CMD 050220 Webcast - Software AG/media/Files/S... · gdwh -xo\ vw 7khuhiruh ri vw...
Transcript of CMD 050220 Webcast - Software AG/media/Files/S... · gdwh -xo\ vw 7khuhiruh ri vw...
5 February 2020
Capital Markets Day
OTMAR WINZIG
HEAD OF INVESTOR RELATIONS
OPENING REMARKS
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Time Subject Presenter
09.00 – 09.05 Welcome & Opening Remarks Otmar Winzig, SVP Investor Relations
09.05 – 09.35 Helix Year 2 – Momentum & Impact Sanjay Brahmawar, Chief Executive Officer
09.35 – 10.10 Financial Metrics and KPIs Arnd Zinnhardt, Chief Financial Officer
10.10 – 10.35 Go-to-Market Growth Strategy John Schweitzer, Chief Revenue Officer
10.35 – 10.55 Q&A (1) CEO, CFO & CRO
10.55 – 11.15 Coffee Break
11.15 – 11.35 Product Leadership Dr. Stefan Sigg, Chief Product Officer
11.35 – 11.55 Market Vision & Strategy Bernd Gross, Chief Technology Officer
11.55 – 12.15 Marketing Impact Paz Macdonald, Chief Marketing Officer
12.15 – 12.30 People & Culture Dr. Elke Frank, Chief Human Resources Officer
12.30 – 12.55 Q&A (2) All Presenters
12.55 – 13.00 Closing Remarks Otmar Winzig, SVP Investor Relations
13.00 – 14.00 Networking Lunch
14.00 – 16.45 Breakout sessions (separate agenda)
16.45 End of eventTO
DA
Y’S
AG
EN
DA
3 © 2020 Software AG. All rights reserved.
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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 aresubject to risks and uncertainties. Actual results may vary materially from those projected here, due tofactors 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 techno-logies and changes in business strategy. Software AG does not intend or assume any obligation to updatethese forward-looking statements.
This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other waysecurities of Software AG or any of the companies that are members of the Group at present or in thefuture, nor does it form part of such an offer and it should not be understood as such. This presentationdoes not constitute an offer of sale of securities in the United States of America. Securities may not beoffered or sold in the United States of America without registration or exemption from registration inaccordance with the U.S. Securities‘ Act of 1933 in its currently valid form.
© 2020 Software AG. All rights reserved.
SAFE HARBOR STATEMENT
4
Sanjay Brahmawar
Chief Executive Officer
HELIX: YEAR TWOMOMENTUM & IMPACT
6 | © 2020 Software AG. All rights reserved.
The renewed power of our platform
Uniquely positioned in growth markets
2020 investments and demonstrating returns
OUR GOALS FOR TODAYENGAGING YOU IN OUR MOMENTUM
TRANSFORMATION OPPORTUNITY CLARITY
6
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HELIX – ONE YEAR AGO TODAY
YEARS
7 © 2020 Software AG. All rights reserved.
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2011 2012 2013 2014 2015 2016 2017 2018
CASE FOR CHANGE REVENUE GROWTH TRAJECTORY 2011 – 2018
8 © 2020 Software AG. All rights reserved.
9 |
EVOLVING OUR HELIX JOURNEYAN ENTIRELY NEW COMPANY FROM THE INSIDE, OUT
2019 2020 2021 – 23
Lay Foundation
Build Momentum
Accelerate toward €1bn
Analyst report
lead positions
New Logos
DBP rev Subs/SaaS
ARR growth
Bookings Subs/SaaS
© 2020 Software AG. All rights reserved.
Record-high Product NPS
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EVOLVING OUR HELIX JOURNEYINVESTING IN MOMENTUM & IMPACT
2019 2020 2021 – 23
Lay Foundation
Build Momentum
Accelerate toward €1bn
© 2020 Software AG. All rights reserved. 10
11 | © 2020 Software AG. All rights reserved.
