SNP Schneider-Neureither & Partner AG German Equity Forum 2014 25. - 26. November 2014 Dr. Andreas Schneider-Neureither, CEO Jörg Vierfuß, CFO
German Equity Forum 2014 2 Agenda 1 Executive summary 2 Business model 3 Strategy 4 Financials 5 Appendix
German Equity Forum 2014 3 SNP at a glance Data Executive Board Headquarters: Heidelberg Established: 1994 Employees: > 250 Succesful Projects: > 2,500 Revenue 2013: 23.5 million Dr. Andreas Schneider-Neureither CEO Jörg Vierfuß CFO Henry Göttler COO SNP advises and assists companies in the implementation of changes within their IT landscape For this, SNP uses the world's first standard software that implements changes in IT systems in an automated and standardized way: SNP Transformation Backbone The specially developed transformation software is based on experience from more than 2,500 projects worldwide USA Germany Austria Switzerland Spain South Africa
German Equity Forum 2014 4 Bottom line up front moat and margin SNP has the industry s only off-the-shelf software for any-to-any ERP transformation Takes projects from years to months Powers growth through acquisition and restructuring Allows executives, acquirers and investors to reorganize, simplify and harmonize organizations and processes A key enabling technology for cloudification Freedom in the cloud enables easy movement between clouds Years of effort invested in developing complex IP hard to replicate Current sales and industry trends are powering strong growth So far in 2014 over 1 Trillion USD in M&A activity worldwide SNP Transformation Backbone software 1st nine month 2014 revenue up 43% over 2013 Software license revenue up 72% in the same periode
German Equity Forum 2014 5 Agenda 1 Executive summary 2 Business model 3 Strategy 4 Financials 5 Appendix
German Equity Forum 2014 6 SNP Transformation Backbone Powerful analysis of the systems and the system landscape Predefined roadmaps, rules and validation tests Visual representation of the business processes based on real data Complete documentation of all transformation processes Preconfigured components for all transformation scenarios Reuse of predefined scenarios and rules
German Equity Forum 2014 7 Customers and partners Customers (Extract) Partners (Extract)
German Equity Forum 2014 8 Other critical success factors Auditor and vendor certifications Off-the-shelf software and processes Employ agile project management policies and procedures Scalability through enterprise software license sales
German Equity Forum 2014 9 Direct & indirect sales in the first nine month 2014 24 20 16 12 8 4 0 Distribution of sales ( million) 8.0 7.5 7.0 5.3 4.9 5.6 5.7 6.0 6.0 4.4 4.2 4.6 2.3 1.5 1.0 1.0 0.9 0.7 22.5 15.8 17.7 13.2 4.8 2.6 2013 2014 2013 2014 2013 2014 2013 2014 Q1 Q2 Q3 9M Indirect sales Direct sales Comments Indirect sales: International distribution partnerships Good network with globally operating partners Distribution potential among major international corporations Direct sales: Professional Services segment: Consultancy services including SNP solutions Software segment: SNP solutions, particularly SNP Transformation Backbone, as independent products
German Equity Forum 2014 10 Agenda 1 Executive summary 2 Business model 3 Strategy 4 Financials 5 Appendix
German Equity Forum 2014 11 Long-term Product and Growth Strategy Go-to-Market Initiatives Expand direct sales force and increase vertical market expertise of the sales force Direct-to-partner campaigns and our new partner newsletter to promote wider adoption of SNP services Increase product-specific marketing and leadgeneration campaigns through email, internet, SEO and telesales Grow Business Process and Strategy Consulting Deliver value and influence in the early stages of the transformation process Graphical multi-system cross-organization process mining and optimization Transformation strategy, business and technical consulting along with off-the-shelf software tools Vision SNP 2020 - Product R&D Continued investment in Any-to-Any transformation tools supporting a wider array of enterprise systems Cloud-based self-service Transformation App Store. A key enabler for transformation, cloudification, freedom in the cloud and HANA
German Equity Forum 2014 12 Long-term strategic transformation process Revenues ( million) EBIT margin (%) EBIT margin 30 20 10 0-10 SAP Consulting Company 21.3 23.5 20.7 20.2 22.1 20.9 26.6 17.5 27.2 10.9 Transformation Phase 23.5-11.5 ~ 30 40 30 20 10 Software Company Recurring maintenance and license revenue More scalable sales via software Higher margins High market entry barriers and stronger customer relationship -20 0 2008 2009 2010 2011 2012 2013 2014e 2015 2016 2017
German Equity Forum 2014 13 Agenda 1 Executive summary 2 Business model 3 Strategy 4 Financials 5 Appendix
