
• Driving innovations for an industry whose transformation has just begun

Revenues:	EBITDA margin:
207 - 212 mEUR (+ 11 - 14%)	23 - 25%

IR calendar 2014 and contact

• 30/04/2014 Publication Q1 2014
• 20/05/2014 AGM, Munich
• 31/07/2014 Publication Q2 2014
• 30/10/2014 Publication Q3 2014

Contact: Stefanie Zimmermann Investor Relations +49 89 92793 1229 szimmermann@nemetschek.com

Executive summary

Financial data

Outlook

P+L statement – Q1 comparison

mEUR	Q1 2014	Q1 2013	% YoY
Revenues	51.0	43.7	16.7%
Own work capitalized/ Other operating income	1.0	1.3	-27.5%
Operating income	51.9	45.0	+15.4%
Cost of materials/ purchased services	-2.0	-2.1	-4.1%
Personnel expenses	-22.0	-19.2	+14.5%
Other operating expenses	-14.8	-13.0	+14.1%
Operating costs	-38.8	-34.3	+13.2%
EBITDA	13.2	10.8	+22.3%
Margin	25.8%	24.6%
Depreciation of PPE and amortization	-2.1	-2.6	-17.9%
Thereof PPA	-1.0	-1.6
EBITA (normalized EBIT)	12.0	9.7	+23.5%
EBIT	11.0	8.2	+35.0%
Financial result	0	0
EBT	11.0	8.2	+34.7%
Income taxes	-3.2	-2.3	+42.2%
Minorities	0.3	0.5
Net income (group shares)	7.5	5.5	+37.2%
EPS in EUR	0.78	0.57

Balance sheet – Assets

mEUR	March 31, 2014	Dec 31, 2013
Assets
Cash and cash equivalents	67.0	48.6
Trade receivables, net	25.5	21.9
Other current assets	10.1	9.2
Total current assets	102.7	79.6
Property, plant and equipment	5.3	5.3
Intangible assets	29.0	30.9
Goodwill	59.7	60.1
Other non-current assets	2.8	2.5
Total non-current assets	96.8	98.9
Total assets	199.4	178.5

Balance sheet – Equity and liabilities

mEUR	March 31, 2014	Dec 31, 2013
Equity and liabilities
Trade payables & accrued liabilities	17.5	20.1
Deferred revenue	39.2	23.5
Other current liabilities	12.5	10.4
Total current liabilities	69.2	54.0
Deferred tax liabilities	4.3	4.1
Other non-current liabilities	1.2	2.3
Total non-current liabilities	5.5	6.4
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-14.1	-12.8
Retained earnings	85.9	78.3
Minority interests	1.9	1.6
Total equity	124.7	118.2
Total equity and liabilities	199.4	178.5

Cash flow statement

mEUR	March 31, 2014	March 31, 2013	% YoY
Cash at beginning of period	48.6	44.3	+9.6%
Operating cash flow	20.1	13.7	+46.7%
Investing cash flow	-1.0	-1.3
t/o CapEx	-0.8	-1.4
Financing cash flow	-0.4	-0,4	-0.8%
FX-effects	-0.3	-0,2
Cash at end of period	67.0	56.0	+19.5%
Free cash flow(1)	19.1	12.4	+54.2%

Disclaimer

This presentation contains forward-looking statements based on the 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.