OPPORTUNITY IS OUR CATALYSTTARGET MARKETS IGNITING
IT Transformation
budgets
Largest for 15 years1
$18 bn
$12 bn
Integration Platform Market
TAM 2
2017
2022
$25.6 bn
$9.5 bn
IoT Platform Market
TAM 3
2017
2023
(1) 2019 Harvey Nash / KPMG CIO Survey; (2) Gartner Inc.; (3) McKInsey
+50% +18% CAGR
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OPPORTUNITY TO CLAIM NEW TERRITORYTHREE EMERGING AREAS TO MAKE OUR OWN
Connected Customer Experience
Hybrid & Multi Cloud
Operational Excellence
© 2020 Software AG. All rights reserved.
“12 million new IoT devices acquired per day by 2022” 1
(1) Gartner Inc. ‘IoT Forecast Statistics’ 2019; (2) Gartner Inc. ‘Innovation Insight for Hybrid Integration Platforms’ 2019;(3) Gartner Inc. ‘Application Strategies and Solutions Summit’ 2019.
“2022: 65% of global organizations will have implemented a hybrid integration platform” 2
“Through 2020, integration will consume 60% of time and cost of building a digital platform” 3
12
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OPPORTUNITY IN OUR EDGECHANGING OUR COMPETITIVE DYNAMIC
• Greater cohesion in our Integration, B2B, API products
• Clarity of positioning in key growth markets
• Integration, iPaaS and IoT capabilities our ‘edge’
• Winning against – and replacing
• Customer engagement model vs. product model
• A&N installation eases integration
• Stability, simplicity, robustness and uptime
• Ease of use, ease of migration
© 2020 Software AG. All rights reserved. 13
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OPPORTUNITY, UNLOCKED5 LINKED INVESTMENT AREAS
Targeting €1bn Group Revenue in 2023
© 2020 Software AG. All rights reserved. 14
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BUILDING ON 2019 ADVANCESIDENTIFYING STRENGTH, INVESTING BEHIND IT
EMEA & APJ double digit
NAM stable & predictable
50% MQL contribution
280 deals
ARR +10%
51.5% Bookings Subs/SaaS
20
19
1st Adobe wins
+$20m Microsoft pipeline
Culture Survey
+185 FTE
20
20
Business Model Quality
Sales Excellence Demand Generation
Customer Success
Pricing & Packaging
Partner Activation
Alliances
Talent & Leadership
People
15 © 2020 Software AG. All rights reserved.
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The renewed power of our platform
Uniquely positioned in growth markets
2020 investments and demonstrating returns
OUR GOALS FOR TODAYENGAGING YOU IN OUR MOMENTUM
TRANSFORMATION OPPORTUNITY CLARITY
© 2020 Software AG. All rights reserved. 16
Arnd Zinnhardt
Chief Financial Officer
Financial Model & KPIs
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DBP – Cloud & IoT Product Bookings
DBP (excl. Cloud & IoT) – Product Bookings
A&N – Product Bookings
Operating Margin Group(EBITA non-IFRS)2)
DBP ex IoT – Product Bookings
OUTLOOKFULL YEAR 2020
1) At constant currency rates2) Adjusted for non-operating items (see non-IFRS earnings results)
FY 2019(in €m)
PRELIMINARY
100.8
241.1
29.2%
65.9
FY 2020 Outlook (as of January 29, 2020)
20% to 22%
-3% to +3%1)
+40% to +60%1)
+10% to +15%1)
18 © 2020 Software AG. All rights reserved.
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WHY BOOKINGS?
However, honoring IFRS standards, the mode of deployment determines the point in time when revenue is recognized.
“IFRS Revenue” is not the best metric to measure sales success when using a mixed license model Therefore, we introduce “Bookings” as the new KPI to track customer adoption and to measure sales success.
…is the normalized 3-years’ commitment of a customer for our products*. It does not make any difference whether the customer consumes the products as a perpetual license, a subscription or as a service.
