Post on 11-Jul-2020
5 February 2020
Capital Markets
Day
OTMAR WINZIG
HEAD OF INVESTOR RELATIONS
OPENING REMARKS
3 |
Time Subject Presenter
09.00 – 09.05 Welcome & Opening Remarks Otmar Winzig, SVP Investor Relations
09.05 – 09.35 Helix Year 2 – Momentum & Impact Sanjay Brahmawar, Chief Executive Officer
09.35 – 10.10 Financial Metrics and KPIs Arnd Zinnhardt, Chief Financial Officer
10.10 – 10.35 Go-to-Market Growth Strategy John Schweitzer, Chief Revenue Officer
10.35 – 10.55 Q&A (1) CEO, CFO & CRO
10.55 – 11.15 Coffee Break
11.15 – 11.35 Product Leadership Dr. Stefan Sigg, Chief Product Officer
11.35 – 11.55 Market Vision & Strategy Bernd Gross, Chief Technology Officer
11.55 – 12.15 Marketing Impact Paz Macdonald, Chief Marketing Officer
12.15 – 12.30 People & Culture Dr. Elke Frank, Chief Human Resources Officer
12.30 – 12.55 Q&A (2) All Presenters
12.55 – 13.00 Closing Remarks Otmar Winzig, SVP Investor Relations
13.00 – 14.00 Networking Lunch
14.00 – 16.45 Breakout sessions (separate agenda)
16.45 End of eventTO
DA
Y’S
AG
EN
DA
3 © 2020 Software AG. All rights reserved.
4 |
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 techno-
logies 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.
© 2020 Software AG. All rights reserved.
SAFE HARBOR STATEMENT
4
Sanjay Brahmawar
Chief Executive Officer
HELIX: YEAR TWO
MOMENTUM & IMPACT
6 | © 2020 Software AG. All rights reserved.
The renewed power of our
platform
Uniquely positioned in
growth markets
2020 investments and
demonstrating returns
OUR GOALS FOR TODAY
ENGAGING YOU IN OUR MOMENTUM
TRANSFORMATION OPPORTUNITY CLARITY
6
7 |
HELIX – ONE YEAR AGO TODAY
50YEARS
7 © 2020 Software AG. All rights reserved.
8 |
2011 2012 2013 2014 2015 2016 2017 2018
CASE FOR CHANGE
REVENUE GROWTH TRAJECTORY 2011 – 2018
8 © 2020 Software AG. All rights reserved.
9 |
EVOLVING OUR HELIX JOURNEY
AN ENTIRELY NEW COMPANY FROM THE INSIDE, OUT
2019 2020 2021 – 23
Lay
FoundationBuild
Momentum
Accelerate toward
€1bn
Analyst report
lead positions
New Logos
DBP rev
Subs/SaaS
ARR growth
Bookings
Subs/SaaS
© 2020 Software AG. All rights reserved.
Record-high
Product NPS
9
10 |
EVOLVING OUR HELIX JOURNEY
INVESTING IN MOMENTUM & IMPACT
2019 2020 2021 – 23
Lay
FoundationBuild
Momentum
Accelerate toward
€1bn
© 2020 Software AG. All rights reserved. 10
11 | © 2020 Software AG. All rights reserved.
OPPORTUNITY IS OUR CATALYST
TARGET MARKETS IGNITING
IT
Transformation
budgets
Largest for 15
years1
$18 bn
$12 bn
Integration
Platform Market
TAM 2
2017
2022
$25.6 bn
$9.5 bn
IoT Platform
Market
TAM 3
2017
2023
(1) 2019 Harvey Nash / KPMG CIO Survey; (2) Gartner Inc.; (3) McKInsey
+50% +18% CAGR
11
12 |
OPPORTUNITY TO CLAIM NEW TERRITORY
THREE EMERGING AREAS TO MAKE OUR OWN
Connected Customer
Experience
Hybrid & Multi
Cloud
Operational
Excellence
© 2020 Software AG. All rights reserved.
