Excellence in Workforce Management

ATOSS Software AG

Christof Leiber | Member of the Board | ATOSS Software AG

AGENDA

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 Q3I2020

2

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

01

Key Investment Highlights & Market

CITY OF MUNICH | Services

ATOSS Annual Report 2019

3

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

01 ATOSS - Outstanding on key levels Highlights

>30 years

of experience in the

Top line visibility

market

as stock corporation

Market leader

9

for workforce

Currently available

management in

ATOSS is first

software languages

DACH

mover and

innovator

in the field of

workforce

42

management

countries worldwide, thereof 28 in Europe

Double-digit

+60%

+27%

revenue growth

(14% CAGR 2017-2019)

CF¹ to EBIT ratio

EBIT margin

¹ Operating cash flow

4

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

500+

employees

8,000+ customers worldwide from SMB to blue chips

~3.4million

Employees managed with ATOSS solutions

Technology & development leader with R&D expenditure of ~17% of sales

Recurring revenues reinforced by increased share of SaaS

Profound understanding

of customer needs

01 Workforce Management Market Market Overview EMEA

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

Growths FY 2019: 14%

8.5%

8.8%

8.7%

2,255

8.4%

2,072

8.3%

1,906

8.2%

1,758

1,501

1,624

2016

2017

2018

2019

2020

2021

Source: Technavio, introduced on January 1, 2015

5

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Main growths drivers:

  • 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

01 Workforce Management Market Main Drivers

6

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

02

Workforce Management

@ ATOSS

EBM-PAPST | Manufacturing

ATOSS Annual Report 2019

7

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

02 Workforce Management in a Nutshell Efficiency via Highly Flexible Staff Deployment

ATOSS helps companies to have ...

the right employees,

with the right qualifications,

at the right time,

at the right place,

  • cost optimised!

8

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

02 Managing Complexity Workforce Management

Interests of

employees

Regulatory

Objectives of

environment

the company

9

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

ATOSS Workforce Management enables

  • Aggregation of all relevant interest groups
  • Optimal workforce management

02 Highly flexible, demand-optimized workforce scheduling Digital Workforce Management

Current situation

Fluctuation in demand

Little flexibility and long response times

Goal

Demand and cost-optimized synchronization of working time and order volume

10 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

02 Challenges for companies in the era of the coronavirus Five hurdles in opening the economy

1

2

3

4

Health Protection

Staff shortages

Disrupted logistics and cracks in the supply chains

Lack of orders and slow approval procedures

5 Financial bottlenecks

Source: Handelsblatt | 20.04.2020

11 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

03

Go to Market Strategy

LACOSTE | Retail

ATOSS Annual Report 2019

12 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

03 ATOSS Product Portfolio

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

13 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

03 ATOSS continuously expands international footprint

to further develop service offerings for global customers

International Revenue Share increases from 15% to 25% by 2025

ATOSS Solutions currently in 42 countries (9 standard languages + easy dictionary function for entire solution)

ATOSS Strategy

  • Expand regional Sales & Service Hubs
  • Set Up International Strategic Partners (Hyperscaler, Solution Partner)

14 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

03 ATOSS Full Range Strategy

Crewmeister continues successful development

Highlights

  • Customers more than quadrupled in two years
  • New product features developed
  • High customer satisfaction

Key metrics

Outlook

  • Av. Customer Acquisition costs Continued growth of more than 100%

(CAC*): 300 EUR

p.a. expected

  • Av. Customer Lifetime Value Ongoing increase in sales per customer

(CLTV**): 1.150 EUR

expected (new product features)

CLTV/CAC-Ratio: 3.83

Impact Covid 19:

Av. Monthly Churnrate***: 1.6%

Increase in Churn

Cloud Gross Margin: +70%

More agility in customer acquisition

Customer Development

Sales Development (TEUR)

Sales/Customer Ratio (EUR)

Av. growth rate

Av. growth rate

Av. growth rate

10.0%

10,000

3,200

25.6

28.1

29.0

23.8

+78.6%

+109.1%

21.6

6,700

18.0

1,800

4,300

1,000

2,541

502

550

1,300

80

200

2017

2018

2019

FC 2020

Proj.

