Growth Strategy and Outlook 2018 Karl-Heinz Streibich, CEO January 29, 2013
Q4 2012 Results January 29, 2013 2 Safe harbor 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.
Innovation 2012 Financial Results 29. January 2013 3 Software AG innovates in 2 Dimensions: 1 Technology around the 4 forces 2 Go-to-Market Simplicity 3
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Cloud 1 CLOUD native Facebook-like COLLABORATION MOBILE ready (HTML5) Embedded DASHBOARDING Highly scalable Fast subscription based ACCESS EASY design, sharing, feedback and analysis Easy UPGRADE path to full BPA suite # new hires derived and planned trainings onboarding complete 6
Mobile Our Offering for 2013 1 Mobile Device Management Backend Access Control Manage Manage Monitor Design Develop Develop Mobile Development Environment Cross-platform Application Mobile Application Management Run Run Deploy Deploy Integrate Integrate Build Build Test Test Centralized Build Management Enterprise Service Bus 7
FOR Social 1 INSTANT ACCESS to Enterprise Events on your Mobile Device MONITOR & COLLABORATE on Activity Streams LEVERAGE the Power of event-driven Architecture to follow any System and Human Event CONSOLIDATE ALL Business related Social Streams Leverage SOCIAL BUSINESS PRODUCTIVITY 8
Big Data 1 REAL TIME Whole BPE suite integrated with TERRACOTTA Faster. More efficient NEW OPPORTUNITIES Actionable Intelligence Universal Access to BIG DATA 99
2 Example: Integration INTEGRATION is back in vogue! Cloud and Social main drivers Market growing at [Gartner] 33% Providing amazing BENEFITS Autotrader.com fulfills orders 70% faster Coca Cola Enterprises: $100M+ in savings Vodafone: customer inquiries resolution rate rose 95% Maintaining INDUSTRY LEADERSHIP 10
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Innovation Software AG innovates in 2 Dimensions: 1 Technology around the 4 forces 2 Go-to-Market Simplicity 12
2 Software AG Suite POWERING THE DIGITAL ENTERPRISE Business Process PLATFORMS Integration PLATFORMS Big Data PLATFORMS Transaction PLATFORMS 13
The Brand Architecture 14
Platform Brands 15
Software AG s Brand Promise Enterprises that need agile processes, smarter decisions and systems that work, need Software AG. The company s data, integration and process solutions help customers fully leverage the four forces of big data, mobile, cloud and social, powering their digital enterprise to act faster in ever-changing markets. 16
Transforming a Continent 2012 Financial Results 29. January 2013 17 OPPORTUNITY BOOST customer satisfaction AGILE infrastructure for rapid growth REDUCE customer turnaround times of max 15 minutes R E S U L T SPEED Inseconds mobile channel - 2.4 million self-service activities NEW Business 320,000 new customers OLD BUSINES 130,000 dormant customers re-activated 17
Transforming Security 2012 Financial Results 29. January 2013 18 OPPORTUNITY REDUCE fraud loss IMPROVE speed and accuracy of fraud detection system INCREASE rules in fraud detection algorithm from 50 to over 1,000 R E S U L T DRIVE profit up by tens of millions of Euros MEET 650 millisecond end-to-end SLA 99% of the time ACHIEVE better accuracy 18
2012 Financial Results 29. January 2013 19 Transformation of the Growth Driver Revenue split in Percent compared to total revenue (middle-term) 1 Billion ~80% BPE Business Organic Growth Integration Technology Business Process Mgt. Cloud Terracotta / Big Data Partner / OEM M&A / Innovative Technologies 52% 27% 73% 36% ~20% ETS Business 2006 2012 2018
Outlook 2013-2018 Arnd Zinnhardt, CFO January 29, 2013
Strategic focus on strong market outperformance to drive long-term, dynamic EPS growth Q4 2012 Results January 29, 2013 21 BPE License Growth 30% 20% Outperformance Winning Market Share 10% Avg. Market Growth 0 0 1 2 3
Strategic focus on strong market outperformance to drive long-term, dynamic EPS growth Q4 2012 Results January 29, 2013 22 BPE License Growth 30% 20% 10% 15% 2012 Outperformance Avg. Market Growth 1.90 0 1.00 2.00 3.00 EPS 0 1 2 3
Strategic focus on strong market outperformance to drive long term, dynamic EPS growth Q4 2012 Results January 29, 2013 23 BPE License Growth 30% 20% 10% 15% 2013 projection 2012 Outperformance Avg. Market Growth 1.90 0 1.00 2.00 3.00 EPS 0 1 2 3
Strategic focus on strong market outperformance to drive long-term, dynamic EPS growth Q4 2012 Results January 29, 2013 24 BPE License Growth 30% Guidance 2013: Accelerated License Growth 20% Outperformance 10% 2012 Avg. Market Growth 1.70 1.80 0 1.00 2.00 3.00 EPS 0 1 2 3
Strategic focus on strong market outperformance to drive long-term, dynamic EPS growth Q4 2012 Results January 29, 2013 25 BPE License Growth 30% Add. S&M Investment Guidance 2013: Accelerated License Growth 20% Outperformance 10% 2012 Avg. Market Growth 0 1.00 2.00 3.00 0 1 2 3 EPS
Strategic focus on strong market outperformance to drive long-term, dynamic EPS growth Q4 2012 Results January 29, 2013 26 BPE License Growth 30% 20% License Growth Drives EPS Growth 2018 Outperformance 10% 2012 Avg. Market Growth 0 1.00 2.00 3.00 0 1 2 3 EPS
Q4 2012 Results January 29, 2013 27 Outlook FY 2013 FY 2012 (in m) Outlook FY 2013 (as of Jan. 29, 2013) Product Revenue BPE 384 +16% to +22%* Product Revenue ETS 310-9% to -4%* EPS 1.90 1.70 to 1.80 * Net of currency, delta
Thank you Your contact: Investor Relations phone: +49 (0) 6151 / 92 1900 Follow us on Twitter: Uhlandstrasse 12 fax: +49 (0) 6151 / 9234 1900 @SoftwareAG_IR 64297 Darmstadt web: softwareag.com Germany e-mail: investor.relations@softwareag.com