YOUR DIGITAL FUTURE. TODAY./media/Files/S/... · The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with

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YOUR DIGITAL FUTURE.TODAY.

© 2015 Software AG. All rights reserved.

Berenberg European Conference 2016Pennyhill Park | December 8

ERIC DUFFAUTChief Customer OfficerMember of the Management Board

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ECONOMY


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THE IT-IZATION


THE DIGITAL IMPERATIVEOF THE WORLD

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FORRESTER RESEARCHTHE NEED FOR A DIGITAL BUSINESS PLATFORM

The Big Mistake: Framing Transformation Around Specific Digital Initiatives

The Better Assumption: Digital Transformation is About Preparing for Continuous Change

The Real Need:A Digital Business Platform


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SOFTWARE AG OFFERS THE WORLD’S FIRSTDIGITAL BUSINESS PLATFORM

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DIGITAL BUSINESS PLATFORMMODULAR, FLEXIBLE, FAST, DIFFERENTIATING

BUSINESS & IT TRANSFORMATION

Manage and govern the change

INTEGRATIONConnecting multiple

endpoints

IN-MEMORY DATAProviding performance

and scale

PROCESSCombining people, business and things

ANALYTICS & DECISIONS

Enabling faster and better decisions


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ENTERPRISES USING THETHE DIGITAL BUSINESS PLATFORM

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CO-INNOVATION

© 2015 Software AG. All rights reserved

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SOFTWARE AG RANKED AS A LEADER


HYBRID INTEGRATION

Source: The Forrester Wave™ Hybrid Integration For Enterprises, Q4 2016, Forrester Research, Inc.,

November 18, 2016Source: The Forrester Wave™: Big Data Streaming Analytics, Q1 2016, Forrester Research, Inc., March 30, 2016

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a

detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at

the time and are subject to change.

BIG DATA STREAMING ANALYTICS

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Global Infrastructure Software Market Segments rela ted to Digital Business Platform

Market segments related toDBP‘s 5 building blocks

Revenue 2015 ($b) Δ % 2014/15 Δ % 2015/20

Integration 6.7 -1%

Process 4.4 16%

Business & IT Transformation-

Analytics & Decisions8.7 3%

In-Memory Data 4.1 -4%

Total related market 24.1* 3%

Source: Gartner Forecast: Enterprise Software Markets, Worldwide, 2013-2010, 3Q16 Update, September 23 2016, Matthew Cheung, et al.

* Consolidated revenue

DIGITAL BUSINESS PLATFORM - MARKET SIZE & GROWTH

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40

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50

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016 e

DBP License(4Q rolling)€m

SOFTWARE AG – DBP REVENUE TREND


90

95

100

105

110

115

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016 e

DBP Business Line(4Q rolling)

Trend€m

Two major deals delayed.

Trend

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12 | © 2015 Software AG. All rights reserved. For internal use only

THANK YOU

Q & A

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13 | © 2015 Software AG. All rights reserved. For internal use only

FINANCIAL DATA

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SOFTWARE AG AT A GLANCE

Technology leader for more than 40 yearsin data management and application development platforms

> €2.5bnMARKETCAP

~ 65% Free Float~ 32% Software AG Foundation

€870+MILLIONIN REVENUE

45%+recurring

50% new products

4,300+EMPLOYEES**

R&D23%

S&M20%

Consulting&Services

43%

Admin14%


45% Americas

48%EMEA

REVENUE

34%Euro

31%USD

35%others

BY REGION* BY CURRENCY**

* Based on Group product revenue – FY 2015 **P&L as of December 31, 2015

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BUSINESS LINES

• Implementing Software AG Product Stack

• Customized Solutions

• Application Development• Data Management System• Modernization

• Process• Integration• Analytics & Decisions• In-Memory Data• Business & IT

Transformation

Share of Revenue*

Share of Revenue*

Share of Revenue*50% 28% 22%

*Group revenue split FY 2015

Growing StabilityGrowing Revenue Growing Margin

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20%

19%

19%

12%

10%

Government Financial ServicesIT Services ServicesManufacturing Telco & MediaTransport & Logistics Other

BALANCED RISK


REVENUE BY GEOGRAPHY AND INDUSTRY

Product Revenue by Region Product Revenue by Industry

45%

48%

(14%)7%

Americas

EMEA (14% Germany)

Asia Pacific

Based on Group product revenue – FY 2015

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KEY FIGURES

© 2016 Sofware AG. All rights reserved.

