Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the Software AG Q4 full year results call 2021. Throughout today's recorded presentation, all participants will be in a listen only mode. The presentation will be followed by a question- and- answer session. If you would like to ask a question, you may press star followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Senior Vice President, Corporate Development and Investor Relations, Robin Colman. Please go ahead. Thank you, Stuart, and good morning, ladies and gentlemen. Welcome to Software AG's analyst call and webcast on the preliminary Q4 and full year results for 2021. This morning, Software AG has published the prelim results for the reported quarter and fiscal year 2021, as well as the presentation used in this call. Today's call will start with a presentation from our CEO, Sanjay Brahmawar, followed by Scott Little, Software AG's CRO, and our CFO, Dr. Matthias Heiden. We will try to keep the call in the regular one-hour timeframe and cover as many questions as possible. Before we start, here are some housekeeping remarks. This conference call is also being broadcasted via the web. You may access the webcast via our investor relations website, and the webcast will display the presentation slides related to this call, and the same slides are available for download on our website. The webcast, including the full call with questions, answers, and the names of questioners, will be recorded and made available for replay later today. Finally, let me remind you of our disclaimer statement, which is shown at the beginning of the slide presentation and is valid for the entire call. Thank you for your patience. Sanjay, over to you. Thank you, Robin, and good morning, everyone. Thank you for joining us today. In 2021, we delivered strong performance through our second full year of pandemic conditions. I'm proud of what the team achieved and our progress in transforming Software AG into an increasingly sustainable, profitable growth company. Our strong Q4 performance has strengthened my conviction that we have the plan, the products, the team, and the momentum to enter a new phase of growth in 2022. In Q4, we delivered a significant re-acceleration in our digital business, growing bookings 15% year-over-year. For the full year, our bookings growth was 12% just below our guidance range. At the end of December, we saw two deals delayed due to real-world personal factors on the client side. Both of these have now closed. Had they closed in Q4, our full year digital bookings growth would have been within our guidance range. Our digital growth is being driven by our subscription shift, with subscription and SaaS bookings reaching 88% of our digital total in both Q4 and the full year. This is up from 84% in Q4 last year and 81% across the full year 2020. Our ability to sell subscription and SaaS offerings is helping our execution engine to fire on all cylinders. We won 106 new logos in Q4 2021, bringing our annual total to a record 312. This new business, along with the value we're driving through migrations and renewals, is helping us grow ARR. Annual recurring revenue was up 11% at the group level in 2021 and up 12% in the digital business. Away from digital, our strong Q4 capped a year in which we met our increased A&N guidance with an expected bookings decline of 11%, reached the middle of our product revenue guidance with growth of 3%, and as we have done throughout Helix, landed a solid non-IFRS EBITDA margin ahead of market expectations at 19.6%. In the coming year, we'll push forward with the support of our new strategic partner, Silver Lake. We're working through the process of onboarding them right now, and it's going extremely well. Our guidance for this year is underpinned by our three clear growth drivers. They've supported our performance in 2021, and they form the building blocks of our growth path going forward. First, we'll continue to grow new business by accelerating our land and expand activity. Second, we'll continue to leverage innovation to create incremental value through migrations. Third, from this year onwards, we'll see the contribution of renewals ramp significantly. Additionally, our business model shift to subscription is starting to become a P&L tailwind and will only gather strength from here on. I'm pleased to share that the ranges we've issued today reflect a step up on 2021. In 2022, we expect digital business bookings growth of between 15% and 25%, A&N bookings growth of between 0% and 5%, product revenue growth between 7% and 11%, and a non-IFRS EBITDA margin between 20% and 22%. Our guidance shows we are focused on profitable growth and on continuing to expand our margin going forward. This will be driven by growth in our top line, combined with greater emphasis on operational efficiency and productivity to help fund ongoing investment and growth. In confirming our 2023 ambitions, we have also reiterated our aim to reach EUR 1 billion of revenue, an operating margin of between 25% and 30%, a digital business CAGR of around 15%, and a recurring revenue portion between 85% and 90% of product revenue by the end of next year. We have clear plans in place to deliver these ambitions, and we'll talk much more about them at our Capital Markets Day in February. As you know, beyond this organic growth plan, we're also looking to access more of our addressable market through M&A. Silver Lake is actively involved in helping push forward our plans there. My confidence in our path into the midterm is underpinned by the progress we've made with our growth drivers in 2021, and especially the momentum we had exiting Q4. On new business, our bookings from new customers accelerated substantially year- over- year in the quarter. Importantly, all our major product areas and geographies are growing strongly. In North America, we signed a large integration