Proj.

2017

2018

2019

FC 2020

Proj.

Proj.

2017

2018

2019

FC 2020

Proj.

Proj.

2021

2022

2021

2022

2021

2022

  • CAC (Customer acquisition cost) (09/2020): 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) (09/2020): 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

15 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04

ATOSS KPI's and Cloud

Transformation

DB SCHENKER | Logistics

ATOSS Annual Report 2019

16 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 ATOSS - 15th Record Year anticipated Running like Clockwork

Total revenue in EUR mill.

+13%

~82.0

62.6

71.4

+15%

54.6

+7%*

35.5

39.7

44.9 49.5

22.0

24.4

26.9

29.1

29.3

31.6

33.0

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

FC

2020

EBIT in EUR mill.

16.9

19.3

>22.0

+14%

9.8

11.3

13.6

14.1

6.8

7.3

7.6

8.4

5.0

5.5

2.8

3.7

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

FC

2020

13%**

24%**

25%**

27%**

>27%**

Software in EUR mill.

+14%*

~53.6

46.5

+8%*

39.4

+15%

34.6

27.0

30.2

12.9

14.6

16.0

16.8

17.8

18.8

20.1

21.8

23.9

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

FC

2020

Employees end of year

+10%*

+8%*

465

503

~550

226

234

249

266

276

289

305

340

367

417

+9%

169

195

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

FC

2020

  • Stable sales and continued positive earnings development
  • Long-termsecurity for our customers
  • Consistent ongoing investments in portfolio and technology
  • Average growth rate
  • EBIT in % of total revenues

17 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 ATOSS Order Situation

Cloud ARR*: Quarterly development in EUR mill.

Orders on hand sw licenses in EUR mill.

2018

2019

2020

+78%

+70%

+50%

11.5

+57%

10.6

9.8

+79%

+83%

9.3

+72%

8.3

7.7

6.3

5.5

4.8

5.6

6.0

4.2

4.6

3.5

3.2

Q1

Q2

Q3

Q4

Q1-Q3 2017 Q1-Q3 2018 Q1-Q3 2019 Q1-Q3 2020

  • The strong demand for our cloud solutions and software licenses and provides an excellent basis for further development of ATOSS
  • 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

18 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 Capacity Utilization

Customer Services and Support

Consulting revenue in EUR mill.

~23.3

Consulting

19.5

Hotline

14.4

17.3

12.9

84%

10.8

84%

86%

84%

83%

82%

18%

17%

16%

14%

16%

16%

Q1-Q3Q1-Q3Q1-Q3

Q1-Q3

AC 2019 FC 2020

2017

2018

2019

2020

Scenario: Agile Utilization of Consulting Capacity in %

Higher Volume New Customers

Lower Volume New Customers

~30%

50%50%

~70%

New customers

Existing customers

  • 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

19 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 ATOSS Cloud Transformation

Growth Leading the Way for Increased Recurring Revenue (Model Projectory)

Revenue in EUR mill. and growth in % (YOY)

~160

+12-16%

~139

~120

+14%

+15%

~93

~104

~82

+10%

+15%

+10%

71.4

62.6

54.6

49.5

~72%

44.9

~68%

~61%

48%

51%

~55%

42%

45%

38%

40%

38%

2015

2016

2017

2018

2019

FC 20'

FP 21'

Proj. 22' Proj. 23' Proj. 24' Proj. 25'

Non Recurring

Recurring

20 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 ATOSS Cloud Transformation (accelerated Model as of 2021)

Growth Leading the Way for Increased Recurring Revenue (Model Projectory)

