NEMETSCHEK GROUP Company Presentation - November 2016
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Montforthaus, Feldkirch, Austria
HASCHER JEHLE Architektur, Germany | Images: David Matthiessen | realized with NEVARIS
NEMETSCHEK GROUP
Company Presentation
November 2016
Agenda 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 2
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 Nemetschek Founder and Member of the Supervisory Board of Nemetschek SE NOVEMBER 2016 COMPANY PRESENTATION 3
The Philosophy of
Nemetschek
Antoine Predock Architect | Image: Tim Hursley | realized with Vectorworks
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:
University of Minnesota, Minneapolis, USA
“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
NOVEMBER 2016 COMPANY PRESENTATION 4
History: 50 Years of Innovation and Success
1963 1984 2000 2013 TODAY
Georg Nemetschek, a The first CAD solution Acquisition: Vectorworks. Acquisition: Globally leading software
certified engineer, founds ALLPLAN 1.0 appears on Group headquarters move Data Design System company in Open BIM*
the “engineering firm for the market to new premises at the and 5D
the construction industry” Munich Fair
1980 1998 2006 2015
Nemetschek presents Numerous acquisitions: Graphisoft and Scia Sale: Glaser
the first computer-aided Frilo, Glaser, Bausoftware, become subsidiaries of
engineering software (CAE) Crem the Nemetschek Group
Antoine Predock Architect | Image: Tim Hursley | realized with Vectorworks
SPIRIT OF INVENTION INTERNATIONALIZATION INNOVATION DRIVER
1983 1999 2008 2016
Internationalization begins IPO of Nemetschek. Founding of Allplan GmbH Acquisitions: Solibri and
in Austria and Switzerland Acquisitions: Maxon, Auer (formerly Nemetschek Design Data.
Allplan Systems GmbH) Conversion of Nemetschek AG
University of Minnesota, Minneapolis, USA
into an SE.
1968 1997 2005 2014
The first use of computers Nemetschek presents the Founding of Precast Acquisition: Bluebeam
in the construction industry database-driven platform Software Engineering Software. Investment in the
O.P.E.N. – known today as (formerly Nemetschek start-up Sablono GmbH
BIM* Engineering)
* Building Information Modeling
NOVEMBER 2016 COMPANY PRESENTATION 5
Nemetschek at a Glance
Four segments Facts and figures
> 50 years of innovation, founded in 1963
and headquartered in Munich, Germany
Open BIM pioneer and 5D provider with
software solutions for the AEC* and
media industry
13 strong brands
285.3 mEUR sales revenues (2015)
2.1 million users in 142 countries
1,900 employees worldwide
> 50 locations in more than 40 countries
IPO 1999, listed in the TecDax
2.1 billion EUR market capitalization
* Architecture, Engineering, Construction
NOVEMBER 2016 COMPANY PRESENTATION 6
Decentralized Strong Brands under One Umbrella
Architecture Engineering Construction
Media &
DESIGN BUILD MANAGE Entertainment
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
NOVEMBER 2016 COMPANY PRESENTATION 7
8
Trends & Strategy
NOVEMBER 2016 COMPANY PRESENTATION 8
AEC Industry in Transition
Drawings Models Workflows
Since 1985 Today Tomorrow
COMPANY PRESENTATION 9
NOVEMBER 2016
Mega Trend Digitalization – Entering The Industries
most some few very few
1.0 2.0 3.0 4.0
Telecommunications 1,82
Media & entertainment 1,97
Information technology 1,97
Automobile manufacturers 2,05 Average: 2,8
Electronics & high tech 2,35
Service providers 2,47
Logistics & transportations 2,51
Mechanical & plant engineering 2,70
Trade 2,90
Pharmaceutical & medical-device industry 3,01
Consumer goods 3,03
Utility sector 3,10
Automotive supplier 3,12
Chemical industry 3,21
Metals 3,30
Construction 3,33
Oil & Gas 3,82
Source: TOP 500 survey 2014 / Accenture
