Sage Group Plc · LSE:SGE
Sage — Investor Day (January 2018)
121 slides from Sage's investor day presentation, January 2018
Slide 1: Capital Markets Day
sage Capital Markets Day
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following presentation is being made only to, and is only directed at, persons to whom such operate in the future. Such risks, uncertainties and other factors include, among others: Inherent presentation may lawfully be communicated (“relevant persons”). Any person who is n
Slide 3: 110,000 customers within 30 miles
110,000 customers within 30 miles #SageCMD2018
Slide 4: Customer logos
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Slide 5: Stephen Kelly, CEO
Stephen Kelly CEO @SKellyCEO #SageCMD2018
Slide 6: Agenda
Agenda Strategic overview & business model Go to market Technology #SageCMD2018
Slide 7: Vision for acknowledged market leadership
Vision for acknowledged market leadership #SageCMD2018
Slide 8: Market leadership scorecard
Market leadership scorecard Market opportunity Technology Go to market #SageCMD2018
Slide 9: Market characteristics
Market characteristics Market One market Catalyst for composition leader cloud adoption #SageCMD2018
Slide 10: Our unique position in the market
Our unique position in the market Trusted brand Global reach Market breadth #SageCMD2018
Slide 11: Market leadership scorecard
Market leadership scorecard Market position Technology Go to market Well placed to become market leader #SageCMD2018
Slide 12: Sage Business Cloud
Sage Business Cloud #SageCMD2018
Slide 13: Market leadership scorecard
Market leadership scorecard Market position Technology Go to market Well placed to become market leader We have the technology we need to win #SageCMD2018
Slide 14: Customer obsession
Customer obsession #SageCMD2018
Slide 15: People and culture
People and culture #SageCMD2018
Slide 16: Market leadership scorecard
Market leadership scorecard Market position Technology Go to market Well placed to become market leader We have the technology we need to win Execution is critical #SageCMD2018
Slide 17: Vision for acknowledged market leadership
Vision for acknowledged market leadership #SageCMD2018
Slide 18: Keith Robinson, Strategy
Keith Robinson Strategy @Keithprobinson #SageCMD2018
Slide 19: Sage Business Cloud - Platform for acceleration
Sage Business Cloud - Platform for acceleration #SageCMD2018
Slide 20: Total addressable market
Total addressable market 7% $30bn $28bn 13% $14bn $12bn Cloud 2% On-premise $16bn $16bn 2018 2019 Source: IDC & Gartner , 2017 #SageCMD2018
Slide 21: Cloud adoption rates vary by geography
Cloud adoption rates vary by geography % new spend on Cloud FY18 % new spend on-premise FY18 12% 26% 49% 34% 51% 66% 74% 88% US UK France Spain Source: IDC, 2017 #SageCMD2018
Slide 22: Competitive dynamics
Competitive dynamics Shallow Highly Legacy Single Non- domain fragmented deployment country compliance expertise #SageCMD2018
Slide 23: Leading share in the majority of our top markets
Leading share in the majority of our top markets Sage Competitors 20% 22% 10% 37% 44% Northern Europe France Canada Southern Europe Africa $2,030m Market $1,450m Market $990m Market $420m Market $260m Market Source: IDC, 2017 #SageCMD2018
Slide 24: US market represents significant opportunity
US market represents significant opportunity US 16% Central Europe Northern Europe 8% France 5% 55% Australia & NZ 4% Brazil 4% Canada 4% 4% Other Source: IDC, 2017 #SageCMD2018
Slide 25: Summary
Summary US represents Cloud $28bn TAM huge acceleration opportunity #SageCMD2018
Slide 26: Rob Reid, Sage Intacct
Rob Reid Sage Intacct @SageIntacctRob #SageCMD2018
Slide 27: Focus on the upper-scale up / lower enterprise market
Focus on the upper-scale up / lower enterprise market Enterprise Solution Accounting Financials Sage Intacct Management Entrepreneur Start-up of fast- CFO/ Sell to CFO entrepreneur growing Committee business #SageCMD2018
Slide 28: Powerful 'Born in the Cloud' solution
Powerful ‘Born in the Cloud’ solution Industry Specific Solutions All-In-One Cloud Platform Financials Open APIs #SageCMD2018
