NEMETSCHEK GROUP Company Presentation...NEMETSCHEK GROUP Company Presentation May 2017 Barco One Campus, Kortrijk, Belgium ... Electronics & high tech. Service providers. Logistics

NEMETSCHEK GROUPCompany Presentation

May 2017

Barco One Campus, Kortrijk, BelgiumArchitects: Jaspers-Eyers Architects | Engineering Office: Establis

Image: Marc Detiffe | Realized with GRAPHISOFT and SCIA

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NEMETSCHEK GROUP: In Brief………………………...….……………………………….......3

Trends & Strategy…...………………………………………………………………………………8

Financials: Q1 2017…………………….....………………………………………………...........14

NEMETSCHEK Share………..………...……………..………………………….…………….....24

Outlook: FY 2017.…………………………………….…………………….……………………...27

Appendix…………………………………………………………………….….……………...…...29

Contact...………………………..…………………………………………….…………………….34

MAY 2017 COMPANY PRESENTATION

Agenda


Our Founder

Mission: „We drive digitalization and innovation for the entire life cycle of the AEC industry!“

Vision: Innovation driver and digital backbone of the AEC industry with strong global brands and customer proximity.

Responsibility: Prof. Nemetschek establishes the Nemetschek charitable foundation, supporting projects in the areas of education, science and research, arts and culture, the environment, international understanding and social projects.

Prof. Georg NemetschekFounder and Member of the Supervisory Board of Nemetschek SE

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MAY 2017 COMPANY PRESENTATION 4

The Philosophy of Nemetschek

We are a Group of industry leaders with a unique DNA and expertise in the AEC* industry.

All of our strong brands share the same mission:

“We are open and declare our support of Open BIM, a standard that allows maximum flexibility and a seamless collaboration of all the parties involved in the construction process so that quality is enhanced in construction in compliance with time and cost schedules.”

* Architecture, Engineering, Construction

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History: 50 Years of Innovation and Success

* Building Information Modeling

INTERNATIONALIZATION INNOVATION DRIVERSPIRIT OF INVENTION

1980Nemetschek presents the first computer-aided engineering software (CAE)

1984The first CAD solution ALLPLAN 1.0 appears on the market

1998Numerous acquisitions: Frilo, Glaser, Bausoftware, Crem

2000Acquisition: Vectorworks.Group headquarters move to new premises at the Munich Fair

2017Acquisition: dRofus

1963Georg Nemetschek, a certified engineer, founds the “engineering firm for the construction industry”

TODAYGlobally leading software company in Open BIM* and 5D

2013Acquisition: Data Design System

2006Graphisoft and Sciabecome subsidiaries of the Nemetschek Group

1983Internationalization begins in Austria and Switzerland

1999IPO of Nemetschek. Acquisitions: Maxon, Auer

1968The first use of computers in the construction industry

1997Nemetschek presents the database-driven platformO.P.E.N. – known today as BIM*

2008Founding of Allplan GmbH(formerly Nemetschek Allplan Systems GmbH)

2005Founding of Precast Software Engineering(formerly Nemetschek Engineering)

2016Acquisitions: Solibri andDesign Data.Conversion of Nemetschek AG into a SE.

2014Acquisition: BluebeamSoftware. Investment in the start-up Sablono GmbH

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Nemetschek at a Glance


Facts and figures> 50 years of innovation, founded in 1963 and headquartered in Munich, GermanyOpen BIM pioneer and 5D provider with software solutions for the AEC* and media industry 14 strong brands337.3 mEUR sales revenues (2016)2.3 million users in 142 countriesAbout 2,000 employees worldwide60 locations in more than 40 countriesIPO 1999, listed in the TecDax2.3 billion EUR market capitalization

