nemetschek group company presentation · october 2016 company presentation. facts and figures >...

NEMETSCHEK GROUPCompany Presentation

October 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: Q2 / HY 2016…………………….....………………………………………………...14

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

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

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

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

OCTOBER 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 countries1,800 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 PRESENTATIONOCTOBER 2016

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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, Kepler Cheuvreux

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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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: Q2 / H1 2016

OCTOBER 2016 COMPANY PRESENTATION 14

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Nemetschek Group Highlights for Q2 |H1 2016 (1)

Revenue growth accelerated in Q2

Dynamic development continued with record levels in Q2 and first half Revenues Q2: increase by 22.2% to 83.8 mEUR (organic growth of 20.9%)Revenues H1: up by 19.5% to 161.5 mEUR (organic growth of 18.3%)

Strong revenue increase abroad

Revenues abroad increased by 22.0% to 109.7 mEURRevenues share outside of Germany at 68%, Americas at 25.0%Further focus on global expansion (Asia and Americas)

Double-digit growth in license and recurring revenues

Software licenses showed growth 21.9% to 85.8 mEURLicense revenue share of 53.1%Recurring revenues also in growth mode with 16.1% to 67.7 mEUR

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

member of the Executive Board

Profitabilityincreased significantly

Q2 EBITDA: up by 61.5% to 24.6 mEUR, EBITDA margin of 29.3%Q2 EBITDA w/o one-time effect: up by 49.0% to 22.7 mEUR, EBITDA margin of 27.1%H1 EBITDA: up by 39.9% to 45.6 mEUR, EBITDA margin of 28.2%H1 EBITDA w/o one-time effect: up by 34.1% to 43.7 mEUR, EBITDA margin of 27.0%No activation of development costs - no effects on expenses and earnings


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Significant growth of net income and EPS

Q2 Net income: strong growth of 85.1% to 13.1 mEUR. EPS at 0.34 EURQ2 Net income w/o one-time effect: up by 66.3% to 11.8 mEUR, EPS at 0.31 EUR H1 Net income: up by 56.1% to 24.2 mEUR, EPS at 0.63 EURH1 Net income w/o one-time effect: up by 47.5% to 22.9 mEUR, EPS at 0.59 EUR

Net income w/o PPA H1 net income w/o PPA: up by 47.1% to 28.0 mEUR, EPS at 0.73 EUR H1 net income w/o PPA and w/o one-time effect: up by 40.1% to 26.7 mEUR, EPS at 0.69 EUR

Solid balance sheet Dividend payment of 19.25 mEUR after the AGM 2016 on May 20th

Cash at 84.9 mEUR and net liquidity at 13.5 mEUREquity ratio of 44.0% - leeway for further investments / acquisitions

Optimistic outlook: Upper end of guidance

H1 is a very strong basis for FY 2016New record levels of revenues and EBITDA are expected in FY 2016Outlook now confirmed at upper end of revenue and EBITDA range (w/o acquisition):Revenue target range of 319-325 mEUR, up by +12%-14% (thereof organic: +11%-13%)EBITDA target range of 77-80 mEUR

Acquisition of Design Data

Acquisition of a leading US provider of BIM 3D modeling software for steel structuresPerfect fit to close the gap as a multi-material software supplier for concrete and steelIncrease revenue share and BIM image in the USSet the structure for Design Data to grow in Europe

Nemetschek Group Highlights for Q2 |H1 2016 (2)


66,6 68,677,7

83,8

Q1 2015 Q1 2016 Q2 2015 Q2 2016

Accelerated Revenue Growth in the Second Quarter

+16.7% +22.2% +19.5%

135,2

161,5

HY 2015 HY 2016

Change

in mEUR

Organic growth of high 20.9% yoy Organic growth of 18.3% Solibri contributed around 2 mEUR

135,2


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%

Americas25%

Germany33%


Licenses and Recurring Revenues Shows Double-Digit Growth

Software licenserevenues

53,1%

Recurringrevenues*

41,9%

Consulting &Hardware

5,0%

Software license revenuesUp by 21.9% to 85.8 mEURNew customers winsIncreasing customer baseConsequently recurring revenues will follow