NOVEMBER 2016 COMPANY PRESENTATION 10IT Spending as a % of Revenue by Industry (2015)
0% 1% 2% 3% 4% 5% 6% 7% 8%
Average: 3,4
Software Publishing and Internet Services 6,9
Banking and Financial Services 6,5
Education 5,5
Media and Entertainment 4,6
Professional Services 4,5
Healthcare Providers 4,1
Telecommunication 3,9
Pharmaceuticals, Life Sciences and Medical 3,1
Transportation 3,0
Insurance 2,9
Utilities
Global IT Investment in
2,9
construction increasing
Industrial Electronics and Electrical Equipment 2,2
in billion USD
Consumer Products 2,1
19%
Industrial Manufacturing 1,8 525
CAGR
Retail and Wholesale 1,5
Chemicals 1,4
Food and Beverage Processing 1,3 90
Construction 1,2
Energy 1,1 2015 2025
Source: IT Key Metrics ‚Data 2015 Source: McKinsey
NOVEMBER 2016 COMPANY PRESENTATION 11BIM Market Size and Growth
BIM Market by Region 2015 BIM Market Size 2015/2020
Total
7,948 mUSD CAGR
ROW 838 +11.4%
CAGR: +13%
5 years
APAC
+13.6%
1653
Total
4,313 mUSD Europe
+13.4%
ROW 488 2772
APAC
872
Europe
1222
North
America +12.7%
North America Europe APAC ROW North 2685
$ 1,478 mUSD $ 1,222 mUSD $ 872 mUSD America
$ 488 mUSD
1478
+12.7% +13.4% +13.6% +11.4%
2015 2020
Source: BIM Market,
$ Market Size 2015 Global Trends and Forecasts (2015-2020)
CAGR 2015 - 2020 Markets and Markets
NOVEMBER 2016 COMPANY PRESENTATION 12Status of Current BIM Regulations and Use
Source: HSBC, Kepler Cheuvreux
Countries currently recommending
or mandating BIM
Countries recommending BIM
as of 2017
Countries with BIM guidelines/
positive BIM development
National UK BIM Report survey on future use of BIM
In five year's time we will use BIM 95%
We currently use BIM 50%
NOVEMBER 2016 COMPANY PRESENTATION 13NOVEMBER 2016
Financials: Q3 / 9M 2016
COMPANY PRESENTATION
14
Authority for Urban Development and the Environment, Hamburg, Germany
Facade: NBK Keramik GmbH | Image: Andreas Lechtape | realized with AllplanNemetschek Group Highlights for Q3 | 9M 2016 (1)
After a extremely strong Q2, revenue growth continued in Q3
Continued revenue
growth 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%)
Revenues abroad increased by 20.7% to 166.0 mEUR (Americas, Asia, Nordics)
Strong revenue
increase abroad Revenues share outside of Germany at 68%, Americas at 26%
Germany showed also strong growth with 16.1% to 79.4 mEUR
Software licenses up by 20.9% to 129.0 mEUR
Double-digit growth
in license and Recurring revenues also in growth mode with 16.1% to 104.3 mEUR
recurring revenues Share of recurring revenues at 42.5%
Positive one-time
effect 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
Q3 EBITDA: up by 24.9% to 21.0 mEUR, EBITDA margin of 25.1%
Profitability
9M EBITDA: up by 34.8% to 66.6 mEUR, EBITDA margin of 27.1%
increased
9M EBITDA w/o one-time effect: up by 30.9% to 64.7 mEUR, EBITDA margin of 26.4%
significantly
No activation of development costs - no effects on expenses and earnings
NOVEMBER 2016 COMPANY PRESENTATION 15Nemetschek Group Highlights for Q3 | 9M 2016 (2)
Q3 Net income: strong growth of 38.9% to 12.1 mEUR, EPS at 0.31 EUR
Significant growth
of net income 9M Net income: up by 49.9% to 36.3 mEUR, EPS at 0.94 EUR
and EPS 9M Net income w/o one-time effect: up by 44.4% to 34.9 mEUR, EPS at 0.91 EUR
9M Net income w/o PPA: up by 43.0% to 42.3 mEUR, EPS at 1.10 EUR
Net income w/o PPA 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
Cash flow from operating activities: up by 32.1% to 64.5 mEUR
High cash
Conversion rate at high 96.9%
generation and solid
Cash at 103.0 mEUR and net liquidity at 0.2 mEUR
balance sheet
Equity ratio of 41.4% - leeway for further investments / acquisitions
New record levels of revenues and EBITDA are expected
Guidance increased at the beginning of October:
