IOT @ SOFTWARE AG/media/Files/S/Software-AG-IR/... · 2 | This presentation includes...

IOT @ SOFTWARE AG

THE NEW GROWTH DRIVER

KEPLER CHEUVREUX ROADSHOW HELSINKI / STOCKHOLM

MAY 3-4, 2018

© 2018 Software AG. All rights reserved.

2 |

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 eventsand results and are subject to risks and uncertainties. Actual results may vary materially from thoseprojected here, due to factors including changes in general economic and business conditions, changes incurrency exchange, the introduction of competing products, lack of market acceptanceof new products, services or technologies and changes in business strategy. Software AG does not intendor assume any obligation to update these forward-looking statements.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other waysecurities of Software AG or any of the companies that are members of the Group at present or in thefuture, nor does it form part of such an offer and it should not be understood as such. This presentationdoes not constitute an offer of sale of securities in the United States of America. Securities may not beoffered or sold in the United States of America without registration or exemption from registration inaccordance with the U.S. Securities‘ Act of 1933 in its currently valid form.


SAFE-HARBOR-STATEMENT

3 |

SOFTWARE AG AT A GLANCE


Technology leader for more than 40 years in data management and application development platforms

~ €3bnMARKETCAP

~ 66% Free Float

€870+MILLION

IN REVENUE

50%+recurring

75% product revenue

4,500+EMPLOYEES**

R&D26%

S&M19%

Consulting&Services

42%

Admin13%

**P&L as of December 31, 2017

31.2%

FY2016

29.7%

FY201526.8%

FY2013

27.9%

FY2014

Operating margin* expansion

* non–IFRS EBITA in % of revenue

32 – 35%

(2020 target)31.8%

FY2017

4 |

BUSINESS LINES


*Group revenue split FY 2017

Share of Revenue*

52%

• Integration &

Automation

• Real-time Analytics &

Decisions

• In-Memory Data

• Business & IT

Transformation

Share of Revenue*

• Application Development

• Data Management System

• Modernization

• System Support 2050+

Share of Revenue*

• Strategy & Design

• Product Implementation &

Customized Solutions

• Education & Cloud Services

• Global Delivery (on-/offshore)

25% 23%

• IoT solutions

• Industry 4.0 platform

Device Management

• Edge Computing

• Cloud based

software

Digital Business / Platform

IoT / Cloud Adabas & Natural Consulting Services

5 |

DBP Total Revenue

Adabas & Natural

Operating Margin Group(EBITA non-IFRS)2)

OUTLOOK


FULL YEAR 2018

1) At constant currency rates2) Adjusted for non-operating items (see non-IFRS earnings results)3) Weighted average shares outstanding (basic/IAS 33.19) FY 2017: 74.6m / FY 2018: 74.0m; based on new US-Federal-Tax and Euro/US-Dollar exchange rate of 1/1.18

- IoT / Cloud

- DBP excl. IoT / Cloud

EPS non-IFRS3)

FY 2018 Outlook (as of April 13, 2018)

30% to 32%

-6% to -2%1)

N/A

FY 2017(in €m)

223.7

456.4

31.8%

14.9 +100% to +135%1)

+3% to +7%1)441.5

+5% to +15%€2.38

6 |

DATA CENTERED ERA REQUIRES SOFTWARE CENTRICITY


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 comprehensiveworkbench along the value IT chain.

Software AG has singled out a distinct area of growth in (industrial) IoT to leverage its capabilitesto the next level.

