capital markets day 2021 - software ag
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CAPITAL MARKETS DAY 2021
Opening Remarks
Otmar WinzigHead of Investor Relations
© 2021 Software AG. All rights reserved.
Event Schedule : 23 February 2021
3
Start of event14:00h CET (1pm GMT)
Speaker
2021 Strategic PrioritiesFinancial Transformation
Go-To-Market
Q&A I
Sanjay Brahmawar Chief Executive Officer
Dr. Matthias Heiden Chief Financial Officer
Scott Little Head of Global Sales
CEO, CFO & Head of Global Sales Break: 20 minutes15:58-16:18h CET (2:58-3:18pm GMT)
People & Culture
Technology VisionProduct Innovation
Q&A II
Dr. Elke Frank Chief Human Resources Officer
Bernd Gross Chief Technology Officer
Dr. Stefan Sigg Chief Product Officer
Management Team
End of event18:00h CET (5pm GMT)
© 2021 Software AG. All rights reserved.
4
SAFE HARBOUR
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. Act of 1933 in its currently
valid form.
© 2021 Software AG. All rights reserved.
5
CAPITAL MARKETS DAY 2021
2021 Strategic Priorities
Sanjay BrahmawarChief Executive Officer
© 2021 Software AG. All rights reserved.
© 2021 Software AG. All rights reserved.
Time to accelerate
Transforming with purpose
MOMENTUM
6
CONSISTENCY CONVICTION
6
© 2021 Software AG. All rights reserved.
A faster, fitter, more reliable Software AG
Momentum behind us
Total BookingsTotal Recurring Product Revenue
Digital Business Subscription
+10%ARR
growth*81%
7
FY20 FY20 FY20
FY19
+7% ARR
growth*
FY19
51%
FY19
85%
% TPR recurring
76%
* ACC
© 2021 Software AG. All rights reserved.
Commitments made. Commitments delivered.
Executing against plan
8
EXECUTION
Record Product
NPS
EMEA, NAM & DACH
Double Digit
Highly Engaged
Team
Attracting Best Tech
Talent
Landmark Competitive
Wins
Partner Channel
Powering Up
Taking Market Share
All 15 Core Products In The Cloud
Stronger, Sharper
GTM
© 2021 Software AG. All rights reserved.
We have reached our tipping point
9
q1 q2 q3 q4 q5 q6 q7 q8
81%
Peer analysis: subscription progress over first 2 transformation years
Software AG (% / bookings) PTC (% / bookings) Adobe (% revenue)
72%
42%
Subscription progress ahead of plan
Stronger, nimbler, better positioned
Leaning in to a significant opportunity
Ahead of plan on subscription
© 2021 Software AG. All rights reserved. 10
Subscription progress ahead of plan
Stronger, nimbler, better positioned
Leaning in to a significant opportunity
We have reached our tipping pointFollowing a well-trodden margin path
Operating Margin progression through transformation periods
PTC Adobe Software AG
Year 1 Year 2 Year 3 Year 4 Year 5
Autodeskactual
anticipated
Year 6 Year 7
Software AG
Non
-IF
RS
/Non
-GA
AP
Op
erat
ing
Mar
gin
Years since transformation commencement
© 2021 Software AG. All rights reserved.
The opportunity is ours
11
OVERALL TARGET ADDRESSABLE MARKET OF >$28bn IN 2024
$4.9bn10% CAGR
Business Transformation
$13.5bn10% CAGR
Integration
& API
$9.8bn26% CAGR
IoT
& Analytics
Leapfrogging a decade of digital transformation in just a few weeks
© 2021 Software AG. All rights reserved. 12
The Truly Connected Enterprise: a significant value driver beyond 2023
Toward and beyond 2023
New behaviorsNo going back
New demandsNo slowing down
New technologiesNo standing still
Current TAM in 2024
>$28Bn
Truly Connected Enterprise
TAM
$64Bn500m new apps by 2023
10 years of eCommerce delivery growth in 8 weeks
23Bn Edge devices by 2025
Sources: McKinsey, IDC and Software AG internal studies
© 2021 Software AG. All rights reserved. 13
Sustainable, profitable growth in sight
From here we accelerate
Helix in 2021
Same strategy
Five levers to pull
Maintain subscription paceCapitalize on opportunity
Accelerate culture change Embed winning behaviours
Focus Drive product innovation The bedrock of our success
Execution
Team
Enable productivity gainsBolster our margin ambitions
Build through M&ASupplement our platform
© 2021 Software AG. All rights reserved.
