Nemetschek SE — Investor Presentation 2014

Oct 30, 2014

Q3 2014 Earnings Call

October 30th, 2014

Executive summary

Acquisition of Bluebeam

Financial data

Outlook 2014

Summary Q3 / 9-Month 2014 (1)

Profitable growth continued

• Q3 revenues increased to 51.2 mEUR (+11.9%)
• 9-month revenues at 153.5 mEUR (+14.3%)
• Design segment: growth driver with an increase of 17.8% in first nine months
• Both, software licenses and software services showed double digit growth rates

High growth at home and abroad

• International markets increased by 13.4% to 91.3 mEUR
• Growth markets: North/Latin America and Asia (esp. Japan)
• Positive revenue increase in Germany with 15.8% to 62.2 mEUR

Strong profitability despite acquisition costs

• Above-average increase in earnings compared to revenues despite acquisition costs associated with Bluebeam
• EBITDA grew by 22.1% yoy to 38.8 mEUR in the first nine months
• EBITDA margin up to 25.3% compared to last year with 23.7%
• Q3 EBITDA increased by 16.0% to 13.2 mEUR

Summary Q3 / 9-Month 2014 (2)

Strong increase of net income and EPS

• Net income (group shares) showed significant growth of +33.7% to 22.3 mEUR
• EPS at 2.32 EUR
• Net income w/o PPA at 24.8 mEUR (+19.0%)
• EPS w/o PPA at 2.58 EUR

High operating and free cash flow

• Operating cash flow up by 27.4% to 36.5 mEUR

• Free cash flow grew strongly by 32.8% to 33.0 mEUR

• All significant key indicators improved again

• 9-month figures are a strong basis to bring the year 2014 to a successful close

Executive summary

Acquisition of Bluebeam

Financial data

Outlook 2014

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

Executive summary

Acquisition of Bluebeam

Financial data

Outlook

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

+5.5%

+2.3% 12,0 12,6

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

3,7 3,7

Manage

9M 2013 9M 2014

21.5% 16.9%

• EBITDA below last year because of investments
• Solid revenues development
• Still very high EBITDA margin

39.4% 41.0%

9M 2013 9M 2014

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

Executive summary

Acquisition of Bluebeam

Financial data

Outlook

Outlook 2014 confirmed

Market conditions • Macroeconomic indicators slowed down

• Solid growth in the AEC market worldwide

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

• Strategic market Acquisition of innovative, strong growing US software provider Bluebeam

• positioning Two investments in the promising BIM 5D market
• Clear focus on AEC market and leading in Open BIM solutions

• Strong and independent global brands

• 9-month figures Strong basis for further growth

• Very confident to meet our targets and to close the year successfully

Revenues:	EBITDA margin:
207 - 212 mEUR (+ 11 - 14%)	23 - 25%

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

Executive summary

Acquisition of Bluebeam

Financial data

Outlook

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.