Sage Group Plc · LSE:SGE
Sage — Corporate Update (September 2023)
57 slides from Sage's corporate update, Sep 25, 2023
Slide 1: Innovation and Product
Innovation and Product Webinar for Investors and Analysts 25 September 2023
Slide 2: Important notice
Important notice The following presentation is being made only to, and is only directed at, persons to whom such predicting customer behaviour; customers may not respond as we expected to our sales and presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant m
Slide 3: Introduction: Steve Hare, Chief Executive Officer
Steve Hare Chief Executive Officer Introduction Innovating through the Sage Network Growing our cloud solutions Driving AI innovation for SMBs Q&A © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 3
Slide 4: Meet the team
Meet the team Walid Abu-Hadba Dan Miller Aaron Harris Chief Product Officer EVP Product Chief Technology Officer Walid is responsible for leading Sage’s global Dan leads the Sage Intacct business and is a As Sage’s Global CTO, Aaron is responsible for product strategy and development organisation. p
Slide 5: Strategic framework for growth
Strategic framework for growth Purpose To knock down barriers so everyone can thrive Ambition To be the trusted network for small and mid-sized businesses Strategic priorities Scale Expand medium Build the small Scale the network Learn and disrupt Sage Intacct beyond financials business engine Stake
Slide 6: Five strategic priorities driving growth
Five strategic priorities driving growth Scale Sage Intacct Expand medium Build the small Scale the network Learn and disrupt beyond financials business engine Accelerate the expansion of Increase participation in the Build innovative solutions Sage Intacct in existing and Broaden the value proposit
Slide 7: The trusted network for small and mid-sized businesses
The trusted network for small and mid-sized businesses – an integrated experience of digital and human connections © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 7
Slide 8: Walid Abu-Hadba, Chief Product Officer
Walid Abu-Hadba Chief Product Officer Introduction Innovating through Sage Network Growing our cloud solutions Driving AI innovation for SMBs Q&A © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 8
Slide 9: Driving the success of SMBs through technology
Driving the success of SMBs through technology Power digital transformation Elevate human work Enable environmentally and socially responsible growth Use technology to create trust © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 9
Slide 10: Sage Network is our platform
Sage Network is our platform Creating connections across business ecosystems Sage Network is a set of integrated products Customer benefit Cost-effective and services, enabling Digitises and automates Enables AI and traditional our customers to workflows both within and API services to be scaled bet
Slide 11: Scale of connected data flows powers AI development
Scale of connected data flows powers AI development Network flywheel effect More Sage’s existing customers customers and products provide the Better Sage scale needed to create a customer Network More network activity experiences powerful platform for innovation More data for AI/ML development © 202
Slide 12: Sage Network is driving value today
Sage Network is driving value today Customers Vendors Banks Governments Employees Payment reminders Invoice processing Account Tax determination Payslips reconciliation Payment processing Purchase order Compliance Compliance matching Transaction reporting E-invoicing classification Employment E-Invo
Slide 13: Sage Network Inbox
Sage Network Inbox Network innovation to drive engagement across Sage Business Cloud All customer and vendor workflows in one app • AR and AP workspaces • Transactional email templates • AI-driven suggested responses • Collections management • AP automation integration • Approvals management • Recei
Slide 14: Sage Network Inbox demo
Sage Network Inbox demo © 2023 The Sage Group plc, or its licensors. All rights reserved.