The digital fabric of a changing, connected world
14
Connected Customer Experience
Self-Service Solutions
Hybrid and Multi-Cloud
Already powering the first wave of change
© 2021 Software AG. All rights reserved.
The potential and pace of subscription
15
Create opportunity
Capitalize on Renewals
Engage through experts Customer success
Hunting not farming
CustomerLifecycle
Drive maximum adoption
Ever greater affinity with our customers
© 2021 Software AG. All rights reserved.
Purpose, people, productivity
16
Productivity
Culture & Engagement
Talent
Purpose
Enablement through tooling
Education & development
Efficiency and cost-control
Welcoming new colleagues
A motivated team with common goals
Tangible business impact affecting top and bottom line
The right people at all levels across Software AG
A shared sense of our value, contribution and ambition
Investing in our people Fostering innovation
Societal contribution
Connecting technology and people for a smarter tomorrow
© 2021 Software AG. All rights reserved. 17
A long-term lever to build upon our organic goals
M&A
Targeting GrowthTwo Investment Themes
Clear Criteria
Programmatic Approach
Reinforce the Core: bolster capabilities in existing markets, expand share of our existing TAM
Augment the Core: enter fast-growth adjacencies, increase the overall size of our TAM
• Small to mid-size growth companies• Subscription business models • Clear GTM and/or innovation fit
• PMI capabilities established•
© 2021 Software AG. All rights reserved.
Time to accelerate
Transforming with purpose
MOMENTUM
18
CONSISTENCY CONVICTION
18
19
CAPITAL MARKETS DAY 2021
Financial Transformation
Dr. Matthias HeidenChief Financial Officer
© 2021 Software AG. All rights reserved.
© 2021 Software AG. All rights reserved. 20
Session outline
Our growth foundation
KPI progress shows
accelerate
Accelerating towards our goals
Confidence indicators to show the way at top and bottom line
1 2 3Building understanding
Clarity on cash flow, reporting, and
capital allocation
© 2021 Software AG. All rights reserved. 21
Helix foundation and go-forward growth path
SUSTAINABLE PROFITABLE GROWTH
KPIs show progress
Subscription takes off
Digital Business grows
2020 momentum
Launching Helix
Establishing priorities: FET
Root & branch change
2019 foundation
Investing to capitalize
Growth continues
Margin troughs
2021 acceleration
New business builds
Renewals kick in
Margin expands
2023 ambition
Operating Margin25% - 30%
Group revenue
Digital business ~15% CAGR
Recurring revenue85% - 90%
© 2021 Software AG. All rights reserved. 22
Bookings growth driven by Digital Business
Group Bookings development by business line Subscription and SaaS within Digital Business bookings (%)
2019 2020 2021 2022 2023
A&N ( Digital Business (
2019 2020 2021 2022 2023
Subscription & SaaS (%) Perpetual (%)
Subscription & SaaS at 90%+ by 2023
51%
81%
21%*
Digital busines
bookings growth
* Growth rate at constant currency
20% 25%* Digital Business
bookings CAGR 2020 - 2023
© 2021 Software AG. All rights reserved. 23
Renewals impact accelerates from 2022
Group bookings development Subscription & SaaSrenewals impact
2019 2020 2021 2022 2023
New & cross-sell (%) Subscription & SaaS Renewals (%)
Key messages
New business:
Migrations: a foundation for future growth building within existing base.
Net new & expansions: driving growth with empowered GTM and sales
organisation.
Renewals:
15% in 2020, trending upwards.
3-year average renewal cycle.
Low single-digit positive net-churn assumption.