deal with Lenovo, the $61 billion provider of consumer, commercial, and data center technology. In EMEA, we delivered an excellent ARIS win with Webuild S.p.A., the EUR 6 billion global construction player based in Italy. Our business process management software will help standardize and simplify enterprise processes across Webuild's entire global footprint. Also in EMEA, we beat PTC to a great IoT contract with Nyrstar. The EUR 3.5 billion multi-metals business is consolidating its OT and edge production process data into a single IoT platform, Cumulocity, to generate insight and improvement in its production operations. Importantly, after landing new customers like these are often expanding their contracts with capacity increases or new innovation. This is another topic for CMD, but to give you a sense of how this journey can work, I'll just mention a very recent case with the $40 billion Danish logistics company, Maersk. Here we beat competition to help Maersk in support of its transformation agenda, adding ARIS Process Mining to our existing partnership in a fantastic example of how organic innovation enables new business expansion. On migrations, at the end of Q4, we had moved just over 20% of our digital business maintenance baseline across to subscription contracts. This included two excellent wins with automakers Ferrari and Volkswagen. Ferrari moved forward in its hybrid journey by becoming a webMethods.io iPaaS customer. While Volkswagen moved to subscription with ARIS to drive its digital transformation and enable a consumption-based pricing model more aligned to its needs. Our progress leaves us with 80% runway left to continue creating value through migrations. This value is best demonstrated by the average migration multiplier we delivered in 2021 of 1.4x in our digital business. Finally, on renewals, the customer lifetime value benefits of our subscription model are now starting to come through, a clear return on our investment in customer success, which can be seen in the solid progress we're making on NRR. This return will continue to increase as our renewal cohorts grow in 2022 and in the years ahead. A Q4 renewal example came in North America with the $25 billion supply chain and manufacturing business Flex. Here, we renewed our hybrid integration relationship and upsold API management, enabling more fluid movement of enterprise data to ensure a better experience for customers in Flex's growth markets. With new innovation as part of the deal, the value of our contract with Flex increased 33% on renewal. Much of our ability to win is down to the quality and pace of innovation in our product. If I take you back to the start of Helix, our aim was to ensure we had the best products in the areas we wanted to drive our future growth. We viewed these as hybrid integration, IoT and analytics, and business transformation, and invested in developing cloud-native multi-tenant product sets to serve them. This means that the product was either born in the cloud or has been completely re-architected for the cloud, enabling us to massively simplify the customer journey and dramatically increase time to value. To date, those of our products ranked by leading analysts like Gartner and Forrester are all considered best in class. webMethods.io, Cumulocity IoT, and ARIS Process Mining all grew bookings in the high double digits in Q4, and together they are the reason we've been successful in setting a record for new logos in this year. Let me give you two examples of where this product set helped solve major enterprise problems in the quarter. First, in webMethods, we announced that our on-premise B2B customers are now available to export and import their data and applications to and from the cloud via our iPaaS platform, webMethods.io. For those customers, mostly large enterprises with substantial on-premise assets, this is truly the vision and potential of hybrid integration coming to life. It means efficiency, flexibility, and choice across on-premise and multi-cloud that they are using. Second, in process mining, through ARIS, we have now introduced a mining to model feature that helps customers to mine their processes, identify improvements based on the insight they mined, and model a blueprint for the process transformation that follows. In this space, we have one competitor who can mine and one competitor who can model. Neither can do both, and we can do both in cloud and hybrid. The strength of our team has also increased significantly through Helix, and we have worked hard to implement the growth culture driving our success. There are three key areas I want to touch on here. First is leadership, and our continued work to bring forward the next generation of experts in our business. We now have more than 500 participants in our leadership journey, and we are already seeing senior leaders emerge. Thomas Eymer was recently announced as our head of sales for DACH Region, and Hank Bailey has just completed a solid first quarter in his job leading our North American Government Solutions business. Their appointments mean that two important leadership positions, both of which we've discussed on these calls, have now been filled with internal candidates. Second is engagement, where we continue to increase employee alignment with our strategy. Our annual My Voice survey is a vital part of understanding how our people are feeling. In 2021, we saw 82% participation and a good increase in our engagement score to 4.14 out of five, up from 3.92 last year. Our strength was also evident in our industry engagement ranking, which improved 18 percentage points from 46 to 64 this year. That means we are ahead of 64% of our benchmark group on this metric. With these kind of outcomes, we're showing our team is fully aligned behind our strategy and is pulling in the same direction to achieve our objectives. Third is attracting