* Architecture, Engineering, Construction

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Media &Entertainment

Strong Brands under One Umbrella


MANAGEBUILDDESIGN

Architecture Engineering Construction

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

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Trends & Strategy


WorkflowsDrawings

Since 1985

Models

Today Tomorrow

AEC Industry in Transition

COMPANY PRESENTATIONMAY 2017 9

Mega Trend Digitalization – Entering The Industries


3,82

3,33

3,30

3,21

3,12

3,10

3,03

3,01

2,90

2,70

2,51

2,47

2,35

2,05

1,97

1,97

1,82

most some few very few1.0 2.0 3.0 4.0

Source: TOP 500 survey 2014 / Accenture

Average: 2,8

Telecommunications

Media & entertainment

Information technology

Automobile manufacturers

Electronics & high tech

Service providers

Logistics & transportations

Mechanical & plant engineering

Trade

Pharmaceutical & medical-device industry

Consumer goods

Utility sector

Automotive supplier

Chemical industry

Metals

Construction

Oil & Gas

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IT Spending as a % of Revenue by Industry (2015)


1,1

1,2

1,3

1,4

1,5

1,8

2,1

2,2

2,9

2,9

3,0

3,1

3,9

4,1

4,5

4,6

5,5

6,5

6,9

0% 1% 2% 3% 4% 5% 6% 7% 8%

Source: IT Key Metrics ‚Data 2015

Software Publishing and Internet Services

Banking and Financial Services

Education

Media and Entertainment

Professional Services

Healthcare Providers

Telecommunication

Pharmaceuticals, Life Sciences and Medical

Transportation

Insurance

Utilities

Industrial Electronics and Electrical Equipment

Consumer Products

Industrial Manufacturing

Retail and Wholesale

Chemicals

Food and Beverage Processing

ConstructionEnergy

90

525

2015 2025

Global IT Investment in construction increasing

Source: McKinsey

19%CAGR

Average: 3,4

in billion USD

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North America

1478

North America

2685

Europe1222

Europe2772

APAC872

APAC1653

ROW 488

ROW 838

2015 2020

BIM Market Size 2015/2020

BIM Market Size and Growth


Europe$ 1,222 mUSD +13.4%

North America$ 1,478 mUSD +12.7%

$ Market Size 2015 CAGR 2015 - 2020

Total7,948 mUSD

Total4,313 mUSD

+11.4%

+13.6%

+13.4%

+12.7%

CAGR

BIM Market by Region 2015

CAGR: +13%5 years

APAC$ 872 mUSD +13.6%

ROW$ 488 mUSD +11.4%

Source: BIM Market, Global Trends and Forecasts (2015-2020)

Markets and Markets

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Status of Current BIM Regulations and Use


Source: HSBC, Kepler Cheuvreux

50%

95%

We currently use BIM

In five year's time we will use BIM

National UK BIM Report survey on future use of BIM

Countries currently recommending or mandating BIMCountries recommending BIM as of 2017Countries with BIM guidelines/ positive BIM development

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Financials: Q1 2017

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15MAY 2017 COMPANY PRESENTATION

Nemetschek Group Highlights for Q1 2017 (1)

Dynamic revenue growth in Q1 2017

Q1 revenues increased strongly by 24.0% to 96.3 mEURInorganic effects – dRofus (1.3 mEUR) and Design Data (3.1 mEUR)Organic growth of high 18.3%

Strong revenue increase abroad

Revenues abroad increased significantly by 26.5% to 67.5 mEURRevenue share outside of Germany at 70.1%, Americas at 27.0%Growth regions: Americas, Asia, NordicDomestic revenues also in growth mode with +18.5% to 28.8 mEUR

Growth driver: Recurring revenues

Recurring revenues up by 31.5% to 43.8 mEURRecurring revenue share at high 45.4% Positive revenue development of software licenses: +20.4% to 48.5 mEURBoth, high recurring revenues and new customers secured

EBITDA grew stronger than revenues –profitability increased

EBITDA up by 25.5% yoy to 26.3 mEUREBITDA margin increased from 27.0% to 27.4% No activation of R&D costsStrategic investments to secure future growth: Internationalization, cross-brand developments, innovations

