Software AG Results 4 th Quarter & Full Year 2014 (IFRS, unaudited)

Transcription

1 Software AG Results 4 th Quarter & Full Year (IFRS, unaudited) January 28,

2 Safe harbor 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. 2

3 Currency impact on revenue / 39% revenue in Euro 61% revenue in foreign currency Currency impact on revenue CAD 4% AUD 4% ILS 4% Other 11% Euro 39% (in m; yoy) in % in % Licenses 2.9 3% Maintenance 2.6 3% % BRL 5% Consulting & Other 0.8 2% GBP 7% US Dollar 26% Total 6.3 3% % Currency split 3

4 Segment report / Business Process Excellence (BPE) Δ% Δ% acc Δ% Δ% acc Licenses % -21% % -19% Maintenance % 6% % 8% Total revenue % -10% % -6% Cost of sales % 2% % 4% Gross profit % -10% % -7% Sales & marketing % -20% % -8% R & D % -7% % 2% Segment result % 1% % -10% 4

5 Segment report / Enterprise Transaction Systems (ETS) Δ% Δ% acc Δ% Δ% acc Licenses % 4% % -15% Maintenance % -3% % -5% Product revenue % % -9% Other % -14% Total revenue % % -9% Cost of sales % -10% % -9% Gross profit % 1% % -9% Sales & marketing % 14% % -18% R&D % -8% % -4% Segment result % -2% % -8% 5

6 Segment report / Consulting Δ% Δ% acc Δ% Δ% acc BPE/ETS services % -3% % -1% SAP product revenue* % -76% SAP services* % -70% Other Total revenue % -26% % -21% Cost of sales % -30% % -23% Gross profit % -7% % -7% Sales & marketing % -29% % -30% Segment result % 21% % 77% * Deconsolidation of SAP related business 6

7 Results / 44 Δ% Δ% acc Δ% Δ% acc Total revenue % -11% % -11% Cost of sales % -27% % -19% Gross profit % -6% % -7% Margin in % 78.2% 73.2% 72.5% 69.7% R & D % -7% % 1% Sales & marketing % -13% % -11% Administration % -5% % 2% Other income/expense EBIT % -4% % -14% Margin in % 28.9% 25.9% 20.5% 21.1% 7

8 Non-IFRS Earnings / EBIT (before all taxes) Amortization on acquisition related intangible assets Reduction acquisition related product revenue by purchase price allocation Other impacts from M&A activities Share based payment Restructuring/severances Result from sold operations EBITA (Non-IFRS) in % of revenue (Non-IFRS) 35.7% 30.8% 27.9% 26.8% Net income (Non-IFRS) EPS (Non-IFRS)* Net income (IFRS) * Weighted average shares outstanding (basic) : 78.9m / : 82.2m // : 79.2m / : 83.7m 8

9 Continuous Improvement of Operating Result 40% Non IFRS EBITA in % of revenue 90 Non IFRS EBITA in million % % Q1 Q2 Q3 40 Q1 Q2 Q3 9

10 Cash flow / Δ% Δ% Operating cash flow % %./. CapEx* Free cash flow % % as % of revenue 19.0% 19.7% 15.5% 16.4% Free cash flow per share** % % * Cash flow from investing activities except acquisitions and except investments in debt instruments ** Based on average outstanding shares: : 78.9m / : 82.2m // : 79.2m / : 83.7m 10

11 Balance sheet Assets Liabilities Dec. 31, Dec. 31, Dec. 31, Dec. 31, Cash and cash equivalents/ Securities Financial liabilities Trade receivables Inventory, other assets Other liabilities Deferred income ,105.7 Fixed assets (goodwill 857.3/829.2) 1, ,013.4 Shareholders equity (ratio 54.8%/48.4%) ,848.9 Total 1, ,848.9 Total 1,

12 Outlook 2015 (as of January 28, 2015) Outlook 2015 Product Revenue BPE % to +12% 1) Product Revenue ETS % to -14% 1) Operating Margin (Non-IFRS) 2) 27.9% 27.5% to 28.5% 1) At constant currency rates 2) Before adjustments for non-operating items (see non-ifrs earnings results) 12

13 Outlook 2015 (as of January 28, 2015) Outlook 2015 Scenario 2015 Product Revenue BPE % to +12% 1) +10% to +16% 2) Product Revenue ETS % to -14% 1) -4% to -10% 2) Operating Margin (Non-IFRS) 3) 27.9% 27.5% to 28.5% IFRS EBIT Margin +100 bp to +200 bp 1) At constant currency rates 2) Assuming current (January 2015) exchange rates would apply throughout 2015; translated into projected stated results 3) Before adjustments for non-operating items (see non-ifrs earnings results) 13

14 Thank you! 14

15 Appendix 15

16 Earnings / Δ% EBIT (before all taxes) % % Financial result % % Δ% Profit before taxes % % Other taxes % Income taxes % % Tax rate in % 32.1% 29.6% % 32.0% Net Income % % EPS in * % % * Weighted average shares outstanding (basic): : 78.9m / : 82.8m // : 79.2m / : 83.7m 16

17 Earnings / Δ% Δ% Net Income % % Income taxes % % Other taxes % Financial result % % EBIT (before all taxes) % % Margin in % 28.9% 25.9% 20.5% 21.1% Amortization % % EBITA % Margin in % 32.2% 29.4% 25.1% 25.3% Depreciation % % EBITDA % Margin in % 33.4% 30.5% 26.4% 26.6% 17

18 Amortization / depreciation impact ff (preliminary) 2015ff* Amortization IDS Amortization other Depreciation * Estimated 18

19 Headcount by functional areas* and geography (in FTE) Dec. 31, Sept. 30, Δ% qoq Dec. 31, Δ% yoy Total 4,421 4,553-3% 5,238-16% Consulting & services 1,821 1,884-3% 2,347-22% R & D % 998-3% Sales & marketing 993 1,026-3% 1,180-16% Administration % % USA % % Germany 1,216 1,237-2% 1,711-29% Rest of world 2,551 2,621-3% 2,749-7% * According to P+L structure 19

20 Revenue / Δ% Δ% acc Δ% Δ% acc Product Revenue % -7% % -8% License % -13% % -17% Maintenance % 2% % Product IDS (SAP) % -76% Consulting BPE/ETS % -3% % -1% Consulting IDS (SAP) % -70% Other % -40% Total % -11% % -11% 20

21 Revenue excl. IDS Consulting* (pro forma) (in Mio. ) Q1 Q2 Q3 Product Licenses Maintenance Consulting & services Other Total * IDS Consulting (SAP-products and services); business unit was sold in May 21

22 Your contact: Investor Relations phone: +49 (0) 6151 / Follow us on Twitter: Uhlandstrasse 12 fax: +49 (0) 6151 / Darmstadt web: softwareag.com Germany investor.relations@softwareag.com