and retaining the best talent in our industry. In 2021, we attracted hundreds of new employees to Software AG, including new joiners from UiPath, Salesforce, and AWS. Compared to that time last year, the largest net increases in FTE were in sales and in IT as we scale SaaS and invest in the agility and security of our own hybrid IT landscape. Of course, I recognize that people have left us this year, too. Like others in our industry, we've seen attrition creep up as the pandemic has eased. Importantly, half of our attrition was what we call non-regrettable as we transform our workforce to better support our growth ambitions. After experiencing higher sales attrition in U.S. at the start of the year, our hiring pace and a greater focus on career pathways within sales saw headcount in our North American sales organization stabilize. Overall, I'm confident we have the people we need to reach our goals and the plan in place to further reinforce our existing team. I'll come back later to summarize, but for now, I'll pass it on to Scott, who will update you on our go-to-market progress and our pipeline as we start the year. Over to you, Scott. Hey. Thanks, Sanjay. Good morning, everyone. In Q4 this year, our sales and go-to-market organization performed extremely well, pushing hard to achieve a big digital business acceleration after a softer Q3. Our digital business conversion rate was up year-on-year, and our new logo record was delivered alongside all four regions delivering strong bookings growth. Part of our success has been continued delivery in competitive situations. A great example of this came in EMEA, where we beat Apigee and Red Hat for a new API management contract with the $6 billion OCP Group. OCP Group is one of the world's leading chemical manufacturers with more than 150 clients on five continents. We beat our competitors because a business of OCP size needs to manage, control, and understand its API footprint on an industrial scale. Our API gateway is hands down the best solution for that task. We also saw returns on key investments focused on landing and expanding deals in a major growth segment for us, the upper mid-market. The DACH Mittelstand team won a further 24 land deals in Q4. These added to the 35 wins they'd already produced through the first nine months and increased the number of companies already moving through their expand journeys with Software AG. Combined with our established mid-market team in North America, continued to go from strength to strength, and our intention with the experience of Silver Lake to increase product specialization in our sales coverage model, this gives me real confidence that we can scale this important segment through 2022. Beyond our direct routes to market, we also saw more positive contributions from our partner ecosystem in Q4. As part of our deal registration program, our partners added 280 qualified leads to our pipeline in the quarter, which we are now progressing towards close. Overall, incremental bookings from partners made up 11% of our digital business total in 2021, roughly doubling from last year. This was supported by continued success in our cloud partnerships with the likes of Microsoft and AWS, helping us close 17 deals in Q4. Part of our ability to execute so well in Q4, and part of my confidence in our ability to deliver consistently going forward, comes from the increasing strength of our pipeline. We are working hard to ensure we fill the funnel as effectively as we can, and we have implemented a range of improvements in response to the pipeline progression challenges we faced in Q3. On the top part of the funnel, initiatives like our North American awareness campaign are showing we can invest effectively to capture demand. This campaign has now been responsible for around 40 new qualified sales opportunities. While early in the program, this represents a campaign conversion rate almost twice what we've seen with traditional, less targeted approaches. We plan to roll out similar campaigns globally in 2022. We'll start with our tier-one markets, the Americas, the U.K., France, and Germany, with a clear focus on hybrid integration. On mid funnel progression in 2023, I said we were doing three things, reallocating resources, using more efficient and repeatable sales plays, and getting more programmatic in our methods. First on resources. At the start of the year, we lifted and shifted a further 25% of our marketing resources from field marketing to digital account-based marketing focused on progressing our in-funnel opportunities. We also plan to reallocate marketing dollars such that we will have 50% more spend focused on activities directly targeting buyers known to be in market. We are able to do this due to the transformation of our marketing organization into a more efficient digital first demand engine. Second, on sales plays. We've identified the most successful approaches from last year and refined them for 2022. Our IoT as a service play won seven new deals in the quarter, including a great win with a very large Latvian telco provider. Our play with smart equipment makers won us 12 deals, including a milestone win with a world-leading textile machinery business. Lastly, on becoming programmatic, more programmatic. We've increased focus on interrogating the quality and durability of our pipeline, improving how we validate opportunities so we can focus our energy on the right ones. We are becoming more efficient by allocating more resources to those opportunities and focusing on moving them from what we call developing to best case situations as fast as possible. Looking ahead, I'm pleased to say that the momentum we created in Q4 has rolled over into a fast start to Q1. The team is ahead of our expected January linearity target, and that's important. Our trend of improving year-on-year conversion rate look set to continue, telling me