German Equity Forum 2014 14 Significant increase in revenue in the first nine month 2014 8 6 4 2 0 millions 5.6 Total 7.0 Profess. Services 4.4 5.4 Software 1.2 1.6 Q3/2013 Q3/2014 Q3/2013 Q3/2014 Q3/2013 Q3/2014 Comments Significantly improved capacity utilization 25 20 15 10 5 0 millions 15.9 Total 22.5 Profess. Services 12.7 17.0 Software 3.2 5.5 9M/2013 9M/2014 9M/2013 9M/2014 9M/2013 9M/2014 Revenue of 22.5 million in the first nine months of 2014, up 41.1% year-onyear Above-average revenue growth in the Software segment
German Equity Forum 2014 15 Order entry & order backlog 30 Order entry ( millions) Comments 20 10 17.6 23.9 Order entry increased by 36% 0 30.09.2013 30.09.2014 Book-to-bill ratio > 1 Order backlog ( millions) 15 10 5 9.4 10.4 Increase in order backlog by roughly 1.0 million 0 30.09.2013 30.09.2014
German Equity Forum 2014 16 Return to profitable growth Cash flow from operating activities ( k) 5,000 5.000 1,805 0-5,000-5.000-3,148 9M/2013 9M/2014 Cash flow used in investing activities ( k) Comments Positive cash flow from operating activities demonstrates the company's operational strength Cash and cash equivalents were almost unchanged compared with the start of the year 0-2,000-2.000-4,000-4.000-2,393-523 Total cash flow after investing and financing activities k -2 (9M/2013: -3.5 million) 9M/2013 9M/2014 Cash flow used in financing activities ( k) Cash and cash equivalents ( k) 4,000 4.000 2.000 2,000 0 2,027 6,500 6.500 6,355 6,353-2,000-2.000 9M/2013-1,284 9M/2014 6,000 6.000 31.12.2013 30.09.2014
German Equity Forum 2014 17 Sound asset and capital structure Assets ( millions) 30.06.2014 31.12.2013 30.06.2013 Current assets 14.4 16.1 14.8 of which cash and cash equivalents 6.4 6.4 6.6 of which trade receivables 6.8 8.7 6.8 Non-current assets 8.3 7.8 7.9 of which goodwill 4.3 4.1 4.1 of which intangible assets 0.9 1.1 1.1 of which property, plant and equipment 1.2 1.1 1.1 of which deferred taxes 1.8 1.4 1.4 TOTAL ASSETS 22.7 23.9 22.7 Capital ( millions) 30.06.2014 31.12.2013 30.06.2013 Current liabilities 5.8 5.8 3.9 of which liabilities due to banks 0.6 0.6 0 of which trade payables 1.0 1.1 0.8 of which other current liabilities 4.0 3.7 2.6 Non-current liabilities 3.6 4.3 0.8 of which liabilities due to banks 1.8 2.3 0 Equity 13.3 13.8 14.4 TOTAL EQUITY AND LIABILITIES 22.7 23.9 22.7 Comments Notable decrease in trade receivables to 6.8 million (31.12.2013: 8.7 million) Stable equity ratio of 58.6% (31.12.2013: 57.6%) Total current and noncurrent liabilities due to banks: 2.4 million (31.12.2013: 2.9 million)
German Equity Forum 2014 18 Human resources growth Number of employees Comments 223 248 259 145 171 185 Continuous increase in the number of employees underscores the company's growth 2009 2010 2011 2012 2013 H1 2014 Percentage distribution of personnel increase Consulting 162% 100% Development & Sales Total 138% 126% Above-average recruitment in Development & Sales Strategic transformation into a software company 2012 2013 2014
German Equity Forum 2014 19 Outlook sustainable growth Forecast 2014 Consolidated revenue of approximately 30 million EBIT margin in the mid-single-digit percentage range Further development into a software company Software segment: Disproportionately high increase in sales Further expansion of partner activities Partner revenue: Disproportionate increase Intensified business activities in the US USA revenue share as a double digit percentage
German Equity Forum 2014 20 Agenda 1 Executive summary 2 Business model 3 Strategy 4 Financials 41 5 Appendix
German Equity Forum 2014 21 SNP share Transparency level Trading centers Indexes Designated Sponsor Research Coverage Number of shares Ø daily trade volume in Germany (52 weeks / Last update: Oktober 2014) Current share price in (Xetra 21 November 2014) Prime Standard Xetra, Frankfurt, Hamburg, Berlin, Munich, Stuttgart, Düsseldorf CDAX, DAXsector All Software, DAXsubsector All IT-Services, Prime All-Share, Prime Standard Index BankM BankM, Edison, Hauck & Aufhäuser 3,738,060 29 thousand / 2.510 pcs. 12.90
German Equity Forum 2014 22 Development of the SNP share compared to the DAX & TecDAX 2014 140% 120% SNP DAX TecDAX 100% 80% 60% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
German Equity Forum 2014 23 Shareholder structure Source: Releases according to the German Securities Trading Act. Freefloat calculated according to Deutsche Börse AG Last update: 6 November 2014
German Equity Forum 2014 24 Dividend development Last update: 6 June 2014 0,70 0.70 0,60 0.60 0.57 0.57 0.58 0,50 0.50 0,40 0.40 0.33 0.38 0,30 0.30 0.24 0,20 0.20 0,10 0.10 0,00 0.00 0.10 0.17 thereof 0.13 2005 2006 2007 2008 2009 2010 2011 2012 2013 0.08 Dividend Special dividend
German Equity Forum 2014 25 Financial calendar 2015 30 January 2015 Publication of the Preliminary Figures for 2014 2 April 2015 Publication of Annual Report 2014 30 April 2015 Publication of the Interim Statement for Quarter I 21 May 2015 Annual General Meeting 2015 31 July 2015 Publication of Half Year Figures 30 October 2015 Publication of the Interim Statement for Quarter III
Contact Investor Relations Marcel Wiskow E-mail: investor.relations@snp-ag.com Tel.: +49 (0) 6221 6425-637 Fax: +49 (0) 6221 6425-470