The market success of a company must be derived from the customers’ adoption of its products. In this context the deployment and consumption model of its products is irrelevant.
Deployment Model IFRS Standards
Indicator for Sales success The way we define “Bookings”
* Professional Services sold to our customers are not considered for Bookings
19 © 2020 Software AG. All rights reserved.
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REVENUE RECOGNITION REFRESH
DEPLOYMENT MODEL REVENUE RECOGNITION
PERPETUAL Licenses: upfront Maintenance: pro-rata
SUBSCRIPTIONLicenses: upfront
for period of commitment Maintenance: pro-rata
SAAS pro-rata
20 © 2020 Software AG. All rights reserved.
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BOOKINGS DEFINITION – BY DEPLOYMENT
1 only new Maintenance is considered for Bookings. In case of License without Maintenance contracts, only License value is considered for Bookings2 Annual Contract Value (ACV) equals Total Contract Value (TCV) divided by contract duration; For contracts with a duration of 90 - 365 days, the TCV is considered for Bookings; Contracts with a duration smaller 90 days are not considered for Bookings
DEPLOYMENTMODEL
CONSIDERED FOR
BOOKINGSBOOKING
CALCULATION
NEW Total License Value
plus 3 Years annual Maintenance1
RENEWALS(MAINTENANCE) No impact on Bookings
NEW
RENEWALS
NEW
RENEWALS SAAS
Annual Contract valuetimes 3 years2
(ACV x 3)
Annual Contract valuetimes 3 years2
(ACV x 3)
SALES EVENT
PERPETUAL
SUBSCRIPTION
21 © 2020 Software AG. All rights reserved.
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FROM BOOKINGS TO REVENUE – YEAR 1EXAMPLE PER DEPLOYMENT MODEL
DEPLOYMENT MODELCONTRACT
START DATE
BOOKINGS REVENUE
YEAR 1 YEAR 1
PRODUCT License Maint. PRODUCT License Maint.
PERPETUALJAN 1st 1.600 1.000 600 1.200 1.000 200
DEC 31st 1.600 1.000 600 1.000 1.000 0
SUBSCRIPTIONJAN 1st 1.600 1.000 600 1.200 1.000 200
DEC 31st 1.600 1.000 600 1.000 1.000 0
SUBSCRIPTIONwith annual termination right
JAN 1st 1.600 1.000 600 533 333 200
DEC 31st 1.600 1.000 600 333 333 0
SAASJAN 1st 1.600 - - 533 - -
DEC 31st 1.600 - - 0 - -
TOTALJAN 1st 6.400 ~ 3.500
DEC 31st 6.400 ~ 2.300
22 © 2020 Software AG. All rights reserved.
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FROM BOOKINGS TO REVENUE – MID-TERMEXAMPLE PER DEPLOYMENT MODEL(Contract START DATE JAN 1st)
DEPLOYMENT MODEL
YEAR 1 Y2 Y3 Y4 YEAR 1 Y2 Y3 sum Y1-Y3 Y4 Y5 Y6 sum Y4-Y6
PERPETUAL 1.600 - - - 1.200 200 200 1.600 200 200 200 600
SUBSCRIPTION 1.600 - - 1.600 + 1.200 200 200 1.600 1.200 + 200 + 200 + 1.600 +
SUBSCRIPTIONwith annual termination right
1.600 - - 1.600 + 533 533 533 1.600 533 + 533 + 533 + 1.600 +
SAAS 1.600 - - 1.600 + 533 533 533 1.600 533 + 533 + 533 + 1.600 +
TOTAL 6.400
PRODUCT BOOKINGS PRODUCT REVENUE
23 © 2020 Software AG. All rights reserved.
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TOTAL REVENUE MID-TERM DEVELOPMENT
Adabas & Natural
Professional Services
DBPfrom existing contracts
DBP
from new contracts
m€
1.000
2019 2020 2021 2022 2023
24 © 2020 Software AG. All rights reserved.
