Nemetschek SE — Earnings Release 2021

Mar 22, 2022

Earnings Call Q4- / FY-2021

Nemetschek Group

22 March 2022

Agenda

1 Introduction & Welcome Yves Padrines

Financial Results Q4- / FY-2021

3

Update Subscription Transition

Outlook: 2022

5 Appendix

Introduction Yves Padrines & New Board Structure

Yves Padrines:

"Building on a strong foundation, I am here to lead Nemetschek to its next phase of growth as well as to continue building on its impressive success."

Financial Results Q4- / FY-2021 ⁰²

Strategic Highlights FY-21

Start-up Investments / M&A

Design:

• Venture investment in Imerso (Digital Twins for Property Development)

Build:

• Venture investments in Sablono (real-time project controls across time, quality and costs)
• Venture investments in Reconstruct (remote Quality Control & Measurable Progress Monitoring)

M&E:

• Acquisition of Pixologic to strengthen

Operational Excellence

Design:

• Allplan and SDS2 join forces
• Brands Graphisoft and Data Design System merge

Build:

• dRofus now part of Build segment that will greatly benefit from dRofus' deep understanding of construction data management and BIM-based collaboration

M&E:

• Full-fledged integration of Redshift & Red Giant into Maxon
• Successful subscription transition completed

portfolio for huge metaverse market Innovation & Technological Leadership

Build:

• Increased cloud and mobile capabilities for subscription transition

M&E:

• Flagship product Maxon ONE - complete suite to expand customer segments

Manage:

• Smart Building Digital Twin / Energy Intelligence Digital Twin
• Expanding position as one of the leading building IoT platform vendors¹

Top key figures Q4-21: Strong Finish of the Year

Key Business Highlights FY-2021: Strong Growth Combined with High Profitability

Outstanding Financial Performance

Record High: Share of Recurring and Subscription/SaaS Revenues

FY-21 Segment Overview: Strong Momentum in M&E and Build

Update Subscription Transition ⁰³

The Why: Rationale and Benefits

Value proposition of a subscription business…

… from a Customer's Perspective …from a Company's Perspective

No need for big upfront investment (Capex to Opex)

Service mentality and product quality important for customer retention

Constant product innovation throughout the year

Higher flexibility Higher revenue per customer

Potential to address new customer groups

Higher visibility based on more predictable revenues

Better upselling opportunity leads to higher customer lifetime value

Key Points

• Subscription/SaaS will be the main driver of higher recurring revenues share in the coming years
• Main Subscription/SaaS drivers:
• Bluebeam Subscription transition (expected to start in H2-22)
• Above group average growth of Media & Entertainment

Bluebeam Subscription Transition: Roadmap

2020 ongoing • Companywide SaaS & subscription business readiness • Initial pilots of new cloud and mobile solutions	Q2-21	Historically strong user growth coupled with key learnings from pilots of new cloud and mobile capabilities validated shift of subscription transition to 2022		Q3-24/Q1-25 • Transition to SaaS & subscription business completed • Bluebeam Subscription Share: ~90%
2019	2020	2021	2022	2025
	2021 ongoing • test customers • business readiness	Expanded pilots of cloud and mobile solutions with selected Continued SaaS & subscription	Q3-22 • New • Existing	customers: Start of subscription-only offerings phased globally by route-to-market and region customers: Encouraged to transition based on SaaS & subscription benefits, but can still choose to add users to existing license contract for a limited time period

The How: New Features to Increase the Customer Value

Rover

Rover enables effortless management of punch/snagging, RFIs, and submittals on the go. The new, easy-to-use project and field management solution enables easy project and workflow management.

Atlas

Pilot Offerings

Atlas was created to give project team members quick access to information in the field with a single app, using a whole project view to share that information by location quickly and in context.

Bluebeam Cloud

Multiple tiers, all including versions of Revu desktop plus new cloud collaboration features are introduced. Capabilities piloted with Rover & Atlas are included in select packages with additional construction workflows to enable upsell and increase value propositions.

Transition KPIs for the Nemetschek Group

Group Level KPIs

Annual Recurring Revenue (ARR)

➢ Definition:

Includes all types of recurring revenue streams (i.e. subscription, SaaS, maintenance)

➢ Definition: Revenue (Sub./SaaS and SSA)/Total Revenue Revenue (Sub. and SaaS)/Total Revenue

ARR will be provided with the start of Bluebeam's transition in Q3-22

Outlook FY-22

Huge Market Potential: Positive Outlook for 2022 and the Long-Term

Sub-Markets

Outlook 2022: Continued Growth During Subscription Transition

2021

Revenue:

EUR 681.5 m

EBITDA Margin:

32.6%

1. Huge Market Potential

• AEC/O and M&E TAM > EUR 45bn
• Strong structural growth drivers (e.g. digitalization, regulation, demand for digital content)

