Pegasystems Inc.
Craig Dynes, CFO
May 2012
© 2012 Pegasystems Inc.
Certain statements contained in this presentation may be construed as “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “hope,” “anticipate,” “plan” and similar
expressions identify forward-looking statements, which speak only as of the date the statement was made. The
company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. These statements are based on
current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's
actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include
volatility of our quarterly operating results, difficulty in predicting the completion of product acceptance and
consequently the timing of our license revenue recognition, the level of term software license renewals, our ability to
develop new products and evolve existing ones, the impact on our business of the ongoing consolidation in the
financial services and healthcare markets, our ability to attract and retain key employees, reliance on certain key third-
party relationships, management of the Company’s growth, and other risks and uncertainties. Further information
regarding these and other factors which could cause the Company’s actual results to differ materially from any
forward-looking statements contained in this presentation is contained in the Company’s most recent form 10-K and
other recent filings on file with the Securities and Exchange Commission. Investors are cautioned not to place undue
reliance on such forward-looking statements and there are no assurances that the matters contained in such
statements will be achieved.
Safe Harbor
© 2012, Confidential, Pegasystems Inc. 3 3
© 2012 Pegasystems Inc.
6 year Revenue CAGR of 27%
Pegasystems Annual Revenue
© 2012 Pegasystems Inc.
Pegasystems
With its unified platform, Pegasystems software is the fastest
way to build, deploy and change enterprise software
applications.
These applications manage complex, changing business
processes – processes like loan loss mitigation, customer
service call centers, patient care management and risk, fraud
and compliance.
© 2012 Pegasystems Inc.
Customers use our Software to Solve lots of
Business Problems Financial Services
• Service Case Management Loan
Loss Mitigation
• Pre-Foreclosure
• Retail Account On-Boarding
• Commercial On-Boarding
• CRM for Banking
Insurance
• New business and underwriting
• Policy service
• Contract administration
• Claims processing
• Risk, fraud and compliance
Healthcare
• Care management
• Healthcare industry foundation
• Sales Process Management
• ICD-10
• Medicare/Medicaid
Communications
• Communications Foundation
• Customer Retention
• Order Management
• Service Case Management
• Unified Desktop
Life Sciences
• Life Sciences Industry Foundation
• CPM for Life Sciences
• Spend Management for Life Sciences
• Optimized Grants Management
• Adverse Event Case Processing
Electronics
• Warranty Management
• New Business
• Intelligent Automation
• Customer Relationship
Management
• Risk, Fraud and Compliance
Energy
• Oil and Gas Integrated Production
• Oil and Gas Integrated Asset
Planning
• Collections Solution for Utilities
• CRM for Utilities
Travel/ Hospitality
• New Business
• Intelligent Automation
• CRM
• Risk, Fraud and Compliance
Public Sector
• Citizen Benefit Delivery
• Eligibility Determination and
Enrollment
• Constituent Relationship
Management
• Intelligent Automation
• Risk, Fraud and Compliance
Manufacturing
• Warranty Management
• New Business
• Intelligent Automation
• Customer Relationship
Management
• Risk, Fraud and Compliance
Retail
• Warranty Management
• New Business
• Intelligent Automation
• Customer Relationship
Management
• Risk, Fraud and Compliance
BPO
• Smart Multi-Sourcing
• Real-Time Lean Multi-Sourcing
• Warranty Management
© 2012 Pegasystems Inc.
The Pega Advantage
© 2012 Pegasystems Inc.
What’s the Pega Advantage
It’s completely unified
It’s faster to market than anything else in the industry
It gets work done
© 2012 Pegasystems Inc.
Cloud
Integration
Reporting
Process and Rules
Predictive Analytics
Mobile
Case Management
If you want to build a solution, you’ll need:
Process and Rules
Predictive Analytics
Mobile
Case Management
Cloud
Integration
Reporting
© 2012 Pegasystems Inc.
Everything you need in one unified platform for
development and …
Collaboration
Processes
Reporting
Ad Hoc Tasks
Rules and Policies
Mobile
Multi-channel
Case Management
Predictive Analytics
Integration
PRPC: The Only Unified Platform
For Developing Business
Applications
Social
© 2012 Pegasystems Inc.
PRPC:
The Only Unified Platform
For Deploying Business
Applications Back Office
Front Office
Web
Mobile
Facebook/Social
Everything you need in one unified platform for
development and … Deployment!
Cloud
© 2012 Pegasystems Inc.
Predictive analytics – baked into the platform
© 2012 Pegasystems Inc.
? ?
?
