EASY SOFTWARE AG Investor Call 07.01.2019
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EASY SOFTWARE AG
Investor Call 07.01.2019
© Copyright by EASY SOFTWARE AG
Disclaimer
This presentation contains forward-looking statements that refer to future events, future business development, and future financial
developments. These rest on current expectations and specific assumptions by the CEO, a great number of which are outside the
sphere of influence of EASY SOFTWARE AG.
Forward-looking statements comprise uncertainties, known and unknown risks and/or other factors that, individually or through their
interaction, may cause the actual financial situation and/or the actual results, services or the like of the EASY Group to vary from that
which was directly or implicitly expected in the forward-looking statements. The possible variations may also assume a significant
scope here. Also, the underlying expectations by the CEO may not be reached or the assumptions may not have been correct; in this
case, the actual results and successes of the EASY Group – both negative and positive ones – may significantly vary from the results
that the forward-looking statements expressly or implicitly contain.
Factors that influence the actual development of the EASY Group are, for example, market development; general economic
development in those countries and industries where EASY operates; competitors; winning/losing qualified employees; fluctuations in
currency rates; changes to legislation or the regulatory environment including tax legislation; but also terrorist attacks, force majeure,
acts of war, epidemics, civil unrest, development of the international financial markets, etc.
The EASY Group expressly warns against relying on forward-looking statements. These only reflect the opinion of the Management at
the time of preparing this presentation. The EASY Group disclaims all liability for updating or following through these forward-looking
statements.
Stand: Oktober 2018
2
Our company – The EASY SOFTWARE AG Why to own EASY SOFTWARE shares? Financial Performance Strategy EASY21 #NEW#: Acquisition of Apinauten GmbH
What we stand for
Expertise.
Earthiness. Farsightedness.
EASY SOFTWARE offers
EASY SOFTWARE was New portfolio elements of
solutions for content
founded in 1990. Seat of EASY SOFTWARE AG
management, cloud and
the AG is in Mülheim an address current
mobility based on state-
der Ruhr. digitization trends.
of-the-art technologies.
Strength. Fairness & Teamwork.
Digital transformation.
VISION
Our vision is a world in which people see digitization as an opportunity. EASY EASY SOFTWARE is one of The employees of EASY
Digitization and
accelerates, simplifies and optimizes work processes with digital solutions. the market leaders of SOFTWARE AG share
automation of business
content management common values and show
EASY makes people more successful and relieves the strain on them. processes.
software in Germany. responsibility (social
responsibility).
“In the heart of Germany, we produce intuitive, tailored software products,
which integrate seamlessly into existing business processes and automate, Service orientation. Adaptability.
Reliability.
MISSION
mobilize and optimize workflows around the world. We digitize as people for With more than 100 EASY SOFTWARE offers
Customers in more than
people and enable our customers from every industry to make long-lasting, partners, EASY individual, user-oriented
60 countries rely on EASY
SOFTWARE relies on a document management
well-founded decisions. We make knowledge in companies usable strong and reliable sales solutions, even for older
SOFTWARE solutions with
independently of time and place and render digitization simply accessible over 12.500 installations.
and service network. infrastructures.
for everyone.”
© Copyright by EASY SOFTWARE AG 4
Five reasons why to own EASY SOFTWARE shares
1 We operate in a promising, dynamic market with high growth potential.
(Opportunity to increase market share and EBITDA margins)
We have a strong and broad product and service portfolio that allows us to respond to the needs of our
2 customers in a user-oriented manner. New technological trends create the opportunity for its expansion and
development of new customer groups, markets and business models.
3 We have a solid financial and management team position in order to position EASY SOFTWARE sustainably, first
class and successfully on the market.