Recurring revenues*Up by 16.1% to 67.7 mEURIncreasing visibility

Revenues split H1 2016 in %

* Software services, rental models (subscription, SaaS)


17,415,2

21,022,7

Q1 2015 Q1 2016 Q2 2015 Q2 2016

32,6

43,7

EBITDA Increased Stronger than Revenues

+21.0% +49.0% +34.1% Change

in mEUR

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

EBITDAMargin 26.1% 27.0% 22.2% 27.1% 24.1% 27.0%

24,6

29.3%

+61.5%

45,6

HY 2015 HY 2016

+39.9%

28.2%

*

*

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


Net Income and EPS Showed Significant Growth

15,5

22,924,2

+47.5%

Net incomein mEUR

Change

H1 2015 H1 2016

+56.1%

0,40

0,59 0,63

+47.5%

H1 2015 H1 2016

+56.1%

EPSin EUR

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

*

*


Net Income and EPS w/o PPA

19,1

26,728,0

+40.1% Change

H1 2015 H1 2016

+47.1%

EPS w/o PPAin EUR

0,50

0,69 0,73

+40.1%

H1 2015 H1 2016

+47.1%

Net income w/o PPAin mEUR

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

*

*


All Segments with Two-Digit Growth Rates

28,6

2,7

10,0

40,3

3,2

11,2

H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016

EBITDAMargin

Change

23.1% 27.4%

+13.7%

22.1% 22.6% 11.0% 17.5% 43.1% 42.9%

+41.1% +20.5% +11.8%

DesignTwo-digit revenue growth in Q2 with 16% EBITDA margin improved significantly

BuildGrowth of 41% in Q1 continued in Q2Inorganic effect of Solibri around 2 mEUROrganic growth of 35%

ManageStrong growth in Q2 with 28%EBITDA margin improved year on year

Media & EntertainmentGrowth of 27% in Q2 because of 30th anniversary edition Planned investments have impact on margins

Revenuesin mEUR

94,0

106,8

H1 2015 H1 2016

94,0


Cash Flow Situation

in mEUR

EBITDA+39.9% yoy

Operating cash flowAdjusted operating cash flow: 40.0 mEUR, that corresponds to an increase of 17.9% yoyOne-time effects of 3.5 mEUR in trade receivables and 1.9 mEUR in other assets

Investing cash flowCapex of 3.2 mEUR

Cash flow from financing activitiesRepayment of bank loan (-9.2 mEUR)Dividend payment (-19.25 mEUR)

Conversion rate*** 76% (previous year: 104%)Adjusted conversion rate (w/o one-time effects: 1.9 mEUR and 3.5 mEUR): 88%

3,3

-24,7

-4,0

34,0

32,6

13,5

-30,1

-3,0

34,6

45,6EBITDA

Operating cash flow

Investing cash flow

Cash flow from financing activities

Net liquidity

H1 2016H1 2015

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

(40.0)*

**

* Adjusted operating cash flow due to one-time effects of 3.5 mEUR resulting from later payments (July 2016) of customers compared to previous year and 1.9 mEUR from legal dispute)


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 +20% +1% +3%

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35

38

41

44

47

50

53

56

01.2016 02.2016 03.2016 04.2016 05.2016 06.2016 07.2016 08.2016 09.2016 10.2016

Nemetschek TecDAX DAX

Outlook: FY 2016


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Optimistic Outlook 2016: Increased Revenue and EBITDA Guidance

Current situation

Market conditions

Strong basis due to the strong H1 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 confirmed at upper end

Optimistic outlook for the second half of 2016Expect record levels in revenues and EBITDAUpper end of the guidance will be achieved