Specialized Processes
Enterprise-Wide Standards
Pega BPM & Frameworks
Geography Product Customer
Europe
Central EU
Germany
Credit
Auto
Direct
Gold
Specialize by jurisdiction, product, and customer
© 2012 Pegasystems Inc.
A simple change is not always so simple . . .
Name
Address
City, State, Zip
Email Address
Customer Information
Twitter ID
© 2012 Pegasystems Inc.
Name
Address
City, State, Zip
Email Address
Customer Information
Twitter ID
Code a new data element in the
rules engine
Code a new data element in the
workflow engine
Code a new data element in the
CRM system
Code a new data element into the
case management system
Add a new column to database
tables for each application in the
suite
Rewrite each applications
persistence logic to incorporate the
new data element
Recode signature at each
integration point between
applications in the suite
Make new data element available
to reporting engine
Find screen definition (or “coach”
or JSP) for the field and add field to
the screen
If field needs to appear in multiple
screens, need to manually re-add,
since there is no reuse of sections
Manually retest the screens for
vulnerabilities
Compile and export the rules
engine components
Compile and export the workflow
components
Compile and export the CRM
system components
Compile and export the case
management components
Compile and export any external
integration code.
Perform end to end
regression testing
Deploy the rules engine
components
Deploy the workflow components
Deploy the CRM components
Deploy the case management
components
Smoke test the production
deployment
Estimated time to complete: 16 days
Make Text scroll up
If you’re using our competitor’s products
© 2012 Pegasystems Inc.
But if you’re using PRPC
Name
Address
City, State, Zip
Email Address
Customer Information
Twitter ID
Add a property
Drag property onto a section
Type a label
Estimated time to complete: 2 minutes
© 2012 Pegasystems Inc.
Faster to Market than Anything Else in the Industry
Faster to learn
Faster to develop
Faster to deploy
Faster to change
© 2012 Pegasystems Inc.
Faster to learn – even in your pajamas
© 2012 Pegasystems Inc.
Faster to Build and Change Directly Capture Objectives without Spec Documents and Hand Coding
Automatic code generation!
No Hand
Coding
from
Specs
© 2012 Pegasystems Inc.
Faster to Build and Change Case Management
© 2012 Pegasystems Inc.
Faster to Build and Change UI Events and Gallery
© 2012 Pegasystems Inc.
Faster to Build and Change Guardrails to Keep on Track
© 2012 Pegasystems Inc.
Faster to Build and Change Vertical and Functional Frameworks
New Business Backbone for
FS
Card CPM
Smart Dispute
Smart Investigate
for Payments
Smart Adjust
Financial Accounting
Financial Crimes
Management Borrower
Assist
CPM for Insurance
New Business Backbone for
Insurance
Claims Servicing Backbone
Care Management
Claims Repair
Claims Workstation+
CPM for Healthcare
Sales Process Manager
Insurance Foundation
Financial Services
Foundation
Product Configuration
Healthcare Foundation
Customer Process
Manager Project
Management
Internet Application Composer
Automated Unit Testing
Test Management
Autonomic Event
Services
VERTICAL FRAMEWORKS
Integrated Work
Manager
FOUNDATION FRAMEWORKS
PLATFORM FRAMEWORKS
PRPC
Smart Investigate for
Securities
© 2012 Pegasystems Inc.
Faster to deploy Optionally Develop, Test or Deploy on the Cloud
© 2012 Pegasystems Inc.
How fast? 63 Days from Inception to Go Live!
© 2012 Pegasystems Inc.
Automate, guide and track with the Leading Case
Management and BPM Technology
Automate Guide Track
Straight Through Processing
Whenever
Possible
Intent Driven UI Unstructured
And
Ad Hoc Tasks
© 2012 Pegasystems Inc.
Collaborate on Work using social tools
© 2012 Pegasystems Inc.
It Gets Work Done
Automates work
What you can’t automate you guide; what you can’t
guide you track.
Supports collaboration via social tools and Mobile
devices
© 2012 Pegasystems Inc.
The Power of PRPC
It’s Unified
It’s faster to market than anything else
It gets work done
© 2012 Pegasystems Inc.
Transforming Air Travel
© 2012 Pegasystems Inc.
Global deployment for 29 request types
in less than 8 months
Transparency of operation process and
real time visibility of work
Ensures onboarding requests are in line
with business strategy & appropriately
prioritized
Global process enables off-shoring and
cross-training
Reduced operational risk by supporting
an audited process.
Transforming Commercial Banking
Benefits
“This has been one of the most ambitious projects undertaken at HSBC. Its
success has been due to the ability of IT and the business to work together on the
development from day one.” - Guy Coles, Global Head of COBAM.
