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©2014 Software AG. All rights reserved. 1 |
May 27 2014
Software AG
Investor Presentation
©2014 Software AG. All rights reserved. 2 |
Safe-Harbor-Statement
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.
©2014 Software AG. All rights reserved. 3 |
Software AG - At a Glance
High performance data management
Process planning, monitoring and
analysis
Middleware to integrate data, applications and
digital workflows
Intelligent Business Operations and Big Data
~ €1bn revenue (FY 2013)
~ 27% operating EBIT margin (FY 2013)
~ 16% free cash flow margin (FY 2013)
> 5,000 Employees worldwide
~ 1,000 R&D
> € 2bn market cap
> 60% free float
~ 29% Software AG Foundation
70 Countries
Global customer base: 80% of Fortune 10,000
Technology leader in system integration,
process automation and data management
©2014 Software AG. All rights reserved. 4 |
Americas EMEA
Germany Asia Pacific
*Based on group revenue FY 2013
Revenue Split – Well Balanced
Product Revenue by Region* Product Revenue by Industry*
Public Sector Financial Sector IT
Services Associations Manufacturing
Telcos Logistics Retail
Energy Other
22%
19%
38%
36%
17%
8%
©2014 Software AG. All rights reserved. 5 |
Enterprise Transaction Systems ETS
• Manage cash cow
• Adjust cost to
maintain segment
margin > 60%
Business Process Excellence
• Product revenue: growth 10-20% p.a.
(incl. a 50% growth from Big Data/IBO)
• >50% contribution to group result, mid-term
• Transform technology leadership into
market leadership
• Increase to >80% of product revenue (€1bn)
Business Lines & Development
BPE
IT PORTFOLIO
MANAGEMENT
REAL-TIME INTELLIGENCE AND BIG DATA
PROCESS AUTOMATION
AND INTEGRATION
COLLABORATIVE
PROCESS ANALYSIS
DATABASE MANAGEMENT
SYSTEMS
Consulting
APPLICATION DEVELOPMENT &
MODERNIZATION
ENABLER FOR OWN
PRODUCT SALES (BPE/ETS)
• Successful Turnaround
• Focus on Integration
and Business Solutions
• Margin expansion
44% 28%
28%
S H A R E O F R E V E N U E *
*based on revenue 2013: € 973m
SAP CONSULTING
(DISPOSAL IN Q2 2014)
©2014 Software AG. All rights reserved. 6 |
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010 2011 2012 2013
Maintenance – High Level of Recurring Revenue and Profits
186 213
267
305
353 362 378
> 90% of Maintenance Revenue is recurring
€m
BPE
ETS
369*
*currency impact: € 16m
©2014 Software AG. All rights reserved. 7 |
Free Cash Flow and Dividend per Share
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2006 2007 2008 2009 2010 2011 2012 2013
FCF per Share Div per Share
EUR
©2014 Software AG. All rights reserved. 8 |
Transforming Software AG Prime Operational Targets 2014
Product
Revenue
60 %
40 %
ETS Enterprise
Transaction
Systems
Preserve
customer
base
BPE Business
Process
Excellence Dynamic
Growth
Minimize decline
Protect maintenance base
Utilize customer access for driving
strategic projects (ETS and BPE)
Increase sales efficiency
• 2013 – hires
• Utilize full market potential
Close strategic - 7/8-digit deals
Broaden customer base
©2014 Software AG. All rights reserved. 9 |
0
50
100
150
200
250
300
350
2006 2007 2008 2009 2010 2011 2012 2013
License Revenue – Dynamic Growth in BPE Business
166
241
272 270
327
295 319
BPE License with sustainable growth
€m
BPE
ETS /Other
330*
*currency impact: € 17m
©2014 Software AG. All rights reserved. 10 |
0%
5%
10%
15%
20%
2011 2012 2013 2014e*
BPE License growth 2010-2014e compared to market peers
Peer group average
Growth
yoy acc
* Based on analyst estimates (May 2014)
©2014 Software AG. All rights reserved. 11 |
Turning Technology Leadership into Market Leadership:
Build Multi Channel Ecosystem and Integrated Portfolio Suite
Aris/web-Methods
webMethods
Apama
JackBe
LongJump
Alfabet, ARIS
Business Process Platform
Integration Platform
TerracottaMychannels
Cloud Suite & on-premise
Big Data/IBO Platform
Growth Multiple
Sales
Channels
Single
Sales
Channel
Growth acceleration
+€50 m S +M Investment
SI‘s
OEM‘s/ISV‘s
Products
Suite
©2014 Software AG. All rights reserved. 12 |
€1 Billion
>80%
New Products (BPE+)
• Organic Growth
• Integration Technology
• Business Process Mgt.