we're maintaining the strength in our execution muscle. Our first half digital business pipeline coverage is good at around 3x, and the marketing investments we made in Q4, we are convinced will yield additional pipeline pace in 2022. With these building blocks in place and the nature of our revenue streams, I'm confident we will deliver on our 2022 targets. Now, Matthias, over to you. Thank you, Scott, and good morning, everyone. It's time to walk through the financials. I'll first make some comments on our bookings development. I'll then look at P&L and talk you through how bookings have converted to product revenues. Next, I shall explain our cost development and margin performance. Lastly, I'll talk about our financial position and our capital allocation priorities for the year ahead. First, to bookings. During Q4, we delivered group bookings of EUR 195.1 million, which represents growth of 1%. For the year, that means total bookings were EUR 517.7 million, growing 6%. As you know, we saw strong digital business performance in Q4, where our 15% growth represented bookings of EUR 164.8 million. While for the year, our digital business bookings of EUR 406 million ended up slightly below where we wanted, I would like to emphasize our quarter-on-quarter progression to show the extent of the acceleration we saw to end the year. In Q3, our digital business bookings were EUR 87.8 million. This means our Q4 result gives a sequential quarterly growth of 88%. This shows a good step up in pace from the 67% sequential growth we saw between Q3 and Q4 of last year. As expected, in Q4, we saw an increasing share of our digital business bookings come from subscription and SaaS. It's worth calling out a standalone 61% year-on-year growth in SaaS bookings. This represents strong progress in an area we expect to become increasingly prominent going forward. On subscription and SaaS, I will note that our weighted average contract term closed the year where we expected, at around three years. In A&N, our Q4 bookings were EUR 30.3 million, representing an expected decline of 40%. This brought our full year total to EUR 111.7 million, an 11% year-on-year decline inside our guidance range. On bookings to revenue conversion ratios, I'm happy to say we finished the year broadly where we expected. For the full year, our 46% digital business conversion ratio aligns pretty closely with the planning assumption we gave at the start of the year. In A&N, we saw a full year conversion ratio of 71%, slightly ahead of our full year planning assumption. The proximity of these results to our assumptions should give you comfort in our methodology when we confirm this year's ratio assumptions at our upcoming Capital Markets Day. Next, product revenue. In Q4, we delivered total product revenue of EUR 194.6 million, down 6% year-on-year. Our full year total was EUR 684 million, up 3% year-on-year and right in the middle of our guidance range. Our Q4 digital business product revenue was EUR 143.3 million, representing growth of 3% year-on-year. While it's good to see a third consecutive quarter of growth here, you will notice the step down from the double-digit performance we saw in Q2 and Q3. More than anything, this was down to increasing share of SaaS in our Q4 mix. Overall, our full year product revenue of EUR 469.5 million and growth of 5% is a more than solid performance. For A&N, product revenue in Q4 was EUR 51.3 million, declining 24% year-on-year as expected. For the full year, product revenue of EUR 214.5 million is 2% down year-on-year. Reflecting on 2021 as a whole, I am proud that having been through the process of transforming our business model, we have seen the growth we wanted to deliver on our P&L. The team has worked incredibly hard to deliver it, and I'd like to add to Sanjay's thanks for their efforts. Moving now to professional services. In the second quarter, without our Spanish business affecting our comparison base, we saw revenue of EUR 40 million, up 4% year-on-year. This brought our full year total to EUR 149.8 million, a full year decline of 8%. Adjusted for the Spanish sale, growth was 4% in the year. Our 2021 professional services margin was 21% in Q4, and 18% over the years. Together, our product revenue and our professional services revenue gave us total revenue of EUR 234.6 million for Q4, and EUR 833.8 million for the full year. This means total revenue was 4% lower in Q4, but grew 1% overall. With this full year outturn and our three clear growth drivers in place, our guidance for 2022 tells you that we remain firmly on track for our midterm ambition to reach total revenue of EUR 1 billion in 2023. On ARR, we saw another year of steady and reliable growth and ever-present through the Helix transformation. We saw pleasing growth at the group level with our total of EUR 585.4 million, representing growth of 11% year-on-year. Within this, we saw an acceleration in our digital business, where ARR was EUR 418.5 million at December 31, representing growth of 12% year-on-year. Subscription and SaaS are also making an increasingly powerful contribution. This year, subscription ARR grew 67% year-on-year, while SaaS ARR grew 43%. Within our digital business, when we launched Helix in the first half of 2019, our subscription ARR was EUR 30.1 million. As we ended 2021, subscription ARR had increased by EUR 153.6 million to EUR 185.1 million. On SaaS, as we launched Helix, ARR was EUR 22.1 million. As we exited the year, our SaaS ARR had increased by EUR 31.5 million to EUR 53.6 million. The customers in these ARR streams provide us with an ongoing lifetime value opportunity that we have not had before. As that opportunity is realized, we will create increasing value for our shareholders. When I look at full year total recurring revenue, I can report EUR 626.1 million, represented 10% growth year-on-year. As a percentage of total