Nemetschek SE — Earnings Release 2021

Apr 29, 2021

Queen's Wharf, Brisbane, Australia

Architects: Cottee Parker Architects | Picture: Destination Brisbane Consortium | Realized with Bluebeam, dRofus, Graphisoft & Bluebeam

Earnings Call Q1 -21

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

01 Financial Results Q1 -21

Key Business Highlights Q1-21: Strong Start to the Year

Solid Financial Performance

3 APRIL 2021 Earnings Call Q1-21

Strong Underlying Business Despite FX Headwind

• Underlying growth back at levels prior to Covid-19
• FX headwind mainly driven by weakening USD
• Nemetschek generates ~45% of its revenues in USD
• Effect on Margin: Slightly negative but mainly translational

Strong Growth in Recurring Revenues: Subscription is Key Driver

Revenue share by Type in % (previous year)

5 APRIL 2021 Earnings Call Q1-21

At a Glance: Income Statement and Important KPIs

		In % of
Key Figures mEUR	Q1-21	revenue	Q1-20	Growth y/y
Revenues	158.4	-	146.6	+8.1%
Cost of materials/cost of purchased services	-6.7	4.2%	-5.1	+31.4%
Personnel expenses	-69.5	43.9%	-65.5	+6.0%
Other operating income/expenses	-32.7	20.6%	-34.2	-4.4%
EBITDA	49.6	31.3%	41.8	+18.5%
EBITDA margin	31.3%	-	28.5%	+280bps
D&A (incl. PPA)	-10.8	6.8%	-12.6	-14.4%
EBIT	38.8	24.5%	29.2	+32.6%
EBIT margin	24.5%	-	19.9%	+460bps
Net income (group shares)	29.4	18.6%	21.4	+37.5%
EPS	0.25	-	0.19	+37.5%
Operating cash flow	60.5	-	43.1	+40.4%
Free cash flow (ex M&A)	58.8	-	40.5	+45.1%
Equity ratio in %	48.7%	-	43.3%	-
Net Cash	64.8	-	9.0	-

Segment Overview: Strong Recovery in Design

• Graphisoft with largest contribution to revenue and margin increase
• Organic growth licenses: +13%
• Strong FX headwind from USD
• Org. growth recurring revenues: +16%
• Q1: Expected slow start to the year due to ongoing cautious investments of facility managers

• EBITDA margin: ongoing investments in future growth

• Q1-21: Strong growth purely organic

• Q1-20: Margin negatively impacted by Maxon's move to subscription and integration of Redshift and Red Giant

7 APRIL 2021

02 Summary & Outlook

Crown Sydney, Sydney, Australia

Rendereing: Floodslicer | Realized with Bluebeam

Outlook 2021: Confirmed after the First Quarter

Ambition 2023

Mid-teens growth starting in 2023 and following the successful Subscription/SaaS transition

Share of Recurring Revenues: ~ 75% (t/o Share of Subscription/SaaS ~ 45%)

Earnings Call Q1-21

9 APRIL 2021

Summary Q1-21 - Strong start to the year

Q1-21:

• Recovery in construction industry and recurring revenues were main growth drivers
• High Q1 profitability:
• Better than excepted growth & ongoing cost savings (travel, trade fairs etc.) due to Covid-19
• Margin level will be impacted by Bluebeam's SaaS transition in H2-21, first impacts in Q4, start of add'l KPIs
• Q1 builds a strong basis for a successful overall financial year 2021!

Long-term view:

• Long-term structural growth drivers (low degree of digitalization, regulations, ESG) intact
• Continued progress on strategic initiatives (e. g. harmonization, subscription)
• Upcoming events: AGM (May 12), Q2-21 Reporting (July 29)
• Nemetschek is well positioned for the future, incl. continued attractive financial returns!

Income Statement

€m	Q1 2021	Q1 2020	%YoY
Revenues	158.4	146.6	+8.1%
Other operating income	1.5	4.0	-62.1%
Operating income	159.9	150.6	+6.2%
Cost of materials/purchased services	-6.7	-5.1	+31.4%
Personnel expenses	-69.5	-65.5	+6.0%
Other operating expenses	-34.2	-38.2	-10.3%
Operating expenses	-110.4	-108.8	+1.5%
EBITDA	49.6	41.8	+18.5%
Margin	31.3%	28.5%
Depreciation and amortization	-10.8	-12.6	-14.4%
t/o Right -of -use assets	-3.7	-3.9	-6.7%
t/o PPA	-4.9	-6.4	-22.8%
EBIT	38.8	29.2	+32.6%
Financial result	-1.0	-0.5
t/o IFRS 16	-0.3	-0.4	-11.2%
EBT	37.7	28.7	+31.5%
Income taxes	-7.9	-7.2	+9.7%
Non -controlling interests	0.4	0.1
Net income (group shares)	29.4	21.4	+37.5%
EPS in EUR	0.25	0.19	+37.5%

Balance Sheet – Assets

€m	March 31, 2021	December 31, 2020
Assets
Cash and cash equivalents	177.4	139.3
Trade receivables, net	66.6	64.6
Inventories	0.8	0.6
Other current assets	37.0	31.8
Current assets, total	281.9	236.4
Property, plant and equipment	21.3	21.6
Right-of-use assets	60.6	61.3
Intangible assets	137.8	138.2
Goodwill	429.4	416.7
Other non-current assets	16.6	15.5
Non-current assets, total	665.8	653.3
Total assets	947.7	889.7

Balance Sheet – Equity and Liabilities

€m	March 31, 2021	December 31, 2020
Equity and liabilities
Short-term borrowings and current portion of long-term loans	47.8	59.6
Trade payables & accrued liabilities	55.7	67.5
Deferred revenue	164.9	129.5
Current lease liability	13.7	13.4
Other current assets	33.8	25.9
Current liabilities, total	315.8	295.8
Long-term borrowings without current portion	64.9	70.7
Deferred tax liabilities	25.6	25.2
Non-current lease liability	53.5	54.3
Other non-current liabilities	26.2	26.4
Non-current liabilities, total	170.2	176.6
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	345.0	315.3
Other comprehensive income	-25.9	-39.4
Non-controlling interests	14.6	13.4
Equity, total	461.7	417.3
Total equity and liabilities	947.7	889.7

Earnings Call Q1-21

15 APRIL 2021

Cash Flow Statement

€m	March 31, 2021	March 31, 2020	% YoY
Cash and cash equivalents at the beginning of the period	139.3	209.1	-33.4%
Cash flow from operating activities	60.5	43.1	+40.4%
Cash flow from investing activities	-3.9	-81.7
t/o CapEX	-1.7	-2.6
t/o Cash paid for acquisition of subsidiaries, net of cash acquired	-2.2	-79.1
Cash flow from financing activities	-22.1	-17.5
t/o Repayments of borrowings	-17.8	-13.6
t/o Principal elements of lease payments	-3.7	-3.1
FX-effects	3.7	-0.4
Cash and cash equivalents at the end of the period	177.4	152.7	+16.2%
Free cash flow1	56.6	-38.6	+246.6%
Free cash flow1 (w/o acquisition effects)	58.8	40.5	45.1%

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.

Ülemiste train station, Tallin, Estonia

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