software ag live/media/files/s/software-ag-ir/... · 28/08/2013 · big-data and in-memory...

©2013 Software AG. All rights reserved.

Arnd Zinnhardt

CFO

Commerzbank 2013 Sector Conference

August 28, 2013


2 |

This presentation contains forward-looking statements based on 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.

Safe-Harbor-Statement


3 |

Software AG - At a Glance

High performance database

Process Planning,

monitoring and analysis

Middleware to integrate data applications and

digital workflows

Big-data and In-memory technology

~ € 1bn revenue (FY)

~ 24% EBITDA margin (H1 2013)

~ 55% equity ratio (H1 2013)

~ 16% free cash flow margin (H1 2013)

~ 5,400 Employees worldwide

€ 2bn market cap

66% free float

29% Software AG Foundation

70 Countries

Global customer base: 80% of Fortune 10,000

Technology leader in systems integration,

process automation and data management


4 |

Financial Sector

Public Sector

IT

Associ-ations

Services

Manu-facturing

Telcos

Logistics Retail

Other

*Based on product revenue FY 2012

Revenue Split – Well Balanced

20%

20%

EMEA

44%

Asia Pacific

8% Americas

48%

GER 15%

PIIGS < 4%

Product Revenue by Region* Product Revenue by Industry*


5 |

Large Enterprise Customers in 70 Countries

Finance Public Sector Telecom Chemicals/Pharma Energy/Utilities

Manufacturing Logistics/ Transport

Healthcare/

Consumer Goods


6 |

Business Process Excellence (BPE)

Business Process PLATFORMS

Integration PLATFORMS

Big Data PLATFORMS

Transaction PLATFORMS

Product Suite – Powering The Digital Enterprise

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012

in €m

BPE - Business characteristics BPE - Product revenue development

Technology leader (Gartner, Forrester)

Worldwide biggest independent specialized

vendor of Business Process Excellence (BPE)

Market growth perspective (CAGR 10% + p.a.)

License revenue growth: +20% to +30% in 2013

Growth driver: market, portfolio, deal size, sales

staff


7 |

Business Process

and IT Management PLATFORMS

Big Data PLATFORMS

Integration and

Automation PLATFORMS

ALFABET

IT Portfolio

Management &

Planning

ALFABET Enterprise

Architecture

Management Suite

ARIS Business

Process Analysis

ARIS Governance,

Risk and Compliance

Management

WEBMETHODS

Integration

WEBMETHODS

Business Process

Management

Suite

WEBMETHODS

Intelligent

Business

Operations

APAMA Complex

Event Processing

TERRACOTTA

In-Memory Data

Management

TERRACOTTA

In-Memory

Intelligent Action

Process Live SOFTWARE AG

Live

AgileApps Live

Integration Live

Powering The Digital Enterprise - BPE Product Suite


8 |

Software AG Suite is a Top-Ranked Leader

Application Integration Suites • • • • • Business Process Analysis Tools • • • Business Process Management Suites • • • Enterprise Architecture Tools • • Governance, Risk and Compliance • • • Integrated IT Portfolio Analysis Apps • Application Services Governance • • Complex Event Processing Platforms • • • Comprehensive Integration Solutions • • • • • EA Management Suites • Elastic Caching Platforms • • • ESB • • • • Integrated SOA Governance • • SOA Service Life-cycle Management •


9 |

Highest Position in Leaders Quadrant of Gartner’s

Magic Quadrant for Application Integration Suites

“Leaders in infrastructure that supports systematic

application integration provide a comprehensive

ESB suite offering as well as the ability to

integrate that offering with other relevant

technologies (including community management,

data integration, SOA and integration governance,

and BPM). This is combined with a strong

commitment to this market, which is expressed

through focused value propositions and go-to-

market strategies (for example, by packaging

platforms and/or by providing integrated product

and service offerings specific for this market).”

Source: Gartner, Inc., Magic Quadrant for On-Premises Application Integration Suites, Jess Thompson, et

al., June 27, 2013

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated

in the context of the entire document. The Gartner document is available upon request from Software AG.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does

not advise technology users to select only those vendors with the highest ratings. Gartner research

publications consist of the opinions of Gartner's research organization and should not be construed as

statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research,

including any warranties of merchantability or fitness for a particular purpose.


