Nemetschek SE — Investor Presentation 2016

Mar 31, 2017

Financial Results Q4 / FY 2016 Outlook 2017

March 31st, 2017

Nemetschek Group Highlights for FY 2016 (1)

Dynamic revenue growth in 2016	revenues: 337.3 mEUR (+18.2%), organic growth: +15.9% FY 2016  Inorganic effects: Solibri (4.5 mEUR) and Design Data (4.7 mEUR) Growth factors: New releases/innovations, strengthened internationalization, stronger sales focus
Focus on internationalization	International markets increased by +21.7% to 230.5 mEUR Revenue share abroad: 68.4%  Higher footprint in the US with revenues share of around 27% Strongest growth in: Nordic, Americas and Asia Positive revenue development in Germany with +11.4% to 106.7 mEUR
Double-digit growth in recurring and license revenues	Recurring revenues up by 19.7% to 146.5 mEUR  High revenue share of more than 43% Software licenses increased by +16.9% to 175.8 mEUR New customers and recurring revenues secured
EBITDA grew stronger than revenues – profitability increased	up by 26.6% to 88.0 mEUR EBITDA EBITDA margin increased yoy from 24.4% to 26.1%  Positive one-off effect in Q2 of 1.9 mEUR EBITDA w/o one-off effect up by 23.9% to 86.1 mEUR EBITDA margin w/o one-off effect at 25.5% No activation of R&D costs

Nemetschek Group Highlights for FY 2016 (2)

Significant growth of net income and EPS	Net income increased significantly by 30.7% to 46.9 mEUR  up to 1.22 EUR EPS Tax rate slightly below last year at 29.4%
Strong cash conversion/ solid balance sheet	Operating cash flow up by +22.4% to 79.7 mEUR, conversion rate at high 90.6%  Cash and cash equivalents at 112.5 mEUR, net liquidity at 16.3 mEUR Equity ratio of 44.4% - leeway for further investments (organic and in acquisitions)
M&A	Acquisition of Design Data (August 2016) increased competence in steel detailing  Acquisition of dRofus (end of 2016) opens up the access to building owners through its unique planning and data management tool
Dividend	 Proposal to the AGM: 0.65 EUR per share, increase of 30% compared to last year
Strategic projects	Strategic projects were kicked off in 2016:  Cross-brand developments Internal ERP harmonization
Optimistic Outlook 2017	Revenue target range: 395 - 401 mEUR, up by +17% - +19% Thereof organic: +13% - +15%, inorganic effects through dRofus and Design Data  EBITDA target range: 100 - 103 mEUR (+16 - +20%) High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

Record revenue level in FY 2016

Q4 2016

• Revenue in Q4 up by +15.8% to 91.9 mEUR
• Organic growth of +12.8% yoy

FY 2016

• Up by 18.2% to 337.3 mEUR
• Solibri and Design Data contributed around 9.2 mEUR

4

Organic growth of 15.9% yoy

Focus on international markets - Strong growth in the U.S

Revenues 2011: 164.0 mEUR Revenues 2016: 337.3 mEUR

• Outstanding success story in the US: biggest and most competitive market worldwide with only few foreign software market players
• US key figures: Revenues more than tripled since 2014, revenue share in the USA increased to 27%
• International focus strengthened over the last years (Americas, Europe, Asia)

High share of recurring revenues

Revenue split FY 2016 in %

Recurring revenues*

• Up by 19.7% to 146.5 mEUR
• High recurring revenue share of 43.4% leads to higher stability

Software license revenues

• Up by 16.9% to new record level of 175.8 mEUR
• New customers wins
• Increasing customer base
• Consequently recurring revenues will follow

* Software services, rental models (Subscriptions, SaaS)

EBITDA increased stronger than revenues

EBITDA in mEUR

* EBITDA w/o 1.9 mEUR positive one-off effect

EBITDA is shown with and w/o the positive one-off effect of 1.9 mEUR in Q2

EBITDA margin improved from 24.4% to 26.1% (25.5% w/o one-off effect)