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

~115

+14-18%

~97

23%

2%

~80

30%

+15%

~68

9%

+18%

~62

53.6

16%

36%

+14%

+12%

+15%

46.5

24%

26%

39.4

42%

77%

34.6

31%

30.2

27.0

34%

47%

68%

37%

50%

36%

37%

55%

52%

56%

42%

63%

60%

58%

29%

24%

17%

11%

3%

6%

1%

2015

2016

2017

2018

2019

FC 20'

FP 21'

Proj. 22' Proj. 23'

Proj. 24'

Proj. 25'

Licences Maintenance Cloud

21 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 Results of Accelerated Cloud Transformation: Software Sales* Current base model vs. Accelerated Cloud Transformation model

Success in Cloud Transformation since 2015 sets

Difference CF per year (Mio EUR)**

the case for low Cash flow impact during

31

accelerated cloud transformation.

24

17

Significant positive effect on future Cash flow opens

11

margin and/or future investment opportunities

5

-1

-3

-4

-1

-5

Assumption:

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

  • Effects for Cash flow will be similar to effects

in sales

Difference CF accumulated (Mio EUR)

72

  • Investments in product rolled over at cost to

sales ratio of 18% for R&D from 2021

41

onwards (2020e: 17%)

17

0

-1

-4

-9

-10

-14

-15

* Software Licences, Maintenance and Cloud incl. Aloud

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

** without considering TVM (Time Value Money)

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

22

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

04 ATOSS - Growth Projections 2020 - 2025

Strong Growth and Margins while building Recurring Revenue

Guidance 2020

Total Revenue

~ 82 EUR Mill.

EBIT Margin

> 27%

No visible impact of COVID-19 on the business

Projections 2021 - 2025

Total Revenue Growth

Increasing Share of

Recurring Revenue

from

p.a. 12-16%

>50 to >70%

Software Revenue

EBIT Margin from

Growth

p.a. 14-18%

>25 to >30%

23 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

05

The ATOSS Share

MEDGATE | Healthcare & social services

ATOSS Annual Report 2019

24 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

05 The ATOSS Share Dividend Policy

EPS* per 31. December in EUR

Dividend* in EUR

2.75

~2.00

Special dividend

Dividend

1.70

2.00

1.81

1.41

1.40

1.17

1.18

2.63

1.28

1.30

0.96

0.89

1.45

0.72

0.73

0.93

0.61

0.44

0.50

0.58

0.59

0.38

0.44

0.32

0.30

0.36

0.36

0.24

0.22

0.25

0.70

0.12

0.16

0.48

0.36

0.12

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

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2020

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

25

© ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

05 The ATOSS Share

Development ATOSS Share 01/2010 - 09/30/2020

2100%

2100%

1600%

1600%

1100%

1100%

600%

600%

100%

01.01.2010

01.01.2012

01.01.2014

01.01.2016

01.01.2018

01.01.2020

ATOSS Software AG

100%

01.01.2020

01.03.2020

01.05.2020

01.07.2020

01.09.2020

DAXsubsector Software Performance-Index

SDAX Performance-Index

01/01/2010 - 09/30/2020: ATOSS share grows by 2.098* while the DAXsubsector Software Performance Index gains 391% and the SDAX Performance Index 252%

Sustained increase of shareholder assets

The ATOSS share offers additional upside potential

* XETRA Closing price 01/01/2010 and 09/30/2020 - without integration of special dividend

26 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

05 The ATOSS Share

ATOSS Performance - Oracle, SAP, Workday 01/2010 - 09/30/2020

2100%

2100%

1600%

1600%

1100%

1100%

600%

600%

100%

01.01.2020

01.03.2020

01.05.2020

01.07.2020

01.09.2020

100%

01.01.2010

01.01.2012

01.01.2014

01.01.2016

01.01.2018

01.01.2020

Workday

SAP

Oracle

ATOSS

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

27 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

06 ATOSS Key Figures

28 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

06 Continuous Growth in Q1-Q3 2020

Total Revenue in EUR mill.

61.1

Software in EUR mill.

