ISTUG Update

Bill HillMarketing Director

Enterprise Solutions Division

Agenda

Recent Financial Results New Appointments Channel Restructure Going Vertical Linux and IBM Customer Focus

Financial Performance

Turnover increased by 14% to £551.7m

Pre-tax profit grew 11% to £135.2m

Over 200,000 new customers added (excluding Interact), bringing the total to 3.0m up by 7%

Strong financial performance by Interact: operating margin of 14% on revenues of £54m

Share price increase 22% over last 3 months

Turnaround in Enterprise Division

New Appointments

New Managing Director• Gavin May

New Head of Product Marketing• Graham Cardwell

Channel Restructure

Channel restructure based on quality and quantity from 70 partners to :

• 7 Strategic Partners• 3 Premier Business Partners• 14 Business Partners• 10 Accredited Resellers

Major investment in Training and Accreditation

The Ideal Vertical Market Solution

Sage Line 500 for Manufacturing

Sage Line 500 for Distribution

Sage Line 500 for Construction

Sage Line 500 for Services

Sage Line 500 for Public Sector and Not For Profit

Vertical Market Development

Objective : To increase the effectiveness of our business and application development by focussing on discrete market sectors where we have good credible competence and reference ability.

• Partner Business PlansDevelop specific business plans for each of our to ten resellers. The plans will deliver the specific SIC codes that the partner can demonstrate significant domain knowledge and higher than average win ratio

• Create Centres of ExpertiseThis will include bringing together our channel partners, our product specialists, industry consultants and our customers

• Acquisition Acquire complimentary software companies that are critical to the success of the vertical market programmes

Linux and IBM

Sage Line 500 on x-series, Windows, IDS, Oracle, SQL Server available for over 2 years

Sage Line 500 on p-series, AIX, IDS and Oracle available for over 2 years

Sage Line 500 on x-series,Linux and IDS available NOW on Early Adopter and GA 2003

Sage Line 500 on i-series, Linux and DB2 available NOW on Early Adopter and GA January 2003

Customer Focus

Customer Newsflashes - first issue sent December 5thGiving you regular information hot off the press

New Customer Newsletter - first issue out January 2003Giving you a useful and informative medium to find out more about Sage

Customer Open Day - end of February 26th and 27th 2003A chance for you, the customer, and Sage to get together

To include:• The long awaited Product Roadmap

• Information on the services available from Sage (such as PFS & CPD)

Dedicated Customer Area on Sage website - coming soonCentral place to get the information relevant to you

Customer Focus

Sage currently offers 2 types of service (which includes Support, Account Management and Communications):

for Resellers for Direct Customers

BUT… there is nothing currently in place for corporate customers dealing with the reseller channel

no formal procedure no process for communication

We want to know how big an issue this is and what we should do about it ?

Any questions?