Nemetschek SE — Investor Presentation 2021

Nov 30, 2021

NEMETSCHEK GROUP

Nemetschek Group

Company Presentation

November 2021

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We Address the Pain Points of the Construction Industry

General challenges

Need for Affordable Housing

Housing shortage due to urbanization, especially in metropolitan areas.

Time & Cost Pressure in Projects

The constantly increasing complexity of construction projects leads to higher time, cost, and/or quality demands.

Sustainability

Climate protection requirements are putting pressure on the industry to build more sustainably.

Opportunities for us

Seamless Collaboration

Collaboration between different disciplines must be further improved in order to reduce information losses caused by silos.

Framework Conditions

Open data standards are the basis for seamless collaboration and higher efficiency.

Investments in Digitalization

Construction industry still lagging behind other industries. But regulations increase need for investments in Digitalization.

NOVEMBER 2021

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Sustainability: Gaining a Greater Importance for our Customers

The FOOTPRINT of the Building Industry

Buildings and construction account for

36% of global final energy use and
39% of energy-related CO2 emissions

Construction and demolition account for

35% of all waste in the EU

During the construction phase

10% of materials are wasted
30% of construction is rework

The HANDPRINT of our Customers

Renovation & Demolition

• Easier reconstruction of buildings
• Reusing raw materials

Operate & Manage

• Smart buildings
• Digital twins
• Efficient usage of office spaces and energy

Building & Construction

• Optimized usage of resources and materials via exact cost & time estimation
• Up to 60% less energy consumption and 90% less waste with prefabrication

Planning & Design

• Less errors & rework through cross-functional planning
• Green buildings
• Simulations
• Energy analysis
• Exact calculation of materials

Sources: Global Status Report 2019, UN Environment and the International Energy Agency. Engineering-News Record 2018/2019

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Intact long-term trend of AEC/O BIM Software Market is Offering huge Potential

Construction lagging behind Digitalization

Addressable market growth ~10% p.a.

5 | NOVEMBER 2021

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Our Positioning in the AEC/O Industry

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Nemetschek Group Drives Digitalization in the Construction Industry...

... for an efficient building lifecycle

• Pioneer for open standards
• Software solutions for the entire lifecycle of buildings, from planning and construction to facility management
• Close cooperation with science and universities
• 25% of revenue flow into research & development
• Named one of the 50 Sustainability & Climate Leaders by the U.N.

... local and global

• BIM solutions made in Germany, competition essentially abroad
• One of the top 3 software providers in Germany
• More than 3,000 employees worldwide, 25% of them in Germany
• Nearly €600 million in revenue, 24% of which are generated in Germany (2020)
• 15 brands with solutions for a wide range of customers at 80 locations worldwide

... with 60 years of commitment!

• Prof. Georg Nemetschek is founder, majority shareholder and spiritus rector of the Nemetschek Group

• Awarded with Konrad Zuse Medal for commitment to the construction industry and promotion of young talent as well as the Federal Cross of Merit for his lifetime achievements
• Nemetschek Innovation Foundation and Georg Nemetschek Foundation promote competence and excellence in the building industry (most recently: TU Munich Endowed Chair)

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Nemetschek Group's Leading-Edge Software Solutions

Covering the Entire Building Lifecycle

Planning & Design

Technology-edge design tools. Seamless collaboration among all stakeholders improves the overall project quality.

Build & Construct

Collaboration tools to connect office / field workers to increase efficiency along with world-class ERP tools.

Operate & Manage

Increase efficiency in buildings: 80% of a building's costs are generated during its operational phase.

Media & Entertainment

Visual and special effects & rendering to present objects in a realistic way for decision makers

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Financial Performance / Investment Story

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Market Overview: Continued Positive Market Conditions

Construction markets

Residential

Sub-segments:
Multi-Family Homes
Flats

Non-Residential

Sub-segments:
Education
Health
Commercial (e.g. Office)

Infrastructure

Sub-segments:
Airports
Bridges
Tunnels

Market Status

10 | NOVEMBER 2021

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Top Key Figures Q3-21: Continued Strong Growth With High Profitability

• Strong growth despite higher comparison base

• Strong customer focus drives demand for Nemetschek's leading software solutions

• Subscription/SaaS continues to be the main growth driver: +48.1% cc¹

• Substantial increase in share of Subscription/SaaS revenues to new record high of 20% (Q3-20: 15%)

