Nemetschek SE — Earnings Release 2024

Jul 31, 2024

Earnings Call Q2- / H1-24

Nemetschek Group
July 31, 2024

1. GoCanvas: Highly value-generating acquisition of GoCanvas progressing as expected with closing as of July 1, 2024.
2. Q2-24: Continued high growth driven by strong recurring revenue development in Design and Build segments.
   Profitability impacted by one-off costs in connection with M\&A activities.
3. H1-24: Successful operational development in line with plans. Substantial progress on our journey to a subscription and SaaS centric business model in all segments.
4. Outlook FY-24: Expanded outlook for FY 2024 following the acquisition of GoCanvas - while fully confirming our organic guidance.

Q2-24: Recurring Business Driven by +83\% Growth in Subscription \& SaaS Revenue

ARR

EURm

$+26.5 \%$

$+26.2 \% \mathrm{cc}^{1}$

Q2-23
Q2-24

• Ongoing strong increase in ARR shows continued high sustainable revenue growth for the next 12 months
• Subscription/SaaS revenue accelerated in Q2 and remains main growth driver: $+82.9 \%\left(+82.2 \% \mathrm{cc}^{1}\right)$
  

Q2 revenue growth in line with plans

• Growth impacted by accountingrelated subscription/
  SaaS transition effects and unchanged markets environment

$+9.7 \%$

$+9.7 \% \mathrm{cc}^{1}$

Q2-23
Q2-24

Q2 revenue growth in line with plans

• Growth impacted by accountingrelated subscription/
  SaaS transition effects and unchanged markets environment

EBITDA

EURm

EPS
EUR

56.1	61.4
	Q2-23
	Q2-24

Q2-24
Q2-23
Q2-24

• Tax rate: 21.8\% (Q2-23: 20.5\%)
• EPS before PPA amortization: 0.41 EUR (Q2-23: 0.34)

1 Constant currency
04 Nemetschek Group | Earnings Call Q2- / H1-24

NEMETSCHEK

GROUP

Strategic Highlights First Half 2024

M\&A and Start-up Investments

• Acquisition of GoCanvas:
• Highly value-generating due to complementary technologies, customer bases, and regional sales structures
• Significant synergy potential by combining Bluebeam office and GoCanvas field worker communities

Business Model

• Subscription/SaaS Transition progressing as planned
• Record share of $85 \%$ in recurring revenues driven by high growth of subscription/SaaS
  

Innovation \& Technological Leadership

• Launch of Nemetschek Group AI Innovation Hub to accelerate and streamline the adoption of AI initiatives for external and internal use cases
• Launch of various AI features across different brands
• First successful use cases of dTwin

Go-to-market

• Driving internationalization: Opening of a new local Go-to-Market office in Mumbai, India
• Strengthening of cross-selling activities

Business Enablement

• Further harmonization and continued build-up to enable future growth journey
• Enhanced operational excellence

Overview Financial Results H1-24

Key Financial Highlights H1-24: Successful First Half of the Year 2024

• Adjusted for M\&A-related costs

Segments H1-24: Design and Build Segments Main Growth Drivers

Recurring Revenues: Successful Transition Leads to New Record High of 85\%

Revenue Share

by type in \%

Recurring revenues (Software services (34\%); Subscription/SaaS (51\%)) Licenses $\square$ Consulting \& Hardware

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	H1-24	In \% of revenue	H1-23	Growth y/y
Revenues	451.6	$100 \%$	412.1	$+9.6 \%$
Cost of goods and services	$-19.2$	$4.3 \%$	$-17.0$	$+13.1 \%$
Personnel expenses	$-189.2$	$41.9 \%$	$-182.4$	$+3.8 \%$
Other operating income/expenses	$-113.5$	$25.1 \%$	$-95.7$	$+18.6 \%$
EBITDA	129.7	$28.7 \%$	117.1	$+10.8 \%$
EBITDA margin	$28.7 \%$	-	$28.4 \%$	$+30 b p s$
Adj. EBITDA margin*	$30.0 \%$	-	$28.4 \%$	$+160 b p s$
D\&A (incl. PPA)	$-27.1$	$6.0 \%$	$-29.7$	$-8.8 \%$
EBIT	102.8	$22.7 \%$	87.4	$+17.5 \%$
EBIT margin	$22.7 \%$	-	$21.2 \%$	$+150 b p s$
Net income (group shares)	84.5	$18.7 \%$	69.1	$+22.3 \%$
EPS	9.73	-	8.60	$+22.3 \%$
FCF (before M\&A)	135.6	-	114.7	$+18.2 \%$
Equity ratio in \%	$59.0 \%$	-	$57.5 \%$	$+150 b p s$
Net Cash	306.7	-	168.3	$+82.2 \%$

OZ

Outlook

Guidance 2024: Organic Guidance Confirmed \& Expanded by GoCanvas

Additional Information Guidance 2024:

1) The statements on the effects of the acquisition on the 2024 financial year are subject to the proviso that important key figures, including the calculation of the purchase price allocation (PPA) for GoCanvas, will not be finalized until later in the year.
2) The guidance is based on the assumption that the global macroeconomic or sector-specific conditions will not deteriorate significantly in 2024. Furthermore, no additional potential negative effects from the current developments in the Middle East conflict and the ongoing war in Ukraine are reflected in the outlook.

