Okay. That's hopefully the most dramatic part of the day. Let's get started. A big welcome to everybody that made the effort and come here and speak to us face-to-face, but also a big welcome to everybody on the live stream. If you're also watching and at a later stage, great that you're spending time on SimCorp. For the avoidance of doubt, my name is Christian Kromann. I'm the CEO of SimCorp. I've been that for a year now. I've been three year with the company, and we are super excited to spend the entire day with you to go through what we believe is a fantastic journey for the company. Let's get started. As always, I expect you all to know this by word. No joking aside, it's obviously important. An additional comment that I hope everybody is aware of is that today we will not give any long-term numbers. We communicated earlier that we want the new CFO to come in and think a little bit about what I'm telling him, and then we're gonna give new guidance when we come out with the 2023 guidance in February. We do spend a lot of time on a lot of details of the company that hopefully make it easier to understand SimCorp going forward. Before we start, I just wanted to make sure that you know who is here today. I already introduced myself. What you actually see here is what we now in SimCorp call the executive committee or ExCo, in the short name, and that is de facto the daily management of the company. The characteristic for everybody is that they have global roles. On top of that, we obviously also still have a strong regional footprint, which are the people driving the revenue in the regional markets, the three MDs, and they also report directly to me. Somehow we're making sure there is a commercial leadership team led by me, but there's also a ExCo that makes, what I would say, capital allocation and strategic decisions for the firm. The people in ExCo is Marc Schröter, who you've probably seen before. We just talked about the last Capital Markets Day was four years ago, which is obviously a long time. A lot of stuff has happened, which I will hope you're gonna see today. At that point, Marc Schröter was head of product management and has since then, roughly, earlier this year, took over as Chief Product Officer and is responsible for all product direction and all product strategy and all the, around 800 developers that we have in the firm. Michael Rosenvold, CFO. We actually do have our new Michael, CFO in the room as well, sits over here. He's here to just say hello. The official starting date is now announced to be December first, so we thought it was good to have both Michaels in the room. Georg Hetrodt, which most of you would also know, has been with the company for a very long time. Earlier this year, as part of the strategy, that we're gonna walk through today, I asked Georg Hetrodt to take ultimately the responsibility for all customers from the day they onboard and ultimately the entire life they have with SimCorp, regardless of what delivery model that they take. We labeled that COO. As some of you might remember, I joined as CEO, but this is a real COO, that is actually responsible for the operational part of the company. Georg Hetrodt will also talk to you today. Maybe a new face as well, Oliver Johnson, our Chief Commercial Officer. Oliver works with the local teams out there in the markets every day to make sure we scale and we get the right value proposition across our entire addressable market. Oliver has recently moved to Copenhagen to be close to headquarters for a while, and before that, he led the market unit in APAC. We have Johan. Johan is not gonna talk today, but Johan is making sure that strategy is connected with actions and make sure we actually have an underlying execution capability in what we are doing. Finally, Marlene, who is our Chief HR Officer, who is also in the room today but doesn't have a speaking slot. Finally, we actually do have invited some people that really know what they're talking about as well. Zoë is responsible for our front office part of our value proposition, and Jackie is responsible for accounting and ops and a very important driver in our business process as a service part of the strategy. I think you're in good hands today. At least it's the best hands we have. I hope it's gonna be very engaging throughout the day. A little bit of a kind of rough breakdown on what the agenda contains. I will start spending a good chunk on taking you through the strategy seen from the CEO's point of view. Oliver will come and take us through how we drive growth, and how we drive client experience. Marc will take over and take us through the product roadmap. Georg will then come and talk us through in detail what does SaaS mean for SimCorp, what does the journey look like. We will take two deep dives on the value proposition, starting first with the ops and accounting part with Jackie, and then going into the front office part with Zoë. We're gonna come back, look at each of the three markets that we have, North America, EMEA, and APAC, in detail market by market. Once we've done that, Michael will come and take us through the financial implications of what we talked about through the whole day. There'll be coffee breaks, and there'll be lunch, and there will actually be some drinks in the end if you have time to stay for it. There's a lot of opportunity to interact in smaller forums with questions and discussions. After each session, we will ask whether there are questions. Of course, if they are, then we'll take them on the fly. It's also to say that there's also plenty of opportunity to have more smaller conversations throughout the day. I can't remember when the coffee and the lunch are, but that will come naturally throughout the day. Let's get started on the strategy side. What I really want to or hope, at least that's the intent, is that if you don't remember anything else, there's kind of three things that stands out once we go through the day. How does SimCorp intend to grow our business? What are the constituents of that? How do we transform the business to ultimately align with those ambitions? Then finally, why is that interesting from an economic point of view? Obviously, if you look at SimCorp through the eyes of an investor, why is it ultimately a good idea to transform the company to be a SaaS company? Just a small remark because you might wonder, all the pictures you see, and that's actually a big part of SimCorp's culture, is that it's a people's business. So all the faces are actually of real SimCorp employees, and it's not specifically for you. That is an integrated part of all the presentations we give because we believe that's very important. Just if you wondered. I'm gonna talk about five things. I'm gonna give you a snapshot of what SimCorp looks like as of October 2022. I'm gonna try to see things through the lens of our clients. Then I'm gonna try to kind of reverse that and see, all right, assuming that is correct, what is then SimCorp's decisions on the back of that? How do we take on the industry challenges? How do we ultimately invest on the back of that? Then I'm gonna finish a little bit of a talk about what do we believe as a company, what's our purpose. Let's get started by reflecting a little bit on what SimCorp is as of October 2022. What I spend a lot of time on is ultimately ensuring that everybody, employees, clients, investors, understand that we are a technology company. A software company, that's what we do well. Everything we wanna do is centered around that fundamental fact. We believe we can already claim that we are the tech backbone of the industry. We're gonna talk a lot about numbers and why we believe we can claim that. It's very important for me to say we're not trying to make the entire company into a consulting company or whatever could be the idea you would get when you listen to us. Software is what we do. That's what we're good at. We can use that for multiple purposes, and that's really what the entire idea is about. I, you know, I like to brag a little bit from time to time about SimCorp. I think it's a fantastic company. In the end, that's also why I decided to join the company. Whether we can refer to ourselves as a giant, we certainly want to do that. The independence and the fact of our actual size as a company, we actually do believe that we can play a role that only very few other companies can play. A few stats on that. We now operate across 26 offices. I would say the last couple of years, we took the final step from being an international company headquartered in Copenhagen to now be truly international. Yes, there's still quite a lot of people working out of Copenhagen, but we're drastically pushing that balance to be basically represented in every part of the world so we can play the global game because the industry we serve is a global industry. We have more than 300 customers. As most of you would know, we play in the upper end of the market. We can discuss whether we draw the line at 10 or 15 or 20. We will have some updated numbers on the addressable market and the size of it later in the presentation. Oliver will explain how we got to that number. Currently, we have 300. That's the starting point, and that's obviously something we're extremely proud of. We believe, in our own view, that we are the industry leading SaaS platform with front-to-back coverage, and we're gonna take some deep dives into specific parts of that value proposition. More than EUR 30 trillion on the platform every day. We think that gives a very good starting point. We're more than 50 years of age, and I also turned 50, so I would say that's a good age to have. You can really elaborate from then. We actually turned another magic number. From a SimCorp point of view, we are now more than 2,000 SimCorp colleagues that every day work passionately for the investment management industry. We're gonna talk a bit about how that spreads and how that works and all of that, those kind of things. Sometimes when you wanna do a transformation, it's good to feel confident that the company has actually done that before. We started to talk in our investor communication as a SaaS company around 2020, so roughly two years ago. Before that, people that had followed SimCorp for many years, you would know that we've gone through some relatively fundamental transformations over the years. I'm not gonna bore you with all those details, but it's just to say it's not the first time that SimCorp is transforming through the first 50 years of our lifetime, and it's certainly not gonna be the last time either. We worked a lot with numbers in terms of how do we ultimately measure and how do we define that we are a SaaS company? We're gonna talk about a lot about new metrics throughout the day. Certainly in Michael's presentation in the end, we're gonna introduce how we intend to communicate going forward. Here's just a few numbers that we actually think is important when we think about ourselves as a SaaS company. Close to 40% of our clients are now on subscription. We are gonna talk about conversions later. I know it's something we quite often discuss, that you can roughly then calculate how much is not on subscription. We are kind of plus 10% ARR growth, around 55% of our revenue is recurring. We have more than 50 clients on SaaS. Georg will take us through what does that look like, what's the evolution of SaaS. Then a new number that we've been discussing quite a few times, you know, could be interesting to see what that number is. Around EUR 200 million is signed, but not yet recognized SaaS revenue. That corresponds to around EUR 40 million in annual recurring revenue, which is somewhat a function of the way we currently report ARR and the amount of deals we do that do the transition towards SaaS, but hasn't yet reached the top line in terms of bookings point of view. We did 5 SaaS migration in 2021. We're gonna talk a little bit about our ambitions for 2022, 2023, how fast will it go. Then 75% of SaaS bookings in 2021 was SaaS. The last number is really that we talked about many, many times. Most new customers that are coming in take the SaaS model, and it's really only central banks, I would say, sometimes institutions in France, but otherwise the rest is more or less going to SaaS straight ahead. That was kind of to warm up the voice, get a kind of fly-in to what's going on. Let's shift a little bit of a focus to try and understand what's going on in the heads of our customers. There's a couple of key trends that we believe is extremely important to understand. It's obviously some thoughts that have been created over the last 2 to 3 years. The last 6 months, the whole kind of macro environment, the volatility in the market, in our view, has even more amplified that view. The first one is people need complete solutions. There's a lot of complexity going on. The more holistic you can look at your investment strategy, the better it is. It's also clear, and let's see how the whole thing goes on, but, you know, through the years of low yield, there's a lot of innovation going on. The private markets, now the bonds are coming back, and there's actually some yield in some parts of the world. How does this whole thing play around? That means that a lot of our customers are asking, for large, you know, shorter time to market in terms of how do they do new things. At the same time, they can't afford to do new things without getting the scale effect after that. I think that's a discussion we have very often and a very important part of what we do. Whether we see this through SimCorp lens or I don't know, but we can certainly feel there's more and more conversation about this one investment truth that has been the DNA of SimCorp for many, many years, is becoming more and more important, which is obviously something we're extremely happy about. I think the new kid on the block for us at least, and what I mean for us is the fact that we're involved in that conversation, is that more and more customers want SimCorp to take a larger and larger role in running the operations of the investment managers. That obviously is something we need to think very smartly about. How do we do that? Back to the fact that we are taking a service company, how do we use our technology to ultimately map that demand? That's something that Jackie is gonna go a little bit deep on as well. If you take those four trends and multiply with many other things going on, more data, more technology, more regulatory demands, more security, inflationary pressure, and all of these things, you know, the world of our customers is just getting more and more complex every day. Now you even have a situation for the first time in a very long time where EU AUMs are going down a little bit. There's still inflow, but obviously the value of the underlying portfolio is under severe pressure from the market turmoil that we see. For the first time in many years, you actually have declining AUMs at some parts of our customer base. If we take a step back and try to interpret that into what I would say has been the traditional world for SimCorp for quite a while, it was very much a conversation about these three things. First and foremost, mostly on-premise software. Outsourcing was typically a BPO thing, and BPO, with what we mean by that is a people-intensive or labor arbitrage, you can always call it what you will. It was typically asset services or large consulting firms with large footprint in low-cost areas that was taking that work. There was an endless discussion about should I go best of breed and stitch something together, or should I go with a platform that kind of build a strong underlying part to what I wanna do. That has changed to obviously software as a service. We all know that. I don't have to reveal that. The two next parts is quite important. Outsourcing, I think most people went through it, and it didn't really solve all the problems. It probably lowered the cost for a while, but then you got back to realizing that it was limiting your development of your business. The fact that you can now speak to technology providers like us to try and solve that and get access to new functionality is kind of what we believe is quite essential for the development of our future. Then the third one is where, and this is obviously something that we are trying to attack through many angles that we're also gonna talk about today, is people want that platform. They want the one investment truth so they can operate their firm, but they wanna be able to access new innovation or new technology. If we can play that role, allowing them to do that because we are the platform, then I think we're actually serving the industry in the way that they need. In the end, if we kind of try to sum it up, we see the winners in the market being characterized as three things. Flexible and scalable operating model. They can do the different things to the different parts of the organization. Front to back operations that are synchronized, goes without saying. The access to innovation and the broader financial ecosystem, we believe is very important. We can see a lot of the companies we believe are taking market share have especially used technology to lift that game. One consolidated book of records is still essential for what we believe. You could argue the last one is obviously partly seen through a SimCorp lens, but we think it's being proved over and over again that that's the right approach to take. That was a really kind of fast pace through multiple conversations with new prospects and clients throughout almost the last three or four years that made us end there. Obviously, the essence and the key part for this conversation today is what does that mean to SimCorp? Let me try to guide you through that a little bit. I sometimes get met with the question, you know, isn't SimCorp changing everything or what's going on here? What I'm gonna try to take you through now is that, yes, the delivery model, the type of relationship we have with the customer is changing quite a bit, but it's the same fundamental value proposition in the same part of the market. This is also something we spend quite a lot of time talking about inside SimCorp because obviously, new colleagues all the time, what are we trying to do here? The fact that we built up that relationship with that part of the industry for the last many, many years is a very important starting point. Yes, it's a different type of conversation, but that's actually the starting point. We're gonna talk about the addressable market and the size, but it's what you've seen before. If you know SimCorp, we play in the upper end of the market. We play across all types of investment managers, whether it's asset managers, asset owner, the asset service, doesn't really matter. Typically tier three, but obviously how is that defined? As I said, around EUR 10 billion and above is where we play. Sometimes somebody has EUR 5 billion, and then they have an ambition, and then we obviously play with that as well. That's ultimately a global play. What you see underneath there is a graphical indication that that has actually been the same for quite a long time. The next one is changing a little bit. How does SimCorp win? Because in the end, that's what it's all about. The front to back value proposition is here to stay. We will continue to enhance and invest in that as we go. We start to see a few new kids on the block in terms of how do we win. Here, the business process as a service and the SaaS delivery model is becoming more and more an integrated part of our value proposition. The efficiency and the optionality related to that, whether it's the delivery model or whether it's the interaction with the other technology, is quite an essential part of that and something that is quite new. In the end, I think given what we're ultimately asking the industry to give more responsibility to SimCorp, the client experience becomes an even more important part of what we need to do. That's also why we did what we did under Georg's responsibility to ultimately connect the people that are onboarding the customer with the people that are running it afterwards. Because the last thing you want as a customer is those things are falling between chairs, which to be perfectly honest, if we go a little bit back, things did, too. That is a very important part. To the part that I think is new, and that's somewhat linked to the type of business that we are then ending up owning. We now have a global delivery model. We consolidated all our implementation consulting under one leadership under Georg. That means that no matter where you're implementing SimCorp, you're doing it through the same methodology, the same standards, and the same kind of entire framework for doing these things. Whereas before, it was a little bit dependent on where in the world you were actually implementing, which is obviously an essential part of creating scale. We're enhancing our strategic partnerships. We're gonna go through what that look like and also a bit how we intend to commercialize those partnerships. Standardization, automation needs to be where we start with everything we do. That hasn't been the case historically. We need to leverage cloud and new tech much more than what we do. That journey actually started years ago. Finally, we do intend to continue to find attractive targets for acquisitions, and we're gonna take you a little bit through what could that be, what could that look like, and give you a bit of a flavor of what that looks like. SimCorp and, you know, when I dream, and I do that from time to time, also about other things in SimCorp, but when I think, dream about SimCorp, I dream about being that platform for the industry. Everybody's using SimCorp in some shape or form, but it can be in different flavors, and it can be in different combinations with other technologies. That's really the starting point. We believe that's where the industry is going. We believe in the end, there will be a few players that are capable of playing in the battle of ecosystems. That's a mindset thing, it's a technology thing, but it's also a navigation thing in how you ultimately commercialize that ecosystem set up. If we look at it in that and through that lens and then start to map out the competitive landscape for SimCorp. The starting point for us is obviously the coverage and the front to back capability we have. The IBOR, ABOR capabilities. The fact that we have multiple consumption models that can be combined, so the optionality. The open technology that we are enhancing as part of all the investments we do in the underlying platform. The partner ecosystem we have built up and continue to grow. Then finally, some of the new distribution capabilities that we're doing that Oliver will also take you through. I believe that's new SimCorp, I have to say. The underlying technology and the value proposition of what we do, but playing at this game, that is a new SimCorp. I think we're gonna kick ass, to be perfectly honest. Sorry for using a phrase like that. If you try to put that into the context, we obviously have competitors and they change from time to time. In an attractive market like where we play, there will always be competitors. Some of them are trying to become more open, and I think we are ahead of the pack, both from a cultural point of view, but also from a technology point of view. Other obviously starts with a very narrow slice of what they can do or very narrow footprint in the market, and they try to move towards becoming the full front to back platform in the other end of the market. We believe we're there, and we believe we can argue that we're there, but that's kind of how we try to navigate in that entire ecosystem. I assume we can have many debates on where you see our competitors in that particular system. That's certainly how we see ourselves, and you probably would say it would be strange if it wasn't like that. A little bit on the delivery model. We're gonna talk a lot about that today. Without revealing too much, we know that we are confusing the hell out of people because we like to move. use abbreviations, we like to use different technical terminology about the same things and all of that