CLOUD & IOT THE NEW GROWTH DRIVERS

Transcription

1 CLOUD & IOT THE NEW GROWTH DRIVERS Eric Duffaut CCO Kepler Cheuvreux Roadshow Paris, 19 September Software AG. All rights reserved

2 SAFE-HARBOR-STATEMENT 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. 2

3 SOFTWARE AG AT A GLANCE Technology leader for more than 40 years in data management and application development platforms 870+ MILLION IN REVENUE 50%+ recurring 75% product revenue 41% Americas 51% EMEA BY REGION* REVENUE 26% A&N 23% Services 51% DBP BY BUSINESS LINES* 4,500+ EMPLOYEES** Consulting &Services 42% Admin 13% R&D 26% S&M 19% ~ 3bn MARKETCAP ~ 66% Free Float * Based on Group product revenue FY 2017 **P&L as of December 31,

4 BUSINESS LINES IoT and Industry 4.0 Platforms Integration & Automation Analytics & Decisions In-Memory Data Business & IT Transformation Application Development Data Management System Modernization System Support Strategy & Design Product Implementation & Customized Solutions Education & Cloud Services Global Delivery (on-/offshore) Growing Revenue Growing Stability Growing Margin Share of Revenue* 52% Share of Revenue* Share of 25% 23% Revenue* *Group revenue split FY

5 DATA CENTERED ERA REQUIRES SOFTWARE CENTRICITY ENTERING THE NEXT COMPUTING CYCLE WHICH IS CENTERED ON DATA Source: Morgan Stanley Research, The Data Era Becomes Investable, April 9, 2018 Source: Bain & Company, 2017 Software AG is ready to reap proceeds from higher IT investments by providing a comprehensive workbench along the IT value chain. Software AG has singled out a distinct area of growth in (industrial) IoT to leverage its capabilities. 5

6 SOFTWARE AG IOT PLATFORM CAPABILITES ACQUISITIONS TO CATER THE IOT NEEDS IoT Acquisitions Strategic decision for IoT Big Data & Streaming Analytics Machine Learning Device Connectivity Time-series Analytics Artificial Intelligence Edge Computing 6

7 SOFTWARE AG MAIN ACQUISITIONS FOR IOT EXTENDS OUR TECHNOLOGY LEADERSHIP Follows a common technology vision Is already integrated in Digital Business Platform Enables smarter applications across all industry verticals Important capability for IoT use cases Key customer wins AI, machine learning & predictive analytics Strong telco experience (Nokia spin-off) Development of IoT platform since 2010 Integration Visualization and templates Real-time Analytics Device Management Connectivity: Multi protocol / machine languages (300+ industrial protocols) IoT PaaS End-to-End Cloud Platform 7

8 ESSENTIAL CAPABILITIES TO SUCCEED IN IOT Artificial Intelligence IOT Time-Series Analytics 8

9 DIGITAL BUSINESS PLATFORM (DBP) & IOT EVOLUTION CREATING NEW DIGITAL BUSINESS IN REAL TIME ECONOMY DBP Connect business data & logic I ot Connect device & production process data Apply real-time analytics Build new digital business models (algorithms) Create new digital enterprise 9

10 DIGITAL BUSINESS PLATFORM & IOT GTM / DISTRIBUTION CHANNELS Direct Cloud OEM Project based Product Sales and Upgrades Standardized / Use Case Product Offerings (e.g. ARIS & Alfabet) Sales Scale with Partner Platform or Solution 10

11 CUSTOMER BASE IS MATCHING IOT GROWTH SECTORS IoT Demand by Sector ( ) Software AG Customer by Sector (Product Revenue 2017) 5% 4% 10% 12% 20% 19% 12% Government IT Services Services Transp. & Log. 18% Financial Services Manufacturing Telco & Media Other 11

12 SOFTWARE AG S SUCCESS STORIES IN IOT IOT ECOSYSTEMS INDUSTRIE 4.0, TELCOS, AUTOMOTIVE, JV of leading machinery manufacturers: DMG MORI, DUERR, ZEISS, ASM, ENGEL, KARL MAYER Transforming auto insurance through behavioral, contextual and driving analytics Strengthening Mindsphere platform across industries enabling powerful industry applications Enabling customers to use geo-sensing alerts, reduce theft and anticipate maintenance needs Leveraging Bosch IoT Cloud platform with real-time predictive analytics technology KPN (NL), Telstra (AUS), Telia (SWE), Reliance Communications (India), NTT (Japan), Deutsche Telekom (T-Systems), Nokia / Huawei Software AG. All rights reserved