Q3 2016 / YTD 9 MONTHS 2016in €m (IFRS unless otherwise stated) 9M 2016 9M 2015 ∆ as %

Group Revenue 607.9 615.6 1%*

By Revenue TypeLicense 155.5 169.0 -6%*Maintenance 306.0 304.3 3%*Consulting 145.3 141.7 5%*

By Revenue LineDigital Business Platform 296.9 293.9 3%*Adabas & Natural 165.1 179.8 -5%*Consulting 145.8 141.8 5%*

EBITA (op. non-IFRS) 181.8 166.9 8%as % of revenue 29.9% 27.1%

Net income (non-IFRS) 119.4 109.1 9%Earnings per share (non-IFRS) € 1.57 1.39 13%Free cash flow 145.4 128.8 13%

Employees (Full-time equivalents) 4,435 4,384 1%

Balance sheet Sep. 30, 2016 Dec. 31, 2015Total assets 1,800.2 1,814.8Cash and cash equivalents 349.0 300.6Net cash / (Net debt) 78.1 (25.7)Shareholders' equity 1,114.6 1,089.7

as % of total assets 61.9% 60.0%

* at constant currency

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* EPS basic, 2007 – 2010 pro-forma, adjusted for share split (2011) ** Including €m 55 Securities

in €m, IFRS 2015 2014 2013 2012 2011 2010 2009 2008 2007

Total Revenue 873.1 857.8 972.7 1,047.3 1,098.3 1,119.5 847.4 720.6 621.3

- License 271.9 270.1 330.1 318.9 295.2 327.4 269.9 272.0 241.3

- Maintenance 406.9 371.3 375.6 393.3 378.7 369.4 310.6 267.1 212.9

- Consulting& Other 194.3 216.4 267.0 335.1 424.4 422.7 266.9 181.5 167.1

BL DBP 431.5 394.5 422.9 385.5 339.6 321.5 247.2 210.7 149.9

BL A&N 248.0 245.3 274.5 310.5 313.9 355.4 328.5 332.1 310.2

BL Consulting 193.6 218.0 275.4 351.3 444.8 441.4 271.3 177.8 161.1

EBIT 209.4 176.0 205.5 248.3 269.2 268.6 218.2 180.5 136.8

EPS (€)* 1.76 1.39 1.60 1.90 2.05 2.06 1.64 1.35 1.04

Dividend (total cash out) 39.5 39.5 36.3 38.2 39.9 37.0 32.6 31.5 28.5

Free cash flow 170.0 132.7 159.1 170.7 187.7 217.8 188.4 133.4 82.2

Net debt (-) / Net cash(+) -25.7 -70.4** -106.9** +49.7 -60.9 -167.2 -271.8 -70.3 -133.0

Shareholders‘ equity 1,089.8 1,013.4 965.6 1,060.1 951.5 769.3 647.2 549.1 462.5

Employees (FTE) 4,337 4,421 5,238 5,419 5,535 5,644 6,013 3,526 3,479

FINANCIAL DATA


KEY FIGURES

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1. Return on equity: Operating EBIT / Equity2. Return on cap. employed: Operating EBIT / (Fixed assets + Working capital)3. Current assets ./. Cash and Cash Equivalents ./. Current liabilities

4. Current assets ./. Current liabilities / Total revenue5. (Operating Cash flow ./. Capex) / Revenue.

IFRS unless stated different FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007

Operating margin (EBITA, non-IFRS) 29.7% 27.9% 26.8% 28.5% n.a. n.a. n.a. n.a. n.a.

EBITDA margin 29.7% 26.4% 26.6% 28.6% 28.7% 28.1% 30.3% 28 .6% 25.7%

EBIT margin 24.0% 20.5% 21.1% 23.7% 24.5% 24.0% 25.8% 25.1 % 23.3%

ROE1 19.2% 17.4% 21.3% 23.4% 28.3% 34.9% 33.7% 32.9% 31.8%

ROCE2 16.1% 12.6% 14.6% 18.2% 20.5% 27.4% 20.9% 26.2% 22.5%

Net Working Capital (€m) 3 -€155.9 -€98.1 -€213.5 -€41.6 -€23.8 -€194.4 -€211.3 -€74.1 -€55.0

Working Capital ratio 4 16.6% 25.7% 24.3% 26.2% 17.5% -8.2% 0.8% 3.2% 4.2%

Free Cash Flow margin 5 19.5% 15.5% 16.4% 16.3% 17.1% 19.5% 22.2% 18.5% 13.2%

Corporate tax rate 32.4% 33.7% 32.0% 31.2% 31.7% 31.0% 32. 7% 34.0% 35.4%

WACC6 4.13% 4.35% 5.12% 5.1% 5.7% 6.8% 5.5% 6.8% 8.4%

Equity ratio 60.1% 54.8% 48.4% 59.8% 56.6% 48.1% 39.1% 51.8 % 47.2%

DSO (Days Sales Outstanding) 111 115 107 105 93 100 109 120 119

Capex (€m) €15.5 €10.5 €12.7 €13.3 €10.9 €9.7 €12.1 €6.6 €11 .8

Capital Employed 7 (€m) €1,282.8 €1,326.0 €1,346.3 €1,313.0 €1,262.0 €929.6 €1,002.2 €669.9 €655.2

KEY FINANCIAL RATIOS


IN % OF REVENUE

6. Pro forma, not applied for corporate management7. Fixed assets + Working capital

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Investor Relations Contact phone: +49 (0) 6151 / 92 1900

Uhlandstrasse 12 fax: +49 (0) 6151 / 9234 1900

64297 Darmstadt www.softwareag.comGermany e-mail: [email protected]

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YOUR DIGITAL FUTURE. TODAY./media/Files/S/... · The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with