atoss software ag – excellence in workforce management...software languages top line visibility as...

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Excellence in Workforce Management

ATOSS Software AG

Christof Leiber | Member of the Board | ATOSS Software AG

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01 Key Investment Highlights & Market

02 Workforce Management @ ATOSS

03 Go to Market Strategy

04 ATOSS KPI’s and Cloud Transformation

05 The ATOSS Share

06 ATOSS Key Figures Q2I2020

AGENDA

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 21.09.2020

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Key Investment Highlights & Market01


CITY OF MUNICH | ServicesATOSS Annual Report 2019

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As of 01/2020

¹ Operating cash flow

ATOSS – Outstanding on key levels

Highlights


>30 yearsof experience in the

market

ATOSS is first

mover and

innovator

in the field of

workforce

management

Double-digit

revenue growth

(14% CAGR 2017-2019)

42countries worldwide, thereof 28 in Europe

Market leader

for workforce

management in

DACH

+60% CF¹ to EBIT ratio

+25% EBIT margin

9 Currently available

software languages

Top line visibility

as stock corporation

8,000+ customers

worldwide from SMB

to blue chips

500+employees

~3.4millionEmployees managed

with ATOSS solutions

Technology &

development leader with

R&D expenditure of

~17% of sales

Profound

understanding

of customer needs

Recurring revenues

reinforced by increased

share of SaaS

5

Source: Technavio, introduced on January 1, 2015

01 Workforce Management Market

Market Overview EMEA


20172016 20212018 2019 2020

2,072

1,501

1,906

1,6241,758

2,255

8.2%8.3%

8.4%

8.5%8.7%

8.8%

EMEA Workforce Management Software Size (2016-2021) in $mm

Increasing HR software spend

due to sustained focus on

employee satisfaction

Ongoing globalization of

organizations driving demand

for data analytics and

predictive analytics as well as

information sharing across

company networks

Main growths drivers:

Growths FY 2019: 14%

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01 Workforce Management Market

Main Drivers


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Workforce Management

@ ATOSS

02


EBM-PAPST | ManufacturingATOSS Annual Report 2019

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ATOSS helps companies to have ...

02 Workforce Management in a Nutshell

Efficiency via Highly Flexible Staff Deployment

the right employees,

with the right qualifications,

at the right time,

at the right place,

… cost optimised!


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01 Managing Complexity

Workforce Management

Interests of employees

Objectives of the company

Regulatory environment

Aggregation of all relevant

interest groups

Optimal workforce

management


ATOSS Workforce

Management enables

10

02 Comprehensive Workforce Management

6 steps for success


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Current situation

Fluctuation in demand

Little flexibility and long response times

Goal

Demand and cost-optimized synchronization of

working time and order volume

02 Highly flexible, demand-optimized workforce scheduling

Digital Workforce Management


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02 Challenges in the era of the coronavirus

ATOSS WFM solutions for companies during shut down and ramp up

High fluctuations in demand and personnel require effective and highly efficient

digital solutions for demand-oriented personnel planning

How can digital workforce management help ?

Simple and legally compliant documentation of home office concepts

Legally compliant documentation and analysis of short-time working

Transparent and efficient management of more flexibility in personnel deployment and working

hours/accounts

Simulation of ramp-up phases and appropriate shift/working time models

Personnel deployment reflecting volatility, health safeguards and other aspects of ramp up phases

Introduction of long-term accounts and flexible working time models for future fluctuations and their

compensation

Annual holiday and capacity planning

Management of crisis-specific absences/reasons for absence


Strengthening cost efficiency and competitiveness

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Source: Handelsblatt | 20.04.2020

02 Challenges for companies in the era of the coronavirus

Five hurdles in opening the economy

Health Protection

Staff shortages

Disrupted logistics and cracks in

the supply chains

Lack of orders and slow

approval procedures

Financial bottlenecks

2

1

4

3

5


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03Go to Market Strategy


LACOSTE | RetailATOSS Annual Report 2019

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03 ATOSS Product Portfolio

As full-range provider, we offer solutions for every requirement


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Highlights

Customers more than quadrupled

in two years

New product features developed

High customer satisfaction

03 ATOSS Full Range Strategy

Crewmeister continues successful development


550

Proj.

2022

20182017 Proj.

2021

2019 Proj.

2020

12,000

1,3002,541

4,300

7,900+85.3%

Outlook

Continued growth of more than 100%

p.a. expected

Ongoing increase in sales per customer

expected (new product features)

Impact Covid 19:

Increase in Churn

More agility in customer acquisition

80 200502

2018

1,000

2017 2019 Proj.

2020

Proj.

2021

Proj.

2022

1,800

3,100

+107.8%

2019 Proj.

2021

21.6

2017 2018 Proj.

2020

Proj.