product revenue, this represents 92%. As a portion of total group revenue, this represents 75%, the highest we have ever achieved. Turning now to costs. Total costs for Q4 were EUR 202.4 million, up 6% year-on-year. For the year, that brings our total to EUR 711.7 million below market expectations. If we adjust our 2020 cost base for the sale of our Spanish professional services business and exclude SaaS hosting costs, our incremental investments in 2021 were around EUR 32 million. This is within the range we shared at our 2020 Capital Markets Day, with investment deployed across three focus areas, go-to-market, product innovation and cloud, and people and culture. We're remaining committed to investment in our growth. We also maintain a laser-sharp focus on profitability with strong cost management. This led us to a Q4 non-IFRS operating margin of 19.3% and a full year margin of 19.6%. Thanks to our strong sales performance and our continued focus on cost management, this result was ahead of our guidance range and market consensus. As we see increasing benefit from the operational efficiency and productivity improvements we have driven through Helix, the pace of our incremental investment will slow in line with the plan we shared at our last Capital Markets Day. On cash flow, the key thing to mention is that as planned, in the second half of 2021, we started to emerge from our transformation-driven trough and grow cash flow once again. As evidence for this, in Q4, our operating cash flow was EUR 25.4 million, up 88% year-on-year. On a full year basis, our cash flow showed year-on-year growth of 3% to EUR 116.2 million. As we exit our cash flow trough, I feel confident in saying we have managed the transition well, especially with improved cash collection processes and better payment term structures in our contracts. With those elements now in place and with the technical impact of our transformation shifting to become a tailwind from 2022 onwards, we look forward to delivering further operating cash flow growth next year and in the years to come. Before moving on, quickly on effects. Please note we saw a 3% benefit in the fourth quarter and overall a 1% headwind over the full year. Finally, I'll now make a few comments on our financial position and our capital allocation priorities for the year ahead. Our balance sheet has been strong through the pandemic, and we do maintain our robust position as we enter 2022. We currently have a net cash position of EUR 277 million, and we will use it, along with the option of accessing any of our existing debt facilities to fund our M&A program. That's it for me. I'll now hand back to Sanjay to finish the session and open it up for questions. Sanjay, back to you. Thanks, Matthias. Just a quick summary from me. Firstly, I'm very proud of how we finished the year. Our performance, particularly in our digital business, showed we have strong momentum as we start 2022. Secondly, that momentum is underpinned by the success of our shift to subscription and SaaS. We now have a cloud-native product set driving an increasingly high quality recurring revenue stream and a business set up to drive customer success and help that revenue stream grow. Lastly, today, we've issued guidance for this year that reflects our confidence in the springboard we built through Helix. The belief we have in our potential for future growth to 2023 and well beyond. Thank you very much for your attention. Now, Robin, it's time for questions. Thank you, Sanjay. Thank you, Matthias. Thank you, Scott. Ladies and gentlemen, you may now ask your questions. Please can I ask you to ask one question at a time? Stuart, please can you repeat the instructions on how to proceed. Thank you, Robin. Ladies and gentlemen, at this time, we will begin the question- and- answer session. In the interest of time, please limit yourself to one question only. In the case of more questions, please ask them in a second round or call the investor relations team after the call. Anyone who wishes to ask a question may press star followed by one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker phone today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. First question is from the line of Varun Rajwanshi from JP Morgan. Please go ahead. Hi, good morning. Thanks for letting me on. I guess the first question is, you know, it's good to hear the reaffirmation of 2023 margin ambitions from your side. If you look at the margin profile, it's still a pretty big jump from 2022 to 2023. What gives you the confidence for the big step up in margins in 2023? Hey, Varun, thanks very much for the question. I'm gonna give you a quick feedback from my side, and I'll also pass it on to Matthias for his comments. You know, there's two things. One, if you see how our growth is coming, it's coming through three cohorts, you know. It's coming through the new business that we're winning. It's coming through the migrations where we are achieving a multiplier 1.4, and the innovation is resonating, as I said. The third one is coming from an increasing contribution now from renewals. That is a very important part because, you know, in renewals, we have much lesser cost of sales than the efforts that we need to put to renew. Our net retention rate is really high. You know, we ended at over 104% this year. The business is very sticky, the technology is sticky, and we have high confidence. Number one, there is less costs associated with being able to renew. Number two, as Scott said to you, the execution rate is improving dramatically. I mean, Q4, we came out with a very strong execution rate, which also goes to show that our productivity, which is effectively the amount that each seller is contributing, that is also improving quite significantly. That's the number two. The third thing, Matthias mentioned that the contribution of our sales coming from partners