stuff. We really worked hard to make it extremely simple to understand, but from time to time, it probably will slip, and then we will try to correct. This is ultimately what we're talking about. There's an underlying platform that has all the capabilities we just talked about. There's a SaaS platform. Georg will take us through a few variations on the theme because the journey for our existing customers is a little bit depending on what they do. All new customers go straight onto SaaS. We will try to share that granularity with you. BPaaS, which in SimCorp's world means business process as a service. We do believe it's a term that is starting to be recognized in the industry, but we also know that it can be called anything under the sun. What we're gonna try to do through Jackie's presentation is explain exactly what it is for SimCorp. Hopefully we'll succeed, but let's try and see that. All right. We know we have a lot of on-prem customers. We know we have a lot of things going on, right? Let's try to focus on what does SaaS mean? What does the journey look like for SimCorp through that lens? All right. There's multiple ways for SimCorp to basically deliver to our customers. Ultimately, there's many ways they can consume that. The absolute key power of SimCorp is that we can continue to do that because the technology is where it is. There's two things that made me join SimCorp in the first place, and I think I spoke to most about it, the fact that all customers are on the same version, and the fact that customers cannot go in and change the code. Many of our competitors do not have that, and then they need to reimplement their customers. In our case, that is not what we need to do. We actually have a lot of freedom in that space. In the end, hopefully everybody will be at least on SaaS, and then we can stop doing the on-prem, but the marginal cost of continuing to do our on-prem is very low, and we're gonna talk about that from different angles. First and foremost, on-premise, we know that the value proposition of the software reduced operational and cost and risk by just implementing the platform. We've done that for 50 years or at least quite many years. We now couple that with SaaS. You're moving CapEx to OpEx. You improve scalability. You have the access to the elasticity the cloud provides to you, and you can further reduce your operational cost and risk through that. You can add BPaaS to the top of it, where you ultimately start to take shares or slices of functionality or business processes that you need to do, use our software and technology capabilities to ultimately give additional scaling to that. It's really that kind of menu that we speak to all our customers around at the moment, try to map it to their operating model discussions and try and to find their path through this. That has a few consequences on the economic engine of SimCorp. Now we're getting to some of the important parts of the conversation, because that's obviously where it starts to hit the investment case and the investor case for SimCorp. If we kinda remember, we're looking through a lens of SaaS at this moment. From a business generation, we believe that what we're doing right now increases our competitiveness because it ultimately lowers the TCO of the company that we're pitching to, both in terms of the resources they need internally, but also what they need to pay to us to get it up and running. We are quite firm on the fact that we continue to push into the existing addressable market that we have. Many of you would wonder, well, if you can do that, you must be able to go further down the market. From a pure discipline point of view, because there's enough business to be done in our current addressable market, we're not doing that. Potentially at some point, it will allow us to do that, and then we'll obviously do it. It's important to say there's a level of discipline inside the company that we continue to drive here. The next one is the share wallet. You're gonna hear this number over and over again. We believe we are now at a point where we've done it enough time to be able to say that is the number. There will sometimes be weird things going on, and then it's not the number, but in general, that's what we see. Moving to cloud is a 2-3x ARR uptick from a traditional software payment model or recurring model, if you will. That's obviously a sizable number if you take into account the effect how many customers that haven't moved to SaaS with us at the moment. It's not interesting to talk about a SaaS transformation without talking about profitability as well, and I'm sure the audience would agree to that. Delivery costs is an area that we talked a lot about through the years. We believe we are now at a maturity point where it starts to have real effects. What that means is that an overall, revenue point of view from our customers to us, the share of traditional professional services will go down. Does it go down absolute? That is something we can debate in length, but we will put a few pointers to what we think about that in the context of overall margin contribution. In the end, up and running faster, smaller projects. The big debate is if all the existing customer needs help and they're willing to pay premium for that, isn't that a good idea for SimCorp? We believe it is. How do you balance that against the overall professional services number is a good conversation to have. Higher average pricing, and here's the scalability effect of what Georg is doing with his team, is ultimately, in the end, what we believe once we do that, actually would relieve more money for the software component of what we do. I think that's also an important part once you start to talk about gross margins and many other things. In the end, this is obviously one of the first kind of key points of the day. We believe that the shifting business mix and margin profiles over time, in the end, will transform the overall P&L of the company. We're gonna attack this from many different angles, and then obviously, when Michael goes through it in the end, we will go a little bit into detail on how we arrive on that. Let me just put a few notes to that, already now. From a top-line point of view, it's obvious that there's a significant per-client revenue expansion via the SaaS and BPaaS transformation. Through the scalability, through the automation, through our location strategy, i.e., where we hire people, we believe we can do that with an increased margin from the starting point. The reducing share professional services, plus the fact that we actually believe we can be, have a better margin profile on professional services over time by using standardization and automation, is another positive effect. Obviously, to go against that, you will see a reducing level relative from an on-prem traditional licenses. Obviously, that is driven by the SaaS adoption. All of these effects together, based on the way we look at it, will mean that the gross margins will be rebounding over time. You can obviously debate endlessly what "over time" means. It has a key link to how fast the existing customer base wants to move from on-prem to SaaS. The faster they move, the deeper the valley will be because we would need to push investments into that system to get them over. Ultimately, the faster you would also get towards an interesting profile after that. That's our assumption, and we will spend the day going through that in a relatively large amount of detail. Finally, that's somewhat new in the context of SimCorp. We're now at a size and a complexity of a firm. Unless we focus on also improving the operating leverage of the company, i.e., to be cheaper and cheaper in our run, then it's not gonna be, then we're not doing the right thing for ourselves, and we're certainly not doing the right things for our investors as well. Cost management, location strategy, and many other proper good things that you do as a company, you will start to see and hear more about that. All right. Let's shift a little bit. How do we think about investments, and how do we think about revenue? This is now the first time you're gonna see a new number, which is the total addressable market. We've had the, some numbers, for quite a long time. We felt it was prudent, and I certainly also felt that it was needed. Coming in as a new CEO, what's kind of, what's the benchmark? How do we track ourselves? What does the opportunity look like? There's a couple of new numbers here. There's first the size of the market, which is new, but it's also, as far as I believe, at least the first time in a long time that we put a euro amount on the value of that addressable market. You can most likely, or we can discuss endlessly, is that a scientific number? No, it's not. But there's a relatively detailed bottom-up analysis lying behind this. We know line by line who are we actually talking about. The current footprint without Sofia is roughly 275. Don't take it as a kind of actual science. It's roughly 275. Obviously, when we do Q3, we're gonna update, you know, make sure you do the right benchmark. When we then look at the market, so the core coverage plus what we would call new frontier, which is basically driven through the enhancements we are doing to the value proposition without going deeper in the market, then we get to 1,825, including the 275. That's the number we from now on will be reporting on, going forward. It's somewhat an uptick to the current number, that we've been reporting on, for quite a while. But this is what we believe is the reality for SimCorp as of October 2022. We have calculated a EUR 6.5 billion revenue opportunity on the back of that. Then you can debate, is that accessible right here, right now? No, of course it's not. It is out there, and something that in the end, if we can take a bigger slice of that by investing in certain different parts, that's the benchmark, and that's the way we will calculate return on investment in that context. That's important. You're gonna see this in many different slices throughout the day when we go through the different markets and the different opportunities, but this is the new benchmark for us, and hopefully also for you. I would be remiss if I didn't address North America as part of what we're talking about. I've certainly been answering many, many questions about at what point we get to what we promised years ago. I think today what you're gonna hear is how do we attack that market, how do we see the value of that market, and ultimately, what do we kind of hope to see coming out of that market later. You're not gonna hear us talking about number of deals. We believe that is less important going forward as the value of the deals has a different profile with the ARR number as being the driving one, and we're obviously gonna talk about that. Why North America? Let's get through a little bit what we believe the value of North America is, and why we believe it's still a very, very important and significant market for SimCorp going forward. North America has been the front runner in SaaS. They're now also the front runner in BPaaS. We had our first face-to-face customer conference in Austin, Texas, two or three weeks ago. We've been more or less on the road the last six months constantly because all the markets are open. Roughly two weeks ago, 130 customers face to face for the first time in three years, it was all about operating model. It was all about how they could combine the front to back value proposition from SimCorp with BPaaS capabilities. If you look for kind of a benchmark case, look at the press release we did on StonePine. That's a very good indication of how that market looks at things. We did a recount, and I think I talked about that in one of the previous quarters, of the North American TAM. It's a little bit north of 700, which is another 150 compared to before. As I talked about at that point, the reason for that is a lot of new firms has crossed the line. We haven't done a recount post the macro environment, so maybe a few ones have fallen below again. Certainly we believe that the market is intact, whether it's 550 or 700, doesn't really matter. It's a huge opportunity for SimCorp. It's actually 45% of the addressable market. And we already have a good stronghold, especially in the pension, in the middle to back office value proposition. We now have 64 customers in North America. I think that's actually not a bad number. It's a good place to start. It's actually 55% as managers. Funny enough, sometimes you get a new view on yourself when you do these numbers. Only 27% is on SaaS, so also in North America, there's an interesting opportunity, going into that, and there's ultimately growth going on in every segment. Net-net, it's an important market and, something that we have to do even more to capture. How does that look like in the context of what I wanna do? You probably get the gist now. SimCorp is, I almost tempted to say now a grown-up teenager, right? We kind of, we know how to do things. We have scale in many areas. We need to start to think more globally than we ever did, but still remain with a high level of proximity to our customers. That's really ultimately what Oliver is doing with the rest of the team and the local MDs to ultimately get that. That also means it's easier for us to channel capacity to where there's a return. Whereas before it was really much whoever was on the ground in North America kind of had to figure it out by themselves. That's changing, and that's certainly pumping a lot of energy and a lot of capacity into that. We need to continue to invest in the product. You will hear later today that we are quite confident that the value proposition can do some really good for us now. Does the investment stop there? No. They should never do in a platform world we do. We actually believe we come to a certain level in those capabilities over the last 3-4 years as we've been discussing this. It's also clear, let's be honest, the brand recognition, our two biggest competitors are American. Some of them has a very superior brand, and the other one has a, also a superior brand, but probably a little less. Then we have little Danish SimCorp trying to make it in the big league with something, you know. We are coming from a very strong point. That's why I say we are an independent giant. We need to play that game, and we need to invest much more money into brand positioning and strength, particularly in North America. And that's obviously some money that we need to sometimes reallocate as part of that. We also said that part of being making it in the U.S. is that you need to have American people as part of senior leadership. We actually started deliberately to hire global roles to operate and sit in North America. The global head of operations reporting to Georg Hetrodt sits in New York. We just hired a new person to lead all our front office development. He sits in the U.S. and so on and so forth. We're building up a management team that now have more gravitas in the North American part of the world, which I think from a cultural point of view is also important and also from a customer's point of view. They can actually meet a senior executive from SimCorp much more frequent instead of I travel there every four to five weeks, right? I think that's important. Then corporate development, and what we mean by that is there anything we can do to everything I just said through targeted M&A that ultimately take us from this level to the next level in terms of capabilities and footprint in North America? My belief is, yes, we can certainly do that, and we are currently working on that. North America is important. We're gonna talk a lot about it during the day. Now, maybe I'm stating the obvious, but let me quickly take you through a little bit on what does the engine look like towards 2025. The first statement I wanna make is ARR growth is expected to be higher than revenue growth, and revenue growth is expected to be in line with the current equity story, i.e., double-digit growth. People say, "All right, yeah, of course, if you're driving a SaaS transformation, that has to be the case." It's important for me that you understand that's also how we actually do see it. How do we drive growth? New clients, continued upsell into our existing client base, the cloud transformation, and then still have extremely high retention rate in what we do. We're gonna go through each of the regions and give you a status on most of these things in the afternoon, including how does the situation look like vis-à-vis new names, and also are there any super cool strategic deals that are actually moving in the right direction. So you get a feel for it. It's not just a pie in the sky in 2025. There's actually real execution going on behind that. If you look at that kind of looks fits into four areas of investments that we're looking at inside SimCorp. How do we strengthen the platform leadership? Let me take you through what we mean by that. How do we facilitate the SaaS acceleration, driven by our customers? How do we cater for that, strategically? What does the ecosystem scaling look like? Finally, what do we mean when we say that we have appetite for acquisitions? I don't, you know, we're gonna spend a lot of time that there's not a lot that has changed here. It's a continued focus on making sure our functionality is capable of doing what it is, but it's now even more fitted into the operating model discussion than it has ever been. That requires front office investment and alternative and ESG, workflow automation, and all the good stuff that both Jackie and Zoe will take you through in greater detail. Not a lot has changed there. That also means as an underlying technology investments that we continue to do and all of these good things. You will see a lot of good stuff there. Sorry. The SaaS acceleration needs to be competitive and profitable, and here there's a balance act is ultimately this is demand-driven. How fast does the industry, i.e., our existing customers on-prem, want to move? That's you know, in the end, I can dream all I want. I'm not gonna turn up in AXA and force them to go on cloud unless they want to. You need to have that kind of planning horizon going into it. It's big, and it's happening, and we are building capabilities and confidence in that space. The BPaaS part is obviously important. In the end, given the fact that we have now more than 50 SaaS customers, how do we build scale into that? How do we use automation to make it even more attractive, both to us, but also to our customers? The ecosystem scaling has a couple of different elements. We're gonna look at many details throughout the day. There's the kind of the light touch in integrating to fintech partnerships. There's extending the offerings through the partnerships, the JVs that we did with Challenger, that we talked a bit about, that we're also gonna talk about today. In the end, there's also making sure that this is ultimately our responsibility is to make sure that our customers interact with the rest of the world, whether it's custodians or as a servicers, in the easiest possible way. That's what we mean when we say interoperability in the financial ecosystem. To the acquisition statement. There's currently four ways we look at that. The first one is, can we do another reporting acquisition? Can we do another data management acquisition that ultimately enhances the overall value proposition and potentially drive more Dimension sales? Yes. I think, and you can gonna see that in the value proposition. Those particular two acquisitions is now a fully integrated part of every value proposition we do and has in essence enhanced the capabilities of what SimCorp can do. Good acquisitions. If we can do more of them and actually get things at a decent price, why not? The fintech partnerships that we built, and there's a couple of examples that we're also gonna talk about during today. We've done two minority investments, one into a company called Alkymi that does AI for the private markets. We've done a minority investments into Domus, which is another private market. Actually, the whole ecosystem around private market is quite interesting. There's a lot going on there. But the whole thing only has value because we build the native capabilities inside SimCorp Dimension. Otherwise, there's no value because otherwise you're then stitching stuff together, and some of our competitors has not been successful in doing that. Can we accelerate our BPaaS journey? Maybe even from a geographical point of view, that's the last two points. That would be interesting. Could that be a lift out? Could it be another JV? We don't know. It's certainly an area where we see, all right, we have the capabilities, we have the technology, so it's ultimately it's scalability and geographical reach, which is the underlying point. It's really how. That's how we group things. A lot of the things we will have more detailed conversations about during today. I kinda wanna link it into the growth engine and the ARR growth that we just talked about so you understand how we ultimately plan investments from a little bit of a 30,000 feet perspective. Finally, which is also important, you know, what does SimCorp actually believe in? Why do we make it worthwhile for people to work in SimCorp? That's something, once again, I say we're now a grown-up teenager. Part of being a company, part of changing the culture, part of attracting employees is actually operate as a company that you actually wanna work for. In how we have this interesting connection between the fact that we are serving the investment management industry, which ultimately is the wealth of all of us, so that's actually deep, especially now that we're taking a SaaS responsibility, where you can almost say that parts of the sector cannot operate unless SimCorp is operating. We feel that, and people feel that. That's the purpose, and it's important for people. We also have that additional twist or not twist, but sustainability and ESG is now becoming a very important part of our everyday life. Whenever we need to fill in an RFP, we have to go through in detail how SimCorp looks at sustainability. The fact that we're also supporting the investment management industry in investing in sustainability products is a nice link. Obviously, as a company, we also need to have a view on what is SimCorp doing ultimately to make the world better to live in. Here, replacing on-prem software and moving on to green clouds is a very important part. It's actually something we need to start to report on, which is not super easy because you are taking away CO2 consumption from a customer, and then in the end, SimCorp actually ends up burning more CO2 because we have the contractual relationship with them. How do you kind of link those two things for people that are interested in ESG reporting? Obviously, we're a global company. If you only really can become a senior manager in SimCorp if you're Danish, white, and above 50, then we have a problem. It's not gonna be an interesting company to work in. It's something we are doing a lot about. We're doing it obviously from a gender point of view, but we're certainly also doing it from a cultural and religion and any other point of view. I can't remember, but I think it's more than 60 nationalities that is working for SimCorp already, and it's absolutely important for me that everybody feels empowered to do what they really wanna do. Finally, and this is something that, it's, for me, is a low-hanging fruit, we are actually doing some pretty cool things in what we call green coding at the moment. How do you code ultimately to make the least use of capacity? For me, it's a no-brainer because it makes it cheaper to run, it makes it cheaper to build, it makes it cheaper from a SaaS point of view, but it also make the world a slightly better place to be. With those words, that was my introduction to kind of get the whole thing started. I certainly hope you feel that there's a lot going on. It's high energy, good team, good customers, and just super exciting times. As I promised, between every session, there will be a little bit of a Q&A. If anybody has a kind of something immediate that you