• IBO / Big Data
• Cloud / Partner / OEM
• M&A/Innovative Technologies
2013 2018
40% Enterprise Transaction
Systems (ETS)
20%
80%
2006
60%
<20%
Revenue Targets 2013 - 2018 (BPE + ETS)
Product Revenue
©2014 Software AG. All rights reserved. 13 |
Revenue and Margin Drivers 2014+
2014 2015 2016 2017 2018
Impact new sales staff
Growing Ø deal size
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
©2014 Software AG. All rights reserved. 14 |
Outlook FY 2014
Product Revenue BPE
Product Revenue ETS 273.8
422.9
260.7
FY 2013 (in €m)
+2% to +7%
- 9% to -16%*
+12% to +18%*
Outlook FY 2014 (as of Jan. 28, 2014)
Operating Result (Non-IFRS)**
* Revenue growth or decline at constant currency
** EBITA before adjustments for non-operating items (see non-IFRS earnings results)
-15%*
11%*
-7%
Q1 2014 (∆ in %)
©2014 Software AG. All rights reserved. 15 |
Key Investment Indicators
1. Footprint: Established global software player with blue chip customer base
2. USP: Unique technology leadership in fast growing IT segments
3. Financials: Strong balance sheet and cash generation (dividend)
4. Assets: Experienced management team and loyal expert staff
5. Timing: Post ramp-up investments for mid-term growth / leverage ahead
©2014 Software AG. All rights reserved.
Appendix
- Portfolio
- Customer Solutions
- Market Position & Competition
©2014 Software AG. All rights reserved. 17 |
APPS
SEARCH
ERP
CRM, HR
ADABAS ETC.
ESB / SOA-GOV.
DATA MGMT.
COLLABORATION
EVENT MGMT.
RULES
Process Automation
IntegrationMiddleware
Application Silos HW Infrastructure
Analytics Visualization
REAL-TIME DATA
In-Memory Big Data/IBO
Enabler of the Digital Enterprise
IT 1.0
IT 3.0
Internet 4.0
©2014 Software AG. All rights reserved. 18 |
B I G D ATA a n d I N - M E M O RY D ATA M A N A G E M E N T
Software AG Agility Platform
I N T E L L I G E N T B U S I N E S S O P E R AT I O N S
Event Processing Process Mining Historic KPI's Activity Monitoring Data Analytics
Business Process Analysis
PORTFOLIO MANAGEMENT
IT Portfolio Management Enterprise Architecture
COLLABORATIVE PROCESS ANALYSIS
Proactive Alerts Dashboards Real-Time Insight Mobile Anywhere
P R O C E S S A U TO M AT I O N / I N T E G R AT I O N
Application Integration B2B Integration SOA Governance Composite Applications
ERP Custom CRM
Process Automation
Governance, Risk & Compliance
©2014 Software AG. All rights reserved. 19 |
Acquisitions Support Technology Leadership
Big Data and In-Memory Data Management
Intelligent Business Operations
Event Processing
Real-Time Dashboards
Process Automation / Integration
Collaborative Process Analysis
Portfolio Management
Event Processing
IT Portfolio Management
Visualization
Cloud Application Development
Messaging Mobile Suite
In Memory Computing
©2014 Software AG. All rights reserved. 20 |
Software AG Cloud Offering
Pr o c e s s L i v e
Business Modeling
Process Publishing
Po r t f o l i o L i v e
IT Portfolio Management
A g i l e A p p s L i v e
Application Development Case Management
I n t e g r a t i o n L i v e
Cloud-to-Cloud Cloud-to-on premise
Unified PaaS
on premise SaaS
Private cloud
©2014 Software AG. All rights reserved. 21 |
MOBILE CLOUD
SOCIAL BIG DATA
Agile Inte
gra
tion &
Auto
mati
on
IBO/Smart Data Portfolio
Busi
ness
Pro
cess
Managem
ent
Agile A
pps
In-Memory Data Management & Connectivity
Real-time Decisions
Proactive Alerts Dashboards & Visualization
Intelligent Actions
Streaming Analytics
Streaming Analytics
Historical Pattern Discovery
Real-time Complex Pattern Detection
Business
Processes Mobile
events Financial &
News Events
Social
Media
$ £ € ¥
Sensor &
machines
Hadoop Business
Intelligence
Terracotta Big Memory & Universal Messaging