4 We deepen our value chain through strategic acquisitions.
5 We have a convincing strategy with EASY 21.
© Copyright by EASY SOFTWARE AG 5
EASY Group| Actuals and Expectations
in Mio € Revenue in Mio € EBITDA
50 3,5
3,0
40
2,5
30 2,0
20 40,5 42,7 45 1,5 3,0
36 38,4 2,6
1,0 2,2 2,3 2,0
23 25
10 1,4
0,5
0 0,0
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018*
Revenue Forecast Upper Limit EBITDA Forecast Upper Limit
Employees Revenue Estimation 2018
350
300 10
250
200 Licenses
1
150 315
260 270 24 Cloud
235 242
100
143 157 Consulting
50 10
Stand:
0 Oktober 2018 Support
in Mio €
2012 2013 2014 2015 2016 2017 2018
Employees
© Copyright by EASY SOFTWARE AG All numbers are AS IF: Otris AG reported at equity *No Forecast is provided due to one off effects during the year end closing 2018 6
EASY21 Strategy | Global Trends
According to a report by McKinsey, “Productivity growth has fluctuated over time; it has been declining since the 1960s and
today stands near historical lows.” In fact, between the years of 2010-2014, the total labor productivity growth stood at a
negative 0.2%, compared to a positive 3.6% in 2000-2004 – just a decade difference. It is critical that digitization and
technology are adopted by all enterprise, not just a select few, to boost productivity. Also called digital diffusion, McKinsey
Digitization states, “Action is needed both to overcome adoption barriers of large incumbent business and to broaden the adoption of
digital tools by all companies and citizens. Actions that can promote digital diffusion include: leading by example and digitizing
the public sector, leveraging public procurement and investment in R&D and driving digital adoption by small and medium-
sized enterprises.”
Source: Forbes, April 3rd, 2018: https://www.forbes.com/sites/danielnewman/2018/04/03/3-ways-to-embrace-digitization-to-improve-
productivity/#78168f0d266e
The global mobile workforce is set to increase from 1.32 billion in 2014, accounting for 37.4% of the global workforce, to
1.75 billion in 2020, accounting for 42.0% of the global workforce. Globalization will continue to drive the growth of mobile
office workers in all regions as executives, consultants, sales & field professionals, and other mobile professionals of
Mobility multinational corporations proliferate. Mobile devices that are better designed to meet the needs of mobile workers of all
types and at reasonable price points will enable a greater number of workers to become mobile.
Source: Strategy Consultants, https://www.strategyanalytics.com/access-services/enterprise/mobile-workforce/market-data/report-
detail/global-mobile-workforce-forecast-2015-2020
The enterprise SaaS market is now generating $20B in quarterly revenues for software vendors, a number that is growing by
32% per year. Microsoft is in the lead with a worldwide market share of over 17% and is now the leading SaaS vendor
primarily due to its leadership in the high-growth collaboration segment.
Cloud SOURCE: QUARTERLY SAAS SPENDING REACHES $20 BILLION AS MICROSOFT EXTENDS ITS MARKET LEADERSHIP, SYNERGY RESEARCH GROUP.
AUGUST 21, 2018.
7
ERP Market | Shift to Cloud
114,8 123,3 135,1 138,9 152,2 186,8 189,3
29,3
27,8
28,6 42,8
29,4
30,5
42,15%
41,6
29,7
29,3 41,1
42,6
40,7 Cloud Business, 2018
79,8
40,5
38,5 63,6
51,2 Customers are shifting
39,6
25,8
33,4 to cloud
21,1 4,0
2,6 3,3
0,8 1,0 1,5 2,0
26,4 27,1 27,1 28,7 30,6 33,3
25,2
2012 2013 2014 2015 2016 2017 2018*
2018
Umsatz mit Anbie terservice Hosting-Umsatz SaaS-Umsatz Wartungsumsatz Lizenzum satz
*Forrester Forecast; Data in Billion Dollars, Source: Forrester Research
8
Mobilization
Apps, wearables,
Business
UX/UI
Processes EASY
Automation
Digital processes
Artificial Intelligence
Machine learning
TRADITIONAL DIGITAL
BUSINESS PROCESSES BUSINESS PROCESSES
Existing Systems Connected Systems
Acceleration and future proof – Enterprise business agility
Real Time Flexible optimization of Simple and fast
Time to market
processes integrations
Many deplore the speed of the present
time.
However: It will never be as slow again
New business as it is today.
Mobilization Scalable Platform New services
models
9
EASY Portfolio | Platforms drive digitization
Micro-Services Platforms Digitization of Business Processes Seamless Backend Integration
10EASY Portfolio | General Direction
On Premises Hybrid Cloud
Integration into Backend Modern, mobile User Innovate by adding
Experience Micro Services
11EASY21 | Strategy
Strategy
Software Company to watch Double digit growth and EBITDA
in Content Services
Strategic Goals
Growth in Cloud Innovation Internationalization Deepen the value chain
© Copyright by EASY SOFTWARE AG 12Acquisition | Apinauten GmbH
Apinauten GmbH develops and markets Mobile Backend as a Service Plattform
49 >45
FOUNDED FOUNDER EMPLOYEES SITES CUSTOMERS AWARDS
The team started with CEO January 2013 Apinauten Apiomaten GmbH is
Marcel Etzel 2013 with five GmbH received a Seed serving more than 45
Mobile Professionals in Funding from Technologie- enterprise customers and
Jena. gründerfonds Sachsen and 15 partners.
moved to Leipzig.