don't understand, then I'm happy to answer it on the fly. Is that the case? Anybody have anything you wanna kind of ask about already now or? Yeah? One quick one. You mentioned the brand, the need to elevate your brand in the US. I know you wanna be quite vague about numbers, but can you just tell us as you insist on how expensive that's gonna be? The question is, and I have to repeat the questions, for the live stream. The question is, what's the magnitude of investment we have to do on the brand exercise, as a whole? Yes, I'm gonna be relatively vague on that, but it's not an additional investment. It's basically a prioritization matter for us to spend the money where there's a return. I'm not gonna come out and say, "Now there's another percentage margin point that is required for building a brand in North America," which is, I guess, the real question. Yeah? Could you walk us through some of the building blocks for the EUR 6.5 billion? Yeah. That we will go through slice by slice, later today. Certainly, yes. Paul? I know you've been doing this forever in building the product, but the transition to having a product where you say you're fully in place for the SaaS cloud, BPaaS. When do you believe you are where you have the full product? How many additional investments do you have to spend additional this year when you have the specialized? How much are you gonna invest before you are there? I think there is, for me, there's a couple of different parts to that question, right? The product is already running SaaS now. The rest of the investment case is linked to kind of how do we optimize ultimately for our own benefit? That's. We will probably always have good ideas, but it's a return on investment we need to do. The special investment we highlighted this year was actually to build the capacity to run the SaaS. It's not necessarily linked to the technology as such. Then for BPaaS and features and functions, I would say it has to be a return on investment discussion from now on. Is there a good idea in investing into this or not? We're gonna stop talking about R&D as a percentage of revenue as we go through SaaS because it's not gonna be super meaningful anymore. I think in the end, if we do a bit above normal investments, we would have to justify to the board and ultimately to the investors that there's a good return on that. I think, you know, as long as there's scalability benefits or functional benefits, we will continue, but we will be, I think, probably a little bit more outspoken about it. You know, when is the complete cloud transformation done? I don't think we have a timeline on that, Paul. The second one, that's more definitions. Yeah. When you count customers, then in my view, you have to count Dimension and then others. If you have 64 in the US, I would assume it's about 30 Dimension or plus minus. Yeah, we have a breakdown on that. I think the numbers I gave you are unique SimCorp customers. If they have more than one product, they only count one. Yeah. I agree with that. Yeah. The market you're going for is Dimension. I guess it's more difficult to sign Dimension into a highway of data because there's so much processing. I agree. Yeah. So- The customer base in North America is, what is that? 60/40 between Coric and which is the reporting tool and Dimension. That's correct. The data customers we have are also Dimension customers, so they only count one. I'm sorry for bringing that to you. Yeah. I'm just thinking, when you talk about number of clients, I would like to have the pure clients plus. Yeah. We are actually quite successful in selling reporting on its own. I know from a numbers point of view, obviously, it's Dimension that everybody's interested in. Understand the question. Yeah. You said just now that R&D to sales becomes an increasingly meaningless ratio, and its movements are fast. How do you think about what the adequate level of R&D spend is for your business, and how should we think about it, looking at it from the outside if R&D sales is no longer relevant? The question is, what's the adequate investment in R&D? For me, there's always a, when you have enterprise software, there's a keep the lights on element, which is ultimately the starting point, which in SimCorp is relatively low. Then there is making sure that more than 300 customers are happy about their functionality and can do what they want, which is a relatively big number. Then there's the net investments that you need to put on that. I can only say if you invest more money, then you need to create more growth long term. That's the balance, right? As long as there is that opportunity, we will continue to do it. That's unfortunately the relatively weak answer that I can give you. Yeah. Klaus? Yeah. Klaus Hammer from Nordea. You said that you would more look at the value rather than the number of new clients. Going back to 2018 CMD and probably also the former- Yeah ... CMDs, the target was to add at least 10 US Dimension clients per year. Yeah. That's four years ago. We should have had 40+. As Paul said, you probably only have 30 total now. Is the way of wording on value rather than clients more a function of you are unable to really attract new clients? How should we think about this very important change of wording? Yeah, no, but we're obviously gonna announce whenever we do customers. To sit and benchmark our performance consistently on the fact whether we win one or two every quarter, I don't think is the right way. As long as we meet our growth trajectories and we grow through whatever channel we grow and consistently win new customers, I think that's a good result. The question was more like, is it really that difficult to get new clients? No You're more looking at existing client base? No, no. It's not. I think we're gonna go through each of the markets and state what we think about that. To put a number out there in a relatively volatile world where you're benchmarking yourself on a 12-month lock period, I think just drives the wrong conversation. That's why I relatively hard am insisting on talking the other way around. I'm happy to answer all questions, but I think maybe we should progress a little bit with the program, and then I'm sure the questions will be touched from many angles. Otherwise, I think the time plan will stretch a bit. As I said, we are here the full day, and I'm certain I will answer every single question during the day. Over to you, Oliver, to take us into the sales side, which seems to be driving a lot of interest. Thanks, Christian. Good morning, everyone. My name's Oliver Johnson. I'm the Chief Commercial Officer for SimCorp. I've been with the firm for going on six years now, and the first five years of that was spent out of Singapore running our Asian operations. I relocated to Copenhagen, as Christian said. Today I'm gonna be covering two different presentations. This one is going to set us up talking about what the market opportunity is, why we think SimCorp's relevant to capture that market opportunity, and then how we're going to market. The session this afternoon is going to go into a deep dive on every different region. We're gonna look in details at North America, at Europe, and also at APAC. As I said, what I'm gonna take you through now, we're gonna start by looking at the addressable market. You've noticed that has increased since the last time we've spoken. I'm gonna talk about value proposition and some of the challenges that we are solving at our customer base. Lastly, as I said, how we go to market and how we capture some of that growth. Let's start off with the addressable market. This is the number, the difference on Christian's slide between the 275 and the 1,825. As Christian said, we've kind of relooked at that and quantified. This 1,550 is essentially coming up from all players that are in the institutional buy side space with a size over 10 billion. Now, it must be said that we also take a subjective look at this. We look at all of the different lists, and our folks in the different regions, they move people in and out. For example, in APAC, maybe there are some people in our addressable market that are a little bit less than EUR 10 billion. That's our best view of what that new potential is out there on top of our existing base. How we think about that, we basically break that down into these three major buckets. Why do we do that? That's ultimately because the challenges that firms in this space are seeing very differently depending which bucket they sit in. It's also fair to say there's a different competitive landscape in each one of these buckets. We actually break asset owners down a little bit more. You can see here that that's broken down for us between pension, insurance, and central banks and sovereign wealth funds. It's just important here, again, these percentages is pure volume. It's the number of accounts, not necessarily the revenue opportunity that they represent. Finally, and as I said, I will speak a little bit later this afternoon of how we see that in every different market. You can see here North America representing the largest opportunity from a volume perspective. Christian spoke about some macro trends. What I wanted to do is to think about what that's driving and the type of challenges that firms in that 15-50 are kind of experiencing. And I'm not gonna repeat all of Christian's points, but whether that's regulatory concerns, whether that's fee pressures, that's ultimately driving a lot of people, whether you're an asset owner or an asset manager, to really look at your operating model. We see firms going to more complex asset classes. That's driving a higher cost to operate, which is making them again kind of look at their operating model and really think about which parts of that do we want to operate ourselves. How do I think then if I'm a firm in that 15-50 about the tech stack that's gonna support my business? I want to spend just a little bit of time here. What we've tried to do here is just highlight the kind of major building blocks of a typical operating model of any of our potential customers that sit in that 15-50. That ranges from everything here on the left, from data management, so where do I get my prices? Where do I get my static data? How do I look after that? Through to how do I make investment decisions. Obviously, all the whole risk and compliance area, all the way through to then the operations, the accounting, and the reporting. This is kind of if we think about the whole value chain here. All of the firms in our TAM have to capture this and manage this in some kind of way. What we see is the kind of four different ways in the markets that firms are thinking about this. I'm just gonna walk through these one by one. At the top here, this is front to back in-house. This is a single tech platform that's covering all elements of that value chain that the firm decides to operate themselves. We see this option here as generating the most interesting cost income ratios. The downside of that is you need to be a certain size, a certain scale, and have a certain investment horizon and appetite to be able to go for that. Because typically, you're looking at fairly large transformation, getting what could be many different disparate systems all into one place on one core backbone. For that reason, we see many firms not necessarily having the skills or the appetite or the investment to go for that model. They look at the second option here. This second option is where they think about a front office tech stack, and then they work with asset services and outsourcing providers to look after the middle and the back office. This model isn't as efficient as the top one because you're starting to move data. You're moving data between your in-house platforms, your external platforms, and then you create this kind of hidden overlay of cost where you have to create the governance between between the different parties. The third model here, it's going back to that front to back value chain, so putting everything in one platform, but then getting parts of that platform operated by different parties. For us, we see that as a kind of best of both worlds because you get your data in one place, but you're still able to take advantage of the operating leverage from working with an outsourcing provider that can potentially provide cheaper labor to and smarter ways of operating that. Finally, the other model that we see in the market is the best of breed. Now, this is kind of morphing a little bit. We've seen that move over the last few years. This is essentially where you go for a different platform for every different part of the value chain. You then invest in integration, and you pump data between all the different systems to try to get the end result. Given that these are the four different operating models that we see in the market, we thought it could be interesting to share how we see that today in terms of market share, where we see that evolving to, and the type of growth potential that we see for vendors selling into each one of those different spaces. That's what this slide tries to do. The first one, front to back in-house operations, we believe that that's roughly a third of the market today of participants that go for that operating model, that decide to think that they want a single integrated platform that they run and operate themselves front to back. We also see that evolving a little bit towards the future. Predominantly, that's going to be, in terms of volume, a few of people in that particular segment, we believe are going to want some of that value chain operated by somebody else. We see them moving a little bit down into that third bucket. That being said, we still think there is good potential in here. There's still gonna be deals coming to the market. Obviously, with a SaaS transformation, even in this operating model, clients are expecting vendors to take on a little bit more share of operating the tech stack from a SaaS perspective. We still think that this option here represents a good growth opportunity for anybody selling into that space. The second one, again, that's roughly 1/3 of the market, slightly different tiers. We see a similar trend to the model above in that predominantly, a lot of people go for this model because of the short-term cost savings of outsourcing the back office, and because they don't have the appetite to go for option one. Now that the option three on this slide is going to become more and more apparent, I think you'll see a lot of people in that option two think that it would be more interesting to get the full value of front-to-back platform and still get the scale of outsourcing some of the operations. Again, still some growth opportunity. There will still be firms in the market that go for this operating model, but obviously the big winner here we think is that third option, where firms are able to take advantage of the full capabilities of one system, not moving data anywhere, and then getting parts of that operated by third parties. Lastly, on the best of breed, I think we're going to see a continuation of the trend that we've seen for many years, with a true best of breed really slowing down. I'll just caveat that because I say that sometimes we see firms starting with the best of breed because that's where they've come from, and they use it as a stepping stone to go to one of these other models. Again, there will still be opportunities, people, for example, that want to start with a, let's say, a middle and back office, and then over time, move into the front office. That was kind of how we see the potential market out there, in terms of new customers. What I want to do now is to look from a slightly different lens about what SimCorp's doing for each of one of those different models. Christian spoke about the value of that front-to-back tech platform and then the ability to add SaaS services on top of that, and then BPaaS services on that. I want to talk about it more in the concept of those four different operating model choices that we've just explained. If we go through these one by one and we think about SimCorp's ability in each one of these models, front to back plus in-house operations, this is really where SimCorp wins. We see that when a customer comes to market and they want a true cross-asset front-to-back platform that they want to operate themselves, that's time and again SimCorp has proven that is the model where SimCorp comes out on top. We actually also see less competition in this space, and the competitors that do try to play in there are typically, they've bolted things together, they've made acquisitions, they've put a data lake on top of multiple platforms to try to show that integrated, but when you look beneath the covers, you're still moving data. The real value of that front to back is when you have one database. The data doesn't need to move, and then you don't have any breaks in your chain. The next option, this is probably where we see most of the competition playing. This is focusing on a front office tech stack and then working with the asset servicer. I think the key to winning in this particular segment is the strength of the integration with the different asset services. At SimCorp, you probably know we work with all of the major asset services. I think Jackie is gonna touch a little bit further later on about some of the interesting further investments we're making in that space. For us, that's all about making sure if the customer does decide to go for that operating model, that integration is as seamless as it can be. We have the front-to-back business process as a service. Again, in a similar way to the first model, we think we are uniquely positioned here because of the strength of the underlying platform. Again, we'll have different players in the market claiming this model, but we believe that the real power of this comes when you don't move data between different systems. Finally, best of breed. Again, as I spoke on the previous slide, we really see here SimCorp playing a role in the best of breed space when the customer sees that as a bridge to one variant of sort of a front to back model. In summary, that was about how SimCorp believes we're going to our value proposition for all of those different operating models. I want to spend some time here on the last part of my presentation talking about how SimCorp sets ourselves up, how we go to market to capture some of this opportunity. I'm going to expand on some of these points in the session this afternoon to give it a regional flavor. You saw this slide before. We saw the EUR 6.5 billion. We believe that market's growing roughly 5%. To answer the question we had earlier about how do we get to 6.5, that's essentially all the firms in the market. We believe that each firm comes to market on average once every 10 years for a software platform, and probably every 5 years for the services element. If we overlay that with some sort of average deal sizes, that's how we kind of built the building blocks to get to the 6.5. When we look at this, obviously expanding the growth opportunity at SimCorp, two different axes. We've spoken about the 15-50 here on the bottom, expanding SimCorp's share of market. We believe that we've got the right value proposition to do that, and I'm gonna touch on how we do that with the different distribution channels later. We've also got plenty opportunity to go up the stack in increasing our relationship with our existing customers. Let's just start by focusing on that one. These are numbers from our annual report from 2021. You can see here, I think there was a question earlier about number of SimCorp Dimension customers. This is more than 200 as of last year. You will see in my presentation this afternoon some of the progresses and movements since that point. You can see a strong core of customers here on SimCorp Dimension, with more and more of those taking one of the other offerings, albeit that client communications or data management. When we look at our customers, and spread geographically, obviously, we have a high concentration in Europe. This is where we've grown up. This is where we've built the company. More and more, customers now coming in in North America and in APAC. Again, these are numbers from the 2021 annual report where out of that 64, 37 are using SimCorp Dimension as of the end of last year. When we think of growing with these existing customers, and again, there's two different axes. You can go deeper on the value chain, so and I think SimCorp's proven year after year our ability to generate growth from selling more modules, for selling different functionality to our existing customers. That could be the alternatives module. It could be moving our middle and back-office customers into the front office. Also, as we develop more and more functionalities and more offers, selling those through to the customers. Obviously one of the really interesting drivers of growth is as we go up that service stack, and as Christian said, we believe that the SaaS transformation and moving customers there generates roughly 2-3 times ARR uplift. Christian spoke about the North American user conference in Texas a few weeks ago. We also had one just before the summer in Europe, and I think my takeaway from that was quite interesting. We had many different customers there. We had tons of different breakout sessions, and the cloud and the SaaS transformation sessions were all oversubscribed. We had customers queuing up to try to get in there. It's a very clear message coming from our customers. It's not if they transition to the cloud, it's really a when. Now, I wanted to spend a few minutes here just talking about how we work with those existing customers, 'cause a few years ago, we actually changed the way that we do that. We've organized ourselves into a customer success team, and we've really spent a lot of time and energy and focus on aligning our customer success people with the outcomes that the customer is trying to achieve. What does that mean? That means that our people go into our customers trying to understand where their business is going, what they're trying to achieve, and then trying to figure out how we at SimCorp can help them meet some of those goals. Now, what that's doing for us is it's obviously aligning us very well with our customers, which results in great renewal rates. It results in great sort of NPS customer satisfaction. One of the other benefits of that is we are starting to really measure now our customers' outcomes, right? With telemetry and with working with our customers. From that, we start to get some really interesting insights. For example, if we just take insurance here, we've found that across all of our customer base, on average, we, when we work with an insurance customer, we increase STP rates by around 75%, which ultimately results in a cost saving somewhere to the customer. We've also seen that we're able to almost half the, well, the reduction of manual processes. Now, when we learn this from our customers, we're then able to better position when we're going out to win new customers. When we go to see a new insurance company, we can show them all the data points that we're tracking from our existing customer base and use that to increase our win rates in that segment. I think that's probably a good transition to speak about how we go out to win those new customers. The first route here is our direct sales team. You should think about our sort of sales and marketing engine as roughly 10% of the company's FTE count. That's distributed across North America, EMEA, and APAC. Our strategy here, as Christian alluded to, is to get our salespeople really in region with proximity to our customers. Now, that is an area that's changing slightly. In the past, as Christian mentioned, we'd expected each region to be self-sufficient in the whole sales and marketing effort, from lead generation all the way through to closing. What we are trying to do now is to change that model a little bit and to really get a scalable engine, so we still have people in region close to the customers, but they're able to bring the best of SimCorp to every different opportunity. We're doing that by organizing ourselves in