21%*
Digital busines
bookings growth
15%
85%96%
* Growth rate at constant currency
20% 25%* Digital Business
bookings CAGR 2020 - 2023
4%
2019 2020 2021 2022 2023
Perpetual (%) Subscription (%) SaaS (%)
© 2021 Software AG. All rights reserved. 24
Growing share of subscription and SaaS in bookings mix
Group bookings development by deployment model
10%
33%
57%
14%
56%
30%
Key messages
Increasing quality of Software AG revenue stream.
Subscription portion growing, SaaS remaining at similar levels.
Portion of 1-year contracts and 3-year contracts with annual
termination rights trending down over time.
Perpetual license and maintenance reducing, but not to zero.
* Growth rate at constant currency
Subscription & SaaS bookings CAGR 25% - 30%* 2020-2023
© 2021 Software AG. All rights reserved. 25
ARR is a confidence indicator of recurring revenue growth
2019 2020 2021 2022 2023
A&N ARR ( Digital Business ARR (
2019 2020 2021 2022 2023
Perpetual Maintenance (%) Subscription (%) SaaS (%)
Total ARR as at Respective Fiscal Year End Total ARR by deployment method
10% - 15%+* Digital Business ARR CAGR 2020 - 2023
Subscription & SaaS Total ARR
40% - 45%*
CAGR 2020 - 2023
11%*
Digital busines
ARR growth
* Growth rate at constant currency
5%12%
83%
7%
27%
66%
© 2021 Software AG. All rights reserved. 26
Recurring revenue already at 85% of total product revenue
2019 2020 2021 2022 2023Rec Rev A&N ( Rec Rev Digital Business ( Perpetual license (
76% 85%
Recurring revenue % of Total Product Revenue Recurring revenue by deployment mix
2019 2020 2021 2022 2023
Perpetual maintenance (%) Subscription (%) SaaS (%)
4%
17%
79%
* Growth rate at constant currency
6%
26%
68%
Subscription & SaaS Total Recurring Revenue 40% - 50%*
CAGR 2020 - 2023
15% - 20%* Digital Business Recurring Revenue CAGR 2020 - 2023
© 2021 Software AG. All rights reserved. 27
Product revenue growth accelerates after 20212020 → 2023 Product revenue development ( m)
+ 0% to + 5%*
2020 2021 2022 2023Perpetual New Renewal Annualized PY impact
Perpetual New Renewal Annualized PY impact
Perpetual New Renewal Annualized PY impact
+ 10% to +13%* growth annually
* Growth rate at constant currency
Perpetual revenue reduces over time
New business (migrations + expansions + new logos) impact grows
Renewals accelerate from 2022
Annualized revenue from prior year contracts grows
SaaS and Subscription revenues
Perpetual revenues
2021 investment to capitalize on transformation success
© 2021 Software AG. All rights reserved. 28
2021 investment commitment
Brought forward to capitalise on opportunity
GTMProduct Innovation & CloudPeople & Culture
Breakdown by priority areas (%)
GTM
Customer success & adoption
Product innovation & Cloud
IoT & Analytics and Integration & API
People & Culture
Engagement and productivity
© 2021 Software AG. All rights reserved. 29
Total cost CAGR of +4% to +6% 2021 - 2023
Key messages
Revenue growth trend improves from 2021.
Total cost growth peaks in 2021.
Productivity impact supports reinvestment at lower cost.
Key productivity areas: R&D efficiency, sales attainment,
streamlined processes, partner ecosystem.
10
15
20
25
30
35
40
45
50
0
200
400
600
800
1000
1200
2019 2020 2021 2022 2023
Total cost and total revenue development to 2023, showing productivity benefit
+4% to +6%* Cost growth CAGR 2021 - 2023
* Growth rate at constant currency
Total cost ( Total Revenue ( Operating margin (EBITA, non-IFRS) (%)
10
15
20
25
30
35
40
45
50
-100
100
300
500
700
900
1100
1300
2019 2020 2021 2022 2023 2024 2025
© 2021 Software AG. All rights reserved. 30
Revenue and margin hit targets by 2023
Key Messages
Total revenue development built on low single digit PS growth, with A&N solid and
digital driving growth.
Margin trough in 2021 owing to higher investment before
improving from 2022.
