Baader Investment Conference 2015 - Software AG/media/Files/S/... · 9/22/2015 · Apr/30/2015 Share Buy-back program 2015 since Sept/08/2015 Cash Use: Share Buy-back 2013-15 Share

©2015 Software AG. All rights reserved. 1 |

September 22, 2015

Otmar F. Winzig

Senior Vice President,

Head of Investor Relations

Baader Investment

Conference 2015


Safe-Harbor-Statement

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 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.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other

way securities of Software AG or any of the companies that are members of the Group at present

or in the future, nor does it form part of such an offer and it should not be understood as such.

This presentation does not constitute an offer of sale of securities in the United States of America.

Securities may not be offered or sold in the United States of America without registration or

exemption from registration in accordance with the U.S. Securities‘ Act of 1933 in its currently

valid form.


Product Revenue

Digital Business Platform

Product Revenue

Adabas & Natural

Operating Margin

(Non-IFRS)2)

FY 2014 (in €m)

244.7

394.5

27.9% 27.5% to 28.5%

-8% to -14%1)

+6% to +12%1)

Outlook FY 2015 (as of January 28, 2015)

Outlook FY 2015

1) At constant currency rates

2) Before adjustments for non-operating items (see non-IFRS earnings results)


Technology leader for more than 40 years

in data management and application development platforms

Software AG at a Glance

€850+ million

in revenue

40%+

recurring

50%+ new

products





* According to P+L structure as of June 2015

€850+ million

in revenue

40%+

recurring

50%+ new

products

47%

Americas EMEA

45%

revenue

by region*

35% Euro USD 31%

revenue

by currency*





4,300+ employees

worldwide*

R&D 22%

S&M 22%


€850+ million

in revenue

40%+

recurring

50%+ new

products

47%

Americas EMEA

45%

revenue

by region*

35% Euro USD 31%

revenue

by currency*





4,300+ employees

worldwide*

R&D 22%

S&M 22%


€850+ million

in revenue

40%+

recurring

50%+ new

products

€2bn+ market cap ~68% Free float

47%

Americas EMEA

45%

revenue

by region*

35% Euro USD 31%

revenue

by currency*


ADABAS & NATURAL A&N

• Database Management

System

• Application

Development

• Modernization

• Business & IT Transformation

• Adaptive Applications

• Agile Development

• Streaming Analytics

• Integration & Connectivity

Business Lines

DBP - Digital Business Platform Consulting

• Global Consulting

Services (GCS)

• Implementing own

product stack

• Customized Solutions

Application

infrastructure and

middleware

Develop, deploy

and integrate

applications

Manage business

and IT-

transformation

50% 28%

22%

SHARE OF

REVENUE*

* FY 2015 Group revenue FC


74% 26% 72% 28% 76% 24%

Share of Product Revenue Keeps Growing

Product revenue

(Maintenance & License) Services

66% 34%

FY 2012 FY 2013 FY 2014 H1 2015


0

100

200

300

400

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e*

A&N

DBP

Growing Recurring (Maintenance) Revenue

186 213

267 305

353 362 378 369 369

60% of Group Maintenance Revenue from DBP

410+

* According to Analyst Consensus as of August 7, 2015

€m


DBP offering focused on IT digitization segments, like

integration cloud/on premise, IoT, streaming analytics etc.

License Revenue: 70% From Growing IT Markets

* According to Analyst Consensus as of August 7, 2015

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e*

A&N

DBP


Capabilities Benefits

• Design, publish and analyze

processes and requirements

• Social collaboration

• Easy to access and use

• Collaborative cross-company

alignment of requirements

• Plan, manage and optimize IT

portfolios and assets

• Visual inventory, planning tools

• Full transparency across IT portfolios

• Holistic analysis and planning

• Optimize IT assets

• Fast, easy creation of process-

driven agile applications

• Native mobile support

• Improves customer, partner

and employee engagement

• Reduced project backlog

• Cloud-to-cloud integration

• Cloud-to-on-premises hybrid

integration

• Business friendly & web-based UI

• Faster time to market

• Collaborative integration

• Leverage existing systems

* General Availability of Integration Live is planned for second half 2014.

Software AG Cloud


Revenue and Margin Drivers

2015 2016 2017 2018 2019

Sales efficiency

Platforms / use case packaging

Recurring projects

Cloud based offerings

Partner sales / OEM

Revenue mix

Economies of scale

(R&D, G&A)

Metrics

Channel

sales

Sales

productivity


Dividend policy reflects profit, cash flow and financing requirements for growth.

Cash-out ratio increased to 25 -33 % of net profit/Free CF for 2014 ff.

Cash Use: Continuous Dividend Payments

0.25 0.27 0.30 0.33 0.37 0.38

0.43 0.46 0.46 0.46 0.50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in € for respective fiscal year


Share Buy-back

program 2013 I

Feb/12/2013 -

Apr/29/2013

Share Buy-back

program 2013 II

Nov/12/2013 -

Feb/26/2014

Cancellation of

treasury shares

Apr/30/2015

Share Buy-back

program 2015

since Sept/08/2015

Cash Use: Share Buy-back 2013-15

Share capital: 86,943,945 shares Share capital: 79,000,000 shares

4.5%

€115 million

4.7%

€110 million

ca. 3.5%*

€70 million max.

9.1%

* Based on Xetra closing price as of September 04, 2015 (€25.065)


Cash Use: M&A for Innovation & Market Footprint

Integration and BPM Business Process Analysis Big Data Application PaaS

2007 2008 2009 2010 2011 2012 2013


Key Value Investment Indicators

1. Footprint: Established global player in enterprise software

• Blue Chip customer base built over 40+ years

• Risk balanced revenue by industry and geography

• Experienced management team and loyal expert staff

2. USP: Technology leadership and vendor neutrality

• Leadership in 12 product categories by Gartner and Forrester

• Innovator: First Digital Business Platform

• Neutral vendor to integrate systems from large brands

3. Financials: Solid profit base and high cash generation

• 40+ percent of revenue is recurring maintenance

• 70+ percent of license revenue from growing market segments

• High operating margin (2014: 28%)

• Continuous dividend (cash-out ratio 25-33% of net profit/Free Cash Flow)


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]

@SoftwareAG_IR

mailto:[email protected]

Documents

Baader Investment Conference 2015 - Software AG/media/Files/S/... · 9/22/2015 · Apr/30/2015 Share Buy-back program 2015 since Sept/08/2015 Cash Use: Share Buy-back 2013-15 Share