Introduction to Sage

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What Sage does

Sage is a leading supplier of business management software and services to 5.8 million customers worldwide. From small start-ups to larger organizations, we make it easier for companies to manage their business processes

Our vision is to be the most admired and respected business software and services provider in the world

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Key facts about our organization

Market Finances Customers

Global company with over 14,500 employees

Revenue of $2.55B

for FY2008

Provide advice to customers through 1.7 million support

contracts

5.8 million customers worldwide

Market capitalization of approximately $4.3 billion

Manage around 40,000 customer calls each day

One of the market leaders in the UK, North America,

Europe, South Africa and Asia

Made over 40 acquisitions since 1991

Work with over 27,000 reseller partners and over

40,000 accountantsworldwide

All revenues retranslated based on average exchange rates for the year ending September 30, 2008 at 1.97 U.S dollars per GBP.

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Our strategy

Long term goals Strategy

Be a key leader in all markets of the world

Supply business management software and

services that help our customers run their

businesses more efficiently

Develop products and services which are the

most compelling fit with a customer’s country

and industry

Maintain high levels of quality service support

that feed back into the product and services

development cycle

Have the most trusted brandsPosition our brands to meet our customers’

requirements

Have the most satisfied and active customers

in our industry

Focus on product innovation and

value-added services to meet the changing

needs of our customers

Experience superior organic revenue growth

versus our peer group

Develop the products and services that meet

the changing needs of our customers

Be recognized as one of the most admired

employers

Build organizational capability to drive

business performance

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How we work

Our business is guided by our five principles

which shape everything we do and how we do it

Simplicity Agility Innovation Trust Integrity

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History of Sage

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1981Sage founded in Newcastle-upon-Tyne

1984Paul Walker, current CEO, joins Sage as 7th employee

1989Listed on the London Stock Exchange

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History of Sage

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1991Entered the US market

1992Entered the French market

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History of Sage

1981

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2000 Reached 2 million customers worldwide

1999Entered the Portuguese and Swiss markets

1997Entered the German market

1999Became part of FTSE 100

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History of Sage

1981

1982

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2004Entered the Indian market

2003Entered 7 new markets

2005Entered the Polish market

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History of Sage

1981

1982

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1984

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1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

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2007Surpassed 5 million

customers worldwide

2006Entered the

Chinese market

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We group ourselves into four businesses

UK and Ireland Mainland Europe North America Rest of World

One of the market leaders in UK and Ireland

One of the market leaders in France, Spain, Switzerland and Poland,

Strong presence in small business and one of the leaders in key verticals

One of the market leaders in South Africa, Australia and Malaysia

Over 2,500 employees Over 5,600 employees Over 4,700 employees Over 1,700 employees

Over 750,000 customers Over 1.6M customers Over 2.9M customers Over 500,000 customers

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Which all operate under the guidance of our executive team

Paul Walker Paul Harrison David Clayton Michael Robinson Karen Geary

Group Chief

Executive

Group Finance

Director

Strategy, M&A Director Legal Director,

Company secretary

HR &

Communications

Director

Klaus-Michael Vogelberg Sue Swenson Guy Berruyer Paul Stobart Ivan Epstein

Group CTO CEO, North

America

CEO, Mainland Europe

& Asia

CEO, UK &

Ireland

CEO, South Africa

& Australia

What we offer

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What we offer

To what kindsof businesses?

How do wecompare?

What dowe supply?

What we supply in North America:Business management solutions

Accounting & Financial ManagementPeachtree by SageSage AccpacSage BusinessVisionSage BusinessWorksSage ERP X3Sage FAS Fixed AssetsSage MAS 90 and 200Sage MAS 500Sage PFWSage ProSimply Accounting by Sage

Human Resource Management & PayrollSage Abra HRMSSage Carpe DiemSage TimeSheetTimeslips by Sage

Vertical Solutions –HealthcareSage HealthPro XLSage IntergySage Medical ManagerSage MedWare

Payment SolutionsSage Card ProcessingSage Electronic Check ProcessingSage Gift Card

Vertical Solutions –NonprofitSage FundraisingSage MIP Fund AccountingMillennium

Customer ManagementACT! by SageSageCRMSageCRM.comSage SalesLogix

Vertical Solutions – Construction & Real EstateSage MasterBuilderSage Timberline Office

Integrated SMB Market Offerings

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What are business management solutions?

