Nemetschek : Conference Call Q3 2023 Presentation

Earnings Call Q3- /9M-23

Nemetschek Group

October 26, 2023

Key Messages

02 Nemetschek Group | Earnings Call Q3-/9M-23

1. Q3-23: Strong growth driven by one-time effects in Design and Build with correlating higher profitability. Subscription/SaaS transitions of Bluebeam and Design brands progressing as planned.
2. 9M-23: Successful first nine months of the year with substantial progress made on our journey to a subscription and SaaS centric business model in all segments.
3. Updated FY-23 guidance:

1. Revenue growth (constant currency): 6.0% - 8.0% o EBITDA margin: Upper end of 28%-30% range
   o Mid-term ambitions for FY-24 & FY-25 fully re-iterated

4. Resilient Business Model: High growth in economic challenging times underpins Nemetschek's resilient business model thanks to its high share of recurring revenues, its innovative solutions, and its well diversified geographical exposure.

01

Financial Results Q3-23

03 Nemetschek Group | Earnings Call Q3-/9M-23

Q3-23: Strong Profitable Growth in a Challenging Environment

ARR		Revenues		EBITDA		EPS
EURm		EURm		EURm		EUR

	+20.6%
	+25.4% cc1
550.6	664.0
Q3-22	Q3-23

+8.4%

+12.6% cc1

202.8	219.8
Q3-22	Q3-23

+13.6%

+20.2% cc1

62.9	71.4
Q3-22	Q3-23

+16.1%

0.340.39

Q3-22Q3-23

• Strong increase in ARR underpins our good future growth trajectory for the next 12 months
• Subscription/SaaS revenues continue to the main growth driver: +42.3% (+48.6% cc1)

• Stable demand in AEC compared to recent quarters
• Growth supported by one-off effects in the Design and Build
• Growth supported by prior price adjustments

•	Q3-23: EBITDA margin: 32.5%		•	Tax rate: 18.6% (Q3-22: 21.8%)
•	Strong margin expansion driven		•	EPS before PPA amortization:
	by operating leverage, cost			0.44 EUR
	discipline, and stronger than
	expected license sales

1 Constant currency

04 Nemetschek Group | Earnings Call Q3-/9M-23

Nemetschek's Executive Team for the Next Phase of Growth

NEMETSCHEK GROUP

Yves Padrines	Louise Öfverström
Group CEO	Group CFO

César Flores Rodríguez	Usman Shuja	Marc Nezet	Dave McGavran
Chief Division Officer Planning & Design I	Chief Division Officer Build &	Chief Strategy Officer I Chief	CEO Maxon
Digital Twin	Construct I CEO Bluebeam	Division Officer Operate &
		Manage
PLANNING +	BUILD +	OPERATE +	MEDIA +
DESIGN	CONSTRUCT	MANAGE	ENTERTAINMENT

N E M E T S C H E K E N G I N E E R I N G

DIGITAL TWIN Business Unit

05 Nemetschek Group | Earnings Call Q3-/9M-23

Continued Progress on Strategic Topics

Business Model

• Subscription/SaaS Transition continues to progress in line with plans

• Record share of recurring and

subscription/SaaS revenues

Go-to-market

• Strengthening of internationalization and cross-selling activities

• Increased focus on large customer segment: Successful hiring & onboarding of key-

account-management leadership structure

• Maxon Collaborates with Adobe to Unveil	Business Enablement
Limited-Time Bundle
	• Good progress in harmonization of processes
	and structures and continued build-up to enable
	future growth journey
	• Enhanced operational excellence

06 Nemetschek Group | Earnings Call Q3-/9M-23

Innovation & Technological Leadership

• dTwin market launch: open, data-driven Digital Twin cloud platform
• Innovative new Releases of major brands (Graphisoft, Allplan, Vectorworks, Maxon)
• Ongoing development of new cloud features across brands
• Various Artificial Intelligence initiatives

Start-up Investments

• Value generation by combining the competences of our start-up investments & brands:

1. Technical integration (e.g. Imerso & Solibri, Reconstruct & Bluebeam/Allplan)

1. Co-/cross-selling(Reconstruct & Allplan)

Key Financial Highlights 9M-23: Strong First Nine Months of the Year

Revenues:	EBITDA:	Cash Conversion:
+5.5% (FX adj.: +7.1%) to	-6.4% (FX adj.: -2.2%) to	99.1%
EUR 632.0m	EUR 188.5m

