Nemetschek SE — Investor Presentation 2016

Jun 14, 2016

NEMETSCHEK GROUP Company Presentation

June 2016

NEMETSCHEK GROUP: In Brief………………………….………………………………3
Strategy……………………………………………………………………………………………8
Financials: Q1 2016….……………………………………………………………………12
NEMETSCHEK Share……………………………………………………………………22
Outlook: FY 2016.……………………………………. ………………………………………25
Appendix…………………………………………………………………….…………………27
Contact………………………………………………………………………………………….32

Our Founder

Mission: "We drive digitalization and innovation for the entire life cycle of the AEC industry!"

Vision: Innovation driver and digital backbone of the AEC industry with strong global brands and customer proximity.

Responsibility: Prof. Nemetschek establishes the Nemetschek charitable foundation, supporting projects in the areas of education, science and research, arts and culture, the environment, international understanding and social projects.

Prof. Georg Nemetschek Founder and Member of the Supervisory Board of Nemetschek SE

The Philosophy of Nemetschek

We are a Group of industry leaders with a unique DNA and expertise in the AEC* industry. We stand for best -in -class tools, Open BIM, interoperability and collaboration. All of our strong brands share the same mission:

"We understand the building process as a whole."

Our motivation is to develop software solutions for better results with respect to aesthetics and function within cost and time constraints.

* Architecture, Engineering, Construction

History: 50 Years of Innovation and Success

1963

Georg Nemetschek, a certified engineer, founds the "engineering firm for the construction industry"

1980

Nemetschek presents the first computer-aided engineering software (CAE)

1984

The first CAD solution ALLPLAN 1.0 appears on the market

1998

Numerous acquisitions: Frilo, Glaser, Bausoftware, Crem

2000

Acquisition: Vectorworks. Group headquarters move to new premises at the Munich Fair

2013 Acquisition: Data Design System

TODAY

Globally leading software company in Open BIM* and 5D

SPIRIT OF INVENTION

INTERNATIONALIZATION INNOVATION DRIVER

1983

Internationalization begins in Austria and Switzerland

1997

Nemetschek presents the database-driven platform O.P.E.N. – known today as BIM*

1999

IPO of Nemetschek. Acquisitions: Maxon, Auer

2014

Acquisition: Bluebeam Software. Investment in the start-up Sablono GmbH

2015

Acquisition: Solibri. Sale: Glaser

1968

The first use of computers in the construction industry

2006

Graphisoft and Scia become subsidiaries of the Nemetschek Group

2016 Conversion of Nemetschek AG

into an SE

* Building Information Modeling

Nemetschek at a Glance

Facts and figures

• 50 years of innovation, founded in 1963 and headquartered in Munich, Germany

• Open BIM pioneer and 5D provider with software solutions for the AEC* and media industry
• 12 strong brands
• 285.3 mEUR sales revenues (2015)
• 2.1 million users in 142 countries
• 1,750 employees worldwide

• 50 locations in more than 40 countries

• IPO 1999, listed in the TecDax
• 2.0 billion EUR market capitalization

Decentralized Strong Brands under One Umbrella

• Nemetschek covers the complete value chain in the AEC & Media industry
• Entrepreneurial brands: Industry leaders with a unique DNA, expertise and customer orientation
• Attractive set-up for potential targets

AEC Industry in Transition

• Simple exchange of BIM models is now becoming common on projects, but the industry is shifting to advanced model-based workflows. This requires open standards, high quality models, and collaboration support to accommodate all disciplines and technology.
• Regional standards are becoming increasingly sophisticated specifying BIM requirements, such as the 2016 UK BIM mandate. Nemetschek brand companies are pioneers in the exchange of data using open standards in a quality process as well as collaborative solutions to connect the design build and manage process together.

since 1985

Today Tomorrow

9

Open Standards

Nemetschek invests heavily in the standards that keep data open and transferable. By sitting on standards bodies and supporting research to keep up with the changing building market, we work to make sure users can use the best tools for their needs.

Quality Models

Open standards are the foundation, but the AEC industry still needs to ensure BIM models have the correct information. Solibri Model Checker is the only complete QA/QC tool that makes sure that the models being exchanged are high enough quality for the design and construction process.

Thinking Locally

Born in the EU, Nemetschek's group of strong, independent brands with employees around the world make sure that our solutions meet local standards. Instead of a one size fits all approach we bring solutions tailored to regional needs and use our strengths to partner with the local products you also use.

