Nemetschek SE — Investor Presentation 2018

Jul 27, 2018

Nemetschek Group

Financial Highlights Second Quarter / Half Year 2018 July 27, 2018

¹ Constant currency

Top key figures H1 2018: On the way to achieving the guidance for 2018

¹ Constant currency

Growth driver recurring revenues: Smooth transition towards subscription

Revenue split H1 2018

Recurring revenues Maintenance and rental models such as subscription, SaaS

Software licenses

Consulting & Hardware

¹ Constant currency ² Previous year

Q2 2018 H1 2018		H1 2018 comments
Recurring revenues yoy	Recurring revenues yoy	Above average growth to ▌
+23.6% cc1 +19.3%	+23.0% cc1 +17.4%	€104.1m (previous year: €88.7m)
Subscription yoy	Subscription yoy	Strong growth to €8.9m ▌
+49.4% cc1 +41.2%	+48.3% cc1 +37.6%	(previous year: €6.5m) Strategic change of business ▌ model: smooth transition towards subscriptions
Software licenses yoy	Software licenses yoy	Accelerated growth in Q2 ▌
+21.4% cc1 +16.1%	+13.1% cc1 +6.7%	Half year figures of 103.4 ▌ mEUR in line with expectations

Internationalization is key: Growth accelerated in Q2 in all regions

¹ Constant currency ² Previous year

Segment overview: Build segment is key growth driver

Revenues in €m

Net liquidity situation allows for strategic M&A

¹ Operating cash flow/EBITDA ²Previous year = End of 2017

8

Entering new markets / Partnerships

• ▌ Allplan opened up new office in West Chester, USA, to address the US concrete reinforcement market
• ▌ dRofus adds first US based reseller partner
• ▌ Bluebeam with stronger focus on UK and Germany

Acquisition (Brand-level)

• ▌ Bluebeam acquires project Atlas' groundbreaking visualization SaaS solution "maps" for construction industry
• ▌ Nevaris acquires market leader in mobile construction site management 123erfasst.de

Cross-brand highlights / Interoperability

• ▌ First dRofus and Graphisoft Open BIM Project in Australia – Sunshine Coast University Hospital
• ▌ First Allplan Bridge software released

Increase efficiency

▌ Implementation of groupwide infrastructure is on track

Outlook 2018 confirmed: H1 figures show we are on track to reaching full-year guidance

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

Financial Calendar

September 24, 2018	Berenberg & Goldman Sachs German Corporate Conference, Munich
September 25, 2018	Baader Investment Conference, Munich
October 30, 2018	Publication of 9-month report
November 13, 2018	Capital market day
November 15, 2018	Morgan Stanley TMT Conference, Barcelona
November 27, 2018	Equity Forum, Frankfurt
December 6, 2018	Berenberg European Conference, Pennyhill

Now it's your turn. Q&A

€m	Q2 2018	Q2 2017	% YoY	H1 2018	H1 2017	%YoY
Revenues	113.8	97.7	+16.5%	216.0	194.0	+11.4%
Own work capitalized/other operating income	2.2	1.1	+90.9%	3.1	2.1	+47.1%
Operating income	116.0	98.8	+17.4%	219.2	196.1	+11.8%
Cost of materials/purchased services	-3.4	-3.5	-4.7%	-6.6	-6.3	+5.6%
Personnel expenses	-48.9	-42.1	+16.3%	-94.1	-85.5	+10.0%
Other operating expenses	-32.6	-27.9	+17.0%	-59.5	-52.7	+13.0%
Operating expenses	-84.9	-73.5	+15.6%	-160.2	-144.4	+10.9%
EBITDA	31.1	25.3	+22.6%	59.0	51.7	+14.1%
Margin	27.3%	25.9%		27.3%	26.6%
Depreciation of PPA and amortization	-5.5	-5.4	+1.8%	-10.8	-10.9	-0.7%
t/o PPA	-3.4	-3.4	+0.5%	-6.8	-6.9	-1.8%
EBITA (normalized EBIT)	29.0	23.3	+24.2%	55.0	47.7	+15.2%
EBIT	25.6	19.9	+28.3%	48.2	40.8	+18.0%
Financial result	0.3	-0.2		0.1	-0.4
EBT	25.8	19.7	+31.1%	48.3	40.4	+19.7%
Income taxes	-7.0	-5.6	+24.6%	-12.5	-11.5	+8.8%
Non-controlling interests	-0.7	-0.6		-1.4	-1.2
Net income (group shares)	18.1	13.5	+34.2%	34.5	27.7	+24.5%
EPS in EUR	0.47	0.35	+34.2%	0.90	0.72	+24.5%

€m	June 30, 2018	December 31, 2017
Assets
Cash and cash equivalents	85.3	104.0
Trade receivables, net	53.3	41.0
Inventories	0.6	0.6
Other current assets	21.0	13.5
Current assets, total	160.1	159.1
Property, plant and equipment	15.9	14.9
Intangible assets	81.3	86.9
Goodwill	198.6	192.7
Other non-current assets	7.5	7.3
Non-current assets, total	303.3	301.7
Total assets	463.4	460.8

€m	June 30, 2018	December 31, 2017
Equity and liabilities
Short-term borrowings and current portion of long-term loans	26.0	36.0
Trade payables & accrued liabilities	40.3	43.7
Deferred revenue	91.3	68.1
Other current assets	18.0	18.0
Current liabilities, total	175.6	165.7
Long-term borrowings without current portion	30.9	43.9
Deferred tax liabilities	12.9	13.5
Other non-current liabilities	7.8	9.6
Non-current liabilities, total	51.6	67.1
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	199.3	193.2
Other comprehensive income	-16.3	-18.7
Non-controlling interests	2.2	2.5
Equity, total	236.2	227.9
Total equity and liabilities	463.4	460.8

€m	June 30, 2018	June 30, 2017	% YoY
Cash and cash equivalents at the beginning of the period	104.0	112.5	-7.6%
Cash flow from operating activities	43.4	44.5	-2.5%
Cash flow from investing activities	-8.2	-28.7	-71.3%
t/o CapEX	-5.2	-4.0	+28.3%
t/o Cash paid for business combinations	-3.1	-24.5
Cash flow from financing activities	-54.0	-39.9
t/o Repayments of borrowings	-23.0	-13.0
FX-effects	0.1	-4.9
Cash and cash equivalents at the end of the period	85.3	83.4	+2.2%
Free cash flow1	35.1	15.7
Free cash flow1 (w/o acquisition effects)	38.2	40.2	-5.1%

¹ Operating cash flow – Investing cash flow

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.