nemetschek group company presentation...285.3 meur sales revenues (2015) 2.1 million users in 142...

NEMETSCHEK GROUPCompany Presentation

November 2016

Montforthaus, Feldkirch, AustriaHASCHER JEHLE Architektur, Germany | Images: David Matthiessen | realized with NEVARIS

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

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

Financials: Q3 / 9M 2016…………………….....………………………………………………...14

NEMETSCHEK Share………..………...……………..……………………………………….....25

Outlook: FY 2016.……………………………………. ………………………………………...28

Appendix…………………………………………………………………….………………...…... 30

Contact...………………………..………………………………………………………………….35

NOVEMBER 2016 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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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

2015Sale: Glaser

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 an 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 13 strong brands285.3 mEUR sales revenues (2015)2.1 million users in 142 countries1,900 employees worldwide> 50 locations in more than 40 countriesIPO 1999, listed in the TecDax2.1 billion EUR market capitalization

* Architecture, Engineering, Construction

Four segments

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Media &Entertainment

Decentralized 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


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WorkflowsDrawings

Since 1985

Models

Today Tomorrow

AEC Industry in Transition

COMPANY PRESENTATIONNOVEMBER 2016

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%

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

Markets and Markets

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: Q3 / 9M 2016

NOVEMBER 2016 COMPANY PRESENTATION 14

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Nemetschek Group Highlights for Q3 |9M 2016 (1)

Continued revenue growth in Q3

After a extremely strong Q2, revenue growth continued in Q3 New record level in first nine months Revenues Q3: increase by 18.5% to 83.9 mEUR (organic growth of 14.9%)Revenues 9M: up by 19.2% to 245.4 mEUR (organic growth of 17.1%)

Strong revenue increase abroad

Revenues abroad increased by 20.7% to 166.0 mEUR (Americas, Asia, Nordics)Revenues share outside of Germany at 68%, Americas at 26%Germany showed also strong growth with 16.1% to 79.4 mEUR

Double-digit growth in license and recurring revenues

Software licenses up by 20.9% to 129.0 mEURRecurring revenues also in growth mode with 16.1% to 104.3 mEURShare of recurring revenues at 42.5%

Positive one-timeeffect One-time gain of +1.9 mEUR in Q2 in other operating income from a legal dispute with a

former member of the Executive Board

Profitabilityincreased significantly

Q3 EBITDA: up by 24.9% to 21.0 mEUR, EBITDA margin of 25.1%9M EBITDA: up by 34.8% to 66.6 mEUR, EBITDA margin of 27.1%9M EBITDA w/o one-time effect: up by 30.9% to 64.7 mEUR, EBITDA margin of 26.4%No activation of development costs - no effects on expenses and earnings


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Significant growth of net income and EPS

Q3 Net income: strong growth of 38.9% to 12.1 mEUR, EPS at 0.31 EUR9M Net income: up by 49.9% to 36.3 mEUR, EPS at 0.94 EUR9M Net income w/o one-time effect: up by 44.4% to 34.9 mEUR, EPS at 0.91 EUR

Net income w/o PPA 9M Net income w/o PPA: up by 43.0% to 42.3 mEUR, EPS at 1.10 EUR 9M Net income w/o PPA and w/o one-time effect: up by 38.5% to 40.9 mEUR, EPS at 1.06 EUR

High cash generation and solid balance sheet

Cash flow from operating activities: up by 32.1% to 64.5 mEURConversion rate at high 96.9%Cash at 103.0 mEUR and net liquidity at 0.2 mEUREquity ratio of 41.4% - leeway for further investments / acquisitions

Increased guidance for FY 2016 confirmed

New record levels of revenues and EBITDA are expected Guidance increased at the beginning of October:Revenue target range: 338 - 341 mEUR, increase of +18% - 20% YoY(former revenue target: 319 - 325 mEUR, +12% - 14%)EBITDA target range (w/o positive one-time effect): 89 - 91 mEUR (+28% - 31%)(former EBITDA target: 77 - 80 mEUR)

Nemetschek Group Highlights for Q3 |9M 2016 (2)


66,6 68,6 70,777,7 83,8 83,9

Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016

Dynamic Growth Continued

+16.7% +22.2% +19.2%

204,0

245,4

9M 2015 9M 2016

Change

Revenues in mEUR

Q3: Organic growth of 14.9% yoy 9M: Organic growth of 17.1% Solibri and Design Data

contributed around 4.6 mEUR

205,9

+18.5%

17NOVEMBER 2016 COMPANY PRESENTATION

International Growth In Focus, More than 50 Locations

AMERICASBrazilCanadaMexicoUSA

WESTERN ANDSOUTHERN EUROPEAustriaBelgiumFranceGreat BritainGermanyItalyNetherlandsSpainSwitzerland