is also growing. This year it was 11%, which is almost double what we did last year. Again, the cost of getting these opportunities into our pipeline and being able to then execute on those is lower than what we have in normal. It's these three aspects in combination with the renewal proportion increasing, which gives us very high confidence. The last part I would say is that we are also very consciously looking at our operational efficiencies and how we can optimize our costs internally so that we can again contribute to the margin expansion. I've said a lot, but I'll pass it to Matthias if he wants to add something. You've said a lot and almost finalized the answer, but it leaves me for the cost side of the house. I will start with a small reminder as to where we came from in 2021. We started the year with a margin guidance of 16%-18%, where the midpoint of which would have implied a 400 basis point acceleration per year across the years to move to the 25% at the end of 2023. We upped that guidance in October and have even outperformed that now at the end of the year at 19.6%. I think the ability to manage our costs is a proven track record in the company. Also under my tenure now, we have proven that again, that does give us confidence. We believe that on top of what Sanjay said for the top line related topics of the house, that we have all the building blocks in place and can now execute on the cost development in terms of the CAGR across the years that we have shared with you at Capital Markets Day. The way to think about this, ladies and gentlemen, just as a reminder, we said that the CAGR on the cost side would be between 4% and 6% over the years 2022 and 2023. We'll probably land more towards the upper end in 2022, and then more on the midpoint in 2023. With that said, you hopefully hear a very clear idea on the margin progression through 2022 into 2023. Thank you, Sanjay. Thank you, Matthias, really helpful. Thank you. Next question is from the line of Michael Briest from UBS. Please go ahead. Yes, good morning, and congratulations on the numbers today. I guess I want to sort of go back to the 2023 margin because, you know, a little over a month ago when we were on the call on Silver Lake, Matthias, you highlighted to us the ambition to exceed EUR 1 billion by 2023. There was all the comments about it, sort of investing for growth in the next phase. You wouldn't sort of reaffirm the 2023 margin targets on that call. I think a lot of us expected higher costs to be announced today and some change in that outlook. Can you know, just confirm that, at the Capital Markets Day in a couple of weeks time, there's going to be no change to these midterm ambitions? Whether this reiteration reflects a change in what you thought you would do or maybe that the pipeline of M&A acquisitions have shifted to the right somewhat? Just, you know, give some comfort that these targets are set in stone, and there's no chance they're being changed anytime soon. Michael, technically you're asking a slightly tricky question because you're asking me to confirm something that is in the future and how I will behave on the day. With that said, take that with a pinch of salt. We have no reason to believe that we will change midterm targets at the Capital Markets Day based on where the company stands today. Just as a reminder, because I think this sometimes gets forgotten a little bit, we refuel, for lack of a better term, our investments through productivity gains. That has been part of the 2021 execution, and that is part of the plans for 2022 and 2023. I'll just highlight that once again with the help of two examples. As we move into hybrid working mode, there is of course something that needs to be done to the facilities of Software AG. Yet that does not result in incremental investment for the company. Rather, the contrary is true. We're going through the facilities portfolio. We save on leasing expenses and put that back into the company. Some elements we save for good that helps the margin, other elements are reinvested. The other piece, which some of you are probably more excited about as an example, is the investment that we made into the customer success management organization. That helps to drive NRR, the renewal process, but more importantly, it increases the sales efficiency. Because so far in 2021, Scott's sales force has taken care of everything, including the renewals when it comes to the elements of the customer relationship. That is no longer the case going into 2022, which is why we feel upbeat around more new business coming our way because we have free time for the account executives. Hopefully those comments were helpful, Michael, in answering your question. Yeah. Maybe just one thing, Michael, to add to what Matthias says is, listen, you know, this is the second time we have confirmed our midterm ambitions, organic ambitions. Hopefully that should give you some comfort. The second thing is, Silver Lake came on board because they buy fully into the Helix strategy, and they fully support the Helix strategy, and they are here now to help us accelerate and further strengthen. Obviously now we will look at the inorganic part and, you know, as when the time is right, we will come back to you with our inorganic ambitions. There is no change to our organic ambitions. Okay? Okay. Thank you. Next question is from the line of Gautam Pillai from Goldman Sachs. Please go ahead. Great. Thanks for taking my question. I probably have a follow-up on the earlier question, and obviously Silver Lake is getting onboarded right now. So the comments you have made today and the reiteration of the 2020 targets has Silver Lake kind of blessed these numbers, if that's the right word. So at the time of the CMD, you know, what incremental should we expect in terms of a potential. Is it going to be a potential more longer term targets or