Nemetschek SE — Investor Presentation 2019

Jun 28, 2019

University Library Freiburg, Germany

Architects: Degelo Architects, Basel, Switzerland | Image: Andrea Secci | Realized with GRAPHISOFT

Company Presentation Nemetschek Group

July 2019 | Patrik Heider, Spokesman & CFOO

Nemetschek's Key Figures: 5 Years - 5 Achievements

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¹ TSR: Total shareholder return: Share price performance + dividend | 2013–2018 | ² Peer group: International software companies

5-Years Development: Positioned to Provide Strong Growth

¹ 2013–2018

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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

NEMETSCHEK GROUP Provides Expertise Along the Complete AEC Value Chain

01 Financial Results Q1 2019

Key Business Highlights in the First Quarter: Excellent Start in the FY 2019

Strong Performance M&A Successes

Revenues:

IFRS 16 adjusted: 25.5% EBITDA margin: 28.2%

+27.1% to € 129.9m

Recurring revenues +33.9% Subscription revenues +124.8%

Revenues abroad +32.7%

Dividend proposal: €0.81 per share

High cash conversion 94.1%

Brand-level acquisitions: Manage Division

Axxerion by MCS, renamed afterwards in Spacewell

Redshift by Maxon Media & Entertainment Division

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Growth Driver Recurring Revenues: Strongest Growth in Subscription

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Internationalization Is Key: Broad Growth Across All Regions

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Segment Overview: Build Segment Remains Key Growth Driver in Q1

Revenues in m€

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02 AEC Market Opportunities BIM Market Potential

Independent Bank Headquarters, McKinney, USA

General contractor: Rogers-O'Brien Constuction, Dallas, USA | Image: Justin Hearn | Realized with Bluebeam

Challenges in Construction Industry

Mostly due to Ineffective Communication, Planning and Collaboration

Source: Engineering-News Record 2017

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Construction Projects: Running out of Time and Cost

Type of Project	Cost Overrun1 Average
Bridges	11%
Roads	27%
Railways	30%
Buildings	39%
Airports	56%
Waterways	68%
Tunnels	149%

Cost and time overruns occur in ~90% of the projects

¹ Source: Herite School of governance (2015), 170 infrastructure projects analyzed | ² Flyvbjerg et al. (2013): Underestimating Costs in Public Works Projects: Error or Lie?

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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"

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

Source: Cambashi BIM Design Observatory and internal research

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03 Strategic Priorities / Financial Outlook

Montforthaus, Feldkirch, Austria

Falcon Hospital, Guangzhou, China

Visualization: Slashcube, Switzerland | Realized with MAXON

HASCHER JEHLE Architektur, Germany | Images: David Matthiessen | realized with NEVARIS

Numerous Stakeholders: Huge Information Loss at the Hand-Over Points

Full Cycle BIM

Information is collected during each phase of the building lifecycle. Stakeholders still act in silos. Owners are demanding that the overall process be optimized. At the handoff points, which is a huge loss in terms of efficiency and leads to additional cost.

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Three Strategic Initiatives to drive the End-to-End BIM Workflow

and drive the whole information flow by leveraging building lifecycle project data in new ways

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construction solutions

Investment Focus: Our Strategic Investments of € 10 Million in 2018

3 Strategic initiatives to drive next-generation solutions

1. From Design to Build

| Targeting large customers by connecting the competences of brands | Disruptive workflow for design collaboration | Growing positioning in infrastructure

2. Transformative construction solutions

| Connected solutions to digitalize workflows and leverage construction project data in new ways | Empower file users with mobile solutions

3. Smart Building Platform

| Creating an integrated portfolio for the total building management lifecycle | Closing the loop towards design & build | Multi-source intelligent data hub for improving building, people and service performance

Enter adjacent markets

• | Leverage regional market leadership
• and competencies across brands
• | Investments in local market presence, resources, and end-to-end localized customer experience

Focus on markets with biggest potential

| USA followed by Europe and Asia

Increase efficiency

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

Outlook 2019: Strong Double-Digit Growth While Maintaining a High EBITDA Margin

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Contact

NEMETSCHEK SE Investor Relations

Konrad -Zuse -Platz 1 81829 Munich Germany

investorrelations@nemetschek.com www.nemetschek.com

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.

Ingenuity Center, Nottingham, Great Britain Architects: Bond Bryan Architects, Great Britain | Realized with GRAPHISOFT

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