“12 million new IoT
devices acquired per
day by 2022” 1
(1) Gartner Inc. ‘IoT Forecast Statistics’ 2019; (2) Gartner Inc. ‘Innovation Insight for Hybrid Integration Platforms’ 2019;
(3) Gartner Inc. ‘Application Strategies and Solutions Summit’ 2019.
“2022: 65% of global
organizations will have
implemented a hybrid
integration platform” 2
“Through 2020,
integration will
consume 60% of time
and cost of building a
digital platform” 3
12
13 |
OPPORTUNITY IN OUR EDGE
CHANGING OUR COMPETITIVE DYNAMIC
• Greater cohesion in our Integration, B2B, API products
• Clarity of positioning in key growth markets
• Integration, iPaaS and IoT capabilities our ‘edge’
• Winning against – and replacing
• Customer engagement model vs. product model
• A&N installation eases integration
• Stability, simplicity, robustness and uptime
• Ease of use, ease of migration
© 2020 Software AG. All rights reserved. 13
14 |
OPPORTUNITY, UNLOCKED
5 LINKED INVESTMENT AREAS
Targeting €1bn Group
Revenue in 2023
© 2020 Software AG. All rights reserved. 14
15 |
BUILDING ON 2019 ADVANCES
IDENTIFYING STRENGTH, INVESTING BEHIND IT
EMEA & APJ
double digit
NAM stable &
predictable
50% MQL
contribution
280 deals
ARR +10%
51.5% Bookings
Subs/SaaS
20
19
1st Adobe wins
+$20m Microsoft
pipeline
Culture Survey
+185 FTE
20
20
Business Model Quality
Sales Excellence Demand Generation
Customer Success
Pricing & Packaging
Partner Activation
Alliances
Talent & Leadership
People
15 © 2020 Software AG. All rights reserved.
16 |
The renewed power of our
platform
Uniquely positioned in
growth markets
2020 investments and
demonstrating returns
OUR GOALS FOR TODAY
ENGAGING YOU IN OUR MOMENTUM
TRANSFORMATION OPPORTUNITY CLARITY
© 2020 Software AG. All rights reserved. 16
Arnd Zinnhardt
Chief Financial Officer
Financial
Model & KPIs
18 |
DBP – Cloud & IoT Product Bookings
DBP (excl. Cloud & IoT) – Product Bookings
A&N – Product Bookings
Operating Margin Group
(EBITA non-IFRS)2)
DBP ex IoT – Product Bookings
OUTLOOK
FULL YEAR 2020
1) At constant currency rates2) Adjusted for non-operating items (see non-IFRS earnings results)
FY 2019(in €m)
PRELIMINARY
100.8
241.1
29.2%
65.9
FY 2020 Outlook (as of January 29, 2020)
20% to 22%
-3% to +3%1)
+40% to +60%1)
+10% to +15%1)
18 © 2020 Software AG. All rights reserved.
19 |
WHY BOOKINGS?
However, honoring IFRS standards, the mode of
deployment determines the point in time when
revenue is recognized.
“IFRS Revenue” is not the best metric to measure
sales success when using a mixed license model
Therefore, we introduce “Bookings” as the new
KPI to track customer adoption and to measure
sales success.
…is the normalized 3-years’ commitment of a
customer for our products*. It does not make any
difference whether the customer consumes the
products as a perpetual license, a subscription or
as a service.
The market success of a company must be
derived from the customers’ adoption of its
products. In this context the deployment and
consumption model of its products is irrelevant.
Deployment Model IFRS Standards
Indicator for Sales success The way we define “Bookings”
* Professional Services sold to our customers are not considered for Bookings
19 © 2020 Software AG. All rights reserved.
20 |
REVENUE RECOGNITION REFRESH
DEPLOYMENT MODEL REVENUE RECOGNITION
PERPETUAL Licenses: upfront Maintenance: pro-rata
SUBSCRIPTIONLicenses: upfront
for period of commitment Maintenance: pro-rata
SAAS pro-rata
20 © 2020 Software AG. All rights reserved.