something like that, which would incorporate the Silver Lake strategy as well? Hey, Gautam. Thanks very much for the question. I'll take the first part, and then I'll pass on the second to Matthias. Listen, as I said in my script, you know, the onboarding with Silver Lake is going very well. We've been engaging very, very strongly with Christian and with Jim Whitehurst, and that's been fantastic, you know. We've involved them very much in our planning. We've shared with them our budget for 2022 and our midterm, and they fully support our plans. That's number one part to your question. I'll hand it over to Matthias for the next one. Yeah. The only piece that I would want to add is if we take a step back in time, Gautam and everybody else, let's remind ourselves of the fact that there was a process that led to the fact that Silver Lake made a decision for themselves to come on board and invest in the company, which means that they did their due diligence. They investigated, they looked at the planning, they asked us the questions that gave them the confidence to come on board. We have now taken the next step coming out of 2021. They are aware where we stand as a company and where we want to go. That has not led to a change in that assumption. Got it. Thanks so much. If I can squeeze in one more, just on your 2022 guidance. It's a very wide range, in terms of, let's say the digital bookings. What needs to happen for you to be at the upper end of that range, versus the lower end? Gautam, yes, you're right, it's a range. Let me also say that, look, we are exiting Q4 with a very strong positive momentum. I think the big part here is our acceleration of our new business growth. You can see that we came out with 106 new logos. We did 312 for the full year. We absolutely aim to continue that acceleration in the new logos. That's kind of one part. The second thing, of course, is to make sure that we continue to drive that excellent performance in NRR. You know, we are exiting the year at above 104% NRR, and therefore, the ambition is to even further improve that. That will add again to the higher number of bookings. Finally, the last part is of course, you know, the multiplier. We have demonstrated very good success with 1.4x in this year, and we intend to even increase that further with new innovation that we bring. Let me just check if Scott wants to add anything to that. I would just add that, you know, we have the increasing portion of renewals, which helps us as well. Yeah. Clearly our focus for this year, because we have the additional sales capacity due to our CSM investment, is focused on new logo and new business growth. Thanks, Scott. Great. Thank you so much, guys. Cheers. Next question is from the line of Knut Woller from Baader Bank. Please go ahead. Thank you. Just two follow-ups, basically. The first one on the new logos, Sanjay, that you mentioned, and you mentioned here very good momentum as reflected in the number of new logos. When should we expect the new logos to more meaningful contribution in terms of of revenue? How long do you think it will take time until your land and expand strategy becomes here more visible in the reported numbers? That's the first one. Then a quick follow-up, if I may. Hey, Knut. Knut, thanks very much for the question. Listen, I think, you know, we've been working very hard, Knut, to strengthen our customer success organization. I can tell you that is making such a dramatic improvement because even before we sign a new logo, our customer success organization is already starting to engage with the customer, which means from, you know, day minus, we are talking about, you know, kind of, how the customer can implement, how the customer can adopt the technology, et cetera. The land and expand, you know, process really works. It takes anything between six to nine months to be able to expand once you've landed with a customer. You know, the more the customer success team strengthens, the more we are able to squeeze that duration. That's kind of sort of the momentum. Scott, anything to add to that? I would just add that we do two things in the, in that process. Remember, we not only with our CSMs work on setting our client up to be successful with their first implementation with us, part of that process is setting ourselves up to the expand motion. We have both those sets of work going on when we engage with a new client. It varies by product. How quickly we can expand is really a function of which product. We report these new logos, we don't report the distinction as to which product it comes in, it comes in under. It is a function of which product we are landing as to the timing of our expansion. Building on what Scott said, Knut, we will try to give you a little bit more insight to make it more tangible at CMD so that you can sort of enhance your understanding with regards to the respective products and what a typical land and expand journey looks like for a customer. I think that will put it into perspective because I acknowledge that so far we have said, "Hey, we start with a smaller average deal size because it's land." Now you're asking the right question around giving more insight as to how this will evolve over time. We'll try to make that more tangible for you. Thank you, guys. Just one follow-up to your comment, Sanjay, that you made on Ambition 2023 being organic. Just to get a better understanding of what you guys look for, I would assume, or is it fair to assume that if you look for M&A targets, that they have a higher growth rate than your own, and hence likely could be more, have an inferior margin profile than you currently? Is that a fair way to think about your plans here in general? Thanks for the question, Knut. Let me say, you know, we've been talking to you about building our capability on, you know, our pipeline and a very structured approach to M&A. We even spoke