Nemetschek SE — Investor Presentation 2018

Jul 2, 2018

Nemetschek Group

Company Presentation June 2018

The Blue Planet, Copenhagen, Denmark Contractor: MT Højgaard, Denmark | Image: Tom Roe | Realized with SOLIBRI

Nemetschek's key achievements: #2 biggest listed software company in Germany

4-year TSR*:

▌ We generate high shareholder returns1

▌ Nemetschek: ~500% ▌ Peer group2: ~110% ▌ TecDAX : ~120%

• ▌ We outperform our peers2
• 4-year revenue CAGR:
• ▌ Nemetschek: >20% ▌ Peer group2: <10%

▌ We keep our promises

FY 2017:

▌ Strong revenue growth by +17.3% to € 395.6m

▌ EBITDA guidance with € 108.0m exceeded

▌ We have become a global player

▌ Impressive track record: 5-year CAGR of 45% in the US – the world's largest / most competitive AEC market

• ▌ We deliver high profitability despite significant growth investments
• ▌ Focus on growth: Double-digit revenue growth with sustainable EBITDA margin corridor of 25%-27%

2

¹ TSR: Total shareholder return: Share price performance + dividend | 2 Peer group: International software companies

Nemetschek's industry achievements: #2 biggest global player in AEC

3

• ▌ Highly specialized small or midsized companies
• ▌ Long-term focus
• ▌ Innovative: holding 5x as many patents per employee as major cooperations
• ▌ Customer focused: 37% of all employees have regular customer contact (only 7% in major cooperations)

• ▌ Internationally successful: Almost 50% of all small world market leaders are German

• ▌ Going to market through 15 strong brands (5-80m €)

• ▌ Every brand is a world leader in its discipline
• ▌ Innovative: Many brands are pioneers in Building Information Modeling
• ▌ Customer focused: All brands are developing their solutions in close cooperation with the customers

• ▌ Internationally successful: No 1 AEC software provider in Europe, one of the largest worldwide

• 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

Financial Results Q1 2018

CAPITAL MARKET PRESENTATION

6

Charles Perkins Centre, Sydney, Australia

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

Top key figures Q1 2018: High profitability and revenue growth according to plan

7

Growth driver recurring revenues: Smooth transition towards subscription

Recurring revenues Maintenance and rental models such as subscription, SaaS

Software licenses

Consulting & Hardware

¹ Constant currency 2 Previous year

Recurring revenues yoy +22.4% cc1 +15.6%	▌	Above average growth to €50.6m (previous year: €43.8m)
Subscription yoy	▌	High growth to €4.3m (previous year: €3.2m
+47.3% cc1 +33.8%	▌	Strategic change of the business model, smooth transition towards subscriptions while respecting the customer wishes
Software licenses yoy +4.8% cc1 -2.6%	▌ ▌	Strong growth in Q1 2017 (+20.4%) Shift to recurring revenues

Revenue split Q1 2018

¹ Constant currency 2 Previous year

Germany

Americas

Segment overview: Build segment is key growth driver

Revenues in €m

High cash generation: Cash conversion of more than 90% allows for strategic M&A

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

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 growing

JUNE 2018 CAPITAL MARKET PRESENTATION 13

90% of urban growth will happen in developing countries

Construction productivity has increased 60% over the last 60 years

JUNE 2018 CAPITAL MARKET PRESENTATION 14

In the same period, manufacturing has increased productivity 760%

The AEC Market grows to € 7.4 billion in 2021

Top 3 countries per Geography	1	2	3
APAC	Japan	China	Australia
EUE (2017)	€ 458m	€ 190m	€ 75m
Americas	US	Canada	Brazil
EUE (2017)	€ 1,261m	€ 125m	€ 56m
EMEA	Germany	UK/I	France
EUE (2017)	€ 550m	€ 259m	€ 199m

End-user-expenditures (EUE) in m€

Source: Cambashi BIM Design Obseratory and internal reserach

Outlook 2018/ Mid -Term Goal 2020

Charles Perkins Centre, Sydney, Australia

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

03

Mid-term goal 2020: Secure future double-digit growth while maintaining a high EBITDA margin

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

Strong operating profit and additional extraordinary investments of €10 million in 2018