Future trajectory indicates continued growth, with ongoing transformation benefit in later
years.
Total revenue and margin through and beyond Helix
9% - 11%+* Total Revenue CAGR 2021 - 2023
890m
1b
Illustrative Future Path
29%
16% - 18%
25%+
Operating margin (EBITA, non-IFRS) (%)Digital Business Revenue ( A&N Revenue (PS Revenue (
* Growth rate at constant currency
834
© 2021 Software AG. All rights reserved. 31
Understanding cash flow
Key Messages
2020 cashflow impacted by the technical effect of Helix on
reported revenue.
Ongoing investment impacts profitability in 2021.
Cashflow grows in 2022 due to higher recurring revenue.
Acceleration thereafter as increased subscription revenue
results in higher backlog of cash flows.
2019 2020 2021 2022 2023
Impact of our transformation on free cash flow - illustrative
+30%* OP CF growth annually 2022 - 2023
* Growth rate at constant currency
Net Income ( Operational Cash flow (
32
Clear capital allocation framework
▪ Continuous commitment to regular dividend
▪ Share buyback authorization to be formally requested for renewal at 2021 AGM
© 2021 Software AG. All rights reserved.
▪ Flexible set of funding options: cash, RCF, other borrowing
▪ Best funding approach decided on a case-by-case basis
▪ Continue to build through Focus, Execution and Team pillars
▪ 2021 marks investment peak
▪ Priorities are Product, GTM, People & Culture
RETURN TO
SHAREHOLDERS
BUILD THROUGH
M&A
DRIVE ORGANIC GROWTH
© 2021 Software AG. All rights reserved. 33
Guidance, KPIs and reporting structure understanding
GUIDANCE & ASSUMPTIONS
REPORTING STRUCTURE
REPORTING ELEMENTS
Total Product Revenue guidance added for 2021
Assumptions: regular updates on factors influencing guidance
Digital Business & A&N: Focus on two reporting segments
Providing a revenue
Reflecting customer adoption practices
Adding detail and transparency
Deployment mix : showing subscription, SaaS & perpetual
Renewals: showing renewals within overall bookings
KPIsContinuing with key lead indicators
Bookings = showing sales success and growing market impact
SaaS & subscription portion of Digital Bookings = showing mix shift
ARR = showing increasing quality and predictability of revenue stream
© 2021 Software AG. All rights reserved.
Summary: driving toward our mid-term ambitions
Group Revenue~15% Digital Business
CAGR
34
25% - 30% Operating Margin (non-IRFS)
Renewals
Expansions
New logos
Partner success
Digital Business growth
ARR Growth
Top-line growth
Productivity gains
Lower incremental cost
Culture change driving our approach end-to-end
Capture CLV upside
Market positioning
GTM & CS investment
85% - 90% Recurring Revenue
© 2021 Software AG. All rights reserved. 35
CAPITAL MARKETS DAY 2021
Go-To-Market
Scott LittleHead of Global Sales
© 2021 Software AG. All rights reserved. 36
Harnessing our global growth platform
Session plan
Strategic areas of focus
Proactivity to address issues
Signficant Sales & GTM successes
Our existing customer-base
Our new business success
Our partner ecosystem
Foundation built 2019 2020
Investing in the right areas
Clear plan to deliver
1. PROGRESS REPORT 2. GROWTH LEVERS 3. KEY TAKEAWAYS
Helix Sales & GTM progress report
© 2021 Software AG. All rights reserved. 37
A transformed organisation executing with impact in the market
Subscription offering
81%Subscription & SaaS bookings as % of Digital Business total
Balanced global growth
10%+2020 bookings growth in NAM, DACH, EMEA
Sales model evolution
82%2020 % of new business in NAM Corporate Accounts total
Partner ecosystem build
+49%2020 A&C total bookings growth
Pipeline quality
20%2020 quote-to-cash improvement
Market impact
+11%2020 Digital Business ARR
© 2021 Software AG. All rights reserved. 38
Demonstrating market impact
Making our impact with competitive wins
Social Security Administration Major win with US Government
Competitive win8-figure deal
First class sales and PS experience
InjazatNew logo for Cumulocity
Competitive winNew logo
IoT-as-a-service
SiemensSignificant DACH expansion
Competitive winLong-term collaboration
Aris connect
Driving sustainable growth to 2023 and beyond