2022

25.3

18.0

24.523.8 23.9

7.0%

Customer Development Sales Development (TEUR) Sales/Customer Ratio (EUR)

Key metrics

Av. Customer Acquisition costs

(CAC*): 310 EUR

Av. Customer Lifetime Value

(CLTV**): 950 EUR

CLTV/CAC-Ratio: 3.06

Av. Monthly Churnrate***: 1.8%

Av. growth rate Av. growth rate Av. growth rate

* CAC (Customer acquisition cost) (1.HY 2020): cost of resources for the business in order to acquire a new customer. Customer acquisition cost involves sales and marketing costs.

** CLTV (Customer lifetime value) (1.HY 2020): estimate of all the future gross profits to be accumulated from a relationship with a given customers

*** Churnrate: Ratio, in the current year/month, of customer terminations (number) and the total number of customers (number) with an existing contract at the end of the year/month

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ATOSS KPI’s and Cloud

Transformation

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DB SCHENKER | LogisticsATOSS Annual Report 2019

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04 ATOSS – 14th Record Year in Succession

Running like Clockwork


2006 20112007 2008 20132010 2012 2014 2015 2016

49.5

29.1

2017

29.3

2018

35.5

20192009

33.0

22.0

31.624.4 26.9

39.744.9

54.662.6

71.4

+14%

+7%*

+12%

2007 2010

14.6

2009 2012 2013 2014

23.9

2015

12.9

2016 2017 2018

27.0

2008

21.8

20112006

16.0 16.8 17.8 18.8 20.1

30.234.6

39.446.5

2019

+18%+8%*

+14%*

2007 201820132012

7.3

20092008

3.7

2011 2014 2015 20162006 2017 2019

5.0

2010

2.85.5 6.8 7.6 8.4 9.8

13.611.3

14.116.9

19.3+14%

169 195 226 234 249 266 276 289 305 340 367417 465 503

201220092008 20102006 20112007 2013 2014 2015 20182016 2017 2019

+8%+8%*

+11%*

Stable sales and continued positive earnings development

Long-term security for our customers

Consistent ongoing investments in portfolio and technology

Total revenue in EUR mill. Software in EUR mill.

EBIT in EUR mill. Employees end of year

24%**13%** 27%** 27%**25%**

* Average growth rate

** EBIT in % of total revenues

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04 ATOSS Cloud Transformation

Success in Cloud Transformation with Increased Recurring Revenues

20152014 2016

0.3

2018

0.9

34.6

2.0

2017 2019

19.916.9

27.023.9

30.2

39.4

46.5

15.4

8.59.8

18.1

11.212.7

4.2

21.9

13.3

24.2

7.8

14.5Licences Maintenance Cloud



Software revenue break down in EUR mill.

Average growth rate Cloud revenue 2015 – 2019: 130%

Continuous expansion of the share of recurring software revenues (Maintenance and Cloud) from

64 percent in 2015 to 69 percent in 2019

Limited churn p.a. Cloud: ~5%

Maintenance: ~2%

64% 63% 63%66%

69%

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04 ATOSS Cloud Transformation

Growth Leading the Way for Increased Recurring Revenue

1%

37%

3%

37%23.9

58%

Proj. 2021

6%

2017

34%

56%

11%

30.2

2018

52%

17%

2015

~ 60

29%

2019

49%

~ 52

31%

22%

Proj. 2020

23%

45%

32%

21%

39.4

60%

2014

41%

36%

Proj. 2022

64%

46.5

63%38%

36%

2016

27.0

34.6

~ 71

+13%+12%

+15%+14%

+18%

~ 15%

Licences Maintenance Cloud


Software revenue in EUR mill. and growth in % (YOY)


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04 ATOSS Order Situation

Strong demand for our cloud solutions and software licenses as excellent basis

for further growth

Average cloud contract duration – 42 months

* ARR (Annual Recurring Revenue) comprises the turnover generated by the company over the next 12 months on the basis of current monthly cloud usage fees applicable as of the qualifying date incl.

Crewmeister


1. HY 2017 1. HY 20201. HY 2018 1. HY 2019

5.1 5.1

6.1

8.4

+38%

Orders on hand sw licenses in EUR mill.

Q1 Q2 Q3

10.6

4.8

Q4

3.2

5.5

9.8

3.5

6.3

7.7

4.2

8.3+72%

+78%

+79%

+70%

+83%+73%

Cloud ARR*: Quarterly development in EUR mill.

20202018 2019

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04 Capacity Utilization

Customer Services and Support

Strong order development and shift to existing customers ensure high utilization of ATOSS Consulting

Capacity in 2020

Hotline services as another source of recurring revenues


Consulting revenue in EUR mill.