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Significant growth of net income and EPS

Net income (group shares) increased significantly by 28.6% to 14.2 mEUREPS up to 0.37 EUR (previous year: 0.29 EUR)Net income w/o PPA increased by 28.3% to 16.7 mEUREPS (w/o PPA) accordingly at 0.43 EUR

Cash and solid balance sheet

Cash and cash equivalents at 101.4 mEUR despite dRofus acquisitionNet liquidity at 11.7 mEUREquity ratio of 45.2% - leeway for further investments / acquisitions

Dividend Dividend proposal of 0.65 EUR per share (previous year: 0.50 EUR per share)Dividend increase of 30% yoyTotal amount to be distributed of 25.025 mEURProposal to the AGM on June 1, 2017 in Munich

Outlook confirmed

Q1 as a very good basis for the fiscal year 2017Continuing to be the fastest growing software company in Europe Revenue target range: 395 - 401 mEUR, increase of +17% - +19% Thereof organic: +13% - +15%, inorganic effects through dRofus and Design DataEBITDA target range: 100 - 103 mEUR (+16 - +20%)High EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

Nemetschek Group Highlights for Q1 2017 (2)


Revenues: Excellent and dynamic start in the fiscal year 2017


77,783,8 83,9

91,996,3

+24.0%

Revenues in mEUR

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Q1 2017 Revenues up by 24.0% to 96.3 mEUR Acquired companies dRofus and Design

Data contributed around 4.4 mEUR Organic growth of 18.3% yoy

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International Growth In Focus, More than 50 Locations

AMERICASBrazilCanadaMexicoUSA

WESTERN ANDSOUTHERN EUROPEAustriaBelgiumFranceGreat BritainGermanyItalyNetherlandsSpainSwitzerland

ASIAChinaJapan

Singapore

NORTHERN AND EASTERN EUROPE

Czech RepublicFinland

HungaryNorwayRussia

SlovakiaSweden


AUSTRALIA

Germany30%

Europe w/oGermany

34%

Americas27%

Asia/Pacific9%

Software license revenues

50,4%

Recurring revenues*

45,4%

Consulting & Hardware

4,2%

* Software services, rental models (Subscriptions, SaaS)

High share of recurring revenues


Revenues split Q1 2017 in %

Recurring revenues* High growth of 31.5% to 43.8 mEUR High recurring revenue share of 45.4%

leads to higher stability

Software license revenues Up by 20.4% to new high of 48.5 mEUR New customers wins Increasing customer base Consequently recurring revenues will

follow

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EBITDA increased stronger than revenues


21,0

24,6

21,0 21,4

26,3

+25.5%

in mEUR

Change

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Margin +27.0% +29.3% +25.1% +23.3% +27.4%

EBITDA Up by 25.5% to 26.3 mEUR

EBITDA margin EBITDA margin improved to 27.4% High EBITDA margin despite strategic

investments to secure future growth and lower EBITDA margins of strongly expanding acquired brands

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Net income and EPS with significant growth of 28.6% yoy


11,0

13,014,2

16,7

+28.6%

Net income Net income w/o PPAin mEUR in mEUR

Change

Q1 2016 Q1 2017 Q1 2016 Q1 2017

+28.3%

0,290,340,37

0,43

+28.6%

EPS EPS w/o PPAin EUR in EUR

Q1 2016 Q1 2017 Q1 2016 Q1 2017

+28.3%

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Segment overview


20,0 19,5

1,55,2

30,027,9

1,85,9

Revenuesin mEUR

EBITDAMargin

Change

DesignDouble-digit revenue growth rate of +18.0%Inorganic effect of dRofus with 1.3 mEUR revenuesOrganic growth of +15.4%Positive development in all brands and regionsEBITDA margin increased to 28.3%

