Nemetschek SE

Investor Presentation • Oct 29, 2020

Irina Viner-Usmanova Rhythmic Gymnastics Center, Moscow, Russia

Architects: Creative Production Union PRIDE | Realized with Graphisoft

Nemetschek Group

Earnings Call Q3 - / 9M -2020

29 October 2020 | Dr. Axel Kaufmann, Spokesman & CFOO

Top Key Figures Q3-2020: Rebound stronger than expected

Key Business Highlights 9M-2020: Resilient Development in Uncertain Environment

Solid Financial Performance M&A Activities

Q1-2020: Red Giant by Maxon 9M-2020: Integration of Red Giant and Redshift progressing as planned. Expected to finish by Q1-21

Planning & Design Division:

Q2-2020: ADAPT by RISA. Strengthens structural engineering competence in the US

OCTOBER 2020 Earnings Call Q3- / 9M-2020 4 ¹ w/o DocuWare

Top Key Figures 9M-2020: Solid First 9 Months with Strong Growth in Recurring Revenues

Earnings Call Q3- / 9M-2020

Strong Growth in Recurring Revenues: Subscription Is Key Driver

Revenue distribution 9M-2020

6 Earnings Call Q3- / 9M-2020 OCTOBER 2020

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	Q3 2020	Q3 YoY	9M-2020	9M YoY	in % of revenue
Revenues	148.6	+7.5%	436.8	+7.6%	100.0%
Cost of materials/cost of purchased services	-6.1	+29.3%	-17.2	+22.5%	3.9%
Personnel expenses	-66.8	+10.4%	-196.4	+10.3%	45.0%
Other operating income/expenses	-29.0	-4.2%	-94.0	-0.5%	21.5%
EBITDA	46.7	+9.1%	129.3	+8.2%	29.6%
EBITDA margin	31.4%	+50bps	29.6%	+20bps	-
D&A (incl. PPA)	-12.2	+13.6%	-37.2	+20.0%	8.5%
EBIT	34.5	+7.6%	92.1	+4.1%	21.1%
EBIT margin	23.2%	+0bps	21.1%	-70bps	-
Net income1	25.2	+2.9%	67.7	+2.7%	15.5%
EPS	0.22	+2.9%	0.59	+2.7%	-
Operating cash flow	36.3	-18.9%	114.5	+0.4%	-
Free cash flow (w/o M&A & DocuWare)	33.9	-20.4%	107.5	+8.4%	-
Equity ratio in %	45.3%	-	45.3%	-	-
Net debt (liquidity)	5.2	-	5.2	-	-

¹ w/o DocuWare

Earnings Call Q3- / 9M-2020

9M Segment view: Design recovering, Build remains strong, Manage still burdened by Covid-19

New Design Solutions: Well Received by the Market

Integrated Design

Collaborative environment: For the first time, architects and engineers can work in the same 3D model together

Lead Brands: Graphisoft, SCIA, RISA

"Nemetschek Integrated Design - A Paradigm Shift for AECO" Architosh.com

"Integrated Design by Nemetschek Group to revolutionize collaboration in building projects" Der Bauunternehmer

Federated Design

Engineers now part of the BIM process: 3D structural model can be automatically converted into analysis model

Lead Brands: SCIA, Allplan

"Nemetschek Group creates automatic analysis model" Construction Global

"True Automation with the Nemetschek Group" Build Ing

Nemetschek Is Well Positioned!

Nemetschek SE

Attractive End	Unique market	Attractive business	Strong financial	Value accretive
markets	position	model	position	M&A
Huge growth potential Structural long-term growth drivers (low degree of digitalization) Growth supported by regulation	Best in class products Product offering along the complete AEC value chain Leader in Open BIM Close proximity to customers within our 4 divisions	Highly profitable Strong Cash conversion (~ 90%) High share of recurring revenues (approx. 60%) High returns (ROCE > 20%)	Very healthy balance sheet Net debt/EBITDA: < 0.1x Equity ratio: 45% EUR 200m credit line secured Long-term anchor shareholder	Strong track record of bolt-on acquisitions (e.g. Bluebeam) Disciplined approach Substantial financial fire power Focus on long-term value generation

Operating mode via four strong divisions with leading global brands

Covid-19 Impact: Status Quo after 9M-2020

Covid-19 impact so far:

• Slowdown in Europe & Asia in Q2 followed by rebound in Q3
• High uncertainty in US in Q4
• Stabilization in new licenses in Q3
• Solid growth in recurring revenues

First measures quickly implemented:

• Sales & support activities adapted to new environment
• Cost saving measures initiated
• Financial position further improved, i.e. additional credit line of EUR 200m

Our working assumptions

• Q4 still impacted by Covid-19
• Strong ramp-up in investments in Q4 and FY-21
• Timing of Covid-19 impact on our business:

By division:

Design M&E Manage Build

By geography:

APAC Europe Americas

▪ Continued weakness in new licence & solid growth in recurring revenues

Status quo after 9M-2020 Our response to the challenges

• ➢ Our first priority is the safety of our employees and customers
• ➢ We ensure business continuity and support our customers and the society in this difficult situation.
• ➢ We will continue to...:
  • monitor the situation closely and steer the business on sight
  • be flexible and quick to react to new developments (e.g. Spacewell workplace solutions)
  • stay opportunistic

Outlook 2020:

| Revenues: Growth expected to be in the mid-single-digit percentage range (previously: At least stable to slightly growing) | EBITDA margin: 28-29% (previously: > 26%) | Please note: Guidance reflects the still high degree of uncertainty regarding the macroeconomic outlook for the remainder of the year

Income Statement

€m	9M -2020	9M -2019	%YoY
Revenues	436.8	406.0	+7.6%
Other operating income	7.3	5.1	+42.7%
Operating income	444.1	411.1	+8.0%
Cost of materials/purchased services	-17.2	-14.0	+22.5%
Personnel expenses	-196.4	-178.1	+10.3%
Other operating expenses	-101.3	-99.6	+1.7%
Operating expenses	-314.8	-291.7	+7.9%
EBITDA	129.3	119.4	+8.2%
Margin	29.6%	29.4%	-
Depreciation and amortization	-37.2	-31.0	+20.0%
t/o right -of -use assets	-11.7	-10.8	+7.6%
t/o PPA	-18.5	-12.5	+47.8%
EBITA (normalized EBIT)	112.1	103.4	+8.4%
EBIT	92.1	88.5	+4.1%
Financial result	-1.7	+28.7	-
t/o Gain on disposal of shares in associates (DocuWare)	0.0	29.9	-
t/o IFRS 16	-1.1	-1.1	-3.2%
EBT	90.4	117.1	-22.9%
Income taxes	-22.0	-21.6	+1.8%
Non -controlling interests	0.6	0.1	-
Net income (group shares)	67.7	95.4	-29.0%
EPS in EUR	0.59	0.83	-29.0%

Balance Sheet – Assets

€m	September 30, 2020	December 31, 2019
Assets
Cash and cash equivalents	146.6	209.1
Trade receivables, net	61.1	62.0
Inventories	0.6	1.0
Other current assets	30.3	23.3
Current assets, total	238.6	295.5
Property, plant and equipment	23.0	27.6
Right-of-use assets	56.6	66.2
Intangible assets	143.6	127.7
Goodwill	404.9	325.0
Other non-current assets	14.4	15.2
Non-current assets, total	642.4	561.7
Total assets	881.0	857.2

Balance Sheet – Equity and Liabilities

€m	September 30, 2020	December 31, 2019
Equity and liabilities
Short-term borrowings and current portion of long-term loans	69.9	58.6
Trade payables & accrued liabilities	54.6	56.4
Deferred revenue	134.5	118.5
Current lease liability	13.1	12.6
Other current liabilities	27.4	25.6
Current liabilities, total	299.5	271.6
Long-term borrowings without current portion	81.9	129.5
Deferred tax liabilities	26.1	23.3
Non-current lease liability	49.9	57.7
Other non-current liabilities	25.0	26.4
Non-current liabilities, total	182.8	236.9
Subscribed capital and capital reserve	128.0	128.0
Retained earnings	253.4	230.9
Other comprehensive income	-31.4	-10.4
Non-controlling interests	48.7	0.1
Equity, total	398.7	348.6
Total equity and liabilities	881.0	857.2

Earnings Call Q3- / 9M-2020

Cash Flow Statement

€m	9M-2020	9M-2019	% YoY
Cash and cash equivalents at the beginning of the period	209.1	120.7	+73.2%
Cash flow from operating activities	114.5	114.1	+0.4%
Cash flow from investing activities	-90.3	-79.3
t/o CapEX	-7.3	-15.0
t/o Cash paid for acquisition of subsidiaries, net of cash acquired	-83.3	-97.7
Cash flow from financing activities	-81.8	13.2
t/o Dividend payments	-32.3	-31.2
t/o Repayments of borrowings	-43.1	-43.6
t/o Changes in bank liabilities due to company acquisitions	0.0	100.0
t/o Principal elements of lease payments	-9.6	-8.3
FX-effects	-4.8	2.7
Cash and cash equivalents at the end of the period	146.6	171.5	-18.5%
Free cash flow1	24.2	34.8	+30.5%
Free cash flow1 (w/o acquisition effects)	107.5	132.5	-18.9%

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

Safe Harbor Statement

The presentation today does 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.

20 OCTOBER 2020 Earnings Call Q3- / 9M-2020