Software AG 2 nd Quarter 2014 Results (IFRS, unaudited)

Transcription

1 Software AG 2 nd Quarter Results (IFRS, unaudited) July 24, Software AG. All rights reserved.

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 Software AG. All rights reserved.

3 Currency impact on revenue / (6 months) 41% revenue in Euro 59% revenue in foreign currency Currency impact on revenue ZAR 3% CAD 4% AUD 4% ILS 5% Other 9% Euro 41% (in m; yoy) in % in % Licenses % % Maintenance % % BRL 5% Consulting & Other % % GBP 7% US Dollar 22% Total % % Currency split 3 Software AG. All rights reserved.

4 Segment report / (6 months) Business Process Excellence (BPE) Δ% Δ% acc Δ% Δ% acc Licenses % -22% % -6% Maintenance % 11% % 11% Total revenue % -5% % 3% Cost of sales % 15% % 8% Gross profit % -6% % 3% Sales & marketing % -2% % R & D % 4% % 6% Segment result % -27% % -5% 4 Software AG. All rights reserved.

5 Segment report / (6 months) Enterprise Transaction Systems (ETS) Δ% Δ% acc Δ% Δ% acc Licenses % -47% % -40% Maintenance % -6% % -7% Product revenue % -24% % -20% Other % 4% % -4% Total revenue % -24% % -20% Cost of sales % -6% % -6% Gross profit % -25% % -20% Sales & marketing % -32% % -32% R&D % -2% % -3% Segment result % -25% % -19% 5 Software AG. All rights reserved.

6 Segment report / (6 months) Consulting Δ% Δ% acc Δ% Δ% acc BPE/ETS services % -4% % -1% SAP product revenue % -53% % -52% SAP services % -59% % -45% Total revenue % -20% % -15% Cost of sales % -18% % -15% Gross profit % -32% % -13% Sales & marketing % -29% % -26% Segment result % -42% % 62% 6 Software AG. All rights reserved.

7 Results / (6 months) 44 Δ% Total revenue % % Cost of sales % % Gross profit % % Margin in % 67.9% 69.1% 67.7% 67.7% Δ% R & D % % Sales & marketing % % Administration % % Other income/expense % % EBIT % % Margin in % 12.8% 18.7% 13.7% 18.6% 7 Software AG. All rights reserved.

8 Non-IFRS Earnings / (6 months) 8 Software AG. All rights reserved. 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) 23.0% 24.7% 21.8% 23.9% Net income (Non-IFRS) EPS (Non-IFRS)* Net income (IFRS) * Weighted average shares outstanding (basic) : 78.9m / : 83.8m // 6m : 79.5m / 6m : 84.8m

9 Cash flow / (6 months) Δ% Δ% Operating cash flow % %./. CapEx* Free cash flow % % as % of revenue 9.5% 4.0% % Free cash flow per share** % % * Cash flow from investing activities except acquisitions and except investments in debt instruments ** Weighted average shares outstanding (basic) : 78.9m / : 83.8m / 6m : 79.5m / 6m : 84.8m 9 Software AG. All rights reserved.

10 Balance sheet Assets Liabilities June 30, Dec. 31, June 30, Dec. 31, Cash and cash equivalents/ Securities Financial liabilities Trade receivables Inventory, other assets Other liabilities Deferred income ,082.0 Fixed assets (goodwill 825.6/829.2) 1, Shareholders equity (ratio 52.5%/48.4%) ,730.7 Total 1, ,730.7 Total 1, Software AG. All rights reserved.

11 Outlook FY FY Outlook FY (as of July 15, ) Product Revenue BPE Previous Year s Level Product Revenue ETS % to -16%* Operating Margin (EBITA, Non-IFRS)** 26.8% 26% to 28% * Revenue growth or decline at constant currency ** Before adjustments for non-operating items (see non-ifrs earnings results) 11 Software AG. All rights reserved.

12 Appendix Software AG. All rights reserved.

13 Earnings / (6 months) Δ% EBIT (before all taxes) % % Financial result % % Δ% Profit before taxes Other taxes Income taxes Tax rate in % % % % % % % 36.6% 32.9% 34.6% 32.7% Net Income % % EPS in * % % * Weighted average shares outstanding (basic) : 78.9m / : 83.8m / 6m : 79.5m / 6m : 84.8m 13 Software AG. All rights reserved.

14 Earnings / (6 months) Δ% Δ% Net Income % % Income taxes % % Other taxes % % Financial result % % EBIT (before all taxes) % % Margin in % 12.8% 18.7% 13.7% 18.6% Amortization % % EBITA % % Margin in % 18.1% 22.9% 19.0% 22.8% Depreciation % % EBITDA % % Margin in % 19.6% 24.4% 20.5% 24.2% 14 Software AG. All rights reserved.

15 Amortization / depreciation impact ff (preliminary) GJ GJ 2015ff* Amortization IDS Amortization other Depreciation * Estimated 15 Software AG. All rights reserved.

16 Headcount by functional areas* and geography (in FTE) June 30, Dec.31, Δ% qoq June 30, Δ% yoy Total 4,606 5,238-12% 5 5,375-14% Consulting & services 1,906 2,347-19% 2,484-23% R & D % 941 4% Sales & marketing 1,059 1,180-10% 1,229-14% Administration % 721-8% USA % 769-7% Germany 1,251 1,711-27% 1,777-30% Rest of world 2,637 2,749-4% 2,829-7% * According to P+L structure 16 Software AG. All rights reserved.

17 Revenue Δ% Δ% acc Product % -14% Licenses % -33% Maintenance % 2% Consulting & services % -19% Other % -50% Total % -15% 17 Software AG. All rights reserved.

18 Revenue (6 months) Δ% Δ% acc Product % -8% Licenses % -20% Maintenance % 2% Consulting & services % -13% Other % -46% Total % -9% 18 Software AG. All rights reserved.

19 Revenue excl. IDS Consulting* (pro forma) (in Mio. ) Q1 Q3 Q4 FY Product Licenses Maintenance Consulting & services Other Total * IDS Consulting (SAP-products and services); business unit was sold in May 19 Software AG. All rights reserved.

20 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