Software AG 4 th Quarter & Full-Year 2011 Results (IFRS, unaudited) January 24, 2012

Transcription

1 Software AG 4 th Quarter & Full-Year Results (IFRS, unaudited) January 24, 2012

2 January 24, Safe-Harbor-Statement This presentation contains forward-looking statements based on 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.

3 Software AG Financial Results, 4th Quarter and Full-Year (IFRS, un-audited) Karl-Heinz Streibich, CEO January 24, 2012

4 January 24, Sustainable profitable growth REVENUE (in m) -2% +7% +10% +29% +16% +17% +32% , EBIT +42% +15% +15% +23% +32% +21% +23%

5 January 24, Record result of repeated in REVENUE (in m) -2% +7% +10% +29% +16% +17% +32% ,120 1, EBIT +42% +15% +15% +23% +32% +21% +23%

6 January 24, Development of business lines: full year revenue in % at constant currency 1, % 1, * +26% 200-5% * 396 0% 420-8% 381 Revenue core business (BPE + ETS) = (at constant currency) 372* +28% % BPE ETS IDS Scheer Consulting * First consolidated in Q3 2009

7 January 24, ETS license revenue in : Comparison of development in EMEA vs. Americas North & South America -63%* EMEA (incl. DACH) -7%* Brazil %* /10 /11 /10 /11 * At constant currency

8 January 24, BPE license revenue in : Comparison of development in EMEA vs. North America EMEA (incl. DACH) +40%* North America -7%* /10 /11 /10 /11 * At constant currency

9 January 24, Revenue split by industry Retail Transport & Logistics Telecos Others 20% Financial Sector Retail Transport & Logistics Telecos Others 22% Financial Sector Manufacturing 20% Public Sector Manufacturing 21% Public Sector Partner Partner IT IT * FY * * Based on product revenue

10 January 24, Strengthening our competitive position and image in North America 1. Operational Actions The appointment of the US Sales Executive to the Group Executive Board (GEB) Realignment of sales (after the merger of the sales teams) Increase the sales and marketing budgets by 20% Establish regional centers (hubs) for market development Establish a global service and support unit for ETS 2. Strategic Actions Establish a Federal Unit Bidding for public projects (Defense and Security) Strengthening our presence in Silicon Valley Mergers & Acquisitions, Research & Development, Product Marketing Expansion based on Terracotta

11 January 24, BPE once again the strongest revenue contributor % 42% % 52% % 62% Business line ETS 54% 58% % 48% % % Business line BPE

12 January 24, Consolidation in 2012 basis for further growth REVENUE -2% +7% +10% +29% +16% +17% +32% ,120 1, e EBIT +42% +15% +15% +23% +32% +21% +23% e

13 January 24, Outlook FY 2012 Outlook 2012 (as of January 24, 2012) Total Revenue Group - thereof BPE - thereof ETS 1, % to +3%* % to +15%* % to -7%* EBIT Margin 24.5% 23.0% to 24.5% Outlook Q Given the normal seasonality, Q is expected to be below the extraordinary good results of Q1. * Net of currency

14 January 24, Seasonal split of license revenues by quarter in % of FY license revenue Normal 40 ~35% ~25% 25 ~20% ~20% Q1 Q2 Q3 Normal Normal seasonality

15 January 24, Seasonal split of license revenues by quarter in % of FY license revenue Normal ~35% 31% % ~25% 25% 20 ~20% 20% ~20% Q1 Q2 Q3 Normal Normal seasonality Percentage in

16 January 24, Mid-term Goals (3 to 5 years) BPE Business Division Double digit license revenue growth A doubling of revenue by end of 2015 ETS Business Division Maintenance revenue largely stable Optimize the cost structure to maintain an operating margin > 50% The Group Increase the EBIT margin to 30% A doubling of net income by end of 2015 M&A: large acquisition every 2-4 years

17 Software AG 4 th Quarter & Full-Year Results (IFRS, unaudited) Arnd Zinnhardt, CFO January 24, 2012

18 January 24, Currency impact on revenue 41% revenue in Euro 59% revenue in foreign currency JPY 2% ZAR 3% CAD 3% GBP 3% AUD 4% ILS 4% Others 10% Euro 41% Currency impact on revenue FY Licenses Maintenance Consulting & other BRL 6% US Dollar 24% Total Δ% (yoy) -0.9% -1.2%

