Lawson Software Growth Strategy. Dean Hager Senior Vice President, Product Management

Transcription

1 Lawson Software Growth Strategy Dean Hager Senior Vice President, Product Management

2 Use of Forward-Looking Statements This presentation contains forward-looking statements, including forecasts of market growth, future revenue, benefits of the proposed merger, and expectations that the merger will be accretive to Lawson s results and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this presentation. Such risk factors include, among others: difficulties encountered in integrating merged businesses; uncertainties as to the timing of the merger; approval of the transaction by the stockholders of the companies; the satisfaction of closing conditions to the transaction; whether certain market segments grow as anticipated; the competitive environment in the software industry and competitive responses to the proposed merger; and whether the companies can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this presentation. Additional information concerning these and other risk factors is contained in the Risk Factors section of Lawson Software s most recently filed Form10-Q. Lawson Software undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this presentation. Page 2

3 Use of Non-GAAP Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, this presentation includes non-gaap financial results. These non-gaap results exclude amortization of all acquisition-related intangibles, Intentia integration costs, restructuring charges, certain stock-based compensation expenses and other expenses. Lawson s management believes the non-gaap measures used in this presentation are useful to investors because they provide supplemental information that analysts frequently use to analyze software companies that have recently made significant acquisitions. Management uses these non-gaap measures to evaluate its financial results, develop budgets and manage expenditures. The method Lawson uses to produce non-gaap results is not computed according to GAAP, may differ from the methods used by other companies, and should not be regarded as a replacement for GAAP measures. Page 3

4 Financial Position Revenue growth in maintenance and services revenue Achievement of total revenue and non-gaap EPS guidance Healthy cash balance Trailing Twelve Months Total non-gaap Revenue ($ Millions) $472 $393 $346 $351 Q2 FY06 Q3 FY06 Q4 FY06 Q1 FY07 Trailing Twelve Months non-gaap Net Income ($ Millions) Cash and Marketable Securities ($ Millions) $31 $36 $34 $31 $307 $289 $209 $235 Q2 FY06 Q3 FY06 Q4 FY06 Q1 FY07 FY04 FY05 FY06 Q1 FY07 Page 4

5 Lawson and Intentia LAWSON Enterprise Applications for Service- Oriented Industries Primarily North America $750 Million Rich Capability Solutions Provider Enterprise Scope + 4,000 Customers Broad Applications range for of the industries Global Market Geographically Non-GAAP Revenue $ balanced M in year one Technology Vision focused on Simplicity INTENTIA Enterprise Applications for Manufacturing, Distribution and Maintenance Industries Primarily Europe and Asia-Pacific Page 5

6 Expanded Global Reach Americas Europe Asia-Pacific 1750 Customers 1830 Customers 325 Customers Well-balanced in three regions Operate in 40 countries Five Global Solution Centers 3,650 employees, 4,000 customers More than 200 partners Among the top 5 ERP providers in the world Global Solution Centers Page 6

7 Target Select Industries Product-Centric Service-Centric Manufacturing Trade Service Providers Fashion Food & Beverage Distribution Retail Financial Services Healthcare Public Services Process Manufacturing Discrete Manufacturing Asset-Intensive Services Labor-Intensive Services Page 7

8 Product Lines Manufacturing Trade Service Providers Page 8

9 Technology Lawson Business Intelligence Lawson Landmark (Simplicity) IBM WebSphere (Standards) Page 9

10 Lawson Differentiation = Simpler is Better Complex Simple One Size Fits All Fusing Disparate Components Product- Centric Service- Centric Integrated, Specialized Solutions Labor-Heavy Implementations QuickStep Pre- Configuration Technology Forced March Choice & Protection Implementation Blame Game Clear Accountability Page 10

11 Global ERP Market $6.4B Annual License Fees with 6.8% Growth - Gartner Keys to Growth 50% 50% 1. Leverage Replacement Market 100+ Niche & Regional Solution Providers SAP Oracle Infor Microsoft 2. Global Visibility to Opportunities 3. Install-Base Selling Page 11

12 1. Leverage Replacement Market Re-Buy R/ B (4,000) Re- Implement E-Biz Suite (5,000) Re-Main SAP Oracle Infor Mapics (3,000) On Old Technology R/3 4.6C (4,000) R/3 Enterprise (5,000) mysap 2004/05 (600) Business One (10,000) All-in-One (8,000) PeopleSoft (5,000) JDE OneWorld (2,000) World (4,000) SSA (2,000) Baan (2,000) Infinium (1,000) Marcam (1,000) Geac (1,000) Page 12

13 MetaGroup 2004 Study on Customer TCO Lawson s S3 TCO is ¼ SAP and 1 / 3 Oracle 100% 80% 60% 40% 20% 0% Industry TCO Pattern Post-Implementation Internal Staff (2 Years) Implementation Internal Staff Maint enance Cost s Implementation Services Ot her Sof t ware ERP Software Hardware Page 13

14 Aberdeen Group confirms Lawson s TCO Advantage (2006) Lowest Cost Lawson has the lowest average cost of software per user Lawson delivers low average cost for software and services per user SAP average cost per user is 48% more than Lawson Oracle average cost per user is 19% more than Lawson Price Performance Lawson customers leverage the highest average number of modules used Lawson has the lowest average cost per user per percentage point of functionality used SAP costs 46% more per user per % point of functionality used Oracle costs 27% more per user per % point of functionality used Cost per Business Benefit Achieved Lawson has low cost per percentage point of business benefits achieved SAP costs 39% more for each % point of improvement achieved Oracle costs 10% more for each % point of improvement achieved Source: AberdeenGroup, The Total Cost of ERP Ownership, October 2006 Page 14

15 2. Global Visibility to Opportunities Sales HC for M3 Markets Sales HC for S3 Markets Targeting ~25% Direct Sales Force Growth in FY Page 15

16 3. Install Base Selling Focused Opportunities Other Opportunities M3 Manufacturing & Distribution to S3 base Add-on Modules 2500 Budgeting & Planning SF BPM BI HCM EAM Addressable Customers Current Customers Mobile Supply Chain Management Supply Chain Planner Demand Planner Sales & Marketing Automation Etc. Lawson Products Page 16

17 EXAMPLE: Business Intelligence Page 17

18 EXAMPLE: Human Capital Management Human Resources Managing Director Performance Management Time & Leave Management Personnel, Competencies, Learning Recruitment Compensation & Benefits Payroll Self-Service Page 18

19 Summary Business Execution Available Opportunity Effective Channel Competitive Products & Positioning Page 19

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