Nemetschek SE

Earnings Release • Oct 1, 2015

NEMETSCHEK GROUP Company Presentation

October 2015

NEMETSCHEK GROUP: In brief………………………….………………………………3
Strategy……………………………………………………………………………………………6
Financials: First half of 2015….………………………………………………………………12
NEMETSCHEK share………………………………………………………………………21
Outlook………….……………………………………….………………………………………25
Contact…………………………………………………………………………………………27
Appendix………………………………………………………………………………………….28

A success story of more than 50 years

* Building Information Modeling

Positioning

• NEMETSCHEK GROUP with 12 strong brands
• Software solutions, innovations, collaboration, 5D and Open BIM for the AEC industry (Architecture, Engineering, Construction)
• More than 1.8 million users
• Globally present with more than 50 locations in 142 countries

Mission & Vision

• Our claim: Innovative, customer-oriented software solution throughout the lifecycle of buildings
• Our benchmark: Highest quality, user-friendliness and user benefits
• Focus on customers
• Worldwide presence: Intensive sales and service secure customer access, customer proximity and customer satisfaction
• More than 50 years of innovation
• We drive innovation and digitalization for the entire building life cycle

What makes us so special

NEMETSCHEK covers complete value chain in AEC + Media

• Strong, entrepreneurial brands: Close involvement with customers, speed, excellence, innovation
• Value added: Complementarity, specialization, best in class instead of shared services
• Attractive for potential targets: Integration of different cultures

AEC Industry in transition

• 2D drawings
• Slow internet
• Poor hardware

since 1985

• 3D drawings
• Technologische Fast internet
• Trends Powerful hardware
• BIM

• Cloud computing

• 5D BIM end-to-end solution

• Smart/Mobile/Apps
• Collaboration along the value chain

Today Tomorrow

Growth: Organic and via acquisitions

Acquisition focus: Strategic fit to close regional and technology gaps

Internationalization: Regions on the agenda

Strengthening our position in the USA, Latin-America and Asia

Increasing market presence via acquisitions, shareholdings and co-operations

BIM 5D – In Scope, In Time, In Budget

As a BIM pioneer and 5D provider the NEMETSCHEK GROUP stands for an open approach and supports collaboration and seamless data transfer through the complete value chain in the building process

Nemetschek Group Highlights for Q2 / H1 2015 (1)

Revenue growth accelerated in Q2	Q2: Revenues increased by 33.8% to 68.6 mEUR (previous year: 51.3 mEUR) H1: Revenue increase of 32.2% to 135.2 mEUR (previous year: 102.3 mEUR)  Currency adjusted growth of 26.3% in H1 Acquired Bluebeam contributed 21.0 mEUR in H1 Organic growth of 11.6% in H1 (above target range of 6-9%)
Strong US market – Further focus on internationalization	US revenues more than tripled in H1 Revenue share in the US of 24%  Revenues abroad increased by 47.2% to 90.0 mEUR Revenues share outside of Germany at 66.6% Domestic revenues increased nicely by 9.8% to 45.2 mEUR
Record level of software licenses business	Significant growth of software licenses: +45.6% to record high of 70.4 mEUR in H1  License business will generate more software service business in the future Software services climbed to 58.3 mEUR (+20.3%) New customers and recurring revenues secured

Nemetschek Group Highlights for Q2 / H1 2015 (2)

Profitability on expected level		EBITDA grew by 27.4% to 32.6 mEUR; EBITDA margin at 24.1% as expected No effects on expenses and earnings as a consequence of no own worked capitalized Strategic investments in future growth: Internationalization, BIM-5D competence, intensified sales activities etc.
Increase in EPS (w/o PPA)		Tax rate increased to 32.7% (previous year: 28.6%) Reasons: Higher results in countries with higher tax rate and extraordinary impact due to deferred taxes of unrealized intra-group f/x gains Net income (group shares) showed growth of 7.5% to 15.5 mEUR, EPS at 0.40 EUR Net income w/o PPA increased stronger by 18.7% to 19.1 mEUR, EPS (w/o PPA) accordingly at 0.50 EUR
Strong cash situation and solid balance sheet		Cash flow from operating activities up by 30.5% to 34.0 mEUR Cash and cash equivalents at 65.0 mEUR; net liquidity at 11.0 mEUR Solid balance sheet, Equity ratio of 47.2% - leeway for further investments (organic and in acquisitions)
Share split		Share split in the ratio of 1 to 4 successfully implemented Share capital increased from 9.625.000 to 38.500.000
Outlook confirmed - Revenues at the upper end		H1 figures: Very sound basis for second half 2015 Guidance confirmed: Revenue expected in the target range of 262 to 269 mEUR (+21-23%, thereof organic 6-9%), EBITDA at between 62-65 mEUR