Gartner Inc. ranked
Apiomat on the Magic
Qudrant in 2018.*
*Source: Gartner Report „Critical Capabilities for Content Services Platforms, published 25 October 2018“ 13EASY21 | Growth in Cloud
Accelerate
+
Growth in
Cloud 45 large enterprises and
6.350 EASY SMB Cloud 6.350 SMB customers
customers
3-4% of revenue in Cloud 8% of revenue in Cloud in
in 2019 2019
14Apinauten| Actuals and Expectations
in thsd € Revenue in tsd € EBITDA
3000 1000
2500
2000 1.720 500
1500
1000 624 0
743 -159
500 1.090 -419
845
554
0 -500
2016 2017 2018 2016 2017 2018
Subscriptions Services Potential EBITDA
Employees
60
Key Facts 2018:
50
40
90% Growth in Revenues
30
20 44 49 29% Growth in Recurring Revenues
10
31 45% Growth in Customers
Stand:
0 Oktober 2018
2016 2017 2018
Employees
© Copyright by EASY SOFTWARE AG 15Apinauten| Awards, References & Partner
Awards: References:
Partner: Customers:
3 Top Ten Automotive OEM
2 Top Ten Banks Germany
3 Top Ten Utilities Germany
2 Top Ten Retailer Germany
1 Top Ten Chemical Industry
16Acquisition | Deal Structure
2018 2020
1. Cash deal for 72,3% 3. Complete transaction
shares of Apinauten to 100% ownership
72,3 %
GmbH of Apinauten GmbH
in either cash or
360.000 shares of
EASY Software AG
2. Merger of EASY
ENTERPRISE SERVICES
GmbH (EES) with
Apinauten GmbH to 100%
own 82,3% of the
merged entity
17EASY | Cloud Revenue Projections
The Strategic Acquisition accelerates a transformation and growth in cloud
Revenue
2% 8% 12% Evaluation:
Cloud Multiples are at 12 times EBITDA
Recurring Revenues:
Increase from 50% in 2017 to 60%
Cloud:
Higher Margins due to less versions to
maintain
Time to Market:
2017 2018 2019 2020
Faster adoption of new solutions
License Consulting Support Cloud
Higher Automation
18EASY | Future Estimations – Business Case on acquisition of Apinauten GmbH
in million EUR 2019 2020 2021 2022 2023
Revenue EASY Cloud & Apinauten 4,3 6,9 10,2 14,4 19,2
EBITDA EASY Cloud & Apinauten -0,4 0,9 2,4 4,5 7,4
Evaluation on NPV: 13,7 Mio.€ (15% capital cost, Cloud Business EBITDA Multiplier 12)
19Acquisition | Purchase Price & Financing
Capital Requirements for the Acquisition of Apinauten GmbH:
12,5 Mio. EUR + Acquisition Cost + Operating Cash Flow
Purchase Price: 8,9 Mio. EUR in Q1 2019 in cash + equivalent of 360.000 shares in 2020 in cash or shares*
Funding of 11,5 - 15 Mio. EUR in 1st HY 2019 for the acquisition and restructuring EASY Liabilities
1. Capital Increase 2. Debt Financing
Issuing of app. 1.000.000
new shares by a capital
increase in 1. Half 2019 Raising 6,5 -10 Mio. EUR
by a prospectus-free capital Debt in 1st Half 2019
EASY Software AG
“
increase with subscription
rights 55 % Equity Ratio
20
* Minimum 1,75 Mio. EUR and Maximum 5,25 Mio. EUREASY21| Strengthen Cloud Platform Business
„ The acquisition of Apinauten is growing EASY Software AG
Cloud business fundamentally. The strategic and technology
acquisition grants us access to new customer segments.
Together with the excellent competence of Apinauten we are
positioned in the top ten providers of digitization with mobile
“
B2B Cloud Plattforms – Made in Germany.