BuildVery strong revenue growth of +42.9%Inorganic effect of Design Data with 3.1 mEUR revenuesOrganic growth of +26.9% Bluebeam and Solibri are strongest growing brandsFurther investments to secure high growth rates in the future

ManageContinued revenue growth with +20.3%Slight improvement of the EBITDA margin

Media & EntertainmentPositive revenue development with +13.2%High profitability but further investments in future growth

Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017

26.1% 28.3% 25.6% 22.6% 13.7% 14.2% 45.1% 44.6%

+18.0% +42.9% +20.3% +13.2%

51,4

60,7

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Cash flow situation


in mEUR

EBITDA+25.5% yoy

Operating cash flowOnly slight increase because of earn-out component of Bluebeam (5 mEUR)

Adjusted operating cash flow (w/o earn-out) would have been at 26.9 mEUR (+26.3% yoy)

Investing cash flowCapex of 1.2 mEURAcquisition of dRofus (24.5 mEUR)

Cash flow from financing activitiesRepayment of bank loan (-6.5 mEUR)

Net liquidity situation despite dRofusacquisition

Leeway to grow organically and via acquisitions

Conversion rate** Strong conversion rate of 83% (previous year: 102%)

16,3

-4,8

-1,8

21,3

21,0

11,7

-6,9

-25,6

21,9

26,3EBITDA

Operating cash flow

Investing cash flow

Cash flow from financing activities

Net liquidity

Q1 2017Q1 2016

** Operating cash flow / EBITDA

*

* End of FY 2016

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NEMETSCHEK Shares

MAY 2017

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COMPANY PRESENTATION

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Founded: in 1963IPO: March 10, 1999Number of shares: 38,500,000Frankfurt Stock Exchange, Prime StandardBloomberg: NEM GY, Reuters: NEKG.DEShares Nemetschek family: 53.57%Freefloat: 46.43 percentCurrent MarketCap: ~ 2.3 billion EURCurrent TecDAX Ranking: 15/20

Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of NEMETSCHEK GROUP in the future

Prof. Georg Nemetschek

5,2%

Nemetschek Vermögensverwaltungs

GmbH & Co. KG48,4%

Free float46,4%

Stable Shareholder Structure

COMPANY PRESENTATIONMAY 2017

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Share Price Increased Stronger than TecDAX and DAX

COMPANY PRESENTATIONMAY 2017

Time Nemetschek TecDAX DaxYear 2013 +52% +38% +23%

Year 2014 +66% +18% +3%

Year 2015 +120% +34% +10%

Year 2016 +20% -1% +7%

YTD 2017 +14% +16% +10%

43

46

49

52

55

58

61

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01.2017 02.2017 03.2017 04.2017 05.2017Nemetschek TecDAX DAX

MAY 2017

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Outlook: FY 2017

COMPANY PRESENTATION 27

Optimistic outlook 2017 confirmed


in mEUR FY 2016 Forecast 2017* Organic

Revenues 337.3 395 – 401 (+17% - +19%) +13% - +15%

EBITDA 86.1** 100 – 103 (+16 - +20%)

*USD/EUR plan rate: 1.09** EBITDA w/o positive one-off effect of 1.9 mEUR

Market conditions Digitalization and IT spending will drive the use of software solutions in the AEC marketBIM market is expected to grow at a remarkable rate owing to supportive government regulations mandating the adoption of BIM software for construction projects

Strategic market positioning

Clear focus on AEC marketLeading player of Open BIM solutionsNetwork of industry leaders

Growth potential/ Investments

Focus on internationalization (North America, Asia, Europe)Investments in cross-brand strategic projects, new regional markets and customer segments, sales & marketing and innovationStrategically co-operations & acquisitionsHealthy balance sheet - capable of investing in organic and in inorganic growth

Guidance 2017 confirmend

Revenues: Focus on topline with double digit growth rates in the mid-teens EBITDA: Double digit growthHigh EBITDA margin of FY 2016 will be maintained despite strategic investment to secure sustained future growth and lower EBITDA margins of strongly expanding acquired brands

