Nemetschek SE

Earnings Release • Jul 29, 2016

NEMETSCHEK GROUP Financial Results Q2 | H1 2016

July 29th, 2016

Nemetschek Group Highlights for Q2|H1 2016 (1)

Revenue growth accelerated in Q2	Dynamic development continued with record levels in Q2 and first half  Revenues Q2: increase by 22.2% to 83.8 mEUR (organic growth of 20.9%) H1: up by 19.5% to 161.5 mEUR (organic growth of 18.3%) Revenues
Strong revenue increase abroad	Revenues abroad increased by 22.0% to 109.7 mEUR  Revenues share outside of Germany at 68%, Americas at 25.0% Further focus on global expansion (Asia and Americas)
Double-digit growth in license and recurring revenues	Software licenses showed growth 21.9% to 85.8 mEUR  License revenue share of 53.1% Recurring revenues also in growth mode with 16.1% to 67.7 mEUR
Positive one-time effect	 One-time gain of +1.9mEUR in other operating income from a legal dispute with a former member of the Executive Board
Profitability increased significantly	Q2 EBITDA: up by 61.5% to 24.6 mEUR, EBITDA margin of 29.3% effect: up by 49.0% to 22.7 mEUR, EBITDA margin of 27.1% Q2 EBITDA w/o one-time  H1 EBITDA: up by 39.9% to 45.6 mEUR, EBITDA margin of 28.2% EBITDA w/o one-time effect: up by 34.1% to 43.7 mEUR, EBITDA margin of 27.0% H1 No activation of development costs - no effects on expenses and earnings

Nemetschek Group Highlights for Q2|H1 2016 (2)

Significant growth of net income and EPS		Net income: strong growth of 85.1% to 13.1 mEUR. EPS at 0.34 EUR Q2 Q2 Net income w/o one-time effect: up by 66.3% to 11.8 mEUR, EPS at 0.31 EUR H1 Net income: up by 56.1% to 24.2 mEUR, EPS at 0.63 EUR Net income w/o one-time effect: up by 47.5% to 22.9 mEUR, EPS at 0.59 EUR H1
Net income w/o PPA		H1 net income w/o PPA: up by 47.1% to 28.0 mEUR, EPS at 0.73 EUR H1 net income w/o PPA and w/o one-time effect: up by 40.1% to 26.7 mEUR, EPS at 0.69 EUR
Solid balance sheet		after the AGM 2016 on May 20th Dividend payment of 19.25 mEUR Cash at 84.9 mEUR and net liquidity at 13.5 mEUR Equity ratio of 44.0% - leeway for further investments / acquisitions
Optimistic outlook: Upper end of guidance		H1 is a very strong basis for FY 2016 New record levels of revenues and EBITDA are expected in FY 2016 Outlook now confirmed at upper end of revenue and EBITDA range (w/o acquisition): Revenue target range of 319-325 mEUR, up by +12%-14% (thereof organic: +11%-13%) EBITDA target range of 77-80 mEUR
Acquisition of Design Data		Acquisition of a leading US provider of BIM 3D modeling software for steel structures Perfect fit to close the gap as a multi-material software supplier for concrete and steel Increase revenue share and BIM image in the US Set the structure for Design Data to grow in Europe

Top news: Acquisition of Design Data

Facts	Based in Lincoln/Nebraska, USA With 65 employees Design Data serves 4,000 customers  Revenues (last 12 months): approximately 10 mUSD Purchase price: 46.4 mUSD, plus earn-out component of 2.5 mUSD Payment via bank loan of 42 mUSD and cash reserves
USP	Leading provider of BIM software solutions for the structural steel detailing industry  Flagship product "SDS/2 Detailing" offers highest level of automation and intelligence available on the market
Strategic fit	Filling the last gap in the solution portfolio with the engineering detailing software for steel Nemetschek rounds off its competence as a multi-material provider (steel and concrete)  International market presence and US image as an Open BIM provider will significantly increase At the same time Design Data will profit in Europe where Nemetschek has already a leading market position with its engineering solution for concrete construction