21 |
BOOKINGS DEFINITION – BY DEPLOYMENT
1 only new Maintenance is considered for Bookings. In case of License without Maintenance contracts, only License value is considered for Bookings2 Annual Contract Value (ACV) equals Total Contract Value (TCV) divided by contract duration; For contracts with a duration of 90 - 365 days, the TCV is considered for Bookings; Contracts with a duration
smaller 90 days are not considered for Bookings
DEPLOYMENT
MODEL
CONSIDERED FOR
BOOKINGS
BOOKING
CALCULATION
NEW ✓Total License Value
plus 3 Years annual Maintenance1
RENEWALS(MAINTENANCE) No impact on Bookings
NEW ✓
RENEWALS ✓
NEW ✓
RENEWALS ✓
SAAS
Annual Contract value
times 3 years2
(ACV x 3)
Annual Contract value
times 3 years2
(ACV x 3)
SALES EVENT
PERPETUAL
SUBSCRIPTION
21 © 2020 Software AG. All rights reserved.
22 |
FROM BOOKINGS TO REVENUE – YEAR 1
EXAMPLE PER DEPLOYMENT MODEL
DEPLOYMENT MODELCONTRACT
START DATE
BOOKINGS REVENUE
YEAR 1 YEAR 1
PRODUCT License Maint. PRODUCT License Maint.
PERPETUALJAN 1st 1.600 1.000 600 1.200 1.000 200
DEC 31st 1.600 1.000 600 1.000 1.000 0
SUBSCRIPTIONJAN 1st 1.600 1.000 600 1.200 1.000 200
DEC 31st 1.600 1.000 600 1.000 1.000 0
SUBSCRIPTION
with annual termination right
JAN 1st 1.600 1.000 600 533 333 200
DEC 31st 1.600 1.000 600 333 333 0
SAASJAN 1st 1.600 - - 533 - -
DEC 31st 1.600 - - 0 - -
TOTALJAN 1st 6.400 ~ 3.500
DEC 31st 6.400 ~ 2.300
22 © 2020 Software AG. All rights reserved.
23 |
FROM BOOKINGS TO REVENUE – MID-TERM
EXAMPLE PER DEPLOYMENT MODEL(Contract START DATE JAN 1st)
DEPLOYMENT MODEL
YEAR 1 Y2 Y3 Y4 YEAR 1 Y2 Y3 sum Y1-Y3 Y4 Y5 Y6 sum Y4-Y6
PERPETUAL 1.600 - - - 1.200 200 200 1.600 200 200 200 600
SUBSCRIPTION 1.600 - - 1.600 + 1.200 200 200 1.600 1.200 + 200 + 200 + 1.600 +
SUBSCRIPTIONwith annual termination right
1.600 - - 1.600 + 533 533 533 1.600 533 + 533 + 533 + 1.600 +
SAAS 1.600 - - 1.600 + 533 533 533 1.600 533 + 533 + 533 + 1.600 +
TOTAL 6.400
PRODUCT BOOKINGS PRODUCT REVENUE
23 © 2020 Software AG. All rights reserved.
24 |
TOTAL REVENUE MID-TERM DEVELOPMENT
Adabas & Natural
Professional Services
DBPfrom existing contracts
DBP
from new contracts
m€
1.000
2019 2020 2021 2022 2023
24 © 2020 Software AG. All rights reserved.
25 |
25 – 30%
Operating
Margin
Digital
Business
~15% CAGR
Group
Revenue
€1B+
85% – 90%
Recurring
Product
Revenue
2023
Accelerated growth,
higher quality and
higher visibility
of revenues,
good margin and
cash generation
OUR AMBITION
© 2020 Software AG. All rights reserved. 25 © 2020 Software AG. All rights reserved.
