Nemetschek : Conference Call Q1 2024 Presentation

Earnings Call Q1-24

Nemetschek Group

April 30, 2024

01

Highlights Q1-24

02 Nemetschek Group | Earnings Call Q1-24

Key Messages

03 Nemetschek Group | Earnings Call Q1-24

1. Successful start to the year 2024 driven by a strong growth in recurring revenues.
2. Demand environment in AEC/O markets in Europe and North America unchanged.
3. Highly successful subscription/SaaS transition in the Design and Build segments continues to develop as planned.
4. Well on track to reach outlook FY-24. Strong foundation to achieve above-market growth and shareholder returns in the medium- to long-term by leveraging our leading positions in structurally growing industries.

Strategic Update Q1-24:

Driving Internationalization

India - A Huge Opportunity:

• Population: 1.3bn
• Indian economy: 5th largest in the world
• Indian construction market: 3rd largest in the world

Nemetschek in India:

• Opening of a new local Go-to-Market office in Mumbai
• Products and product packages will be jointly sold under the Nemetschek Group brand
• Already established location in Hyderabad acting as a shared services, development and research excellence center

04 Nemetschek Group | Earnings Call Q1-24

Strategic Update Q1-24: New Partnerships to Advance AEC/O & M&E Industries

Nemetschek & Autodesk

• Interoperability agreement between Nemetschek Group & Autodesk
• Improve open collaboration and efficiencies in AEC/O and M&E industries
• Enhance existing interoperability between Nemetschek Group and Autodesk solutions
• Both companies will provide mutual access to their APIs and industry clouds

Nemetschek & Hexagon:

• Partnership of Nemetschek with Hexagon's Geosystems Division focused on digital twins
• Increasing the efficiency in building operations
• Nemetschek to provide its new horizontal, open, and cloud-based dTwin platform
• Hexagon to provide its end-to-end reality capture solutions

05 Nemetschek Group | Earnings Call Q1-24

Key Financial Highlights Q1-24: Successful Start to the Year 2024

Revenues:EBITDA:

+9.4% (FX adj.: +10.3%) to	+11.9% (FX adj.: +8.5%) to
EUR 223.9m	EUR 68.3m

ARR Growth:		EBITDA Margin:
+24.5% (FX adj.: +25.4%) to		30.5%
EUR 743.6m

Subscription/SaaS Revenues:		Earnings per Share:
+66.5% (FX adj.: +68.0%) to		EUR 0.37 (+17.4%)
EUR 106.3m

Cash Conversion: 123.8%

Net Cash Position:

EUR 339.5m

Equity Ratio: 60.2%

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03

Overview Financial Results

Q1-24

07 Nemetschek Group | Earnings Call Q1-24

Segments Q1-24: All Segments According to Plan

	BUILD*	MEDIA	MANAGE*
DESIGN

Revenues EURm		+8.7%
	+9.3% cc1
	115.6
	106.3
Margin	Q1-23	Q1-24
28.3%	30.7%

	+9.0%
	+10.0% cc1
62.0	67.5
Q1-23	Q1-24
35.2%	31.1%

+9.7%

+10.9% cc1

26.8	29.4
Q1-23	Q1-24

35.2%

37.4%

+9.9%

+9.9% cc1

11.412.5

Q1-23Q1-24

-2.7%		6.6%

• Subscription/SaaS transition according to plan
• Subscription/SaaS continues to be main growth driver (> 60% y/y)
• Unchanged market environment in European Design markets

• Very successful transition to Subscription/SaaS of Bluebeam continues as planned
• Continued resilient customer demand
• Strong acceleration Bluebeam growth expected in Q4-24

• Re-accelerationof growth with 10.9% cc1 in Q1-24 vs. 3.8% cc1 in Q4-23
• Market still partly impacted by aftermaths of Hollywood strikes

• Continued investments into future growth weighting on profitability
• Good demand for AI-powered energy management solutions
• Long-termgrowth potential due to green buildings, energy efficiency regulation

08 Nemetschek Group | Earnings Call Q1-24	1 Constant currency	* As a result of the strategic reclassification of the Digital Twin Business Unit from the Manage to the Design
		segment prior year figures were restated for comparability reasons.

Recurring Revenues: Successful Transition Leads to New Record High of 83%

Revenue Share	Recurring & Subscription/SaaS 2020-2024
by type in %

			200					186
							(+25%)
							149
			150				(+22%)
	83%				121
						106
	(73%)	EURm			96	(+22%)
			86			(+68%)
Q1-24		100	(+16%)
	(+22%)			64
13%						45	(+39%)
(23%)			50	20	28	(+54%)
4%
			(+50%)
(4%)				(+75%)
			0	Q1-20	Q1-21	Q1-22	Q1-23	Q1-24

Overview Q1-24:

ARR2 y/y		•	+24.5%
	•	+25.4% cc1
Recurring		•	+24.5%
revenues y/y		•	+25.4% cc1

Subscription/		•	+66.5%
SaaS y/y		•	+68.0% cc1

Subscription/SaaS Revenue (Growth cc)

Recurring Revenue (Growth cc)

•

-37.5%

Licenses y/y

•

-36.9% cc1

Recurring revenues (Software services (36%); Subscription/SaaS (47%))

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 Q1-24

three months x 4.

At a Glance: Income Statement and Important KPIs

Key Figures mEUR		Q1-24		In % of revenue		Q1-23		Growth y/y
Revenues		223.9		100%		204.6		+9.4%
Cost of goods and services		-9.1		4.1%		-7.8		+16.9%
Personnel expenses		-94.2		42.1%		-88.8		+6.1%
Other operating income/expenses		-52.3		23.4%		-47.1		+11.2%
EBITDA		68.3		30.5%		61.0		+11.9%
EBITDA margin		30.5%		-		29.8%		+70bps
D&A (incl. PPA)		-13.6		6.1%		-14.4		-5.6%
EBIT		54.7		24.4%		46.6		+17.3%
EBIT margin		24.4%		-		22.8%		+160bps
Net income (group shares)		42.5		19.0%		36.3		+17.4%
EPS		0.37		-		0.31		+17.4%
FCF (before M&A)		82.1		-		72.5		+13.3%
Equity ratio in %		60.2%		-		58.0%		+220bps
Net Cash		339.5		-		189.1		+79.5%

10 Nemetschek Group | Earnings Call Q1-24