Slide 15: Dan Miller, EVP Product
Dan Miller EVP Product Introduction Innovating through Sage Network Growing our cloud solutions Driving AI innovation for SMBs Q&A © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 15
Slide 16: Solutions that help organisations thrive
Solutions that help organisations thrive More sophisticated business needs Sage X3 1 Size of customer Differentiated global Sage Intacct anchor solutions in and Sage 200 financial management Sage Active and Sage50 3 Sage Accounting Vertical focus for and ACaaS* mid-sized businesses HR and payroll 2
Slide 17: Offerings focused on customer needs
Offerings focused on customer needs Simplifying go-to-market, driving customer value Customer offerings Customer value • Integrated experiences designed around Sage for Midsize Business user workflow • Solving a broader range of customer Sage for Small Business pain points • Leveraging the breadth o
Slide 18: Sage for Mid-sized Businesses
Power to support complex Sage for Mid-sized Businesses needs of the Office of the CFO & business operations Plan and budget with ease Run vertical-specific ✓ Planning, operations, financials, HR and payroll, and operations industry leading analytics working together Automate financial ✓ Embedded AI
Slide 19: Easy-to-use solutions tailored to small businesses
Easy-to-use solutions Sage for Small Business tailored to small businesses Send customized invoices, track & get paid Manage purchases and ✓ Enable businesses to spend more time on their expenses passion, less on admin Pay your employees and manage your workforce ✓ Automated workflow designed around
Slide 20: Automating early-stage businesses
Automating early- stage businesses ACaaS extends Sage’s market reach through strategic partners Embedded accounting for banks and small business platforms bringing their customers bookkeeping and accounting wherever their customers manage their business APIs Basic Simple bookkeeping invoicing Sage T
Slide 21: Helping accountants unlock more valuable client relationships
Helping accountants unlock Sage for Accountants more valuable client relationships Win and onboard clients ✓ Unifies and digitizes the tools accountants and Manage clients in one place bookkeepers use across their practice Get bookkeeping, tax ✓ From proposal to advisory services and compliance done
Slide 22: Accelerating internationally with cloud finance solutions
Accelerating internationally with cloud finance solutions Sage Intacct Sage Active Built for midsize New cloud native organizations across solution designed the globe, dedicated for small EU GTM expanding in businesses the EU and Africa Built on the Sage Network © 2023 The Sage Group plc, or its lic
Slide 23: Sage Active
Sage Active Advanced cloud accounting designed for finance professionals in growing small businesses ✓ Configurable, customizable and extensible through partners ✓ Scalable to meet the changing needs of growing small businesses ✓ Multi-country - multi-legislation, multi-language ✓ Currently availabl
Slide 24: Sage Intacct
Sage Intacct Built for local, serving global Serving local businesses Powered by global with local needs capabilities ✓ Terminology & language ✓ User level multi-lingual support ✓ Local tax and accounting embedded workflow ✓ Multi-book accounting ✓ Country-specific chart of ✓ Multi-dimensional ledge
Slide 25: Expanding our vertical reach
Expanding our vertical reach Targeting verticals and micro-verticals with purpose-designed solutions Service-centric industries Product-centric industries SaaS & Nonprofits Professional Healthcare Financial Hospitality Construction Retail Distribution Manufacturing Software Services Services & Real
Slide 26: Driving value for service-centric organisations
Driving value for service-centric organisations Recent progress Advanced ownership consolidations • Extending automation capabilities including advanced ownership consolidations and AP automation • Growing connected suite experiences for K-12 schools, MK Properties diocese, and healthcare 100% 80% •
Slide 27: Extending Sage's reach in construction and real estate
Extending Sage’s reach in construction and real estate Project & financial Recent progress Preconstruction insight • Enhanced construction-specific financial capabilities • Accelerating trajectory with launch of Sage Construction Payroll, Sage Field Ops and Sage Intacct Real Estate • Leveraging Sage
Slide 28: Simplifying operations for distributors and manufacturers
Simplifying operations for distributors and manufacturers Recent progress • Launched Sage Distribution and Manufacturing Operations (SDMO) into 7 countries • Integrations into Sage financial solutions including Sage Intacct and Sage 200 solutions • Leveraging Sage's existing strengths in manufacturi
Slide 29: Meeting the evolving needs of our customers
Meeting the evolving needs of our customers Flexibility within products to adapt to changing needs Example: Small businesses adding new capabilities • Digital self-serve capability for users to upgrade and add features and apps in product • Membership plans spanning self-employed and start-ups throu
Slide 30: Our customers are in control and evolve at their own pace
Our customers are in control and evolve at their own pace Sage delivers innovative services and solutions… … and customers decide when and how to adopt them Examples: • Loyalty program provides path for Construction & Real Estate customers to Sage Intacct • Sage Intacct Planning available to non-Int
Slide 31: Simplifying the life of finance professionals
Simplifying the life of finance professionals Increasing customer value and simplifying go-to-market Accelerating internationally with local expertise Expanding vertical reach with purpose-built solutions © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 31
Slide 32: Aaron Harris, Chief Technology Officer
Aaron Harris Chief Technology Officer Introduction Innovating through the Sage Network Growing our cloud solutions Driving AI innovation for SMBs Q&A © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 32
Slide 33: Innovation north star: Sage AI
Innovation north star Move to Sage Continuous AI Strategic Periodic, limited Value visibility © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 33
Slide 34: Continuous assurance
Continuous Trust assurance Continuous Eliminate the close Accounting Know the unknowns Insights © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 34
Slide 35: Sage Network is our AI development platform
Sage Network is our AI development platform AI services Customer experience • Data entry • AI integration • Classification • UI design Sage AI • Outlier detection Sage • Pricing / packaging • Forecasting Product • Generative AI services Teams Sage Network • Network directory • Data pipelines • Devel
Slide 36: Accounts payable automation
Accounts payable automation In your opinion, how could your accounting software be enhanced to better support accounts payable? “Intelligent upload and processing of invoices was the number one requested enhancement to support accounts payable according to 38% of all businesses surveyed”* *IDC Accou
Slide 37: Intelligent invoice upload and processing
Intelligent invoice upload and processing ✓ AI data entry, classification, matching ✓ Email, file upload, mobile app or API extraction service ✓ Quick and easy setup ✓ Global by design © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 37
Slide 38: Invoice processing from Sage Network
Invoice processing from Sage Network Sage Intacct Medium businesses ✓ US, Canada, UK, South Africa, France ✓ One click setup “Cutting our AP processing time in half.” Michelle Pyle Johnny’s Selected Seeds © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 38
Slide 39: Sage 50 FR, Sage Accounting, Sage Individual, Sage AutoEntry
Sage 50 FR Sage Accounting Small business – France Small business – UK, Canada (English and French) ✓ First fully embedded ✓ First fully embedded experience for French experience for UK SMBs small businesses ✓ Localized language, ✓ VAT support currency, tax ✓ Upgrade from “Start” ✓ Ready for e-Invoi
Slide 40: Automated bank reconciliation
Automated bank reconciliation Direct bank connections via Sage Network ✓ 34 products in 11 countries, including Sage Intacct, Sage Active, Sage Accounting and Sage 50 ✓ Vendor and customer payment matching ✓ Transaction classification ✓ Statement reconciliation “Inefficiency is huge in our industry.
