Deutsche Bank German, Swiss & Austrian Conference/media/Files/S/... · 5/14/2013 · High...

©2013 Software AG. All rights reserved.

Deutsche Bank

German, Swiss & Austrian

Conference

Arnd Zinnhardt

CFO

May 14, 2013


2 |

This presentation contains forward-looking statements based on 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.

Safe-Harbor-Statement


3 |

Software AG - At a Glance

High performance database

Process Planning,

monitoring and analysis

Middleware to integrate data applications and

digital workflows

Big-data and In-memory technology

> € 1bn revenue

Operating EBITDA margin 28.6% (FY 2012)

> € 2.3 B market cap,

Net Cash positive

> 5,000 Employees worldwide

~ 66% Free float,

29% Software AG Foundation

Global customer base:

80% of Fortune 10,000

Technology leader in systems integration,

process automation and data management


4 |

Large Enterprise Customers in 70 Countries Worldwide

Finance Public Sector Telecom Chemicals/Pharma Energy/Utilities

Manufacturing Logistics/Transport

Healthcare/

Consumer Goods


5 |

1,098

Software AG‘s Track Record

411

721

1.046

0

200

400

600

800

1.000

2004 2008 2012

Revenue in €m

87

116

171

0

30

60

90

120

150

180

2004 2008 2012

Net profit in €m

2,438

3,526

5,419

0

1.000

2.000

3.000

4.000

5.000

2004 2008 2012

Employees

108

181

248

0

50

100

150

200

250

2004 2008 2012

EBIT in €m


6 |

Financial Sector

Public Sector

IT

Associ-ations

Services

Manu-facturing

Telcos

Logistics Retail

Other

PIIGS

< 4%

BRICS 13%

48%

31%

13%

8%

Product Revenue by Industry

*Based on product revenue FY 2012

Product Revenue by Region*

Product Revenue by Industry*

Revenue Split – Well Balanced

EMEA

(ex Germany)

Asia Pacific Americas

Germany 20%

20%


7 |

• Application Development

• Database Management System

• Application Modernization

Transaction PLATFORMS

• Business Process Analysis

• Enterprise Architecture

• Governance, Risk and Compliance Management

Business Process PLATFORMS

• In-Memory Data Management

• In-Memory Intelligent Action

Big Data PLATFORMS

• Integration

• Business Process Management

Integration PLATFORMS


8 |

Business Process Excellence (BPE)



Big Data PLATFORMS


Software AG Product Suite – Powering The Digital Enterprise

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012

in €m

BPE - Business characteristics BPE - Product revenue development

Technology leader (Gartner, Forrester)

Worldwide biggest independent specialized

vendor of Business Process Excellence (BPE)

Market growth perspective (CAGR 10% + p.a.)

License revenue growth: +20% to +30% in 2013

Growth driver: market, portfolio, deal size, sales

staff


9 |

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012

in €m

ETS - Business characteristics ETS - Product revenue development

Enterprise Transaction Systems (ETS):

ADABAS (fastest transactional database)

NATURAL (rapid application development)

Mature market (cash-cow)

Revenue decline, stable margins and strong

recurring cash flow

Cost management focus

Annual maintenance renewal rate: ~ 95%

(average)



Big Data PLATFORMS


Software AG Product Suite – Powering The Digital Enterprise

Enterprise Transaction

Systems (ETS)


10 |

Increasing Product Revenue from the High-Growth BPE Division

39% 43% 47% 52% 55%

61% 57% 53% 48% 45%

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012

ETS

BPE

209 244

319 338 385

0

100

200

300

400

2008 2009 2010 2011 2012

BPEBPE Product Revenue in €m

Relative share

of product

revenue


11 |

BPE - Future Growth is Driven by New Products

(BPE licenses in €m)

35.7

45.6 50.0

63.5

41.9

0

10

20

30

40

50

60

70

80

90

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2e 2013 Q3e 2013 Q4e 2013

+19% y-o-y*

*at constant currency rates


12 |

Cost Ratios & Profitability - 2011/2012

(in €m)

Total

Revenue

Gross

Profit R&D

Sales & Marketing

Profitability

FY 2012

FY 2011

668.6

-100.8 -246.9

EBIT (IFRS) Margin 23.7%

1,098.3

1,047.3

EBIT (IFRS)

Margin 24.5% 656.2

-88.0

-75.1

10%* 24%*

8%* 21%*

*as % of total revenue

64%*

269.2

248.3

60%*

-230.2

+6.4

-75.8 +2.7

Admin Other

7%*

7%*

(in €m)


Strategy


14 |

Growth Strategy

Growth

based on three pillars

Organic Growth…

…leverage technology

leadership in enterprise

infrastructure software

• Fast integration

middleware

• High speed process

automation

• High performance

data management

Innovation…

…addressing

Mega Trends

for enterprise IT

• Cloud

• Big Data

• Mobile

• Collaboration

Selective M&A…

…in three strategic

areas:

• Integration / SOA &

Cloud

• Business Processes

• Big Data


15 |

(Product revenue in €m)

BPE – Engine of Future Growth

284

309 331 328

355

313 310

69

146

209

244

319 338

385

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012 2013e

Business Process Excellence

Enterprise Transaction Systems +16%

to

+22%

-9%

to

-4%

2013e

Outlook

2013*

* At constance currency


16 |

Acquisitions Support Technology Leadership

2007

2008

2009

2010

2011 2012

Strategic Acquisitions

Technology – Add Ons

2013


17 |

Innovation Strategy

Main Technology Drivers – 4 Forces

NoSQL

Hadoop

Social Computing

Internet of Things


Outlook


19 |

Group revenue split by product revenue (BPE, ETS)

Mid-term Target - Product Revenue

~80%

ETS Product Revenue

BPE Product Revenue • Organic Growth

• Integration Technology

• Business Process Mgt.

• Cloud

• Terracotta / Big Data

• Partner / OEM

• M&A / Innovative Technologies

2012 2018

45%

€1 Billion

20%

80%

2006

55%

~20%


20 |

BPE

Enterprise Transaction Systems

Business Process Excellence Product revenue: growth ca. 15-20% p.a.

> 50% contribution to group result

Terracotta / BigData

Product revenue: growth ca. 50-100% p.a.

Expand BigData offering by Real Time BI platform

Product revenue in gradual decline (single digit % p.a.)

Manage cost to maintain operating margin > 50%

ETS

Share of

product revenue*

* According to

mid-term

business goals

Mid-term Business Goals (2018, base: 2012)

Increase BPE product revenue to € 1 bn

Strategic acquisitions (cash-only; Cloud/BigData)

EPS growth 10-20% p.a. (2013-2018)

Software AG Group


21 |

Outlook FY 2013

* Net of currency, delta ** before share -buyback

Product Revenue BPE

Product Revenue ETS 310

€ 1.70 to € 1.80

-9% to -4%*

384 +16% to +22%*

€ 1.90

FY 2012 (in €m)

Outlook FY 2013 (as of Jan. 29, 2013)

EPS**


Follow us on Twitter:

@SoftwareAG_IR

Investor Relations

Uhlandstrasse 12

64297 Darmstadt

Germany

phone: +49 (0) 6151 / 92 1900

fax: +49 (0) 6151 / 9234 1900

softwareag.com

e-mail: [email protected]

mailto:[email protected]

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