Nemetschek SE

Earnings Release • Oct 31, 2019

University Library Freiburg, Germany

Architects: Degelo Architects, Basel, Switzerland | Image: Andrea Secci | Realized with GRAPHISOFT

Nemetschek Group

Third Quarter I 9 -Month Results 2019 Earnings Call

31 October 2019 | Patrik Heider, Spokesman & CFOO

Key Business Highlights 9M 2019: Excellent Basis for Achieving Upper End of Targets in FY 2019

Strong Performance YTD 2019 M&A / Sale Successes

Recurring revenues: +33.9% Subscription/SaaS revenues: +129.6%

Revenues abroad: +27.9%

EPS: +81.3% to 0.83 EUR

EBITDA margin:

High cash conversion 95.5%

04/2019 Redshift by Maxon Media & Entertainment Division

Sale of minority interest:

08/2019

Value-generating sale of DocuWare with a strong positive one-time effect on EPS in Q3

Top Key Figures Q3 2019: Strongest EBITDA Growth Over the Last Quarters

Top Key Figures 9M 2019: On the Way to Another Record Year

Strong Growth in Recurring Revenues: Subscription is Key Driver

Revenue distribution 9M 2019

Earnings Call Q3 / 9M 2019 31 OCTOBER 2019 5

Internationalization Is Key: Broad Growth Across All Regions

Earnings Call Q3 / 9M 2019

31 OCTOBER 2019 6

Segment Overview: Build Segment Remains in Strong Growth Mode

Revenues in m€

Earnings Call Q3 / 9M 2019

¹ Constant currency

31 OCTOBER 2019 7

Strong Cash Conversion Allows Further Investment in Organic Growth and Strategic M&A

¹ Operating cash flow/EBITDA | ² Previous year = End of 2018

Earnings Call Q3 / 9M 2019

31 OCTOBER 2019 8

Outlook 2019: Reaching the Guidance on the Upper End

			9M 2019	9M 2018	%YoY
138.3	114.9	+20.4%	406.0	330.9	+22.7%
2.4	1.2	+96.0%	5.1	4.3	+17.6%
140.7	116.1	+21.2%	411.1	335.3	+22.6%
-4.7	-3.6	+32.7%	-14.0	-10.2	+37.2%
-60.5	-51.2	+18.1%	-178.1	-145.3	+22.5%
-32.6	-32.0	+1.8%	-99.6	-91.5	+8.9%
-97.9	-86.8	+12.7%	-291.7	-247.0	+18.1%
42.8	29.2	+46.4%	119.4	88.2	+35.4%
30.9%	25.5%		29.4%	26.7%
-10.8	-6.0	+78.6%	-31.0	-16.8	+84.0%
-3.8	0.0		-10.8	0.0
-4.3	-3.8	+12.4%	-12.5	-10.6	+18.1%
36.3	27.0	+34.4%	101.0	82.0	+23.2%
32.0	23.2	+38.0%	88.5	71.4	+23.9%
29.4	-0.1		28.7	0.0
-0.4	0.0		-1.1	0.0
29.9	0.0		29.9	0.0
61.4	23.1	+166.4%	117.1	71.4	+64.1%
-7.4	-6.1	+22.6%	-21.6	-18.6	+16.6%
0.0	1.2		0.1	0.2
54.0	18.2	+197.2%	95.4	52.6	+81.3%
0.47	0.16	+197.2%	0.83	0.46	+81.3%
24.1	18.2	+32.4%	65.5	52.6	+24.5%
0.21	0.16	+32.4%	0.57	0.46	+24.5%

€m	September 30, 2019	December 31, 2018
Assets
Cash and cash equivalents	171.5	120.7
Trade receivables, net	64.5	55.8
Inventories	1.5	1.2
Other current assets	26.1	24.6
Current assets, total	263.5	202.2
Property, plant and equipment	26.5	17.6
Right-of-use assets	66.0	0.0
Intangible assets	134.6	102.1
Goodwill	327.7	244.3
Other non-current assets	11.9	14.3
Non-current assets, total	566.7	378.3
Total assets	830.3	580.6

€m	September 30, 2019	December 31, 2018
Equity and liabilities
Short-term borrowings and current portion of long-term loans	71.3	56.3
Trade payables & accrued liabilities	50.6	53.5
Deferred revenue	127.2	95.1
Current lease liability	12.0	0.0
Other current assets	23.9	17.3
Current liabilities, total	285.0	222.3
Long-term borrowings without current portion	115.4	74.3
Deferred tax liabilities	27.0	17.2
Non-current lease liability	57.8	0.0
Other non-current liabilities	23.8	17.2
Non-current liabilities, total	223.9	108.7
Subscribed capital and capital reserve	128.0	51.0
Retained earnings	199.0	212.1
Other comprehensive income	-5.8	-13.6
Non-controlling interests	0.1	0.1
Equity, total	321.3	249.6
Total equity and liabilities	830.3	580.6

NEMETSCHEK
GROUP

€m	September 30, 2019	September 30, 2018	% YoY
Cash and cash equivalents at the beginning of the period	120.7	104.0	+16.2%
Cash flow from operating activities	114.1	72.1	+58.1%
Cash flow from investing activities	-79.3	-71.1
t/o CapEX	-15.0	-7.8
t/o Cash paid for business combinations	-97.7	-63.3
t/o Cash received from disposal of shares in associate	33.3	0.0
Cash flow from financing activities	13.2	-0.2
t/o Dividend payments	-31.2	-28.9
t/o Repayments of borrowings	-43.6	-29.5
t/o Changes in bank liabilities due to company acquisitions	100.0	86.0
t/o Principal elements of lease payments	-8.3	0.0
FX-effects	2.7	1.9
Cash and cash equivalents at the end of the period	171.5	106.8	+60.6%
Free cash flow1	34.8	1.1
Free cash flow1 (w/o acquisition effects)	132.5	64.4	+105.8%

¹ Operating cash flow – Investing cash flow

Safe Harbor Statement

Each of the presentations today will contain forward -looking statements about our strategies, products, future results, performance or achievements, financial, operational and otherwise, including statements about our strategic priorities, guidance and our mid -term goal, our M&A strategy, and our capital allocation initiatives. These statements reflect management's current expectations, estimates and assumptions based on the information currently available to us. These forward -looking statements are not guaranteeing of future performance and involve significant risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by the forward -looking statements contained in these presentations.

Nemetschek undertakes no obligation to publicly update or revise any forward -looking statements. All forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward -looking statements, which speak only as of their dates.

Contact

NEMETSCHEK SE Investor Relations

Konrad -Zuse -Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com