Q3 2018 | Page 1 of 10
ARIS Digital Twin (p. 3)
Sanjay Brahmawar (p. 4)
IoT Innovation Tour 2018 (p. 6)
CONTENT
S. 3 The Digital Twin
S. 4 Sanjay Brahmawar – Software AG’s new CEO
S. 6 IoT Innovation Tour 2018
S. 8 Software AG boosts up DBP with Built.io
S. 8 Software AG shares back in the MDAX
Q3 2018 | Page 2 of 10
Dear Readers,
During the months of summer, things tend to become somewhat quieter in many companies.
At Software AG though, it is a time to initiate new developments. Last year, ADAMOS was
put on track, the first IoT platform for the machine building industry. This year, on August 1,
2018, the changing of the guard at the top of Software AG took place.
Sanjay Brahmawar was welcomed warmly by the employees at the Darmstadt headquarters
and began his work as the new CEO. In the course of his first weeks, he visited the Software
AG branches and customers all over the world in order to gain personal insights into the
group’s activities.
He will introduce himself to our investors and analysts at the conference call for the
publication of third quarter results on October 19, 2018. In addition, plans are underway for a
Capital Market Day in the first quarter of 2019, where the Executive Board will present the
further strategic direction of Software AG. More to come in the next issue.
Software AG's developments in the area of IoT, the Internet of Things, also point the way
forward. As a result of ongoing acquisitions of innovative technology companies, we were
able to further expand our software portfolio and gain additional partnerships.
What is more, the potential of our core growth engine Digital Business Platform is far from
exploited. To enable companies for the megatrend IIoT, the Industrial Internet of Things,
digital infrastructures have to be created, in most cases accompanied by a digital
transformation. If you wonder how a first step towards digitization may look, please read "The
Digital Twin" (p. 3).
You have questions regarding this issue? Please feel free to write to us at:
[email protected]. The editors are looking forward to your feedback and to
get in touch with you!
Enjoy the read!
Kind regards from Darmstadt
Otmar F. Winzig
Q3 2018 | Page 3 of 10
THE DIGITAL TWIN
A digital twin represents a company's physical assets, and this digital image of corporate
reality is a defining term in the Industrial Internet of Things. The virtual IIoT proxies can be
used, among other things, to extract data from the physical and digital world and derive
recommendations for action.
Digital twins are constantly fed with information about past, current, and future performance
as well as the state of products and production facilities. Through visualization of the data,
they ensure a smooth workflow, even for highly complex end products or assembly lines.
Some of the things the technology behind the virtual proxy must ensure, is a clear
communication between IT and OT (Operational Technology), comprehensive process
transparency, and proactive services.
Software AG's ARIS platform can be used to create an Enterprise Digital Twin – a digital twin
of the entire company, not just its products and production facilities. If required, it can map
from simple models for the early phase of visualization up to complex models that
consistently reflect the operational business and contribute to continuous operational and
performance optimization. ARIS, as an integral part of the Digital Business Platform, provides
enterprise-wide transparency and ensures that processes are tightly coupled and connected
to real-world data across the company. This allows more efficient control of relevant
relationships and dependencies between employees, processes, and system. Additionally, it
Q3 2018 | Page 4 of 10
Kick-off selfie in Darmstadt
creates the conditions for companies to master the complex challenges of digital
transformation. Thus, risks can be averted before they have a negative impact, downtime is
avoided, and companies can tap into new opportunities, gain important insights into company
performance and simulate future scenarios. One practical example from a long list can be
found in the area of supply-chain management, where a transparent value chain can be
created to generate perfectly coordinated processes leading to significant cost savings.
As part of the Digital Business Platform, ARIS lays the foundations for the digital
transformation of companies, empowering them to fully enter the world of the Industrial
Internet of Things.
Further information:
- Find here a video (German, with English subtitles) on a fascinating ARIS Show Case
with Lego®.
- Follow this Link for a video on the Enterprise Digital Twin.
SANJAY BRAHMAWAR – SOFTWARE AG’S NEW CEO
On August 1, 2018, Sanjay Brahmawar, the new
CEO of Software AG, started his worldwide
welcome tour. On his first leg, he met the
employees at the Darmstadt headquarters: 400
attendees plus 2000 more via the internet from
all over the world witnessed an inspiring kick-off
speech which set the signs with the hashtag
#unbeatable:
»The Internet of Things will play a major role in the new chapter of the company’s history.