26 |
FROM BOOKINGS TO REVENUE
REVENUE FACTORS
BOOKINGS
VALUE
REVENUE
RECOGNIZED
▪ Deployment Model
▪ ~50% of subscription contracts
with annual termination rights
▪ Normalized Seasonality*
*Pro-Rata components (applicable for Maintenance & SaaS) are considered with an assumed contract start
date July 1st. Therefore 50% of 1st year amount is considered in Factor for Year 1
REVENUE FACTORper Deployment Model
FACTORS*
for YEAR 1YEAR 2
~ 0,7
1€ Booking = ~0,7€ Revenue
SUBSCRIPTION ~ 0,7 ~0,1
SUBSCRIPTIONwith annual termination right
~ 0,3 ~0,3
SAAS ~ 0,2 ~0,3
PERPETUAL ~0,1
26 © 2020 Software AG. All rights reserved.
27 |
FROM BOOKINGS TO REVENUE
DETAILED CALCULATIONS
EXAMPLES YEAR 1 YEAR 2
PERPETUAL
SUBSSCRIPTION
LICENSE: 1000 / 1600 = 0.625
MAINTENANCE: (200 / 2) * (1 / 1600) = 0.063
TOTAL: 0.625 + 0.063 = 0.688
= ~ 0.7
w/ annual
cancellation
LICENSE: 333 / 1600 = 0.208
MAINTENANCE: (200 / 2) * (1 / 1600) = 0.063
TOTAL: 0.208 + 0.063 = 0.271
= ~ 0.3
200 / 1,600 = 0.125
= ~ 0.1
333 / 1600 = 0.208
200 / 1,600 = 0.125
0.208 + 0.125 = 0.333
= ~ 0.3
27 © 2020 Software AG. All rights reserved.
© 2020 Software AG. All rights reserved.
EXPECTED DEPLOYMENT MIX 2020
SEGMENT
DEPLOYMENT
MODEL
Digital Business
Platform(excl. IoT & Cloud)
IoT & CloudAdabas &
Natural
TOTAL
PRODUCT
BUSINESS
PERPETUAL 40 - 50 % 5 - 10 % 90 - 100 % 50%
SUBSCRIPTION 50 - 60 % 40 - 50 % 0 - 10 % 40%
SAAS 50 - 55 % 10%
28
29 |
BOOKINGS 2019
Q1 Q2 Q3 Q4TOTAL
YEAR
Digital Business Platform
(excluding Cloud & IoT)34.9 43.7 58.8 103.7 241.1
IoT & Cloud 14.1 17.9 14.8 19.1 65.9
Adabas & Natural 21.4 21.9 28.3 29.2 100.8
*Applies to Subscription & SaaS contracts: Annual Contract Value (ACV) equals Total Contract Value (TCV) divided by contract duration; For contracts with a duration of 90 - 365 days, the TCV is considered for
Bookings; Contracts with a duration smaller 90 days are not considered for Bookings.
29 © 2020 Software AG. All rights reserved.
30 |
INVESTMENTS
2020 VS 2019
DETAILED BREAKDOWNGTM
~50% PRODUCT
R&D
~40%
People &
Culture
~10%
Total €40m – €50m
30 © 2020 Software AG. All rights reserved.
John Schweitzer
Chief Revenue Officer
GTM Growth
Strategy
32 | © 2020 Software AG. All rights reserved. For internal use only
Trusted innovation partner
Addressing mega trends
New business model
Long term vision
WHY I’M EXCITED
32 © 2020 Software AG. All rights reserved.
33 | © 2020 Software AG. All rights reserved. For internal use only
2019 FOUNDATION
New GTM Architecture
New Specialization
• 27% new logos
• 0 → 25% resources
New Sales Leadership
DBP+IOT pipe >3x
AE Participation
• 34% → 62%
• 76% improvement
New Mega Partners
Content & Training
Align w Prof. Services
Contracts
Sales Methodology
Industry Content
GLOBAL GTMNORTH
AMERICA
ALLIANCES &
CHANNELSSIMPLIFIED
33 © 2020 Software AG. All rights reserved.