Source: industry interviews Bain & company, 2017

7 |

MANUFACTURING, LOGISTICS AND UTILITIES LEADING THE WAY


BUT SIGNIFICANT GROWTH ALSO IN B2C, RETAIL AND OTHER

20%

19%

18%

12%

10%

4%5%

12%

Government Financial Services

IT Services Manufacturing

Services Telco & Media

Transp. & Log. Other

Product Revenue by Industry*

8 |

ESSENTIAL CAPABILITIES TO SUCCEED IN IOT


Big Data & Streaming Analytics

Edge Computing Device Connectivity

IoT

Artificial Intelligence

Machine Learning

Blockchain

9 |

SOFTWARE AG IOT PLATFORM CAPABILITESACQUISITIONS TO CATER THE IOT NEEDS

2011 2013 2016


2017



Machine Learning

Edge Computing

Device Connectivity

IoT Acquistions

Blockchain

2010

Strategic decisionfor IoT

10 | © 2018 Software AG. All rights reserved.

The Forrester Wave™: HYBRID INTEGRATION

(SAG WebMethods)

The Forrester Wave™: IN MEMORY DATA GRID

(SAG Terracotta)

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 UPBEST IOT TECHNOLOGY PARTNER IN THE MARKET…

11 |

SOFTWARE AG DRIVES ECONOMIC VALUE THROUGH DBP


CLIENTS ENDORSE TO VALUE PROPOSITION*

*A Forrester Total Economic ImpactTM Study of the Software AG Digitial Business Platform, April 2018; purpose of the study is to provide readers with a framework to evaluate to potential finanical value of the DBP on their organizations

Forrester created a composite Organization to describe the Total Economic Impact of the DBP

• Incremental revenuecontribution (gross profit)

• Productivity improvements fordevelopers

• IoT connectivity solutionbenefits

• Better business insights withstreaming & predictiveanalytics

Benefits PV (3yrs) ~€6m

• Investment in SaaS DBP

� Labor to deploy & maintainplatform

� SaaS subscription fees forplatform

NPV(3yrs) ~€4.5m

ROI 320% Payback period< 6months

• Compelling business case proposition

• Raises confidence for payback period limited

• Risk-adjusted calculation scheme reflect realistic

expectations as they represent the expected value

considering risk

12 |

ESSENTIAL CAPABILITIES TO SUCCEED IN IOT



Edge Computing Device Connectivity

IIoTPredictive

Maintenance


Machine Learning

Blockchain

13 |

Strengthening Mindsphere platform across industries enabling powerful industry applications


SOFTWARE AG’S SUCCESS STORIES IN IOTIOT ECOSYSTEMS – INDUSTRY 4.0, TELCOS, AUTOMOTIVE, …

Forging joint venture of leading machinery manufactures for Industry 4.0

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), Japan’s NTT (Japan), Deutsche Telekom (T-Systems), Nokia and Huawei.

Transforming auto insurance through behavioral, contextual and driving analytics

April 19, 2018

RESULTS 1st QUARTER 2018(IFRS, UNAUDITED)


15 |

REVENUE


Q1 2018

(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Product revenue 140.4 153.7 -9% -1%

Licenses 34.1 44.9 -24% -17%

Maintenance 102.5 106.9 -4% 4%

SaaS / Usage Based 3.8 1.9 100% 113%

Consulting 46.0 52.1 -12% -8%

Other 0.2 0.1 - -

Total 186.6 205.9 -9% -2%

Segment result

16 |

Euro36%

US Dollar28%

Other14%

CURRENCY IMPACT ON REVENUE


Q1 2018

(in €m; yoy)

Q12018

Q1in %

Licenses -3.2 -9%

Maintenance -8.9 -8%

SaaS -0.2 -6%

Consulting & Other -2.1 -4%

Total -14.4 -7%

Currency impact on revenue

� 36% revenue in Euro

� 64% revenue in foreign currency

Currency split Q1 2018

BRL 5%

AUD 4%

CAD 3%

GBP 5%

ILS 5%

17 |

DBP PRODUCT REVENUE SEASONALITY


SHARE OF ANNUAL REVENUE IN THE QUARTERS

21.1%21.4%

23.2%

20.4%

0%

5%

10%

15%

20%

25%

30%

35%

Q1 Q2 Q3 Q4

2015 2016 2017 2018

18 |

DIGITAL BUSINESS PLATFORM (INCLUDING IoT/CLOUD)

