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Introduction to The Sage Group plc. April 20 1 0. Introduction to Sage. What Sage does.
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Introduction toThe Sage Group plc April 2010
What Sage does Sage is a leading supplier of business management software and services to over 6 million customers worldwide. From small start-ups to larger organisations, we make it easier for companies to manage their business processes Our vision is to be the most admired and respected business software and services provider in the world
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
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 1981Sage founded in Newcastle-upon-Tyne 1989Listed on the London Stock Exchange 1984Paul Walker, current CEO, joins Sage as 7th employee
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 1991Entered the US market 1992Entered the French market
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 1999Entered the Portuguese and Swiss markets 2000 Reached 2 million customers worldwide 1999Became part of FTSE 100 1997Entered the German market
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 2003Entered 7 new markets 2004Entered the Indian market 2005Entered the Polish market
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 2007Surpassed 5 million customers worldwide 2006Entered the Chinese market
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 History of Sage 2009Surpassed 6 million customers worldwide
We group ourselves into four regional businesses Data for FY 08 . *At constant exchange rates. †Earnings before interest, tax and amortisation of intangible fixed assets (EBITA) Half year result for H1 2009 available at www.investorrelations.sage.com
Financial performance fiscal years 2003 - 2009 Revenue* Millions of pounds EBITA *Statutory revenue
What we offer What dowe supply? How do wecompare? To what kindsof businesses?
What are business management solutions? Software and services that help SMEs manage their business processes and relationships. Customers Advisors People Yourbusiness Suppliers Finances Operations
How does our business split across these areas? Payment Processing £53m* CRM £69m* Although our business began as a provider of accounting software only, we have expanded our offerings and accounting solutions now represent 55% of our total turnover. HR &Payroll £145m* Industry-specific £315m* Accounting £713m* *Data for FY 08 .
We offer a range of local industry specific and specialised solutions
To what kind of businesses? Enterprise (2.3)% growth 6%of Sage’s customer base Upper mid-market 8.6% growth 0 EMPLOYEES 25 500 5,000 10%of Sage’s customer base Lower mid-market 7.7% growth 84%of Sage’s customer base Entry-Level 6.4% growth CAGR 2007-2012* Source: *Gartner, SMB ERP software Europe and North America, 2008 Gartner ERP software worldwide
How do we measure up to our competitors? Business management solutions providers In the small business market* Sage is regarded as a clear market leader Sage 21% SAP 27% Microsoft 12% Others 42% Microsoft 4% Oracle 9% Oracle 13% Others 49% Infor 6% Intuit 6% Sage 8% SAP 3% Source: *IDC, October 2006, Worldwide ERP applications 2005 vendor shares, based on ERP revenue small business; <500 employees Source, Gartner June 2009. Worldwide total ERP software revenue market share by vendor, 2008
What sets us apart? Customer experience Local focus Trusted brand
Sage’s decentralised model provides local focus with the support of global scale
Our global reach Combined with our developers and business partners Sage has strong global presence Distribution Direct presence
How do we reach our customers? Strong and diverse routes to market tailored to match customer needs: Retail Stores • Business Partners Direct Routes to market PartnershipsEg: Banking Internet Accountants
The customer experience By being local, by building long-term powerful relationships with customers we can deliver outstanding service which we believe is unmatched in our industry
Bringing the customer experience to life Our emphasis on support is reinforced by the resources we put behind it. Across the Sage business more than 40%of our people work in technical support, customer service or customer training roles