SANJAY BRAHMAWAR CHIEF EXECUTIVE OFFICER - Software AG
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SANJAY
BRAHMAWAR
CHIEF EXECUTIVE
OFFICER
1 |
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 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.
2 | © 2019 Software AG. All rights reserved. For internal use only
Our pathway to sustainable, profitable growth
H E L I X
3 | © 2019 Software AG. All rights reserved.
THE RIGHT MOMENT TO ASSESS WHERE WE STAND
50
YEARS
4 | © 2019 Software AG. All rights reserved. For internal use onlyWHAT WORKS
Product
Best in Integral &
Strength Class Trusted
50
YEARS Financial
Solid
Balance Strong
Strength Sheet Cashflow
Cultural Creativity
& Diversity &
Strength
Flexibility Opportunity
5 | © 2019 Software AG. All rights reserved. For internal use onlyWHAT WE MUST WORK ON
No growth Essence
Growth
in growth & identity
markets
50
Product Siloes &
GTM and complexity
focus too
Operations broad
YEARS
Ecosystem Partner
focus too
narrow
6 | © 2019 Software AG. All rights reserved. For internal use onlyHELIX: A MULTI-YEAR TRANSFORMATION
• Targeting sustainable, profitable growth
• Committing ~€50m in investment
FOCUS
• Committing to medium term milestones, metrics and pathway
• Three levers will enable our success:
TEAM
• FOCUS
• Right products
• Right markets EXECUTION
• Right resources and capabilities
• EXECUTION
• Simpler, sharper, disciplined GTM
• Improved operating model and accountability
• Drive necessary shift to subscription
GENERATING
• TEAM SUSTAINABLE, PROFITABLE GROWTH
• Harnessing our talent
• Expanding and empowering our ecosystem
7 | © 2019 Software AG. All rights reserved. For internal use onlyRE-IMAGINING INTEGRATION
Of CIOs say their
business model has
49% changed or is
changing
- Gartner CIO Survey 2019
DIGITAL REAL-TIME
TRANSFORMATION DATA
Annual total
potential economic
$3.9tr -
impact of IoT by
$11.1tr pa
2025 €24
- McKinsey bn
€10.2 €7.9 €2.4 €3.4
bn bn TAM bn bn
The total digital
2018
transformation Integration IoT Business A&N
$1.37bn market in 2022 & Analytics Transformation
- IDC forecast
8 | © 2019 Software AG. All rights reserved. For internal use onlyEVOLVING SO THAT WE START WITH THE CUSTOMER
Real-life time
sensitive problems
Intuitive UI and
instant results
Facilitate, not sell
Plain-speaking
support and
responsiveness SaaS/Subscription 1st
Experiment, test and
probe capabilities Value-based engagement
Scale over time
based on results
9 | © 2019 Software AG. All rights reserved. For internal use onlyTHREE LEVERS
WE CAN CONTROL
FOCUS EXECUTION TEAM
10 | © 2019 Software AG. All rights reserved. For internal use onlyFOCUS
SHAPING OUR OFFER AND ORGANISATION FOR SUCCESS
M A R K E T S P R O D U C T S C A P A B I L I T Y
PRIORITIZE INVESTMENT CLARIFY VALUE LEVERAGE STRATEGIC M&A
WHERE WE SEE: PROPOSITION BY: TO:
• Growth > market • Realigning DBP portfolio: • Enter adjacent markets
Integration, IoT, Business Transformation
• Potential to take share • Bolster existing strengths
• Focus on areas where there is clear market
• Low barriers to success growth • Gain a technology edge
• Refocus R&D spending where it matters most
11 | © 2019 Software AG. All rights reserved. For internal use onlyFOCUS IN ACTION – INTEGRATION
• Integration: a big problem for enterprise
2022
• It’s only getting bigger
• A business-level, front-line problem
$18bn
IoT &
API iPaaS
Analytics
2017
50%
Customer integration opportunity
$12bn Integration Platform
Market TAM
Legacy stack and existing architecture
Source: Gartner
12 | © 2019 Software AG. All rights reserved. For internal use onlyFOCUS IN ACTION – IOT & ANALYTICS
2023
Create replicable
Industrial IoT
solutions
$25.6bn
Scale OEM
Telecommunications
2017 parterships
18% CAGR
$9.5bn IoT Platform
2018TAM
- Insurance/Financial Cumulocity and
2023 Services System Integrators
Source: McKinsey
13 | © 2019 Software AG. All rights reserved. For internal use onlyEXECUTION – DELIVERY AS OUR WATCHWORD
1. New operating model 2. Refined go-to-market 3. Subscription sales
Capitalize on major
Drive accountability Specialization
industry trend
Create right leadership Respond to customer
Geography
group preferences
Reward success Capture economic
Sales coverage
appropriately upside
sustainable, profitable growth over the medium term
14 | © 2019 Software AG. All rights reserved. For internal use onlyTEAM
EXPERIENCE & ENERGY
Sanjay Brahmawar Arnd Zinnhardt John Schweitzer Dr. Stefan Sigg Paz Macdonald Bernd Gross
Chief Executive Officer Chief Financial Officer Chief Customer Officer Chief Product Officer Chief Marketing Officer Chief Technology Officer
15 | © 2019 Software AG. All rights reserved. For internal use onlyTEAM – NURTURING AN ECOSYSTEM TO SUPPORT OUR GROWTH
- Launch comprehensive new program
Scalable
- Embrace co-petition
- Grow partner revenue to substantial
Partners % of mix
Durable
- New employee value proposition
- Agile talent and performance framework
Profitable
- Incentive structures to match
People
16 | © 2019 Software AG. All rights reserved. For internal use onlyCOMMITMENT. INVESTMENT. MEASUREMENT.
ARR
Bookings / ACV
Op Free Cash Flow
17 | © 2019 Software AG. All rights reserved. For internal use onlyHELIX: THE RIGHT PATHWAY
Unlock our greatest Convert a significant Committed investment,
strengths opportunity strong team
GENERATING
SUSTAINABLE, PROFITABLE GROWTH
18 | © 2019 Software AG. All rights reserved. For internal use onlyYou can also read