verticals, really specializing on those different verticals that I started with on the first page. Pension, insurance, asset management. The idea is that the types of conversation our sellers are having with our customers is deeply rooted in the operating model. We're having strategic sort of operating model conversations, transformation conversations. This is not selling CDs. You really need to get that depth into your sales team in order to be successful. There's a few other things here that we are spending our time and investing into. The first one is hyper-targeting. You heard about the 1,550 new accounts. Inside of SimCorp, we actually break that down into different focus areas, and we get really targeted on the customers that we're going after. We've also. I spoke about the strategic business buyer. That's a capability thing where we are lifting the capability of our existing sales team. We're bringing new people in, and we're also lifting up some of the people that we have. Customer experience, I spoke about that. Deep go-to-market expertise. That's about bringing people that can speak about insurance, that can speak about asset management, that potentially have worked in those industries for customers into SimCorp, so we can really help the customer and have those strategic dialogues. Lastly, cloud transition. You heard a lot about the SaaS opportunity here. That's an area where we've really ramped up with our commercial people to make sure that we are sufficiently scaled to capture that opportunity. We have another way of generating business, which we call our indirect route to market, and that comes in several different ways. If we start on the left here with our ecosystem partners, you will hear a lot as we go through the day about how those ecosystem partners add to the overall value proposition. I'm gonna speak about this slightly differently. When you have these companies out with their own sales team in the market going to sell, occasionally from time to time, they will see an opportunity where it makes sense for them to bring in SimCorp. They will bring us opportunities here and there. We then, on the right, have the channel play customers. This is typically your asset servicer who would use SimCorp Dimension to service their customers. But they make a channel play agreement with us, where on top of running their customer's business on SimCorp Dimension, they actually have the right to license SimCorp Dimension through to their customer. Their customer could use, for example, our front office tools and get the back office operated by the asset servicer. It's important to just to say on this, the commercial model that we have around our channel play means that if one of our channel play partners here goes and signs up three, four, five different customers, the revenue to SimCorp is really comparable, whether those customers come in via a channel play or directly to SimCorp. The last route to market that we have here is really what we call our strategic partnerships. We've got two in that bucket today. As Christian mentioned earlier, that's something we're actively exploring doing more of. On the left here, we have State Street. This is really focused around the European insurance market. They've obviously recognized the value of SimCorp's platform for servicing the European insurance market. That partnership is all about bringing some of the services that they can offer together with SimCorp, so that when you combine them and you go to market together, you're creating a unique value proposition. In a similar kind of way, but at the same time a little bit different, we have the Challenger joint venture. Challenger, as many people know, has been a customer for many, many years, I think more than 15. They were on operating model number one, so they ran everything in-house front to back on one platform. What they've decided to do here is to lift out that middle and back office operations team into a separate company, where SimCorp is participating as an equity holder, and really go to market to capture some of the growth in the Australian market. The real sweet spot here is coming from the Australian asset managers, the Australian superannuation market. If you think about what's going on down there, you've got a lot of superannuation funds that are starting to bring asset management in-house. They're creating equity desks, they're creating fixed income desks, which is resulting in them thinking that they need a system. Again, they don't wanna go for that top model because they don't want to do a transformation project. They don't want to have to implement a software and put everything together. Now what they can do is they can come to this entity, they can get a front office application on the cloud with the rest of the value chain serviced by Challenger. Again, Challenger here is taking SimCorp's software. They're also taking all of our BPaaS services, so data management and accounting as a service. On top of that, they are layering their local services for the Australian market, so fund accounting and some of the unit registry. Again, it's another example where we believe what Challenger can bring on top of the SimCorp tech and service stack can create a unique value proposition in the market. What I really want to leave you with today, I'm not gonna go through every bullet point, but I think to summarize, we really see a big market opportunity. That market opportunity both in generating new customers, but also in the business growth that we can see from the existing base. We believe we have the right value proposition, and you're gonna hear more and more about that throughout the rest of the day. Finally, from a go-to-market perspective, with our direct and our channel play and our partnership channels, we believe we've got the right distribution model to be successful. That wraps up my part of the first presentation. I think we've got about a minute or so before we have to break for coffee, but open to take any questions. Hi. Thanks, Oliver. Two questions. The first is on the slide of the four different business models. Given the industry's growing at about 5%, you mentioned EUR 6.5 billion. Can you break down across those four business models what the growth looks like, individually? That's the first question. Secondly, where are you lacking in terms of sort of technological or solution advantage across those four business models, such that maybe you are actually losing share, particularly in North America? Okay. I think just to answer on the first point about the relative growth in the different segments, that was something we tried to indicate with the pie charts and the euro signs. We see the biggest growth coming from the BPaaS area. We didn't quantify that in a particular percentage, but hopefully the progression of those pie charts and the euro figure can give you an indication of where we think each one of those are going. On the second question around. I interpreted that as a competitiveness. As I sort of said on the front, we really think that is, and we see that most of our customers that we win come in on that top model. The second one is the most competitive. That's where we are fighting purely on the front office component. As I said, all the differentiation really comes down to integration with the asset servicer. I'm gonna touch a little bit more in the details in the sessions this afternoon on what we're doing, particularly in that point on North America. Thank you very much. Could you elaborate a little bit more on the change in the sales organization that you talked about, the more verticalized sales organization? I mean, does that mean ultimately that the sales organization will be less localized? 'Cause at the same time, I thought that in the past, you know, the issue that you were facing in North America is that your sales organization was not local enough. Can you elaborate a little bit more on that point? Sorry, can you just repeat the second part of that question? I mean, if you could elaborate on the change in the go-to-market, I mean, the sales organization, because you were saying that. Yes. You want to attack the market more on the vertical, from a vertical point of view. Yes. At the same time, I understood that in the past, the issue that you were facing in North America, notably, is that the sales organization was not local enough. Sure. How can you reconcile this? It's a good question. Thank you. The way we think about it is it's really important for us to have the right caliber of salespeople in the region close to our customers. We need our salespeople to be able to go in and have a conversation with a potential customer about those different operating model types and be able to articulate and to discuss with the customer which one of those makes the most sense for them. That is the kind of caliber that we want out of our salespeople, and we need enough in every region to be able to cover that geography. What I was explaining to you on the other side is more of the, let's say, the global muscle, if you want, which is going to support these people. When we do have, let's say, an insurance deal somewhere in the U.S., that we are able to bring in a head of insurance that can speak about all of the different challenges that insurance companies are going through, what we're doing from our existing customer base, and to go really deep on a vertical level. It's about having enough people in region and making sure we've got a global model that can support all of those depending on where those deals may be. I can see here that we are totally out of time. I think we have now a 15-minute coffee break. I think as Christian said, we're happy to take conversations as we go. Thank you. Okay. Thank you very much. My name is Marc Schröter. I'm SimCorp's Chief Product Officer. I'm responsible for all product development in SimCorp. I'm really excited to be here today to talk about how we think about the future, how we also see the market needs evolving, and of course, how our product strategy and our roadmap is addressing the evolving needs. This presentation I will address or focus in particular on a few key messages. I will talk about our comprehensive cross-asset front-to-back SaaS platform, explain where we're investing in that. I will elaborate more on the evolving market needs and, in particular, how we, via our technology-enabled services, can provide more operating model choices for our customers and thereby unlock parts of our TAM. Clients today want openness, so I will talk about how we are opening up the platform, how we are providing access to a comprehensive ecosystem of partners, and how that is adding value both to customers, to the partners, and to the platform as a whole. Finally, also how we are investing into platform capabilities and technology alike, both to stay ahead, to improve our own efficiency, and also to increase the pace of innovation. The agenda is like this. We will first talk about the mission of the platform, the key offers. I will elaborate how we see the market needs evolving. That's of course, a continuation of what Christian talked about and what Oliver also talked about, and how that is linking into our strategic priorities in particular. Finally, our commitment to invest into the platform. Let's start with the platform mission and the key offers just to kind of set the scene of how we think about the platform and how we are evolving it. As already addressed by Christian and Oliver, the SimCorp platform is addressing the buy-side industry, more specifically institutional asset management, asset owners, including pension plans, insurance companies, and sovereign wealth funds, as well as asset servicers. These companies, they are facing increased complexity and competitive pressure. What we see is that they're looking for vendors who can help them to simplify their operating model to help them become more efficient and scale their business, but at the same time provide a solid foundation for the core business of investment and client services. Our mission is to do exactly that, to help our clients simplify their operating model by providing one solution that covers the entire operations in a single coherent platform. That's the overarching goal. Now, at the core, the SimCorp platform solves the data problem that institutions who are using multiple systems and multiple vendors have. From sourcing of market data to a real-time view of data in the investment part of the organization to an end-of-day view of data in the accounting part of the organization, all the way to data warehousing as a foundation for analysis and reporting. In short, to provide one version of the truth across the entire firm, to provide clarity and same view on data all the way from portfolio managers and traders to accountants and analysts. The platform is supporting all asset classes across both private and public markets. Thereby, we can provide a firm-wide view of business risk and exposures, and the functional solution spans the whole asset management value chain to provide efficient processes across. The SimCorp platform also allows our clients to scale, whether it's in terms of growing in volumes, entering new markets, adding new asset classes, or launching new products. Finally, we are opening up the platform, providing access to a wide ecosystem of partners. We'll talk more about that. The platform is modular, which can be condensed into four key offers that I'll just quickly run through here. First one being data management. This is an offer that allows our customers to source data from multiple vendors, quality assure those data, create a golden copy, and feed that into SimCorp Dimension or other downstream systems. That allows them to quality assure data upstream in process and therefore avoid costly exception management in the downstream processes. The data management offer originates from our acquisition of AIM Software a couple of years ago, and it can be delivered as an integrated part of the platform, but also on a standalone basis, and it's relevant to all our target segments. The next offer is our front office offer, which is the process from investment decision support and portfolio construction to order management and execution, post-trade processing, all the embedded pre- and post-trade compliance, and analytics within risk performance, P&L and other. This offer is obviously relevant to everybody who is investing in-house. Asset managers who use that offer will sometimes have outsourced operations. That's back to the operating models that Oliver talked about, whereas asset owners who use the SimCorp front office in many cases will also be using the operations and accounting offer. That's exactly the third offer, operations and accounting, covering operations processes, settlement, reconciliation, corporate actions and the like, and accounting processes as in a recalculation fund accounting for asset managers and asset servicers, as well as local and global GAAP accounting standard IFRS, et cetera, for asset owners. The fourth offer is around analysis and reporting, where we're helping our customers to create insights from a growing amount of both traditional as well as alternative data and to manage the reporting and the client communications. When we talk about client communications, that both covers traditional client reporting as well as more modern digitized portal-based communication between asset managers and their clients. The client communication offer originates from our acquisition of Coric, and again, it can be delivered as an integral part of the platform, but also on a standalone basis. Just briefly, what does a transformation journey look like, given all what I've said so far when SimCorp clients are moving onto the platform? Well, before moving on to the platform, they will typically have many different systems from many different vendors across the business functions and their users, and sometimes with a part of the business being outsourced, as again, Oliver talked about. There will not be one firm-wide view of data, of key data. There will actually be inconsistent definitions of data across many different systems, across many different siloed data stores. It would also be a challenge oftentimes to scale the business, because any change needs to be implemented across many different systems and many different integration points. In contrast, the SimCorp platform allows our customers to simplify their operating model because we typically replace many legacy systems with one single system. There is the one book of record which provide one consistent view of data literally across the firm, and the platform allows customers to scale in multiple dimensions. In terms of outcome, what does that mean? Well, it oftentimes means that customers of SimCorp, they have a high operational leverage, so they can scale their business multiple times faster than they scale their costs. The cost themselves will be lower because we are replacing typically many different systems, and we are providing more efficient workflows, so that leads to lower cost income ratios. The business outcomes are better because now the data can be trusted, and the firm typically also have faster time to market and agility because they can launch new products, they can enter new markets because the platform is supporting it already. I brought just one example of a client who has actually achieved many of these different outcomes. It's a EUR 300 billion European asset manager who is using SimCorp Dimension in the front office and the middle office operations and in the accounting. Over years, they have been consistently able to grow their business, their AUM, and also their volumes without growing their cost accordingly. That means that they have a low cost-income ratio today. I think what is interesting in this case is that this company, they have several times over the period considered whether they should outsource, but every time with the conclusion, no, it's actually better for us to keep the operations in-house, even for standardized processes such as fund accounting or NAV calculations, and even with the relatively small scale they have compared to the larger asset services companies who they would be outsourcing to. Let's talk a little bit about how we see the market needs evolving. Traditionally, the SimCorp platform has been installed or been used in an operating model with on-premise software and in-house operations, and that has led to all the benefits I've talked about so far. Now, as we already talked about also in the previous presentations, as we move forward and as we look forward into the market, we see the needs of the customers and the market evolving, and therefore also a need for us to consider how we can support different operating model choices for our customers. Why is that? Well, there are some of the drivers put on the slide here. From the market side, after a low interest period, we have now increased inflation, increased interest rates. We have sustainable investment as a big theme. Asset management fees are still under pressure. Clients are getting more demanding and the complexity of regulation continues. Many of them have been ongoing challenges for years. Asset managers are of course responding to that in many different ways. They are increasing their allocations into private markets, into alternative investments. We also see an increasing willingness or increasing need or desire to build proprietary quant-driven strategies or to increase alpha. When it comes to improving the cost-income ratios, we see customers automating everything that can be automated, consolidating systems, but also having more fundamental considerations around the operating model. The client communication is being digitized to improve the client experience. There's a lot of responses to the market drivers. The challenge is this. While this is where asset managers want to focus their effort, they end up spending a lot of their time and their attention on operational issues with IT, with data, with operations, and with people. How to move to the cloud, how to implement DevOps models, how to maintain integrations, how to enable their data scientist teams, how to automate manual processes, how to integrate into the market ecosystem. I think also there's a real global challenge in both attracting and retaining the necessary talent for doing the actual operations, in particular in areas that are not core to asset management. What that sums up to is a desire to find an operating model that can allow or empower, if you like, asset managers to focus on their core business, combined with the possibility or the flexibility to create own IP, to innovate in areas where it makes a difference. That's the key driver we see in terms of future system and operating models. Of course, overall, that leads to a redefinition of how we view operation, operating models traditionally, but also how we as a software vendor can best support our clients to achieve their outcomes. Christian already showed the slides, but I will give a little bit, different flavor to it. First of all, it's a well-established trend to move away from on-premise software to the cloud. That's quite clear, but we do see our customers doing it in two different ways. Some customers have chosen an enterprise cloud strategy, and they're basically taking all the applications and moving those to their preferred public cloud vendor or infrastructure provider in a replatforming exercise. The core is that they would actually still be operating and managing their applications, they would just do it in the cloud instead of on-premise. Other companies have a software-as-a-service approach, where they ask their vendor to deliver the software as a service, so they can focus their time and effort on their core business and not operational IT issues. What is important is that the SimCorp platform supports both of these approaches, but it's also quite clear that we do see the software as a service as the end destination for most firms, and this is where we are spending our R&D capacity. When it comes to business operations, we talked about that in-house operating models have a lot of advantages. You own the data, there's full flexibility and control, and those companies who do that well, they get this operational leverage, which in turn actually creates operational alpha and is a competitive parameter for actually for some firms. That leads to low cost income ratios and a good position. As already mentioned, this just requires a willingness, ability to invest into operations. The alternative to this have traditionally been BPO or traditional outsourcing, where you take a process, the people, the systems, and lift that out to a service provider. That can decrease the cost in some cases, but without the operational leverage and the operational scale. The other thing is also that introduces an integration effort, because now the service provider is using their own systems, their own data, their own people. Part of that needs to be mirrored back by the asset manager to create the necessary oversight and control, but also get access to the data that they actually need to run their core business, their core operations, which has not been outsourced. The new alternative to this is what we're calling technology-enabled business services or BPaaS. These are services that are delivered as part of the technology platform by the vendor, and only for processes that scales with technology, not people. What it means is, there's actually now an opportunity to, instead of first choosing the operating model and then the vendors, to do it the other way around, potentially. Choose the platform. The platform is delivered as software as a service with optional business services on top. There's only one platform, one set of data, and all the transparency and control that is necessary. We have the best of breed versus integrated, as Christian mentioned. Previously, there was a kind of either one strategy or the other. Today, we see that clients want a combination. They want the benefits of the platform to have solid data, solid process flows, but with the possibility to plug in specialized applications or packages wherever it makes sense. How