Increased maneuverability More efficient IT organization Optimal Business Support Managing Change In IT Creating Value Through IT. Dr. Andreas Schneider-Neureither CEO SNP Schneider-Neureither & Partner AG London, November 2016
2 Agenda 1 Creating Value Through IT. Our Business. 2 Strategy 3 Financials & Outlook 4 Capital Market Appendix
Managing Change in IT 3 Creating Value Through IT.Business Changes. Challenges For Many Companies. Digital business is the creation of new business designs by blurring the digital and physical worlds. (Gartner)
Managing Change in IT 4 Creating Value Through IT.Change is Our Business. 70% of companies believe transformation to becoming a digital business is their greatest challenge Increased Maneuverability Efficient Organization Optimal Business Support
Managing Change in IT 5 Creating Value Through IT Business and Technology Driven Triggers for Change Mergers & Acquisitions Reorganization & Digital Business Consolidation Upgrade & Cloudify Carve Outs & Divestures Data Harmonization
Managing Change in IT 6 Creating Value Through IT Roadmap To S/4HANA TODAY TOMORROW ERP SAP Business Suite (on Hana) SAP S/4HANA SCM Global HCM Simple Finance Concur BW Legacy BO CRM GRC Local HCM Business Suite on HANA NonSAP SuccessFactors COMPLEXITY SIMPLICITY
Managing Change in IT 7 Creating Value Through IT Who Is SNP? - We are The Transformation Company Headquarters Heidelberg (GER) Founded 1994 Global Delivery Centers 10 Boot Camps 3 Employees > 650 Projects > 4,500 Global Customer References:» USA Germany South Africa China Austria Singapore Switzerland Malaysia Spain All Sizes All Lines of Business
8 Agenda 1 Creating Value Through IT. Our Business. 2 Strategy 3 Financials & Outlook 4 Capital Market Appendix
Strategy 9 Creating Value Through IT. America: Cloud Transfer from ERP environments to the public or private cloud Modernisation of business applications from the cloud (software as a service) Migration of ERP systems to the SAP HANA Cloud Platform
Move of ERP environments to the Public or Private Cloud 10
Strategy 11 Creating Value Through IT. Europe: SAP HANA Modernisation of IT systems via move to HANA technologies Implementation of new business applications on the HANA platform Migration of old systems to S/4HANA Enterprise Management
Migration of Legacy Systems to S/4HANA Enterprise Management 12
Strategy 13 Creating Value Through IT. Asia: Roll-Out Roll-out of new business applications to ASIAPAC Consolidation of ERP landscapes in Asia Implementation of new business applications on S/4HANA
Consolidation of ERP landscapes in Asia 14
Strategy 15 Creating Value Through IT..SNP Transformation Backbone. The Industry Standard for Business Transformation SNP Transformation Cloud Analysis Benchmark Reports SNP Transformation Warehouse SNP Transformation Cockpit Objects Rules Testing SAP Landscape Transformation SNP Java Transformation Engine
Strategy 16 4D Strategy Innovative Software Intelligent Infrastructure Discovery Automated Application Analysis Any-to-Any Transformation Business Process Analysis High Automation SOFTWARE Vendor Neutral End to End Consulting Transformation Strategy Process and Module Consulting Customer Development Infrastructure and Technology SERVICES Global Delivery SAP Oracle Microsoft Infor Salesforce Workday Legacy Others
Strategy 17 Inorganic growth steps in the years 2015 & 2016 Jan. 2015 Apr. 2016 Jan. 2016 Sep. 2016 Extension of the value chain: Majority acquisition in RSP GmbH Move to Asia: Shareholdings in Hartung Consult GmbH & Astrums Consulting (S) Pte. Ltd. Knowledge & Technology: Acquisition of 20% of the shares in Innoplexia GmbH IT Data Migration Specialist in SAP environments: Majority holding in UK based Harlex Management Ltd.