34 | © 2020 Software AG. All rights reserved. For internal use only
GTM ARCHITECTURE
STANDARDIZED AND IMPROVED
Enterprise
Corporate
Strategic Accounts
Enterprise Accounts
Corporate Accounts
Pipe & Rev
Support
Sa
les
Deve
lop
me
nt
Ins
ide
Sa
les
Partner
Ecosystem
Ind
ep
en
den
t S
oft
wa
re V
en
do
rs
Co
-se
ll
Dis
trib
uti
on
Sys
tem
In
teg
rato
rs
Pre
sa
les
Sp
ec
iali
sts
Cu
sto
me
r S
uc
ce
ss
34 © 2020 Software AG. All rights reserved.
35 |35 |
2020 MANDATE
DEVELOP DELIVERDELIGHT
our customers world class sales
organization
strong double-digit
bookings growth
1H Pipeline
3x DBP & 6x IoT
Participation
42% → 65%
NPS
18 → 44+
FOCUSED EXECUTION
35 © 2020 Software AG. All rights reserved.
36 |36 | © 2020 Software AG. All rights reserved.
2020 GROWTH STRATEGY
CRITICAL SUCCESS FACTORS
Leverage new business model
Ignite alliances and channels
Accelerate demand generation
Sharpen sales excellence
GROWTH
36
37 |
LEVERAGE NEW BUSINESS MODEL
ALL READY FROM DAY ONE OF 2020
Product Bundles
Usage Tiers
New metric - transactions
PRICING &
PACKAGINGSUBSCRIPTION
Customer choice
Increase velocity
Simple contracts
CUSTOMER
SUCCESS
Solution adoption
Protect the baseline
Expand
37 © 2020 Software AG. All rights reserved.
38 |
IGNITE ALLIANCES AND CHANNELS
BUILDING FOR GROWTH: MID-TERM CAGR 40%+
INDEPENDENT SOFTWARE
VENDORSOEMs
SYSTEM INTEGRATORS RESELLERS AND DISTRIBUTORS
TECHNOLOGY
ALLIANCES
38 © 2020 Software AG. All rights reserved.
39 |
IGNITE ALLIANCES AND CHANNELS
KEY NEW PARTNERSHIPS
• What: Adobe Experience Platform
• Products: WM.io
• Route-to-market: OEM / co-sell
• Pipeline Focus
• Marketo OEM
• 20+ opportunities
• >1m pipeline
• Net new logo focused
• What: consume Azure faster / IoT
• Products: WM.io and Cumulocity
• Route-to-market: co-sell
• Pipeline focus
• 30+ opportunities – Partner
Center
• 20m+ pipeline in 4Q19 alone
• Regions: NA & EMEA
39 © 2020 Software AG. All rights reserved.
40 |
GTM INVESTMENT AREAS
SPLIT AND IMPACT
Marketing25%
Regions30%
Customer Success
20%
Alliances and Channels
25%
50% increase in Field Marketing;
Pipeline
Increase in Sales Capacity;
Bookings Growth
New Talent and Data Platform;
Increase ARR, Net Retention and NPS
Increase in Capacity;
Channel Bookings Growth
40 © 2020 Software AG. All rights reserved.
41 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &
Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
Business
Transformation
Business
Automation
Measurement
& Control
Enterprise Architecture
Management
Roll-Out & Governance
Business Design & Planning
Integrated
Portfolio
Management
Strategy
Synch
Integration
& API
Low Code App Development
App & Cloud & Data
Integration
B2B Integration
API Management
In-Memory
Data
Management
Messaging
41 © 2020 Software AG. All rights reserved.
42 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &
Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
Business
Transformation
Business
Automation
Measurement
& Control
Enterprise Architecture
Management
Roll-Out & Governance
Business Design & Planning
Integrated
Portfolio
Management
Strategy
Synch
Integration
& API
Low Code App Development
App & Cloud & Data
Integration
B2B Integration
API Management
In-Memory
Data
Management
Messaging
42 © 2020 Software AG. All rights reserved.
