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IOT @ SOFTWARE AG THE NEW GROWTH DRIVER

KARL-HEINZ STREIBICH

CEO SOFTWARE AG

DBACCESS BERLIN CONFERENCE – JUNE 8, 2018

© 2018 Software AG. All rights reserved.

2 |

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.


SAFE-HARBOR-STATEMENT

3 |

2017 WAS ONE OF THE MOST SUCCESSFUL YEARS


IN SOFTWARE AG‘S HISTORY

IoT Portfolio

ready

223 €m

operating

EBIT 31.8%

Operating

margin

52%

Digital

product

revenues (Percentage of

Group Revenue)

Cloud order

entry

+75%

879 €m

Group

Revenue

Recurring

Revenue from

software

products 63%

4 |

2018 TURNING POINT / DIGITAL BUSINESS DRIVING GROWTH


0%

20%

40%

60%

80%

100%

2010

License Revenue

0%

20%

40%

60%

80%

100% Maintenance Revenue

2012

0%

20%

40%

60%

80%

100% Segment Result

Digital Business Platform

Adabas & Natural

2018e

5 |

STRONG STARTING POSITION


FROM ENTERPRISE IT TO OPERATIONAL IT (INDUSTRY)

Platform

economy

Internet

of Things

Process

automation and

transparency Industrie 4.0

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SOFTWARE AG IOT PLATFORM CAPABILITES ACQUISITIONS TO CATER THE IOT NEEDS

2011 2013 2016


2017

Big Data & Streaming

Analytics

Artificial Intelligence

Machine Learning

Edge Computing

Device Connectivity

IoT Acquistions

Blockchain

2010

Strategic

decision

for IoT

7 |

ESSENTIAL CAPABILITIES TO SUCCEED IN IOT


Big Data &

Streaming Analytics

Edge Computing Device Connectivity

IoT

Artificial Intelligence

Machine Learning

Blockchain

8 | © 2018 Software AG. All rights reserved.

The Forrester Wave™:

HYBRID INTEGRATION

(SAG WebMethods)

Gartner Magic Quadrant:

Full Life Cycle API

Management

IoT Solutions

(SAG Cumulocity*)

The Forrester Wave™:

STREAMING ANALYTICS

(SAG Apama)

*Cumulocity is the IoT solution portfolio of Software AG

encompassing Hybrid Integration, In-Memory

Computing and Streaming Analytics

MARKET AWARENESS OF LEADERSHIP IS BUILDING UP BEST IOT TECHNOLOGY PARTNER IN THE MARKET…

Source: Gartner, Inc., Magic Quadrant for Full Life Cycle API Management, Paolo Malinverno, Mark O’Neill., April 30, 2018 This graphic was published by

Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon

request from Software AG. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology

users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research

organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including

any warranties of merchantability or fitness for a particular purpose.

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CUSTOMER BASE IS MATCHING IOT GROWTH SECTORS


20%

19%

18%

12%

10%

4% 5%

12%

Government Financial Services

IT Services Manufacturing

Services Telco & Media

Transp. & Log. Other

Product Revenue by

Sector of Software AG in 2017 IoT demand by Sector (2015-2020)

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Strengthening Mindsphere platform across

industries enabling powerful industry applications


SOFTWARE AG’S SUCCESS STORIES IN IOT IOT ECOSYSTEMS – INDUSTRY 4.0, TELCOS, AUTOMOTIVE, …

JV of leading machinery manufactures:

DMG MORI, DUERR, ZEISS, ASM, ENGEL,

KARL MAYER

Leveraging Bosch IoT Cloud platform with Real-

time predictive analytics technology

Enabling customers to use geo-sensing alerts,

reduce theft and anticipate maintenance needs

KPN (NL), Telstra (AUS), Telia (SWE), Reliance

Communications (India), NTT (Japan), Deutsche Telekom

(T-Systems), Nokia or Huawei.

Transforming auto insurance through behavioral,

contextual and driving analytics

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ADAMOS.COM

ADAMOS TOTAL VIEW

APP FACTORY

ALLIANCE

PARTNER

ECO SYSTEMS

ADAMOS

JV

… App App

APP MARKET PLACE

APP INNOVATION

& CERTIFICATION

COUNCIL

App App App

App App App App

ADAMOS

IoT SUITE

GOVERNANCE (Standards, Interfaces, …)

App App App App App App App

NEW

Enterprise & Cloud Integration

Device

Connectivity &

Management

Real-time

Analytics &

Visualization

Workflow

Automation …

NEW

App App

NEW


12 |

EXAMPLE:


UM AP

Source: Bosch

13 |

OUR ROLE IN THE MINDSPHERE ARCHITECTURE


EXTENDS WAYS TO SEND DATA INTO MINDSPHERE

Add cloud-based and

on-premise data

IoT Extensions Extend Data model

Simplified integration of IT,

OT and cloud applications

Extends range of IoT devices

Combines device identity, asset

and software management

Use other customizable software

agents on custom devices

… Universal Connectivity

Integration

MindConnect API

Combine Machine Data

14 |

DATA CENTERED ERA REQUIRES SOFTWARE CENTRICITY


Source: Morgan Stanley Research, The Data Era Becomes Investable, April 9, 2018

Entering the next computing cycle – which is centered on data…

Software AG is ready to reap proceeds from higher IT investments by providing a comprehensive

workbench along the value IT chain.

Software AG has singled out a distinct area of growth in (industrial) IoT to leverage its capabilites

to the next level.

Source: Bain & Company, 2017

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THANK YOU VERY MUCH FOR YOUR ATTENTION! Q&A


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Investor Relations

Uhlandstrasse 12

64297 Darmstadt

Germany

T: +49 (0) 6151 / 92 1900

F: +49 (0) 6151 / 9234 1900

W: softwareag.com

E: [email protected]


mailto:[email protected]

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