Nemetschek SE — Investor Presentation 2018

Dec 4, 2018

Nemetschek Group

Company Presentation December 2018

Key Business Highlights

Strong Performance Customer Focus

Strong growth: 5 yrs1 revenue CAGR of ~20%

>500% growth in market capitalization (5 yrs)

High cash generation: >80%

Global footprint: US 5 yrs1 revenue CAGR of >45%

4.0m Users around the world

>95% Customer retention

Huge Market Potential

~50% Recurring revenues

High profitability: Sustainable 25 – 27% EBITDA margin while investing in growth

€ 8bn AEC Market opportunity

€ 20bn Building management market opportunity

€ 5bn Media market opportunity

¹ 2013 – 2018(e)

Diversified Portfolio is Positioned to Provide Strong Growth

¹ 2013 – 2018(e)

Company Presentation

Why We are Successful – A Unique Approach Similar to German Mittelstand

	Highly specialized small or midsized companies	Going to market with 16 strong, entrepreneurial brands (5–100m €)
	Long-term focus	Every brand is a world leader in its discipline
Innovative	Holding 5× as many patents per employee as major corporations	Our brands are pioneers in Building Information Modeling
Customer focused	37% of all employees have regular customer contact (only 7% in major corporations)	All brands are developing their solutions in close cooperation with the customers
Internationally successful	Almost 50% of all small world market leaders are German	No 1 AEC software provider in Europe, one of the largest worldwide

Company Presentation

NEMETSCHEK Covers the Complete AEC Value Chain

Architecture | Engineering | Construction

Design	Build	Manage	Media & Entertainment

Company Presentation

AEC Market Opportunities

The world population will grow by 2.5 billion in the next 30 years

In 1810, 2% of the population lived in cities, in 2010 it was 50%

By 2050, most of the world will be living in megacities

We spend more than 20 hours a day in buildings

Buildings consume 40% of the world's energy, and that number is growing

90% of urban growth will happen in developing countries

Challenges in Construction Industry

Mostly due to Ineffective Communication, Planning and Collaboration

Source: Engineering-News Record 2017

Company Presentation

High Inefficiency in Construction Projects

150% 227% 243% 265% 325% 353% 525% 935% 1,357% 1,990% Olympic Stadium Montreal Opera House Sydney Scottish Parliament Edinburgh Telescope "Hubble" USA Subway line 4 Budapest Olympic games Stadium 2014 Sochi Olympic games Stadium 2012 London Skyscraper "The Shard" London World Cup Stadium 2014 Brazil Philharmonia Hamburg Total costs: \$ 3.1 bn \$ 0.8 bn \$ 1.0 bn \$ 4.5 bn \$ 2.0 bn \$ 51.0 bn \$ 16.4 bn \$ 2.1 bn \$ 3.6 bn \$ 1.1 bn Cost overruns in % (of original budget)

Huge Digitalization Potential for AEC

Source: Top500 study 2017, Accenture analysis

Company Presentation

What is BIM? There Are Different BIM Levels

Source: Based on "The BIM Maturity Model by Mark Bew and Mervyn Richards adapted to reflect BLM's relationship to Level 3"

Company Presentation

Huge Market Potential: The AEC BIM Software Market Will Grow to € 8 billion in 2021

Source: Cambashi BIM Design Observatory and internal research

Company Presentation

02 Financial Results Q3 / 9M 2018

Charles Perkinns Centre, Sydney, Australia

Architects: fjmt, fjmtstudio.com | Image: John Gollings | Realized with GRAPHISOFT

Top key figures 9M 2018: On the way to achieving the guidance and a next record year

Company Presentation

Growth driver recurring revenues: Smooth transition towards subscription ongoing

Revenue split 9M 2018

Recurring revenues Maintenance and rental models such as subscription, SaaS

Software licenses

Consulting & Hardware

Q3 2018	9M 2018	9M 2018 comments
Recurring revenues yoy +26.4%	Recurring revenues yoy +20.5%	Above average growth to ▌ € 162.4m
+26.5% cc1	+24.2% cc1
Subscription yoy	Subscription yoy	Strong growth to € 14.5m ▌
+64.7% +66.3% cc1	+46.9% +54.5% cc1	(previous year: € 9.9m) Strategic change of business ▌ model towards subscriptions
Software licenses yoy	Software licenses yoy	Double-digit growth in Q2 ▌
+14.1% +13.5% cc1	+9.1% +13.2% cc1	and Q3 9-month figures of € 155.8m ▌ in line with expectations

Internationalization is key: US is strongest growing market

Company Presentation 16 DECEMBER 2018

Segment overview: Build segment is key growth driver

Revenues in €m

Company Presentation

03 Future Steps / Outlook

Our Strategy to Exploit Market Potential: Organic Growth and Acquisitions

Mid-term goal 2020: Secure future double-digit growth while maintaining a high EBITDA margin Revenues 396 m € 447–457 m €1 > 600 m € 2017 2018 2020 EBITDA margin 25%–27% Result Outlook Goal | Revenues: double-digit growth rate | EBITDA margin: on sustainable level of 25%–27% | Investments 2018: additional 10 m euro to leverage future growth

¹ The revenue outlook is based on planned exchange rate of 1.18 EUR/USD

Company Presentation

Contact

NEMETSCHEK SE

Investor Relations Konrad -Zuse -Platz 1 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 reflects 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 .

Arena Pays d'Aix, Aix-en-Provence, France

Architects: Christophe Guilizzi Architecte, France| Image: Lisa Ricciotti | Realized with GRAPHISOFT

Safe Harbor Statement

Each of the presentations today will contain forward -looking statements about our strategies, products, future results, performance or achievements, financial, operational and otherwise, including statements about our strategic priorities, guidance and our mid -term goal, our M&A strategy, and our capital allocation initiatives. These statements reflect management's current expectations, estimates and assumptions based on the information currently available to us. These forward -looking statements are not guarantees of future performance and involve significant risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by the forward -looking statements contained in these presentations.

Nemetschek undertakes no obligation to publicly update or revise any forward looking statements. All forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates.

Charles Perkins Centre, Sydney, Australia

Architects: fjmt, fjmtstudio.com | Image: John Gollings | Realized with GRAPHISOFT