Nemetschek SE — Investor Presentation 2015

Apr 22, 2015

Nemetschek Group Company Presentation

April 2014

Nemetschek Group: In brief………………………………….………………………………3
Strategy……………………………………………………………………………………………6
Financials 2014…………………………………………………………………………………14
Nemetschek share……………………………………………………………………………24
Optimistic outlook……………………………………….………………………………………28
Appendix………………………………………………………………………………………….30
Contact…………………………………………………………………………………………35

A success story of more than 50 years

* Building Information Modeling

Positioning

• Nemetschek Group with 13 strong brands
• Software solutions, innovations, collaboration, 5D and Open BIM for the AEC industry (Architecture, Engineering, Construction)
• More than 1.8 million users
• Globally present with more than 50 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 + Media

• 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

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

Internationalization

• The Americas
• Asia
• Northern Europe
• Eastern Europe

Major growth markets

Technology trends Innovations

• BIM
• 5D
• Cloud
• Collaboration

• Mobile, Web

• Processes

• Data management
• Usability
• Content
• Apps

Focus on customers

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

International growth accelerated

Revenues 2009: 135.6 mEUR Revenues 2014: 218.5 mEUR

• DACH: Market leading position, strong base, increasing revenues
• Market position in the U.S. strengthened via organic growth and through Bluebeam acquisition
• Growth potential abroad (Asia, Latin America)

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

since 1985

• 3D drawings
• Technologische Fast internet
• Trends Powerful hardware
• BIM

• Cloud computing

• 5D BIM end-to-end solution

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

Today Tomorrow

Open BIM is one of the growth drivers for the AEC industry

Nemetschek Group focuses on Open BIM

Nemetschek Group Highlights for FY 2014

Nemetschek Group Highlights for FY 2014

Q4: Strongest quarter in the company's history

in mEUR

Organic growth: In FY of 10.0% and in Q4 of 12.6%

Currency-adjusted growth: In FY of 17.6% and in Q4 of 23.3%

Well-balanced growth of software license and software services

% of revenues

Software licenses:

Up by 20.7% to 105.0 mEUR: New customers wins and increasing customer base

Software services:

Up by 13.3% to 101.0 mEUR: Recurring revenues secured

EBITDA margin exceeded target range of 23% - 25%

in mEUR

• EBITDA increased over proportional compared to revenues despite Bluebeam acquisition costs
• Investments in internationalization, new customer segments (media), in BIM 5D competence and strategic cooperation will follow in 2015

Earnings per share increased strongly

Net result (group shares) up by 31.1% to 31.5 mEUR, EPS at 3.27 EUR

Net result (group shares) w/o PPA at 35.3 mEUR (+19.1%); EPS w/o PPA at 3.67 EUR

Segment overview

Design

Vectorworks

regions

Design segment is growth driver, esp. Graphisoft and Build

Delay in product development

Strong Q4 organically (+11%) and through Bluebeam FY 2014 flat organic development

during the year

Growth in all main focus

Organic growth of 11%

Lower margins: no activation of own work capitalized in 2014 (2013: 1.6mEUR capitalized) FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 +17.1% +30.4% +5.0% +12.4% EBITDA Margin Change 22.1% 25.0% 36.0% 20.5% 22.5% 20.6% 40.7% 43.2% Revenues in mEUR

Manage

Accelerated growth in Q4: +12.3% revenue growth FY 2014 showed solid development with stable

margin situation

Media & Entertainment Very strong year end business

• with revenue growth in Q4 of 32.9%
• Very high margin planned investments in new customer segments (gaming) planned will have impact on margins

Cash flow situation

in mEUR

Operating cash flow

• Increased by 9.8% yoy to 44.2 mEUR
• Cash conversion of 78%

Investing cash flow

• Capex of 3.5 mEUR as expected and below last year
• Cash paid for acquisition of 76.0 mEUR

Cash flow from financing activities

• Dividend payment of 12.5 mEUR after AGM in May 2014
• Bank loans of 60.0 mEUR with an interest rate of 1.03%
• Net liquidity
• -3.0 mEUR because of Bluebeam acquisition

Solid balance sheet

in mEUR

Assets Equity and Liabilities

Bluebeam acquisition Balance sheet mainly influenced through Bluebeam acquisition

Assets Intangible assets increased to 68.8 mEUR Goodwill up to 111.3 mEUR

Liabilities

60 mEUR bank loan to finance Bluebeam (remaining amount was paid in cash)

Equity ratio

At 46.8% still on a solid level

Further leeway

To finance growth organically and via acquisitions

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: ~ 1.1 billion EUR
• Current TecDAX Ranking: 22/27

Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of Nemetschek Group in the future

Dividend payment of 1.60 EUR per share

Dividend per share in EUR

• Dividend will increase by 23% to 1.60 EUR per share
• In total 15.4 mEUR will be paid out to the shareholders in May 2015 after the AGM
• Since 2009, we paid more than 64 mEUR in total in the last 6 years