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25 – 30%Operating
Margin
Digital Business
~15% CAGR
GroupRevenue
€1B+
85% – 90% RecurringProduct Revenue
2023
Accelerated growth, higher quality and higher visibility of revenues, good margin and cash generation
OUR AMBITION
© 2020 Software AG. All rights reserved. 25 © 2020 Software AG. All rights reserved.
26 |
FROM BOOKINGS TO REVENUEREVENUE FACTORS
BOOKINGS VALUE
BOOKINGS VALUE
REVENUE RECOGNIZED
REVENUE RECOGNIZED
Deployment Model
~50% of subscription contractswith annual termination rights
Normalized Seasonality*
*Pro-Rata components (applicable for Maintenance & SaaS) are considered with an assumed contract startdate July 1st. Therefore 50% of 1st year amount is considered in Factor for Year 1
REVENUE FACTORper Deployment Model
FACTORS*for YEAR 1
YEAR 2
~ 0,71€ Booking = ~0,7€ Revenue
SUBSCRIPTION ~ 0,7 ~0,1
SUBSCRIPTIONwith annual termination right
~ 0,3 ~0,3
SAAS ~ 0,2 ~0,3
PERPETUAL ~0,1
26 © 2020 Software AG. All rights reserved.
27 |
FROM BOOKINGS TO REVENUEDETAILED CALCULATIONS
EXAMPLES YEAR 1 YEAR 2
PERPETUAL
SUBSSCRIPTION
LICENSE: 1000 / 1600 = 0.625
MAINTENANCE: (200 / 2) * (1 / 1600) = 0.063
TOTAL: 0.625 + 0.063 = 0.688
= ~ 0.7
w/ annual
cancellation
LICENSE: 333 / 1600 = 0.208
MAINTENANCE: (200 / 2) * (1 / 1600) = 0.063
TOTAL: 0.208 + 0.063 = 0.271
= ~ 0.3
200 / 1,600 = 0.125
= ~ 0.1
333 / 1600 = 0.208
200 / 1,600 = 0.125
0.208 + 0.125 = 0.333
= ~ 0.3
27 © 2020 Software AG. All rights reserved.
© 2020 Software AG. All rights reserved.
EXPECTED DEPLOYMENT MIX 2020
SEGMENT
DEPLOYMENTMODEL
Digital Business Platform
(excl. IoT & Cloud)IoT & Cloud
Adabas &Natural
TOTALPRODUCT BUSINESS
PERPETUAL 40 - 50 % 5 - 10 % 90 - 100 % 50%
SUBSCRIPTION 50 - 60 % 40 - 50 % 0 - 10 % 40%
SAAS 50 - 55 % 10%
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BOOKINGS 2019
Q1 Q2 Q3 Q4TOTAL YEAR
Digital Business Platform(excluding Cloud & IoT)
34.9 43.7 58.8 103.7 241.1
IoT & Cloud 14.1 17.9 14.8 19.1 65.9
Adabas & Natural 21.4 21.9 28.3 29.2 100.8
*Applies to Subscription & SaaS contracts: Annual Contract Value (ACV) equals Total Contract Value (TCV) divided by contract duration; For contracts with a duration of 90 - 365 days, the TCV is considered for Bookings; Contracts with a duration smaller 90 days are not considered for Bookings.
29 © 2020 Software AG. All rights reserved.
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INVESTMENTS2020 VS 2019DETAILED BREAKDOWN
GTM
~50% PRODUCT
R&D
~40%
People & Culture
~10%
Total €40m – €50m
30 © 2020 Software AG. All rights reserved.
John Schweitzer
Chief Revenue Officer
GTM Growth Strategy
32 | © 2020 Software AG. All rights reserved. For internal use only
Trusted innovation partner
Addressing mega trends
New business model
Long term vision
WHY I’M EXCITED
32 © 2020 Software AG. All rights reserved.
