Deutsche Bank German, Swiss & Austrian Conference

Transcription

1 Deutsche Bank German, Swiss & Austrian Conference Arnd Zinnhardt CFO May 14, 2013

2 Safe-Harbor-Statement 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. 2

3 Software AG - At a Glance Technology leader in systems integration, process automation and data management Middleware to integrate data applications and digital workflows > 1bn revenue Operating EBITDA margin 28.6% (FY 2012) > 2.3 B market cap, Net Cash positive > 5,000 Employees worldwide Big-data and In-memory technology Process Planning, monitoring and analysis ~ 66% Free float, 29% Software AG Foundation High performance database Global customer base: 80% of Fortune 10,000 3

4 Large Enterprise Customers in 70 Countries Worldwide Finance Public Sector Chemicals/Pharma Energy/Utilities Telecom Manufacturing Logistics/Transport Healthcare/ Consumer Goods 4

5 Software AG s Track Record Revenue in m EBIT in m , Net profit in m ,438 Employees 3,526 5,

6 Revenue Split Well Balanced Product Revenue by Region* Product Revenue by Industry* Germany PIIGS < 4% Asia Pacific 13% 8% Americas 48% Telcos Manufacturing Retail Other Logistics 20% Financial Sector EMEA (ex Germany) 31% BRICS 13% Associations Services IT 20% Public Sector *Based on product revenue FY

7 Business Process Integration Big Data Transaction Business Process Analysis Enterprise Architecture Governance, Risk and Compliance Management Integration Business Process Management In-Memory Data Management In-Memory Intelligent Action Application Development Database Management System Application Modernization 7

8 Software AG Product Suite Powering The Digital Enterprise Business Process Excellence (BPE) Business Process Integration Big Data Transaction BPE - Business characteristics 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 BPE - Product revenue development in m

9 Software AG Product Suite Powering The Digital Enterprise Enterprise Transaction Systems (ETS) Business Process Integration Big Data Transaction 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) in m

10 Increasing Product Revenue from the High-Growth BPE Division BPE Product Revenue in m BPE % 80% 60% 40% 20% 0% 61% 57% 53% 48% 45% 39% 43% 47% 52% 55% Relative share of product revenue ETS BPE 10

11 BPE - Future Growth is Driven by New Products (BPE licenses in m) % y-o-y* 10 0 Q Q Q Q Q Q2e 2013 Q3e 2013 Q4e 2013 *at constant currency rates 11

12 Cost Ratios & Profitability /2012 FY 2012 (in m) *as % of total revenue 1, EBIT (IFRS) Margin 23.7% 64%* 10%* 24%* 7%* Total Revenue Gross Profit R&D Sales & Marketing Admin Other Profitability FY 2011 (in m) 1, EBIT (IFRS) Margin 24.5% 60%* 8%* 21%* 7%*

13 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 Selective M&A in three strategic areas: Integration / SOA & Cloud Business Processes Big Data Innovation addressing Mega Trends for enterprise IT Cloud Big Data Mobile Collaboration 14

15 BPE Engine of Future Growth (Product revenue in m) Outlook 2013* Business Process Excellence Enterprise Transaction Systems +16% to +22% % to -4% e * At constance currency

16 Acquisitions Support Technology Leadership Strategic Acquisitions Technology Add Ons 16

17 Innovation Strategy Main Technology Drivers 4 Forces NoSQL Hadoop Social Computing Internet of Things 17

18 Outlook

19 Mid-term Target - Product Revenue Group revenue split by product revenue (BPE, ETS) 1 Billion 55% ~80% BPE Product Revenue Organic Growth Integration Technology Business Process Mgt. Cloud Terracotta / Big Data Partner / OEM M&A / Innovative Technologies 20% 80% 45% ~20% ETS Product Revenue

20 Mid-term Business Goals (2018, base: 2012) Share of product revenue* BPE Business Process Excellence Product revenue: growth ca % p.a. > 50% contribution to group result Terracotta / BigData Product revenue: growth ca % p.a. Expand BigData offering by Real Time BI platform ETS Enterprise Transaction Systems Product revenue in gradual decline (single digit % p.a.) Manage cost to maintain operating margin > 50% Software AG Group Increase BPE product revenue to 1 bn Strategic acquisitions (cash-only; Cloud/BigData) EPS growth 10-20% p.a. ( ) * According to mid-term business goals 20

21 Outlook FY 2013 FY 2012 (in m) Outlook FY 2013 (as of Jan. 29, 2013) Product Revenue BPE % to +22%* Product Revenue ETS 310-9% to -4%* EPS** to 1.80 * Net of currency, delta ** before share -buyback 21

22 Investor Relations Uhlandstrasse Darmstadt Germany phone: +49 (0) 6151 / fax: +49 (0) 6151 / softwareag.com investor.relations@softwareag.com Follow us on

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