SEGMENT REPORT Q1 2018


(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Licenses 25.2 37.1 -32% -25%

Maintenance 66.8 66.9 0% 8%

SaaS / Usage Based 3.8 1.9 100% 113%

Total revenue 95.8 105.9 -10% -2%

Cost of sales -8.6 -7.4 16% 23%

Gross profit 87.2 98.5 -11% -4%

Sales & Marketing -37.8 -44.8 -16% -9%

Research & Development -22.7 -23.7 -4% 1%

Segment result 26.7 30.0 -11% 1%

Margin in % 27.9% 28.3%

ARR (Annual Recurring Revenue)

276.5 262.0 6% 14%* * Internal Plan Rate 2018 used

19 |

IoT / CLOUD BUSINESSSEGMENT REPORT Q1 2018


(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Licenses 1.8 0.7 157% 178%

Maintenance 0.8 0.4 100% 95%

SaaS / Usage Based 3.8 1.9 100% 113%

Total revenue 6.4 3.0 113% 125%

ARR (Annual Recurring Revenue)

18.7 11.1 68% 81%*

* Internal Plan Rate 2018 used

20 |

ADABAS & NATURAL



(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Licenses 9.0 7.8 15% 23%

Maintenance 35.6 40.1 -11% -2%

Product revenue 44.6 47.9 -7% 2%

Other 0.2 0.1 - -

Total revenue 44.8 48.0 -7% 2%

Cost of sales -1.4 -2.8 -50% -45%

Gross profit 43.4 45.2 -4% 5%

Sales & Marketing -6.6 -8.1 -19% -17%

Research & Development -5.6 -6.1 -8% -7%

Segment result 31.2 31.0 1% 13%

Margin in % 69.6% 64.6%

21 |

CONSULTING



(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Total revenue 46.1 52.1 -12% -8%

Cost of sales -37.5 -41.7 -10% -6%

Gross profit 8.6 10.4 -17% -14%

Sales & Marketing -4.4 -4.9 -10% -7%

Segment result 4.2 5.5 -24% -22%

Margin in % 9.1% 10.6%

22 |

RESULTS


Q1 2018

(in €m) Q1 2018

Q1 2017

∆% ∆%acc

Total revenue 186.6 205.9 -9% -2%

Cost of sales -49.5 -55.0 -10% -6%

Gross profit 137.1 150.9 -9% -1%

Margin in % 73.5% 73.3%

Research & Development -28.3 -29.8 -5% 0%

Sales & Marketing -52.0 -62.4 -17% -11%

Administration -17.1 -18.5 -8% -3%

Other income / expense 2.4 1.3 - -

EBIT 42.1 41.5 1% -

Margin in % 22.6% 20.2%

23 |

EARNINGS


Q1 2018

* Weighted average shares outstanding (basic) Q1 2018: 74.0m / Q1 2017: 75.9m

(in €m) Q12018

Q12017

∆%

EBIT (before all taxes) 42.1 41.5 1%

Financial result 1.3 -0.2 -

Profit before taxes 43.4 41.3 5%

Other taxes -1.8 -2.0 -10%

Income taxes -11.7 -12.0 -3%

Tax rate in % 31.1% 33.9%

Net income 29.9 27.3 10%

EPS in €* 0.40 0.36 11%

24 |

NON-IFRS EARNINGS


Q1 2018

* Weighted average shares outstanding (basic) Q1 2018: 74.0m / Q1 2017: 75.9m

(in €m) Q12018

Q12017

∆%

EBIT (before all taxes) 42.1 41.5 1%

Amortization on acquisition related intangible assets 5.3 7.8 -

Share based payments 2.9 0.4 -

Restructuring / severances / legal case 0.8 1.6 -

Other impacts / impacts from M&A activities 0.1 5.0 -

EBITA (non-IFRS) 51.2 56.3 -9%

in % of revenue (Non-IFRS) 27.4% 27.3%

Net income (non-IFRS) 36.5 37.3 -2%

EPS in € (non-IFRS)* 0.49 0.49 0%

25 |

CASH FLOW


Q1 2018

* 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) Q1 2018: 74.0m / Q1 2017: 75.9m

