Intro to sage

Introduction to Sage

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What Sage does

Sage is a leading supplier of business management software and services to more than 6 million customers worldwide. From small start-ups to larger organizations, 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

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Key facts about our organization

Market Finances Customers

Global company with 13,600 employees

Revenue of $2.2B

for FY2010

Provide advice to customers through 1.7 million support

contracts

More than 6 million customers worldwide

Market capitalization of approximately $4.3 billion

Manage around 36,000 customer calls each day

One of the market leaders in the UK, North America,

Europe, South Africa, and Asia

Made over 40 acquisitions since 1991

Work with over 28,000 reseller partners and over

40,000 accountantsworldwide

All revenues retranslated based on average exchange rates for the year ending September 30, 2010, using an annual average exchange rate of 1.15 USD per GBP.

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Our strategy

Long-term goals Strategy

Be a key leader in all markets of the world

Supply business management software and

services that help our customers run their

businesses more efficiently

Develop products and services that are the

most compelling fit with a customer’s country

and industry

Maintain high levels of quality service support

that feed back into the product and services

development cycle

Have the most trusted brandsPosition our brands to meet our customers’

requirements

Have the most satisfied and active customers

in our industry

Focus on product innovation and

value-added services to meet the changing

needs of our customers

Experience superior organic revenue growth

versus our peer group

Develop the products and services that meet

the changing needs of our customers

Be recognized as one of the most admired

employers

Build organizational capability to drive

business performance

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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

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History of Sage

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1981Sage founded in Newcastle-upon-Tyne

1989Listed on the London Stock Exchange

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History of Sage

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1991Entered the U.S. market

1992Entered the French market 1997

Entered the German market

1997Guy Berruyer, current CEO, joins Sage

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History of Sage

1981

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2000 Reached 2 million customers worldwide

1999Entered the Portuguese and Swiss markets

1999Became part of FTSE 100

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History of Sage

1981

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2004Entered the Indian market

2003Entered seven new markets

2005Entered the Polish market

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History of Sage

1981

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2007Surpassed 5 million

customers worldwide

2006Entered the

Chinese market

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We group ourselves into four businesses

Northern Europe Southern Europe North America AAMEA

Revenue: $566m Revenue: $620m Revenue: $858m Revenue: $197m

30%† margin 26%† margin 22%† margin 25%† margin

UK, Ireland, Germany, Switzerland, Poland, Austria

France, Spain, Portugal, Belgium, plus subsidiaries: Brazil & Morocco

U.S. and Canada

South Africa, Australia, Singapore, Malaysia, China, India, Dubai, Saudi Arabia, Botswana, Namibia

Over 1.2m customers Over 1.3m customers Over 3m customers 600,000 customers

Over 3,600 employees 4,000 employees 3,900 employees Over 1,800 employees

Data for FY 2010. At constant exchange rates. †Earnings before interest, tax, and amortisation of acquired intangible fixed assets (EBITA)

Full results for FY 2010 available at: www.investors.sage.com

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Which all operate under the guidance of our executive team

Guy Berruyer Paul Harrison David Clayton Michael Robinson Karen Geary

Group Chief

Executive

Group Finance

Director

Strategy, M&A Director Legal Director,

Company secretary

HR &

Communications

Director

Klaus-Michael Vogelberg Pascal Houillon Ivan Epstein Alvaro Ramirez

Group CTO CEO, North

America

CEO, Asia, Australia,

Middle East & Africa

CEO, Europe

What we offer

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What we offer

To what kindsof businesses?

How do wecompare?

What dowe supply?

What we supply in North America:Business management solutions

Accounting and Financial ManagementSage BusinessVision AccountingSage BusinessWorks AccountingSage ERP AccpacSage ERP MAS 90 and 200Sage ERP MAS 500Sage ERP X3Sage FAS Fixed AssetsSage PeachtreeSage PFW ERPSage Pro ERPSage Simply Accounting

Human Resource Management and PayrollSage Abra HRMSSage TimeSheetSage Timeslips

Vertical Solutions—HealthcareSage HealthPro XLSage IntergySage Medical ManagerSage MedWare

Payment SolutionsSage Card ProcessingSage Electronic Check ProcessingSage Gift Card

Vertical Solutions—NonprofitSage FundraisingSage Fund AccountingSage Millennium

Customer ManagementSage ACT!SageCRMSageCRM.comSage SalesLogix

Vertical Solutions— Construction and Real EstateSage Master BuilderSage Timberline OfficeSage Timberline Enterprise

Integrated Small and Midsized Business (SMB) Market Offerings

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What are business management solutions?