43 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &
Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
Business
Transformation
Business
Automation
Measurement
& Control
Enterprise Architecture
Management
Roll-Out & Governance
Business Design & Planning
Integrated
Portfolio
Management
Strategy
Synch
Integration
& API
Low Code App Development
App & Cloud & Data
Integration
B2B Integration
API Management
In-Memory
Data
Management
Messaging
43 © 2020 Software AG. All rights reserved.
44 | © 2020 Software AG. All rights reserved. For internal use only
THE DIGITAL BUSINESS OPPORTUNITY
IoT &
Analytics
Device Connectivity
Analytics
Device Management
Data Management
Application Enablement
Business
Transformation
Business
Automation
Measurement
& Control
Enterprise Architecture
Management
Roll-Out & Governance
Business Design & Planning
Integrated
Portfolio
Management
Strategy
Synch
Integration
& API
Low Code App Development
App & Cloud & Data
Integration
B2B Integration
API Management
In-Memory
Data
Management
Messaging
44 © 2020 Software AG. All rights reserved.
Not available for webcast
Video Playing
Q&A10:35 – 10:55
CEO, CFO and CRO
Inbox for webcast attendees
cmd2020@softwareag.com
Coffee break10:55 – 11:15
See you again shortly
Dr Stefan Sigg
Chief Product Officer
Product
Leadership
49 |
Digital Integration
Hub
Industry IoT
API ManagementHybrid Integration
• Embedded Cumulocity IoT and
webMethods into Siemens
MindSphere
• webMethods.io embedded in PTC
• ADAMOS IoT solution roadmap
• Industry analyst predictions
• Industry use cases, e.g.
– Machine and plant builders
– Retail
– Utilities
– Telco
ANTICIPATING A STRONG MARKET CONVERGENCE
HELIX FOCUS AREAS MERGE
Market evidence
48 © 2020 Software AG. All rights reserved.
50 |
LEADERSHIP POSITIONS IN HELIX FOCUS MARKETS
EXCELLENT PRODUCT RECOGNITION ACROSS ANALYSTS
API Management Hybrid Integration Industry IoT
49 © 2020 Software AG. All rights reserved.
51 |
Cumulocity IoT Data Hub
Scalable and cost-effective Cloud Big Data solution
TrendMiner ContextHub
Self-service root cause analytics for time-series data
webMethods.io API
Full lifecycle API Gateway and Portal
webMethods.io
Self-service Hybrid Integration and Integration-as-a-Service
webMethods.io B2B
Next generation business-to-business integration
KEY INNOVATIONS DELIVERED IN 2019
FOCUS DRIVES ABILITY TO EXECUTE
50 © 2020 Software AG. All rights reserved.
52 |
webMethods.io App Mesh
Closing the semantic gap between applications and the Service Mesh
webMethods.io Data Hub
Scalable Big Data layer for integration data
Cumulocity IoT Solution Accelerators
Ready-to-run IoT solutions
Cumulocity IoT Security
Certificate lifecycle management
Cumulocity IoT and TrendMiner
End-to-end integrated analytics and AI/ML based on IoT data
KEY INNOVATION PRIORITIES FOR 2020 AND BEYOND
THOUGHT LEADERSHIP AND DELIVERY EXCELLENCE
51 © 2020 Software AG. All rights reserved.
53 |
UNIQUELY POSITIONED TO COVER THE WHOLE STACK
FOCUS ON SELF-SERVICE & FAST TIME-TO-MARKET
Integration &
Messaging
Data Hub
Historical data
Real-time data
Historical
B2B
Device Mgmt &
Connectivity
Integration &
Messaging
Enterprise / Cloud
52 © 2020 Software AG. All rights reserved.
54 |
A&N Cloud Journey
From Mainframe to Linux, from Linux to Containers, from Containers into the Cloud
New ARIS Process Mining
All new Cloud-born version, leveraging synergies with ARIS process modeling and IoT production process data
Alfabet Fastlane
Cloud-based entry-level offering for IT portfolio management
ARIS Elements
Cloud-based entry-level offering for self-service enterprise process excellence
ADDITIONAL KEY ROADMAP ITEMS 2020+
ADABAS & NATURAL – ARIS & ALFABET
53 © 2020 Software AG. All rights reserved.
