Growth Strategy and Outlook 2018 - Software AG

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Transcript of Growth Strategy and Outlook 2018 - Software AG

Karl-Heinz Streibich, CEO

January 29, 2013

Growth Strategy and Outlook 2018

Q4 2012 Results | January 29, 2013 | 2

Safe harbor

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.

2012 Financial Results| 29. January 2013 | 3

Innovation

Software AG innovates in 2 Dimensions:

1 Go-to-Market

Simplicity 2 Technology

around the 4 forces

3

4

5

1

6

Cloud

CLOUD native

Facebook-like COLLABORATION

MOBILE ready (HTML5)

Embedded DASHBOARDING

Highly scalable

Fast subscription based ACCESS

EASY design, sharing, feedback and analysis

Easy UPGRADE path to full BPA suite

# new hires derived and planned trainings onboarding complete

7

Mobile Our Offering for 2013

1

Mobile Development

Environment

Centralized Build

Management

Enterprise Service Bus

Mobile Application

Management

Cross-platform

Application

Backend Access

Control

Mobile Device

Management

Manage

Monitor

Run

Deploy

Integrate

Build

Test

Design

Develop Manage

Deploy

Integrate

Develop

Run

Build

Test

BUSINESS PRODUCTIVITY

Leverage

SOCIAL FO

R

Social

1

• INSTANT ACCESS to Enterprise

Events on your Mobile Device

• MONITOR & COLLABORATE

on Activity Streams

• LEVERAGE the Power of

event-driven Architecture to follow

any System and Human Event

• CONSOLIDATE ALL

Business related Social Streams

8

Big Data

REAL TIME

• Whole BPE suite integrated

with TERRACOTTA

• Faster. More efficient

NEW OPPORTUNITIES

• Actionable Intelligence

• Universal Access to

BIG DATA

9

1

9

10

2 Example: Integration

INTEGRATION is back in vogue! • Cloud and Social – main drivers

Market growing at [Gartner]

Providing amazing BENEFITS • Autotrader.com fulfills orders 70% faster

• Coca Cola Enterprises: $100M+ in savings

• Vodafone: customer inquiries resolution rate rose 95%

Maintaining INDUSTRY LEADERSHIP

33%

11

Innovation

Software AG innovates in 2 Dimensions:

1 Go-to-Market

Simplicity 2 Technology

around the 4 forces

12

13

Business Process PLATFORMS

Integration PLATFORMS

Big Data PLATFORMS

Transaction PLATFORMS

Software AG Suite POWERING THE DIGITAL ENTERPRISE

2

14

The Brand Architecture

15

Platform Brands

16

Software AG‘s Brand Promise

Enterprises that need agile processes,

smarter decisions and systems that work,

need Software AG.

The company’s data, integration and process

solutions help customers fully leverage the

four forces of big data, mobile, cloud and

social, powering their digital enterprise to act

faster in ever-changing markets.

2012 Financial Results| 29. January 2013 | 17

17

BOOST customer satisfaction

AGILE infrastructure for rapid growth

REDUCE customer turnaround times of max 15 minutes

O P P O R T U N I T Y

R E S U L T

Transforming a Continent

SPEED Inseconds mobile channel - 2.4 million self-service activities

NEW Business 320,000 new customers

OLD BUSINES 130,000 dormant customers re-activated

2012 Financial Results| 29. January 2013 | 18

18

REDUCE fraud loss

IMPROVE speed and accuracy of fraud detection system

INCREASE rules in fraud detection algorithm from 50 to over 1,000

O P P O R T U N I T Y

R E S U L T

DRIVE profit up by tens of millions of Euros

MEET 650 millisecond end-to-end SLA 99% of the time

ACHIEVE better accuracy

Transforming Security

2012 Financial Results| 29. January 2013 | 19

Revenue split in Percent compared to total revenue (middle-term)

~20%

Transformation of the Growth Driver

~80%

ETS Business

BPE Business • Organic Growth

• Integration Technology

• Business Process Mgt.

• Cloud

• Terracotta / Big Data

• Partner / OEM

• M&A / Innovative Technologies

2012 2018

36%

52%

€1 Billion

73%

27%

2006

Arnd Zinnhardt, CFO

January 29, 2013

Outlook 2013 - 2018

Q4 2012 Results | January 29, 2013 | 21

0

10

20

30

0 1 2 3

Strategic focus on strong market outperformance

to drive long-term, dynamic EPS growth

BPE License

Growth

Outperformance

Avg. Market Growth

30%

20%

10%

Winning

Market Share

Q4 2012 Results | January 29, 2013 | 22

0

10

20

30

0 1 2 3

2012

Strategic focus on strong market outperformance

to drive long-term, dynamic EPS growth

BPE License

Growth

€ 1.00 € 2.00 € 3.00

15%

€ 1.90

30%

20%

10%

Outperformance

Avg. Market Growth

EPS

Q4 2012 Results | January 29, 2013 | 23

0

10

20

30

0 1 2 3

2012

Strategic focus on strong market outperformance

to drive long term, dynamic EPS growth

BPE License

Growth

€ 1.00 € 2.00 € 3.00

15%

€ 1.90

30%

20%

10%

2013

projection

Outperformance

Avg. Market Growth

EPS

Q4 2012 Results | January 29, 2013 | 24

0

10

20

30

0 1 2 3

Strategic focus on strong market outperformance

to drive long-term, dynamic EPS growth

BPE License

Growth

2012

€ 1.70 – € 1.80

30%

20%

10%

€ 1.00 € 2.00 € 3.00

Outperformance

Avg. Market Growth

Guidance 2013:

Accelerated License Growth

EPS

Q4 2012 Results | January 29, 2013 | 25

0

10

20

30

0 1 2 3

Strategic focus on strong market outperformance

to drive long-term, dynamic EPS growth

BPE License

Growth

2012

30%

20%

10%

€ 1.00 € 2.00 € 3.00

Outperformance

Avg. Market Growth

Guidance 2013:

Accelerated License Growth

EPS

Add. S&M

Investment

Q4 2012 Results | January 29, 2013 | 26

0

10

20

30

0 1 2 3

Strategic focus on strong market outperformance

to drive long-term, dynamic EPS growth

BPE License

Growth

30%

20%

10%

€ 1.00 € 2.00 € 3.00

Outperformance

Avg. Market Growth

2018

EPS

2012

License Growth

Drives

EPS Growth

Q4 2012 Results | January 29, 2013 | 27

Outlook FY 2013

* Net of currency, delta

Product Revenue BPE

FY 2012 (in €m)

310

Outlook FY 2013 (as of Jan. 29, 2013)

€ 1.70 to € 1.80

-9% to -4%*

384 +16% to +22%*

Product Revenue ETS

EPS € 1.90

Thank you

Your contact:

Investor Relations phone: +49 (0) 6151 / 92 1900 Follow us on Twitter:

Uhlandstrasse 12 fax: +49 (0) 6151 / 9234 1900 @SoftwareAG_IR

64297 Darmstadt web: softwareag.com

Germany e-mail: investor.relations@softwareag.com