© 2012 Pegasystems Inc.
Benefits Reductions in Average Handle Time (AHT)
- 15% clinical; 12.5% non-clinical
Eliminated misrouted work from Facets
50% daily work reduction for downstream
claims departments
30 associates redeployed
50% reduction in new associate ramp-up
Stronger IT / Business collaboration
Improved customer satisfaction – providers
& beneficiaries
“We’re proud of what we’ve accomplished with Pega. It’s been
transformational for us.”
Russell Esposito, Amerigroup
Transforming Medicaid
© 2012 Pegasystems Inc.
Transforming Communications
3 month deployment for:
Automation of Line Ordering Process
Automated Order Validation and Product
Availability Check
Transparent Supplier SLA Monitoring and active
escalation
Reporting functionality
Significant improvement in agility
High degree of automation and significant reduction in operating cost per order
Benefits
“ Next best action marketing is very powerful because you can use it across
channels, you can implement it fairly quickly, and you can achieve very
successful conversion rates. The rates we are seeing across operating countries
are double digit net conversion rates.”
Chretièn Brandsma, Vodafone
© 2012 Pegasystems Inc.
Benefits Provides 2x functionality of six previous clinical
legacy platforms; delivered in half the time
Robust personal health record with input
from 45,000 devices communicating daily
including labs & in-home biometric equipment
Improved health outcomes via real-time
healthcare coordination & participant portal personalization
75% improvement in time to market for custom programs; 5x
faster participant enrollment; 50% cost reduction
20MM participants (RNs, MDs, Health Coaches & Plans);
100MM monthly transactions
“Through leveraging Pega’s robust rules engine we are able to
provide customized clinical advice & assessment. This allows us to
respond to customers & medical innovations quickly, giving Alere a
clear competitive advantage around speed & innovation.”
Ed Smith, Alere
Transforming Personal Health Care
© 2012 Pegasystems Inc.
Transforming Retail Banking
Deposits doubled - with no additional
marketing
New accounts increased over 400%
75% of accounts were new
relationships
Redeployed 60% of back-office
resources
Deployed in 8 months
Benefits
“Our new Sales Application Center has enabled us to simplify the account
opening process and grow new accounts in the online channel by over 400
percent.”
Chris Casperson, SunTrust
© 2012 Pegasystems Inc.
Transforming Insurance Key Business Results: Average Call Time reduced by 20 %
CSR Training time reduced from two weeks to
one day
Quality Scores improved by 6%
Customer Service intimacy through “intent-led”
processing
Enhanced Customer Experience
Fan mail for the system
Most Recognized Application of
2011 - Celent Model Insurer of the Year
- INNovators Award (Insurance Networking
News)
- WfMC Gold Award for North America
- WfMC Silver Award for North America
- Gartner Research BPM Application of the
Year - Finalist
- Innovation Solution Award (Information
Management Magazine)
© 2012 Pegasystems Inc.
Not a Typical Enterprise Software Company
Purpose based licenses; $500 to $1 million Solve specific business problems for business people, not IT
Perpetual licenses with ongoing maintenance
Term licenses with 3 – 5 year non-cancellable terms
© 2012 Pegasystems Inc.
Pegasystems Future License Payments
Term License Payments
Installment payments for non-cancellable
term licenses not recorded on the
balance sheet as of March 30, 2012:
2012 25.9
2013 38.3
2014 35.1
2015 30.3
2016 and beyond 24.6
Total $ 154.2
Perpetual and Subscription License
Payments
Installment payments for non-cancellable
perpetual and subscription licenses not
recorded on the balance sheet as of
March 30, 2012:
2012 21.5
2013 10.4
2014 7.6
2015 7.3
2016 and beyond 9.5
Total $ 56.3
© 2012 Pegasystems Inc.
Global Strategic Alliance Tiers and Partners
© 2012 Pegasystems Inc.
“BPM” is just part of the market
BPM for
Case Management
$18b
BPM for
CRM
$6b BPM
$ 2b
© 2012 Pegasystems Inc.
Only Pegasystems is Ranked #1 by Both
Gartner and Forrester for BPMS
© 2012 Pegasystems Inc.
Pegasystems #1 in Case Management
The Forrester Wave™: Dynamic Case Management, Q1, 2011
© 2012 Pegasystems Inc.
…and is a recognized leader in CRM
© 2012 Pegasystems Inc.
Empowering Our Customers to Build for Change®
© 2012 Pegasystems Inc.
Pegasystems Inc.
101 Main Street, Cambridge, MA 02142
617-374-9600
www.pega.com