Annual Report Current of SAS

8/8/2019 Annual Report Current of SAS

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l o t 2009



www.sas.com | annual report | 2009

Our leadership is built on the combined strengths o ourso tware, our domain expertise and more than 34 yearso experience helping customers across organizations,industries and governments around the globe succeed.We listen to customers to understand their needs, andwe give our employees the reedom to explore new ideas

to address those needs.

While our company continues to grow, we remain true toour long-standing goal of helping customers transformhow their businesses work and sustain a culture of fact-based decision making. Our business analytics frameworkprovides customers with a f lexible and straightforward pathfor achieving their key objectives and gaining maximumreturn from their information assets. Today, SAS is theworld’s largest privately held software company, with morethan 11,000 employees and staffed offices in 55 countries.

Together, we provide software and services to more than45,000 sites in 119 countries. And the guiding principles thalaunched this company in 1976 are still the foundation of ougrowth and success:

Commitment to customers. Appreciation o and dedication to employees.

Adherence to the highest standards o quality andper ormance o our so tware.

Continual innovation that creates lasting value.

As the economy continues on its journey toward recoverywe pledge to maintain and enhance these principles, for theyhave proven their value in helping us achieve success sincethe company’s inception in 1976 and will continue to do so fomany years to come. For more than 34 years, SAS has givenour customers THE POWER TO KNOW®.

Leadership and innOVaTiOn

O c to c co t o – to to o o .



2009 | annual report | www.sas.com




Our optimism and determination in the face of an uncertaineconomy paid off last year, and we finished 2009 – our 34thconsecutive year of growth – with global revenues of US$2.31billion, up 2.2 percent over 2008 results. Our revenue fromsoftware sales alone jumped 3.3 percent at a time when thesoftware revenue of other major vendors has been declining.

Customers are increasingly turning to SAS® solutions to maxi-mize effective customer relations, more effectively manageoperations and engage in better risk management. Software revenue

was strong in several areas, including customer intelligence, creditrisk, supply chain and text analytics, attesting that companiesstriving to survive in a down economy, and succeed in times of recovery and growth, need such solutions to answer complexbusiness problems, spur innovation and enable success.

Growth rates of our industry-based software solutions werehighest in financial services, government, health care, insuranceand retail. Strong sales to financial services firms demonstratesthe confidence these companies have in our ability to helpthem solve intricate business issues and navigate changes incustomer needs, business models and regulatory oversight.

The public sector showed growing interest in using data asa key strategic asset for combating fraud, halting decliningtax revenues, managing service levels and achieving greatertransparency. And retailers turned to our software solutions toimprove margins and counter the effects of sluggish consumerspending by taking into account regional, local and even store-level buying preferences of their customers.

SAS is well-positioned to continue helping our customersucceed. Our strong commitment to research and development– we reinvested 23 percent of revenue back into R&D last year resulted in another year of prodigious innovation. We released 2new products or bundles last year, including SAS 9.2 platformPhase 2, which included classic SAS products as well as 87business intelligence and data integration solutions.

The capabilities of SAS software were again validated in 2009 bleading analyst firms. In June, IDC called SAS the “overwhelmi

leader” in advanced analytics,1 saying that enterprises chooseSAS Analytics more often than the other 16 analytics suppliercombined. Chartis Research again named SAS as the leader inits Operational Risk Management Systems 2009 report in June.2

SAS was also named as a leader in the firm’s July report,CreditRisk Management Systems 2009 ,3 and in November, SAS wasranked No. 1 in the prestigious RiskTech100 rankings, an annuainternational listing of the top risk technology vendors.4

Gartner positioned SAS in the Visionaries quadrant of theMagicQuadrant for Enterprise Marketing Management 5 and placedour DataFlux subsidiary in the Leaders quadrant of itsMagicQuadrant for Data Quality Tools 6 in June. In September, the firmplaced SAS in the Leaders quadrant of theMagic Quadrant for Operational Risk Management Software for Financial Services .7

And in December, Gartner placed SAS and DataFlux in th Visionaries quadrant of theMagic Quadrant for Data IntegrationTools.8

LeTTer FrOm The CeO

Jim Goodnight, CEO and founder of SAS.

1 IDC, Worldwide Busines s Intelligence Tools 2008 Vendor Shares, Doc # 218598, June 2009,www.sas.com/news/analysts/idc-ww-bi-tools-2008.pd

2 www.sas.com/news/analysts/chartis-risk-0609.pd3 www.sas.com/news/analysts/chartis-credit-risk-0709.pd4 www.sas.com/news/analysts/chartis-risk-1109.pd5 Gartner Research, “Magic Quadrant or Enterprise Marketing Management,” by Kimberly Collins and Adam Sarner, July 15, 2009.

See the ull report at www.gartner.com/technology/media-products/reprints/sas/vol6/article2/article2.html6 Gartner Research, “Magic Quadran t or Data Quality Tools,” by Ted Friedman and Andreas Bitterer, June 9, 2009.

See the ull report at www.gartner.com/technology/media-products/reprints/datafux/167657.html




In November, Forrester Research gave SAS top rank for costand profitability analysis and a top score in product strategyand vision.9 And in December, Forrester ranked SAS CustomerIntelligence No. 1 in optimization, analytics and reporting, andinstalled base.10 SAS also had a strong showing in applicationusability, real-time analytics, budget management andforecasting, architecture and campaign design.

