Introduction to The Sage Group plc
December 2013
An introduction to The Sage Group plc 1 Our vision
Our vision is to be recognised as the most valuable supporter of small and medium sized companies by creating greater freedom for them to succeed.
An introduction to The Sage Group plc 2 What we do
We provide small and medium sized Businesses come in all shapes and sizes organisations with a range of easy-to-use and while every one of our customers is unique they have common technology business management software and needs - for simple, secure and smart services - from accounting and payroll, to solutions that reduce complexity and risk. enterprise resource planning, customer When they have problems that need relationship management and payments. resolving, they want to speak to a real person – someone they can trust. So we make sure we’re always there to listen and help. Our customers receive continuous advice and support through our global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions.
An introduction to The Sage Group plc 3 Key facts about our organisation
Market Finances Customers ‒ Global company with over ‒ Revenue of £1,376.1m** ‒ Provide advice to 12,700 employees* million for FY2013* customers through 1.9 ‒ Over 6 million customers ‒ Organic revenue growth of million support contracts* worldwide* 4% for 2013 (2012: 2%)* ‒ Manage around 36,000 ‒ One of the market ‒ EBITA £375.8m* customer calls each day* leaders in the UK, North ‒ Market capitalisation of ‒ Work with 22,600 reseller America, Europe, South approximately £4 billion* partners and more than Africa, Asia and Brazil 40,000* accountants ‒ More than 40 acquisitions since 1991 worldwide
An introduction to The Sage Group plc *Data for financial year ending September 2013 4 ** Statutory revenue How we started
An introduction to The Sage Group plc 5 How we work
Our business is guided by our five principles which shape everything we do and how we do it.
Simplicity Agility Innovation Trust Integrity
An introduction to The Sage Group plc 6 We group ourselves into three regional businesses
Europe Americas AAMEA ‒ UK, Ireland, Germany, ‒ US, Canada and Brazil ‒ South Africa, Australia, Switzerland, Poland, Austria, ‒ Strong presence in small Singapore, Malaysia, India, France, Spain, Portugal, business, a market leader Dubai, Botswana, Namibia, Belgium plus a subsidiary in Canada and Brazil Kenya and Nigeria in Morocco ‒ 3,540 employees* ‒ One of the market leaders in One of the market leaders in South Africa, Australia and ‒ ‒ Revenue £448.2 million* the UK, France, Ireland, Spain, Malaysia ‒ EBITA £115.0 million* Switzerland and Poland ‒ 2,000 employees* ‒ 7,200 employees* ‒ Revenue £151.0 million* ‒ Revenue £776.9 million* ‒ EBITA £40.6 million* ‒ EBITA £220.2 million*
An introduction to The Sage Group plc * Data for financial year ending September 2013 7 Which all operate under the guidance of our executive team*
Alvaro Ramirez Pascal Houillon Ivan Epstein Chief Executive Officer Chief Executive Officer Chief Executive Officer Europe North America AAMEA
Guy Berruyer Chief Executive Officer
Michael Robinson Klaus-Michael Vogelberg Amanda Jobbins Richard Drury Company Secretary Group Chief Technology Group Chief Marketing Officer Group Human Resources and Group Legal Director Officer Director
* Steve Hare joins Sage as Group Chief Financial Officer in January 2014
An introduction to The Sage Group plc Our strategy for growth
Our ambition is to double our long-term 1. Focusing the business historic organic revenue growth rate from By reallocating resources to focus 3% to 6% by 2015, together with a on core business strengths and targeted EBITA margin increase of 1 to 2 opportunities for greatest growth percentage points over the same period. We will achieve this through a relentless 2. Capturing the technology opportunity focus on our growth cornerstones: By capturing the commercial opportunities presented by the technology disruption transforming what customers need and expect 3. The benefits of subscription By moving to a more flexible, affordable, higher value added pricing model, providing more active customer relationships and long-term, high-quality recurring revenue streams
An introduction to The Sage Group plc 9 Financial performance fiscal years 2006-2013
1500 1376.1 1334 1340.2 1269 1278 1155
927 1001 1000
Revenue* EBITA
MillionsofPounds 500 375.8 337 365 366.4 291 294 245 274
0 2006 2007 2008 2009 2010 2011 2012 2013
*Statutory revenue;
An introduction to The Sage Group plc 10 Our customers
We develop software specifically for start-up, small and medium sized businesses and the mid-market, because their requirements are different and one size does not fit all.
Our customers range from business owners to book-keepers and finance directors across three market segments.
An introduction to The Sage Group plc 11 Market leadership
Sage is the 3rd largest ERP solution provider to businesses worldwide
SAP 24.6%
OTHERS 47%
ORACLE 12.8%
SAGE 6.3%
INFOR 6.2% Source: Gartner, ERP Software Market Share MICROSOFT Top 10. Published March 2013. 4.6%
An introduction to The Sage Group plc 12 An introduction to The Sage Group plc 13 Our core strengths
An introduction to The Sage Group plc 14 Our ecosystem
Business partners are key not only We work with a global network of over in selling our software and services, 22,600 business partners who provide: but also in providing local expertise – Implementation and customisation to customers who demand – Training and support increasing levels of tailored – Specialist sector knowledge software and specialised services. Plus more than 40,000 accountants and small business advisors who recommend and market Sage products worldwide.
An introduction to The Sage Group plc 15 Our software and support
We are guided by the current and future needs of our customers and the unrivalled position Sage enjoys to help small and medium sized companies apply technology to best effect. We view technology as an enabler to give customers control of their business, to work smartly and efficiently, to achieve success and to grow. We foresee the implications of legislative and business change and use this insight to deliver software, training and support services that help our customers to run their businesses with confidence.
An introduction to The Sage Group plc 16 Our people
Sage is very special. Our people make us that way. There is a warmth to how we treat each other and our customers that is rare in organisations as big and focused on success as we are. Our people are given the skills and support they need to breed confidence in themselves and everyone they touch. Our guiding principles of Innovation, Integrity, Simplicity, Trust and Agility drive everything we do: how we think, plan and make decisions to deliver operational excellence and best serve our customers.
An introduction to The Sage Group plc 17 All working together to deliver...
Extraordinary Customer Experiences Awards ‒ Nearly 5,000 customer support staff − South Africa: Winner of Best Help Desk globally in the world at the Contact Centre World Top Ranking Performer global finals 2013. ‒ 36,000 calls per day for technical support, accounting questions and − North America: Winner ‘Best Company advice on new legislation to Work For’- Best Companies to Work for in Texas Awards 2013 ‒ 1.9 million support contracts − North America: Winner for Sage Advisor: Personalizing the Customer Experience CXPA - Customer Experience Innovation Awards 2013
− Spain: Madrid Regional Government: Madrid Excellence Award for Consumer Confidence 2013 − Germany: Best vendor of business software solutions - WEKA Media Publishing Awards 2013
An introduction to The Sage Group plc 18 In conclusion
We don’t just make software products – we use technology to support the success of millions of small and medium sized companies around the world.
An introduction to The Sage Group plc 19 Thank you
An introduction to The Sage Group plc 20