55 |
Market Relevance
Delivery Excellence
Customer Experience
THE 3 KEY TAKE-WAYS
54 © 2020 Software AG. All rights reserved.
Bernd Gross
Chief Technology Officer
Market Vision
& Strategy
57 | © 2020 Software AG. All rights reserved.
OUR MARKET VISION
GUIDING OUR STRATEGY
The extreme
competitiveness of
a Truly Connected
Enterprise
56
58 |
RETURN TO THE OPPORTUNITY
IT
Transformation
budgets
Largest for 15
years1
$18 bn
$12 bn
Integration
Platform Market
TAM 2
2017
2022
$25.6 bn
$9.5 bn
IoT Platform
Market
TAM 3
2017
2023
(1) 2019 Harvey Nash / KPMG CIO Survey; (2) Gartner Inc.; (3) McKInsey
+50% +18% CAGR
57 © 2020 Software AG. All rights reserved.
59 | © 2020 Software AG. All rights reserved.
DUEL FOR THE FUTURETesla against VW: Can the Wolfsburgers still succeed in catching up?
58
60 |
THE TRULY CONNECTED ENTERPRISE
DRIVING A NEW GENERATION OF DIGITALIZATION
Everything-as-a-
Service
is the new paradigm
Connected Customer
Experience
is the new disruption
The Truly Connected
Enterprise
is the new reality
59 © 2020 Software AG. All rights reserved.
61 |
Connected Enterprises
TRANSFORMS X
62 |
TRULY
CONNECTED
ENTERPRISE
CRITICAL
CAPABILITIES
61 © 2020 Software AG. All rights reserved.
63 | © 2020 Software AG. All rights reserved.
TURNING DATA
INTO DECIMATED DOWNTIME
64 | © 2019 Software AG. All rights reserved.© 2019 Software AG. All rights reserved.© 2019 Software AG. All rights reserved.© 2020 Software AG. All rights reserved.
TURNING DATA
INTO PERFECTLY PAINTED CARS
65 |© 2019 Software AG. All rights reserved. For internal use only and
for Software AG Partners.© 2019 Software AG. All rights reserved. © 2019 Software AG. All rights reserved.© 2020 Software AG. All rights reserved.
TURNING DATA
INTO A SUPERIOR FAN EXPERIENCE
66 | © 2020 Software AG. All rights reserved.
TURNING DATA
INTO 100% PAPERLESS CITIZEN SERVICES
DRIVING A NEW GENERATION OF DIGITALIZATION
THE TRULY CONNECTED ENTERPRISE
© 2020 Software AG. All rights reserved.
The convergence of Integration & IoT is Software AG’s USP
The Truly Connected World
is the new reality
Everything-as-a-Service
is the new paradigm
Connected Customer Experience
is the new disruption
Paz Macdonald
Chief Marketing Officer
Marketing
Impact
69 |
PURPOSE AND PRINCIPLES
FUELING THE GROWTH ENGINE
Enable Sales
function to be successful
Bridge the gap between
Software AG and buyers
Grow and optimize
‘Lead to Revenue’ engine
© 2020 Software AG. All rights reserved. 68
70 |
REPUTATION REVENUEREACH
Starting quality
conversations in markets
where we’re strong
Winning where we have
the right: in Integration
and in IoT
Impacting sales and
driving revenue for
Software AG
REACH, REPUTATION, REVENUE
FUNCTION WITH CLEAR FOCUS
© 2020 Software AG. All rights reserved. 69
71 |
DELIVERING RESULTS IN 2019
CLEAR FOCUS AND TANGIBLE OUTPUT
INPUT
GROWTH
MARKETING
FUNCTION
Build
TeamDigital
First
Develop
Nurture
Tracks
Focus
on Key
Regions
IMPACT
Contribution to pipeline in key geographies –
50% average
MQLs increased 18% YoY; 65% YoY in H2
R4Q Marketing contribution:
Integration – 48% IoT – 50%
280 deals in 2019
Overall contribution to pipeline: €285.9m
© 2020 Software AG. All rights reserved. 70
72 |
PRIORITIES FOR 2020BUILDING MOMENTUM: FOCUS ON QUALITY
Brand
Drives reputation
Route to Sale
Route to Talent
Digital First
Closer to the buyer
Seamless customer
experience
Demand Gen
Quality and quantity
Big names; meaningful
results
FOCUS 2020
71 © 2020 Software AG. All rights reserved.
