INDUSTRIALIZING SALES EXECUTION – BEST PRACTICE

Mike Slater

COO – EMEA North

February 10, 2016

© 2015 Software AG. All rights reserved

CAPITAL MARKET DAY 2016

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This presentation includes forward-looking statements based on the beliefs of Software AG management.

Such statements reflect current views of Software AG with respect to future events

and results and are subject to risks 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, lack of market acceptance

of new products, services or technologies and changes in business strategy. Software AG does not intend

or assume any obligation to update these forward-looking statements.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way

securities of Software AG or any of the companies that are members of the Group at present or in the

future, nor does it form part of such an offer and it should not be understood as such. This presentation

does not constitute an offer of sale of securities in the United States of America. Securities may not be

offered or sold in the United States of America without registration or exemption from registration in

accordance with the U.S. Securities‘ Act of 1933 in its currently valid form.

© 2015 Software AG. All rights reserved.

SAFE-HARBOR-STATEMENT

Independent Federation Layer Nov 2015

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WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING

Alliance Boots Deal 2013 (ANZAG)

Deal 2015

INDEPENDENT

FEDERATION

LAYER

WBA BOUGHT “IT INDEPENDENCE”

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WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING

PROCESS

MESSAGING BPM MDM

IN-MEMORY DATA FABRIC

BUSINESS EVENT PROCESSING

IT PLANNING &

PORTFOLIO

MANAGEMENT

SOA

GOVERNANCE

CENTRASITE

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• WebMethods

– ESB – The backbone of communications for the Federation Layer to integrate all appropriate IT systems/services, as

well as, future acquisitions into WBA – (also includes process execution)

– One Data – Master Data Management to enable the Federation Layer to become one source of truth for information in

WBA over time; the long term memory of the layer

– SOA Governance (Centrasite) – Ensuring the Federation Layer is used in the most effective way and can be controlled,

governed and audited – acting as the “police force” for integration

• ARIS – Enables the design, simulation and deployment of all business processes to drive all relevant

functions at optimal cost

• Terracotta – Gives the Federation Layer a real-time memory across different technology functions to store,

access and action information critical for intra-day operations.

• Apama – The Federation Layer’s brain for processing business and IT events across all relevant systems

to make smart decisions and drive automated processes

• Alfabet – IT Portfolio management and planning to prioritise and govern the new IT estate

© 2015 Software AG. All rights reserved.

WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING

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HIGH LEVEL REFERENCE ARCHITECTURE

Previously agreed values.. (at risk without the Independent Federation Layer) WBA and SAG collaboration has produced a set of ratified technical and business areas of benefit

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Where the benefits stem from

Improving Productivity, Accelerating Application Development

• Lower Levels of Effort per Implementation/Project

• Reuse is a Component of Increased Productivity

Reducing Application Maintenance Costs

• Lower Levels of Effort per Planned or Unplanned Maintenance Requirements

• Reuse is a Significant Contributor to Lower Maintenance Levels of Effort

Improving Infrastructure Stability

• Unified Development Strategy Facilitates Agile Development with Standardized Staff Training & Skill Requirements + Lower Hardware Costs

• More Reliable, Flexible & Scalable with Less Down Time & Faster Issue Resolution

Providing Real-Time, End-to-End Supply Chain Visibility

• Mitigates Risk of Current Revenue Loss + Future Revenue Potential

• Saves on Inventory Costs

• Reduces Lead Time Requirements & Improves Supplier Management

Optimizing Application Portfolio, Lowering OpEx, Improving CapEx Effectiveness

• Eliminate Legacy Applications, Consolidate & Rationalize Redundancies

• Align Global Responsibility for End-to-End Activities with Direct Link to Measurable Business Performance

20% Productivity Improvement

20% More Reuse, Lower Maintenance Effort

2.5% Lower OPEX

1% Inventory Cost Reduction

Business Case Model – where the benefits come from at WBA (Applying the AH benefits rates achieved to the WBA usage numbers)

Supply Chain Integration

Benefits >100m

2. Additional possible benefits – shared and

agreed with appropriate WBA staff

Application Portfolio Optimisation Benefits

>50m

WACC used for cost of goods held = 10% (normally higher in other industries so conservative estimates)

Gartner rates show higher values – we have used fractions of the Gartner numbers here and ignored year 1 benefits

Key Assumptions

Independent Federation

Layer

B

>10m

>10m

>10m

1. Data Orchestration, Mediation & Governance

Benefits

Data Orchestration, Mediation & Governance project velocity at LOW expectation rates (WBA ratified)

Productivity improvement = 20% Low project velocity

Reuse = 20% Low project velocity

Maintenance improvement = 20% Low project velocity

Key Assumptions (AH achieved rates)

Middleware

Consolidation Benefits ~10m

Estimates calculated with WBA architects – assume no year 1 benefits and non-complete replacement within 5 years 26 Iterations

of Business Case

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WIN DATA

© 2016 Software AG. All rights reserved.

FY 2015 – ALL OPPORTUNITIES, > €500K, WORLDWIDE

Note: This data based on SAMS and includes deals > €500k, worldwide.

Deals won WITHOUT BVEinfluence

Deals won WITH BVEinfluence

33%

76% 87% 105%

Larger

Deal Size

15% 42%

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€ 0

€ 200.000

€ 400.000

€ 600.000

€ 800.000

€ 1.000.000

€ 1.200.000

United Kingdom Germany South Africa Nordics

Multi-product wins

Single product wins

MULTI-PRODUCT DEALS V’S SINGLE PRODUCT DEALS

© 2015 Software AG. All rights reserved.

AVERAGE DEAL SIZE OVER LAST 3 YEARS..

Multi-Product Deals are 5 x the Size WE HARDLY

EVER LOSE A MULTI-

PRODUCT DEAL..

WIN RATIO

CLOSE TO 1:1 INSTEAD

OF 1:3

J

J

J

J

J

J

J

J

J

J

J

j

j

Group Average

all Deals

Average

Deal Size

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GO FROM RED OCEAN TO BLUE OCEAN STRATEGY

SINGLE PRODUCT SELLING

FEATURE-FUNCTION

COMMODITY PRICING

MANY (NICHE) PLAYERS

BLIND RFP RESPONSE

POOR WIN RATIO

SMALL DEAL SIZE

SOFTWARE AG SWEET-SPOTS

BUSINESS CASE APPROACH

CLOSE TO 100% WIN RATIO!

ON AVERAGE 5 X THE DEAL SIZE!

MULTI-PRODUCT SELLING

NO ONE CAN TOUCH US

CUSTOMER & INDUSTRY EXPERTISE

INDUSTRIALIZING

© 2015 Software AG. All rights reserved.

SALES EXECUTION

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Q&A

© 2015 Software AG. All rights reserved.

16 | © 2015 Software AG. All rights reserved.

Investor Relations

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Germany

phone: +49 (0) 6151 / 92 1900

fax: +49 (0) 6151 / 9234 1900

softwareag.com

e-mail: investor.relations@softwareag.com

@SoftwareAG_IR