is that linking to our strategic priorities? Christian mentioned four growth levers. I have three of them here. We have platform leadership. That's our core platform, where we invest in the majority of R&D to maintaining, enhancing our platform within the four areas, key offers, data management, fund office, accounting operations, as well as client communications. Within the SaaS acceleration, by delivering the software as or the platform as software as a service with, the business services on top, we take a significant burden away from our customers, allowing them to focus on their core business and where they can add value themselves. We are also investing into our technology to support this or these offerings, and I'll talk a little bit more about that. Finally, by opening the platform both for our clients' own innovation as well as giving them access to an ecosystem of partners, we provide value to clients, to the partners, as well as to the platform. Let's take these strategic levers or growth levers one by one and talk about some of the main strategic priorities. I'll also say that after my presentation, there's a deep dive into software as a service, there's a deep dive into front office, and there's a deep dive into business process services or technology-enabled business services. Let me try to give an overview of where we are investing and what are the most important priorities. First, to increase alpha, asset managers are increasing their allocations into private markets, into alternative investments. Today, alternative investments or private markets represent EUR 13 trillion and is actually expected to grow with another EUR 10 trillion until 2026. Huge growth. If you look at the SimCorp customer base, for many customers, alternative investment is the major, it's the largest asset class they have in the portfolio, and some have exposures above 60%. The SimCorp platform supports both private and public markets investment into one single solution. Now, we made a conscious choice a few years back to build this asset class natively into the platform instead of building it on the side and then letting it come together with public market investments in a data warehouse and a report downstream process. By doing so, we can natively inside SimCorp Dimension provide our customers with a full overview of their total portfolio across private and public markets. What is the position? What's the exposure? We can also give access to existing capabilities, what-if scenarios or stress testing, perfectly possible to apply that across private and public markets. There's a lot of processes that goes across all asset classes, think compliance, think performance, think reporting. All of the processes apply on the same platform in the same system, so it doesn't have to be handled in multiple systems. We actually believe we have the most comprehensive platform in this area, or the most comprehensive coverage, as a combination of our own capabilities and a rich ecosystem of partners, data partners, process partners, and technology partners. Of course, we also produce new innovation ourselves in this area. A few examples is automatic processing of unstructured documents or PDF files and the like by use of machine learning, or a stochastic cash flow forecasting model that can be used to pace investment, these commitment-based investments to achieve certain target allocations in this area. The next strategic priority is how to create enough investment insight and automate within the front office area here. The core value, what SimCorp provides, is the consolidated and up-to-date real-time view of the investment book of record, the IBOR, and an efficient process to go from an investment decision to an order to a confirmed trade. I said before, we increasingly see our clients wanting to inject their own IP, for instance, in the portfolio construction process. They want to use specialized packages, specialized vendors for risk, for multi-factor risk, for instance, for portfolio optimization. Or maybe they wanna take trading data and use that to determine how best to route orders to the market. This is something we see actually across the value chain, but it's particularly pronounced within the front office. As a consequence of that, we have built a rich library of APIs available in the front office as one, and secondly, we built strategic partnership with the market-leading vendors within risk, optimization, and execution management. The result is that customers, they can inject their own IP or use specialized packages where they want, but still leverage all the benefits of the integrated platform. We have sustainable investments or ESG. Obviously, this is a mega trend. It's relevant for all investors across asset managers and asset owners. I think ESG assets has tripled, fund assets has tripled in size since 2019, so also growing significantly. The same way as we are returning to investments, we also decided consciously to build that natively into the platform to make sure that ESG investing is an integrated part of everything else you do in the platform. Now, when it comes to ESG data, there are very few standards. There are more than 100 ESG data vendors, so this is an area where we decided a partner approach instead of building our own proprietary ESG model or distributing our own proprietary ESG data. We didn't find that the right thing for us. Instead, we offer an ESG data service where we can source the data of our clients' choice and make the data available inside the SimCorp platform. Once the data are available inside the SimCorp platform, again, they're an integrated part of the system, portfolio construction, compliance, and reporting, and so on. What Dimension does is, of course, take all these ESG indicators and apply them in a portfolio context. For instance, what is the total carbon emission of my portfolio? Now, in addition to that, we are supporting our clients in meeting regulatory requirements or compliance in this area here, most notably within the Sustainable Finance Disclosure Regulation, but also some of the other frameworks. Finally, we have market interoperability in this space here. Obviously, the SimCorp platform itself provides efficiency inside a firm between the different users and departments. Dimension is also one component in a larger infrastructure, a larger ecosystem connecting to external managers, connecting to custodians, connecting to market infrastructure providers. While there are standards, of course, in this area, we have SWIFT, we have other things, it's still a complex task for customers to connect to this wide array of different external connections, external manager included. To address this, we have launched a managed connectivity service we call an Asset Service Hub. We have started with custodian connectivity by partnering with the largest global custodians and agreeing how to connect the SimCorp platform to the custodian platforms. In essence, the Asset Service Hub is providing seamless connectivity or integration between the SimCorp platform and the custodian platform. Obviously that improves efficiency, STP rates, but it also increases transparency because we get access to data which is residing on the custodian platforms and can make it available inside the SimCorp platform. It allows faster onboarding of new custodians or change of existing custodians for those clients who want to do that. The next growth lever is SaaS acceleration. As we talked about, the SimCorp SaaS platform, which is based on partnership with Microsoft Azure as our cloud infrastructure provider, is well established. Virtually all new SimCorp clients go directly on SimCorp SaaS platform, and many existing clients want to do so or are in the process of doing it. I talked about earlier that we do see some clients who have a different cloud strategy to move things to their own cloud platform, but the vast majority wants to move to the SimCorp SaaS platform. A very, very important point is that we have designed the platform in a way where existing clients can move onto the platform without having to do a re-implementation. As part of such a migration project, of course, we'll do a lot of activities. We'll simplify, streamline, reduce database size, clean up, introduce standards, and so on. In essence, customers can move from on-premise to our SaaS platform without doing a re-implementation. In addition to that, we're investing into automation, both in our development and our deployment process. There are a number of different outcomes here. It covers typically the test automation, our engineering platform, configuration management, and standardization. The outcomes are the investment into our engineering platform and increased use of cloud technology means that we can make our software development more efficient as we move forward. The investment we're doing into configuration management or automation in that area makes our SaaS deployment, our SaaS delivery more efficient. The standards make onboarding faster. If you combine all of these investments, we think we are convinced that we can achieve significant efficiency improvements, both in our software development and in our SaaS delivery. In addition to that, in addition to investing into automation, we are also investing into optimization of the architecture. For instance, to decrease the consumption of infrastructure cost, but also to deliver new innovation faster. Again, with the approach, we have a number of benefits. First of all, we're improving the architecture of the existing SimCorp platform to make it more scalable, more suitable for cloud operations. Again, here, we're doing it in a way so it is not a break in change for our customers. They do not. It's not a new product. They do not need to re-implement. They can stay on the existing platform, but we are still optimizing the architecture. They can get the benefits from that. That's something we've done for a period of time, and we're seeing the first outcomes of this, including new capabilities such as the APIs I talked about. That's one. Secondly, whenever we build new capabilities, we build it cloud natively. Here we take full advantage of being in the cloud in terms of pipelines and all the kind of technological opportunities from the cloud. For instance, we built a client portal, a digitized client portal for asset manager communication to the end client, fully cloud-native product. The Asset Service Hub I talked about, fully cloud native, and we have a cloud native data warehouse. Finally, the last thing we're doing is we're then looking into existing SimCorp Dimension and seeing if there are areas that would benefit from a complete refactor? Are there specific functions where we should refactor it for a cloud to get the full benefits of being in the cloud? One such area is investment analytics that is really underpinning the whole platform, and in particular, performance analytics is an area where we today have refactored that for the cloud. By use of new technology and the, you would say, the elasticity, in principle, unlimited compute power in the cloud, we managed to transform such function from being something that runs a long calculation job, stores a lot of data in the database, to something that is calculated on demand and is providing answers back in real-time, so less compute power needed, less needed from the operations team and less database need. Something that will optimize. The new applications such as the digital portal or the performance analytics I talked about now, they are designed to be an integrated part of the platform, but they can also stand alone. What that means is, as we build more of these type of applications going forward, we have more flexibility to deliver them independent of the core SimCorp platform. The final strategic initiative here is technology-enabled business services. As we talked about, we have launched three services. We have live clients on each of them, a data management, accounting and an operations service. In short, the data management service is really about sourcing data for market data, making them available inside SimCorp Dimension. The accounting service is that we do the day-to-day accounting operations for customers based on reconciled data and feeding general ledger systems, doing the accruals, amortizations, and so on. The operations service is about trade processing, reconciliation, those type of activities. These services are entirely managed and delivered via the SimCorp operations advisory and change teams. They're based on a high degree of standards and are delivered on a multi-tenant environment to keep the cost down. I brought just another client case, just briefly. This is also an existing client, an EUR 800 billion diversified investment manager who have decided, who have great benefits from both consolidating asset classes on the SimCorp platform, including alternatives, so thereby they could shut down or retire legacy systems. They're now moving to the SimCorp SaaS platform, and they actually also decided to take the data management business service. All together, they can reduce their cost, and they can also scale down on their own operations. This last strategic or growth lever and strategic priorities is the ecosystem scaling. I already talked about how we're opening up the platform via APIs for the client's own innovation, how we are providing a connectivity to a wide ecosystem of partners, and how we are providing interoperability to custodians in particular. The value we provide with that is that we solve the challenge clients have in curating partners, integrating those partners in a uniform way into the SimCorp platform across all clients, and maintaining those certified partner integrations. The way we do it, more practically, we select a number of functional areas where we believe we can add value by providing optionality. These are typically areas where we don't have capability ourself. It could also be areas where we actually provide capabilities ourself, but still believe there's extra value over and above what we can deliver ourself. We have a very solid pipeline of partners, both small fintech partners as well as large mature ISVs, and we are signing partners on a consistent basis. To give you a flavor of that or some examples, within the private markets or our alternative investment solution, we're working with Colmore for data and business processing. We are working with Domus for GP investor communication. We're working with Canoe, Alkymi for data processing technology, and we're working with Preqin, PitchBook, and Cambridge Associates for alternative investment benchmarking data. Within the ESG area, we're working with Clarity AI, LeafBlue, and Domus for providing data and analytics in this area. Within the front office, we are working with Axioma, RiskMetrics, StarCube, and IntelliBonds, both for portfolio optimization and for risk and other types of analytics. In the ESG area, I talked about ESG in the trading space, we are connecting to most of the ESG, or EMS vendors, and we have a very close relationship with TS Imagine, as our prime partner in this area. Within regulatory compliance, we are working with FundApps for substantial shareholder reporting, and finally working with State Street, BNY Mellon, Citibank, JPMorgan, HSBC, and BNP Paribas for custodian connectivity. A wide and growing ecosystem of partners. As we see the client needs of the future, clients want holistic solution that solve their entire business problem. As we look at this, how we can contribute to deliver that, help our clients, it will be a combination of the SimCorp offering as well as partner packages. Finally, as we also think about as the managers and investors, and their needs of the future, we also see an opportunity in helping them to manage, ever-growing or more complex landscape of data to support the data scientist team in analyzing data, creating new insights. What is important is that the SimCorp platform is typically the main source of these type of data. But at the same time, there's of course also a proliferation in so-called alternative data, and we see our customers being more and more sophisticated in this area. They're hiring developers, they're hiring data scientists, and getting more sophisticated, for instance, in the area of ESG. What's also important is that asset managers are virtually, you can say, exploring this area on their own. There are no standardized solutions. Today, our data ecosystem, what we can provide with that, is that we can take data or combine data originating from Dimension, I said that's the majority of data, with data from other sources. The core of the solution is a data model that's covering kind of what Dimension covers and integrating that into SimCorp Dimension. That provides our customers with a solid foundation in order for them to move very fast in this area. This initiative is something we do in partnership with Snowflake, who is one of the industry-leading, cloud data providers. That brings us finally to our commitment to invest into the platform. We are committed to invest into our platform, both in terms of platform capabilities and the underlying technology. You probably know that on an annual basis, we are reinvesting a significant part of our revenue back into the product. There was a question about how much. It's a lot. It means, or what it can translate to, is a yearly budget of around EUR 90-100 million, or in other words, 800 people working in our R&D organization. They are committed to drive innovation of the platform. Also important, we have significant scale in the platform itself. There's a lot of functions, from the technology frameworks, to the securities, to the data models, to the analytics, et cetera. They're working across the entire platform, and therefore, we only need to develop them once. With the investment we are doing into our engineering platform and extended use of cloud technology, we're confident that we're able to scale and accelerate as we move forward. Finally, in addition to our own investment, our own scaling, we do see a big opportunity in working with partners. The solutions going forward will be a combination, as I mentioned, and this is only possible due to the close relation we have with our partners, both when it comes to R&D and when it comes to go to market. The key takeaways I want to leave with here, we believe we have the most comprehensive solution, front to back, cross-asset, natively built into the platform, delivered as software as a service. Via the BPaaS services, we can address different type of operating models in a better way than we could before, and thereby unlocking part of our TAM. We're opening up the platform, providing access to a wide ecosystem, allowing clients to innovate themselves around the platform, and we believe that creates value both for the clients, for the partners, and for the platform as a whole. Finally, we're doing technology investment both to automate, make ourselves more efficient, but also to increase the pace of how we bring new innovations to the market. That concludes my presentation, and maybe there's a few minutes for questions or not. Let's see. Are there any questions? Yeah. Yes. Hello. You mentioned, so the investment you're making, obviously in open APIs, open ecosystem, data analytics in the cloud and so on. I mean, to what extent do you believe that this puts you ahead of competition? Because I'm not sure about the investment management software landscape, but, you know, in other segment of software in core banking, in ERP, in CRM. We've been hearing about these investments over the last 10-15 years. In APIs? Yeah. Yeah. No, I think what is important, the APIs only make sense if the foundation is solid. This is an area where the entry barriers are high. It's really difficult as a newcomer to make a platform like ours. There are instruments, there are new regulations, there are a ton of nuances, there's a lot of connections. What we see is that we have a mature, we have a solid platform that is covering instruments, it's covering the processes, and not least, it contains the data. It has this one view of the data. Once that is in place, there's a value in opening up the platform, both for clients to do their own innovation, as I said, but also for partners who actually, I mean, today have challenges in addressing our customers because it's difficult. They need to integrate to our platform, and they're small, they can't do that on their own. What we're providing them is a platform where they can actually access our clients, and we can overcome those burdens. It's only possible because we have a mature and solid platform. That's my view, at least. How does that compare to competition and especially the cloud-native vendors, the likes of Clearwater Analytics and so on in the U.S.? There are many different strategies among competition. I think if you take the ones who are close to us, they would probably also say they do APIs. APIs for connectivity and so on is probably what you expect. I think we have a fairly rich ecosystem of partners, and if you then combine all of that, we provide significant value to all parties. Okay. Perhaps last question from me. Just on partners again, in this ecosystem of partners you're mentioning. How do you monetize that, basically? You know, should we expect that this could have a material impact to your SimCorp's revenue going forward? Yeah. The value of having the partners is the platform itself. It's the ecosystem. Of course, it's value to clients, to the partners and so on, but it's the whole totality. It makes the value of our platform better, and it makes our platform more sticky. Of course, the partner relations, there's a commercial relationship with us and the partners, so that is something, but it's actually the other part that's the important part. Oh, thank you. Yeah. How we doing on time? Okay. I'm available for any further questions, so please, don't hesitate. Yeah. Over to you, Georg. Continue. Okay. Thank you, Marc. My name is Georg Hetrodt. I'm SimCorp's Chief Operating Officer. In this role, responsible for all our service delivery. All means across all regions and across all clients, on-premise clients and also cloud clients. Before this role, which I took over in March this year, I was the Chief Product Officer. Before that, in the 2000s, I was the Market Unit Director in Germany. In total, almost 25 years with SimCorp. In that new role, the top priority is to make sure that our clients get the premium service Christian talked about. That it's easy to consume our solutions. To realize the growth opportunity of SaaS. At the same time, point in time, also realize the possibility to make it to very profitable business. From this deep dive into SaaS, you should take away that we have a SaaS solution, that we know what are the next steps, that we know how to make it profitable. Of course, that requires work, it requires prioritization, and it will be done in line with the adoption of the cloud of SaaS from our clients. This is perhaps the most important slide in my presentation. We are a SaaS company. We are, have a SaaS solution for several years. We have more than 50 clients using our products in the cloud. More than 30 are SimCorp Dimension clients. More than 5,000 end users are using our products through our cloud solutions. It is, as I said, all products. It's all product areas within SimCorp Dimension, so there's front office clients, there's back office clients. It's across all geographies, clients in North America, clients in APAC, clients in Europe. It's a real 24/7 service. We deliver a very high availability of our platforms. Just a few observations. When we migrate clients, for some of our clients, we looked how did their system perform before and after the migration. For one of our biggest clients, actually in Europe, we saw that certain use cases performed 30% better after migration. For mid-sized North American client, it was 50% better. This is a proof point from what the whole story is about, that we as vendors should be better in running our platform than our clients ever can do. That we say we are SaaS is backed up by this slide. When you look into the definition of SaaS, if you look on