33 | © 2020 Software AG. All rights reserved. For internal use only
2019 FOUNDATION
New GTM Architecture
New Specialization
• 27% new logos
• 0 25% resources
New Sales Leadership
DBP+IOT pipe >3x
AE Participation
• 34% 62%
• 76% improvement
New Mega Partners
Content & Training
Align w Prof. Services
Contracts
Sales Methodology
Industry Content
GLOBAL GTMNORTH
AMERICAALLIANCES &
CHANNELS SIMPLIFIED
33 © 2020 Software AG. All rights reserved.
34 | © 2020 Software AG. All rights reserved. For internal use only
GTM ARCHITECTURESTANDARDIZED AND IMPROVED
Enterprise
Corporate
Strategic Accounts
Enterprise Accounts
Corporate Accounts
Pipe & Rev Support
Sa
les
De
velo
pm
ent
Insi
de
Sa
les
Partner Ecosystem
Ind
ep
en
de
nt
So
ftw
are
Ven
do
rs
Co
-sel
l
Dis
trib
uti
on
Sys
tem
Inte
gra
tors
Pre
sa
les
Sp
ec
ialis
ts
Cu
sto
mer
Su
cc
ess
34 © 2020 Software AG. All rights reserved.
35 |35 |
2020 MANDATE
DEVELOP DELIVERDELIGHT
our customers world class sales organization
strong double-digit bookings growth
1H Pipeline3x DBP & 6x IoT
Participation 42% 65%
NPS 18 44+
FOCUSED EXECUTION
35 © 2020 Software AG. All rights reserved.
36 |36 | © 2020 Software AG. All rights reserved.
2020 GROWTH STRATEGYCRITICAL SUCCESS FACTORS
Leverage new business model
Ignite alliances and channels
Accelerate demand generation
Sharpen sales excellence
GROWTH
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LEVERAGE NEW BUSINESS MODELALL READY FROM DAY ONE OF 2020
Product Bundles
Usage Tiers
New metric - transactions
PRICING & PACKAGING
SUBSCRIPTION
Customer choice
Increase velocity
Simple contracts
CUSTOMER SUCCESS
Solution adoption
Protect the baseline
Expand
37 © 2020 Software AG. All rights reserved.
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IGNITE ALLIANCES AND CHANNELSBUILDING FOR GROWTH: MID-TERM CAGR 40%+
INDEPENDENT SOFTWARE VENDORS
OEMs
SYSTEM INTEGRATORS RESELLERS AND DISTRIBUTORS
TECHNOLOGY ALLIANCES
38 © 2020 Software AG. All rights reserved.
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IGNITE ALLIANCES AND CHANNELSKEY NEW PARTNERSHIPS
• What: Adobe Experience Platform
• Products: WM.io
• Route-to-market: OEM / co-sell
• Pipeline Focus
• Marketo OEM
• 20+ opportunities
• >1m pipeline
• Net new logo focused
• What: consume Azure faster / IoT
• Products: WM.io and Cumulocity
• Route-to-market: co-sell
• Pipeline focus
• 30+ opportunities – Partner Center
• 20m+ pipeline in 4Q19 alone
• Regions: NA & EMEA
39 © 2020 Software AG. All rights reserved.
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GTM INVESTMENT AREASSPLIT AND IMPACT
Marketing
Regions
Customer Success
Alliances and Channels
50% increase in Field Marketing;Pipeline
Increase in Sales Capacity;
Bookings Growth
New Talent and Data Platform;Increase ARR, Net Retention and NPS
Increase in Capacity;
Channel Bookings Growth
40 © 2020 Software AG. All rights reserved.
41 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
BusinessTransformation
Business Automation
Measurement & Control
Enterprise Architecture Management
Roll-Out & Governance
Business Design & Planning
Integrated Portfolio
Management
StrategySynch
Integration & API
Low Code App Development
App & Cloud & DataIntegration
B2B Integration
API Management
In-Memory Data
ManagementMessaging
41 © 2020 Software AG. All rights reserved.