2. Nemetschek - A Market Leader

• Product offering along the entire building lifecycle (BLI)
• Best in class products in M&E
• Address new technological trends (e.g. Digital Twins, Metaverse, AI, VR/AR)

3. Subscription Transition

• Segment-tailored subscription strategy
• Strategically phased transition
• Highly successful transition in M&E

Building blocks to achieve our 2022 guidance

Income Statement

€m	Q4 2021	Q4 2020	% YoY	12M 2021	12M 2020	%YoY
Revenues	187.9	160.1	+17.4%	681.5	596.9	+14.2%
Other income	3.6	2.9	+26.8%	9.8	10.2	-3.3%
Operating income	191.5	162.9	+17.5%	691.3	607.1	+13.9%
Cost of materials/purchased services	-7.3	-6.5	+11.3%	-25.3	-23.7	+7.0%
Personnel expenses	-79.4	-70.7	+12.3%	-292.0	-267.1	+9.3%
Other expenses	-43.1	-42.7	+0.9%	-152.0	-144.0	+5.5%
Operating expenses	-129.8	-119.9	+8.2%	-469.3	-434.8	+7.9%
EBITDA	61.7	43.0	+43.5%	222.0	172.3	+28.8%
Margin	32.9%	26.9%		32.6%	28.9%
Depreciation and amortization	-12.7	-12.6	+1.1%	-50.0	-49.8	+0.4%
t/o right-of-use assets	-3.8	-3.8	+0.6%	-14.9	-15.5	-3.4%
t/o PPA	-6.3	-6.0	+4.9%	-25.4	-24.5	+3.8%
EBIT	49.0	30.4	+61.1%	172.0	122.5	+40.4%
Financial result	-0.3	-0.7	-61.7%	-1.4	-2.5	-45.1%
t/o IFRS 16	-0.3	-0.3	-9.4%	-1.3	-1.4	-9.7%
EBT	48.7	29.7	+64.1%	170.6	120.0	+42.2%
Income taxes	-10.1	-0.3	> +100%	-33.7	-22.3	+50.9%
Non-controlling interests	0.8	0.1	> +100%	2.3	0.7	> +100%
Net income (group shares)	37.8	29.2	+29.5%	134.6	96.9	+38.9%
EPS in EUR	0.33	0.25	+29.5%	1.17	0.84	+38.9%

Balance Sheet – Assets

€m	December 31, 2021	December 31, 2020
Assets
Cash and cash equivalents	157.1	139.3
Trade receivables, net	70.1	64.6
Inventories	0.9	0.6
Other current assets	35.0	31.8
Current assets, total	263.1	236.4
Property, plant and equipment	20.7	21.7
Right-of-use assets	59.2	61.3
Intangible assets	158.9	138.2
Goodwill	524.0	416.7
Other non-current assets	28.2	15.5
Non-current assets, total	791.1	653.3
Total assets	1,054.2	889.7

Balance Sheet – Equity and Liabilities

€m	December 31, 2021	December 31, 2020
Equity and liabilities
Short-term borrowings and current portion of long-term loans	93.8	59.6
Trade payables & accrued liabilities	83.0	67.5
Deferred revenue	158.0	129.5
Current lease liability	14.1	13.4
Other current assets	35.7	25.9
Current liabilities, total	384.5	295.8
Long-term borrowings without current portion	34.9	70.7
Deferred tax liabilities	20.6	25.2
Non-current lease liability	52.0	54.3
Other non-current liabilities	20.5	26.4
Non-current liabilities, total	128.0	176.6
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	415.4	315.3
Other comprehensive income	-17.5	-39.4
Non-controlling interests	15.8	13.4
Equity, total	541.7	417.3
Total equity and liabilities	1,054.2	889.7

Cash Flow Statement

€m	December 31, 2021	December 31, 2020	% YoY
Cash and cash equivalents at the beginning of the period	139.3	209.1	-33.4%
Cash flow from operating activities	214.4	157.5	+36.1%
Cash flow from investing activities	-147.6	-111.0
t/o CapEX	-9.9	-9.1
t/o Cash paid for acquisition of subsidiaries, net of cash acquired	-127.1	-101.7
Cash flow from financing activities	-55.4	-109.1
t/o Dividend payments	-34.7	-32.3
t/o Cash received from loans	75.6	6.9
t/o Repayments of borrowings	-77.5	-65.4
t/o Principal elements of lease payments	-15.1	-13.2
FX-effects	6.4	-7.2
Cash and cash equivalents at the end of the period	157.1	139.3	+12.8%
Free cash flow1	66.7	46.5	+43.6%
Free cash flow1 (w/o acquisition effects)	193.8	148.2	+30.8%

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.