the right side, that's from Salesforce webpage. When you look into Wikipedia, that's the left side. There's two main components. It's licensing on subscription basis, and it's centrally hosted. Both things we fulfill for quite a long time. When we look from a slightly different angle on this slide, slightly different definition, what is the outcome for the clients in the different service stacks? I start here with the original starting point, packaged solutions. That's what we have done the last 20 years. Delivering software together with services to support the clients in running that software. What the clients get as outcome is software according to the specification. But the client keeps the responsibility for running the software. The next level is SaaS. Here I call it to make the nuance and clarity clear. SaaS platform. That's where the vendor delivers the software but runs the infrastructure, delivers certain IT services so that the client doesn't need to do that anymore. There's one extra level of SaaS, where the vendor also takes responsibility for application management, making sure that software changes, the configuration changes are tested, deployed, and brought into production for the client. That's the outcome here is creating or delivering consumable software. In principle, only the business users of the clients can directly use the software, but they don't have a lot of IT work to make that happen. That's actually where our SaaS journey is going to. That's why we say we are on our acceleration journey to get from what is SaaS, the SaaS platform, to this slightly extended definition of SaaS. Finally, on top of this, what Jackie will later talk about, you can deliver a BPaaS, where we deliver business outcomes to the client. The whole idea of these different services is that the vendor should be better in delivering these services than the clients themselves because we scale across all our clients. Secondly, the client can focus on core business. I want to make this point clear also. In our enterprise software world it's different from a consumer application on a smartphone or any other consumer application. Many of our peers in this enterprise software world struggled with making this transformation to SaaS because you need to find a way how to protect your existing IP. Super important for all of us. You need to find a way to make it easier for our clients to consume the technology. At the same point in time, keeping flexibility. If you just build a new application where one size fits it all, then it's easy. If you want to keep optionality for an industry so sophisticated like the industry of our clients, then you need to find a different way. Finally, you need to find a journey for the existing clients without asking them to re-implement the whole thing. We have solved these three problems. The solution is this on this slide. This solution, which gives all this, is available now. In addition to the platform service we have for many years, this solution, this complete SaaS solution, is available now. It consists of these components. All of these components are tested, are used with clients, and they are also now used together as this SaaS solution. It consists of our SaaS platform service. I come back to it. Where we deliver infrastructure and technology services. It consists of our SimCorp applications and seamless integrated new cloud-native products, as Marc described, but also the existing products, cloud-lifted, cloud-optimized as the software solution. It consists of configuration, where we will deliver more and more standards. When configuration doesn't create value for the client, we need to deliver standards where what we call customer overlay creates value because clients are different in certain areas, then we can deliver customer overlay. Finally, and this is now also from a definition point important, what I call SaaS application management service. This is an extra service layer where we take responsibility for configuration, for deployment of code and configuration, and for testing. This solution comes together with what we call the service portal. That's our operations cockpit. Our people use, our operational people use, but also the self-service portal for our clients. On the right side, the delivery pipeline Marc talked about, making all this as automated as possible in pipelines that creates scale, that creates good margins. Now I talk about evolution to explain the journey. How far did we come on this journey and where do we want to go on this journey? I will use this illustration that come from the packaged software model and go to the full SaaS plus BPaaS model. With this, the size of the boxes, there should be illustrations of the potential ARR growth, but please don't take them, calculate the sizes of them exactly. That's just an illustration. Also it shows that our share of wallet increases, but the total cost for our clients will decrease because, again, because we can deliver these services at a better, more scalable than they could do themselves. Let's start. Classic packaged software model. Software vendor delivers software. The client pays a subscription fee. For that, he gets the right to use the software and he gets support services. In addition, there is an onboarding project in the beginning. To integrate that software into the client's landscape, to replace existing systems, and to migrate data into a new platform. When the client is live in the old world, vendors offer managed services to help and support the clients in running their software. On this slide, I have the disclaimer I already mentioned, so I go ahead. We have already, as I said, we have the SaaS solution. In addition to the subscription fee, we have a SaaS platform service. That consists of two elements. One is the infrastructure, and one is technical services we deliver. The infrastructure we get from third-party vendors. The services we deliver ourselves. In principle, at this stage, the onboarding is the same as before. A few things that happened with this, our services in the past years. When we started in 2016, we started with a classic data center. Instead of having the infrastructure and the data center of the client on-premise, it was in our data center or in our third-party vendor's data center. Classic data center, the client signs a contract, wants to go on our cloud solution. We have to order hardware infrastructure, install it, deploy it. It took 4 months. In our second generation of SaaS, we made an agreement with another vendor where we got the advantages of private clouds. We could do the same in 4 weeks. Since we are on Azure, where you can use the concept of infrastructure as code, you can automate the deployment of infrastructure. It takes us 4 hours. We never do that in principle. If when the client signs, we want to go on your cloud solution, within 4 hours, they could have a SimCorp Dimension installation on future production hardware. This shows the advantage, the possibility, the potential of the public cloud, which we use in our solution. We have this. This is a glimpse of our portal, what we use ourselves to service our clients, but also self-service portal. For example, exactly this or similar use case, what our clients do very often, they have a project. They want to change configuration. They want to include, introduce new asset classes when they run a project. They need a copy of their database, start changes, testing them, and go bringing it in production. In the old world, they need to contact us, say, "We want to have a copy of your database in around two weeks," and we can make it happen then. Now, in principle, they can themselves start a script, and they get automatically this copy. This is also where we started with a relatively manual processes, where clients had to send us tickets and we had to do things. Over time, we can remove more and more of this because the clients can do things super easy themselves in this new world. What is also important, of course, we invest in this. This requires a lot of automation code. As Marc said before, the clients can also use other clouds and do it themselves in the cloud. They will never achieve the same scale, because we do this today for 50 clients, then the future for hopefully many more clients, and thus will create a totally different scale and improvement of this automation of the infrastructure. To explain that again, we started, I would say, around six years ago, and we had a very classical maturity journey, as with all products. We started to invest into this product. We needed to define it, to build it. We needed to start to go to the market. In our world, clients, pilot clients, they want a discount. In that sense, it was quite natural that in the beginning we had an investment, we had negative margin contribution from this service. As I said, manual processes, classical data center. Also fair to say, at that point in time, our clients most likely knew better how to run SimCorp Dimension than we ourselves. With the change to private cloud, we also started an automation journey. We started, we optimized processes. We saw the first scale effects that we got better prices from our vendors. We started also to move labor to other locations. On the left side, everything was done more or less in Copenhagen. Now we have teams in Warsaw, and even since this year, teams in Manila. Now we go into or we have started the third phase, where we really optimize and where we automate the hell out of it, as I just described. Automation is the core to make this profitable using the benefits in using the public cloud. Create more scale, and then as Marc said, it's also about optimizing the architecture of the underlying platform to optimize it for use in the cloud. This is, and was for me, one reflection point. What we have done in the last 12, 18 months, creating this automation, getting the first clients on Microsoft Azure live, gives me the confidence, my team the confidence, that we can make this very, very profitable. There is a plan. What are the next steps? What do we need to do? As I said, automation is the core. Getting more and more self-service. From self-service actually to the next step would be self-healing, where with artificial intelligence, the platform finds out there is a problem somewhere. Too little infrastructure is provided, processes are hanging, then it could stop the process, deploy more infrastructure, restart the process automatically. That's where we want to go. We need to reduce the infrastructure footprint. One of the current priorities is to work on the database size. Marc mentioned that also briefly. That's a top priority because that way we can see that we have relatively high infrastructure costs. Migrating the clients who were on or are on the first generation of this solution will help us a lot in optimizing. Utilizing remote location, as I mentioned. Of my total team in what we call client services, I have now around 30% of the capacity in remote locations. Of course, this will continue. We will move the remaining labor, 'cause we want to try to get as much labor away as possible, but the remaining labor we want to do in these type of locations, and not in Copenhagen or London, et cetera. Now, I need to make one point. Now it gets a bit complicated. Sorry for that. There's a lot of discussion often about that it's complicated to onboard SimCorp Dimension. There's a lot of configuration work ongoing. Configuration is from our point of view, or the way we do configuration, is from our point of view, a competitive advantage. Christian mentioned it earlier. Some of our peers, some of the enterprise software houses who struggle, their configuration is software. Clients change software. That gives endless flexibility in what you can do. In SimCorp's world, configuration always was done in the user interface, in the data model by business consultants or by the clients themselves. That allowed us to upgrade all our clients the last 20-25 years. That's why we don't have legacy clients. What we couldn't do in the past was managing that configuration for our clients. That's why we have in principle, 200 clients which were different. New methodologies, new standard tools in the cloud. The thinking of pipelines allows us now to manage configuration. In that sense, we keep the advantage. We keep the advantage that we can control what is out there. That the flexibility is high enough to provide the solution across all geographies, across all verticals, but not so flexible that you can't upgrade them anymore, or that you can't control what is happening. With this, we can offer a SaaS solution which is easy to consume for our clients. Of course, there's also no doubt that in some of our projects, for some of our clients, it's over-configured. In the future, we need to make sure that we focus on what creates value. When you can standardize only when you need, if it creates value, then make deviations from that and manage it as customer overlay. That will of course change our professional services. It will reduce the size of the onboarding for new clients. We will move from non-recurring services to recurring services, and we will become more selective in saying no to low-margin business in PS. We want to go for the value-creating, high-margin business. We also will use these new locations to improve our margins, because now we can blend our projects with people from financial centers like London, together with people from India, Manila or Warsaw, and that will gives us possibility to have more competitive prices, but still also improve the margins. As I said before, standardization is super important. We need to increase the coverage of which parts are covered by standardization, but we also can then introduce optionality. You can have two ways of make a standard configuration that the client can pick and choose, and we can deploy them automatically. These standard packages are today delivered by Marc's software organization, so they are already integrated into the software process, into the testing. That is already done before it hits the client. Automation is the key to everything here. Finally, I think that you might have heard that before, that it's a journey that our consultants in the field say they need to learn to go from ask to tell. Instead of asking the clients, "How do you want the configuration?" they have to tell them what is best practice, what is industry standard, how they can get the most efficient, and then find out where there is really a need for deviation. Our onboarding will become smaller. The gray part is that what will go away. Our objective is to reduce the size of the projects with 10%+ per year based on the 2021 baseline. We are tracking towards the 2022 goal. We want to do that for at least the next two years. We will reduce our part of the project. As you might know, when we have a project, an onboarding project at clients, then our clients have relatively big duties to deliver their part. That will go even more down and will reduce the costs and the risk of a project for our clients significantly, so will make us more competitive. We had actually recently one of our new clients in North America where the onboarding, in the sense of getting a configuration ready, getting the clients ready for production, took only two to three months. As a consequence of this will not be the case for all our clients, but at least it shows that we are making significant progress. Now comes my favorite slide. We have invested into animation. The next step is to change the onboarding from an upfront fee to something which is part of the subscription, where then you also the client from an cash flow financial perspective, gets the full subscription as the full SaaS experience, including the onboarding. Next slide. Now I need to go. Yeah. That is that slide. Now it goes. Now you hopefully have seen that this SaaS box increased. Because now I have included into that SaaS box not only infrastructure and technology service, but also application management services, what I talked before about. That we can offer, that we deliver configuration and we manage the configuration, we manage deployment, and we do the testing for the clients. So that will significantly add to the value and also increase our share of wallet. I made the point that we have also a journey for our existing clients. Let's assume we have today around 170, now I talk about SimCorp Dimension, about 170 clients, more than 170 who are still on-premise. We have more than 30 who have made already the way to the cloud. They can now decide, do I want the SaaS solution from SimCorp, which includes a platform and the application management service, or do they want to go when they are on-premise, they can. Oh, sorry, I don't. I'm not allowed to move out of the slide. They are, they can decide, "Do I only want to go to this platform service, getting into the cloud, or do I want to go first to the application management service to give SimCorp the managing the configuration, et cetera?" One way, and then they can choose in which, then they can go from the one to the other. When you are already on the platform service, then you would go directly to the AMS service, application management service, and then you would have a cloud SaaS-like experience immediately. That's what we are working on. It's also fair to say that the platform service is now very mature, and we are continuing to optimizing it, while this new service is relatively new, and it will take some time until it's in the same degree of automation and also highly profitable. As we have done it before and have seen how it works, we are confident that we can bring this to market and can make it profitable and margin accretive for the future. Also here, it's about automation using delivery pipelines, getting as many manual interaction out of this. There is here, for example, a core of this new service is, we have a service which is called Validation and Test. It's established for more than 10 years. 50 clients are using it. Automating that and bringing it from a waterfall-ish product, which is done after the client's got a new release, to something where the client's ongoing can test continuously, or we, for the client, will make this super efficient. As I said before, also here it will help that many of the standards are already tested and integrated in the development workflow. Increase of same, it's the same story. Important, perhaps a new thing here is what I call always green pipelines. In the classical world, we deliver software every quarter, and the software needs to be ready for delivery once a quarter. If you want to do this super efficient, then the software needs to be ready and green every second week. We are also on the way to make that happen. Another step to make this more profitable. Here my reflection point is we have this service, we are using it for clients. We are using it. I have seen a client where, and you might know that, classically, when you upgrade SimCorp Dimension, it's a relatively big effort. For this client, by using this service, it's a very small effort. It's not really something to think about anymore. The client, instead of doing regression test on a software application, they can focus on new business, new things they want to do. On top, finally, on top of all this, you can deliver BPaaS, the size I don't really know, but it's another possibility to increase our share of wallet and to increase our annual recurring revenue. Jackie will talk a lot about that soon. What we said so far is that this will create a factor 2-3 on the ARR from our existing, from our clients. What I want you to take with you, what Christian talked about and Oliver talked about, there is a strong demand in the market going to the cloud. We have a competitive solution, complete solution for new clients, for existing clients. We of course need to improve. We need to make them better, automate them there, make it thereby to a very profitable business. You will see a shift of the professional service revenue from non-recurring to recurring, to a higher margin business. Finally, all this requires work, requires investment, and as Christian said in the beginning, we will do that investment according to the demand, the adoption, how fast clients are moving to these new services. Any questions? Yes, Claus. Claus Sandman from Nordea. If you have existing client who is currently on-premise installation and wants to move to the cloud and the SaaS, will the user experience, not talking about cost, but the user experience, the speed of using the software be exactly the same or is that more into the future? That would be the first question. I have mic. The question is, how will the user experience be? First of all, we move the same software application into the cloud, into SaaS. That's in that sense, that will not change. The user experience using the system. The system performance you also asked about should be better. We strongly believe, we are confident that we can deliver a better user experience this way. I've tried to explain there is two cases that we have measured before migration, after migration, and the user experience was better afterwards. Well, okay. The reason why I'm asking is I've heard that you know, there's so many calculations being done in Dimension. Yeah. in the back office part. Yeah. When people are being converted to a cloud SaaS solution, then these many calculations are slowing down the speed of the system. That's not true, apparently. That I have not heard about. That's good. The second question. Yeah. If you are a client want to convert to SaaS, you said now the conversion, you know, implementation time was it four weeks? If we have a client who has done it in 2-3 months. Exactly. I have also said that we want to reduce. Yeah. Onboarding effort with at least 10% per year. How long will it actually take in this year if I wanted to convert? I think what I've just to make what I talked about here was the onboarding of a new client, as in the old world, let's say that. Mm. Moving from on-premise to the cloud is relatively fast. I would say depending on the size of the client, between 3 and 6 months you can get out of your own data center into service from us. Okay. This 4 month to 4 weeks to 4 hours. Sorry. That is an illustration of the power of the cloud in the sense of when in the old world or when in your own institutions, they buy SimCorp Dimension, and they need to install a server in their data center to install SimCorp Dimension on top of it. That takes quite some time because somebody, somewhere in the organization needs to sign an order for hardware. The hardware needs to be delivered, needs to be installed, and the data center needs to be. All this type of work just to get an empty box takes some time. To install SimCorp Dimension took in the old world four months, and I'm pretty sure it's something similar for financial institutions. When they do that in their on-premise data center until they have the first time their own SimCorp Dimension installation, it's not configured, it's not onboarded, it's not running. Just an empty SimCorp Dimension installation, perhaps installed our standards. That took four months. That now takes four weeks. Good. Thanks for that clarity. Four hours. Sorry, four months, now four hours. Christian mentioned in his presentation a gross margin decline, a valley, and then an acceleration as you go through the process of SaaS transition. Could you relate that back to your presentation, and where exactly are the headwinds and tailwinds on that? Now I'm asking the CFO if that would come back into, in your presentation later today. You are allowed to answer this one. Okay. I think as I said, whereas nuance, I distinguish between SaaS platform and SaaS application management. On the SaaS platform, we are now where the gross margin is good but not where it should be or where we want it to be. We have came from an original phase where we had invested, where we had a negative gross margin on that service. We have now, I think, a good gross margin on that service. My team, we are quite proud where we got to. There is some type of optimization necessary to get to the gross margin will then, which then will be margin