42 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
BusinessTransformation
Business Automation
Measurement & Control
Enterprise Architecture Management
Roll-Out & Governance
Business Design & Planning
Integrated Portfolio
Management
StrategySynch
Integration & API
Low Code App Development
App & Cloud & DataIntegration
B2B Integration
API Management
In-Memory Data
ManagementMessaging
42 © 2020 Software AG. All rights reserved.
43 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
BusinessTransformation
Business Automation
Measurement & Control
Enterprise Architecture Management
Roll-Out & Governance
Business Design & Planning
Integrated Portfolio
Management
StrategySynch
Integration & API
Low Code App Development
App & Cloud & DataIntegration
B2B Integration
API Management
In-Memory Data
ManagementMessaging
43 © 2020 Software AG. All rights reserved.
44 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
BusinessTransformation
Business Automation
Measurement & Control
Enterprise Architecture Management
Roll-Out & Governance
Business Design & Planning
Integrated Portfolio
Management
StrategySynch
Integration & API
Low Code App Development
App & Cloud & DataIntegration
B2B Integration
API Management
In-Memory Data
ManagementMessaging
44 © 2020 Software AG. All rights reserved.
Not available for webcast
Video Playing
Coffee break10:55 – 11:15
See you again shortly
Dr Stefan Sigg
Chief Product Officer
Product Leadership
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Digital Integration
Hub
Digital Integration
Hub
Industry IoTIndustry IoT
API ManagementAPI ManagementHybrid Integration Hybrid Integration
• Embedded Cumulocity IoT and webMethods into Siemens MindSphere
• webMethods.io embedded in PTC
• ADAMOS IoT solution roadmap
• Industry analyst predictions
• Industry use cases, e.g.
– Machine and plant builders
– Retail
– Utilities
– Telco
ANTICIPATING A STRONG MARKET CONVERGENCEHELIX FOCUS AREAS MERGE
Market evidence
48 © 2020 Software AG. All rights reserved.
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LEADERSHIP POSITIONS IN HELIX FOCUS MARKETSEXCELLENT PRODUCT RECOGNITION ACROSS ANALYSTS
API Management Hybrid Integration Industry IoT
49 © 2020 Software AG. All rights reserved.
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Cumulocity IoT Data HubScalable and cost-effective Cloud Big Data solution
TrendMiner ContextHubSelf-service root cause analytics for time-series data
webMethods.io API Full lifecycle API Gateway and Portal
webMethods.ioSelf-service Hybrid Integration and Integration-as-a-Service
webMethods.io B2BNext generation business-to-business integration
KEY INNOVATIONS DELIVERED IN 2019FOCUS DRIVES ABILITY TO EXECUTE
50 © 2020 Software AG. All rights reserved.
52 |
webMethods.io App MeshClosing the semantic gap between applications and the Service Mesh
webMethods.io Data HubScalable Big Data layer for integration data
Cumulocity IoT Solution AcceleratorsReady-to-run IoT solutions
Cumulocity IoT SecurityCertificate lifecycle management
Cumulocity IoT and TrendMinerEnd-to-end integrated analytics and AI/ML based on IoT data
KEY INNOVATION PRIORITIES FOR 2020 AND BEYONDTHOUGHT LEADERSHIP AND DELIVERY EXCELLENCE
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UNIQUELY POSITIONED TO COVER THE WHOLE STACKFOCUS ON SELF-SERVICE & FAST TIME-TO-MARKET
Integration & Messaging
Data Hub
Historical data
Real-time data
Historical
B2B
Device Mgmt & Connectivity
Integration & Messaging
Enterprise / Cloud
52 © 2020 Software AG. All rights reserved.