Increased guidance
Revenue target range: 338 - 341 mEUR, increase of +18% - 20% YoY
for FY 2016
(former revenue target: 319 - 325 mEUR, +12% - 14%)
confirmed
EBITDA target range (w/o positive one-time effect): 89 - 91 mEUR (+28% - 31%)
(former EBITDA target: 77 - 80 mEUR)
NOVEMBER 2016 COMPANY PRESENTATION 16Dynamic Growth Continued
Revenues in mEUR
245,4
205,9
204,0
83,8 83,9
77,7
66,6 68,6 70,7
Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016
9M 2015 9M 2016
Change +16.7% +22.2% +18.5% +19.2%
Q3: Organic growth of 14.9% yoy 9M: Organic growth of 17.1%
Solibri and Design Data
contributed around 4.6 mEUR
NOVEMBER 2016 COMPANY PRESENTATION 17International Growth In Focus, More than 50 Locations
WESTERN AND NORTHERN AND
SOUTHERN EUROPE EASTERN EUROPE
Austria Czech Republic
Belgium Finland
France Hungary
Great Britain Norway
Germany Slovakia
Italy Sweden
Netherlands Germany Europe w/o Russia
Spain 32% Germany
Switzerland 32%
Asia/Pacific
AMERICAS ASIA
9%
Brazil Americas RoW China
Canada 26% 1% Japan
Mexico Singapore
USA
NOVEMBER 2016 COMPANY PRESENTATION 18Both Licenses and Recurring Revenues Shows Double-Digit Growth
Revenues split 9M 2016 in %
Consulting &
Hardware
4,9%
Software license revenues
Up by 20.9% to 129.0 mEUR
Software license
revenues
New customers wins
52,6%
Increasing customer base
Consequently recurring revenues will
Recurring follow
revenues*
42,5% Recurring revenues*
Up by 16.1% to 104.3 mEUR
Share of 42.5% leads to higher
visibility
* Software services, rental models (subscription, SaaS)
NOVEMBER 2016 COMPANY PRESENTATION 19EBITDA Increased Stronger than Revenues
EBITDA in mEUR
* EBITDA w/o 1.9 mEUR positive one-time effect
66,6
64,7 *
49,4
24,6
22,7 *
21,0 21,0
17,4 16,8
15,2
Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016 9M 2015 9M 2016
Change +21.0% +49.0% +61.5% +24.9% +30.9% +34.8%
EBITDA
26.1% 27.0% 22.2% 27.1% 29.3% 23.8% 25.1% 24.0% 26.4% 27.1%
Margin
EBITDA is shown with and w/o the positive one-time effect of 1.9 mEUR occurred in Q2
EBITDA margin improved significantly
NOVEMBER 2016 COMPANY PRESENTATION 20Net Income and EPS Showed Significant Growth
* Net income and EPS w/o 1.9 mEUR positive one-time effect
Net income EPS
in mEUR in EUR
36,3
34,9 *
24,2
0,91* 0,94
0,63
9M 2015 9M 2016 9M 2015 9M 2016
Change +44.4% +49.9% +44.4% +49.9%
NOVEMBER 2016 COMPANY PRESENTATION 21Net Income and EPS w/o PPA
* Net income and EPS w/o 1.9 mEUR positive one-time effect
Net income w/o PPA EPS w/o PPA
in mEUR in EUR
42,3
40,9 *
29,6
1,06* 1,10
0,77
9M 2015 9M 2016 9M 2015 9M 2016
Change +38.5% +43.0% +38.5% +43.0%
NOVEMBER 2016 COMPANY PRESENTATION 22AEC Segments with Double-Digit Growth Rates
Design Build Manage Media & Entertainment
Growth path continued Revenue growth of 42.6% High revenue growth rate with Solid revenue growth of 8.3%
EBITDA margin improved Inorganic effect of Solibri and 19.4% Planned investments have
significantly by 4pp Design Data (~4.6 mEUR) EBITDA margin improved year impact on margins
Organic growth of 33% on year
Stable profitability
162,3
143,4
62,0
43,5
143,4
Revenues
in mEUR
14,9 16,1
4,2 5,0
9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016
Change +13.2% +42.6% +19.4% +8.3%
EBITDA
24.2% 28.2% 18.5% 18.6% 15.4% 19.3% 40.6% 39.7%
Margin
NOVEMBER 2016 COMPANY PRESENTATION 23Cash Flow Situation
in mEUR
EBITDA
66,6
EBITDA +34.8% yoy
49,4
Operating cash flow
64,5 Increase of 32.1% yoy
Operating cash flow
48,8
Investing cash flow
-45,8 Capex of 5.7 mEUR
Investing cash flow
Acquisition of Design Data of 40.4 mEUR
-8,0
Cash flow from financing activities
1,2
Cash flow from financing activities Repayment of bank loan (-15.7 mEUR)
-28,5
Dividend payment (-19.3 mEUR)
