Nemetschek SE — Earnings Release 2021

Jul 29, 2021

Queen's Architects: Cottee

Parker Architects

| Picture: Destination Brisbane Consortium

| Realized with

Bluebeam, dRofus, Graphisoft

& Bluebeam

Wharf, Brisbane, Australia

Earnings Call Q2 -/ H1 -21

July 29 2021 | Dr. Axel Kaufmann, Spokesman & CFOO

01 Financial Results Q2 -/ H1 -21

with Maxon

Top Key Figures Q2-2021: Record Quarter Across the Board

3 Earnings Call Q2-/ H1-21 JULY 2021

¹ Constant currency

Key Business Highlights H1-21: Excellent First Half of the Year due to Operational Strength

Financial Performance

Strategic Highlights

Value accretive M&A and Venture Investments

• Successful integration of acquisitions Red Giant and Redshift in Maxon
• Start-up Investments: Reconstruct, Sablono

Continued Progress on Harmonization

• Precast integration into Allplan
• Allplan & SDS2 join forces

Subscription/SaaS

Growth underpins success of segment-tailored subscription strategy

4 JULY 2021 Earnings Call Q2-/ H1-21

Continued Strong Growth in Subscription/SaaS

Revenue Share by Type in %

Earnings Call Q2-/ H1-21 5 JULY 2021

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	Q2 2021	Q2 YoY	H1-2021	H1 YoY	in % of revenue
Revenues	165.9	+17.2%	324.3	+12.5%	100.0%
Cost of materials/cost of purchased services	-5.6	-5.9%	-12.3	+11.3%	3.8%
Personnel expenses	-70.8	+10.5%	-140.2	+8.2%	43.2%
Other operating income/expenses	-33.1	+7.5%	-65.9	+1.3%	20.3%
EBITDA	56.3	+38.3%	105.9	+28.3%	32.7%
EBITDA margin	34.0%	+520bps	32.7%	+400bps	-
D&A (incl. PPA)	-14.1	+14.2%	-24.9	-0.2%	7.7%
EBIT	42.3	+48.8%	81.0	+40.6%	25.0%
EBIT margin	25.5%	+540bps	25.0%	+500bps	-
Net income (Group shares)	33.1	+56.9%	62.6	+47.1%	19.3%
EPS	0.29	+56.9%	0.54	+47.1%	-
Operating cash flow	45.3	+28.8%	105.8	+35.2%	-
Free cash flow (ex M&A)	35.0	+5.8%	93.8	+27.5%	-
Equity ratio in %	49.3%	-	49.3%	-	-
Net debt (liquidity)	59.7	-	59.7	-	-

6 Earnings Call Q2-/ H1-21 JULY 2021

Q2-21 Segment Overview: Strong Operational Performance in all Divisions

• Acceleration of license growth: +36% (vs. +13% in Q1-21)
• highest increase in new users in company's history
• Strong growth despite continued FX headwind from USD
• +15.6% (vs. 9.2% in Q1)
• Margin uplift after successful integration of acquisitions Red Giant and Redshift

02 Outlook & Summary

Crown Sydney, Sydney, Australia

Rendereing: Floodslicer

| Realized with Bluebeam

Market Overview: Strong Demand for our Products Across the Entire Construction Market

Earnings Call Q2-/ H1-21

9 JULY 2021

Increased Guidance 2021: Upgrade after Strong Operational Performance in H1

Outlook 2021:

Please note: The outlook is based on the assumption that there will be no deterioration in the economic conditions in the second half of 2021 and that the Corona pandemic will continue to be under control.