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A&N Cloud Journey From Mainframe to Linux, from Linux to Containers, from Containers into the Cloud
New ARIS Process MiningAll new Cloud-born version, leveraging synergies with ARIS process modeling and IoT production process data
Alfabet FastlaneCloud-based entry-level offering for IT portfolio management
ARIS ElementsCloud-based entry-level offering for self-service enterprise process excellence
ADDITIONAL KEY ROADMAP ITEMS 2020+ADABAS & NATURAL – ARIS & ALFABET
53 © 2020 Software AG. All rights reserved.
55 |
Market RelevanceMarket Relevance
Delivery ExcellenceDelivery Excellence
Customer ExperienceCustomer Experience
THE 3 KEY TAKE-WAYS
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Bernd Gross
Chief Technology Officer
Market Vision & Strategy
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OUR MARKET VISIONGUIDING OUR STRATEGY
The extreme competitiveness ofa Truly Connected
Enterprise
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RETURN TO THE OPPORTUNITY
IT Transformation
budgets
Largest for 15 years1
$18 bn
$12 bn
Integration Platform Market
TAM 2
2017
2022
$25.6 bn
$9.5 bn
IoT Platform Market
TAM 3
2017
2023
(1) 2019 Harvey Nash / KPMG CIO Survey; (2) Gartner Inc.; (3) McKInsey
+50% +18% CAGR
57 © 2020 Software AG. All rights reserved.
59 | © 2020 Software AG. All rights reserved.
DUEL FOR THE FUTURETesla against VW: Can the Wolfsburgers still succeed in catching up?
58
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THE TRULY CONNECTED ENTERPRISEDRIVING A NEW GENERATION OF DIGITALIZATION
Everything-as-a-Service
is the new paradigm
Connected Customer Experience
is the new disruption
The Truly Connected Enterprise
is the new reality
59 © 2020 Software AG. All rights reserved.
61 |
Connected Enterprises
TRANSFORMS XConnected Enterprises
TRANSFORMS X
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TRULY CONNECTED ENTERPRISECRITICAL
CAPABILITIES
61 © 2020 Software AG. All rights reserved.
63 | © 2020 Software AG. All rights reserved.
TURNING DATA INTO DECIMATED DOWNTIME
64 | © 2020 Software AG. All rights reserved.© 2019 Software AG. All rights reserved.© 2019 Software AG. All rights reserved.© 2020 Software AG. All rights reserved.
TURNING DATA
INTO PERFECTLY PAINTED CARS
65 |© 2020 Software AG. All rights reserved. For internal use only and for Software AG Partners.© 2019 Software AG. All rights reserved. © 2019 Software AG. All rights reserved.© 2020 Software AG. All rights reserved.
TURNING DATA INTO A SUPERIOR FAN EXPERIENCE
66 | © 2020 Software AG. All rights reserved.
TURNING DATA
INTO 100% PAPERLESS CITIZEN SERVICES
DRIVING A NEW GENERATION OF DIGITALIZATION
THE TRULY CONNECTED ENTERPRISE
© 2020 Software AG. All rights reserved.
The convergence of Integration & IoT is Software AG’s USP
The Truly Connected Worldis the new reality
Everything-as-a-Serviceis the new paradigm
Connected Customer Experienceis the new disruption
Paz Macdonald
Chief Marketing Officer
Marketing Impact
69 |
PURPOSE AND PRINCIPLESFUELING THE GROWTH ENGINE
Enable Sales function to be successful
Bridge the gap between Software AG and buyers
Grow and optimize ‘Lead to Revenue’ engine
© 2020 Software AG. All rights reserved. 68
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REPUTATION REVENUEREACH
Starting quality conversations in markets
where we’re strong
Winning where we have the right: in Integration
and in IoT
Impacting sales and driving revenue for
Software AG
REACH, REPUTATION, REVENUEFUNCTION WITH CLEAR FOCUS
© 2020 Software AG. All rights reserved. 69
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DELIVERING RESULTS IN 2019CLEAR FOCUS AND TANGIBLE OUTPUT
INPUT
GROWTH MARKETING FUNCTION
Build Team
Digital First
Develop Nurture Tracks
Focus on Key
Regions
IMPACT
Contribution to pipeline in key geographies –50% average
MQLs increased 18% YoY; 65% YoY in H2
R4Q Marketing contribution: Integration – 48% IoT – 50%
280 deals in 2019
Overall contribution to pipeline: €285.9m
© 2020 Software AG. All rights reserved. 70
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PRIORITIES FOR 2020BUILDING MOMENTUM: FOCUS ON QUALITY
Brand
Drives reputation
Route to Sale
Route to Talent
Digital First
Closer to the buyer
Seamless customer experience
Demand Gen
Quality and quantity
Big names; meaningful results
FOCUS 2020
71 © 2020 Software AG. All rights reserved.
