Sage Review

1
Sage Review Strategic Direction

• David Pinches
• Head of Product Management
• ISTUG Conference
• 9th October 2006

2
Agenda

• The Last 13 Months
• Sage Business Management Strategy
• Future Trends Technology Options
• The Next 12 Months
• QA

3
Sage Group plc Update
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Financial HighlightsFor Year Ended 30 September
2005

• Turnover 776.6m ? 14
• Pre-Tax Profit 211.1m ? 13
• EPS 11.18p ? 13
• Customer Base 4.7m ? 7
• Employees 10,000 ? 25

5
Revenue Mix
Small Business Mid-Market
151m
139m
290m 37 487m 63
Software
184m
303m
Services
335m 442m 43 57
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Financial HighlightsFor 6 Months Ended 31 March
2006

• Turnover 455.9m ? 18
• Pre-Tax Profit 113.7m ? 19
• Customer Base 5.0m
• Employees 10,500
• RD Investment 31 of (28) Licence Revs

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Key Acquisitions

• 2005
• Symfonia (Poland) Small Business
• Logic Control (Spain) Mid-Market
• Adonix (France) Mid-Market
• 2006
• Verus (N.America) Payment processing
• Baurer (Germany) Mid Market BM Suite
  Manufacturing

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The Last 13 Months

• Line 500 Version 6
• Integration via APIs
• User Interface Universal Client
• Customer led improvements Wish list and MBEs

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The Last 13 Months

• Line 500 Version 6
• Integration via APIs
• User Interface Universal Client
• Customer led improvements Wish list and MBEs
• Sage 1000 V1 and V1.1

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The Last 13 Months

• Line 500 Version 6
• Integration via APIs
• User Interface Universal Client
• Customer led improvements Wish list and MBEs
• Sage 1000 V1 and V1.1
• Line 200 Customers move to Line 500
• Sage BI for Line 500 upgraded
• Sage CRM Products and Integration upgraded
• Business Management Strategy
• Delivering Choice
• A handful of customers have moved on
• 75 new customers
• Line 500 and Sage 1000

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Sage Strategic Direction
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The Sage Vision

• To be the business management software company
  that everyone recommends

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Business Management Solutions

• Business Scenario

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Business Management Solutions

• Business Scenario

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Sage StrategyTo Manage All Key Business Processes
Business Management
Finance Accounting Statutory Reporting Business
Reporting Analysis Planning /
Forecasting Payroll
Customers
Suppliers
Marketing Sales Management Customer Service Order
Entry Billing Credit Management
Supply Chain Procurement Supplier Management
Sage Business Solutions
Manufacturing Distribution Retail Construction
Business Operations
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Strategy Provides Choice

• Integrated Applications

Single Business System
19
Business Management SolutionsIntegrated
Applications
Accounting ERP Systems For Finance Business
Operations
Manufacturing Construction Retail
Data Exchange Business Process Interaction
Customer Relationship Management Systems for
Sales Marketing and Service
Business Intelligence for Business Operational
and Analytical Reporting
20
Business Management SolutionsSage Integrated
Applications
Vertical Solutions Retail, Manufacturing
Construction Applications
Accounts ERP Sage Line 500 Sage MMS
AIS APIs Data Exchange Business Process
Interaction
Customer Relationship Management Sage
SalesLogix Sage CRM MME
BI Reporting Sage BI and Sage Additions
21
Sage Integrated ApplicationsContinued Investment
Roadmap
2007
2006
MMS
3.5
4.0
4.5
L 500
6.0
7.0
ACT!
8.0
9.0
SLX
7.0
8.0
5.8
6.0
CRM MME
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Sage 1000Single Business System
Accounting, Finance Payroll
Business Operations, Distribution, Manufacturing
Business Workflow and Alerting
Single User Interface Data Structures Licence and
User Management Role Based Configuration
Environment
Business Information Reporting Dashboards
Web Access Self Serve
Customer Management Service Support
Sales Management
Marketing Management
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Sage 1000 Adds to the Roadmap
2007
2006
MMS
3.5
4.0
4.5
L 500
6.0
7.0
ER1
ACT!
8.0
9.0
SLX
7.0
8.0
5.8
6.0
CRM MME
1.0
3.0
Sage 1000
2.0
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Solution Development StrategyPriority
enhancements feed both strategies

• Integrated Applications

Single Business System
Application Integration Operational Reporting and
Business Intelligence Use-ability Web / Mobile
Access Customisation Configuration Customer
Driven Enhancements Manufacturing, Construction
and Retail
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Strategy Provides Choice

• Integrated Applications

Single Business System
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Future Trends Technology Options

• Integration
• Data / Information
• Business Processes
• Mobile Access
• Inter Company Business Processes
• Reporting and Analysis
• Cost of Ownership
• ?

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Line 500 Sage 1000Options for Enhanced
Architecture

• Evolve to a Service Orientated Architecture Model
• Data integration
• Business Process integration
• Extend support for Portals
• User Interface consistency
• Enhance role based access to information
• Open Standards
• Enable choice of platforms technologies
• Web based

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Next 12 Months
2007
2006
Istug
L 500
6.0
7.0
1.0
3.0
Sage 1000
2.0
Sage BI
Sage Asset Manager
500 1000
MMS
SLX
7.0
8.0
5.8
6.0
CRM MME
Retail EPOS
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More Information

• Sage CRM
• 230 Today
• Sage Product Workshop
• Line 500 V6 V7 Roadmap
• Sage 1000
• Sage Asset Manager
• 1130 tomorrow
• Sage BI Workshop
• 1030 tomorrow
• Sage Clinic, One to ones and workshops
• See Agenda

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Sage Review Strategic Direction

• Questions
• ?

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Sage Business Management Solutions

• Integrated Business Management Software