(in €m) Q12018

Q12017

∆%

Operating cash flow 61.6 61.7 0%

./. CapEx* -1.5 -18.4

Free cash flow 60.1 43.3 39%

in % of revenue 32.2% 21.0%

Free cash flow per share*** 0.81 0.57 42%

**

26 |

372.1

Mar. 31,2018

Mar. 31,2018

Assets Liabilities

BALANCE SHEET


(in €m)

Dec. 31,2017

Dec. 31,2017

365.8

279.6

55.3

1,125.9

1,907.5

Cash and cash equivalents

Financial assets

Trade and other receivables

Fixed assets(Goodwill 910.2 / 921.4)

Total

80.9

Non-financial assets

310.6

357.8

120.8

1,118.3

1,907.5

Financial liabilities

Other liabilities

Deferred income

Shareholders’ equity (ratio 60.9% / 58.6%)

Total

238.964.9

1,106.3

1,832.7

50.5

256.2

282.6

178.5

1,115.4

1,832.7

27 |

DBP Total Revenue

Adabas & Natural

Operating Margin Group(EBITA non-IFRS)2)

OUTLOOK


FULL YEAR 2018

1) At constant currency rates2) Adjusted for non-operating items (see non-IFRS earnings results)3) Weighted average shares outstanding (basic/IAS 33.19) FY 2017: 74.6m / FY 2018: 74.0m; based on new US-Federal-Tax and Euro/US-Dollar exchange rate of 1/1.18

- IoT / Cloud

- DBP excl. IoT / Cloud

EPS non-IFRS3)

FY 2018 Outlook (as of April 13, 2018)

30% to 32%

-6% to -2%1)

N/A

FY 2017(in €m)

223.7

456.4

31.8%

14.9 +100% to +135%1)

+3% to +7%1)441.5

+5% to +15%€2.38

January 25, 2018

Arnd Zinnhardt, CFO

RESULTS 4th QUARTER 2017(IFRS, UNAUDITED)


29 |

REVENUE


Q4 2017 / FY 2017

(in €m) Q4 2017

Q4 2016

∆% ∆%acc

FY2017

FY2016

∆% ∆%acc

Product revenue 219.0 213.7 3% 8% 678.3 675.2 0% 2%

Licenses 115.3 107.5 7% 14% 256.7 263.0 -2% 0%

Maintenance 103.7 106.2 -2% 2% 421.6 412.2 2% 3%

Consulting 48.8 49.8 -2% 0% 198.8 195.2 2% 2%

Other 0.6 0.4 - - 1.9 1.4 - -

Total 268.4 263.9 2% 7% 879.0 871.8 1% 2%

Segment result 6.2 7% 20.8

30 |

Euro34%

US Dollar31%

Other15%

CURRENCY IMPACT ON REVENUE


Q4 2017 / FY 2017

(in €m; yoy)