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INVESTING IN DEMAND GENERATIONGROW REVENUE – IMPROVE FUNNEL CONVERSIONS
INPUTS
IMPACT
• Integrated Demand Generation plan
• Investment in the right industry events
• Campaigns with impact
• Faster, higher quality pipeline build
• ‘Lead to Revenue’ cycle shortened
• Increased net new logos
72 © 2020 Software AG. All rights reserved.
74 |
INVESTING IN DIGITALMEETING OUR AUDIENCES WHERE THEY ARE
INPUTS
IMPACT
• New website
• Increased digital campaigns
• Martech stack
• +20% unique new visitors
• Lower cost per acquisition
• Data to aid decision making and improve
73 © 2020 Software AG. All rights reserved.
75 |
INVESTING IN BRANDDRIVING AWARENESS AND MARKET POSITIONING
INPUTS
IMPACT
Elevate our messages to buyer needs
Increased social amplification on wins
‘Living Connections’ for Integration and IoT
Shorter sales cycles, faster route to buyer
Improved reputation and Share of Voice
Drive market and thought leadership
74 © 2020 Software AG. All rights reserved.
76 |
REPUTATION REVENUEREACH
Starting quality conversations in markets
where we’re strong
Winning where we have the right: in Integration
and in IoT
Impacting sales and driving revenue for
Software AG
REACH, REPUTATION, REVENUECLEAR IN OUR 2020 CONTRIBUTION
© 2020 Software AG. All rights reserved. 75
Dr. Elke Frank
Chief Human Resources Officer
People & Culture
78 |
CULTURE EATS STRATEGY FOR BREAKFASTINVESTING IN PEOPLE AND CULTURE
1
2
3
• Culture is at the core of every successful company
• HELIX brings our transformation strategy and culture closer together
• Great culture retains rock stars & attracts the best talent – our business needs sales and product talent to win
• Great culture drives change – our business needs to change and develop winning behavior and mindsets
• Leadership is key to leverage our HELIX strategy into the organization and develop the right talents and the mindset
77 © 2020 Software AG. All rights reserved.
#MyVoiceResults – Global Employees Survey 2019
74%*Response rate of #MyVoice
3.63 Software AG Engagement score
25thEngagement Score Percentile rank – Software Development industry
Where we have work to do: Recognition
Empowerment
Where weperformed well: Know what’s expected
Willing to do more
TopRegions: Asia Pacific & Japan
North America
* 3491 respondents out of 4726 Software AG employees
© 2020 Software AG. All rights reserved.
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KEY PRIORITIESTHREE FOCUS POINTS FOR HR FOR 2020 & BEYOND
Leadership&Talent Structure Culture
Talent ManagementAnd Acquisition
Cultural Change at Software AG
Organizational Setup
79 © 2020 Software AG. All rights reserved.
our brand
missionvision
b5 values
purpose
We empower our customers to turn data into valueWe unlock the power of data
to shape a better future
| How?| What?
purpose | Why?We connect technology and
people for a smarter tomorrow
DEFINING OUR CULTURE AND LIVING IT
© 2020 Software AG. All rights reserved.
Not available for webcast
Video Playing
Otmar Winzig
SVP – Investor Relations
Closing Remarks
Networking Lunch 13:00 – 14:00
Our webcast is now ended