Q4 EBITDA burdened by special effects (1.4 mEUR sales tax amongst others)

Net income and EPS showed significant growth

* Net income and EPS w/o 1.9 mEUR positive one-off effect

Net income and EPS w/o PPA

* Net income and EPS w/o 1.9 mEUR positive one-off effect

Segment overview

significantly

Design	Build	Manage	Media & Entertainment
Design segment showed double-digit	Inorganic revenue effects of	Very positive revenue	Solid revenue development
revenue growth rates	Solibri and Design Data (in	development over the FY	Investments in new customer
Sale of Glaser end of 2015 influenced	total ~9.2 mEUR)	2016	segments etc. have impact on
growth rate in Q4 2016	Organic growth of 31% yoy	Slight improvement of the	margins
EBITDA margin improved	Further investments	EBITDA margin

* EBITDA of the segments is shown w/o the positive one-off effect of 1.9 mEUR

Cash flow situation

in mEUR

EBITDA

+26.6% yoy

Operating cash flow

+22.4% yoy

Investing cash flow

• Capex of 7.4 on previous year level
• Investment in Design Data (40.4 mEUR)

Cash flow from financing activities

• Repayment of bank loan (-22.2 mEUR)
• Dividend payments (-19.25 mEUR)
• Bank loan for Design Data (+38.0 mEUR)

Net liquidity situation

Leeway to grow organically and via acquisitions

Conversion rate* / net liquidity situation

• Strong conversion rate of 90.6%
• Net cash situation of 16.3 mEUR

* Operating cash flow / EBITDA

Solid balance sheet

in mEUR

Assets

• Cash increased by 28.5 mEUR
• Goodwill up by 33.4 mEUR mainly due to Design Data

Liabilities

• 96 mEUR bank loan
• Deferred revenues up by 13.3 mEUR due to growth in software services
• Equity ratio with 44.4% on solid level

Further leeway

To finance growth organically and via acquisitions

Optimistic outlook 2017

Market conditions	Digitalization and IT spending will drive the use of software solutions in the AEC market BIM market is expected to grow at a remarkable rate owing to supportive government regulations mandating the adoption of BIM software for construction projects
Strategic market positioning	Clear focus on AEC market Leading player of Network of industry leaders	Open BIM solutions
Growth potential/ Investments	Focus on internationalization (North America, Asia, Europe) Investments in cross-brand strategic projects, new regional markets and customer segments, sales & marketing and innovation Strategically co-operations & acquisitions Healthy balance sheet - capable of investing in organic and in inorganic growth
Guidance 2017	Revenues: Focus on topline with double digit growth rates in the mid-teens EBITDA: Double digit growth High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands in mEUR FY 2016 Forecast 2017* Organic
	Revenues	337.3	395 – 401 (+17% - +19%)	+13% - +15%
	EBITDA	86.1**	100 – 103 (+16 - +20%)