Slide 29: Ask the experts
Ask the experts Only Visionary Platinum #1 Preferred Cloud Financial Financials Customer Provider Management ISV Partner Satisfaction #SageCMD2018
Slide 30: Gartner rates Sage Intacct at the top of the list
Gartner rates Sage Intacct at the top of the list and visionary for the mid-market… Score Sage Intacct 4.22 Other competitors 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3 Critical Capabilities for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises Gartner, Aug 2017 #SageCM
Slide 31: Industry customer and employee satisfaction leader
Industry customer and employee satisfaction leader “ We had a great implementation team „ and Sage Intacct offers great customer support. Chris Krueger CFO, Grand Rounds #SageCMD2018
Slide 32: Accelerating with Sage
Accelerating with Sage #SageCMD2018
Slide 33: Steve Hare, CFO
Steve Hare CFO @StevehareCFO #SageCMD2018
Slide 34: Ambition - Acknowledged market leader
Ambition - Acknowledged market leader Sustainable Superior high quality Strong free Progressive margin revenue cash flow dividend structure growth #SageCMD2018
Slide 35: Revenue shape
Revenue shape 10% + Software Software subscription subscription Recurring revenue 78% M&S M&S Services and SSRS and Processing Processing Start of FY18 Mid-term #SageCMD2018
Slide 36: Existing customer growth
Existing customer growth Off plan 500k – 1m On plan 900k On-premise subscription 700k Cloud subscription 600k #SageCMD2018
Slide 37: Cloud Products
Cloud Products Accounting Financials Sage Intacct Enterprise People Payroll Payments Management & Banking Revenue FY17 ARR FY16 ARR Growth Cloud enabled £173m £80m +117% Native cloud £127m £84m +51% Sage Business Cloud £300m £164m +83% #SageCMD2018
Slide 38: Solution ACV by customer segment
Enterprise Solution Accounting Financials Sage Intacct People Management Start-up Entrepreneur of CIO/ Sell to CFO CPO entrepreneur fast-growing business Committee ACV £100-£300 £2,000 - £5,000 £15,000-£35,000 £30,000+ £30,000+ #SageCMD2018
Slide 39: Growth summary
Growth summary M&A NCA M&A NCA C4L C4L FY17 Long-term #SageCMD2018
Slide 40: Margin progression
Margin progression Go to market 49% G&A 14% 500 BPS R&D 10% Margin 27% FY17 #SageCMD2018
Slide 41: Sage KPIs
Sage KPIs Contract renewal by value, % Sage Business Cloud ARR, £ Cost savings and reinvestment, bps Return on capital employed, % #SageCMD2018
Slide 42: Ambition - Acknowledged market leader
Ambition - Acknowledged market leader Sustainable Superior high quality Strong free Progressive margin revenue cash flow dividend structure growth #SageCMD2018
Slide 43: Blair Crump, President
Blair Crump President @blair_crump #SageCMD2018
Slide 44: We have what we need to win the market
We have what we need to win the market Technology International Local Trust & footprint presence compliance #SageCMD2018
Slide 45: Back to basics
Back to basics Sales Performance and Metrics Consolidating CRMs Single Compensation Program Values for Growth and Customer Success Onboarding and Learning Development #SageCMD2018
Slide 46: Building blocks for success
Building blocks for success The right High Align Best-in-class strategies organisation performance leadership & investments design sales culture #SageCMD2018
Slide 47: Organisation design
Organisation design New customer acquisition Customer Accountants for life Partners Enterprise Services #SageCMD2018
Slide 48: Leadership
Leadership New in past 12 months New in past 3 years Alan Laing UK & Ireland Rainer Downar Central Europe Nancy Harris Laurent Dechaux North America Luis Pardo France Iberia Pieter Bensch Africa & Middle East Kerry Agiasotis Asia & Australia Jorge Carneiro Latin America #SageCMD2018
Slide 49: Creating a high performance sales culture
Creating a high performance sales culture Forecasting Selling on Selling Customer and pipeline subscription cadence obsession management #SageCMD2018
Slide 50: Marketing at Sage
Marketing at Sage #SageCMD2018
Slide 51: Path to double digit growth
Path to double digit growth #SageCMD2018
Slide 52: We have what it takes to win!
