Growth Strategy and Outlook 2018 - Software AG
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.
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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
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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: [email protected]