Q42017

Q4in %

FY2017

FYin %

Licenses -7.3 -6% -7.2 -3%

Maintenance -5.2 -5% -2.2 -1%

Consulting & Other -1.2 -2% -0.6 0%

Total -13.7 -5% -10.0 -1%

Currency impact on revenue

� 34% revenue in Euro

� 66% revenue in foreign currency

Currency split FY 2017

BRL 4%

ZAR 3%

AUD 3%

GBP 6%

ILS 4%

31 |

DIGITAL BUSINESS PLATFORMSEGMENT REPORT Q4 2017 / FY 2017

(in €m) Q4 2017

Q4 2016

∆% ∆%acc

FY 2017

FY2016

∆% ∆%acc

Licenses 77.8 78.1 0% 6% 186.9 186.3 0% 3%

Maintenance 66.9 66.3 1% 6% 268.5 255.1 5% 6%

Total revenue 144.7 144.4 0% 6% 455.4 441.4 3% 5%

Cost of sales -12.0 -9.2 30% 34% -33.3 -31.3 6% 8%

Gross profit 132.7 135.2 -2% 4% 422.1 410.1 3% 5%

Sales & Marketing -49.6 -52.1 -5% 0% -174.3 -172.4 1% 2%

Research & Development -25.7 -23.7 8% 9% -96.9 -89.9 8% 6%

Segment result 57.4 59.4 -3% 5% 150.9 147.8 2% 7%

Margin in % 39.7% 41.1% 33.1% 33.5%


32 |

ADABAS & NATURAL


SEGMENT REPORT Q4 2017 / FY 2017

(in €m) Q4 2017

Q4 2016

∆% ∆%acc

FY2017

FY2016

∆% ∆%acc

Licenses 37.6 29.4 28% 37% 69.9 76.8 -9% -6%

Maintenance 36.8 39.9 -8% -3% 153.1 157.1 -3% -3%

Product revenue 74.4 69.3 7% 14% 223.0 233.9 -5% -4%

Other 0.2 0.2 0% 5% 0.7 0.7 0% -1%

Total revenue 74.6 69.5 7% 14% 223.7 234.6 -5% -4%

Cost of sales -2.8 -3.1 -10% -7% -10.1 -11.7 -14% -12%

Gross profit 71.8 66.4 8% 15% 213.6 222.9 -4% -3%

Sales & Marketing -10.0 -13.8 -28% -24% -33.3 -38.0 -12% -11%


Segment result 55.7 46.5 20% 28% 156.5 162.4 -4% -3%

Margin in % 74.6% 66.9% 70.0% 69.2%

33 |

CONSULTING


SEGMENT REPORT Q4 2017 / FY 2017

(in €m) Q4 2017

Q4 2016

∆% ∆%acc

FY2017

FY2016

∆% ∆%acc

Total revenue 49.2 50.0 -2% 1% 199.9 195.9 2% 2%

Cost of sales -40.2 -39.0 3% 5% -156.9 -157.5 0% 0%

Gross profit 9.0 11.0 -18% -15% 43.0 38.4 12% 14%

Sales & Marketing -4.9 -4.8 2% 6% -19.1 -17.6 9% 10%

Segment result 4.1 6.2 -34% -31% 23.9 20.8 15% 17%

Margin in % 8.3% 12.4% 11.9% 10.6%

34 |

RESULTS


Q4 2017 / FY 2017

(in €m) Q4 2017

Q4 2016

∆% ∆%acc

FY 2017

FY2016

∆% ∆%acc

Total revenue 268.4 263.9 2% 7% 879.0 871.8 1% 2%

Cost of sales -58.0 -54.3 7% 9% -213.4 -211.8 1% 1%

Gross profit 210.4 209.6 0% 6% 665.6 660.0 1% 2%

Margin in % 78.4% 79.4% 75.7% 75.7%


Sales & Marketing -68.1 -75.0 -9% -5% -243.5 -245.7 -1% 0%

Administration -20.9 -22.9 -9% -6% -75.9 -79.3 -4% -4%

Other income / expense -6.9 -6.7 - - -2.8 -8.6 - -

EBIT 82.7 75.1 10% - 222.8 213.9 4% -

Margin in % 30.8% 28.5% 25.3% 24.5%

35 |

EARNINGS


Q4 2017 / FY 2017

* Weighted average shares outstanding (basic) Q4 2017: 74.0m / Q4 2016: 76.2m / FY 2017: 74.6m / FY 2016: 76.2m