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 Q2 / H1 2016 Comparison

mEUR Q2 2016 Q2 2015 % YoY HY 2016 HY 2015 % YoY

Revenues 83.8 68.6 +22.2% 161.5 135.2 +19.5%

Own work capitalized/other operating income 3.5 0.7 +435.9% 4.6 2.9 +61.0%

Operating income 87.3 69.3 +26.0% 166.1 138.1 +20.4%

Cost of materials/ purchased services -2.6 -2.5 +7.7% -5.0 -4.5 +12.9%

Personnel expenses -36.2 -30.9 +17.1% -71.2 -60.9 +16.9%

Other operating expenses -23.9 -20.7 +15.5% -44.3 -40.1 +10.5%

Operating costs -62.7 -54.0 +16.1% -120.6 -105.5 +14.3%

EBITDA 24.6 15.2 +61.5% 45.6 32.6 +39.9%

Margin 29.3% 22.2% 28.2% 24.1%

EBITDA (w/o one-time effect) 22.7 15.2 +49.0% 43.7 32.6 +34.1%

Margin (w/o one-time effect) 27.1% 22.2% 27.0% 24.1%

Depreciation of PPA and amortization -4.4 -4.1 +7.1% -8.8 -8.3 +7.0%

t/o PPA -2.7 -2.5 +6.6% -5.4 -5.1 +6.3%

EBITA (normalized EBIT) 22.9 13.6 +67.7% 42.1 29.4 +43.4%

EBIT 20.2 11.1 +81.6% 36.8 24.3 +51.1%

Financial result -0.3 -0.1 -0.5 0.0

EBT 19.9 11.0 +80.7% 36.3 24.3 +49.9%

Income taxes -6.2 -3.6 +74.6% -11.0 -7.9 +38.5%

Non-controlling interests 0.6 0.4 +56.9% 1.1 0.8 +30.6%

Net income (group shares) 13.1 7.1 +85.1% 24.2 15.5 +56.1%

EPS in EUR 0.34 0.18 +85.1% 0.63 0.40 +56.1%

Net income (group shares w/o one-time effect) 11.8 7.1 +66.3% 22.9 15.5 +47.5%

EPS in EUR (w/o one-time effect) 0.31 0.18 +66.3% 0.59 0.40 +47.5%


Vorführender

Präsentationsnotizen

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Balance Sheet - Assets

mEUR June 30, 2016 December 31, 2015

ASSETS

Cash and cash equivalents 84.9 84.0

Trade receivables, net 37.3 29.6

Inventories 0.6 0.5

Other current assets 16.8 11.8

Current assets, total 139.6 125.9

Property, plant and equipment 13.9 13.8

Intangible assets 93.7 100.8

Goodwill 133.5 134.9

Other non-current assets 4.7 4.1

Non-current assets, total 245.8 253.6

Total assets 385.4 379.5


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Balance Sheet – Equity and Liabilities

mEUR June 30, 2016 December 31, 2015

EQUITY AND LIABILITIES

Short-term borrowings and current portion of long-term loans 18.5 18.6

Trade payables & accrued liabilities 29.2 32.2

Deferred revenue 53.5 42.0

Other current assets 17.5 11.4

Current liabilities, total 118.6 104.1

Long-term borrowings without current portion 53.0 62.1

Deferred tax liabilities 23.9 24.3

Other non-current liabilities 20.3 22.1

Non-current liabilities, total 97.2 108.5

Subscribed capital and capital reserve 51.0 51.0

Retained earnings 121.2 116.3

Other comprehensive income -4.6 -2.5

Non-controlling interests 1.9 2.1

Equity, total 169.5 166.9

Total equity and liabilities 385.4 379.5


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Cash Flow Statement

mEUR June 30, 2016 June 30, 2015 % YoY

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

Cash flow from operating activities 34.6 34.0 +2.0%

Cash flow from investing activities -3.0 -4.0 -25.5%

t/o CapEX -3.2 -2.6 +25.1%

t/o Payments for acquisition of non-controlling interests 0 -1.6

Cash flow from financing activities -30.1 -24.7 +21.7%

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

t/o Repayments of borrowings -9.2 -6.0

FX-effects -0.6 2.8

Cash and cash equivalents at the end of the period 84.9 65.0 +30.7%

Free cash flow(1) 31.6 29.9 +5.7%

(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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