*USD/EUR plan rate: 1.09

** EBITDA w/o positive one-off effect of 1.9 mEUR

P+L statement Q4 / FY comparison

mEUR	Q4 2016	Q4 2015	% YoY	12M 2016	12M 2015	% YoY
Revenues	91.9	79.3	+15.8%	337.3	285.3	+18.2%
Own work capitalized/other operating income	1.4	2.3	-41.5%	7.0	5.9	+17.6%
Operating income	93.3	81.7	+14.2%	344.3	291.2	+18.2%
Cost of materials/ purchased services	-3.0	-2.8	+6.6%	-10.9	-9.7	+12.3%
Personnel expenses	-41.5	-33.9	+22.4%	-151.2	-127.1	+19.0%
Other operating expenses	-27.4	-24.9	+10.0%	-94.1	-84.9	+10.9%
Operating costs	-71.9	-61.6	+16.7%	-256.3	-221.7	+15.6%
EBITDA	21.4	20.1	+6.5%	88.0	69.5	+26.6%
Margin	23.3%	25.3%		26.1%	24.4%
EBITDA (w/o one-off effect)	21.4	20.1	+6,5%	86.1	69.5	+23.9%
Margin (w/o one-off effect)	23.3%	25.3%		25.5%	24.4%
Depreciation of PPA and amortization	-4.8	-4.3	+10.6%	-18.3	-16.8	+9.1%
t/o PPA	-2.8	-2.5	+10.7%	-11.1	-10.1	+9.1%
EBITA (normalized EBIT)	19.4	18.3	+6.1%	80.7	62.8	+28.5%
EBIT	16.6	15.8	+5.4%	69.7	52.7	+32.2%
Financial result	0.2	1.7		-0.5	1.5
EBT	16.8	17.5	-3.8%	69.2	54.2	+27.7%
Income taxes	-5.7	-5.0	+12.4%	-20.3	-16.4	+23.9%
Non-controlling interests	-0.5	-0.7		-1.9	-1.9
Net income (group shares)	10.7	11.7	-8.9%	46.9	35.9	+30.7%
EPS in EUR	0.28	0.30	-8.9%	1.22	0.93	+30.7%
Net income (group shares w/o one-off effect)	10.7	11.7	-8.9%	45.6	35.9	+27.0%
EPS in EUR (w/o one-off effect)	0.28	0.30	-8.9%	1.18	0.93	+27.0%

mEUR	December 31, 2016	December 31, 2015
ASSETS
Cash and cash equivalents	112.5	84.0
Trade receivables, net	38.8	29.6
Inventories	0.6	0.5
Other current assets	16.0	11.8
Current assets, total	167.9	125.9
Property, plant and equipment	14.3	13.8
Intangible assets	89.7	83.2*
Goodwill	177.2	143.8*
Other non-current assets	5.7	4.1
Non-current assets, total	286.8	244.8
Total assets	454.7	370.8

* Previous year values adjusted to final purchase price allocation of Solibri Group.

Balance sheet – Equity and liabilities

mEUR	December 31, 2016	December 31, 2015
EQUITY AND LIABILITIES
Short-term borrowings and current portion of long-term loans	26.0	18.6
Trade payables & accrued liabilities	40.7	32.2
Deferred revenue	55.3	42.0
Other current assets	24.1	11.4
Current liabilities, total	146.1	104.1
Long-term borrowings without current portion	70.2	62.1
Deferred tax liabilities	20.6	20.8*
Other non-current liabilities	15.7	16.9*
Non-current liabilities, total	106.5	99.7
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	144.0	116.3
Other comprehensive income	4.4	-2.5
Non-controlling interests	2.8	2.1
Equity, total	202.1	166.9
Total equity and liabilities	454.7	370.8

* Previous year values adjusted to final purchase price allocation of Solibri Group.

mEUR	December 31, 2016	December 31, 2015	% YoY
Cash and cash equivalents at the beginning of the period	84.0	57.0	+47.4%
Cash flow from operating activities	79.7	65.1	+22.4%
Cash flow from investing activities	-47.5	-41.4	+14.8%
t/o CapEX	-7.4	-7.6	-3.4%
t/o Cash paid for business combinations	-40.4	-35.1	+15.0%
Cash flow from financing activities	-5.5	0.1
t/o Dividend payments	-19.3	-15.4	+25.0%
t/o Repayments of borrowings	-22.2	-12.0
t/o Cash received from bank loans	38.0	32.0
FX-effects	1.9	3.2
Cash and cash equivalents at the end of the period	112.5	84.0	+34.0%
Free cash flow(1)	32.1	23.7	+35.5%

(1) Operating cash flow – Investing cash flow

Architects: Patterson Associates Architects | Image: Patrick Reynolds | Realized with GRAPHISOFT

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.

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