Bank loan for Design Data (+38.0 mEUR)
0,2
Net liquidity
3,3 * Conversion rate**
96.9% (previous year: 98.9%)
9M 2016
9M 2015
* End of FY 2015
** Operating cash flow / EBITDA
NOVEMBER 2016 COMPANY PRESENTATION 24NOVEMBER 2016
NEMETSCHEK Shares
COMPANY PRESENTATION
25
Visualization of the planned Santiago Bemabéu Stadium, Madrid, Spain
Architects: gmp, Hamburg, GermanyStable Shareholder Structure
Prof. Georg
Nemetschek
5,2%
Founded: in 1963
IPO: March 10, 1999
Free float Number of shares: 38,500,000
46,4%
Frankfurt Stock Exchange, Prime Standard
Bloomberg: NEM GY, Reuters: NEKG.DE
Shares Nemetschek family: 53.57%
Freefloat: 46.43 percent
Current MarketCap: ~ 2.1 billion EUR
Nemetschek
Vermögensverwaltungs
Current TecDAX Ranking: 13/20
GmbH & Co. KG
48,4%
Shares of Nemetschek family pooled: secures stable shareholder
structure for well-being of NEMETSCHEK GROUP in the future
NOVEMBER 2016 COMPANY PRESENTATION 26Share Price Increased Stronger than TecDAX and DAX
59
56
53
50
47
44
41
38
35
32
01.2016 02.2016 03.2016 04.2016 05.2016 06.2016 07.2016 08.2016 09.2016 10.2016 11.2016
Nemetschek TecDAX 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%
NOVEMBER 2016 COMPANY PRESENTATION 27Ralph Rieger, visualservices, Hamburg Outlook: FY 2016 NOVEMBER 2016 COMPANY PRESENTATION 28
Outlook 2016: Increased Revenue and EBITDA Guidance Confirmed
Current situation Strong basis due to the strong 9-month figures
Market conditions Digitalization and IT spending will drive the use of software solutions in the AEC market
BIM 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 Clear focus on AEC market
positioning Leading player of Open BIM solutions
Strong and independent global brands
Growth potential/ Focus on internationalization (North America, Asia, Europe)
Investments Investments in new markets, customer segments, sales & marketing
Strategically co-operations & acquisitions
Healthy balance sheet - capable of investing in organic and in inorganic growth
Guidance 2016 Increase of guidance at the beginning of October 2016
increased Expect record levels in revenues and EBITDA
Increased Forecast Former Forecast
in mEUR FY 2015
FY 2016 (Oct 2016) FY 2016 (Mar 2016)
338 - 341 319 - 325
Revenues 285.3
(+18% - 20%) (+12% - 14%)
EBITDA 69.5 89 - 91 77 - 80
NOVEMBER 2016 COMPANY PRESENTATION 29NOVEMBER 2016
Appendix
COMPANY PRESENTATION
30
Barco‘s „One Campus“, Kortrijk, Belgium
Establis | realized with SCIAP+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% NOVEMBER 2016 COMPANY PRESENTATION 31
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 NOVEMBER 2016 COMPANY PRESENTATION 32
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 NOVEMBER 2016 COMPANY PRESENTATION 33
Cash Flow Statement
mEUR September 30, 2016 September 30, 2015 % YoY
Cash and cash equivalents at the beginning
84.0 57.0 +47.4%
of the period
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
NOVEMBER 2016 COMPANY PRESENTATION 34HASCHER JEHLE Architektur, Berlin, Germany | Image: David Matthiessen | realized with NEVARIS
Contact
Montforthaus, Feldkirch, Austria
NEMETSCHEK SE Disclaimer
Investor Relations
Konrad-Zuse-Platz 1 This presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Such
D-81829 Munich statements reflect current views of Nemetschek SE with respect to future events and results and are subject to risks
Germany 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,
investorrelations@nemetschek.com lack of market acceptance of new products, services or technologies and changes in business strategy. Nemetschek
www.nemetschek.com SE does not intend or assume any obligation to update these forward-looking statements.
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