• Q3-21: EBITDA margin: 32.1% vs. Q3-20: 31.4%

• Tax rate: 18.9% vs. 24.5% in previous year

• EPS before PPA amortization: 0.34 EUR (+32.9%)

1 Constant currency

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11 | NOVEMBER 2021

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Q3-21: Continued Strong Growth Despite Substantially Higher Comparison Base

Q1-20: First negative effects in pockets of growth
Q2-20: Main impact of Covid-19 pandemic
Q3- & Q4-20: Start of recovery and re-acceleration of growth

12 | NOVEMBER 2021

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Key Business Highlights 9M-21: Successful First Nine Months of the Year

Financial Performance

Revenues:
+13.0% (FX adj.: +15.7%) to EUR 493.6m

Subscription/SaaS:
+46.6% (FX adj.: +50.2%) to EUR 93.0m

EBITDA:
+24.0% to EUR 160.3m (Margin: 32.5%)

Earnings per Share
EUR 0.84 (+42.9% y/y)

High Cash Conversion:
102.1%

Equity Ratio:
52.0% (9M-20: 45.3%)

Strategic Highlights

Internationalization as a Growth Driver
- International expansion of brands (e.g. European expansion of US brands and vice versa)

Continued Progress on Harmonization
- Precast & SDS2 integration into Allplan progressing as planned
- Graphisoft and DDS join forces

Subscription/SaaS
- Growth underpins success of segment-tailored subscription strategy

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Record High: Share of Recurring and Subscription/SaaS Revenues

Revenue Share by Type in %

Software licenses
Consulting & Hardware
Recurring revenues
| Software services (43%)
| Subscription/SaaS (20%)

Q3-21
Recurring revenues y/y
+17.8%
+17.8% cc¹

Subscription/SaaS y/y
+48.0%
+48.1% cc¹

Software licenses y/y
+7.5%
+7.1% cc¹

9M-21
Recurring revenues y/y
+14.0%
+16.7% cc¹

Subscription/SaaS y/y
+46.6%
+50.2% cc¹

Software licenses y/y
+11.2%
+14.2% cc¹

14 | NOVEMBER 2021

¹ Constant currency

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Q3-21 Segment Overview: Continued Strong Momentum in Build, Record Quarter in M&E

• Very strong growth in Subscription/SaaS (+74% y/y)

• Q3-20: EBITDA margin artificially high due to cost-savings measures in response to Covid-19

• Bluebeam with continued strong growth in users

• Margin increase driven by strong growth and operational efficiency

• Continued double-digit growth

• New customer wins despite uncertain market environment

• Record growth in all regions

• Margin uplift after successful integration of acquisitions Red Giant & Redshift and subscription transition

15 | NOVEMBER 2021

1 Constant currency

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Summary 9M-21 – Successful First Nine Months of the Year

9M-21:

• Strategic Highlights
• First venture investments in promising start-ups
• Optimization of organizational structure
• Financial Highlights
• New record levels in revenue, EBITDA and EPS
• Substantial increase in Subscription/SaaS contribution
• Strong cash flow generation underpins high earnings quality

Long-term View:

• Long-term structural growth drivers unchanged
• Strong market position, products & customer relationships
• Continued progress on strategic initiatives
• Further reduction of organizational complexity
• Continuously screening the market for attractive & innovative start-ups

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Success based on Nemetschek’s strong operational business

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As a leading AEC software company, Nemetschek is well positioned for future growth

16 | NOVEMBER 2021

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Overall a Compelling Position: Strong Foundation for Sustainable Growth

Nemetschek SE

Attractive end-markets	Unique market position	Attractive business model	Strong financial position	Value accretive M&A plus Ventures
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/O 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%)	Very healthy balance sheet
Equity ratio: 49%
EUR 200m credit line secured
Long-term anchor shareholder	Strong track record of bolt-on acquisitions
Disciplined approach
Substantial financial fire power
Focus on long-term value generation

Ambition 2023

• Mid-teens growth starting in 2023 and following the successful Subscription/SaaS transition
• Share of Recurring Revenues: ~ 75% (t/o Share of Subscription/SaaS ~ 45%)

NOVEMBER 2021

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Outlook 2021: We Now Target the Upper End of Guidance Ranges

Outlook 2021:

Please note: The outlook is based on the assumption that there will be no material deterioration in the economic conditions in Q4-21 and that the Corona pandemic will continue to be under control.

NOVEMBER 2021

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19 | NOVEMBER 2021

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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 reflect 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.