O
pti
miz
e
P
PM
Apama
Presto
©2014 Software AG. All rights reserved. 22 | Seize opportunities & avoid crises amidst explosive complexity
The need: supporting a new class of streaming,
decision-centric application requirements
Internet
Mobility
The Internet of Things
Industrial Internet
Location Sensing
Wearable Devices
Streaming
Social Media
Fast,
Big Data
Time window
to analyze &
act
Complexity of
Extra-Enterprise
information Smart
decisions
Supply Chain
Logistics
CRM/CXM
Risk Mgmt
Fraud
Trading
©2014 Software AG. All rights reserved. 23 |
Offline Business
Intelligence
Strategic and
Tactical
decisions
Periodic Reports
Ad Hoc BI Analytics
Traditional BI
Statistical Analytics
Data Mining
Other off-line Analytics
Predictive Analytics
Hadoop
Continuous
Streaming
Analytics
Run-the-business Operational Systems
Capture Big Data
“in motion”
Intelligent Business
Operations Platform
Store data
“at rest”
Data Mart/ Warehouse
Take Action
(Operational
Decisions)
Need to Complement Batch-based Analytics with
Continuous & Actionable Real-time Analytics
©2014 Software AG. All rights reserved. 24 |
Large Enterprise / Public Sector Customers in 70 Countries
Finance Public Sector Telecom Chemicals/Pharma Energy/Utilities
Manufacturing Logistics/ Transport
Healthcare/
Consumer Goods
©2014 Software AG. All rights reserved. 25 |
The Impact of Differentiating Solutions by Software AG
Refreshments
Supply chain transformation in days
10s of millions increase in profit
higher response
rate to marketing
campaigns
reduction in
transfer time
for assets 98%
10x
several million
Average annual benefit of
now emergency-prepared
Employees and contractors
©2014 Software AG. All rights reserved. 26 |
O P P O R T U N I T Y :
R E S U L T S :
Transforming Financial Services
• Free up IT budget to directly support
‐ Aggressive international growth in the
private banking sector
‐ Higher cross-selling across divisions
• Avoided development projects: Credit
Suisse saves $6 million annually
• Eliminated software costs: the
organization is saving $5 million annually
Through IT Portfolio Management and Enterprise Architecture Management
Payback in
6 MONTHS
SEVERAL MILLION DOLLARS SAVED
R E S U LT:
©2014 Software AG. All rights reserved. 27 |
O P P O R T U N I T Y :
R E S U L T S :
Transforming Food and Beverage
• Automate maintenance & repair process
for 1.7M coolers
– Streamline asset management
– Real-time visibility of cooler location
and status
• Reduce time for asset transfer by 98%
(from up to 8 hours to below 10 minutes)
• Uncover trends and recurring issues
• Avoid lost equipment
Through the Software AG Suite
R E S U L T:
98%
from up to 8 hours to below 10 minutes
REDUCTION IN TRANSFER TIME FOR ASSETS
Refreshments
©2014 Software AG. All rights reserved. 28 |
O P P O R T U N I T Y :
R E S U L T S :
Transforming Financial Services
• Fraud detection
• Reduce fraud loss
• Improve speed and accuracy of fraud
detection system
• Increase rules in fraud detection
algorithm from 50 to over 1,000
• Drive profit up by tens of millions of
Euros
• Meet 650 millisecond end-to-end SLA 99%
of the time
• Achieve better accuracy
Through In-Memory Data Management
R E S U L T:
Fraud detection I N M I L L I S E C O N D S
DRIVES PROFIT UP
of millions €
BY 10s
©2014 Software AG. All rights reserved. 29 |
O P P O R T U N I T Y :
R E S U L T S :
Transforming Manufacturing
• Consumer-centric order-to-ship process • Provide end-to-end supply chain visibility
to retail through defined process monitoring points, KPIs, alerts and pre-configured dashboards
• Integrate Electrolux’s heterogeneous systems and partners
• New business model supported in days,
