Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — Q3 2020 Earnings Presentation

68 slides from Bentley Systems's earnings presentation, November 2020

1. Slide 1: Introducing Bentley Systems

   CONFIDENTIAL Introducing Bentley “BSY”: Systems The Infrastructure Engineering Software Company Greg Bentley, CEO, and David Hollister, CFO Fall 2020

2. Slide 2: BSY: The Infrastructure Engineering Software Company

   BSY: The Infrastructure Engineering Software Company Founder-Led Comprehensive Global Dependable for 36 Years Portfolio Maturity Growth (through Q2 2020 to Date) $768M 87% 53% of Revenues ~30% Revenues Recurring Revenues1 from accounts > Adjusted EBITDA $250K/yr2 Margin (20H1 LTM) 1 See Appendix, Fo

3. Slide 3: Revenues by Infrastructure Sector and Discipline

   Revenues by Infrastructure Sector and Discipline Oxford Economics Outlook Global Infrastructure Spending Water 2016 through 2040 and Rail and Commercial / Waste • Roads 1.0% of GDP Transit Facililties • Electricity 1.0% of GDP • Rail 0.4% of GDP Municipal / • Water 0.2% of GDP Mapping Geotechnical I

4. Slide 4: Revenues by Infrastructure Sector and Discipline

   Revenues by Infrastructure Sector and Discipline Water and Commercial / Rail and Waste Facililties Transit Municipal / Mapping Geotechnical Industrial / Resources T&D Utilities Public Works / Utilities Roads and Bridges We believe we are the market leader in these sectors and disciplines of infrastr

5. Slide 5: Total Addressable Market ("TAM")

   Total Addressable Market (“TAM”) Infrastructure Engineering Product Engineering 22,515,000 11,120,000 Infrastructure Engineers & Product Engineers & Engineering Technicians Engineering Technicians $8.3B $13.9B Product Engineering Infrastructure Engineering Software Spend/Year Software Spend/Year $1,

6. Slide 6: Total Addressable Market ("TAM")

   Total Addressable Market (“TAM”) Infrastructure Engineering Product Engineering Total Addressable Market for Infrastructure Engineering Software 22,515,000 $1,250 Spend per Seat on $29.2B Infrastructure Engineers & Engineering Technicians Engineering Software (2018) “TAM” $8.3B $13.9B Infrastructure

7. Slide 7: Revenues by Infrastructure Lifecycle

   Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  AssetWise Asset Reliability  AssetWise Linear Analytics  SUPERLOAD  MicroStation  OpenPlant  ProjectWise  OpenBuildings  ProjectWise 365  OpenRoads  SYNCHRO  OpenRail  OpenSite  STAAD  OpenFlows  RAM  Ope

8. Slide 8: Revenues by Infrastructure Lifecycle

   Revenues by Infrastructure Lifecycle • Subscription per user or asset • On-prem “seat” • Azure managed services and/or hybrid • Cloud-connected hybrid environment • Increasingly native SaaS “Bentley Systems is one of the top 25 companies in terms of Azure usage globally in 2019.” 8 | © 2020 Bentley

9. Slide 9: Revenues by Infrastructure Lifecycle

   Revenues by Infrastructure Lifecycle 9 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

10. Slide 10: Comprehensiveness

    Comprehensiveness Water and Asset Waste Commercial / Rail and Transit Facililties Performance Municipal / Mapping Project Industrial / Delivery Geotech Modeling Infrastructure T&D Resources Infrastructure Disciplines Utilities Lifecycle Simulation BSY Roads and Bridges Wate r and Commercial / Rail…

11. Slide 11: Comprehensiveness Across Geographies

    Comprehensiveness Across Geographies AMERICAS EMEA APAC $356 $237 $144 1568 1183 1259 Countries where BSY’s solutions are in BSY Office $ 2019 Revenue ($M) Colleagues use 170+ Countries of Usage 90+ Offices Majority of Revenue ~4,000 Colleagues Outside Americas Note: $ Amounts are revenues in millio

12. Slide 12: Revenues by Commercial Model

    Revenues by Commercial Model Perpetual License Sales Professional Services (episodic) Professional Services (recurring) Term Licenses Enterprise Subscriptions SELECT ELS Subscriptions E365 • for perpetual licenses • entitles license pooling • entitles “portfolio balancing” Note: Chart segment sizing

13. Slide 13: ARR by Consumption Model

    ARR by Consumption Model Daily (E365) Monthly and Quarterly Terms Annual Term As of June 30, 2020 13 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