73 |
INVESTING IN DEMAND GENERATIONGROW REVENUE – IMPROVE FUNNEL CONVERSIONS
INPUTS
IMPACT
• Integrated Demand Generation plan
• Investment in the right industry events
• Campaigns with impact
• Faster, higher quality pipeline build
• ‘Lead to Revenue’ cycle shortened
• Increased net new logos
72 © 2020 Software AG. All rights reserved.
74 |
INVESTING IN DIGITALMEETING OUR AUDIENCES WHERE THEY ARE
INPUTS
IMPACT
• New website
• Increased digital campaigns
• Martech stack
• +20% unique new visitors
• Lower cost per acquisition
• Data to aid decision making and improve
73 © 2020 Software AG. All rights reserved.
75 |
INVESTING IN BRANDDRIVING AWARENESS AND MARKET POSITIONING
INPUTS
IMPACT
Elevate our messages to buyer needs
Increased social amplification on wins
‘Living Connections’ for Integration and IoT
Shorter sales cycles, faster route to buyer
Improved reputation and Share of Voice
Drive market and thought leadership
74 © 2020 Software AG. All rights reserved.
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REPUTATION REVENUEREACH
Starting quality
conversations in markets
where we’re strong
Winning where we have
the right: in Integration
and in IoT
Impacting sales and
driving revenue for
Software AG
REACH, REPUTATION, REVENUE
CLEAR IN OUR 2020 CONTRIBUTION
© 2020 Software AG. All rights reserved. 75
Dr. Elke Frank
Chief Human Resources Officer
People &
Culture
78 |
CULTURE EATS STRATEGY FOR BREAKFAST
INVESTING IN PEOPLE AND CULTURE
1
2
3
• Culture is at the core of every successful company
• HELIX brings our transformation strategy and culture closer together
• Great culture retains rock stars & attracts the best talent – our business needs
sales and product talent to win
• Great culture drives change – our business needs to change and develop winning
behavior and mindsets
• Leadership is key to leverage our HELIX strategy into the organization and develop
the right talents and the mindset
77 © 2020 Software AG. All rights reserved.
#MyVoiceResults – Global Employees Survey 2019
74%*
Response rate
of #MyVoice
3.63 Software AG
Engagement score
25th
Engagement Score
Percentile rank – Software
Development industry
Where we have
work to do:
▪ Recognition
▪ Empowerment
Where we
performed well:
▪ Know what’s expected
▪ Willing to do more
Top
Regions:
▪ Asia Pacific & Japan
▪ North America
* 3491 respondents out of 4726 Software AG employees
© 2020 Software AG. All rights reserved.
80 |
KEY PRIORITIES
THREE FOCUS POINTS FOR HR FOR 2020 & BEYOND
Leadership&Talent Structure Culture
Talent Management
And Acquisition
Cultural Change at Software AG
Organizational Setup
79 © 2020 Software AG. All rights reserved.
our brand
missionvision
b5 values
purpose
We empower our customers
to turn data into valueWe unlock the power of data
to shape a better future
| How?| What?
purpose | Why?
We connect technology and
people for a smarter
tomorrow
DEFINING OUR CULTURE AND LIVING IT
© 2020 Software AG. All rights reserved.
Not available for webcast
Video Playing
Q&A12:30 – 12:55
All Presenters
Inbox for webcast attendees
cmd2020@softwareag.com
Otmar Winzig
SVP – Investor Relations
Closing
Remarks
Networking Lunch 13:00 – 14:00
Our webcast is now ended