© 2021 Software AG. All rights reserved. 39
3 clear growth levers for the years ahead
NEW LOGOSWinning new logos & building
our pipeline
PARTNER GROWTHScaling through our channel
relationships
EXISTING BASEConversion, cross-sell,
renewals
© 2021 Software AG. All rights reserved. 40
Our adoption and success model
Customer lifecycle approach underpins growth plan
CustomerLifecycle
AE
PS/Partner
CSM
GS
RS
AESales
Adoption & SuccessCSM
Helix investments delivering returns
AEs pivot to up sell/cross sell
CSMs drive adoption and document value ahead of renewal
Using technology to drive CSM efficiency
Targeted PS credits to support adoption post implementation Legend
AE Account Executive
CSM Customer Success Manager
PS Professional Services
GS Global Support
RS Renewal Specialist
Capitalizing on cross-sell potential Driving subscription conversions
Driving growth within our existing customer base
© 2021 Software AG. All rights reserved. 41
Supporting our clients and driving customer adoptionEXISTING
BASE
EXISTING BASE
Finding opportunities
Engaging the right way
Converting successfully
Carrot for customers
Provide added-value
Align sales
incentives
Reward partners for incremental
Sales resource emphasis
TCS at WBA
Specialist resources
Use case examples
WM/API on Alfabet at CMS
Cultivate internal references
Leverage existing agreements
Sony
Include new value
Minimum uplift requirement
All regions exceeded uplift goal
New pricing/packaging
Hybrid path to Cloud
ATB
New Service Offerings
Ex. CSMs
Winning new logos
© 2021 Software AG. All rights reserved. 42
Our plan for accelerating new logo acquisitionNEW
LOGOS
BRAND AWARENESSRIGHT TARGETRIGHT PERSONA
RIGHT MESSAGE
ENABLEMENT & EFFICIENCYSTREAMLINEDSIMPLIFIED
FAST
PARTNERSINCREMENTAL CLOUD
OEMs
Digital marketingSEO & SEAEmphasis on NAM
Approvals & paperwork Repeatable sales playsAligned Targets
New partner programExpand field coverageDistribution in Mid Market
MORE QUALIFIED OPPORTUNITIES
THAT CLOSEFASTER
~45% WIN RATEvs INDUSTRY AVERAGE of 33%
INVESTMENT AREA
INVESTMENT AREA
INVESTMENT AREA
Drive incremental Sales
New partner program
Skills and tools
Grow the ecosystem
Build OEM Partners
AE Field engagement
Expand ISV ecosystem
NAM & EMEA leader
Shift to the Cloud
Expand field coverage
Continue MSFT momentum
AWS expansion
Building our partner ecosystem
© 2021 Software AG. All rights reserved. 43
Gaining scale and incremental growth opportunities from high-quality partnerships PARTNER
GROWTH
Our developing partner ecosystem 2021 Priorities
Drive incremental Bookings
Targeting +30% growth
Shift to the Cloud
Double partner bookings via Cloud Providers
Build OEM Partners
Onboard 15 new OEMpartners
© 2021 Software AG. All rights reserved. 44
The anatomy of one of our largest partner relationships
Partner deep-dive: Microsoft
16Deals in
2020
2
~70 deals in 2021
pipeline
PARTNER
GROWTH
Multi-million USD contract
Competitive win & new logo
End-to-end digital process
50% faster sales-cycle
Joint effort to modernize patient care
solution
Multi-million USD contract
Extends a 20+ year partnership
Using webMethods for digital transformation
Integrating diverse systems
Accelerating Azure migration
Landmark wins in IoT & Integration
Major Medical Device Manufacturer
Summary and key takeaways
© 2021 Software AG. All rights reserved. 45
Clear plan to reach our goals
1. RESILIENT FOUNDATION BUILT THROUGH HELIX
2. INVESTING IN LEVERS TO DELIVER GROWTH
3. PLAN IN PLACE FOR ACCELERATION TO 2023
Investment delivering returns
Delivering market impact
Launchpad for future growth
Customer success & renewals
New Logo acquisition
Partner ecosystem
New business inside and out
Drive net churn through investment in adoption & customer success
Deliver incremental impact from A&C
© 2021 Software AG. All rights reserved. 46
CAPITAL MARKETS DAY 2021
People & Culture
Dr. Elke FrankChief Human Resources Officer
47
Session outline
Culture
Transforming our culture
Talents
Winning the war of talents
Employee Engagement & Productivity
An engaged and productive workforce
Talent Culture Productivity
Strengthened by our purpose
© 2021 Software AG. All rights reserved.