CustomersImprove serviceMeet their needsBuild loyaltyMultiple payment optionsMultiple channels

OperationsManufacturingDistributionServicing

PeoplePay correctly & on timeRecord sickness & absenceFile legal documentsManage performanceDevelop potential

SuppliersGet what you need on timeManage costs

FinancesManage debtors & creditorsManage cash flowImprove revenue and profitForecasting & planningElectronic payment processing

AdvisorsFile accounts Statutory reportingForecasting & business planningAdvice & help from Sage

Software and services that help SMBs manage their business processes and relationships.

Yourbusiness

Customers

People

Fina

nces

Operations

Suppliers

Advi

sors

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How does our business split across these areas?

Although our business began as a provider of accounting software only, we have expanded our offerings and accounting solutions now represent 55% of our total turnover.

Accounting$1,405M*

Payment Processing$104M*

HR &Payroll$286M*

CRM$136M*

Industry-specific$621M*

* All revenues retranslated based on average exchange rates for the year ending September 30, 2008 at 1.97 U.S dollars per GBP.

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We offer a range of local industry specific and specialized solutions

UK & IrelandMainland Europe

North America Rest of World

Healthcare

HR & Payroll

Construction/ Real Estate

Transport/ Distribution

Payment Processing

Accountancy

Not-for-profit

Manufacturing

Retail

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To what kind of businesses?

Upper mid-market8.6% growth

6% of Sage’s customer base

Lower mid-market7.7% growth

10% of Sage’s customer base

Entry-Level6.4% growth

0 E

MP

LOY

EE

S

25

5

00

5,0

00

Enterprise(2.3)% growth

84% of Sage’s customer base

CAGR 2007-2012*

Source: *Gartner, SMB ERP software Europe and North America, 2008 Gartner ERP software worldwide

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How do we measure up to our competitors?

Business management solutions providers

In the small business market* Sage is regarded as a clear market leader

Oracle17%

SAP32%

Sage5%

Others39%

Microsoft3%

Infor4%

Microsoft12%

Sage21%

Oracle9%

Others49%

SAP3%

Intuit6%

Source: AMR, Global Enterprise Application Market Sizing Report, July 2009

Source: *IDC, October 2006, Worldwide ERP applications 2005 vendor shares, based on ERP revenue small business; <500 employees

What setsus apart?

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What sets us apart?

Local focus

Customer experience

Trusted brand

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Sage’s decentralized model provides local focus, with the support of global scale

Local focus

Empowered local management teams can respond quickly to local competitive and market changes

Products and services are developed locally to meet unique fiscal, legal and regulatory environments (not “globalized”)

Time to market for innovation in products, services and the business model is substantially reduced

Global scale

Successful innovations are shared quickly between Sage businesses

Global technologies can be shared between local markets

Sage can easily take advantage of lowest cost producer markets

Sage’s global brand and presence makes it a key business partner

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Our global reachCombined with our developers and business partners Sage has strong global presence

Direct presence Distribution

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How do we reach our customers?

Reflect our understanding of the SME market place

Ensure we are accessible and easy to do business with

Complexity of solution dictates which channel is most relevant

Global network of 27,000 business partners extend the Sage ecosystem and provide additional:

– Implementation and customisation– Training and support– Specialist sector knowledge

Sage’s network of 40,000 accountants and small business advisors play an important role as recommenders and resellers of Sage products

Routes to market

Retail Stores •Business

•Partners

Partn

ersh

ips

Eg: B

anki

ng

Accountants

internet

Dire

ct

Strong and diverse routes to market tailored to match customer needs:

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The customer experience

We stand apart through:

The breadth and depth of our offering

The flexibility of our solutions

Superior support delivered locally by experts who advise customers on technical matters and critical business issues relevant to their market

Providing services of the highest standard from the best people

We aim to:

Exceed expectations

Deliver extraordinary customer experiences

Enable our customers to be truly successful

By being local, by building long-term powerful relationships with customers we can deliver outstanding service which we believe is unmatched in our industry

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Bringing the customer experience to lifeWe listen to and involve our customers

Developing products that are easy to use

Customer surveys are built into products

Local support in every country offers technical product advice and guidance on business critical topics

User centered design labs, online customer communities, events, focus groups and more to seek feedback and customer insight

1.7 million support contracts, 81% renewal rate, 40,000 calls a day

We are recognised for our products & services

Winner in Best contact centre at World Contact Centre Awards in North America

Winner of the Golden Customer Relation Centre award in Spain

Business Software Supplier of the Year, UK

Our emphasis on support is reinforced by the resources we put behind it. Across the Sage business more than 40% of our people work in technical support, customer service or customer training roles

Thank you