(in €m) Q42017

Q42016

∆%FY2017

FY2016

∆%

EBIT (before all taxes) 82.7 75.1 10% 222.8 213.9 4%

Financial result 1.9 -1.8 - 1.4 -4.4 -

Profit before taxes 84.6 73.3 15% 224.2 209.5 7%

Other taxes -1.9 -1.6 19% -7.2 -5.5 31%

Income taxes -34.5 -21.5 60% -76.4 -63.6 20%

Tax rate in % 43.0% 31.5% 37.3% 33.0%

Net income 48.2 50.2 -4% 140.6 140.4 0%

EPS in €* €0.65 €0.66 -2% €1.88 €1.84 2%

36 |

NON-IFRS EARNINGS


Q4 2017 / FY 2017

* Weighted average shares outstanding (basic) Q4 2017: 74.0m / Q4 2016: 76.2m / FY 2017: 74.6m / FY 2016: 76.2m

(in €m) Q42017

Q42016

∆%FY2017

FY2016

∆%

EBIT (before all taxes) 82.7 75.1 10% 222.8 213.9 4%

Amortization on acquisition related intangible assets 6.6 7.3 -8% 29.6 29.1 2%

Share based payments 6.1 3.2 91% 20.7 14.2 46%

Restructuring / severances / legal case 2.0 2.9 -7% 4.7 11.8 -54%

Other impacts / impacts from M&A activities 1.0 1.7 -41% 1.7 3.0 -67%

EBITA (non-IFRS) 98.4 90.2 9% 279.5 272.0 3%

in % of revenue (Non-IFRS) 36.7% 34.2% 31.8% 31.2%

Net income (non-IFRS) 56.7 61.1 -7% 177.3 180.4 -2%

EPS in € (non-IFRS)* €0.77 €0.80 -4% €2.38 €2.37 0%

37 |

CASH FLOW


Q4 2017 / FY 2017

* 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) Q4 2017: 74.0m / Q4 2016: 76.2m / FY 2017: 74.6m / FY 2016: 76.2m

**

(in €m) Q42017

Q42016

∆%FY

2017FY

2016∆%

Operating cash flow 43.4 46.5 -7% 189.4 203.7 -7%

./. CapEx* -2.8 -4.9 -27.5 -16.7

Free cash flow 40.6 41.6 -2% 161.9 187.0 -13%

in % of revenue 15.1% 15.8% 18.4% 21.4%

Free cash flow per share*** €0.55 €0.55 0% €2.17 €2.45 -11%

38 |

365.8

Dec. 31,2017

Dec. 31,2017

Assets Liabilities

BALANCE SHEET


(in €m)

Dec. 31,2016

Dec. 31,2016

374.6

305.9

55.7

1,161.6

1,957.2

Cash and cash equivalents

Financial assets

Trade and other receivables

Fixed assets(Goodwill 921.4 / 936.6)

Total

59.4

Non-financial assets

301.5

327.0

133.1

1,195.6

1,957.2

Financial liabilities

Other liabilities

Deferred income

Shareholders’ equity (ratio 58.6% / 61.1%)

Total

279.6

55.3

1,125.9

1,907.5

80.9

310.6

357.8

120.8

1,118.3

1,907.5

39 |

SHAREHOLDER STRUCTURE


33.3%61.7%

Software AGFoundation

Own Shares(0.03%)

InstitutionalInvestors

Private Investors

according to notification of voting rights above 3% threshold of shares outstandingNumber of total shares: 74,000,000

Thereof Free Float: ~ 66%

Number of shares outstanding: ~ 74m

Registered shares since Oct. 2, 2017

Share Data Major Institutional ShareholdersShare Info

SOW, SOW:GR, SOWGn.DE

ISIN: DE000A2GS401

ADR symbol: STWRY

Indices: TecDAX, DAX100, TechAllShare

Deutsche Asset Mgt. Investment 4.91% 20.10.2017

Axxion S.A. 3.30% 13.03.2018

OWNERSHIP REGIONAL SPLIT*

32.4%

21.4%

28.2%

17.5%

Germany

North America

Continental Europe(excl. Germany)