* Proposal to the AGM on May 20, 2015

Share price increased stronger than TecDAX and DAX

Time	Nemetschek	TecDAX	DAX
Year 2012	+29%	+18%	+25%
Year 2013	+52%	+38%	+23%
Year 2014	+66%	+18%	+3%
YTD 2015	+42%	+17%	23%

Outlook 2015

 Market conditions	 Robust development of construction markets  Additional growth coming from trends such as Open BIM, 5D, collaboration, mobile solutions, cloud
 Strategic market positioning	 Clear focus on AEC market  Leading in Open BIM solutions  Strong and independent global brands
 Growth potential/ Investments	 Focus on internationalization (North/Latin America, Asia)  Investments in new customer segments (segment media)  Investments in BIM 5D competence  Strategically sound cooperations  Healthy balance sheet  Capable of investing in organic and in inorganic growth

	FY 2014	Forecast 2015*	Organic*
Revenues	218.5	262-269 (+20%-23%)	+6%-9%
EBITDA	56.8	62-65	-

* USD/EUR plan rate: 1.25

NEMETSCHEK
GROUP

mEUR	Q4 2014	Q4 2013	% YoY	FY 2014	FY 2013	% YoY
Revenues	65.0	51.7	+25.7%	218.5	185.9	+17.5%
Own work capitalized/ other operating income	2.3	1.2	+91.4%	5.0	3.9	+28.1%
Operating income	67.3	52.9	+27.2%	223.5	189.8	+17.7%
Cost of materials/ purchased services	-2.7	-2.4	+13.0%	-8.6	-8.7	-0.7%
Personnel expenses	-28.4	-20.9	+35.6%	-94.5	-78.7	+20.2%
Other operating expenses	-18.3	-15.1	+20.6%	-63.5	-56.2	+12.9%
Operating costs	-49.3	-38.5	+28.3%	-166.7	-143.6	+16.1%
EBITDA	18.0	14.5	+24.2%	56.8	46.3	+22.8%
Margin	27.6%	28.0%		26.0%	24.9%
Depreciation of PPA and amortization	-3.7	-2.2	+69.6%	-10.3	-10.6	-2.9%
t/o PPA	-1.8	-1.6	+13.2%	-4.8	-6.3	-24.7%
EBITA (normalized EBIT)	16.1	13.9	+15.9%	51.3	42.0	+22.1%
EBIT	14.3	12.3	+16.2%	46.5	35.7	+30.4%
Financial result	0.0	0.5		0.1	0.5
EBT	14.3	12.8	+11.9%	46.6	36.2	+28.7%
Income taxes	-4.4	-4.5	-2.1%	-13.1	-10.9	+20.0%
Minorities	0.8	0.4	+74.1%	2.0	1.3	+56.4%
Net income (group shares)	9.1	7.9	+16.5%	31.5	24.0	+31.1%
EPS in EUR	0.95	0.82	+16.5%	3.27	2.49	+31.1%

mEUR	December 31, 2014	December 31, 2013
Assets
Cash and cash equivalents	57.0	48.6
Trade receivables, net	28.9	21.9
Inventories	0.7	0.7
Other current assets	11.8	8.4
Total current assets	98.4	79.6
Property, plant and equipment	10.8	5.3
Intangible assets	68.8	30.9
Goodwill	111.3	60.1
Other non-current assets	2.5	2.5
Total non-current assets	193.3	98.9
Total assets	291.7	178.5

Balance sheet – Equity and liabilities

mEUR	December 31, 2014	December 31, 2013
Equity and liabilities
Short-term loan	12.0	0
Trade payables & accrued liabilities	26.9	20.1
Deferred revenue	32.4	23.5
Other current assets	13.0	10.4
Total current liabilities	84.3	54.0
Short-term loan	48.0	0
Deferred tax liabilities	15.4	4.1
Other non-current liabilities	7.4	2.3
Total non-current liabilities	70.8	6.4
Subscribed capital and capital reserve	51.0	51.0
Other comprehensive income	-12.6	-12.8
Retained earnings	96.6	78.3
Minority interests	1.6	1.6
Total equity	136.6	118.2
Total equity and liabilities	291.7	178.5

mEUR	December 31, 2014	December 31, 2013	% YoY
Cash at beginning of period	48.6	44.3	+9.6%
Operating cash flow	44.2	40.2	+9.8%
Investing cash flow	-79.8	-21.6
t/o CapEX	-3.5	-5.4	-34.0%
t/o Cash paid for acquisition	-76.0	-16.2
Financing cash flow	43.2	-13.5
t/o Dividend payments	-12.5	-11.1	+13.0%
t/o Cash received from bank loans	60.0	0
FX-effects	0.9	-0.9
Cash at end of period	57.0	48.6	+17.3%
Free cash flow(1)	-35.6	18.7

Contact

Nemetschek Group Stefanie Zimmermann Konrad-Zuse-Platz 1 81829 Munich – Germany investor-relations@nemetschek.com 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.

Disclaimer