Accelerated revenue growth in the second quarter

in mEUR

• Revenue up by +33.8% to 68.6 mEUR
• Currency-adjusted growth of 27.6%
• Bluebeam contributed 11.0 mEUR

• Organic growth of high 12.3% yoy

• HY 2015 growth to 135.2 mEUR (+32.2%)

• Currency-adjusted growth of 26.3%
• Bluebeam contributed 21.0 mEUR
• Organic growth of 11.6%

Strong growth in the U.S.

Revenues split H1 2015 in %

• USA is becoming an important market: Revenues more than tripled in H1 2015
• Revenue share in the USA increased to 24%
• Home market also developed nicely
• Further growth potential abroad

Strong software license growth (+45.6%)

Revenues split H1 2015 in %

Software licenses

• Up by 45.6% to new record level of 70.4 mEUR
• New customers wins and increasing customer base
• Consequently revenues from software services will follow

Software services

• Up by 20.3% to 58.3 mEUR
• Recurring revenues secured

EBITDA margin on high level despite strategic investments

in mEUR

• EBITDA increased to 32.6 mEUR (+27.4%), EBITDA margin at 24.1%
• Future-oriented investments: Internationalization, BIM 5D competence, intensified sales and marketing activities

Net income and EPS (with and w/o PPA)

• Higher tax rate of 32.7% (previous year: 28.6%)
• Reasons: Increased results in countries with higher tax rates; Deferred tax expenses on unrealized intra-Group foreign exchange gains
• Higher PPA because of Bluebeam acquisition

Segment overview

Stable shareholder structure

• Founded: in 1963
• IPO: March 10, 1999
• Number of shares: 38,500,000
• Frankfurt Stock Exchange, Prime Standard
• Bloomberg: NEM GY, Reuters: NEKG.DE
• Shares Nemetschek family: 53.57%
• Freefloat: 46.43 percent
• Current MarketCap: ~ 1.1 billion EUR
• Current TecDAX Ranking: 24/27

Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of NEMETSCHEK GROUP in the future

Dividend payment of 1.60 EUR per share

Dividend per share in EUR

• Dividend increased by 23% to 0.40 EUR per share
• In total 15.4 mEUR were paid out to the shareholders in May 2015 after the AGM
• Since 2009, we paid more than 64 mEUR in total in the last 6 years

Share price increased stronger than TecDAX and DAX

Time	NEMETSCHEK	TecDAX	DAX
Year 2012	+29%	+18%	+25%
Year 2013	+52%	+38%	+23%
Year 2014	+66%	+18%	+3%
YTD 2015	+36%	+26%	+4%

Outlook 2015

Outlook 2015 – Upper end of revenue target range

 Current situation	 Successful half-year with strong revenue figures
 Market conditions	 Robust development of construction markets  Additional growth coming from trends such as Open BIM, 5D, collaboration, mobile solutions, cloud
 Strategic market positioning	 Clear focus on AEC market  Leading in Open BIM solutions  Strong and independent global brands
 Growth potential/ Investments	 Focus on internationalization (North/Latin America, Asia)  Investments in sales and marketing  Investments in BIM 5D competence  Strategically sound co-operations  Healthy balance sheet

Capable of investing in organic and in inorganic growth

Confirmation of

guidance	in mEUR	FY 2014	Forecast 2015*	Organic*
	Revenues	218.5	262 - 269 (+20%-23%)	+6%-9%
	EBITDA	56.8	62 - 65	-