19 January 24, Segment report / FY Business Process Excellence Δ% Δ% acc FY FY Δ% Δ% acc Licenses % -3% % +5% Maintenance % +11% % +11% Product revenue % +2% % +8% Services & other % +4% % +6% Total revenue % +3% % +7% Cost of sales % % Gross profit % % Sales & marketing % R & D % % Segment result % %

20 January 24, Segment report / FY Enterprise Transaction Systems Δ% Δ% acc FY FY Δ% Δ% acc Licenses % -49% % -21% Maintenance % -2% % -2% Product revenue % -29% % -10% Services & other % +6% % +5% Total revenue % -24% % -8% Cost of sales % % Gross profit % % Sales & marketing % % R & D % % Segment result % %

21 January 24, Growing relevance of BPE also on income level 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% Ongoing margin improvement in BPE 52% -20% 55% 53% 54% 2% 19% 22% 58% 57% 29% 29% % in % 115% leads to a balanced income split 98% 78% 72% 63% 58% 42% 37% 28% 2% 22% -15% Business Process Excellence Enterprise Transaction Systems Segment Margin (in %) Segment contribution split BPE/ETS (in %)

22 January 24, Segment report / FY IDS Scheer Consulting Δ% Δ% acc FY FY Δ% Δ% acc External product revenue % +9% % +3% Services & other % -7% % -6% Total revenue % -5% % -5% Cost of sales % % Gross profit % Sales & marketing % % R & D % Segment result

23 January 24, Result / FY Δ% FY FY Δ% Total revenue % 1, , % Cost of sales % Gross profit % % Margin in % 62.7% 64.1% 59.7% 60.5% R & D % % Sales & marketing % % Administration % % Other income/expense % EBIT % Margin in % 26.5% 28.8% 24.5% 24.0% EBITDA (pro-forma*) % Margin in % 30.3% 32.5% 28.7% 28.1% * Depreciation & amortization is included in functional areas according to IFRS

24 January 24, Net result / FY Δ% FY FY Δ% EBIT % Margin in % 26.5% 28.8% 24.5% 24.0% Financial income % Profit before tax % % Taxes % % Taxe rate in % 30.7% 28.9% 31.7% 31.0% Net income % % EPS in * % * Weighted average shares outstanding (basic) : 86.7m / : 85.1m (pro-forma, incl. share split)

25 January 24, Cash flow / FY Δ% FY FY Δ% Operating cash flow % %./. CapEx* Free cash flow % % as % of revenue 27.0% 24.2% 17.1% 19.5% Free cash flow per share** % % Weighted average number of shares (in m)** * Cash flow from investing activities except acquisitions / **pro-forma, incl. share split

26 January 24, Balance sheet Assets Liabilities December 31, December 31, December 31, December 31, Cash and cash equivalents Trade receivables Inventory, other assets Financial liabilities Other liabilities Deferred income ,069.2 Fixed assets (goodwill 752.2/ 717.3) 1, Shareholders equity (ratio 56.6%/48.1%) ,680.7 Total 1, ,680.7 Total 1,599.6

27 Thank you! January 24,

28 January 24, Amortization / depreciation impact ff (preliminary) FY FY 2012ff* Amortization IDS Amortization other Depreciation * Estimated

29 January 24, Headcount by functional areas* and geography (in FTE) Dec 31, Sept 30, Δ% qoq Dec 31, Δ% yoy Total 5,535 5,498 +1% 5,644-2% Consulting & Services 2,894 2,874 +1% 3,039-5% R & D % % Sales & marketing 1,023 1,031-1% 1,022 - Administration % USA % % Germany 1,881 1,920-2% 2,051-8% Rest of world 2,940 2,857 +3% 2,905 +1% * According to P+L structure

30 January 24, Revenue / FY Δ% Δ% acc FY FY Δ% Δ% acc Product % -14% % -2% Licenses % -27% % -8% Maintenance % +4% % +4% Consulting & Services % Other % +38% % +13% Total % -9% 1, , % -1%

31 January 24, Segment report quarterly development in IDS Scheer Consulting Q3 Q2 Q1 External product revenue Services & other Total revenue Cost of sales Gross profit Sales & marketing R & D Segment result in % of revenvue 4.8% 8.1% - - -

32 Please contact: Investor Relations Uhlandstrasse Darmstadt Germany phone: +49 (0) 6151 / fax: +49 (0) 6151 / web: softwareag.com investor.relations@softwareag.com