Slide 41: Better AI from Sage Network
Better AI from Sage Network ✓ All customers benefit from global reach: multi- language, multi-currency, local tax schemes and regulations ✓ Machine Learning (ML) models learn from 10M and counting invoices and are retrained daily ✓ AI built templates for common network vendors leading to 96.6% accur
Slide 42: AI in every product
AI in every product © 2023 The Sage Group plc, or its licensors. All rights reserved.
Slide 43: AI innovation leadership
AI innovation leadership World class AI team Focused research Scale and experience • 18 PHDs • Accounting automation, • AI in products since 2018 assurance, and insights • 17 patents filed in last two • Today 7,000+ ML models years. 6 in Gen AI • Narrow, fit for purpose models in production with fou
Slide 44: World-class ML infrastructure
World-class ML infrastructure Customer benefits: Supports both global models and customer- Global models get more accurate as specific models the network grows Continuous training and Example: Invoice processing accuracy automated deployment 96.6% for common vendors Customer models continuously adap
Slide 45: Pairing automation with trust
Pairing automation with trust © 2023 The Sage Group plc, or its licensors. All rights reserved.
Slide 46: Unusual account, amount and department combination alerts
This Account, Amount, and Department combination is unusual This Account with this Department combination is unusual This Amount is unusual
Slide 47: Outlier detection for GL
Outlier detection for GL The first real-time AI-driven outlier detection tool for a general ledger Catching Reviewing 1,860 300m an average current 15m 2k journal customers transactions entries transactions per week per week © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 47
Slide 48: Customer testimonial: VRC Investigations
“Now the entire company trusts the finance organization and the numbers that are in Sage Intacct.” Erin Horak VP of Finance, VRC Investigations © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 48
Slide 49: Sage Intelligent Time
Sage Intelligent Time AI automation creates confidence ✓ AI captures and categorizes time for billable employees ✓ 90% model prediction accuracy ✓ Up to 17% more billable hours “With Sage Intelligent Time, we are much more confident that we have the most accurate understanding of our project status
Slide 50: Sage Earth
Sage Earth An automated carbon accounting solution for SMBs “By partnering with Sage to leverage the power of Carbon emissions prediction model their emissions estimation technology through the NatWest Carbon Planner, we are enabling businesses across the UK to embrace sustainable practices with con
Slide 51: Focus on trust
Focus on trust “We will never use AI in a way that erodes your trust in Sage or our products.” • Dedicated quality, safety, trust team • Quality trumps capability • Five patents filed for AI trust • Transparent data and AI principles © 2023 The Sage Group plc, or its licensors. All rights reserved.
Slide 52: Elevate human work
Elevate human work Continuous Trust assurance Continuous Eliminate the close Accounting Know the unknowns Insights © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 52
Slide 53: Sage Accounting – small business
Sage Accounting – small business Bring insights and understanding to small business owners © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 53
Slide 54: Sage Assistant demo
Sage Assistant demo © 2023 The Sage Group plc, or its licensors. All rights reserved.
Slide 55: The trusted network for small and mid-sized businesses
The trusted network for small and mid-sized businesses – an integrated experience of digital and human connections © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 55
Slide 56: Q&A
Q&A © 2023 The Sage Group plc, or its licensors. All rights reserved. Page 56
Slide 57: Thank you.
Thank you. © 2023 The Sage Group plc, or its licensors. All rights reserved.