* USD/EUR plan rate: 1.25

NEMETSCHEK GROUP Stefanie Zimmermann Konrad -Zuse -Platz 1 81829 Munich – Germany investor -relations@nemetschek.com

mEUR	Q2 2015	Q2 2014	% YoY	HY 2015	HY 2014	% YoY
Revenues	68.6	51.3	+33.8%	135.2	102.3	+32.2%
Own work capitalized/ other operating income	0.7	0.7	-10.4%	2.9	1.7	+71.4%
Operating income	69.3	52.0	+33.2%	138.1	103.9	+32.8%
Cost of materials/ purchased services	-2.5	-1.8	+35.8%	-4.5	-3.8	+17.4%
Personnel expenses	-30.9	-22.5	+37.3%	-60.9	-44.5	+36.9%
Other operating expenses	-20.7	-15.3	+35.4%	-40.1	-30.1	+33.3%
Operating costs	-54.0	-39.6	+36.5%	-105.5	-78.4	+34.6%
EBITDA	15.2	12.4	+22.6%	32.6	25.6	+27.4%
Margin	22.2%	24.2%		24.1%	25.0%
Depreciation of PPA and amortization	-4.1	-2.1	+92.4%	-8.3	-4.3	+93.8%
t/o PPA	-2.5	-1.0	+156.4%	-5.1	-2.0	+157.0%
EBITA (normalized EBIT)	13.6	11.3	+21.0%	29.4	23.3	+26.2%
EBIT	11.1	10.3	+8.0%	24.3	21.3	+14.1%
Financial result	-0.1	0.0		0.0	0,0
EBT	11.0	10.3	+6.9%	24.3	21.3	+13.8%
Income taxes	-3.6	-2.9	+23.4%	-8.0	-6.1	+30.2%
Non-controlling interests	-0.4	-0.5		-0.8	-0.8
Net income (group shares)	7.1	6.9	+3.0%	15.5	14.4	+7.5%
EPS in EUR	0.18	0.18*	+3.0%	0.40	0.37*	+7.5%

* for better comparability, earnings per share has been presented after the stock split

mEUR	June 30, 2015	December 31, 2014
Assets
Cash and cash equivalents	65.0	57.0
Trade receivables, net	29.5	28.9
Inventories	0.7	0.7
Other current assets	13.1	11.8
Current assets, total	108.3	98.4
Property, plant and equipment	11.4	10.8
Intangible assets	67.9	68.8
Goodwill	117.0	111.3
Other non-current assets	2.7	2.5
Non-current assets, total	199.0	193.3
Total assets	307.3	291.7

Balance sheet – Equity and liabilities

mEUR	June 30, 2015	December 31, 2014
Equity and liabilities
Short-term borrowings and current portion of long-term loans	12.0	12.0
Trade payables & accrued liabilities	24.1	26.9
Deferred revenue	47.3	32.4
Other current assets	11.3	13.0
Current liabilities, total	94.7	84.3
Long-term borrowings without current portion	42.0	48.0
Deferred tax liabilities	16.7	15.4
Other non-current liabilities	9.0	7.4
Non-current liabilities, total	67.7	70.8
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	95.7	96.6
Other comprehensive income	-3.7	-12.6
Non-controlling interests	2.0	1.6
Equity, total	144.9	136.6
Total equity and liabilities	307.3	291.7

mEUR	June 30, 2015	June 30, 2014	% YoY
Cash and cash equivalents at the beginning of the period	57.0	48.6	+17.3%
Cash flow from operating activities	34.0	26.0	+30.5%
Cash flow from investing activities	-4.0	-1.8	+119.9%
t/o CapEX	-2.6	-1.9	+36.7%
t/o Cash paid for business combinations	-1.6	-0.2
Cash flow from financing activities	-24.7	-14.1	+74.6%
t/o Dividend payments	-15.4	-12.5	+23.1%
FX-effects	2.8	0.1
Cash and cash equivalents at the end of the period	65.0	58.7	+10.7%
Free cash flow(1)	29.9	24.2	+23.7%

(1) Operating cash flow - Investing cash flow

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.