Appendix

Income Statement

€m	H1 2024	H1 2023	Y/Y\%
Revenues	451.6	412.1	$+9.6 \%$
Other income	4.4	3.6	$+20.3 \%$
Operating income	456.0	415.8	$+9.7 \%$
Cost of goods and services	$-19.2$	$-17.0$	$+13.1 \%$
Personnel expenses	$-189.2$	$-182.4$	$+3.8 \%$
Other expenses	$-117.9$	$-99.4$	$+18.7 \%$
Operating expenses	$-326.3$	$-298.7$	$+9.2 \%$
EBITDA	129.7	117.1	$+10.8 \%$
Margin	28.7\%	28.4\%
Depreciation and amortization	$-27.1$	$-29.7$	$-8.8 \%$
t/o right-of-use assets	$-8.4$	$-8.3$	$+0.8 \%$
t/o PPA	$-12.3$	$-15.4$	$-20.3 \%$
EBIT	102.6	87.4	$+17.5 \%$
Financial result	6.7	0.8	$+>100 \%$
t/o IFRS 16	$-1.0$	$-0.9$	$+9.4 \%$
EBT	109.3	88.1	$+24.1 \%$
Income taxes	$-23.3$	$-17.9$	$+30.2 \%$
Non-controlling interests	1.5	1.1	$+36.2 \%$
Net income (group shares)	84.5	69.1	$+22.3 \%$
EPS in EUR	0.73	0.60	$+22.3 \%$

Balance Sheet - Assets

€m	June 30, 2024	December 31, 2023
Assets
Cash and cash equivalents	309.8	268.0
Trade receivables, net	130.1	99.6
Inventories	0.9	1.0
Other current assets	70.5	49.6
Current assets, total	511.3	418.2
Property, plant and equipment	23.0	23.7
Right-of-use assets	56.0	60.9
Intangible assets	139.5	135.1
Goodwill	571.0	552.0
Other non-current assets	96.0	84.3
Non-current assets, total	885.3	856.1
Total assets	1,396.7	1,274.3

Balance Sheet - Equity and Liabilities

$\epsilon_{\text {m }}$	June 30, 2024	December 31, 2023
Equity and liabilities
Short-term borrowings and current portion of long-term loans	3.1	6.8
Trade payables	20.9	15.3
Provisions and accrued liabilities	61.7	65.7
Deferred revenue	334.8	265.1
Current lease liability	15.8	16.7
Other current liabilities	34.3	31.0
Current liabilities, total	470.6	400.6
Long-term borrowings without current portion	0.0	0.1
Deferred tax liabilities	19.2	16.7
Non-current lease liability	49.3	52.8
Other non-current liabilities	33.0	22.2
Non-current liabilities, total	101.6	91.8
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	671.2	640.8
Other reserves	$-11.3$	$-22.2$
Non-controlling interests	36.6	35.3
Equity, total	824.5	781.9
Total equity and liabilities	1,396.7	1,274.3

Cash Flow Statement

€m	H1 2024	H1 2023	Y/Y\%
Cash and cash equivalents at the beginning of the period	268.0	196.8	$+36.2 \%$
Cash flow from operating activities	141.5	122.2	$+15.8 \%$
Cash flow from investing activities	$-31.5$	$-21.9$	$+43.6 \%$
t/o CapEX	$-6.0$	$-7.7$
t/o Cash paid for acquisition of equity investments	$-6.0$	$-13.3$
Cash paid for acquisition of subsidiaries, net of cash acquired	$-19.7$	0.0
Cash flow from financing activities	$-72.8$	$-86.2$	$-15.5 \%$
t/o Dividend payments	$-55.4$	$-52.0$
t/o Cash received from bank loans	0.0	10.5
t/o Repayments of borrowings	$-3.8$	$-33.9$
t/o Principal elements of lease payments	$-8.9$	$-8.2$
FX-effects	$+4.7$	$-1.7$
Free cash flow	110.0	100.2	$+9.7 \%$
Free cash flow (before M\&A) ${ }^{1}$	135.6	114.7	$+18.2 \%$
Cash and cash equivalents at the end of the period	309.9	209.2	$+48.1 \%$

SHAPE THE WORLD

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.