Nemetschek SE — Investor Presentation 2014

Nov 5, 2014

Nemetschek Group – Company Presentation

November 2014

Agenda

Nemetschek Group: In brief

Strategy

• Internationalization
• Industry mega trends
• Innovations
• Financial data 9-month 2014
• Nemetschek share
• Why invest?

A success story of more than 50 years

Unique DNA

Positioning

• Nemetschek Group with 12 strong brands
• Software solutions, innovations, 5D and BIM for the AEC industry (Architecture, Engineering, Construction)
• More than 1.8 million users
• Globally present with more than 40 locations in 142 countries

Mission & Vision

• Our claim: Innovative, customer-oriented software solution throughout the lifecycle of buildings
• Our benchmark: Highest quality, user-friendliness and user benefits
• Focus on customers
• Worldwide presence: Intensive sales and service secure customer access, customer proximity and customer satisfaction

We drive innovation and digitalization for the entire building life cycle

What makes us so special

Nemetschek covers complete value chain in AEC + Multimedia

Strong, entrepreneurial brands: Close involvement with customers, speed, excellence, innovation

• Value added: Complementarity, specialization, best in class instead of shared services
• Attractive for potential targets: Integration of different cultures

A clear fit between Bluebeam and Nemetschek

Highlights

• More than 650,000 customers worldwide
• Strong growing: Among the 500 fastest growing technology companies in North America (Deloitte)
• Young and innovative: Leading provider of PDF-based workflow solutions for digital processes and collaboration
• Accessible via desktop, cloud and mobile
• Committed to Open BIM philosophy
• Stronger international footprint in the US for Nemetschek and in Europa and Asia for Bluebeam
• Highly experienced and dedicated employees

Status of the deal

Very confident to close the deal soon – communication will follow

Agenda

Nemetschek Group: In brief

Strategy

• Internationalization
• Industry mega trends
• Innovations
• Financial data 9-month 2014
• Nemetschek share
• Why invest?

Challenges of the AEC industry

Time and costs are the critical parameters in the building process, e.g. Airport Berlin, Plan: 2012 completion, 1.7bn EUR, Status: 2017 completion, 5.7bn EUR

Further projects: Elbphilharmonie, San Francisco Bay Bridge, Soccer stadium Berlin and many others

• Industry in transition
• Digitalization far behind other industries
• Increasing complexity
• Less time, less budget
• More team players
• New regulations (BIM, 5D)
• Increasing demands for sustainable building
• Management of the complete value chain in the building process

What drives our growth

• Growth: Organic and via acquisitions
• Acquisition focus: Strategic fit to close regional and technology gaps

International revenue split

• DACH: Market leading position, solid base, increasing revenues
• Market position in Americas and Asia strengthened
• Growth potential abroad

Internationalization: Regions on the agenda

• Strengthening our position in the Americas, Asia, Northern and Eastern Europe
• Markets with strong growth prospects and increasing demand
• Leverage via co-operations, acquisitions and early-stage occupation

AEC industry in transition

• 2D drawings
• Slow internet

• Poor hardware

• 3D drawings

• Technologische Trends Fast internet
• Powerful hardware
• BIM

• Cloud computing

• 5D end-to-end solution

• Smart/Mobile/Apps
• Collaboration along the value chain

Today Tomorrow

since 1985

Open BIM is one of the growth drivers for AEC

Nemetschek Group focus on Open BIM

Agenda

Nemetschek Group: In brief

Strategy

Financial data 9-month 2014

Nemetschek share

Why invest?

Continued growth in revenues in the third quarter

• Strong home market (+15.8%)
• International markets also in growth mode (+13.4%)

Well-balanced growth of license and service contracts

% of revenues

Software services:

Up by 14.7% to 73.8 mEUR: Recurring revenues secured

Software licenses:

Up by 14.3% to 71.8 mEUR: New customers wins and increasing customer base

High EBITDA margin

• EBITDA increased over proportional compared to revenues despite Bluebeam acquisition costs
• EBITDA margin up by 1.6 percentage points to 25.3%

Strong EPS development

Net result up by 33.7% to 22.3 mEUR, EPS at 2.32 EUR

Net result w/o PPA at 24.8 mEUR (+19.0%); EPS w/o PPA at 2.58 EUR

Segment overview

• Design segment is growth driver, esp. Graphisoft and Vectorworks are doing very well
• Growth in all main focus regions

• Margin situation improved significantly

• Project postponements

• Delay in product developments
• Lower margin situation: no more activation of own worked capitalized
• Revenue growth slowed down because of cautious customers
• EBITDA below last year because of investments
• Solid revenues development
• Still very high EBITDA margin

Net cash development

Operating cash flow	Increased by 27.4% yoy to 36.5 mEUR
CapEx	2.5 mEUR as expected and below last year End of activation period of own worked capitalized
Free cash flow	High at 33.0 mEUR (+32.8%)
Dividend payment	12.5 mEUR after AGM in May
Net cash	66.0 mEUR (+35.9% compared to year-end 2013)

Acquisition of Bluebeam will be financed via our high cash reserves and taking out a loan

Agenda

Nemetschek Group: In brief

Strategy

Financial data 9-month 2014

Nemetschek share

Why invest?