14. Slide 14: Growth Strategies

    Growth Strategies Digital Integrators Programmatic Acquisitions Digital Co-Ventures Focus on Asia Multiply Inside Sales Accretion Within Existing Accounts 14 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

15. Slide 15: Introducing BSY: The Infrastructure Engineering Software Company

    CONFIDENTIAL Introducing “BSY”: The Infrastructure Engineering Software Company Greg Bentley, CEO, and David Hollister, CFO Fall 2020

16. Slide 16: 3rd Quarter 2020 Operating Results

    3rd Quarter 2020 Operating Results David Hollister, CFO 16 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

17. Slide 17: Revenue Performance

    Revenue Performance Third Quarter Third Quarter YTD $ in millions $ in millions $582.0 9.0% $533.7 45.0 -10.4% 50.1 36.0 - 5.8% 38.3 501.0 12.5% $203.0 8.8% 445.3 $186.6 17.0 -3.5% 17.6 12.8 -7.0% 13.8 155.2 173.2 +11.6% 2019 2020 2019 2020 Subscriptions Licenses Services Subscriptions Licenses Serv

18. Slide 18: Recurring Revenue Performance

    Recurring Revenue Performance Recurring Revenues1 Recurring Revenue Retention $ in millions 108% 110% 105% 107% $682.7 11.0% 7.0 9.0 10.0 12.0 $615.2 98% 98% 98% 98% LTM Q319 LTM Q320 2017 2018 2019 LTM Q320 Account Retention Net Recurring Revenue Footnotes: 1, 2, 3 – See appendix for KPI and non-GA

19. Slide 19: Profitability Performance

    Profitability Performance GAAP Operating Income Adjusted EBITDA4 $ in millions $ in millions $99.2 $95.9 $189.1 +43% $132.2 $41.4 $73.6 $52.8 +39% $5.3 Q319 Q320 YTD Q319 YTD Q320 Q319 Q320 YTD Q319 YTD Q320 Footnotes: 4 – See appendix for KPI and non-GAAP definitions and reconciliations 19 | © 2020

20. Slide 20: Debt Summary

    Debt Summary September 30, 2020 ($ in millions) Maturity Interest Rate Cash 137.6 Revolver ($500.0) 465.0 2022 LIBOR + 175 bps Term Loan 124.6 2022 LIBOR + 175 bps Total long-term debt5 589.6 Net debt 452.0 LTM Adjusted EBITDA4 245.0 Total debt / LTM Adjusted EBITDA4 2.4x Net debt / LTM Adjusted EBI

21. Slide 21: Full Year 2020 Financial Outlook

    Full Year 2020 Financial Outlook Financial Metrics Guidance Total Revenues $790 million to $800 million increase of 7.2% to 8.6% ARR Growth (constant currency) 7.5% to 9.0 % Adjusted EBITDA $250 million to $265 million increase of 33% to 41% Additional expectations to support financial modeling • Fu

22. Slide 22: KPI and non-GAAP definitions and reconciliations

    KPI and non-GAAP definitions and reconciliations 1. Recurring revenues. Last twelve-months recurring revenues is calculated as recurring revenues recognized over the preceding twelve-month period. We define recurring revenues as subscriptions revenues that recur monthly, quarterly, or annually with

23. Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA

    Non-GAAP Reconciliation: Adjusted EBITDA Year Ended Three Months Ended Nine Months Ended December 31, September 30, September 30, As of Q3 2020 2019 2020 2019 2020 2019 LTM Net income $ 103,096 $ 5,844 $ 20,427 $ 74,589 $ 66,845 $ 110,840 Interest expense, net 8,199 1,934 2,029 4,450 6,503 6,146 Pro

24. Slide 24: 3rd Quarter 2020 Operating Results

    3rd Quarter 2020 Operating Results Greg Bentley, CEO 24 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

25. Slide 25: IPO on September 23, Opening Bell September 24

    IPO on September 23 Opening Bell September 24 25 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

26. Slide 26: Corporate News

    Corporate News Greg Bentley, CEO 26 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

27. Slide 27: www.bentley.com

    www.bentley.com 27 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

28. Slide 28: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    28 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

29. Slide 29: The Year in Infrastructure 2020 Conference: Executive Perspective

    The Year in Infrastructure 2020 Conference, Oct. 20, 2020: Executive Perspective 29 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

30. Slide 30: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    30 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