We have what it takes to win! Cloud Products Accounting Financials Financials Sage Intacct Enterprise Enterprise People Payroll Payments Payments Accounting Sage Intacct Management People Payroll &&Banking Management Banking #SageCMD2018
Slide 53: Sue Goble, Services
Sue Goble Services @suegoble #SageCMD2018
Slide 54: Serving our customers
Serving our customers Size of customer Digital Phone Partner Face to face Supported by marketplace and communities #SageCMD2018
Slide 55: Services
Services Customer Customer Learning Professional support success services services #SageCMD2018
Slide 56: Customer support
Customer support By End 2019 Digital transformation 58% Transformation Start Telephone 12M 95% Chat Annual Interactions 9M Web & Email Annual 3% Interactions Knowledge Base 11% Community 10% 1% 2% Bot / AI 13% 5% 1% 1% #SageCMD2018
Slide 57: Customer support
Customer support #SageCMD2018
Slide 58: 5 star customer reviews
5 star customer reviews “ Arun at the Helpdesk saved my company „ £3,000 by spotting an allowance we were entitled to. Excellent support! “ Would highly recommend „ “ „ Query resolved in a matter of minutes “ „ Great Customer Service „ “ Over and above what I expected. „ “ Brilliant… Sage are the el
Slide 59: Customer support
Customer support #SageCMD2018
Slide 60: Customer support
Customer support By End 2019 Digital transformation 58% Transformation Start Telephone 12M 95% Chat Annual Interactions 9M Web & Email Annual 3% Interactions Knowledge Base 11% Community 10% 1% 2% Bot / AI 13% 5% 1% 1% #SageCMD2018
Slide 61: Customer success
Customer success #SageCMD2018
Slide 62: Net Promoter Score
+25 Net Promoter Score +3 #SageCMD2018
Slide 63: Learning services
Learning services +7% 260,000 21,000 Annual Revenue Registrations Certifications Growth #SageCMD2018
Slide 64: Professional services
Professional services 54% 77% 7.0% 8.3% Focus on higher Scaling with Utilisation rate Service % of value expert partners revenue services #SageCMD2018
Slide 65: Jennifer Warawa, Partners, Accountants & Alliances
Jennifer Warawa Partners, Accountants & Alliances @jenniferwarawa #SageCMD2018
Slide 66: Partner types
Partner types Accountants Value Added Strategic ISVs Resellers Alliances (VARs) #SageCMD2018
Slide 67: A partner success story
AApartner partnersuccess successstory story #SageCMD2018
Slide 68: Building relationships
Building relationships #SageCMD2018
Slide 69: From our Partners
From our Partners “There is no doubt that our close relationship with Sage is helping Datel achieve significant growth and we look forward to working even „ closer with them into the future. Alan Simpson Executive Chairman #SageCMD2018
Slide 70: Change facing Accountants
Change facing Accountants Automation Customer demands Virtual CFO #SageCMD2018
Slide 71: Cloud Products
Cloud Products Financials Enterprise Payments Accounting Sage Intacct People Payroll Management & Banking Marketplace Applications Sage Developer Platform APIs Microservices Artificial Pegg Bot Collective Machine Platform Services Intelligence Framework Intelligence Learning #SageCMD2018
Slide 72: Sage Accountant Cloud
Sage Accountant Cloud = + Client Practice management management Compliance #SageCMD2018
Slide 73: From our Partners
From our Partners “ Your vision for Sage Accountant Cloud is completely different to what anyone else is doing – it’s exactly what Accountants need. If you „ deliver that you’ll win the market. Darren Jasper PKF Francis Clark Top 10 firm in the UKI #SageCMD2018
Slide 74: An evolving market for VARs
An evolving market for VARs Rapid cloud Industry Licence to movement proficiency subscription #SageCMD2018
Slide 75: Value Added Resellers (VARs)
Value Added Resellers (VARs) Serve existing Win new customers customers #SageCMD2018