enabling Electrolux to win a new major
retail customer
• Real-time insight into processes, orders
and inventory
• Early indicator of potential problems
• Enables “management by exception”
• Reduced cycle times — products
delivered faster, fewer reschedules
Through Process Automation and Integration
R E S U L T:
Consumer Retail Distribution Manufacturer
Bulk order
New Retail
Customer Consumer order
Consumer order delivery
Full Supply Chain Visibility
Installation
Supply
Chain
©2014 Software AG. All rights reserved. 30 |
O P P O R T U N I T Y :
R E S U L T S :
Transforming Telecommunications
• Customer retention through real-time
targeted marketing campaigns
• Increase customer loyalty by proactively
offering the right service at the right
time
• 10 times higher response rate to
marketing campaigns
• Marketing campaign cycle time cut from
days to minutes
• Increased customer satisfaction and
retention rates
• Leapfrogging competition through digital
innovation
Through Intelligent Business Operations
10x INCREASE IN OFFER UPTAKE
$15 million
in revenue
in year one
INCREASE
R E S U L T:
©2014 Software AG. All rights reserved. 31 |
IBO Solution Blueprints & Customers Real-
tim
e
Pers
onalizati
on
Customer Experience
Management
End-to-End Process
Assurance
Business Acceleration
Real time Fraud
Prevention
Risk & Compliance Monitoring
eTrading
Real-
tim
e
Pro
moti
ons
Om
ni-
Channel
Fulf
illm
ent
Reta
il B
ank
Pro
cess
Monit
ori
ng
SAP P
rocess
M
onit
ori
ng
Fast
er
eCom
merc
e
Main
fram
e
Off
load
ATM
Fra
ud
Dete
cti
on
Anti
-money
Launderi
ng
Mark
et
Surv
eilla
nce
Rogue T
rader
Monit
ori
ng
Pre
-tra
de
Ris
k
FX e
Com
merc
e
Alg
ori
thm
ic
Tra
din
g
IBO Platform
IBO Solution Blueprints
Common Use Case Patterns and Solution Accelerators
Data
base
O
fflo
ad
Rati
ng P
rocess
M
onit
ori
ng
Bond
Pri
cin
g
M2M Operational Intelligence
Sm
art
Gri
d
Analy
tics
Energ
y T
heft
D
ete
cti
on
M2M
Pro
cess
O
pti
miz
ati
on
©2014 Software AG. All rights reserved. 32 |
Example: Smart Shipping Logistics
Ship Movements (Sat)
Ship reporting
Port Messages
Detect a ship passing a certain area,
determine the relevance Start appropriate
process
Real-time and historic/enriched
information on ships
Real-time access
to ships’
inventories and
planning
schedules
Real-time tracking
of all entities,
highlighting
efficiencies and
predicted problems
Convey data reliably
from the remote ships
& dock side machines
©2014 Software AG. All rights reserved. 33 |
Trades
Quotes
News
Trader Behavior
Social Media
Example: Avoid Regulatory Fines & Resolve Suspicious
Trading Activity Proactively
Unusual trading activity just
before news release suggests
insider trading
Notify relevant
Compliance
Officer
Compliance staff
visualize trade
abuse alerts; drill in
to investigate
©2014 Software AG. All rights reserved. 34 |
Software AG Suite is a Top-Ranked Technology Leader
Application Integration Suites • • • • •
Application Services Governance • •
Business Process Analysis Tools • • •
Business Process Management Suites • • •
Enterprise Architecture Tools • •
Governance, Risk and Compliance • •
Integrated IT Portfolio Analysis Apps •
Complex Event Processing Platforms • • •
Comprehensive Integration Solutions • • • • •
EA Management Suites •
Elastic Caching Platforms • • •
ESB • • • •
Integrated SOA Governance • •
SOA Service Life-Cycle Management •
©2014 Software AG. All rights reserved. 35 |
Enterprise Digitization – Driving growth of AIM Market
Modern
ESB
SOA, B2B
& other
Modern
BPMS
Addressable AIM
Market Segments= $7.1bn
Addressable AIM
Market Segments = $9.2bn
1.1bn
1.6bn
1.2bn
2.1bn
SOA, B2B
& other
2014 2017 Tradit.