50%50%

~30%

~70%

New customers

Existing customers

Scenario: Agile Utilization of Consulting Capacity in %

84%

1. HY

2018

1. HY

2017

1. HY

2019

1. HY

2020

AC 2019

16%

84%

16%

Proj.

2020

7.18.5

9.4

11.6

19.5

~ 22.0

Consulting

Hotline

Higher Volume New Customers Lower Volume New Customers

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ATOSS – Growth Projections 2020 – 2022

Strong Growth and Margins while building Recurring Revenue


Total Revenue

~ 80 EUR Mill.

EBIT Margin

> 25%

Increasing Share of

Recurring Software

Revenue from

66-80%

Total Revenue Growth

p.a. 11-13%

Software Revenue

Growth

p.a. 13-15%

EBIT Margin from

25-28%

Projections 2020 - 2022Guidance 2020

No visible impact of COVID-19 on the business

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The ATOSS Share05


MEDGATE | Healthcare & social servicesATOSS Annual Report 2019

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ATOSS stays true to its dividend policy with continuity to the previous year

* The previous year’s figures have been adjusted due to stock split in 2020

05 The ATOSS Share

Dividend Policy


201520072006

1.18

2008 2011

0.38

2009 2010

0.24

2012 2013 2014 2016 2017 2018 2019

0.44

0.32

0.50

0.61

0.72 0.73

0.890.96

1.17

1.41

1.70

0.58 0.59

2.63

0.12

201020072006 2008 2011 2017

0.48

2009 20202012

1.45

0.36

2013 2014 2015

0.25

0.93

2016 2018

1.30

0.70

2019

2.75

0.12

2.00

0.160.22

0.300.36

1.81

0.360.44

1.40

1.28

EPS* per 31. December in EUR Dividend* in EUR

Special dividend

Dividend

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100%

600%

1100%

1600%

2100%

01.01.2010 01.01.2012 01.01.2014 01.01.2016 01.01.2018 01.01.2020

ATOSS Software AG

DAXsubsector Software Performance-Index

SDAX Performance-Index

05 The ATOSS Share

Development ATOSS Share 01/2010 – 08/31/2020

01/01/2010 – 08/31/2020: ATOSS share grows by 1,981* while the DAXsubsector Software

Performance Index gains 410% and the SDAX Performance Index 255%

Sustained increase of shareholder assets

The ATOSS share offers additional upside potential

* XETRA Closing price 01/01/2010 and 08/31/2020 – without integration of special dividend


100%

600%

1100%

1600%

2100%

01.01.2020 01.03.2020 01.05.2020 01.07.2020

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100%

600%

1100%

1600%

2100%

01.01.2010 01.01.2012 01.01.2014 01.01.2016 01.01.2018 01.01.2020

Workday SAP Oracle ATOSS

05 The ATOSS Share

ATOSS Performance – Oracle, SAP, Workday 01/2010 – 08/31/2020

Source: www.comdirect.de (ATOSS Software AG, SAP AG, XETRA; Oracle, Workday: Stock exchange Frankfurt)


100%

600%

1100%

1600%

2100%

01.01.2020 01.03.2020 01.05.2020 01.07.2020

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ATOSS

Key Figures

06


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Stable sales and continued positive earnings development in the first half of 2020

Strong EBIT Margin of 28 Prozent

06 Continuous Growth in the first half of 2020


1.HY 201.HY 191.HY 161.HY 15 1.HY 17 1.HY 18

21.7 23.926.5

29.4

40.6

33.9 +20%

Total Revenue in EUR mill.

Software

1.HY 19 1.HY 201.HY 171.HY 15 1.HY 181.HY 16

13.1 14.516.6

18.522.0

26.2

+19%

1.HY 191.HY 161.HY 15 1.HY 17 1.HY 18

11.5

1.HY 20

5.6 6.2 6.67.5

8.7 +33%

1.HY 181.HY 15 1.HY 191.HY 16 1.HY 17 1.HY 20

0.550.500.56

0.630.74

1.04

+40%

EPS* in EUREBIT in EUR mill.

Software in EUR mill.


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Thank You for Your Attention!


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Attachments


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Continuous Expansion of Personnel Capacities


Focused on development and services personnel.

The proportion of those two groups in terms of total personnel has increased by 7% from 2006 to 2019.

51 68 83 94 105 120 119 130 130 146 156 172 180 185 19449

5868 70 71

71 71 74 8292 100

115 125149 159

4035

38 35 3539 42 43 46

5558

7187

9592

2934

37 35 3639 44 42 47

4753

59

73

7479

2006

195

2007 20132011

367

2008 20122009

169

2010 2014

305

2015 2016 2017 2018

269

2019

226 234 247276 289

340

417

465

524503

30.06.2020

Administration DevelopmentServicesSales & Marketing

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Continuous, ongoing Investments in Research & Development

Continuous increase in development expenditures ensuring the future of our products.