about this, the string of pearls strategy. We've discussed our strategy with Silver Lake. They fully understand what we are trying to do, and they fully back, you know, the approach that we have. We will continue down this strategy and we'll execute on this strategy. You know, the kind of real strategic diamond fit approach that we have looks at high growth companies absolutely in terms of subscription SaaS businesses, ARR businesses growing at, you know, healthy 15%-20% CAGR. Obviously contributing to our go-to market and creating the right kind of synergies that are possible so that we don't have sales motions that are totally alien to us. That's number one in terms of the strategic fit. Number two, we're looking for obviously companies that either are already profitable or have a very clear path to profitability. Thank you very much, Sanjay. As a reminder, if you'd like to ask a question, please press star followed by one on your touchtone telephone. Next question is from the line of Alastair Nolan from Morgan Stanley. Please go ahead. Morning. Thanks for having me on. Just a quick one on migrations. Could you maybe give us some comments around the pace of migrations? You've mentioned 20% have now actually been migrated in terms of DBP. Is that accelerating? Maybe a comment around kind of the willingness of customers to migrate from here. Is that getting, I guess, more difficult? Has there been some low-hanging fruit that's been migrated more quickly? Any color you could provide there would be really helpful. Thank you. Sure, Alastair. Let me just tell you because in my speech, I had mentioned that we have done approximately 20% of migrations are done now. We have a pretty big runway still to go. The pace continues, so there is no slowing in it. It kind of balances out now, so it stabilizes. Actually the willingness of customers, we are finding customers are actually quite excited about this migration, primarily because we are bringing good innovation and value to the table. I'll pass it on to Scott to comment around this willingness aspect. You know, my experience in talking to customers is, they understand the economics of having to go and buy that innovation from many other parties and how does it help them to continue with the strength that they get from us. Scott, maybe share some more flavor on that. Yeah, I'm happy to. First, we don't expect a significant change in the pace of migrations. We're getting pretty good at that, right? That's certainly part of our plan for 2022, and you should have confidence in that. We do. With respect to the percentage of the business that we're gonna have to deliver with new business versus migrations, we do have in our plan for 2022 that a larger percentage of our business will be new business and new logo versus migrations. That doesn't take away from the responsibility that we still deliver good performance in migrations. As to runway, I think we've talked about this before. Because we want to maintain that healthy ratio, we don't take every migration opportunity that comes along when it's presented to us in a particular quarter because we want to have a healthy migrations multiplier. Part of this is also a function of when does the client need the innovation and the timing of their own project as to when we look to take down the actual migration itself. So far, we think the pipeline for migrations is good. We don't see any difference in what we exited 2021, and I think you should have confidence that we're good at that now. Great. Thanks, guys. Again, as a reminder, if you'd like to ask a question, please press star followed by one on your touchtone telephone. Next question is from the line of Sven Merkt from Barclays. Please go ahead. Great. Good morning. Thanks for taking my question. I have one. Could you help us, please, with the mechanics of the product revenue guidance? I'm interested to hear how much is coming from renewals and already signed contracts and how much needs to come from new contracts, essentially. Thank you. Morning, Sven Merkt. It's Dr. Matthias Heiden. Happy to take the question. I will start to answer it today to give you an initial guidance on this. We will do the deep dive with you at Capital Markets Day, as we did last year, where we will update the slides on the final conversion ratios from bookings to product revenue, as well as the contract revenue that comes from contracts signed in prior periods. Maybe I can help you today already with regard to the importance of renewals, and I'll do that at the example of DBP bookings. When you look at the bookings numbers DBP full year, you see that in 2021, we did 20% of the DBP bookings coming from renewals. That portion is going up to around 25% in 2022 and will increase even further then because that is part of the overall plan in 2023. Maybe that's a helpful starting point. Okay, thank you. Maybe the one thing that is easy on that. Sorry, operator, because we can say that today. I just didn't have the data point immediately in front of me. 60% of the product revenue will come from contracts signed in prior periods because I want to avoid the misunderstanding that there's any magic to the number. That's in the door. We've got that there, so I can add that. We will update the full slide with the conversion ratios at CMD. Okay, great. Looking forward to the CMD. Thank you, Sven. There are no further questions at this time, and I would like to hand back to Robin Colman for closing comments. Please go ahead. Thanks very much, Stuart, and thanks very much, ladies and gentlemen, for your participation and constructive questions. If there's any further questions you'd like to ask, please reach out to the IR team. With that, we wish you all the very best for 2022. Thank you very much. Thank you. Thank you. Bye. Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for joining, and have a pleasant day. Goodbye.