ESB Tradit.
BPMS 1.5bn
1.7bn 2.1bn
1.3bn
3.0bn
0.6bn
Modern
ESB
Modern
BPMS
Tradit.
BPMS
Tradit.
ESB
2.9bn
5.1bn
21% CAGR
9% CAGR
©2014 Software AG. All rights reserved. 36 |
IBM 29%
Pegasystems 10%
Oracle 8%
Software AG 7%
OpenText 4%
Appian 3%
Tibco 3%
Others 36% IBM
29%
Oracle 23%
Microsoft 13%
Tibco 9%
Others 15%
Business Process Management Suite
(BPMS)
Enterprise Service Bus Suite
(ESB)
Source: Source: Gartner: Market Share, All Software Markets, Worldwide, 2013, Colleen Graham et al, 28 March 2014
Market Share in Main Markets: BPSM (Process Management)
and ESB (Integration)
Software AG
11%
©2014 Software AG. All rights reserved.
Appendix
- Financials
©2014 Software AG. All rights reserved. 38 |
Financial Data - Key Figures
in €m, IFRS 2013 2012 2011 2010 2009 2008 2007
Total Revenue 972.7 1,047.3 1,098.3 1,119.5 847.4 720.6 621.3
- License 330.1 318.9 295.2 327.4 269.9 272.0 241.3
- Maintenance 375.6 393.3 378.7 369.4 310.6 267.1 212.9
- Consulting
& Other 267.0 335.1 424.4 422.7 266.9 181.5 167.1
BL BPE 422.9 385.5 339.6 321.5 247.2 210.7 149.9
BL ETS 274.5 310.5 313.9 355.4 328.5 332.1 310.2
BL Consulting 275.4 351.3 444.8 441.4 271.3 177.8 161.1
- BPE/ETS 199.7 n.a. n.a. n.a. n.a. 177.8 161.1
- IDS/SAP 75.7 n.a. n.a. n.a. n.a. n.a. n.a.
EBIT 205.5 248.3 269.2 268.6 218.2 180.5 136.8
Net income 134.0 164.7 177.2 175.6 140.8 115.9 88.4
Dividend (€m, total) 36.3* 38.2 39.9 37.0 32.6 31.5 28.5
Free cashflow 159.1 170.7 187.7 217.8 188.4 133.4 82.2
Net debt (-)
/cash(+) -106.9** +49.7 -60.9 -167.2 -271.8 -70.3 -133.0
Shareholders‘
equity 965.6 1,060.1 951.5 769.3 647.2 549.1 462.5
Employees (FTE) 5,238 5,419 5,535 5,644 6,013 3,526 3,479
* Dividend payment based on 78,859,844 dividend entitled shares (0,46€/share)
** including € 56.5 Mio. Securities
©2014 Software AG. All rights reserved. 39 |
1. Net operating profit after tax = op. PbT ./. tax rate x (op. PbT + goodwill)
2. Return on equity: Operating EBIT / Equity
3. Return on cap. employed: Operating EBIT / (Fixed assets + Working capital)
4. Current assets ./. Cash and Cash Equivalents ./. Current liabilities
FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007
EBITDA margin 26.6% 28.6% 28.7% 28.1% 30.3% 28.6% 25.7%
Operating Margin (Non-IFRS) 26.8% 28.5% n.a. n.a. n.a. n.a. n.a.
