RESULTS 2 nd QUARTER 2017 (IFRS, UNAUDITED)

Transcription

1 RESULTS 2 nd QUARTER (IFRS, UNAUDITED) July 20, Software AG. All rights reserved.

2 SAFE HARBOR 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 eptance 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 ordance with the U.S. Securities Act of 1933 in its currently valid form. 2 Software AG. All rights reserved.

3 CURRENCY IMPACT ON REVENUE / (6 MONTHS) 34% revenue in Euro 66% revenue in foreign currency CAD 3% AUD 3% ZAR 4% BRL 5% ILS 5% GBP 6% Other 10% US Dollar 30% Euro 34% Currency impact on revenue (in m; yoy) in % in % Licenses 0.3 1% 1.9 2% Maintenance 1.9 2% 5.8 3% Consulting & Other 0.7 1% 1.3 1% Total 2.9 1% 9.0 2% Currency split 3 Software AG. All rights reserved.

4 DIGITAL BUSINESS PLATFORM SEGMENT REPORT / (6 MONTHS) Licenses % -7% % 3% Maintenance % 8% % 7% Total revenue % 3% % 6% Cost of sales % -4% % -10% Gross profit % 3% % 7% Sales & Marketing % -4% % 2% Research & Development % 11% % 7% Segment result % 8% % 15% Margin in % 29.4% 28.5% 28.9% 26.8% 4 Software AG. All rights reserved.

5 ADABAS & NATURAL SEGMENT REPORT / (6 MONTHS) Licenses % 13% % -46% Maintenance % -7% % -3% Product revenue % -3% % -17% Other Total revenue % -3% % -17% Cost of sales % -32% % -22% Gross profit % -1% % -17% Sales & Marketing % -8% % -17% Research & Development % 3% % 7% Segment result % 0% % -20% Margin in % 69.6% 66.9% 67.2% 68.8% 5 Software AG. All rights reserved.

6 CONSULTING SEGMENT REPORT / (6 MONTHS) Total revenue % 0% % 3% Cost of sales % -8% % -5% Gross profit % 35% % 48% Sales & Marketing % 16% % 14% Segment result % 52% % 92% Margin in % 13.9% 9.3% 12.1% 6.7% 6 Software AG. All rights reserved.

7 RESULTS / (6 MONTHS) Total revenue % 1% % -1% Cost of sales % -6% % -5% Gross profit % 3% % 0% Margin in % 75.1% 73.2% 74.2% 73.0% Research & Development % 12% % 10% Sales & Marketing % -3% % 0% Administration % 1% % -2% Other income / expense EBIT % % - Margin in % 23.2% 21.3% 21.7% 21.7% 7 Software AG. All rights reserved.

8 NON-IFRS EARNINGS / (6 MONTHS) % % EBIT (before all taxes) % % Amortization on acquisition related intangible assets % % Share based payments % % Restructuring / severances / legal case Other impacts / impacts from M&A activities % % EBITA (Non-IFRS) % % in % of revenue (Non-IFRS) 29.5% 27.4% 28.4% 28.1% Net income (Non-IFRS) % % EPS in (Non-IFRS)* % % * Weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 8 Software AG. All rights reserved.

9 CASH FLOW / (6 MONTHS) % % Operating cash flow % %./. CapEx* ** -6.0 Free cash flow % % in % of revenue 20.5% 26.5% 20.8% 27.9% Free cash flow per share*** % % * Cash flow from investing activities except acquisitions and except investments in debt instruments ** yoy change because of one time property investment at Darmstadt *** Based on weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 9 Software AG. All rights reserved.

10 BALANCE SHEET June 30, Assets Dec. 31, June 30, Liabilities Dec. 31, Cash and cash equivalents Financial assets Trade and other receivables Non-financial assets Financial liabilities Other liabilities Deferred income ,165.9 Fixed assets (Goodwill 940.5/ 936.6) 1, ,076.5 Shareholders equity (ratio 58.7% / 61.1%) 1, ,833.5 Total 1, ,833.5 Total 1, Software AG. All rights reserved.

11 OUTLOOK FULL YEAR FY FY Outlook (as of July 17, ) Product Revenue Digital Business Platform Product Revenue Adabas & Natural % to +10% 1) -2% to -6% 1) Operating Margin Group (non-ifrs) 2) 31.2% 31.0% to 32.0% 1) At constant currency rates 2) Adjusted for non-operating items (see non-ifrs earnings results) 11 Software AG. All rights reserved.

12 APPENDIX 12 Software AG. All rights reserved.

13 HEADCOUNT BY FUNCTIONAL AREAS* AND GEOGRAPHY (in FTE) June 30, Dec. 31, % June 30, % yoy Total 4,570 4,471 2% 4,318 6% Consulting & Services 1,920 1,914 0% 1,839 4% Research & Development 1,158 1,110 4% 1,044 11% Sales & Marketing % 840 6% Administration % 595 2% Germany 1,183 1,148 3% 1,136 4% USA % 564 6% India % % Rest of world 2,005 1,956 3% 1,922 4% * According to P+L structure 13 Software AG. All rights reserved.

14 EARNINGS / (6 MONTHS) % % EBIT (before all taxes) % % Financial result Profit before taxes % % Other taxes % % Income taxes % % Tax rate in % 35.2% 34.7% 34.6% 34.6% Net income % % EPS in * % % * Weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 14 Software AG. All rights reserved.

15 AMORTIZATION / DEPRECIATION IMPACT (PRELIMINARY) Q1 Q1 FY * FY 2018* FY 2019* Amortization Depreciation * Estimated 15 Software AG. All rights reserved

16 REVENUE / (6 MONTHS) Product revenue % 1% % -3% Licenses % -2% % -14% Maintenance % 2% % 3% Consulting % -1% % 3% Other Total % 1% % -1% 16 Software AG. All rights reserved.

17 Investor Relations Uhlandstrasse Darmstadt Germany T: +49 (0) 6151 / F: +49 (0) 6151 / W: softwareag.com E: investor.relations@softwareag.com 17 Software AG. All rights reserved.

18 18 Software AG. All rights reserved.