ATOSS customer benefit from advanced, leading edge solutions.

2011

5.6

2006 2007 2012

4.6

2008 2009 2015201420132010 2016 2017

7.1

2018 2019

3.9

6.7

11.9

5.1

6.0

7.58.0

8.7

9.5

10.3

11.2

+9%*

Expenditure on research & development in EUR mill.

*Av. growth rate


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The three largest customers account for less than 10 percent of company‘s sales.

Workforce Management Market

ATOSS Sales by Segment


26%

24%

14%

13%

12%

11%

Logistics

Production

Healthcare & Social Services

Retail

other

Services

20%

80%

Retail - Food, DIY, etc.

Retail - Fashion

35

Gartner study: Today, there is no single provider that can offer workforce

management across all regions and segments


As of today, there is no provider

that can offer workforce

management with unlimited

productivity on a global level

International customers have to

limit themselves to decentralised,

regional solutions.

Need

fo

r ch

an

ge

»There is no single, homogeneous

workforce management (WFM) software

market. Markets have evolved by industry,

geography, organization size […].

Gartner, Inc. (2014)

36

Regulatory scheme in mainland Europe requires different approach

than in the US to be successful

T&A in mainland Europe is dominated by

sheer endless number of rules & regulations

Differences in regulatory environment

between Europe and US lead to very complex

and individual legal frameworks in CE due to:

Strong unions and workers council

Extremely high individuality of company

agreements

High regional diversity of collective labour

agreements

By design, extensive room for interpretation of

rules in Europe

tens of thousands of variations of legal

requirements

Vendors without powerful rules engine fail

in mainland Europe

Compliance with magnitude of requirements

can only be accomplished by a generic, broad

and very powerful rules engine and NOT by

customer specific programming

Vendors who run T&A based on narrow,

standardized rule framework and solve

individualism through non-upgradable

programming, shipwreck in the face of the

diverse European rules and regulations


37

ATOSS continuously expands international footprint

to further develop service offerings for global customers


Localized for 42

countries

Team of 149 consultants

offering support in 6

different languages (EN, DE, FR, ES, NL, PL)

9 standard languages +

easy dictionary function

for entire solution

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Effects generated from ATOSS Projects

Cross-industry


-15%Personnel costs with

the same number of

staff

-22% Balance-sheet

provisions

-60% Residual leave

-70% Planning input

-82% Overtime

+5% Conversion rate

+11% Revenue

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As of 12/2019

Financial Highlights

Development over 14 Record Years


40


Financial Strength

Independence and Security for the Future


7.0

2014

7.6

2015 2016 2017 2018 2019

9.39.3

11.2

13.5

2016 20192014

0.960.89

2015 2017 2018

1.17 1.18

1.41

1.70

2015 20192014 2016

1.1

2017 2018

1.0

1.5

1.0

1.6

1.9

Net income in EUR mill. EPS* in EUR Cashflow per share* in EUR

41

Low volume of receivables and short collection

periods reflect good customer relations and well

structured business processes.

The extremely low value adjustments are

additional, impressive proof of the sound and

reliable business model.

Benchmark for Customer Satisfaction and Stability

53

36 3945

3225

30 27 27 28 28 27 28 30

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Collection period in days*

3.72.8

3.54.3

3.1 2.63.2 3.0

3.84.5 4.5

5.16.3

7,7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Receivables in EUR mill.

4411 11 16 0 7 9 15 8 27 19 8 25

201

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value adjustmentsin kEUR

*Gross receivables : Gross sales x 365

As of 12/31/2019


42

Balance Sheet Structure 2006 – 2019

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Assets in kEUR

Current assets Non-current assets

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Equity & Liabilities in kEUR

Equity Non-current liabilities Current liabilities

Sound structure of balance sheet

Assets: constant solid ratio between current and non-current assets

Equity & liabilities: high equity ratio (2019: 43 percent*)


*Equity ratio 2019 adjusted for IFRS 16: 53 percent

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ATOSS Full Range Strategy

Crewmeister – Simple & Affordable Workforce Management in the Cloud

Simple

Affordable

Mobile

Online

No implementation

Crewmeister is the starting point for small,

non IT-savvy companies

towards their digital transformation

Time tracking

Absence management

Time evaluation

GPS tracking

Scheduling

Communication


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Presentations or recordings of webinars may only be passed on to third parties or reproduced with the prior

written consent of ATOSS Software AG. The independent production of recordings as well as their

subsequent transfer to third parties also requires the prior written consent of ATOSS Software AG.

All information contained in this presentation or webinar is provided without guarantee of accuracy,

completeness or currency. Any contractual obligation and/or liability in connection with the presentation or

webinar, including vis-à-vis third parties, is excluded.

ATOSS Software AG 2020

Disclaimer


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