31. Slide 31: Year in Infrastructure 2020

    ACCELERATE Keynotes Year in Infrastructure 2020 SESSION User and digital twins project mentions Project Delivery Accelerate Videos - Andy Kaiya, VP, Bid development, Lane Construction and Dr.Sonia Zahiroddiny, Head of Digital Engg, HS2 Digital Cities Videos of: Águas do Porto – Going Digital Video P

32. Slide 32: 4D Construction Modeling

    Going Digital Advancements Credited by YII Awards Nominees: 4D Construction Modeling 20% 15% 10% 5% 0% 2019 2020 32 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

33. Slide 33: Reality Modeling

    Going Digital Advancements Credited by YII Awards Nominees: Reality Modeling 35% 30% 25% 20% 15% 10% 5% 0% 2018 2019 2020 33 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

34. Slide 34: Connected Data Environment

    Going Digital Advancements Credited by YII Awards Nominees: Connected Data Environment 25% 20% 15% 10% 5% 0% 2018 2019 2020 34 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

35. Slide 35: iModels

    Going Digital Advancements Credited by YII Awards Nominees: iModels 30% 25% 20% 15% 10% 5% 0% 2018 2019 2020 35 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

36. Slide 36: Asset Performance Modeling

    Going Digital Advancements Credited by YII Awards Nominees: Asset Performance Modeling + 14% - 12% - - 10% 8% 6% 4% 2% 0% 2018 2019 2020 36 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

37. Slide 37: Digital Twins

    Going Digital Advancements Credited by YII Awards Nominees: Digital Twins 35% 30% 25% 20% 15% 10% 5% 0% 2018 2019 2020 37 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

38. Slide 38: www.bentley.com/en/top-infrastructure-owners

    www.bentley.com/en/top-infrastructure-owners 38 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

39. Slide 39: Utilities and Industrial Asset Performance

    2020 Year in Infrastructure Award Winner for Going Digital Advancements: Utilities and Industrial Asset Performance Evolution of Engineering Data, Documents and Information Management Brisbane | Queensland | Australia Shell’s QGC Business …Shell is at the forefront of using digital technologies to i

40. Slide 40: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    40 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

41. Slide 41: Tone of Business

    Tone of Business Greg Bentley, CEO 41 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

42. Slide 42: Percentage Change in Usage YOY

    2020 to Date… February March April May June 0 Percentage Change in Usage YOY -1 -2 -3 -4 -5 -6 42 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

43. Slide 43: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 43 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

44. Slide 44: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources EPCs Public Works/Utilities (Engineering/Procurement/Construction) 44 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

45. Slide 45: ARR by Consumption Model

    ARR by Consumption Model EPCs (Engineering/Procurement/Construction) Daily (E365) Daily (E365) Monthly and Quarterly Terms Annual Term As of June 30, 2020 45 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

46. Slide 46: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 46 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

47. Slide 47: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 47 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

48. Slide 48: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 48 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

49. Slide 49: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 49 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

50. Slide 50: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 50 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

51. Slide 51: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 51 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

52. Slide 52: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle 52 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

53. Slide 53: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle 53 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

54. Slide 54: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle 54 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

55. Slide 55: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle 55 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

56. Slide 56: New Business Growth…

    New Business Growth… Chart Title $800 New Business $700 $600 $500 $400 $300 $200 New Account $100 Incremental Product Incumbent Product $0 Recurring Revenue 2016 2017 2018 2019 Note: Excludes the impact of changes in foreign currency exchange rates. The company’s 2019 budget exchange rates have been

57. Slide 57: Looking Forward

    Looking Forward Greg Bentley, CEO 57 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

58. Slide 58: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    58 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

59. Slide 59: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    59 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

60. Slide 60: Katriona Lord-Levins

    Katriona Lord-Levins Chief Success Officer, Bentley Systems 60 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

61. Slide 61: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    61 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

62. Slide 62: Growth Strategies

    Growth Strategies Digital Co-Ventures Focus on Asia Multiply Inside Sales Accretion Within Existing Accounts 62 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

63. Slide 63: Growth Strategies

    Growth Strategies Digital Integrators Programmatic Acquisitions Digital Co-Ventures Focus on Asia Multiply Inside Sales Accretion Within Existing Accounts 63 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

64. Slide 64: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    64 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

65. Slide 65: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    65 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

66. Slide 66: © 2020 Bentley Systems, Incorporated C O N F I D E N T

    66 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

67. Slide 67: Q&A

    Q&A 67 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

68. Slide 68: Thank You

    Thank You 68 | © 2020 Bentley Systems, Incorporated C O N F I D E N T I A L

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