Accelerated Revenue Growth in the Second Quarter

in mEUR

Organic growth of high 20.9% yoy Organic growth of 18.3%

Solibri contributed around 2 mEUR

International Growth in Focus

Revenues split H1 2016 in %

• Strong growth of 22.0% abroad
• Growth markets:
• Americas
• Asia (China, Japan)
• Nordics
• Further growth potential abroad

Licenses and Recurring Revenues Shows Double-Digit Growth

Software license revenues

• Up by 21.9% to 85.8 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

Recurring revenues*

• Up by 16.1% to 67.7 mEUR
• Increasing visibility

* Software services, rental models (subscription, SaaS)

EBITDA Increased Stronger than Revenues

EBITDA is shown with and w/o the positive one-time effect of 1.9 mEUR

EBITDA margin improved significantly

Net Income and EPS Showed Significant Growth

Change

Net Income and EPS w/o PPA

19,1 26,7 28,0 Change +40.1% H1 2015 H1 2016 +47.1% EPS w/o PPA in EUR 0,50 0,69 0,73 +40.1% H1 2015 H1 2016 +47.1% Net income w/o PPA in mEUR * Net income and EPS w/o 1.9 mEUR positive one-time effect * *

All Segments with Two-Digit Growth Rates

Design	Build	Manage	Media & Entertainment
Two-digit revenue growth in Q2	Growth of 41% in Q1 continued	Strong growth in Q2 with 28%	Growth of 27% in Q2 because
with 16%	in Q2	EBITDA margin improved year	of 30th anniversary edition
EBITDA margin improved	Inorganic effect of Solibri	on year	Planned investments have
significantly	around 2 mEUR		impact on margins
	Organic growth of 35%

Cash Flow Situation

in mEUR

EBITDA

+39.9% yoy

Operating cash flow

• Adjusted operating cash flow: 40.0 mEUR, that corresponds to an increase of 17.9% yoy
• One-time effects of 3.5 mEUR in trade receivables and 1.9 mEUR in other assets

Investing cash flow

Capex of 3.2 mEUR

Cash flow from financing activities

• Repayment of bank loan (-9.2 mEUR)
• Dividend payment (-19.25 mEUR)

Conversion rate***

• 76% (previous year: 104%)
• Adjusted conversion rate (w/o one-time effects: 1.9 mEUR and 3.5 mEUR): 88%
• * Adjusted operating cash flow due to one-time effects of 3.5 mEUR resulting from later payments (July 2016) of customers compared to previous year and 1.9 mEUR from legal dispute)
• ** End of FY 2015
• *** Operating cash flow / EBITDA

Optimistic Outlook 2016: Guidance now Confirmed at Upper End

Current situation Market conditions Strong basis due to the strong H1 figures Robust development of construction markets Additional growth coming from BIM regulations and trends such as Open BIM, 5D, collaboration, platform technologies, mobile solutions etc. 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, Europe) Investments in new markets, customer segments, sales & marketing Strategically co-operations & acquisitions Healthy balance sheet - capable of investing in organic and in inorganic growth Guidance 2016 confirmed at upper end Optimistic outlook for the second half of 2016 Expect record levels in revenues and EBITDA Upper end of the guidance will be achieved

in mEUR	FY 2015	Forecast 2016*	Organic
Revenues	285.3	319 - 325 (+12%-14%)	+11%-13%
EBITDA	69.5	77 - 80	-