Slide 76: The results – North America case study
The results – North America case study FY16 FY17 +49 NPS Double +6% Improvement digit over 3 years decline #SageCMD2018
Slide 77: From our Partners
From our Partners “ The vision and leadership of the Sage management team, with their continued commitment to new products and technologies, enables us to satisfy the „ changing requirements of our large and growing customer base. Mark Meller Chief Executive Officer #SageCMD2018
Slide 78: Strategic Alliances
Strategic Alliances #SageCMD2018
Slide 79: Cloud Products
Cloud Products Financials Enterprise Payments Accounting Sage Intacct People Payroll Management & Banking Marketplace Applications Sage Developer Platform APIs Microservices Artificial Pegg Bot Collective Machine Platform Services Intelligence Framework Intelligence Learning #SageCMD2018
Slide 80: Summary
Summary #SageCMD2018 sage Capital Markets Day
Slide 81: Q&A Session
Q&A Session #SageCMD2018 sage Capital Markets Day
Slide 82: Sanjay Almeida, Product Delivery
Sanjay Almeida Product Delivery @SanjayAlmeida #SageCMD2018
Slide 83: Technology strategy
Technology strategy Simple Smart Open #SageCMD2018
Slide 84: Nick Goode, Product
Nick Goode Product @nickgoode #SageCMD2018
Slide 85: Cloud Products
Cloud Products Financials Enterprise Payments Accounting Sage Intacct People Payroll Management & Banking Marketplace Applications Sage Developer Platform APIs Microservices Artificial Pegg Bot Collective Machine Platform Services Intelligence Framework Intelligence Learning #SageCMD2018
Slide 86: Accounting
Accounting Over 400,000 customers 100% compliant 15 countries #SageCMD2018
Slide 87: Financials
Financials 4thANNUAL CLOU aN &DEVOPS \. WORLD ™ AWARDS PARTNER INNOVATION AWARD Fy wwictys @weathtup a scale veltic INSURANCE eZ #SageCMD2018 sage Capital Markets Day
Slide 88: Sage Intacct
Sage Intacct Chosen by over 10,000 customers “ I’ve saved 80% of my time at „ quarter-end using Sage Intacct Russell Guthrie CFO, IFAC #SageCMD2018
Slide 89: Enterprise Management
Enterprise Management Compliance in 31 countries Manufacturing 61% and distribution Services 25% “ Stadium revenue has grown...but managing it all wasn’t easy until we found Sage. It used to take days to share ticketing information between two people in the same room. Sage helps us cut through the r
Slide 90: People
People Renewals 100%+ #SageCMD2018
Slide 91: Payroll
Payroll NPS +51 “ Sage makes paying my tax and my staff dead easy even knowing nothing. „ “ „ It is simple to use and the customer service is amazing. #SageCMD2018
Slide 92: Payments & Banking
Payments & Banking Sage Payments Credit Risk Get Paid Faster Funding Invoice Now Manage Bank Access Bank Account Account Information #SageCMD2018
Slide 93: Cloud Products
Cloud Products Financials Enterprise Payments Accounting Sage Intacct People Payroll Management & Banking Marketplace Applications Sage Developer Platform APIs Microservices Artificial Pegg Bot Collective Machine Platform Services Intelligence Framework Intelligence Learning #SageCMD2018
Slide 94: Meet Phil
Sage Business Cloud – Customer journey Meet Phil Age 28. Business Owner. Big ambitions. Big dreams. High-end food, Stunning views, 5 sites in 2 Unique, standout, Vintage/Country years with 100+ inspiring customer Style people experience #SageCMD2018
Slide 95: Automate, grow with me, personalise to my needs
Simple Migration 1. Automate 2. Grow with me 3. Personalise to my unique needs and stand out One Login Recommended by Accountant, inspired by One Bill Sage.com case study – quickly realised only Sage One UX Business Cloud can deliver all 3 of my needs APIs + Marketplace #SageCMD2018
Slide 96: Accounting
Big Data OCR Accounting Simple APIs + AI + Big Migration Marketplace Data Machine One Login Learning Machine One Bill OCR Learning One UX #SageCMD2018