ARR:		EBITDA margin:		Net Cash Position:
+20.6% (FX adj.: +25.4%) to		29.8%		EUR 223.1m
EUR 664.0m

Subscription/SaaS Revenues:	Earnings per Share:	Equity Ratio:
+42.6% (FX adj.: +45.2%) to	EUR 0.99 (-10.8%)	59.5%

EUR 209.3m

07 Nemetschek Group | Earnings Call Q3-/9M-23

Segments 9M-23: Well on Track, Strong Subscription Growth in all Segments

DESIGN	BUILD*	MEDIA	MANAGE*

	Revenues EURm	+9.0%
	+9.9% cc1
	286.1	311.9
Margin	9M-22	9M-23
30.3%	27.5%

	-0.5%
	+1.7% cc1
202.5	201.5
9M-22	9M-23
40.6%	35.9%

+8.5%

+10.4% cc1

75.8	82.2
9M-22	9M-23
39.0%	37.1%

+5.6%

+7.4% cc1

39.9	42.1
9M-22	9M-23

7.0%		-0.1%

• Continued hesitation in European		• Continued good customer demand in
Design markets		US
• Main growth driver:		• Good progress in Subscription/SaaS
Subscription/SaaS (+36% y/y)		transition of Bluebeam
• Q3-23 supported by catch-up effects		• Q3-23 helped by last time buy of
and strong one-off end of quarter		perpetual licenses for existing
perpetual license sales		customers

• Market impacted by Hollywood strikes
• Subscription revenue growth >20%
• Continuation of growth dynamic in Q3-23 (+13.6% cc1)
• Increase in profitability in Q3-23: 40.2% (vs. 37.5% in Q3-22)

• Open and data-drivencloud-baseed platform dTwin launched
• Continued investments into future growth weighting on profitability

08 Nemetschek Group | Earnings Call Q3-/9M-23	1 Constant currency	* As a result of the strategic reorganization of brands between the Build and Mange segments, prior year figures
		were restated for comparability reasons.

Revenues by Type: Subscription/SaaS driving Recurring Revenue Share to 75%

Revenue Share

by type in %

75%

(65%)

21% 9M-23

(31%)

4%

(4%)

Revenue Share
of Subscription/SaaS				ARR2 y/y
100%
						Recurring
						revenues y/y
50%
		19%	25%	33%		Subscription/
	14%				SaaS y/y
0%
9M-209M-219M-22	9M-23

Q3-23			Comments
		•	+20.6%		•	Indicates strong future
		•	+25.4% cc1		growth with EUR 664m
		•	+20.6%		•	Continued strong
		•	+25.4% cc1		growth to EUR 166m
		•	+42.3%		•	Strong over-
				proportional growth to
		•	+48.6% cc1		EUR 77m
		• Driven mainly by Build

& Design segments

Licenses y/y

• -22.2%

• -19.1%cc1

• Reduction to only EUR 44m in line with plans
• Decline driven by Build, Media and Design

Recurring revenues (Software services (42%); Subscription/SaaS (33%))

Licenses

Consulting & Hardware

1 Constant currency	2 Annual Recurring Revenue (ARR): Average of all recurring revenues (Sub./SaaS and maintenance contracts) over the last
09 Nemetschek Group | Earnings Call Q3-/9M-23	three months x 4.

At a Glance: Income Statement and Important KPIs

Key Figures mEUR	9M-23	In % of revenue	9M-22	Growth y/y
Revenues	632.0	100%	598.9	+5.5%
Cost of goods and services	-25.0	3.9%	-22.4	+11.4%
Personnel expenses	-271.2	42.9%	-248.5	+9.1%
Other operating income/expenses	-147.3	23.3%	-126.6	+16.4%
EBITDA	188.5	29.8%	201.3	-6.4%
EBITDA margin	29.8%	-	33.6%	-380bps
D&A (incl. PPA)	-44.6	7.1%	-43.7	+2.0%
EBIT	143.9	22.8%	157.6	-8.7%
EBIT margin	22.8%	-	26.3%	-350bps
Net income (group shares)	114.1	18.1%	127.9	-10.8%
EPS	0.99	-	1.11	-10.8%
FCF (before M&A)	178.3	-	151.1	+17.9%
Equity ratio in %	59.5%	-	57.4%	-
Net Cash	223.1	-	120.5	-

10 Nemetschek Group | Earnings Call Q3-/9M-23