BIM 5D – In Scope, In Time, In Budget

As a BIM pioneer and 5D provider the NEMETSCHEK GROUP stands for an open approach and supports collaboration and seamless data transfer through the complete value chain in the building process

Nemetschek Group Highlights for Q1 2016 (1)

Nemetschek Group Highlights for Q1 2016 (2)

Significant growth in EPS	Net income (group shares) showed strong growth of 31.6% to 11.0 mEUR  EPS at 0.29 EUR (previous year: 0.22 EUR) Net income w/o PPA increased by 27.5% to 13.0 mEUR EPS (w/o PPA) accordingly at 0.34 EUR
Cash and solid balance sheet	Cash and cash equivalents at 97.2 mEUR  Net liquidity at 21.2 mEUR Equity ratio of 44.5% - leeway for further investments / acquisitions
Annual General Meeting	On May 20, 2016 in Munich  Dividend proposal of 0.50 EUR per share (previous year: 0.40 EUR per share) Dividend increase of 25% yoy Total amount to be distributed of 19.25 mEUR
New Executive Board structure	Announcement of the appointment of Sean Flaherty as Chief Strategy Officer in a full time position  Focus on Group-wide future strategy, globalization and development of advanced technology in the target markets EB will intensify and accelerate the growth – both organic and via M&A
Outlook confirmed	Q1 as a strong basis for the fiscal year 2016  Revenue target range of 319-325 mEUR, up by +12%-14% (thereof organic: +11%-13%) EBITDA target range of 77-80 mEUR

Revenues: Excellent start in the fiscal year 2016

Revenues in mEUR

Q1 2016 revenues increased strongly by 16.7% to 77.7 mEUR

• Solibri contributed revenues of around 1 mEUR
• Organic growth of high 15.6% yoy

International growth accelerated

Revenues split Q1 2016 in %

• Strong growth of 20.8% abroad
• Growth markets:
• Americas
• Asia
• Nordics
• Further growth potential abroad

Software licenses and recurring revenues shows double-digit growth

Software license revenues

• Up by 17.1% to 40.3 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

Recurring revenues*

• Up by 16.1% to 33.3 mEUR
• Increasing visibility

* Software services, subscripton

EBITDA increased stronger than revenues

in mEUR

EBITDA

• EBITDA up by 21.0% to 21.0 mEUR
• EBITDA margin improved to 27.0%

Further investments in

• Internationalization
• New customer segments
• Sales & marketing

Net income and EPS with significant growth of 31.6% yoy

Segment overview

Design

• Design segment showed again double-digit growth
• EBITDA margin increased to 26.1%
• Further strategic investments to secure future growth (sales, internationalization)
• Growth in all main focus regions

Build

• Very strong revenue growth of 41.2%
• Inorganic effect of Solibri with 1 mEUR revenues
• Organic growth of 34% LFL
• Bluebeam showed over proportional growth (new release of Revu 2016)

Manage

• Continued revenue growth with +13.0%
• Significant improvement of the EBITDA margin
• iXHaus with new customer wins: Potsdamer Platz in Berlin

Media & Entertainment

• Flat development yoy
• Strong previous year with onetime effect
• Investments in new customer segments etc. have impact on margins

Cash flow situation

in mEUR

EBITDA

+21.0% yoy

Operating cash flow

+7.2% to 21.3 mEUR

Investing cash flow

• Capex of 1.9 mEUR
• Previous year: Investment in distribution partner

Cash flow from financing activities

Repayment of bank loan (-4.6 mEUR)

Net liquidity situation

Leeway to grow organically and via acquisitions

Conversion rate**

Strong conversion rate of 102% (previous

NEMETSCHEK Shares

Visualization of the planned Santiago Bemabéu Stadium, Madrid, Spain Architects: gmp, Hamburg, Germany

Stable Shareholder Structure

• Founded: in 1963
• IPO: March 10, 1999
• Number of shares: 38,500,000
• Frankfurt Stock Exchange, Prime Standard
• Bloomberg: NEM GY, Reuters: NEKG.DE
• Shares Nemetschek family: 53.57%
• Freefloat: 46.43 percent
• Current MarketCap: ~ 2.0 billion EUR
• Current TecDAX Ranking: 14/21

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

Share Price Increased Stronger than TecDAX and DAX

32 35 38 41 44 47 50 53 01.2016 02.2016 03.2016 04.2016 05.2016 06.2016 Nemetschek TecDAX DAX