Slide 97: Accounting
Open Banking Accounting Machine Learning Simple APIs + AI + Big Open Migration Marketplace Data Banking AI + Big Data One Login Machine One Bill OCR Learning One UX #SageCMD2018
Slide 98: Payroll
Payroll Accounting Payroll Simple APIs + AI + Big Open Support + Migration Marketplace Data Banking Community Compliance One Login Machine One Bill OCR Compliance Learning One UX #SageCMD2018
Slide 99: Payroll
Accounting Payroll Simple APIs + AI + Big Open Support + Voice Migration Marketplace Data Banking Community Bots One Login Machine One Bill OCR Compliance Bots Learning Voice One UX APIs + Marketplace #SageCMD2018
Slide 100: People
Accounting Payroll People Simple APIs + AI + Big Open Support + Voice Migration Marketplace Data Banking Community One Login Machine Forecasting One Bill OCR Compliance Bots Learning + Analytics One UX #SageCMD2018
Slide 101: Financials, Payroll, People
Financials Payroll People Simple APIs + AI + Big Open Support + Voice Migration Marketplace Data Banking Community One Login Machine Forecasting One Bill OCR Compliance Bots Learning + Analytics One UX #SageCMD2018
Slide 102: Connected Cloud
Connected Cloud Computer world Best in Cloud Founder of E2W, customer of Sage 50cloud #SageCMD2018
Slide 103: Sage Business Cloud differentiated
Sage Business Cloud differentiated Thriving One Stop Trusted Innovative ecosystem shop Visionary #SageCMD2018
Slide 104: Gartner on Sage Business Cloud
Gartner on Sage Business Cloud “ „ Now that Sage own Fairsail and Intacct, you have a complete offering. “ „ Sage are “masters of the universe at financials”. #SageCMD2018
Slide 105: Kriti Sharma, Artificial Intelligence
Kriti Sharma Artificial Intelligence @sharma_kriti #SageCMD2018
Slide 106: The 4th industrial revolution
The 4th industrial revolution Artificial Intelligence #SageCMD2018
Slide 107: The 4th revolution
The 4th revolution 100k 135 500k users countries conversations Pegg #SageCMD2018
Slide 108: Cloud Products
Cloud Products Financials Enterprise Payments Accounting Sage Intacct People Payroll Management & Banking Marketplace Applications Sage Developer Platform APIs Microservices Artificial Pegg Bot Collective Machine Platform Services Intelligence Framework Intelligence Learning #SageCMD2018
Slide 109: Emerging technologies
Emerging technologies Expansion Augmented of Bots Intelligence Data Voice Analytics #SageCMD2018
Slide 110: Seamus Smith, Payments & Banking
Seamus Smith Payments & Banking @Seamus008 #SageCMD2018
Slide 111: Sage customers move >£3TN through our software
Sage customers move >£3TN through our software Europe: £1.6TN North America: £1.0TN Brazil: £800M International: £30BN #SageCMD2018
Slide 112: Sage Business Cloud - Payments & Banking
Sage Business Cloud - Payments & Banking Leverage Cloud based API Embedded strategic technologies developments competencies partnerships #SageCMD2018
Slide 113: Strategic Partnerships
Strategic Partnerships #SageCMD2018
Slide 114: Accounting and Stripe integration
Accounting and Stripe integration #SageCMD2018
Slide 115: Sage 50cloud Go Cardless integration
Sage 50cloud Go Cardless integration #SageCMD2018
Slide 116: Bank feed integration
Bank feed integration #SageCMD2018
Slide 117: Regulatory developments
Regulatory developments #SageCMD2018
Slide 118: Powerful Payments & Banking solutions
Powerful Payments & Banking solutions Sage Payments Credit Risk Get Paid Faster Funding Invoice Now Manage Bank Access Bank Account Account Information #SageCMD2018
Slide 119: Stephen Kelly, CEO
Stephen Kelly CEO @SKellyCEO #SageCMD2018
Slide 120: Vision for acknowledged market leadership
Vision for acknowledged market leadership #SageCMD2018
Slide 121: Q&A Session
Q&A Session #SageCMD2018 sage Capital Markets Day