And we are more than ready for it. In a very short period of time, Software AG has achieved
tremendous progress with its new IoT strategy – a strategy that can set us apart from other
software companies. We do what other, larger companies cannot do. We make IoT real«,
Brahmawar stated.
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In the U.S.A., Brahmawar visited Reston (Virginia), Denver (Colorado), and Santa Clara
(California) and summarized: “With amazing enthusiasm and a lot of energy, our colleagues
in the U.S.A. work to grow our business. This mindset really has become the backbone of
our team, not only in the States but worldwide.”
Bangalore und Hyderabad in India, home of the second largest population of Software AG
employees, were next on his list of tour destinations. “Started in 2004 with 30 pioneers, today
there are over 800 dedicated innovators in India. Growth like that is testament in itself to the
quality of our Bangalore colleagues. The distance between Hyderabad and Darmstadt is
more than 7,000 kilometers. Despite this, our colleagues in Hyderabad make significant
contributions to major German projects”, Brahmawar motivated the colleagues in his country
of origin.
During his first 30 days, Brahmawar met around 2000 colleagues as well as representatives
of blue-chip customers and partner companies, thus collecting impressions and insights in
the realm of Software AG.
Next stops of the tour were
Singapore, Kuala Lumpur
(Malaysia), and Sydney
(Australia). The Asia-Pacific
region grew fastest among all
in 2017 and will keep boosting
the group’s growth. Software
AG’s Singapore office is a
primary hub for sales and
marketing and attends to
numerous overseas customers. Among the renowned customers in this part of the world,
Brahmawar met with representatives of the CommBank Australia (CBA), the leading
Australian bank, and Woolworths, one of the principal Australian supermarket chains. During
his stay in Sydney, Brahmawar was interviewed by CIO Magazine and highlighted Software
AG’s ability to combine the core area of “middleware” with the IoT product portfolio.
(Click here to acces the interview.)
Brahmawar (2nd right) in the Asia-Pacific region
Q3 2018 | Page 6 of 10
From the Far East, Brahmawar travelled back to Europe. Düsseldorf was his next
destination, the home base of the IoT driver Cumulocity. “Our colleagues of Cumulocity and
their leading IoT platform skyrocketed in the past months: Many leading companies have
embedded Cumulocity’s IoT solutions, including Deutsche Telekom, Siemens, and the IIoT
platform ADAMOS”, Brahmawar lauded the colleagues on the banks of the Rhine.
With a last leg to Johannesburg (South Africa), Brahmawar’s welcome tour is brought to a
close. Once back, the new CEO of Software AG will integrate his insights in the group’s
strategy. The new strategy map will be presented to the public in the first quarter of 2019.
IOT INNOVATION TOUR 2018
Software AG’s Innovation Tour 2018
visited not only the German cities of
Stuttgart, Munich, Hamburg, and
Düsseldorf, but as well Vienna and
Zurich in our neighboring countries.
Compressed in four hours, our experts,
partners, and users from different
business sectors presented their
traceable IoT solutions and projects.
For Bernd Gross, Senior Vice President IoT & Cloud, the event in the Cumulocity home town
of Düsseldorf was a special highlight. Over 100 visitors attended the opening of IoT
Innovation Tour 2018 in the capital of North Rhine Westphalia. Gross gave a vivid speech on
„Connect your things & innovate your business“. He he demonstrated how to create the
conditions for the successful implementation of an IoT platform in cooperation with Software
AG by presenting a set of customer use cases from different business segments.
The afternoon agenda was set up by Software AG. In addition to experts of T-Systems and
Siemens, Dorian Gast, Head of Business Development Germany/ Israel/UAE of Dell EMC
was one of the speakers. He informed the attendees of the planned business partnership
between Dell and Software AG and explained the importance of getting started with IoT
projects and working in step with a strong partner to establish long-term success. The plans
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are that Dell customers will be able to benefit from this partnership as of the first quarter of
2019.
Next destination of the tour was the
Austrian capital of Vienna. A1 Digital
International, a subsidiary of Telekom
Austria Group and partner of Software AG,
presented one of the many fascinating IoT
projects of their customers: With iMOW, it
is no longer necessary to cultivate a golf
course with traditional lawn mowers. A whole fleet of small, light mowing robots groom the
course in complete autonomy, without any negative impact on the golfers playing the green.