Of the top 100 companies on the 2009 FORTUNE Global500®, 92 are current SAS customers. And in the US, 80

percent of new commercial accounts were small and midsizedbusinesses, showing that organizations with annual sales of less than $500 million also recognize the value of businessanalytics from SAS.

In all, nearly 1,400 new customers around the world choseSAS. Customers new to SAS in 2009 included: Anglopharma,Bombay Stock Exchange, the Clorox Company of Canada Ltd.,Hong Kong Efficiency Unit, Fiat Automóveis, Lego SystemsInc., Loyalty New Zealand, Niagara Health System, Dex OneCorp. (formerly R.H. Donnelley), Telefonica, TV 2 AS (Norway),WestJet, Wet Seal Inc., Wistron Corp. and Vattenfall.

Looking forward, we believe that 2010 will be another strongyear for SAS. While economic recovery is under way in manyparts of the world, it won’t be quick and it won’t be easy.Organizations will react by continuing to focus on improvingcustomer-centricity, enhancing top-line revenue growth andoptimizing their businesses in 2010.

SAS is well-positioned to play a critical part in recoveryefforts. By providing our customers with a business analyticsframework that can grow over time, we empower them to meetboth the demands of today’s economy and the opportunitiesof tomorrow with:

Data management capabilities that improve thefow o and access to in ormation throughoutorganizations.Greater insights into data or making quick,

meaning ul decisions.Risk analysis and optimization solutions to savemoney.Customer intelligence and marketing automation todrive sustainable revenue growth.Social network analysis to uncover raud and terroristthreats as well as business opportunities.

Finally, as a debt-free global company, SAS offers ourcustomers another valuable commodity: stability. We attributethis to our 34-year focus on listening to our customers andmeeting their needs with robust, reliable and relevant products

and services. SAS is poised for growth again in 2010. Themomentum is greater than it has ever been for this company,and the future looks promising indeed.

Sincerely,

James H. Goodnight, PhD, CEO

7 Gartner Research, “Magic Quadrant or Operational Risk Management So tware or Financial Services,” by Douglas McKibben and DavidFurlonger, August 28, 2009. See the ull report at www.gartner.com/technology/media-products/reprints/sas/vol6/article3/article3.html

8 Gartner Research. “Magic Quadran t or Data Integration Tools” by Ted Friedman, Mark A. Beyer and Eric Thoo, November 25, 2009.See the ull report at www.gartner.com/technology/media-products/reprints/sas/vol6/article5/article5.html

9 The Forrester Wave: Business Per ormance Solutions , Q4 2009 report,www.sas.com/news/analysts/ orresterwave-bus-per -q409.pd

10 The Forrester Wave: Cross-Channel Campaign Management Plat orms, Q4 2009 report,www.sas.com/news/analysts/ orresterwave-cm-104330-1209.pd




SAS achieved its 34th consecutive year of growth in 2009, withglobal revenue reaching US$2.31 billion, up 2.2 percent over2008. SAS saw healthy sales growth in multiple industries. Salesto the retail industry increased by 12 percent, despite a verychallenging environment for that sector. Sales to the health careindustry were up by 8 percent. And sales to the oil and gasindustry increased by more than 30 percent.

Our growing network of alliance and channel partners playedan integral role in 25 percent of new sales and half of the top 50

global deals. Specifically, there are strategic initiatives includingpartnerships with leading business consultancies and systemsintegrators, expansion of in-database activities across multiplepartner platforms, and a continued focus on building third-partychannels.

Partnerships with global systems integrators such as Accenture,Capgemini, Deloitte and Wipro Technologies offer customersthe specialized resources and expertise to deploy SAS Business

Analytics throughout the enterprise. In addition, SAS continuesto drive the momentum of in-database analytic innovation withtechnology partners such as Teradata and Netezza.

Global Presence, Global successSAS’ revenue growth remained distributed around the globe

The Americas accounted for 44 percent of total revenue; EuropeMiddle East and Africa (EMEA) contributed 45 percent; an11 percent came from the Asia Pacific region.

Of the 120 countries where SAS does business, 83 percent sawgrowth in software sales. Among mature markets, growth ratesfor software sales were highest in the US, the UK, CanadaGermany and the Netherlands. In developing markets, double-

digit percentage gains were achieved in most ofEa ster n Eu ro pe , the Middle East, South Africa and pockets o

Asia and Latin America.

Even in a challenging global economy, SAS did not waver iits commitment to our 11,000 employees and our core beliefthat happy, healthy employees are more productive. In 2009,SAS was again recognized as an employer of choice aroundthe world. In the EMEA region, we received workplace awardfor our offices in Germany, Sweden, Belgium, Norway, Portugand Finland. In the Asia Pacific region, we received workplacawards in China, Australia and India.

In the Americas, we were recognized in Canada and Mexicoand as this annual report was being produced, we receivednotification that we ranked No. 1 on the FORTUNE 100 BesCompanies to Work For list in the US – our 13th consecutivyear on the list.

sTabiLiTy and GrOwTh – 34 years and COunTinG




2009 reVenue

r v i t

r v r g o

r v G o t 1976-2009

Americas44%

EMEA45%

Asia Pacifc11%

Financial Services 42%

Manu acturing 6%

Communications 7%

Li e Sciences 6%

Retail 4%

Services 11%

Government 15%

Education 3%Energies & Utilities 3%

Health Care 2%

Other 1%



SAS Institute Inc. World Headquarters +1 919 677 8000T t t y sas f , p vi it: www.sas.com/o fces

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