Dieter Weißhaar, CEO der EASY Software AG.
21Acquisition | APINAUTEN GMBH Strategic View
Current State: Future:
Ø Top Ranking of ApiOmat by IT Analyst Gartner Ø Additional market segments with large
Ø Already a good collaboration between EASY enterprise customers by ApiOmat Plattform
and Apinauten Ø Hybrid solutions between existing EASY
Ø Technology is proven and in use Content Services Platform and ApiOmat
Ø In 2020 new License and Support contracts to Ø Highly skilled development team at
be renegotiated for a key EASY Cloud platform Apinauten - prooven track record
element ApiOmat: EASY is reducing external
dependencies Ø Easy to integrate into EASY Services Platform
with Low-Code and No-Code options
Ø High synergies in Marketing, Sales and
Administration Ø Faster time to market on EASY Cloud
Offerings
22Apinauten | Perfect fit
„ With Easy Software AG the Apinauten have found an excellent
partner with a 100% fit.
After the successful launch and a highly dynamic growth path,
the EASY Group is offering a great market position for
Apinauten to accelerate from. Especially the EASY integrations
in to various backend systems and the process Know-How are
generating a competitive advantage.
“
Marcel Etzel, Co-Founder and CEO of Apinauten GmbH.
23EASY | New Management Team at EASY
Dieter Weißhaar Andreas Schneider Jens-Peter Hess Marcel Rosenbaum Marcel Etzel Birgit Eijkhout Werner Höllrigl
ECM SAP Cloud ApiOmat
CEO Development Marketing Services
Joined 2018 Joined 2013 Joined 2015 Joined 2012 Joined 2018 Joined 2017 Joined 2018
Former Former Former Former Former Former Former
Executive Roles Executive Roles Executive Roles Executive Roles Roles at Executive Roles Executive Roles
at at at at ACD Ogilvy, SEB at d.velop at
IBM, transtec, Henrichsen AG Next Evolution Bank, T-Systems Head of Xerox,
Thyssenkrupp, (DMS AG (General and Marketing Microsoft,
Oracle, Solutions), Manager) match2blue Oracle
Deutsche Sercon GmbH
Telekom, B2X an IBM
Company
24EASY | New Management Team at EASY Sales
Gerald Rüdiger Richard Luckow Chr. Märzendorfer Andy Boulton Michael Rennell Sürreyya Ecevit Michael C. Reiserer
Germany Austria UK Americas Turkey Cloud
Partner Sales
Joined 2013 Joined 2000 Joined 2011 Joined 2018 Joined 2018 Joined 2012 Joined 2018
Former Former Former Former Former Former Former
Executive Roles Executive Roles Executive Roles Executive Roles Executive Roles Executive Roles Roles at
at Fujitsu, at EASY at Gemdat at at at SOFTAY Prometheus,
Siemens Software AG Austria Oracle and Siemens, ILM Weiss IT
Version1 and Loftsoft Workforce &
Exports,
DeskCenter and
Henrichsen AG
25EASY | Joined to become TOP 10
„ AonlyMerger of our Cloud Business with Apinauten GmbH is not
a strategic acquistion that strenghten our profile in the
market and gets us access to latest technology assets.
We are gaining an excellent skilled team which is highly
motivated to continue its journey and has prooven to deliver a
platform which is ranked TOP 10 globally.
We are as well cutting down our Time-to-Market and
leveraging the capabilities of both companies.
“
Dieter Weißhaar, CEO der EASY Software AG.
26EASY21 | Summary
Execution on EASY 21 Strategy
Market: Financials: Team: Evaluation:
• Content Services • Revenue Growth in • Strong Management • The growing cloud
Platform Market is 2018 and 2019 Team from Industry revenues come with
growing and shifting • Improved cost Leaders is executing higher evaluation by
into Cloud. structure in 2018 with on the EASY21 the market due to
• EASY Software one off effects strategy higher EBITDA
acquires a TOP • Forecast on EBITDA • High Skilled Multiples
technology platform Margin of app. 8% for Development Teams
to accelerate the 2019
cloud transformation, • The acquisition is
digitization of based on a solid
business processes financing structure of
and mobilization of 55% Equity Ratio
solutions
© Copyright by EASY SOFTWARE AG 27EASY SOFTWARE AG
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