Amortization/ Depreciation
5.5% 4.9% 4.2% 4.1% 4.6% 3.5% 2.4%
Operating EBIT margin 21.1% 23.7% 24.5% 24.0% 25.8% 25.1% 23.3%
NOPAT1 margin 13.8% 15.7% 16.1% 15.7% 16.6% 16.1% 15.1%
ROE2 21.3% 23.4% 28.3% 34.9% 33.7% 32.9% 31.8%
ROCE3 14.6% 18.2% 20.5% 27.4% 20.9% 26.2% 22.5%
Net Working Capital in €m4 -€213.5m -€41.6 -€23.8 -€194.4 -€211.3 -€74.1 -€55.0
Working Capital5 24.3% 26.2% 17.5% -8.2% 0.8% 3.2% 4.2%
Free Cash Flow margin6 16.4% 16.3% 17.1% 19.5% 22.2% 18.5% 13.2%
Corporate tax rate 32.0% 31.2% 31.7% 31.0% 32.7% 34.0% 35.4%
WACC7 5.12% 5.1% 5.7% 6.8% 5.5% 6.8% 8.4%
Equity ratio 48.4% 59.8% 56.6% 48.1% 39.1% 51.8% 47.2%
DSO (Days Sales Outstanding) 107 105 93 100 109 120 119
Capex €m €12.7 €13.3 €10.9 €9.7 €12.1 €6.6 €11.8
Capital Employed8 €m €1,346.3 €1,313.0 €1,262.0 €929.6 €1,002.2 €669.9 €655.2
5. Current assets ./. Current liabilities / Total revenue
6. (Operating Cash flow ./. Capex) / Revenue
7. Pro forma, not applied for corporate management
8. Fixed assets + Working capital
Key Financial Ratios (IFRS; in % of revenue)
©2014 Software AG. All rights reserved. 40 |
Euro 36%
US Dollar 26%
Other 10%
GBP 6%
AUD 5%
ZAR 2%
ILS 4%
CAD 3%
BRL 8%
(in €m; yoy)
Q1
2014
Q1
in %
FY
2013
FY
in %
Licenses -3.7 -6.0% -16.9 -5%
Maintenance -4.9 -5.2% -16.4 -4%
Consulting &
Other
-1.1 -1.8% -4.5 -2%
Total -9.7 -4.5% -37.8 -4%
Currency impact on revenue
Currency impact on revenue
Q1 2014 / FY 2013
Currency split FY 2013
Split EUR/USD:
FY 2013: EUR 36%, USD 26%
Q1 2014: EUR 43%, USD 21%
©2014 Software AG. All rights reserved. 41 |
(in €m) Q1
2014
Q1
2013
Δ% Δ% acc
FY
2013
FY
2012
Δ% Δ% acc
Product 147.4 157.1 -6% -1% 705.7 712.2 -1% 4%
Licenses 57.1 63.6 -10% -4% 330.1 318.9 4% 9%
Maintenance 90.3 93.5 -3% -2% 375.6 393.3 -5% -
Consulting & services 61.3 67.5 -9% -8% 266.0 333.3 -20% -19%
Other 0.2 0.3 -33% -33% 1.0 1.8 - -
Total 208.9 224.9 -7% -3% 972.7 1,047.3 -7% -4%
Excluding IDS
(proforma)
195.1 203.9 -4% 0% 897.3 n.a. n.a. n.a.
Group Revenue Q1 2014 / FY 2013
©2014 Software AG. All rights reserved. 42 |
Segment report Q1 2014 / FY 2013
Business Process Excellence (BPE)
(in €m) Q1
2014
Q1
2013
Δ% Δ% acc
FY
2013
FY
2012
Δ% Δ% acc
Licenses 43.7 41.9 4% 10% 220.1 194.7 13% 18%
Maintenance 51.6 48.4 7% 11% 202.8 190.0 7% 11%
Total revenue 95.3 90.3 6% 11% 422.9 384.7 10% 15%
Cost of sales -5.7 -5.8 -2% 2% -22.4 -18.8 19% 23%
Gross profit 89.6 84.5 6% 11% 400.5 365.9 9% 14%
Sales & marketing -49.1 -46.0 7% 11% -201.5 -137.3 47% 53%
R & D -20.9 -19.7 6% 7% -82.5 -74.9 10% 12%
Segment result 19.6 18.8 4% 16% 116.5 153.7 -24% -19%
©2014 Software AG. All rights reserved. 43 |
Segment report Q1 2014 / FY 2013
Enterprise Transaction Systems (ETS)
(in €m) Q1
2014
Q1
2013
Δ% Δ% acc
FY
2013
FY
2012
Δ% Δ% acc
Licenses 13.3 21.1 -37% -30% 107.4 121.3 -11% -6%
Maintenance 37.6 43.2 -13% -7% 166.4 188.3 -12% -7%
Product revenue 50.9 64.3 -21% -15% 273.8 309.6 -12% -7%
Other 0.2 0.2 - - 0.7 0.9 - -
Total revenue 51.1 64.5 -21% -15% 274.5 310.5 -12% -7%
Cost of sales -3.3 -3.8 -13% -6% -14.1 -15.6 -10% -6%
Gross profit 47.8 60.7 -21% -15% 260.4 294.9 -12% -7%
Sales & marketing -9.1 -13.8 -34% -31% -50.4 -61.7 -18% -15%
R&D -6.2 -6.5 -5% -4% -25.3 -26.1 -3% -3%
Segment result 32.5 40.4 -20% -11% 184.7 207.1 -11% -5%
©2014 Software AG. All rights reserved. 44 |
(in €m) Q1
2014
Q1
2013
Δ% Δ% acc
FY
2013
FY
2012
Δ% Δ% acc
Licenses 0.1 0.6 -83% -86% 2.6 2.9 -10% -9%
Maintenance 1.1 1.9 -42% -41% 6.5 15.0 -57% 57%
Product revenue 1.2 1.8 -52% -52% 9.1 17.9 -49% -49%
Services & other 61.3 67.5 -9% -8% 266.3 334.2 -20% -19%
thereof BPE/ETS 48.7 49.0 - 2% 199.7 n.a. n.a. n.a.