CustomersImprove serviceMeet their needsBuild loyaltyMultiple payment optionsMultiple channels

OperationsManufacturingDistributionServicing

PeoplePay correctly and on timeRecord sickness and absenceFile legal documentsManage performanceDevelop potential

SuppliersGet what you need on timeManage costs

FinancesManage debtors and creditorsManage cash flowImprove revenue and profitForecasting and planningElectronic payment processing

AdvisorsFile accounts Statutory reportingForecasting and business planningAdvice and help from Sage

Software and services that help SMBs manage their business processes and relationships.

Yourbusiness

Customers

People

Fina

nces

Operations

Suppliers

Advi

sors

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How does our business split across these areas?

Although our business began as a provider of accounting software only, we have expanded our offerings, and accounting solutions now represent 54% of our total turnover.

Accounting54%

Payment Processing4%

HR andPayroll13%

CRM4%

Industry-specific25%

All percentages from 2010 FY.

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We offer a range of local industry- specific and specialized solutions

Northern Europe Southern Europe AAMEA North America

Accounting

HR and Payroll

Payment Processing

CRM

Construction and Real Estate

Healthcare

Not-for-Profit

Manufacturing

Transport/Distribution

•Upper mid-market•2% of Sage’s customer base

•Lower mid-market•16% of Sage’s customer base

•Entry-level

•Enterprise

•82%

of Sage’s customer base

0 E

MP

LOY

EE

S

25

5

00

5,0

00

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To what kind of businesses?

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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

Oracle17%

SAP32%

Sage5%

Others39%

Microsoft3%

Infor4%

SAP10%

Sage15%

Oracle10%

Others51%

Intuit4%

Microsoft10%

Source: AMR, Global Enterprise Application Market Sizing Report, July 2009

Source: *IDC #220937, Worldwide ERP 2008 Vendor Analysis, published December 2009

What setsus apart?

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What sets us apart?

Local focus

Customer experience

Trusted brand

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Sage’s decentralized model provides local focus with the support of global scale

Local focus

Empowered local management teams can respond quickly to local competitive and market changes

Products and services are developed locally to meet unique fiscal, legal, and regulatory environments (not “globalized”)

Time to market for innovation in products, services, and the business model is substantially reduced

Global scale

Successful innovations are shared quickly between Sage businesses

Global technologies can be shared between local markets

Sage can easily take advantage of lowest cost producer markets

Sage’s global brand and presence makes it a key business partner

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Our global reachCombined with our developers and business partners, Sage has a strong global presence.

Direct presence Distribution

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How do we reach our customers?

We have a thorough understanding of the SME marketplace

We ensure we are accessible and easy to do business with

The complexity of solution dictates which channel is most relevant

A global network of 28,000 business partners extends the Sage ecosystem and provides additional:

– Implementation and customization.– Training and support.– Specialist sector knowledge.

Sage’s network of 40,000 accountants and small business advisors play an important role as recommenders and resellers of Sage products

Routes to market

Retail Stores Business

Partners

Partn

ersh

ips

Accountants

Internet

Dire

ct

Strong and diverse routes to market tailored to match customer needs:

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The customer experience

We stand apart through:

The breadth and depth of our offering.

The flexibility of our solutions.

Superior support delivered locally by experts who advise customers on technical matters and critical business issues relevant to their market.

Providing services of the highest standard from the best people.

We aim to:

Exceed expectations.

Deliver extraordinary customer experiences.

Enable our customers to be truly successful.

By being local and by building long-term powerful relationships with customers, we can deliver outstanding service, which we believe is unmatched in our industry

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Bringing the customer experience to lifeWe listen to and involve our customers

Products developed for ease of use

Customer surveys built into products

Local support in every country for technical product advice and guidance on business-critical topics

User-centered design labs, online customer communities, events, focus groups, and more to seek feedback and customer insight

1.7 million support contracts, 81% renewal rate, 36,000 calls a day

We are recognized for our products and services

Winner of Best Contact Center at World Contact Center Awards in North America

Winner of the Golden Customer Relation Center award in Spain

Business Software Supplier of the Year, UK

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.

Thank you