ASIAChinaJapan

Singapore

NORTHERN AND EASTERN EUROPE

Czech RepublicFinland

HungaryNorway

SlovakiaSwedenRussiaEurope w/o

Germany32%

Asia/Pacific9%

RoW1%

Americas26%

Germany32%


Both Licenses and Recurring Revenues Shows Double-Digit Growth

Software licenserevenues

52,6%

Recurringrevenues*

42,5%

Consulting &Hardware

4,9%

Software license revenuesUp by 20.9% to 129.0 mEURNew customers winsIncreasing customer baseConsequently recurring revenues will follow

Recurring revenues*Up by 16.1% to 104.3 mEURShare of 42.5% leads to higher visibility

Revenues split 9M 2016 in %

* Software services, rental models (subscription, SaaS)


16,821,0

17,415,2

21,022,7

Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016

49,4

64,7

EBITDA Increased Stronger than Revenues

+21.0% +49.0% +30.9% Change

EBITDA in mEUR* EBITDA w/o 1.9 mEUR positive one-time effect

EBITDA is shown with and w/o the positive one-time effect of 1.9 mEUR occurred in Q2 EBITDA margin improved significantly

EBITDAMargin 26.1% 27.0% 22.2% 27.1% 24.0% 26.4%

24,6

29.3%

+61.5%

66,6

9M 2015 9M 2016

+34.8%

27.1%

*

*

+24.9%

23.8% 25.1%


Net Income and EPS Showed Significant Growth

24,2

34,9 36,3

+44.4%

Net incomein mEUR

Change

9M 2015 9M 2016

+49.9%

0,63

0,91 0,94

+44.4%

9M 2015 9M 2016

+49.9%

EPSin EUR

* Net income and EPS w/o 1.9 mEUR positive one-time effect

*

*


Net Income and EPS w/o PPA

29,6

40,9 42,3

+38.5% Change

9M 2015 9M 2016

+43.0%

EPS w/o PPAin EUR

0,77

1,06 1,10

+38.5%

9M 2015 9M 2016

+43.0%

Net income w/o PPAin mEUR

* Net income and EPS w/o 1.9 mEUR positive one-time effect

*

*


AEC Segments with Double-Digit Growth Rates

43,5

4,2

14,9

62,0

5,0

16,1

9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016

EBITDAMargin

Change

24.2% 28.2%

+13.2%

18.5% 18.6% 15.4% 19.3% 40.6% 39.7%

+42.6% +19.4% +8.3%

DesignGrowth path continuedEBITDA margin improved significantly by 4pp

BuildRevenue growth of 42.6%Inorganic effect of Solibri and Design Data (~4.6 mEUR)Organic growth of 33%Stable profitability

ManageHigh revenue growth rate with 19.4%EBITDA margin improved year on year

Media & EntertainmentSolid revenue growth of 8.3% Planned investments have impact on margins

Revenuesin mEUR

143,4

162,3

9M 2015 9M 2016

143,4


Cash Flow Situation

in mEUR

EBITDA+34.8% yoy

Operating cash flowIncrease of 32.1% yoy

Investing cash flowCapex of 5.7 mEURAcquisition of Design Data of 40.4 mEUR

Cash flow from financing activitiesRepayment of bank loan (-15.7 mEUR)Dividend payment (-19.3 mEUR)Bank loan for Design Data (+38.0 mEUR)

Conversion rate**96.9% (previous year: 98.9%)

3,3

-28,5

-8,0

48,8

49,4

0,2

1,2

-45,8

64,5

66,6EBITDA

Operating cash flow

Investing cash flow

Cash flow from financing activities

Net liquidity

9M 20169M 2015

* End of FY 2015** Operating cash flow / EBITDA

*


NEMETSCHEK Shares


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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: ~ 2.1 billion EURCurrent TecDAX Ranking: 13/20

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


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Share Price Increased Stronger than TecDAX and DAX


Time Nemetschek TecDAX Dax

Year 2013 +52% +38% +23%

Year 2014 +66% +18% +3%

Year 2015 +120% +34% +10%

YTD 2016 +17% -4% +4%

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41

44

47

50

53

56

59

01.2016 02.2016 03.2016 04.2016 05.2016 06.2016 07.2016 08.2016 09.2016 10.2016 11.2016Nemetschek TecDAX DAX

Outlook: FY 2016


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Outlook 2016: Increased Revenue and EBITDA Guidance Confirmed

Current situation

Market conditions

Strong basis due to the strong 9-month figures

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 solutionsStrong and independent global brands

Growth potential/ Investments

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

Guidance 2016 increased

Increase of guidance at the beginning of October 2016Expect record levels in revenues and EBITDA

in mEUR FY 2015 Increased ForecastFY 2016 (Oct 2016)

Former ForecastFY 2016 (Mar 2016)

