Software AG

Preliminary Q3 2020

Update Call

© 2020 Software AG. All rights reserved.

AGENDA - THIS SESSION

1

Sanjay Brahmawar, CEO

2

Dr. Matthias Heiden, CFO

3

Malware attack update

Headline numbers

Q3 operational review

Progress into Q4

Q3 preliminary financial results review Summary and outlook

Your Questions

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MALWARE ATTACK

CONTINUITY AND CARE

Response PrinciplesAll customer cloud

Shut down & secured our systems

24/7 hotlines

established for

employees, customers & stakeholders

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Speed

Customer

Focus

Innovation

Workarounds

Stayed

established &

connected,

online collaboration

secure &

implemented

productive

services &

technical support

remained up &

running

Continued to

sign new

deals

FINANCIAL HIGHLIGHTS

Q3 PRELIMINARY RESULTS

Q3

+1% to +4%

+14% to +17%

+57% to +64%

€98.5m -

€80.0m -

€22.5m -

bookings

€101.5m

€82.0m

€23.5m

Group

Digital Business

Cloud & IoT

75% -

SaaS

+3% to +5%

-27% to -31%

& Subscription

80 %

% of Digital

€57.5m -

€18.5m -

bookings

€58.5m

€19.5m

c.+10%

ARR

Digital Business

A&N

excl. Cloud & IoT

9M

+19% to +20%

+22% to +23%

+12% to +13%

€298.5m

-

€219.7m -

€78.7m -

bookings

€301.5m

€221.7m

€79.7m

Group

Digital

A&N

Business

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Full

Confident in our ability to deliver

Year

on our full-year guidance

CONTINUING OUR TRANSFORMATION

TRANSFORMATION PILLARS DRIVING REAL BUSINESS OUTCOMES

FocusIoT

Execution

~ 50

Team166

Cumulocity &

Further product

TrendMiner

recognition

product releases

New customers

Major IoT deal

secured in Q3

with Eppendorf

New colleagues

Managers joined

in Q3

100

global digital

leadership

learning program

20% Q-o-Q uplift in Microsoft partner pipeline

>10 customers in advanced talks re: social distancing solution

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WORKING TO MAINTAIN OUR MOMENTUM ENTERING Q4

Made a strong start

to Q4 execution

Confident in

Shift to digital

-

pipeline quality

marketing is

~€30m bookings

and strength

delivering results

closed, including

Walgreens Boots

Alliance

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Dr. Matthias Heiden

CFO

© 2020 Software AG. All rights reserved.

FINANCIAL HIGHLIGHTS

Q3 PRELIMINARY RESULTS

Q3 bookings

+1% to +4%

+14% to +17%

+57% to +64%

+3% to +5%

-27% to -31%

€98.5m -

€80.0m -

€22.5m -

€57.5m -

€18.5m -

€101.5m

€82.0m

€23.5m

€58.5m

€19.5m

Group

Digital Business

Cloud & IoT

Digital Business

A&N

excl. Cloud & IoT

-14% to -16%

-8% to -10%

+36% to +48%

-12% to -14%

-19% to -21%

Q3 revenue

(-9% - -11%)*

€101.5m - €104.0m

€11.5m -

€90.0m -

€46.0m - €47.0m

€180.5m - €185.0m

€12.5m

€91.5m

Group

Digital Business

Cloud & IoT

Digital Business

A&N

excl. Cloud & IoT

8 |

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*Net of impact from sale of Spanish Professional Services Business

EARNINGS AND MARGINS

IN LINE WITH FY OUTLOOK 2020

€

%

€

%

Q3

Earnings

Q3 Margin

(EBITA, non-IFRS)

YTD (9M)

Earnings

YTD (9M) Margin

(EBITA, non-IFRS)

  • EBIT anticipated in range of €20m - €24m
  • EBITA non-IFRS anticipated in range of €28m - €32m
  • Anticipated in range of 16 - 17%, vs. 30.5% in Q3 2019
  • Q3 2019 included large US Federal deal, impacting comparison
  • EBIT anticipated in range of €81m - €85m
  • EBITA non-IFRS anticipated in range of €109m - €113m
  • Non-IFRSEBITA margin anticipated at c. 19%, vs. 27.7% after 9M 2019
  • In line with seasonal development towards full year target
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OUTLOOK

DBP excl. Cloud & IoT Product Bookings

DBP Cloud & IoT Product Bookings

A&N Product Bookings

Operating Margin (EBITA, non-IFRS)**

FY 2019 Result

  • 241.1m
  • 65.9m
  • 100.8m
    29.2%

FY 2020 Outlook

(adjusted April 23)

+0% to +10%*

+20% to +40%*

-3% to +3%*

20% to 22%

Medium-term

ambitions

unchanged

2023

€1bn

Revenue

25% -

30% Op.

Margin

85%-

90%

Rec Rev (Product)

10 | © 2020 Software AG. All rights reserved.

* At constant currency ** Adjusted for non-operating factors (see non-IFRS earnings definition in the 2019 annual report on p. 50f)

Q&A

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Software AG published this content on 21 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2020 08:29:04 UTC