Summary H1-21 – Excellent First Half of the Year

H1-21:

• Strong market position and innovative software solutions spur growth and market share gains
• High H1 profitability: Strong growth and higher efficiency leads to high operating leverage
• Updated Guidance based on:
  • − Strong operational performance in H1
  • − Bluebeam with more conservative transition in 2022 in order to:
    • − Benefit from record growth in new users
    • − Maximize customer value by extended subscription testing with selected customers

Long-term View:

• Long-term structural growth drivers unchanged
• Strong market position, products & customer relationships
• Continued progress on strategic initiatives
  • − Further optimization of organizational structure
  • − First venture investments in promising start-ups

H1 builds a strong basis for a successful financial year 2021

As a leading AEC software company, Nemetschek is well positioned for future growth

Income Statement

€m	H1 2021	H1 -2020	%YoY
Revenues	324.3	288.2	+12.5%
Other operating income	4.2	4.8	-13.1%
Operating income	328.5	293.0	+12.1%
Cost of materials/purchased services	-12.3	-11.0	+11.3%
Personnel expenses	-140.2	-129.6	+8.2%
Other operating expenses	-70.1	-69.8	+0.3%
Operating expenses	-222.6	-210.4	+5.8%
EBITDA	105.9	82.6	+28.3%
Margin	32.7%	28.7%
Depreciation and amortization	-24.9	-25.0	-0.2%
t/o Right -of -use assets	-7.4	-7.9	-6.0%
t/o PPA	-12.8	-12.5	+1.7%
EBIT	81.0	57.6	+40.6%
Financial result	-2.1	-1.1	+94.0%
t/o IFRS 16	-0.7	-0.8	-11.2%
EBT	78.9	56.5	+39.6%
Income taxes	-15.5	-13.8	+12.9%
Non -controlling interests	0.8	0.2
Net income (group shares)	62.6	42.5	+47.1%
EPS in EUR	0.54	0.37	+47.1%

Balance Sheet – Assets

€m	June 30, 2021	December 31, 2020
Assets
Cash and cash equivalents	167.5	139.3
Trade receivables, net	63.3	64.6
Inventories	0.7	0.6
Other current assets	35.3	31.8
Current assets, total	266.9	236.4
Property, plant and equipment	20.9	21.6
Right-of-use assets	60.3	61.3
Intangible assets	134.8	138.2
Goodwill	421.8	416.7
Other non-current assets	23.3	15.5
Non-current assets, total	661.1	653.3
Total assets	928.0	889.7

Balance Sheet – Equity and Liabilities

€m	June 30, 2021	December 31, 2020
Equity and liabilities
Short-term borrowings and current portion of long-term loans	59.0	59.6
Trade payables & accrued liabilities	59.0	67.5
Deferred revenue	157.3	129.5
Current lease liability	13.8	13.4
Other current assets	34.6	25.9
Current liabilities, total	323.7	295.8
Long-term borrowings without current portion	48.8	70.7
Deferred tax liabilities	25.2	25.2
Non-current lease liability	52.8	54.3
Other non-current liabilities	20.1	26.4
Non-current liabilities, total	147.0	176.6
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	343.4	315.3
Other comprehensive income	-28.3	-39.4
Non-controlling interests	14.2	13.4
Equity, total	457.3	417.3
Total equity and liabilities	928.0	889.7

Earnings Call Q2-/ H1-21

16 JULY 2021

Cash Flow Statement

€m	June 30, 2021	June 30, 2020	% YoY
Cash and cash equivalents at the beginning of the period	139.3	209.1	-33.4%
Cash flow from operating activities	105.8	78.2	+35.2%
Cash flow from investing activities	-14.2	-88.3
t/o Cash paid of other investments	-6.7	0.0
t/o CapEX	-3.8	-4.7
t/o Cash paid for acquisition of subsidiaries, net of cash acquired	-2.2	-83.7
Cash flow from financing activities	-66.3	-67.4	-1.6%
t/o Dividend payments	-34.7	-32.3
t/o Cash received from bank loan	13.0	0.0
t/o Repayments of borrowings	-35.7	-27.3
t/o Principal elements of lease payments	-7.4	-6.4
FX-effects	2.9	-1.5
Cash and cash equivalents at the end of the period	167.5	130.2	+18.7%
Free cash flow1	91.6	-10.1
Free cash flow1 (w/o acquisition effects)	93.8	73.6	+27.5%

¹ Operating cash flow – Investing cash flow

17 JULY 2021

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.

Ülemiste train station, Tallin, Estonia

Architects: 3+1 Architects | Image: 3+1 Architects | Realized with Vectorworks