Revenues 285.3 338 - 341(+18% - 20%)

319 - 325 (+12% - 14%)

EBITDA 69.5 89 - 91 77 - 80


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P+L Statement Q3 Comparison

mEUR Q3 2016 Q3 2015 % YoY 9M 2016 9M 2015 % YoY

Revenues 83.9 70.7 +18.5% 245.4 205.9 +19.2%

Own work capitalized/other operating income 1,0 0,7 +34.0% 5.6 3.6 +55.6%

Operating income 84.8 71.5 +18.7% 251.0 209.5 +19.8%

Cost of materials/ purchased services -2.9 -2.5 +17.6% -8.0 -6.9 +14.6%

Personnel expenses -38.5 -32.3 +19.2% -109.7 -93.2 +17.7%

Other operating expenses -22.4 -19.9 +12.7% -66.7 -60.0 +11.3%

Operating costs -63.8 -54.6 +16.8% -184.4 -160.1 +15.2%

EBITDA 21.0 16.8 +24.9% 66.6 49.4 +34.8%

Margin 25.1% 23.8% 27.1% 24.0%

EBITDA (w/o one-time effect) 21.0 16.8 +24,9% 64.7 49.4 +30.9%

Margin (w/o one-time effect) 25.1% 23.8% 26.4% 24.0%

Depreciation of PPA and amortization -4.7 -4.2 +11.8% -13.6 -12.5 +8.6%

t/o PPA -2.9 -2.5 +13.2% -8.3 -7.6 +8.6%

EBITA (normalized EBIT) 19.2 15.1 +26.6% 61.3 44.5 +37.7%

EBIT 16.3 12.6 +29.3% 53.0 36.9 +43.6%

Financial result -0.2 -0.2 -0.7 -0.2

EBT 16.1 12.5 +29.3% 52.4 36.7 +42.9%

Income taxes -3.7 -3.4 +7.1% -14.7 -11.4 +29.0%

Non-controlling interests 0.3 0.3 +5.1% 1.4 1.2 +23.3%

Net income (group shares) 12.1 8.7 +38.9% 36.3 24.2 +49.9%

EPS in EUR 0.31 0.23 +38.9% 0.94 0.63 +49.9%

Net income (group shares w/o one-time effect) 12.1 8.7 +38.9% 34.9 24.2 +44.4%

EPS in EUR (w/o one-time effect) 0.31 0.23 +38.9% 0.91 0.63 +44.4%


Vorführender

Präsentationsnotizen

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Balance Sheet - Assets

mEUR September 30, 2016 December 31, 2015

ASSETS

Cash and cash equivalents 103.0 84.0

Trade receivables, net 36.9 29.6

Inventories 0.6 0.5

Other current assets 14.2 11.8

Current assets, total 154.8 125.9

Property, plant and equipment 13.9 13.8

Intangible assets 104.0 100.8

Goodwill 163.2 134.9

Other non-current assets 4.5 4.1

Non-current assets, total 285.6 253.6

Total assets 440.4 379.5


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Balance Sheet – Equity and Liabilities

mEUR September 30, 2016 December 31, 2015

EQUITY AND LIABILITIES

Short-term borrowings and current portion of long-term loans 26.1 18.6

Trade payables & accrued liabilities 35.1 32.2

Deferred revenue 57.6 42.0

Other current assets 17.9 11.4

Current liabilities, total 136.7 104.1

Long-term borrowings without current portion 76.7 62.1

Deferred tax liabilities 23.7 24.3

Other non-current liabilities 20.7 22.1

Non-current liabilities, total 121.1 108.5

Subscribed capital and capital reserve 51.0 51.0

Retained earnings 133.1 116.3

Other comprehensive income -3.8 -2.5

Non-controlling interests 2.2 2.1

Equity, total 182.5 166.9

Total equity and liabilities 440.4 379.5


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Cash Flow Statement

mEUR September 30, 2016 September 30, 2015 % YoY

Cash and cash equivalents at the beginning of the period 84.0 57.0 +47.4%

Cash flow from operating activities 64.5 48.8 +32.1%

Cash flow from investing activities -45.8 -8.0 +472.2%

t/o CapEX -5.7 -5.7 -0.4%

t/o Cash paid for business combinations -40.4 -2.4

Cash flow from financing activities 1.2 -28.5 -104.3%

t/o Dividend payments -19.3 -15.4 +25.0%

t/o Repayments of borrowings -15.7 -9.0

t/o Cash received from bank loans 38.0 0.0

FX-effects -0.9 2.2

Cash and cash equivalents at the end of the period 103.0 71.5 +44.1%

Free cash flow(1) 18.7 40.8 -54.1%

(1) Operating cash flow – Investing cash flow


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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...285.3 meur sales revenues (2015) 2.1 million users in 142...

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