Total revenue 62.5 70.1 -11% -9% 275.4 352.1 -22% -20%
Cost of sales -51.9 -60.2 -14% -12% -232.6 -320.0 -27% -26%
Gross profit 10.6 9.9 7% 9% 42.8 32.1 33% 37%
Sales & marketing -7.3 -9.6 -24% -22% -33.5 -33.8 -1% 3%
Segment result 3.3 0.3 - - 9.3 -1.7 >100% >100%
Segment report Q1 2014 / FY 2013
Consulting
©2014 Software AG. All rights reserved. 45 |
44
Results Q1 2014 / FY 2013
(in €m) Q1
2014
Q1
2013
Δ% FY
2013
FY
2012
Δ% Δ% acc
Total revenue 208.9 224.9 -7% 972.7 1,047.3 -7% -4%
Cost of sales -68.0 -75.8 -10% -294.6 -378.4 -22% -21%
Gross profit 140.9 149.1 -5% 678.1 668.9 1% 6%
Margin in % 67.4% 66.3% 69.7% 63.9%
R & D -27.2 -26.2 4% -107.9 -101.1 7% 8%
Sales & marketing -69.4 -72.8 -5% -300.1 -246.9 22% 26%
Administration -19.1 -17.8 7% -73.2 -75.8 -3% -2%
Other
income/expense 5.3 9.4 - 8.6 3.2 - -
EBIT (before all taxes) 30.4 41.6 -27% 205.5 248.3 -17% -10%
©2014 Software AG. All rights reserved. 46 |
Operating Results (Non-IFRS) Q1 2014 / FY 2013
44
* Based on average outstanding shares: Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m // FY 2013: 83.7m / FY 2012: 86.8m
(in €m) Q1
2014
Q1
2013
FY
2013
FY
2012
EBIT (before all taxes) 30.5 41.6 205.5 248.3
Amortization on acquisition related
intangible assets 11.1 9.4 40.4 38.1
EBITA 41.5 51.0 245.9 286.4
Reduction acquisition related product
revenue by purchase price allocation 0.3 - 1.2 1.0
Other acquisition impacts -2.7 -3.0 1.7 0.6
Share based payment 1.5 -0.6 -0.7 7.9
Restructuring/severances 2.3 1.5 12.6 3.0
Operating Result (Non-IFRS) 43.0 48.9 257.6 298.9
in % of revenue (Non-IFRS) 20.6% 21.7% 26.8% 28.5%
NOPAT (Non-IFRS) 27.7 32.4 172.9 200.7
EPS (Non-IFRS)* 0.34 0.38 2.07 2.31
©2014 Software AG. All rights reserved. 47 |
Earnings IFRS Q1 2014 / FY 2013
* Weighted average shares outstanding (basic) Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m / FY 2013: 83.7m / FY 2012: 86.8m
(in €m) Q1
2014
Q1
2013
Δ% FY
2013
FY
2012
Δ%
EBIT (before all taxes) 30.5 41.6 -27% 205.5 248.3 -17%
Financial result -2.9 -1.3 123% -8.4 -8.8 -5%
Profit before taxes 27.6 40.3 -32% 197.1 239.5 -18%
Other taxes -1.6 -1.8 -11% -7.1 -8.0 -11%
Income taxes -7.4 -11.3 -35% -56.0 -66.8 -16%
Tax rate in % 32.6% 32.5% 32.0% 31.2%
Net Income 18.6 27.2 -32% 134.0 164.7 -19%
EPS in €* 0.23 0.32 -28% 1.60 1.90 -16%
©2014 Software AG. All rights reserved. 48 |
Cash flow Q1 2014 / FY 2013
* Cash flow from investing activities except acquisitions and except investments in debt instruments
** Based on average outstanding shares: Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m / FY 2013: 83.7m / FY 2012: 86.8m
(in €m) Q1