The devices communicate among themselves as well as with the fleet base and are perfectly
aware of the state of the golf green and where they have to go next. Additionally, the all-
around interconnectedness of the devices allows remote maintenance; and even in the case
of a device going astray, it can simply be located via a GPS.
Every single stop of the Innovation
Tour was rounded off with a vivid
panel discussion on how to
“Implement IoT successfully” and
other topics. Major focus was the
best way to prepare a company for
the digital challenge.
Q3 2018 | Page 8 of 10
SOFTWARE AG BOOSTS UP DBP WITH BUILT.IO
Software AG customers are used to have very easy access to a wide product portfolio. With
the acquisition of Built.io, a set of additional options will become available to them that will
allow a fast and cost-efficient implementation of integration projects. Built.io is a well-
recognized provider of integration Platform as a Service (iPaaS), i.e. cloud-based solutions
for the integration of applications and data harvested in the cloud or at on-premise
environments. With this purchase, Software AG additionally taps into the fast growing
community of open-source software developers focused on the trending Node.js technology.
Yet, the purchase of Built.io is not simply a classical technology acquisition – it is another
step forward within Software AG’s cloud-integration strategy. User of the iPaaS solution can
very quickly access data of various cloud models. Compared to webMethods, the integration
heavyweight of Software AG, this “light” version can be applied much faster. Also, it is highly
productive and much more agile, especially in the context of the users’ event-related
integration projects, and new features like FaaS (Function as a Service) will be accessible.
In March 2018, the independent tech analysts at GARTNER published a Magic Quadrant on
ENTERPRISE INTEGRATION PLATFORMS iPAAS, in which Built.io was already rated as a
“Challenger” – i.e. strong enough to challenge established players. Combined with Software
AG, this potential can mature into a leading position in the fast growing iPaaS market.
SOFTWARE AG SHARES BACK IN THE MDAX
“Software AG shares’ first listing was in the main trading segment (Amtlicher Handel) on the
Frankfurt Stock Exchange on April 26, 1999. This day marked the beginning of a new era in
the company’s 30-year history. […] The strength of the company proved itself once again
after only 6 months, when the shares were admitted to the MDAX. In terms of market
capitalization and stock-exchange turnover – the key criteria – the company ranks high
among the midcap values.” So it was stated in Software AG’s annual report for fiscal 1999.
In March 2000, the euphoria on the German equity market regarding the New Economy
evaporated due to the bursting of the so-called dot-com bubble and numerous companies
from the New Market losing their appeal. This triggered the German stock exchange, the
Q3 2018 | Page 9 of 10
Deutsche Börse AG, to rejig the segmentation of the German equity market, which also
affected companies with valuable and respectable business models – like Software AG.
On January 1, 2003, the new market segment „Prime Standard“ was launched, which
defined stricter requirements regarding the publicity and transparency of companies. At the
same time, the index landscape was restructured. Software AG became part of the Prime
Standard and was moved from the MDAX to the TecDax on March 24, 2003. The discredited
Nemax50 was to get a reputable restart via the TecDAX. With a company history of more
than 30 years at the time, Software AG was weighted as one of the flagships in the new
technology index, which rated as a sector index parallel to the classical indices.
This year, on September 24, another index re-composition of the German index structure
went live. Software AG qualified for being listed with the then 50 and now 60 members of the
second largest index MDAX via the parameters of its market capitalization and trade volume.
Software AG additionally stays listed in the TecDAX, which is being continued as a pure
technology sector index composed of the 30 biggest tech companies listed in Germany.
“We welcome the re-composition of the German stock-market indexes as these now
correspond to global best practice. By being listed again in the MDAX, Software AG gains a
higher awareness with investors, especially with the funds that reproduce the index”,
commented Otmar F. Winzig, Head of Investor Relations at Software AG, the rejig.
Particularly with the ETFs (exchange traded funds) that reproduce the MDAX, and equity
funds that invest in the so-called Mid-Caps, Software AG will now play an additional role and
the demand for their shares should grow.
Q3 2018 | Page 10 of 10
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 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.
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 accordance with the U.S. Securities‘ Act of 1933 in
its currently valid form.
Publisher:
Software AG Investor Relations
Uhlandstraße 12, 64297 Darmstadt,
Germany
T: +49 6151 92 1900
W: softwareag.com
Editor:
Frederic Freichel, Investor Relations
Responsible i.t.t.p.:
Otmar Winzig, Investor Relations
T +49 6151 92 1900
