Nemetschek SE

Earnings Release • Jul 31, 2015

Financial Results Q2 / H1 2015 July 31st, 2015

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

Design Design segment showed positive development in H1 Strategic investments to secure future growth (employees, internationalization)		Build Bluebeam is growth driver (21.0 mEUR contribution) H1 2015 organic growth of 6.2%; Q2 2015 organic growth of 14% Stable margin situation; further investments in BIM 5D competence		Manage Continued revenue growth (+11.3%) Margin decline because of growth investments		Media & Entertainment Successful development in H1 Very high margin situation – planned investments in new customer segments etc. will have impact on margins
		94,0
Revenues in mEUR	84,6 84,6		7,1	28,6			8,2	10,0
					2,4	2,7
	H1 2014	H1 2015	H1 2014	H1 2015	H1 2014	H1 2015	H1 2014	H1 2015
Change		+11.1%		+301.1%		+11.3%		+21.9%
EBITDA Margin	24.0%	23.1%	22.6%	22.1%	14.4%	11.0%	41.0%	43.1%

Cash flow situation

32,6 EBITDA

+27.4% yoy

Operating cash flow

+30.5% yoy

Investing cash flow

• Higher Capex with 2.6 mEUR
• Investment in distribution network in Italy

Cash flow from financing activities

• Repayment of bank loan (6.0 mEUR)
• Dividend payment (15.4 mEUR)

Net liquidity

Leeway to grow organically and via acquisitions

Conversion rate

104% (previous year: 102%)

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

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

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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

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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

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Contact

NEMETSCHEK AG Investor Relation Konrad-Zuse-Platz 1 D-81829 Munich Germany E-mail contact@nemetschek.com www.nemetschek.com

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 forwardlooking statements.