* USD/EUR plan rate: 1.11

P+L Statement Q2 / H1 2016 Comparison

mEUR	Q2 2016	Q2 2015	% YoY	HY 2016	HY 2015	% YoY
Revenues	83.8	68.6	+22.2%	161.5	135.2	+19.5%
Own work capitalized/other operating income	3.5	0.7	+435.9%	4.6	2.9	+61.0%
Operating income	87.3	69.3	+26.0%	166.1	138.1	+20.4%
Cost of materials/ purchased services	-2.6	-2.5	+7.7%	-5.0	-4.5	+12.9%
Personnel expenses	-36.2	-30.9	+17.1%	-71.2	-60.9	+16.9%
Other operating expenses	-23.9	-20.7	+15.5%	-44.3	-40.1	+10.5%
Operating costs	-62.7	-54.0	+16.1%	-120.6	-105.5	+14.3%
EBITDA	24.6	15.2	+61.5%	45.6	32.6	+39.9%
Margin	29.3%	22.2%		28.2%	24.1%
EBITDA (w/o one-time effect)	22.7	15.2	+49.0%	43.7	32.6	+34.1%
Margin (w/o one-time effect)	27.1%	22.2%		27.0%	24.1%
Depreciation of PPA and amortization	-4.4	-4.1	+7.1%	-8.8	-8.3	+7.0%
t/o PPA	-2.7	-2.5	+6.6%	-5.4	-5.1	+6.3%
EBITA (normalized EBIT)	22.9	13.6	+67.7%	42.1	29.4	+43.4%
EBIT	20.2	11.1	+81.6%	36.8	24.3	+51.1%
Financial result	-0.3	-0.1		-0.5	0.0
EBT	19.9	11.0	+80.7%	36.3	24.3	+49.9%
Income taxes	-6.2	-3.6	+74.6%	-11.0	-7.9	+38.5%
Non-controlling interests	0.6	0.4	+56.9%	1.1	0.8	+30.6%
Net income (group shares)	13.1	7.1	+85.1%	24.2	15.5	+56.1%
EPS in EUR	0.34	0.18	+85.1%	0.63	0.40	+56.1%
Net income (group shares w/o one-time effect)	11.8	7.1	+66.3%	22.9	15.5	+47.5%
EPS in EUR (w/o one-time effect)	0.31	0.18	+66.3%	0.59	0.40	+47.5%

mEUR	June 30, 2016	December 31, 2015
ASSETS
Cash and cash equivalents	84.9	84.0
Trade receivables, net	37.3	29.6
Inventories	0.6	0.5
Other current assets	16.8	11.8
Current assets, total	139.6	125.9
Property, plant and equipment	13.9	13.8
Intangible assets	93.7	100.8
Goodwill	133.5	134.9
Other non-current assets	4.7	4.1
Non-current assets, total	245.8	253.6
Total assets	385.4	379.5

Balance Sheet – Equity and Liabilities

mEUR	June 30, 2016	December 31, 2015
EQUITY AND LIABILITIES
Short-term borrowings and current portion of long-term loans	18.5	18.6
Trade payables & accrued liabilities	29.2	32.2
Deferred revenue	53.5	42.0
Other current assets	17.5	11.4
Current liabilities, total	118.6	104.1
Long-term borrowings without current portion	53.0	62.1
Deferred tax liabilities	23.9	24.3
Other non-current liabilities	20.3	22.1
Non-current liabilities, total	97.2	108.5
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	121.2	116.3
Other comprehensive income	-4.6	-2.5
Non-controlling interests	1.9	2.1
Equity, total	169.5	166.9
Total equity and liabilities	385.4	379.5

mEUR	June 30, 2016	June 30, 2015	% YoY
Cash and cash equivalents at the beginning of the period	84.0	57.0	+47.4%
Cash flow from operating activities	34.6	34.0	+2.0%
Cash flow from investing activities	-3.0	-4.0	-25.5%
t/o CapEX	-3.2	-2.6	+25.1%
t/o Payments for acquisition of non-controlling interests	0	-1.6
Cash flow from financing activities	-30.1	-24.7	+21.7%
t/o Dividend payments	-19.3	-15.4	+25.0%
t/o Repayments of borrowings	-9.2	-6.0
FX-effects	-0.6	2.8
Cash and cash equivalents at the end of the period	84.9	65.0	+30.7%
Free cash flow(1)	31.6	29.9	+5.7%

(1) Operating cash flow – Investing cash flow

Contact

NEMETSCHEK SE

Investor Relations Konrad-Zuse-Platz 1 81829 Munich Germany investorrelations@nemetschek.com 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.

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