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.
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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.
© 2018 Software AG. All rights reserved.
SAFE-HARBOR-STATEMENT
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2017 WAS ONE OF THE MOST SUCCESSFUL YEARS
© 2018 Software AG. All rights reserved.
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%
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2018 TURNING POINT / DIGITAL BUSINESS DRIVING GROWTH
© 2018 Software AG. All rights reserved.
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
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STRONG STARTING POSITION
© 2018 Software AG. All rights reserved.
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
© 2018 Software AG. All rights reserved.
2017
Big Data & Streaming
Analytics
Artificial Intelligence
Machine Learning
Edge Computing
Device Connectivity
IoT Acquistions
Blockchain
2010
Strategic
decision
for IoT
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ESSENTIAL CAPABILITIES TO SUCCEED IN IOT
© 2018 Software AG. All rights reserved.
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
© 2018 Software AG. All rights reserved.
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
© 2018 Software AG. All rights reserved.
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
© 2018 Software AG. All rights reserved.
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EXAMPLE:
© 2018 Software AG. All rights reserved.
UM AP
Source: Bosch
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OUR ROLE IN THE MINDSPHERE ARCHITECTURE
© 2018 Software AG. All rights reserved.
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
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DATA CENTERED ERA REQUIRES SOFTWARE CENTRICITY
© 2018 Software AG. All rights reserved.
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
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Germany
T: +49 (0) 6151 / 92 1900
F: +49 (0) 6151 / 9234 1900
W: softwareag.com
© 2018 Software AG. All rights reserved.