Sage Group plc · LSE:SGE
Sage — The Sage Group — Investor Day (September 2022)
37 slides from Sage's investor day presentation, Sep 22, 2022
Slide 1: Building the Small Business Engine
Building the Small Business Engine Webinar for Investors and Analysts - 22 September 2022
Slide 2: Important Notice
Important Notice The following presentation is being made only to, and is only directed at, persons to whom such predicting customer behaviour; customers may not respond as we expected to our sales and presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant m
Slide 3: Steve Hare, Chief Executive Officer
Steve Hare Chief Executive Officer Introduction Overview, market trends and strategy for growth Q&A © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 3
Slide 4: Meet the team
Meet the team Neal Watkins James Ashford Walid Abu-Hadba EVP, Accounting, Accountants, VP, GoProposal Chief Product Officer HR & Payroll Neal joined Sage in January 2020 to lead James joined Sage in September 2021 with the Walid is responsible for leading Sage’s global the Global Small Segment. Neal
Slide 5: Strategic framework for growth
Strategic framework for growth Purpose To knock down barriers so everyone can thrive Ambition To be the trusted network for small and mid-sized businesses Strategic priorities Scale Expand medium Build the small Scale the network Learn and disrupt Sage Intacct beyond financials business engine Stake
Slide 6: Our ambition: to be the trusted network for SMBs
Our ambition: to be the trusted network for SMBs Sage’s digital network Customers Accountants Suppliers Customers Regulatory Authorities Sage Products Digital Experience Employees Digital Financial Network Institutions © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 7: Five strategic priorities driving growth
Five strategic priorities driving growth Scale Sage Intacct Expand medium Build the small Scale the network Learn and disrupt beyond financials business engine Accelerate the expansion of Increase participation in the Build innovative solutions Sage Intacct in existing and Broaden the value proposit
Slide 8: Neal Watkins
Neal Watkins EVP, Accounting, Accountants, HR & Payroll Introduction Overview, market trends and strategy for growth Q&A © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 8
Slide 9: Leading small business proposition
Leading small business proposition • Unrivalled breadth of products • Best in class support, service and advice • Curated experience for small businesses and accountants Sage Accounting Sage for Accountants Sage 50cloud Accounts Sage Payroll GoProposal Sage 50cloud Payroll Sage HR AutoEntry Futrli C
Slide 10: Successful go-to-market execution
Successful go-to-market execution Effective digital customer acquisition engine Direct customer acquisition in UK is now 90% digital Comprehensive accountant proposition, from proposal to advisory Over 2,000 UK accountancy practices now use Sage for Accountants Trusted experts on compliance with unr
Slide 11: Market trends are a catalyst for growth
Market trends are a catalyst for growth Composability Governments Fintech enabling driving expanding the tailored digitisation market solutions as of tax opportunity needs evolve Importance of New world of work, sustainability distributed & social workforce responsibility © 2022 The Sage Group plc,
Slide 12: Technology is supporting SMBs through the current environment
Technology is supporting SMBs through the current environment Inflation and 90% of SMBs say Accounting & HR labour shortages technology is software are in the are the biggest key to their top 4 areas SMBs obstacles facing resilience and are looking to SMBs growth invest in Source: Digital Britain re
Slide 13: Building the Small Business Engine
Building the Small Business Engine Strategy for growth Accountant Small Business Making Tax Gold Standard Extending Practice Growth Suite Digital Accounting Payroll to HR Innovation powered by the Digital Network © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 13
Slide 14: Accountant Practice Growth
1 Accountant Practice Growth © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 15: James Ashford
James Ashford VP, GoProposal Introduction Overview, market trends and strategy for growth - Accountant Practice Growth Q&A © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 15
Slide 16: About GoProposal
About GoProposal Helping to turn accountants towards Sage Acquired by Sage in October 2021 Rapidly integrated Strong growth since acquisition Launched additional propositions Competitive differentiator © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 16
Slide 17: Challenges facing accountant practices
Challenges facing accountant practices Struggling with the confidence to raise their fees Finding it hard to recruit good staff Complex workflows, disconnected products MTD is changing they way they have to charge and deliver services © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 18: Sage for Accountants
Sage for Accountants Unique proposition for accountants, from proposal to advisory Win and onboard Membership with more profitable support and rewards as clients the practice grows Sage for Accountants Manage clients Give advice with effortlessly in confidence to one place clients Get bookkeeping an
Slide 19: © 2022 The Sage Group plc, or its licensors. All rights reserved.
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 20: Small Business Suite
2 Small Business Suite © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 21: Addressing the needs of small businesses
Addressing the needs of small businesses “Sometimes in business it's like you can't move your legs fast enough. It is literally like you're in a load of honey.” Stuart Simons CEO & Business owner Groom Dog City 1 2 3 4 5 6 7 Get Get Get tax & Get Get payroll Manage and Get expert customers, organise
Slide 22: Complete small business suite
Complete small business suite A single curated experience: SMALL BUSINESS SUITE Connects the business ACCOUNTING Streamlines workflows PAYROLL HR Delivers integrated insights Supports business growth ACCOUNTANT COLLABORATION © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 22
Slide 23: Growing with our customers
Growing with our customers Scale • Small business suite expands to meet the evolving needs of the customer • Customer expansion drives higher value HR • Integrated suite experience reduces customer churn 25 employees £ 1,200 Grow Payroll Payroll 25 employees 25 employees Build £ 324 £ 324 Payroll 10
Slide 24: Making Tax Digital
3 Making Tax Digital © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 25: Sage Accounting enables MTD compliance
Sage Accounting enables MTD compliance Legislation driving software adoption for 3.9m UK self-assessment tax payers Get customers, Get tax and get paid compliance Sage right Accounting Keep digital Find and records collaborate with an accountant HMRC recognised © 2022 The Sage Group plc, or its lice
Slide 26: © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 26
© 2022 The Sage Group plc, or its licensors. All rights reserved. Page 26
Slide 27: Extending our reach through strategic partners
Extending our reach through strategic partners © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 28: Gold Standard Accounting
4 Gold Standard Accounting © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 29: Building on our heritage
Building on our heritage Leading the Accounting category for the professional user through Sage 50 and Sage Accounting Customer Digital Network Experience Sage for Cloud Services Accountants Automation Compliance © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 29
Slide 30: © 2022 The Sage Group plc, or its licensors. All rights reserved.
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 31: Extending Payroll to HR
5 Extending Payroll to HR © 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 32: Supporting the new world of work
Supporting the new world of work Transforming the way small businesses pay, manage and engage their employees, by creating amazing work-life experiences Financial wellbeing Time and Performance attendance Payroll Sage Payroll Reward and recognition & HR Employee management Engagement Recruitment © 2
Slide 33: © 2022 The Sage Group plc, or its licensors. All rights reserved.
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Slide 34: Our product innovation and delivery is accelerating
Our product innovation and delivery is accelerating Accountant Small Business Making Tax Gold Standard Extending Practice Growth Suite Digital Accounting Payroll to HR Unique Integrated solution Addressing the Leading the Unlocking new proposition enabling needs of 3.9m category for the opportunitie
Slide 35: Key takeaways
Key takeaways We are winning with Accountants - strategy and product suite in place and delivering Small Unrivalled small business suite, with best in class Business customer service and membership experience Engine Successful go-to-market execution, driving growth and scaling across regions © 2022
Slide 36: Q&A
Q&A © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 36
Slide 37: Thank you
Thank you © 2022 The Sage Group plc or its licensors. All rights reserved. Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of Sage Global Services Limited or its licensors. All other trademarks are the property of their respective owners.