accretive for the company. On the AMS service, I think that is in the beginning, there will be manual work. There will be most probably also the need to get the first clients on it. Then we will optimize, automate, getting more competitive, and getting better margins. There's one more question. I have 55 seconds on my screen. Yes. Just on your comments on the fact you've got 30% of support staff, you said located in either near shore or offshore locations. I mean, what would be the target by 2025, let's say? I have not that number. My expectation is that we relatively fast get to 40%. Does that mean there will be some associated restructuring costs in the years to come related to that? Well, it's first of all, that I leave also to the two guys, the CFO and the CEO. This is something we do as natural business by attrition growth. We will get very directly fast into that scale. Understood. Thank you. Okay. Thank you. With that, I give the floor to Jackie and technology-enabled business services. Hello, everyone. Thanks for taking the time to be here. I am Jaki Walsh. I am a VP of accounting and operations in Marc Schröter's world of product. Before we go into the presentation, I'm just gonna tell you a little bit about me as I'm relatively new at SimCorp. I actually come from a bit of a hybrid background that I think is really beneficial to the roadmap we're going on. Traditionally, I come from the buy side. I have a history of building and running middle- and back-office teams. I then moved into product, and then most recently have built service for technology, and then have been an advisor for target operating models for the buy side. I wanna talk a bit about what brought me here. Why SimCorp? Some of the themes that I've dealt with in my career, I've always trying to be disrupting the post-trade status quo. Why? It's considered a cost center. It has minimal investment. There are always manual processes and workarounds in there. Most people in middle and back office always wanna have more time to do strategic projects, more time to actually add value to the business, expand the business, et cetera. We don't really see that. I would say most of my career has been dedicated to try and make that happen. What next do I think about? I think about empowering the buy side. Why? Quite frankly, I'm sick and tired of the buy side having to be this square peg rammed into a round hole. Banking systems, banking operating models just being repurposed and converted to then put a buy side business into it. It doesn't work, and I don't really want to tolerate that going forward. What I wanna do is create scalable optionality. What that means is I've been doing it throughout my career, continue to do it, create market standards, create best practices, leverage that, centralize. That's exactly what brought me here. It was just, you know, a once-in-a-lifetime opportunity to come to a company that genuinely has been purpose-built for the buy side, that are looking at the full value chain and are taking 50 years of track history, and buy-side technology and services being their core business, and that's what I'm here to expand and take to the next evolution for the buy side. Let's get on and talk about that a little bit more. How's the market evolved? I'm gonna talk about those operating models. You know SimCorp, software company. Software, maximum control, maximum interaction. There's flexibility but embedded in there, but there's also a lot of support. Then we move into what else is that model? We've talked a lot in previous things about the models in the market. Then you have that traditional outsourcing. Really, it's a lift and shift. It's moving your problems from place A to place B. It doesn't change anything. In fact, what you'd have is limited flexibility, less transparency. What do we wanna do to change that? Georg Hetrodt's talked a lot about SaaS, so I'm not really gonna go more into SaaS. But what I wanna talk about is how technology-enabled business services are coming into place. We're taking all of those operating models and optimizing, making that best of breed operating model through technology. That's what I'm gonna be talking about for the next few minutes. SimCorp's journey, again, as you've seen, has followed that market evolution from being an on-prem, going to the cloud, software as a service, and now technology. It's truly aligned. Actually now what I would say is we're leading the market to the next phase of evolution. Accounting and operations, who are we? We're global. We have 200 clients using our platform already today. That platform has EUR 30 trillion, over EUR 30 trillion AUM being managed on it. We have one of the most diverse universes of instruments and asset classes of any provider, private, public, derivatives. 170,000 instruments already supported on our platform through operations all the way down to accounting. In that value chain, at points, not perfect in every point, but at points, we reach 95% STP settlements, for example. I wanna get that up to 98%, but we already are achieving a high STP level on an existing platform. I just want to hone in on the accounting. Europe is a complex world, has multiple, accounting frameworks. You take France alone, that has four different flavors of insurance. Then you have to do GAAP, IFRS, et cetera, et cetera. We cover 70 accounting frameworks, the largest universe, again, of any provider across platform or services globally. We're taking that platform and then we're turning it into more service. What does that mean? What does it mean to say outsourcing versus technology services? I'm just gonna say again, outsourcing, people-driven. It also has, often, a legacy stack of fragmented technology pieced together with loads of latency and duplicate datasets and reconciliation running all the way through it. What are we trying to do? We've already achieved having a people-supported platform. I'm not saying that we can remove people altogether. There's a lot of value and intelligence that comes from our clients and the users. What I am saying is that we can make technology first. We can take 80% of the market commonality. I think you've heard a lot about the 80-20 rule. Right? Instead of rebuilding everything 200 times, let's centralize. Let's create standards, best practices, and manage that using the technology. Let our clients and our own service users focus on where they offer greatest differentiation and value. Investigation, analysis, and making decisions. What we provide is seamless data interoperability, a complete book of record, increased data validation, and maximum automation. All of this leads to a reduced latency, it leads to reduced op risk, it leads to increased innovation and the cost effectiveness and a better time to value. That is the difference of using technology first instead of people first. One of the other things I really want to emphasize here is how we then continuously evolve. We own this platform. We built this platform. We're the best people to run this platform. We don't do it on our own. I talk a lot, and I'll always talk a lot about standards and best practices, but now we have our own users. Somebody keeps saying to me, we eat our own cooking, right? Now we have an in-house experience. Little things that our clients may just accept. This is not big enough to complain about. I ask our teams to complain about it. Zero tolerance. Workarounds, gaps, manual processes, no. We take feedback from our clients. We take feedback internally. Most teams are now working hand in hand with the development teams, and we just resolve. We identify what we need to do, we then resolve it, decide what do we need to do. Do we need to automate? Do we need to build? How do we implement that? We can do that through partnerships, we can do that through our own development. But the bottom line is, everybody who uses SimCorp benefits from this, our service clients, but our platform clients. 'Cause every piece of development that we do is available to all of our clients. That goes into what we call our strategic roadmap. What are these services? We have the data management service. You heard about that referred to before. That's being able to multi-party source, scrub, validate, create a golden master security master, and then provide advisory services on top of that. We then have our investment accounting. As I've talked about, multi-jurisdictional, IFRS, GAAP, local regulatory reporting, period end, all of your postings, accruals, et cetera. I could go on forever talking about accounting, but I'll move on to operations. What do you expect to be in operations? Everything post-execution. Confirmation, reconciliation, settlement, matching, life cycle events, collateral management. Everything you see in a middle to back office, we can cover on our platform and then supplement with a team that I'm gonna talk about shortly. Effectively, we've talked about SaaS. We've talked about data management. We've talked about operations and accounting. The strength of our front-to-back value chain, added with the power of SaaS and now BPaaS services, basically creates a single near real-time platform, but gives our clients optionality. Optionality to interface with the platform where they want to, as little or as much as they want to. To decide what do they deem as core business and what do they deem as non-core business. In that single platform, they can be running their core business and have SimCorp running the non-core business, the 80% commonality, all in the same place. Client and service provider, one team, end to end in the same technology. There are no duplicate data pools, no multiple recs, and it's not a black box that T+1 flushes and fills, which you see in quite a lot of the services out there today. This hybrid operating model is the only one at the moment where clients can really modular choose, how do I want to interact? When do I want to interact? But still have the services in the same location run by the experts who built that technology. What else do you need to make this work? Data interoperability. No process works without data. Let's talk about that a little bit more. Whenever a client has technology platform services, the burden goes to them. They bear the cost, the time, and the effort to interface, to reconcile, to monitor, to maintain, 24/7 if they're a global business. There are multiple entities that they connect to, counterparties, custodians, delegated asset managers. The noise just gets louder and louder. The cost increases and increases. I've spoken to one client who just the interfacing cost them EUR 1.5 million a year. They hadn't done anything with that data yet. Just to get the data, EUR 1.5 million a year. Never mind all of the effort of replaying processes when bad data creeps in. What has SimCorp done? We've basically simplified. We've taken that on. We've created a single superhighway to everything our clients need to connect to. Custodians. If you need to connect to five custodians, let's not do it 200 times. Let SimCorp do it once and put 200 clients down that pipe. Platforms, counterparties, we have created a cost-effective, scalable, collective intelligence of how to connect to the market and to make your business plug and play to everything that you need to. The ease of access to SimCorp, but also the market. That client I told you about, EUR 1.5 million, when they converted to this, they saved over two-thirds in their annual running cost alone, just from getting data. Now we have a complete, and that's a really big word for me, a complete operating model. You may have people say, "I have a complete system." You don't. They have pockets of data, agency lending somewhere, private assets somewhere, public assets somewhere. I have not yet, in my career, seen a complete book of record until we managed to pull all of this information in together into a system that is built for the front to back value chain. Basically, the extra thing we've talked a bit about, and you'll hear some more coming forward, is the open ecosystem. Even if there are these little pools of functions, data, and processes that need to happen outside, we can now bring that in, bring it into the core backbone of SimCorp to create that complete book of record. You have everything you need being drawn in simplistically and cost-effective, and scalable and standardized. It's not just my opinion. You know, there are independent views that I'm just gonna whiz through here, but 50% of personnel costs are, 50% of costs are due to personnel. We've had other independent surveys that say, "What do companies want?" They want their operations teams to deliver business insights and value. They do not want them redoing repetitive processes. What do they want to be able to do? They want the flexibility to decide where they service and where they interface throughout their value chain. Since we launched our technology-enabled services, we have already proven that we can make a 20% saving on FTE versus the benchmark. We've also done our own research, and this is a really proud moment. Never in my career have I done a survey, asked over 200 potential clients, "What are your strategic priorities right now? What's next for you?" I can genuinely turn around and say, "The top 7 things they said, we're here. We're present, and we're working on it." Basically, be that the fact that we have to have multi-asset. I can't see the text, sorry, so I'm gonna make it up. But our move to the cloud. One of the things, improving data and operations from multi-asset. We've been doing that for years. Optimizing processes, you know, through accuracy to data. We've been talking about data interoperability, and if you talk to me too much more, you'll be bored of data interoperability. Outsourcing. Now we can provide those business processes on the technology. Front to back, reduction of manual processes, digitization, we can talk a little bit more, and Zoe's gonna talk to you a lot about our front office coming up shortly. Every single point, it's not a strategy that we came up in response to this, it's a strategy that's been going on for a period of time, and there's actually fruition for our clients to move to these models. You may say to yourself, "Hmm, that's really nice. We believe you. You have great technology, but do you really know how to run that technology?" We have invested for years now, three years at least, to build a business unit for business processes. We have got experts from the industry who have experience in region. They understand the nuances of the business processes. They're qualified accountants. They speak the same language. 'Cause I'm not trying to create the Terminator, I'm just trying to make technology do the maximum it possibly can, so that all of the real experts that wanna work in our service unit or in our clients' units then can add value, and they can do, again, the analysis, the decisions, now understand the nuances in each market that needs a person to interact with it, and not do the 80% repetition. We have operations, accounting, data teams. Some of them have worked on Dimension in the industry before coming in and to work closely with us. Why? Because they're now hand in hand with our development teams, and they're building the next generation of how they want to work. Who is this for? You've heard Oliver talk about our total addressable market. It's the same. It's relevant to all of the clients that we have talked about, but actually it makes us more competitive. There are certain markets, North America, the UK. They really, really have an appetite for outsourcing. They already do. They also have a desire to make things better. They have a desire to get more flexibility, scalability, innovation. They have a desire to have a better complete book of record, and this is what this model does. This makes us more relevant, more competitive. Any point in the operating model that our clients are thinking of, we are present. We've had some really good success so far. Every segment, you can see this is just an indicative list of live clients that we have across globally on every segment we're targeting. These clients are live, by the way, this isn't a pipeline. We have clients live and running. Our data services have been running for a while. Our accounting services launched at the end of last year. Our operations services launched this year. Every single one of those services has a live client, multiple clients. My takeaway, I talked before, I wanna enable clients to focus on their core tasks. I wanna create scalable optimality, and we've done that by a hybrid operating model using SimCorp. Strong data interoperability. We've done that using our Asset Service Hub. We have a comprehensive global coverage in all variants of the operating model that our clients and prospects can be considering. We have a simplified ease of access to us and to the market, and that basically will improve our win rates. I'm the fastest presenter in the group. I will pause now, and there's plenty of time for questions. Hi. Thanks. It's Adam Wood from Morgan Stanley. I wanted to ask, I mean, we've seen a lot of IT services companies try to deliver BPO in the past, and I think, you know, they've tried to have scalable platforms and tried to get people to standardize. But one of the big problems is when they get in, the customers always find, "Oh yeah, the idea is we'll standardize, and that's great, but we've got this thing that's specific to us." Or, "Well, actually could you manage this little specificity?" You end up actually finding it really hard to get that standardization. Could you just talk a little bit about how you kind of sell and then manage the customers through that process to make sure you get that standardization on a platform so you're not going back to a people model, that you can really stay on a software-driven model, you know, that keeps the standardization that the customers might try to get away from? Yeah. Sure. I've seen that all throughout my career. The thing is, I absolutely don't expect anybody to sign up to one standard, one blind box. Clients are too different. What we have done is we've built standards with options. Where would you see options? For example, you don't need to understand a different security master for public data. Public data is public data. The reference data is what it is. You might want a different pricing waterfall. We've built that in as an optionality into our standard. From accounting perspective, accounting is a highly regulated business. We've gone out, we've independently checked, do we have the 80% most common interpretation of that accounting? Everybody's chart of accounts has certain nuances in, so we have those built in. The greatest thing about doing this on SimCorp is it is a technology can literally do cartwheels. You can make it do anything you want to. We have literally. We don't have the problem of we can't make the technology take into consideration those client nuances. What we've done is though we've built a framework where core will say, "This is solid. Every client does this the same." As Gail said, there's some configuration that allows optionality, but the system can still do that. The difference between us and other providers is when they've had to take on those nuances, they've had to do it in Excel, really, and I don't have to do it in Excel. Dimension has the ability to take in those optionality moments. Now there is a limit. You know, I'm not gonna say to the clients, "You can bespoke, custom-build the whole system from scratch." What I do find is actually in all of the conversations with our clients, they wanna get to an outcome. That's what they really wanna do. They wanna get to an outcome as fast as possible. I've had clients come to me that had T plus 15 accounting frameworks. I nearly fell over. We agreed to T plus 4, and so far in the last six months have averaged T plus 2, right? How did we do that? We made slight changes, but when we told them, "This is, you know, you can get this approved by an auditor. This is compliant. This is the market standard. It gets you the same outcome, but faster. It gives you more flexibility for what you do want to do for your future business, and the clients are eating that up, and they are willing to make that change. Hannes Leitner. Hannes Leitner from Jefferies. I think one of the paradigms was always that SimCorp can be programmed for every use case out there, and I think rather more an obstacle is the go-to-market, basically talking to the client and finding the right path from the initial day till the other one. You talked now about different programming, different optionality. How easy is the process with the customer to go through that process and then to implement that? That's one. The second one is, given the in the beginning, such spike of outsourcing might demand much more headcount, so can you maybe put that in context to the headcount evolution expected? Sure. To the first one, as you said, yes, we can customize SimCorp a lot, but what we've also done is invest heavily on what we call our standard platform. That is, you know, as I said, that 80% most common interpretation of whatever processes, regulations, et cetera, there are. How easy is it to move that? It's basically a data migration because it's not a reconfiguration. It's not a whole, you know, C and D, how do you want to configure this? We have defined that. We know. The clients actually aren't struggling with that idea. You know, I've come from the background. I've had the experience and all the war wounds of what can go right and what can go wrong, and so have the people in our business unit that are making these recommendations. We can back it up with benchmark data of track record of, you know, how you do it another way. I think, A, the clients are listening, B, the migration is really easy because it's a data migration which SimCorp can do and has done every day of the week. To your second question. Sorry, repeat the second half. Headcount. Headcount. Right. Obviously, when you're starting a business process unit, there was an increase in headcount. As I said, we've invested in a business unit. We've invested in a significant number of headcount to kick that off. The thing is the scalability. You know, every client that we bring on isn't a spike in headcount, and it's not gonna just insurmountable growth. As I said, we did a market benchmark of what clients and what asset service providers can run services and volumes, et cetera, within the market. We looked at that median, and we said, "Well, if we can't do this at the median, we have no place in being here." As I said, we're less than a year in on our operations and accounting service, and we've already outperformed the benchmark by 20%, and we're gonna keep going. I do believe people are needed. You know, they do add value and nuances to the process, but I absolutely don't think we're gonna turn into this big people kind of model that the traditional asset service providers do, and we've already proven that. That's mainly because of the automation, because we don't have to repeat processes or check multiple pockets of data. It's seamless. The first three accountants that we hired said to me, like, "I'm not sure why you hired me. What have I got to do now?" Because we had automated a lot. It's not rubbish. It just is what we've built it to do. Hi. Lukasz Wojcik from Goldman Sachs. Two questions. Maybe first one on competitive landscape. How often do you see Clearwater Analytics and then Fusion in RFP process? And sort of what are the winning rates that you have versus them? And if you lose, what is the reason for that? Is it more on the pricing or is it product capabilities? And then second question on this T+13 moving to T+4, T+2. Some of the competitors are saying that the product is going more towards real-time view. Is that something that you offer as well, and for how many instruments, and sort of what are the plans going forward in that front? Absolutely. With regards to competitors, I would say those type of names in competition, when we were technology and they were able to provide a service, we were losing a few RFPs. I don't have the exact number, but, I would say we were on the losing hand. Since we've