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Appendix

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P+L statement Q1 / FY comparison

mEUR Q1 2017 Q1 2016 % YoY

Revenues 96.3 77.7 +24.0%

Own work capitalized/other operating income 1.0 1.2 -15.4%

Operating income 97.3 78.8 +23.4%

Cost of materials/ purchased services -2.7 -2.4 +14.3%

Personnel expenses -43.4 -35.0 +24.0%

Other operating expenses -24.8 -20.5 +21.2%

Operating costs -70.9 -57.9 +22.6%

EBITDA 26.3 21.0 +25.5%

Margin 27.4% 27.0%

Depreciation of PPA and amortization -5.5 -4.4 +23.8%

t/o PPA -3.5 -2.7 +30.1%

EBITA (normalized EBIT) 24.4 19.3 +26.5%

EBIT 20.9 16.6 +26.0%

Financial result -0.2 -0.2

EBT 20.7 16.4 +26.4%

Income taxes -5.9 -4.8 +23.0%

Non-controlling interests -0.6 -0.5

Net income (group shares) 14.2 11.0 +28.6%

EPS in EUR 0.37 0.29 +28.6%


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Balance sheet - Assets

mEUR March 31, 2017 December 31, 2016

ASSETS

Cash and cash equivalents 101.4 112.5

Trade receivables, net 47.3 38.8

Inventories 0.5 0.6

Other current assets 18.6 16.0

Current assets, total 167.8 167.9

Property, plant and equipment 13.9 14.3

Intangible assets 94.6 89.7

Goodwill 192.2 177.2

Other non-current assets 6.1 5.7

Non-current assets, total 306.8 286.8

Total assets 474.6 454.7


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Balance sheet – Equity and liabilities

mEUR March 31, 2017 December 31, 2016

EQUITY AND LIABILITIES

Short-term borrowings and current portion of long-term loans 26.1 26.0

Trade payables & accrued liabilities 33.8 40.7

Deferred revenue 75.2 55.3

Other current assets 31.7 24.1

Current liabilities, total 166.8 146.1

Long-term borrowings without current portion 63.6 70.2

Deferred tax liabilities 22.1 20.6

Other non-current liabilities 7.8 15.7

Non-current liabilities, total 93.4 106.5

Subscribed capital and capital reserve 51.0 51.0

Retained earnings 158.1 144.0

Other comprehensive income 1.9 4.4

Non-controlling interests 3.2 2.8

Equity, total 214.3 202.1

Total equity and liabilities 474.6 454.7


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Cash flow statement

mEUR March 31, 2017 March 31, 2016 % YoY

Cash and cash equivalents at the beginning of the period 112.5 84.0 +34.0%

Cash flow from operating activities 21.9 21.3 +2.7%

Cash flow from investing activities -25.6 -1.8

t/o CapEX -1.2 -1.9 -38.9%

t/o Cash paid for business combinations -24.5 0.0

Cash flow from financing activities -6.9 -4.8 +42.3%

t/o Repayments of borrowings -6.5 -4.6

FX-effects -0.5 -1.5

Cash and cash equivalents at the end of the period 101.4 97.2 +4.3%

Free cash flow(1) -3.7 19.5

(1) Operating cash flow – Investing cash flow



Contact

NEMETSCHEK SEInvestor RelationsKonrad-Zuse-Platz 1D-81829 [email protected]

DisclaimerThis presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Suchstatements reflect current views of Nemetschek SE with respect to future events and results and are subject to risksand uncertainties. Actual results may vary materially from those projected here, due to factors including changes ingeneral 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. NemetschekSE does not intend or assume any obligation to update these forward-looking statements.

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NEMETSCHEK GROUP Company Presentation...NEMETSCHEK GROUP Company Presentation May 2017 Barco One Campus, Kortrijk, Belgium ... Electronics & high tech. Service providers. Logistics