48
Investing in talents pays off
Talent
© 2021 Software AG. All rights reserved.
Suraj Kumar,
General Manager
Integration & API,
Reston
Alwin Schauer,
SVP Sales DACH,
Munich
Daisy Santosa,
COO APJ,
Singapore
Dr. Astrid Kasper,
SVP Global Corporate
Communications,
Darmstadt
Leadership Learning Journey Attracting the best talent, for e.g
300leaders
175.00028% Learning hours in total
© 2021 Software AG. All rights reserved.
49
Our purpose is now more relevant than ever
Culture
We connect technology and people for a smarter tomorrow
© 2021 Software AG. All rights reserved. © 2021 Software AG. All rights reserved.
Employee Engagement & Productivity
50 © 2021 Software AG. All rights reserved.
Software AG Q12 Engagement Score*
2020: 3.92 (+0.29)
Regrettable attrition reduced
2020: 10.1 % (-1.5%)
k 25 in 2019)
• ).
85%of our employees are open to new ways of working
We cannot wait for the new way of working
© 2021 Software AG. All rights reserved. 51
© 2021 Software AG. All rights reserved. 52
CAPITAL MARKETS DAY 2021
Technology Vision
Bernd GrossChief Technology Officer
Our Moonshot $10 Trillion
Digital Dividend, World Economic
Forum
Connected Customer Experience
Ecosystem Driven Economy
$28BTAM 2024
$100B2030
© 2021 Software AG. All rights reserved. 53
Our Moonshot $10 Trillion
Digital Dividend, World Economic
Forum
Connected Customer Experience
Ecosystem Driven Economy
$26BAdjacent
$10BAdjacent
$28BTAM 2024
Integration & API Tech $100B
2030
© 2021 Software AG. All rights reserved. 54
Our Moonshot $10 Trillion
Digital Dividend, World Economic
Forum
Connected Customer Experience
Ecosystem Driven Economy
$26BAdjacent
$10BAdjacent
$28BTAM 2024
Integration & API Tech $100B
2030
© 2021 Software AG. All rights reserved. 55
Our Moonshot $10 Trillion
Digital Dividend, World Economic
Forum
Connected Customer Experience
Ecosystem Driven Economy
$26BAdjacent
$10BAdjacent
$28BTAM 2024
Integration & API Tech $100B
2030
© 2021 Software AG. All rights reserved. 56
Our Moonshot $10 Trillion
Digital Dividend, World Economic
Forum
Connected Customer Experience
Ecosystem Driven Economy
$26BAdjacent
$10BAdjacent
$28BTAM 2024
Integration & API Tech $100B
2030
© 2021 Software AG. All rights reserved. 57
Connected Customer Experience
The best CX has no UX!Execute tasks behind the scenes, be proactive and anticipate individual needs
Business Process
IT Portfolio Management
Hybrid Integration
Internet of Things
Industrial Analytics
API Management
Mainframe Evolution
64%consumers expectreal-time interactions with businesses
6%CMOs align experiences across physical and digital touchpoints
Only 9.8bn
IoT & analytics spend (2024) growing at 26% CAGR
$
© 2021 Software AG. All rights reserved. 58
Digital Business Excellence
Hyperautomation is essential
Data as a Service across enterprises and ecosystems drives innovation, automation and monetization
60%high value projects require data collaboration across digital and IT teams
4.9bn
Business Transformation spend (2024) growing at 10% CAGR
$3xgrowth rate ofIoT DaaS (Data-as-a-Service) compared to non-IoT DaaS
Over
Business Process
IT Portfolio Management
Hybrid Integration
Internet of Things
Industrial Analytics
API Management
Mainframe Evolution
© 2021 Software AG. All rights reserved. 59
Ecosystem Driven Economy
From product to platform
Modern enterprises are turning into platforms firms. Platforms are API First. The nature of enterprise software is changing with them to fit the model.