UK & Ireland

Rest of World

*institutional investors based on public files, May 2018

40 |

CASH USE:


SHARE BUY-BACK

Buy-back own shares 2013 - 2014

Cancellation of treasury shares

April 30, 2015

Buy-back own shares 2015

Sept. 8 -Dec. 4, 2015

Until cancellation/cap. reduction:

Share capital: 86,943,945.00 €

Number of shares: 86,943,945

€ 225m9.2%

€ 70m3.4%

- 9.1%

-3.29%

Until cancellation/cap. reduction:



Cancellation of treasury sharesMarch 14, 2017

Since cancellation/cap. reduction:



Own sharesSince March 27, 2018

Buy-back own shares 2017

March 13 -May 11, 2017

€ 89m3.266%

0.03%

Cancellation oftreasury sharesMarch 27, 2018

-3.14%

Since cancellation/cap. reduction:



41 |

CASH RETURN TO SHAREHOLDERS


Ø ¾ FREE CASH FLOW TURNS INTO DIVIDENDS AND SBB

0

50

100

150

200

250

2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018*

Free Cash Flow

Share Buy-Back +Dividends

* Dividend recommendation, subject to the agreement at the Annual General Meeting in May 2018

€m


APPENDIX

43 |

ARR – IOT / CLOUD DEVELOPMENT (NET OF CURRENCY*)

STATUS Q1 2018

13%6%

20%

27%

0

5

10

15

20

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Subscription License

Maintenance

SaaS

TOTAL ARR

∆ Prior Quarter


*Internal Plan Rate 2018 used

44 |

HEADCOUNT


BY FUNCTIONAL AREAS* AND GEOGRAPHY

* According to P+L structure

(in FTE) Mar. 31,2018

Dec. 31,2017

∆% Mar. 31,2017

∆% yoy

Total 4,610 4,596 0% 4,486 3%

Consulting & Services 1,938 1,935 0% 1,891 2%

Research & Development 1,197 1,176 2% 1,122 7%

Sales & Marketing 868 862 1% 863 1%

Administration 607 623 -3% 610 0%

Germany 1,210 1,201 1% 1,141 6%

USA 575 575 - 599 -4%

India 813 823 -1% 764 6%

Rest of world 2,012 1,997 1% 1,982 2%

45 |

ALLOCATION OF CLOUD HOSTING REVENUE


NEW: WITHIN IoT/CLOUD REVENUE LINE (ADJ. FY 2017)

DBP FY 2017 (reported)€455.3m

Consulting FY 2017 (reported)€199.9m

Adj. DBP FY 2017 €456.4m (incl. Hosting)

Adj. Consulting FY 2017€198.8m (excl. Hosting)

Cloud Hosting Revenue Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017

(€m) 0.216 0.248 0.294 0.303 1.061

46 |

IoT / CLOUD REVENUE SPLIT FOR 2017


In €m Q1 Q2 Q3 Q4 FY 2017

License0.7 0.7 0.7 1.5 3.5

Maintenance0.4 0.6 0.7 0.7 2.4

SaaS*1.9 2.2 2.4 2.6 9.1

IoT / Cloud Revenue

3.0 3.5 3.7 4.8 14.9

* Incl. Cloud Hosting Revenue

47 |

Amortization

(in €m)

Depreciation

* Estimated

AMORTIZATION / DEPRECIATION IMPACT


(PRELIMINARY)

FY2018*

FY2019*

FY2020*

Q12018

-5.3

-2.7

-19.3

-10.9

17.7

12.0

10.7

12.0

48 |

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T: +49 (0) 6151 / 92 1900F: +49 (0) 6151 / 9234 1900 W: softwareag.comE: [email protected]



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