18 Agenda 1 Creating Value Through IT. Our Business. 2 Strategy 3 Financials & Outlook 4 Capital Market Appendix
Financials & Outlook 19 Nine-Month Figures at a Glance in mn 9M 2016 9M 2015 Δ Incoming Orders (as of September 30) 72.3 46.3 +56 % Order Backlog (as of September 30) 36.2 20.0 +81 % Revenue 57.5 41.4 +39 % EBIT EBIT Margin (%) 5.2 9.0 3.8 9.2 +37 % -0.2 pp Equity Equity Ratio (%) 49.7 62.5 15.8 35.5 +215 % +27.0 pp Number of Employees (as of September 30) 675 374 +80 %
Financials & Outlook 20 Growth. Stable Revenue in mn 9M 2016 60 EBIT margin in % 57.5 16% Contribution of Hartung Consult and Astrums Consulting to the revenue growth: 17% 50 40 41.4 12% Organic revenue growth: 22% 9M 2015 30 20 10 22.5 2.7% 9.2% 9.0% 8% 4% Contribution of RSP Unternehmensberatung to the revenue growth: 30% Organic revenue growth: 54% 0 9M 2014 9M 2015 9M 2016 0%
Financials & Outlook 21 Development of employees Number of employees As of year end 675 Employees by division As of Sep. 30, 2016 73 Consultants 401 66 Admin 145 171 185 223 248 280 420 59 37 20 Students / Trainees Sales Development Marketing 2009 2010 2011 2012 2013 2014 2015 Sep. 30, 2016
Financials & Outlook 22 Outlook 2016 Revenue Mitarbeiterzahl in mn zum Jahresende 72-78 72-78 EBIT margin in Jahresende % 8.1 8-10 56.2 56.2 4.7 23.5 30.5 30.5-11.5 2013 2014 2015 2016e 2013 2014 2015 2016e
23 Agenda 1 Creating Value Through IT. Our Business. 2 Strategy 3 Financials & Outlook 4 Capital Market Appendix
Capital Market Appendix 24 Key data of the share ISIN Segment Stock exchanges Indices Designated Sponsor Research Coverage Number of shares Share price (October 26, 2016) Market capitalization 720 370 / DE0007203705 / SHF Prime Standard Xetra, Frankfurt, Hamburg, Berlin, Munich, Stuttgart, Dusseldorf CDAX, DAXsector All Software, DAXsubsector All IT-Services, Prime All-Share, Prime Standard Index Oddo Seydler Oddo Seydler, Hauck & Aufhäuser, Edison, Mainfirst 4,976,786 36.10 Approx. 181 mn
Capital Market Appendix 25 Development of the SNP share since January 2015 40 30 SNP share in (Xetra) Daily average volume each month in number of shares (all exchanges) 20000 15000 10000 20 5000 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2015 2016
Capital Market Appendix 26 Analyst Assessments Institute Date Rating Price Target Hauck & Aufhäuser Oct. 28, 2016 Buy 40.50 Oddo Seydler Oct. 6, 2016 Buy 42.00 MainFirst Sep. 23, 2016 Outperform 37.00
Capital Market Appendix 27 Key data of the corporate bond Amount Issue volume Principal amount Issue date Maturity date Coupon Interest payment date Price (October 26, 2016) ISIN Listing 20 mn 10 mn 1,000 March 9, 2015 March 9, 2020 6.25 % 9 March 2017 105.60 % DE000A14J6N4 Open Market (Freiverkehr, Frankfurt Stock Exchange)
Capital Market Appendix 28 Development of the SNP corporate bond since issue in March 2015 112 Corporate bond in % (Frankfurt) 108 104 100 96 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2015 2016
Capital Market Appendix 29 Shareholder structure
Capital Market Appendix 30 Dividend payouts for the years 2013-2015 2015 2014 2013 Total payout ( mn) 1.3 0.5 0.3 Payout ratio (%) 49 48 - Eligble shares (mn) 3.7 3.7 3.7 Dividend per share ( ) 0.34 0.13 0.08 Earnings per share ( ) 0.69 0.27-0.65
Capital Market Appendix 31 Successful Capital Increase Share Capital in mn 3.74 4.98 Significant increase of the share capital by 1,238,726 to a total of 4,976,786 as of July 7, 2016 The new shares were issued at a price of 25.00 per share. Management members and other employees have purchased new shares for a total amount of around 10.6 mn. The company has seen a gross inflow of new funds of around 31mn. Old New Financing the organic and inorganic growth strategy.
Capital Market Appendix 32 Financial Calendar November 21 & 22, 2016 March 30, 2017 April 28, 2017 May 31, 2017 July 28, 2017 October 27, 2017 November 2017 German Equity Forum 2016 Publication of the Annual Report 2016 Publication of the Interim Report for Q1 Annual General Meeting 2017 Publication of the Half-Year Financial Report Publication of the Interim Report for Q3 German Equity Forum 2017
Contact Investor Relations Marcel Wiskow E-Mail: investor.relations@snp-ag.com Tel.: +49 (0) 6221 6425-637 Fax: +49 (0) 6221 6425-470