Business Process
IT Portfolio Management
Hybrid Integration
Internet of Things
Industrial Analytics
API Management
Mainframe Evolution
13xmore frequent useof ecosystem in annual reports thana decade ago
60bnVC funding in digital platforms and ecosystems(2019)
$ 13.5bn
Integration & API spend (2024) growing at 10% CAGR
$
© 2021 Software AG. All rights reserved. 60
Harvest the wind of changeThe next big wave of disruption is going to happen in the enterprise space with the
potential to reshape the entire backbone of our economy.
© 2021 Software AG. All rights reserved. 61
© 2021 Software AG. All rights reserved. 62
CAPITAL MARKETS DAY 2021
Product Innovation
Dr. Stefan SiggChief Product Officer
© 2021 Software AG. All rights reserved.
Being relevant.Being mission critical.Being innovative.
TURNING DATA INTO
DELIVERY EXCELLENCE
© 2021 Software AG. All rights reserved. 63
© 2021 Software AG. All rights reserved. 64
THE TRULY CONNECTED ENTERPRISEOUR CUSTOMERS ARE LEADERS IN FIGHTING COVID-19
© 2021 Software AG. All rights reserved. 65 COVID RESPONSE TEAM
POWERED BY
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Process
Order
COVID
Response Team
Shipping
Vaccine
Logistic & Delivery
Create Order
Pharmacy
Hospital
Local Government
Manufacture
Vaccine
Vaccine
Manufacturer
© 2021 Software AG. All rights reserved. 66
POWERED BY webMethods.io B2B and API ManagementCOVID RESPONSE TEAM
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Create Order
Pharmacy
Hospital
Local Government
Process
Order
COVID
Response Team
Shipping
Vaccine
Logistic & Delivery
Manufacture
Vaccine
Vaccine
Manufacturer
© 2021 Software AG. All rights reserved. 68 COVID RESPONSE TEAM
POWERED BY webMethods.io Integration
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Process
Order
COVID
Response Team
Shipping
Vaccine
Logistic & Delivery
Manufacture
Vaccine
Vaccine
Manufacturer
Create Order
Pharmacy
Hospital
Local Government
Vaccine order processing via iPaaS
© 2021 Software AG. All rights reserved. 69
Workflow triggered by EDI order submission
VaccineManufacturer 1
Availability Check
VaccineManufacturer 2
Availability Check
VaccineManufacturer 3
Availability Check
Submission ID Submit EDIRequest
Confirmation
EmailNotification
© 2021 Software AG. All rights reserved. 70 COVID RESPONSE TEAM
POWERED BY TrendMiner
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Manufacture
Vaccine
Vaccine
Manufacturer
Process
Order
COVID
Response Team
Create Order
Pharmacy
Hospital
Local Government
Shipping
Vaccine
Logistic & Delivery
Predictive Quality Management with time-series analysis with TrendMiner
Vaccine Production Analytics
© 2021 Software AG. All rights reserved. 71
© 2021 Software AG. All rights reserved. 72 COVID RESPONSE TEAM
POWERED BY Cumulocity IoT and webMethods.io Integration
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Shipping
Vaccine
Logistic & Delivery
Process
Order
COVID
Response Team
Create Order
Pharmacy
Hospital
Local Government
Manufacture
Vaccine
Vaccine
Manufacturer
© 2021 Software AG. All rights reserved. 73
Vaccine shipment monitoring & trackingEnsuring safety & quality while shipping
COVID RESPONSE TEAM
© 2021 Software AG. All rights reserved. 74 COVID RESPONSE TEAM
POWERED BY ARIS Process Mining
THE TRULY CONNECTED ENTERPRISECONNECTED CUSTOMER EXPERIENCE
Process
Order
COVID
Response Team
Shipping
Vaccine
Logistic & Delivery
Create Order
Pharmacy
Hospital
Local Government
Manufacture
Vaccine
Vaccine
Manufacturer
© 2021 Software AG. All rights reserved. 75
End-to-End Process MiningIdentifying bottlenecks and improving the end-to-end business processes
COVID RESPONSE TEAM
TURNING DATA INTO
SUSTAINABILITY© 2021 Software AG. All rights reserved. 76
Innovation Highlights &Customer Stories
© 2021 Software AG. All rights reserved.