Key drivers & fields of investments

• 1 Internationalization
• ² Next generation products & solutions

3 Operational excellence

Taking advantage of market leaderships

▌ Strong US brands support US market entry for European brands and vice versa

Focus on markets with biggest potential

▌ USA followed by Europe and Asia

Architecture & structural engineering

▌ Targeting large customers by combining superior discipline specific products into total BIM-workflow solutions

Collaboration

• ▌ Development of a group-wide UK BIM compliant Common Data Environment (CDE)
• ▌ Huge market potential: Collaboration market size of >€1 bn with a midteens growth rate

Increase efficiency

▌ Implementation of a groupwide harmonized core application infrastructure to leverage process efficiency

Excellent positioning in dynamically growing market

¹ Source: Cambashi

Financial Calendar

04

July 27, 2018	Publication of 6 -month report
October 30, 2018	Publication of 9 -month report
2nd half of 2018	Capital market day

Queensferry Crossing, Edinburgh, Great Britain

General Planner: Leonhardt, Andrä und Partner | Image: Liam Anderstrem | Realized with ALLPLAN

P+L statement Q1 2018 comparison

€m	Q1 2018	Q1 2017	% YoY
Revenues	102.2	96.3	+6.2%
Own work capitalized/other operating income	1.0	1.0	-3.7%
Operating income	103.2	97.3	+6.1%
Cost of materials/purchased services	-3.3	-2.7	+18.9%
Personnel expenses	-45.1	-43.4	+4.0%
Other operating expenses	-26.9	-24.8	+8.4%
Operating expenses	-75.3	-70.9	+6.1%
EBITDA	27.9	26.3	+5.9%
Margin	27.3%	27.4%
Depreciation of PPA and amortization	-5.3	-5.5	-3.2%
t/o PPA	-3.4	-3.5	-4.0%
EBITA (normalized EBIT)	26.0	24.4	+6.5%
EBIT	22.6	20.9	+8.3%
Financial result	-0.1	-0.2
EBT	22.5	20.7	+8.8%
Income taxes	-5.5	-5.9	-6.3%
Non-controlling interests	-0.6	-0.6
Net income (group shares)	16.4	14.2	+15.2%
EPS in EUR	0.43	0.37	+15.2%

Outstanding success in the US: Worldwide largest single AEC market

121,6

US market (m€)

+44.8%

Key achievement:

▌ Nemetschek has become a global player

Exemplary growth story in the US:

19,1

▌ With roots in Germany, Nemetschek increased its revenues with a 5-year CAGR of 45% in the biggest and most competitive market, the USA

€m	March 31, 2018	December 31, 2017
Assets
Cash and cash equivalents	120.9	104.0
Trade receivables, net	44.6	41.0
Inventories	0.5	0.6
Other current assets	19.0	13.5
Current assets, total	184.9	159.1
Property, plant and equipment	14.7	14.9
Intangible assets	81.8	86.9
Goodwill	190.7	192.7
Other non-current assets	7.3	7.3
Non-current assets, total	294.6	301.7
Total assets	479.5	460.8

€m	March 31, 2018	December 31, 2017
Equity and liabilities
Short-term borrowings and current portion of long-term loans	36.0	36.0
Trade payables & accrued liabilities	36.6	43.7
Deferred revenue	87.3	68.1
Other current assets	20.9	18.0
Current liabilities, total	180.9	165.7
Long-term borrowings without current portion	37.4	43.9
Deferred tax liabilities	13.0	13.5
Other non-current liabilities	6.5	9.6
Non-current liabilities, total	56.9	67.1
Subscribed capital and capital reserve	51.0	51.0
Retained earnings	210.1	193.2
Other comprehensive income	-22.5	-18.7
Non-controlling interests	3.1	2.5
Equity, total	241.7	227.9
Total equity and liabilities	479.5	460.8

€m	March 31, 2018	March 31, 2017	% YoY
Cash and cash equivalents at the beginning of the period	104.0	112.5	-7.6%
Cash flow from operating activities	26.6	22.2	+19.6%
Cash flow from investing activities	-1.9	-25.9	-92.8%
t/o CapEX	-1.9	-1.2	+57.0%
t/o Cash paid for business combinations	0.0	-24.5
Cash flow from financing activities	-6.7	-6.9
t/o Repayments of borrowings	-6.5	-6.5
FX-effects	-1.1	-0.5
Cash and cash equivalents at the end of the period	120.9	101.4	+19.2%
Free cash flow1	24.7	-3.7
Free cash flow1 (w/o acquisition effects)	24.7	20.8	+19.0%

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.