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Torben Munch, COO, SimCorp A/S

ITB 27.01.2011


Torben Munch

Born 1958, M.Sc. Econ.

Chief Operating Officer, SimCorp A/S

Employed since June 1996

Area of responsibility in the Executive Management Team:

- Marketing & Sales

- Services & Distribution

Previous occupations

- Market Director LEC (IT & Outsourcing)

- Managing Director Enator DK (Consulting)

- Various positions in Nordea for 10 Years, (Banking & IT)

2


SimCorp introduction

is a global market leader in investment management

solutions

is in the business of risk reduction. This is achieved by

delivering unprecedented control by automatisation

is enterprise investment software designed to support

end to end investment management processes on a

modern architecture

is a mission critical software to SimCorp's customers

4


International market coverage

SimCorp Norge AS

SimCorp Sverige AB

SimCorp Canada Inc.

SimCorp USA Inc.

SimCorp Ltd.

Solutionforge Limited

SimCorp A/S

SimCorp GmbH

SimCorp

Ukraine LLC

SimCorp Asia Pty. Ltd.

Hong Kong

SimCorp Benelux SA/NV

SimCorp Österreich

GmbH

SimCorp Asia Pty.

Ltd. Singapore

SimCorp France S.A.S.

SimCorp Schweiz AG

SimCorp Asia Pty. Ltd.

European foothold – global outlook

More than 175 SimCorp Dimension customers

1100 employees and 490 in Denmark – and growing

Listed on the OMX Nordic Exchange Copenhagen

5


SimCorp Dimension era

Customised software

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

SimCorp’s history

UPDATE

2009 SimCorp StrategyLab established

2008 SimCorp receives royal export award

SimCorp moves into new corporate

headquarters

2007 SimCorp sells IT2

2003 SimCorp Dimension

2000 TMS2000 full STP product

1999 IT2 acquired to substitute TRACTS

1998 TMS2000 most important product

1997 Sale of Actuarial department

Official launch of TMS2000

1996 First TMS2000 implementations

1995 TMS2000 development intensified

EURm

180

160

140

120

100

80

60

10 Years Revenue Development

Getting Focused

1991 Risk management modules

1990 Financial analytics and library

1985 Building society systems

Money market systems

Pricing models for derivatives

Treasury systems

40

20

0

6


SimCorp’s business model

Initial licence fee (ILF)

Professional services

Maintenance

50

100

4

Additional licence fee

4 5

5 5

8 9 9 10 11

20 22 23 25 27

1 2 3 4 5 6 Year

7


Revenue by type, 2009 (2008)

Initial licences

10% (15%)

Maintenance

36% (32%)

Add-on

licences 17%

(19%)

Professional

Services 37%

(34%)

8


Innovation – time to market

ILLUSTRATIVE

Business

needs

Market

requirement

Traditional

approaches

SimCorp

Dimension

Solution

Time

12+ years track record: 2 releases of SimCorp Dimension every year

9


A robust business in a changing market environment

Financials 2009 2008

Total revenue EUR 180.4m EUR 175m

EBIT margin 22% 22%

Profit after tax EUR 26.9m EUR 31.2m

Order inflow (licence) EUR 43m EUR 54m

Dividend DKK 30 per share DKK 30 per share

Equity EUR 75.7m EUR 62.7m

10


Financial performance

Consistently

strong results

Profitable

growth

Strong

cash flow

Strong

balance

sheet

11


Leading clients in 4 segments

FUND MANAGEMENT

ASSET MANAGEMENT

PENSION

INSURANCE

12


EURm

Revenue per country of origin, 2005-2009

200

180

160

140

120

100

80

60

40

20

0

2005 2006 2007 2008 2009

Other

North America

Asia, Australia

UK and Ireland

Benelux

Germany, Austria &

Switzerland

Nordic

13


EURb

Where to go?

16.000

14.000

12.000

10.000

8.000

6.000

4.000

2.000

0

Insurance Pension Fund Mgn Asset Mgn

Source: SimCorp based

on AGF, Watson Wyatt,

BIS, IPE studies 2008

14


14,4 EURb

5,8 EURb

2,7

EURb

2,8

EURb

0,1

EURb

Worlds Asset Management AUM – est.

Source: SimCorp based

on AGF, Watson Wyatt,

BIS, IPE studies 2008

15


Sales

Presales

Implementation

Integration Interface Group

1. Line Support

Go to market

SimCorp’s operating model

corporate divisions

Global Product & Marketing

Management

Incident handling

Test

SimCorp Global Services

• Professional Services

• Implementation

• Support

Documentation

Core development

QA

Operations

SimCorp France/

Western Europe

Strategic Research

Technical services

Development

16


Market units and their responsibilities

Local presence:

Mission critical systems business

– Proximity to customer

– Local point of contact

– Delivery is cooperation with

clients daily

– Willingness to pay for quality

service

Decentralised sales, service and delivery

organisation

Centralised Product Development

– Economies of scale

– Control of risks and quality

Local responsibility:

Ownership of clients and potential clients

in the assigned area

Analyse the market in order to define

relevant target segments and competitive

strategies

Define a relevant marketing mix and

execute sales and marketing strategies

Implementation of SimCorp Dimension

Support clients and develop strategies to

secure a steady income from the existing

customer base

Generate adequate revenue and

customer satisfaction

17


“KyM”: Know your Market

Market demographics

• To provide the necessary data to

gauge the size of the market

potential in your territory

• Identify exact structure as to

segments

• Execute precise marketing

activities to these institutions

Collect data and maintain

these data

• I.e. Named institutions in the

Universe, Target institutions in the

Universe, segment coding,

out/insourcing level

Process to collect and

maintain the data

Responsible for the

collection and maintenance

KPI's for quarterly and

yearly target

• I.e. number of institutions to have

in Target

• Expected/Planned awareness

Resources/hours planned

for quarterly and yearly

reporting

18


KyC Know your Client/Prospect

Compliance to data

collection in order to

populate the Heat Map

• I.e. contact persons, current

use of systems, indication of

upcoming selection of

systems,..

These data are necessary

to populate your heat map

and assign anappropriate

treatment to each

institution according to the

heat map

Resources/ hours planned

for quarterly and yearly

reporting

19


Crossing the Chasm in Germany

New customers

Mainstream

The chasm

Time

20


Market Share among KAG’s

KAG Clients over time: SimCorp’s Alley to Market Leadership

70%

60%

50%

40%

30%

20%

10%

0%

2001 2002 2003 2004 2005 2006 2007 2008

KAG’s

Depositary Banking

Austria

21


INTRODUCTION

Introduction phase

New customers

Mainstream

Identify requirements quickly and

address gaps

Identify local “quirks” and get the local

lingo and most important local standard

integrations

Screen the market and identify risk

loving visionaries

Establish local professional sales team

and sign first contracts

Determine the bowling alley to cross the

abyss

Make plans for the tornado

The chasm

Time

22


Tornado phase

New customers

Mainstream

The chasm

Time

23


Main street phase

New customers

Mainstream

The chasm

Time

24


The Challenge

• Have every one who you want to know you...know you..in the way that you

want to be known

• Place critical resources toward opportunities closest to close...while at the

same time develop new relationships that will yield future benefit

• Find a meaningful balance between growth expectations and support of

budgetary constraints

• Maintain a sustainable, repeatable and measurable process that delivers

consistent results

25


Four Phase Evolution

Market Intelligence – Territory Plan

Segmentation – Heat Map

Treatment – Marketing

Pipeline Development

26


Strawberry springer or full throttle?

Cheap

Controllable

Slow

Expensive

Requires management

Can be fast

27

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