10 |

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012

in €m

ETS - Business characteristics ETS - Product revenue development

Enterprise Transaction Systems (ETS):

ADABAS (fastest transactional database)

NATURAL (rapid application development)

Mature market (cash-cow)

Revenue decline, stable margins and strong

recurring cash flow

Cost management focus

Annual maintenance renewal rate: > 90%

(average)

Business Process PLATFORMS

Integration PLATFORMS

Big Data PLATFORMS

Transaction PLATFORMS

Product Suite – Powering The Digital Enterprise

Enterprise Transaction

Systems (ETS)


11 |

19% 32% 39% 43% 47% 52% 55% 61%

81% 68% 61% 57% 53% 48% 45% 39%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013e

69 146

209 244 319

385

0

100

200

300

400

500

2006 2007 2008 2009 2010 2011 2012 2013e

447-470

~

338

~

Transition Towards Growth –

Increasing Relevance of BPE Division

BPE Product Revenue in €m

Relative share of product revenue

BPE

BPE

ETS


Strategy


13 |

Growth Strategy

G R O W T H B A S E D O N T H R E E P I L L A R S

…leveraging technology

leadership in enterprise

infrastructure software

…investing into Sales and

Marketing

O R G A N I C G R O W T H …

…in key strategic areas:

S E L E C T I V E M & A …

…addressing Mega Trends

for enterprise IT

I N N O VAT I O N …

• Drive current offering

• Complementary

technology

• Cloud

• Big Data

• Mobile

• Collaboration


14 |

0%

10%

20%

30%

40%

50%

60%

23.0% 21.6%

20.7% 21.3% 20.9%

17.7%

44.9%

42.2% 39.2%

37.1% 39.1%

54.0%

Strengthen Software AG’s Sales Organization -

Worldwide

+ 2 0 0 s a l e s

i n B P E d i v i s i o n

% of product revenue

BPE S&M costs

ETS S&M costs


15 |

0%

5%

10%

15%

20%

25%

30%

2008

2009

2010

2011

2012

9.0% 9.0%

8.9% 8.4%

8.4%

22.2% 21.6%

18.7% 18.1% 19.5%

25.8% 25.8% 24.2%

24.3% 25.8%

Innovation through own R&D as well as Acquisitions

BPE R&D costs (incl. IPR amortization)

BPE R&D costs

ETS R&D costs

% of product revenue


16 |

Acquisitions Support Technology Leadership

2007

2008

2009

2010

2011 2012 2013

(Integration)

(Business Process)

(Big Data)

(Cloud)

(Mobile)

(Mobile)


Outlook


18 |

~80%

Enterprise Transaction

Systems (ETS)

New Products (BPE)

• Organic Growth

• Integration Technology

• Business Process Mgt.

• Terracotta / Big Data

• Cloud

• Partner / OEM

• M&A/Innovative Technologies

2012 2018

45%

€1 Billion

20%

80%

2006

55%

~20%

Revenue Targets 2012 - 2018

Product Revenue


19 |

Enterprise Transaction Systems

ETS

• Product revenue in

structural decline

(single digit % p.a.)

• Manage cost to

maintain operating

margin > 60%

Business Process Excellence

• Product revenue: growth ca. 15-20% p.a.

(incl. a 50-100% contribution from Terracotta)

• > 50% contribution to group result

• Expand Big Data offering by Real Time BI

platform

BPE

• Increase BPE product

revenue to € 1bn

• Strategic acquisitions

(cash-only; Cloud/

Big Data)

• EPS growth

10-20% p.a.

(2013-2018)

Software AG Group

S H A R E O F P R O D U C T R E V E N U E *

Business Targets 2012 - 2018 (2018, base: 2012)

* According to mid-term business goals


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Investor Relations

Uhlandstrasse 12

64297 Darmstadt

Germany

phone: +49 (0) 6151 / 92 1900

fax: +49 (0) 6151 / 9234 1900

softwareag.com

e-mail: [email protected]

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software ag live/media/files/s/software-ag-ir/... · 28/08/2013 · big-data and in-memory...

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