Time	Nemetschek	TecDAX	Dax
Year 2013	+52%	+38%	+23%
Year 2014	+66%	+18%	+3%
Year 2015	+120%	+34%	+10%
YTD 2016	+17%	-5%	+/-0%

Optimistic outlook 2016 confirmed

Current situation	Strong basis due to the excellent Q1 figures
Market conditions	Robust development of construction markets Additional growth coming from trends technologies, mobile solutions etc. Regulations regarding BIM standards			such as Open BIM, 5D, collaboration, platform
Strategic market positioning	Clear focus on AEC market Leading Strong and independent global brands	in Open BIM solutions
Growth potential/ Investments	Focus on Strategically Healthy balance sheet in mEUR	co-operations & acquisitions FY 2015	internationalization (North/Latin America, Asia, Europe) Investments in new markets, customer segments, sales & marketing Capable of investing in organic and in inorganic growth Forecast 2016*	Organic
	Revenues	285.3	319 - 325 (+12%-14%)	+11%-13%

EBITDA 69.5 77 - 80 -

* USD/EUR plan rate: 1.11

mEUR	Q1 2016	Q1 2015	% YoY
Revenues	77.7	66.6	+16.7%
Own work capitalized/ other operating income	1.2	2.2	-47.7%
Operating income	78.8	68.8	+14.6%
Cost of materials/ purchased services	-2.4	-2.0	+19.2%
Personnel expenses	-35.0	-30.0	+16.7%
Other operating expenses	-20.5	-19.4	+5.3%
Operating costs	-57.9	-51.4	+12.5%
EBITDA	21.0	17.4	+21.0%
Margin	27.0%	26.1%
Depreciation of PPA and amortization	-4.4	-4.1	+6.9%
t/o PPA	-2.7	-2.5	+6.0%
EBITA (normalized EBIT)	19.3	15.8	+22.3%
EBIT	16.6	13.2	+25.4%
Financial result	-0.2	0.0
EBT	16.4	13.3	+23.4%
Income taxes	-4.8	-4.4	+9.0%
Non-controlling interests	-0.5	-0.5
Net income (group shares)	11.0	8.4	+31.6%
EPS in EUR	0.29	0.22*	+31.6%

* for better comparability, earnings per share has been presented after the stock split

mEUR	March 31, 2016	December 31, 2015
Assets
Cash and cash equivalents	97.2	84.0
Trade receivables, net	33.2	29.6
Inventories	0.5	0.5
Other current assets	13.3	11.8
Current assets, total	144.3	125.9
Property, plant and equipment	13.9	13.8
Intangible assets	95.6	100.8
Goodwill	132.3	134.9
Other non-current assets	4.4	4.1
Non-current assets, total	246.3	253.6
Total assets	390.5	379.5

Balance sheet – Equity and liabilities

mEUR	March 31, 2016	December 31, 2015
Equity and liabilities
Short-term borrowings and current portion of long-term loans	18.6	18.6
Trade payables & accrued liabilities	24.8	32.2
Deferred revenue	56.6	42.0
Other current assets	15.7	11.4
Current liabilities, total	115.7	104.1
Long-term borrowings without current portion	57.5	62.1
Deferred tax liabilities	23.4	24.3
Other non-current liabilities	20.2	22.1
Non-current liabilities, total	101.0	108.5
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	127.3	116.3
Other comprehensive income	-7.0	-2.5
Non-controlling interests	2.5	2.1
Equity, total	173.8	166.9
Total equity and liabilities	390.5	379.5

Cash flow statement

mEUR	March 31, 2016	March 31, 2015	% YoY
Cash and cash equivalents at the beginning of the period	84.0	57.0	+47.4%
Cash flow from operating activities	21.3	19.9	+7.2%
Cash flow from investing activities	-1.8	-2.6	-30.4%
t/o CapEX	-1.9	-1.1	+70.7%
t/o Cash paid for business combinations	0.0	-1.4
Cash flow from financing activities	-4.8	-4.8	+0,7%
t/o Repayment of borrowings	-4.6	-3.0
FX-effects	-1.5	4.0
Cash and cash equivalents at the end of the period	97.2	73.5	+32.3%
Free cash flow(1)	19.5	17.3	+12.8%

(1) Operating cash flow - Investing cash flow

NEMETSCHEK SE Investor Relations Konrad-Zuse-Platz 1 D-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.