Stable shareholder structure

• Founded: in 1963
• IPO: March 10, 1999
• Number of shares: 9,625,000
• Frankfurt Stock Exchange, Prime Standard
• Bloomberg: NEM GY, Reuters: NEKG.DE
• Shares Nemetschek family: 53.57%
• Freefloat: 46.43 percent
• Current MarketCap: ~ 770 mEUR
• Current TecDAX Ranking: 23/31
• Prof. Georg Nemetschek
• Nemetschek Vermögensverwaltungs GmbH & Co KG
• Free float
• Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of Nemetschek Group in the future

Dividend payment of 1.30 EUR

Dividend per share in EUR

• Dividend increased by 13% to 1.30 EUR per share
• In total 12.5 mEUR was paid out to the shareholders in May 2014
• Since 2009, we paid 49m EUR in total in the last 5 years

Share price increase and higher visibility through TecDAX

Time	Nemetschek	TecDAX	DAX
Year 2012	+29%	+18%	+25%
Year 2013	+52%	+38%	+23%
YTD 2014	+56%	+6%	+/-0%

Agenda

Nemetschek Group: In brief

Strategy

Financial data 9-month 2014

Nemetschek share

Why invest?

Investment highlights

• Strategic market Clear focus on AEC market
• positioning Leading in Open BIM solutions and 5D
• Strong global brands
• Focus on customer needs

• Very good reputation at renowned customers

• Healthy financial High margin business

• Strong cash generation

• Healthy balance sheet

• Growth potential Attractive, innovative solution portfolio for the AEC industry

• Strengthen Nemetschek's position abroad
• Capable of investing in inorganic growth
• Driving innovations for an industry whose transformation has just begun

Outlook 2014 confirmed

Market conditions • Macroeconomic indicators slowed down

• Solid growth in the AEC market worldwide

• General trends (BIM, 5D etc.) are growth drivers

• Growth factors Acquisition of innovative, strong growing US software provider Bluebeam

• Two investments in the promising BIM 5D market • Trends such as BIM, 5D, collaboration, digitalization, cloud, mobile

• drive the market

• Guidance 9-month figures are strong basis for further growth

• Additional growth trough Bluebeam (consolidation starts in Nov.)
• Revenue forecast increased

IR calendar 2014 and contact

• 30/10/2014 Publication Q3 2014
• 25-26/11/2014 Equity Forum in Frankfurt

Contact: Stefanie Zimmermann Investor Relations +49 89 92793 1229 szimmermann@nemetschek.com

P+L statement – Q3 / 9-month comparison

mEUR	Q3 2014	Q3 2013	% YoY	9M 2014	9M 2013	% YoY
Revenues	51.2	45.8	+11.9%	153.5	134.2	+14.3%
Own work capitalized/ other operating income	1.0	0.7	+41.0%	2.7	2.7	-0.5%
Operating income	52.2	46.5	+12.3%	156.1	136.9	+14.0%
Cost of materials/ purchased services	-2.1	-2.0	+5.1%	-5.9	-6.3	-5.9%
Personnel expenses	-21.7	-19.3	+12.2%	-66.2	-57.7	+14.6%
Other operating expenses	-15.2	-13.7	+10.5%	-45.2	-41.1	+10.1%
Operating costs	-39.0	-35.0	+11.1%	-117.3	-105.1	+11.6%
EBITDA	13.2	11.4	+16.0%	38.8	31.8	+22.1%
Margin	25.9%	25.0%		25.3%	23.7%
Depreciation of PPE and amortization	-2.4	-2.6	-9.0%	-6.6	-7.8	-15.2%
Thereof PPA	-1.0	-1.6		-3.0	-4.7
EBITA (normalized EBIT)	11.9	10.4	+14.6%	35.2	28.6	+22.8%
EBIT	10.9	8.8	+23.4%	32.2	24.0	+34.3%
Financial result	0	0		0	0
EBT	10.9	8.8	+23.5%	32.2	24.0	+34.3%
Income taxes	-2.6	-2.2	+16.3%	-8.7	-6.5	+34.3%
Minorities	0.4	0.3		1.2	0.8
Net income (group shares)	7.9	6.3	+25.3%	22.3	16.7	+33.7%
EPS in EUR	0.82	0.66	+25.3%	2.32	1.74	+33.7%

Balance sheet – Assets

mEUR	September 30, 2014	Dec 31, 2013
Assets
Cash and cash equivalents	66.0	48.6
Trade receivables, net	21.9	21.9
Other current assets	10.2	9.2
Total current assets	98.1	79.6
Property, plant and equipment	5.4	5.3
Intangible assets	28.6	30.9
Goodwill	61.8	60.1
Other non-current assets	3.8	2.5
Total non-current assets	99.6	98.9
Total assets	197.7	178.5

Balance sheet – Equity and liabilities

mEUR	September 30, 2014	Dec 31, 2013
Equity and liabilities
Trade payables & accrued liabilities	19.7	20.1
Deferred revenue	32.6	23.5
Other current liabilities	11.0	10.4
Total current liabilities	63.3	54.0
Deferred tax liabilities	4.1	4.1
Other non-current liabilities	4.0	2.3
Total non-current liabilities	8.1	6.4
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-13.2	-12.8
Retained earnings	87.6	78.3
Minority interests	1.0	1.6
Total equity	126.4	118.2
Total equity and liabilities	197.7	178.5

Cash flow statement

mEUR	September 30, 2014	September 30, 2013	% YoY
Cash at beginning of period	48.6	44.3	+9.6%
Operating cash flow	36.5	28.7	+27.4%
Investing cash flow	-3.6	-3.9	-7.2%
t/o CapEx	-2.5	-3.9
Financing cash flow	-16.4	-13.1	25.1%
FX-effects	0.9	-0.2
Cash at end of period	66.0	48.7	+21.0%
Free cash flow(1)	33.0	24.8	+32.8%

Disclaimer

This presentation contains forward-looking statements based on the beliefs of Nemetschek AG management. Such statements reflect current views of Nemetschek AG 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 AG does not intend or assume any obligation to update these forward-looking statements.