2014
Q1
2013
Δ% FY
2013
FY
2012
Δ%
Operating cash flow 50.1 65.4 -23% 171.8 184.4 -7%
./. CapEx* -2.3 -2.7 -12.7 -13.7
Free cash flow 47.8 62.7 -24% 159.1 170.7 -7%
as % of revenue 22.9% 27.9% 16.4% 16.3%
Free cash flow per share** 0.60 0.73 -18% 1.90 1.97 -4%
©2014 Software AG. All rights reserved. 49 |
105.9
March 31,
2014
March 31,
2014
1,935.9 1,935.9
480.7
281.9
94.4
1,078.9
612.9
268.2
138.2
916.6
Cash and cash
equivalents/
Securities
Trade receivables
Inventory,
other assets
Fixed assets
(goodwill
820.7/829.2)
Total
Financial liabilities
Other liabilities
Deferred income
Shareholders equity
(ratio 47.4%/48.4%)
Total
Assets Liabilities
Balance sheet
(in €m)
Dec. 31,
2013 Dec. 31,
2012
1,996.9
613.4
309.9
108.0
965.6
1,996.9
506.5
323.2
57.3
1,109.9 951.5
1,680.7
277.4
345.9
Dec. 31,
2013
1,069.2
216.5
317.9
77.1
1,680.7
Dec. 31,
2012
©2014 Software AG. All rights reserved. 50 |
Amortization / depreciation impact 2014ff (preliminary)
* Estimated
Amortization IDS
(in €m)
Amortization other
Depreciation
Q1
2014
2.7
8.3
3.0
24.0
11.6
FY
2015ff*
7.8
FY
2014
10.6
29.0
11.6
FY
2013
10.6
29.8
12.9
©2014 Software AG. All rights reserved. 51 |
Headcount by functional areas* and geography
* According to P+L structure
(in FTE) Mar.31,
2014
Dec.30,
2013
Δ% qoq
Mar. 31,
2013
Δ% yoy
Total 5,108 5,238 -2% 5 5,300 -4%
Consulting & services 2,283 2,347 -3% 2,456 -7%
R & D 995 998 - 901 10%
Sales & marketing 1,131 1,180 -4% 1,213 -7%
Administration 699 713 -2% 730 -4%
USA 752 778 -3% 729 3%
Germany 1,663 1,711 -3% 1,727 -4%
Rest of world 2,693 2,749 -2% 2,844 -5%
©2014 Software AG. All rights reserved. 52 |
*Source: ThomsonOne, January 2014
Number of total shares: 86,943,945
Freefloat: ~ 62%
Indices: TecDAX, DAX 100, TechAllShare
Codes: SOW, SOW GR, SOWG.DE
ISIN: DE0003304002
ADR U.S. trading symbol: STWRY
Share Data
Major Institutional Investors
Shareholder Structure
Shareholder Structure
Institutional Investors by Region*
Software AG Foundation
Institutional Investors
Private & undisclosed
25% 29%
37%
30%
23%
14%
8%
12% Germany
US
UK
Scandinavia
France
Rest of World
7%
Own Shares**
9%
**as of February, 2014
Fidelity (FMR LLC) 3.5%
Deutsche Asset & Wealth 3.3%
Templeton 3.0%
Alken 2.9%
Deka 2.9%
BeNeLux 6%
©2014 Software AG. All rights reserved.
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@SoftwareAG_IR
Investor Relations
Uhlandstrasse 12
64297 Darmstadt
Germany
phone: +49 (0) 6151 / 92 1900
fax: +49 (0) 6151 / 9234 1900
softwareag.com
e-mail: investor.relations@softwareag.com
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