13 SOFTWARE AG S OPEN IoT ECOSYSTEM OVERVIEW Technology & Analytics Hardware & Devices System Integrator Consortia & Alliances Value-added reseller Infrastructure & Connectivity 13

14 ADDITIONAL INFORMATION ACQUISITIONS AND INNOVATION FINANCIAL PERFORMANCE SHAREHOLDER STRUCTURE 14

15 SOFTWARE AG ACQUIRED SELF-SERVICE ANALYTICS FOR TIME-SERIES DATA Helping Global Manufacturing Companies Improve their Plant Availability, Production Quality, and Overall Asset Effectiveness Through self-service Search, Diagnostic and Predictive Analytics using Pattern Recognition and Machine Learning Technology. 15 Enriches Cumulocity IoT Self-service tooling for Domain Experts, not Data Scientists Fits well into Land & Expand model and SaaS approach Strong customer base in Process Industry Continuous and Batch Processes in Chemical, Oil & Gas, Energy & Utilities and Pharma Joint opportunity to broaden usage towards Discrete Manufacturing Analyze Monitor Predict

16 FINANCIAL DATA KEY FIGURES in m, IFRS H H Δ FY 2017 FY 2016 Δ Total Revenue %* %* BL DBP (including Cloud & IoT) %* %* Thereof Cloud & IoT %* 14.9 N/A N/A BL A&N %* %* BL Consulting %* %* Annual Recurring Revenue (Cloud & IoT) %* 14.8** N/A N/A EBIT % % EBITA (non-ifrs) % % EPS (in, non-ifrs) % % Dividend per share % Free cash flow % % Operating Margin Group (EBITA non-ifrs) 28.7% 28.4% 30bps 31.8% 31.2% 60bps Shareholders equity ratio 59.4% 58.7% 70bps 58.6% 61.1% -250bps *At constant currency ** at internal FX plan rate

17 DBP CLOUD & IOT DEVELOPMENT ARR ANNUAL RECURRING REVENUE (STATUS JUNE 30, 2018) m %** ARR = Total Conctract Value (TCV) of active contracts at period end divided by contract duration in months, times Q Q Q Q Q Q *Net of currency (based on prior year rates) **vs. previous quarter status Subscription License Maintenance SaaS 17

18 OUTLOOK FULL YEAR 2018 FY 2017 (in m) FY 2018 Outlook (as of April 13, 2018) DBP Total Revenue - DBP (excl. Cloud & IoT) - DBP Cloud & IoT N/A % to +7% 1) % to +135% 1) Adabas & Natural Operating Margin Group (EBITA non-ifrs) 2) EPS non-ifrs 3) % % to -2% 1) 30% to 32% +5% to +15% 1) At constant currency rates 2) Adjusted for non-operating items (see non-ifrs earnings results) 3) Weighted average shares outstanding (basic/ias 33.19) FY 2017: 74.6m / H1 2018: 74.0m; based on new US-Federal-Tax and Euro/US-Dollar exchange rate of 1/

19 2018 TURNING POINT / DIGITAL BUSINESS DRIVING GROWTH 100% License Revenue 100% Maintenance Revenue 80% % % 60% 40% 40% 20% 20% 0% 0% 100% Segment Result 80% 60% 40% 20% 0% 2018e Digital Business Platform Adabas & Natural 19

20 SHAREHOLDER STRUCTURE OWNERSHIP REGIONAL SPLIT* Software AG Foundation Own Shares (0.03%) Institutional Investors Private Investors 33.7% 61.3% 18.9% 19.1% 38.4% Germany North America Continental Europe (excl. Germany) UK & Ireland 23.1% Rest of World *Institutional Investors based on public files, Aug 2018 Share Info Number of total shares: 74,000,000 Thereof Free Float: ~ 66% Number of shares outstanding: ~ 74m Registered shares since Oct 2, 2017 Share Data SOW, SOW:GR, SOWGn.DE ISIN: DE000A2GS401 ADR symbol: STWRY Indices: TecDAX, (MDAX), TechAllShare Major Institutional Shareholders according to notification of voting rights above 3% threshold of shares outstanding Deutsche Asset Mgmt. Investment 4.91% Oct 20, 2017 Axxion S.A. 3.30% Apr 13, 2018 BlackRock, Inc 3.05% May 24,

21 Investor Relations Uhlandstrasse Darmstadt Germany T: +49 (0) 6151 / F: +49 (0) 6151 / W: softwareag.com E: investor.relations@softwareag.com 21