39.3

45.4

51.7

33.4

+18%

+18%

40.0

28.4

33.1

36.5

21.5

24.0

19.8

Q1-Q3/15Q1-Q3/16Q1-Q3/17Q1-Q3/18Q1-Q3/19Q1-Q3/20Q1-Q3/15 Q1-Q3/16Q1-Q3/17Q1-Q3/18Q1-Q3/19Q1-Q3/20

EBIT in EUR mill.

17.4

EPS* in EUR

1.50

12.0

13.5

1.01

1.15

+31%

+29%

9.8

10.2

0.87

0.84

8.4

0.72

Q1-Q3/15Q1-Q3/16Q1-Q3/17Q1-Q3/18Q1-Q3/19Q1-Q3/20

Q1-Q3/15Q1-Q3/16Q1-Q3/17Q1-Q3/18Q1-Q3/19Q1-Q3/20

  • Stable sales and continued positive earnings development in the first 3 quarters of 2020
  • Strong EBIT Margin of 28 Prozent

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

29 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Thank You for Your Attention!

30 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Attachments

31 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

ATOSS Sales by Segment

Logistics

11%

Healthcare & Social Services

12%

Services 13%

14%

other

Production

26%

Retail - Fashion

20%

80%

Retail - Food, DIY, etc.

24% Retail

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

32 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Gartner study: Today, there is no single provider that can offer workforce management across all regions and segments

  • There is no single, homogeneous workforce management (WFM) software market. Markets have evolved by industry, geography, organization size […].
    Gartner, Inc. (2014)
  • 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 for change

33 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

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

34 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

02 Comprehensive Workforce Management 6 steps for success

35 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

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

36 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Effects generated from ATOSS Projects

Cross-industry

-15%

-22%

-60%

Personnel costs with

Balance-sheet

Residual leave

the same number of

provisions

staff

-70%

-82%

+5%

Planning input

Overtime

Conversion rate

+11% Revenue

37 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Continuous Expansion of Personnel Capacities

540

465

503

76

74

417

73

106

367

59

95

340

87

305

53

276

289

47

71

269

58

234

247

42

47

55

149

162

226

39

44

125

36

46

115

169

195

37

35

39

42

43

100

35

92

29

34

38

35

71

71

74

82

40

35

68

70

71

58

172

180

185

196

49

120

119

130

130

146

156

68

83

94

105

51

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

AC

Administration

Sales & Marketing

Services

Development

09/2020

  • 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.

38 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Financial Highlights

Development over 14 Record Years

As of 12/2019

39 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Benchmark for Customer Satisfaction and Stability

Receivables

Collection period

in EUR mill.

in days*

7,7

53

45

6.3

39

4.5

4.5

5.1

36

32

30

30

3.7

3.5

4.3

3.8

25

27

27

28

28

27

28

2.8

3.1

2.6

3.2

3.0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

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

Low volume of receivables and short collection

Value adjustments

periods reflect good customer relations and well

in kEUR

structured business processes.

The extremely low value adjustments are

201

additional, impressive proof of the sound and

reliable business model.

44

11

11

16

0

7

9

15

8

27

19

8

25

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

*Gross receivables : Gross sales x 365 As of 12/31/2019

40 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Balance Sheet Structure 2006 - 2019

Assets in kEUR

Equity & Liabilities in kEUR

70.000

70.000

60.000

60.000

50.000

50.000

40.000

40.000

30.000

30.000

20.000

20.000

10.000

10.000

0

0

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

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

Current assets

Non-current assets

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

41 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Cloud Transformation - Technical Approach

C1 Sunset!

C2 Zero Downtime!

C3 Feature Branches!

CI/CD

C4 Service Architecture!

C5 ATOSS World!

42 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

Micro/Macro

Services

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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

43 © ATOSS Software AG 2020 | Christof Leiber | Excellence in Workforce Management | 23.10.2020

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ATOSS Software AG published this content on 23 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2020 08:04:04 UTC