webMethods.io Innovation Highlights
API Management, Integration & Microservices
Hybrid / Multi-Cloud Integration
Compelling onboarding & deployment
• Fast adoption• Land & expand• Department scale• New B2B• Embed
Application Mesh
Microservices Innovation
• Manage container clusters
• Fill semantic gap between servicemesh and apps
Connector Framework
Scale with 3rd
party toolkit
• Outsource connector development
• Strengthen ecosystem
API Federation
Embracedistributedlandscapes
• Portal / gateway interplay
• Cloud / on-prem deployment
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73 new logos & expansions 16% bookings growth YoY NPS up by 11
TRANSFORMING INTO
A CONNECTION PLATFORM © 2020 Software AG. All rights reserved. For internal use only and for Software AG Partners.78 © 2021 Software AG. All rights reserved. 78
© 2021 Software AG. All rights reserved.
ARIS & Alfabet Innovation Highlights
Business Transformation
ARIS Cloud
User & deployment experience
• Best free trial• Fast adoption
• Land & expand• Department scale
ARIS Process Mining
End-to-end SaaS offering
• Conformance analysis
• Plug & play data connect
• Self-service UI• Leverage production &
supply chain data
ALFABET Cloud
AI-accelerated Strategic PortfolioManagement
• Improved data quality
• IT processautomation
ALFABET Cloud
Smart content syndication
• Integration with Enterprise Collaboration suites(e.g. MS Teams)
79
147 new logos & expansions 26% bookings growth YoY NPS up by 17
80 |
Announcing
SOFTWARE AG &AUTOMATION ANYWHEREaligning strong forces to drive intelligent hyper-automation. From process modeling, to process mining, to conformance analysis, to RPA.
© 2020 Software AG. All rights reserved. For internal use only and for Software AG Partners.80 © 2021 Software AG. All rights reserved.
© 2021 Software AG. All rights reserved.
A&N Innovation Highlights
Adabas & Natural
Security &Encryption
Protecting Adabas data against access by unauthorized agents.Apply industry leading security whilemaintainingperformance
Containerization
Containers are the key to making applications available via the internet in on-premises, public, private and hybrid environments.
CloudMigration
Running enterpriseA&N applications in the cloud. Innovate faster, scale with demand and deliver better performancewhile maintaining the intellectual capital
81
7 new logos & expansions 33% bookings growth YoY NPS up by 16
© 2021 Software AG. All rights reserved.
Cumulocity and TrendMiner Innovation Highlights
IoT & Analytics
IoT Solution Enablement
Accelerated applicationbuilding
• Pre-defined dashboards
• Microservices framework
• Open APIs
IoT Thin Edge Offering
Lightweight connectivity and analytics
• On small factory gateways
• 5G enablement• Deeper shopfloor
integration
IoT Data Hub for Big Data
Cost-effective storage and analytics
• Based on Cloud Data Lakes
• Machine Learning workbench
• Open for any BI
Industry Analytics
TrendMinerself-service analytics
• New onboarding experience
• Integration of webMethods.io for context data
• AI root cause analysis
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82 new logos & expansions 44% bookings growth YoY NPS up by 33
ANNOUNCING
SOFTWARE AG & SAP SEOFFERING TIME-SERIES ANALYTICS FOR DIGITAL SUPPLY CHAIN MANAGEMENT TO PREDICT AND
IMPROVE PRODUCT QUALITY © 2020 Software AG. All rights reserved. For internal use only and for Software AG Partners.83 © 2021 Software AG. All rights reserved. 83
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