come into the market with our services based on technology, we're not really losing against those type of names. One of the biggest reasons why is because we're not a one-trick service. We're across the value chain. You can have the platform in the front, you can have the data, you can have the operations, you can have the accounting. None of those competitors cover the value chain the way that we have stood up to cover. I would say the market's getting used to a technology firm standing up and saying, "We're services." You know, that takes a little bit of trial and error. They wanna dip their toe in the waters and have a look and smell of us and say, "Are you serious?" I think now we're getting to the point where they're, "Oh, you are serious, and you are showing results." We're on the winning end of that competition repeatedly. With regards to your second question, I've got brain lag, I see. Which was? Moving from T+13 to sort of T+0. Yeah. a real-time view on things. When I talk about, like, T+2, I'm talking about finalized, accountant signed off, period end reports. Actually, we're a real-time system. If a trade comes in, clients can see it. If we've done a reconciliation and we're working through resolving those breaks, the clients can see it. The clients have intraday, near real-time transparency to everything in our system. All of our reports update daily. Most of the reporting in middle to back office is a kind of end-of-business day. At the end of every business day, we're there. It doesn't matter if your accounting is weekly, monthly, quarterly, you will still see intraday updates, daily reporting, weekly reporting, et cetera. What I'm talking about in that T+2, T+15 is a final signed off period end. This is done and dusted and validated. We do the reconciliations real-time. Thank you. I'll be in the coffee area if you have any questions. Oh, lunch. Sorry. Lunch, 2:00 P.M. Please return from lunch. Okay. Yeah. Okay, we are good to start. Shall I give everyone a couple more seconds? Let me introduce myself. I'm Zoe Sheehan and I'm head of the product for front office. Why we're discussing front office. It's obviously one of the linchpins in the front-to-back proposition of front-plus services. A little bit about myself. I'm a newbie like Jackie. I joined 18 months ago, and prior to that I was also vendor side. Actually, I probably had a perception of SimCorp front office. Maybe some of you still harbor that perception today, but let me dispel it in a minute. Then I moved to the other side of the fence, and I worked for one of the leading consultancies in this space, where I ran selections and target operating model designs, and I evaluated SimCorp versus all of the other tier one players in this space. I stopped and I went, "Okay, they got a huge amount of complexity. It's really functionally rich. There's some tweaks to get it right." I was majorly impressed, so I came on board, and now I have to eat those words and live by it and really unlock that potential. What am I gonna talk to you about today? There's three topics: essentially empowering the front office, empowering the ecosystem, and the superior customer experience. Those three culminate in actually enhancing our share of wallet, improving our competitiveness, and ultimately delivering on increased win rates. Let's dive in. What do I mean by front office? Let me bring you back to my original comment. Let me dispel any myth that we are not in the front office. We are in the front office. Today, 75% of our clients leverage one or more of our front office elements. Right now, there's 20 clients in implementation of other elements of the front office. We are here, and we are pushing, and we will continue to push in the front office. What do I mean by front office? Let me fit that into context. The front office, we think of portfolio management. What am I holding? How I'm exposed? How am I performing? All leveraged on top of SimCorp's strength. We are known in the market for our real-time IBOR. We are the only real-time platform. That means real-time positions, real-time performance, real-time analytics, real-time exposures. If the markets move, I know. Do I know what it means in my portfolio? Absolutely. That's what separates us from the others, is that broad range of asset class coverage. Public, private, liquid, illiquid, derivatives, alternatives, natively embedded from the ground up in our front-to-back platform. It's the exposure, the proliferation of those critical data points, be that analytics, be that performance attribution, be that my position. How many can actually stand here and say, across all of the competitive landscape, that I know my exact cash number at any point in time? When the UK had a little bit of a turn last week, did your portfolio move in the exact same time? I can guarantee not. I want to know what I'm holding, how I'm exposed, how am I performing now. We are the only vendor that can do that, not yesterday. We're a really strong market fit, including for North America. Why? Up until today, what we've done is invest significantly in the underlying architecture, which enables scale and volume. If you think of the North American market, you think of the M&A that's happening at the minute, that's the absolute prerequisite before you start laying on business functionality. Then in terms of business functionality, we have the sort of North American tilt, which I know many of you are interested in. We worked with a number of clients to close those gaps. Realize some of the nuances that had to be in the platform. Today, this is where we stand. Where are we going? What is the laser precision focus that we're going after? What we want to do is be the enabler. We are a service provider. In doing so, we want our end client to focus on value creation. We're not here to tell you how to manage money. That's not my job. Am I gonna make it easier, quicker, faster, help you meet your peers? Absolutely. Way to do that is also to bring insights and intelligence in real time. I want faster, smarter, but actionable analytics. This read-only view is somewhat redundant. It's one thing to look at the portfolio, it's another thing to make decisions, act on them, and bring them to market quickly. In times like this, where there's muted returns in the traditional markets, I wanna be able to have product innovation across all asset classes. I want to set up thematic type strategies, and I wanna do that across everything that's available. We can do that. As Jackie said, we have over 170,000 instruments held within the platform today. What does that really look like and what does that tangibly mean for the client and then for us? If you look at this from a customer perspective, right? Where they want to be in the market, there's an aspect of seeing a single book of record in an asset class. Then you move into the multi-asset capabilities, then you wanna leverage on the tooling, the capabilities to optimize, to run back tests, to look at optimizing for maybe ESG capabilities, to look at it in terms of what it means for different constraints for me. Then where are we gonna go? To outperform. A customer wants to, A, outperform the market, but B, more often than not, wants to outperform their peers. In order to do that, you want that intelligence, those insights. 20% of alpha generation today apparently is driven by alternative datasets. That's only going to magnify in the future. We are uniquely positioned because today we sit at 0.3. Yesterday we may have been between 0.2 and 0.3, but we made that investment in the underlying architecture, and we're also leveraging partners to give us that competitive edge, and we're pushing heavily towards 0.4. What are the other realizations and newest capabilities that you may not be aware of in the front office? Leveraging the cloud. We have natively rebuilt performance analytics in the cloud, and that gives several things. Dynamic analytics on the fly to the portfolio manager, to the performance manager. I'll give you a key example here. We have an EUR 800 billion AUM client. 62% of their data storage is attributed to performance. By moving on to our cloud analytics, that reduced by 90%. That's real cost saving. That is real power in the hands of the user. We will continue to expand the cloud capabilities. I really wanna differentiate here between cloud, which is where we're going in the front office, and the cloud-native applications and hosting. Lifting legacy applications and moving them into the cloud. There's a very clear distinction. On top of moving into the cloud, what does that mean for us as an organization? It means operational alpha, scale, flexibility, elasticity, and ensuring that we're building for the future, right? We are resilient. There's no technical debt. We have the capabilities to be nimble, to be agile, and to allow for innovation and quick time to deployment. This is a fantastic new capabilities that our clients are able to leverage. When you talk about the front office, you obviously can't miss talking about ESG. The difference that we have here is actually a testament to the strength of our front-to-back integrated solution. We're data agnostic, we're ratings agnostic. But what we've done is built it from the ground up again, throughout all of the permutations that you have in the front office, be that reporting, be that analytics, be that optimization with our partners. You have the capabilities through the full life cycle to leverage the power of ESG. What's in it for the front office? I talk about sort of all these great capabilities. Coming back to the real-time view, real-time analytics, real-time lens, real-time actions and decisions that I can make immediately through the platform. Be that on cash, positions, corporate actions. I can see the subs, reds, estimations. Unlocking new possibilities. Do I wanna diverge into new asset classes? Do I wanna test in terms of new strategies? Do I wanna stand up new products? Absolutely. But fast time to market. I don't want it in three months. I don't want it in six months. I want it in a reduced timescale, and that's what we can do. Something that's often washed over is also with all of these real-time capabilities in a truly integrated platform, you can be more proactive as opposed to reactive. My compliance is running on all of that real-time data. I'm making decisions at a point in time on all of that real-time data, and we have all of the alerting capabilities within the tooling to signify if you need to take action on something. That's empowering the front office and what that means. There's a second tilt to this, and what does that mean from an ecosystem perspective? Here you can see a summary that's been presented multiple times today, and we have 58 partners across the ecosystem and across the value chain. A core strategy is working with partners to leverage the strength and the backbone of SimCorp Dimension with our partners. We will provide the 80%. You append fintechs and best-of-breed solutions where it makes sense to make it more competitive. If I take a core example of that, if you think around the electronification of fixed income and OTCs, I want the ability to try before I buy. I want to stand up connectivity to some of these new fintech partners. I don't wanna build the integration points. I don't wanna test, et cetera. Also, when you think about it, I also want the ability to switch it off. You have the optionality to try, but you have the optionality to be agile and to move, and we give you that all within the guardrails of SimCorp Dimension. It is the same proliferation of the data through that ecosystem. There's no breaks in the chains. It still has the high level of data integrity that we hold ourselves accountable in the front-to-back integrated platform. There's no better example of this than there is in the alternative space. Here you can see that across the value chain for alternatives, we had leveraged multiple partners. What that gives, and it's a seamless integration to the end user. They wouldn't know, they wouldn't care about what sits under the hood because we've done all of the hard work. We have the richest and most far-reaching sophisticated capabilities within the alternative space. Why? Because we didn't build it as a bolt-on with a reporting layer on top. We build it from the bottom up, meaning from the data ingestion through the surfacing, through the analytical generation, through the workflows, and then expose that to the front office user. We are not stitching things together and making them look pretty on top. Then it's not limited to just alternatives. When we talk about sort of openness, we are truly open and in some core critical areas. This year we announced our partnership with Axioma, and that has two different, permutations. One is in the analytics space and the multi-factor, which is now the de facto sort of thematic type portfolio enrichment capabilities that are needed, and it's in the portfolio optimization. We also have other partners, StarCube, et cetera, in this space, and we will continue to be open. Why? I don't need to go out and be the best at optimization. It's there, it exists. I just need to make it capable and achievable to others and make it consumable, digestible all within the same seamless front end. We want to be able to leverage the best-of-breed partners in areas such as EMSs. Today, we have a very strong and successful relationship with TS Imagine, but we will open that up. I'm not going to dictate to the client where you find liquidity and who's best based on your asset classes. I don't care. Will I actually save you the burden of that connectivity? Will we provide services to ensure that it stands up, that it's available, that it's reliable? Absolutely. Other areas around regulatory reporting, ESG, et cetera. How do we achieve this? I think you've heard a little bit about it today, is through the use of APIs. The reason that we've chose to use APIs is because we have the foundation, the strong underlying capabilities to do that. We use those APIs to work on an event basis and contact and talk the same language as the partner solutions and have that open dialogue between the technology under the hood, et cetera. You can only do that whenever you have the strength of the underlying platform. A real example of this, whenever I talk about the power of partnerships and that we're stronger together, is a particular client case. It's an EUR 85 billion AUM asset manager. They were somewhat unique in terms of the asset class coverage and what they use in the front office. They have liquid and traditional, but they also have fund to hedge fund, and they have a systematic trading desk, and they trade quite significant derivatives on our front office. They said, "We don't want to use your risk." That's okay. Guess what? We have a partnership with Axioma. Because of the native embedment and integration and interoperability with that partner, we were able to still help the client realize the total cost of ownership reduction, and we've replaced over 70 platforms in their landscape today. That client is about to go live. That shows that together, when you take the strength of SimCorp Dimension and you take the strength of some of those best-of-breed capabilities, we are more competitive and beat those other peers. At the start, I talked about unlocking some of the capabilities that SimCorp Dimension has a very functionally rich platform and capabilities and workflows, but there was a 10% that needed tweaking. That's coming through the superior customer experience and the native cloud front end, which we've already started on. It's all well and good if you have the rich capabilities, if you've all the asset class coverage, but if I can't intuitively use it, if I don't have user operational efficiency, it's worthless. I need the ability as a user to pick up any asset, any trade it. I want automatic hedging, and I need to be able to do it in a seamless, easy way. We need to make the complex simple, and that's what we've started to do. We've put this on top of our performance analytics cloud solution today, and we will be further expanding this out. What does that mean? It means there's a dynamic front end, and it also serves the user of today. The user has changed. It is not the portfolio manager of late. It is a quant. It is a digital native. It is someone that has always been technology first. They don't want static screens. None of these HTML5 dashboards on top of it making it look pretty. They want a new experience that they can define their workflows. Definition of workflows and flexibility in a front end doesn't mean flexibility in the code. Absolutely not. That's what this will achieve. Bringing it all together, and I really flew through that, but guess what? I'm an excited front office person, and we don't really waste time on data and talking. To that, what are the key takeaways? Expanding the share of wallet through product evolution. There is always a product element to selling in the front office. We need to ensure all the functionalities are there. As it moves at such a fast pace that we stay ahead of the markets. We do that by close connectivity with our clients, with the market, with the industry. Enhance competitiveness by leveraging the core and the strength of SimCorp Dimension with all of our partners and with those Fintechs in places that it makes sense. Through the seamless front end. That means that you can define your ecosystem as a client, and you define your version of the truth. Meaning that that's an easier consumable product to the end client, and much more competitive and compelling. The superior customer experience. We need to make the complex simple, and we are doing that. Essentially democratizing the power of the platform and the services. Front office, coupled with what Jackie illustrated earlier, is a very compelling event and much more competitive. If we can have the real-time operational and accounting services with the front office, that is unique. That is an ease of consumption, ease of adaptability, and a reason to buy SimCorp over the peers. I have a couple of minutes if there's any questions? Hi, Zoe. In which parts of the front office platform would you consider yourselves to have the most weakest spots, or maybe where you're playing the most catch-up versus peers, particularly in North America? Yeah. I don't think it's a secret that it was always the order management space. Actually, to address that, we made significant investment in terms of the underlying architecture to support that, to enable sort of the quicker time to market of the production business functionality that we need to bring to clients. That's a small element compared to where we're very functionally rich, which is in the portfolio analysis space and the portfolio construction space, and the rich in depth of capabilities. We were playing catch-up, but I would say the delta is much less than what it was in the past. Thank you. Hannes again from Jefferies. I remember very well four years ago, front office was one of the core presentations again. Back then, there was a lot of discussion around, for example, what is the internal opportunity. You mentioned 75% of Dimension customers is roughly 150, 20 more are onboarding. But then what is between that, the kind of opportunity of those 150, you know, like in terms of functionality. Do they all use already end-to-end of front office completely integrated globally? So what is the whole opportunity from there? Maybe, I don't know, if it's possible to quantify that in revenue terms. As a product person, I'm not going to quantify that, but the whitespacing will be covered by Oliver. There is obviously an opportunity for whitespacing, and that comes down to some of the newer capabilities. If you push into the boundaries of performance alternatives, 35% of our client base use the alternatives today. With the reallocation in the market, there's obviously a huge opportunity there today. We consider alternative as part of the front office packaging, et cetera. There is absolutely an opportunity. It's also been a default because of the large transformational change. If you think that you do your front to back, a lot of clients would prefer not to do the front and the back office at the same time, given the complexity and the difficulty. Some will take the middle and the back office first, and then we see the opportunities as the inroad on our core strength, and then permeate up through the front office. That's definitely something that we're focused on. Just a follow-up on that. In terms of the customers on those 150 which are on, they are all on the latest version of the front office? There is only one version of SimCorp Dimension. There's only one version. Yep. No more questions? Okay. With that, I shall hand back over to Oliver. Thank you very much. Thank you, Zoe. All right. I'm gonna take you through now a bit of a deep dive into all of our markets, and regions. I'm gonna do this in the same format for each region. We're gonna start by looking a little bit about that market opportunity and give you an overview of what we do in the market. I'm then gonna talk about the potential, both with the existing customer base there as well as the new logos we see. I'm gonna sum up a little bit of the state of the business in each region, so our point of departure. I'm going to cover why we believe we can continue being successful in each of those different regions. If we start with APAC, which was my home here for five years, this has probably grown quite a bit since the last time we did this 4 years ago. You can see now we've got 20 customers across the region. For the eager-eyed, you'll also see that we've recently announced a new customer in Malaysia. I think one of the points on this slide that I'd like to highlight is that we now have more than 300 employees spread across the region. That includes our delivery centers in Manila and also in India. They represent about two-thirds of that number. But what it does mean is that we have the largest presence of any of our competitors in this region. Why is that important? I think the fact that those people are based in India and the Philippines, APAC is a relatively cost-sensitive market. We now have the ability, through those people, to actually be really competitive when it comes to when pricing local services. Let's look at the potential in APAC. This is the slide from before. I just noticed I had a few questions in the break about the EUR 6.5 billion number that I shared in my first slide. I think it's just important to know that while we see a big potential in the BPaaS services, we haven't quantified that yet. We have not put the BPaaS opportunity into that EUR 6.5 billion number, just to be very clear. I had a few similar questions there. Market potential for APAC. This is just over 200 different accounts spread all across that region. That represents around 15% of the overall new business opportunity for SimCorp. We also see it's the region that is growing the fastest fundamentally. Another point about this market is predominantly asset owner focused. Yes, there are some asset managers in there, and yes, we have won our fair share of asset managers in APAC, but predominantly, as you look across the region, these are pension funds, these are insurance companies, these are central banks, these are sovereign wealth funds. I've put here an appetite for SaaS is balanced. I think that's quite interesting. As you go through the different countries and regions in Asia, different regulations sometimes mean that customers demand on-premise installations. That's a little bit different and nuanced compared to our other regions. In fact, that actually turns out to be a competitive strength of ours as we have very few competition being able to deploy on-premise. Active pension market. I think you've got two of the top five pension markets in the world based in Asia with Australia and also Japan. That represents a lot of opportunity. Finally, cost sensitivity. I covered that. I think all markets these days are sensitive to cost, but APAC is maybe a little bit more nuanced. Our point of departure in Asia. Where are we? As I said, we've got 20 customers spread across roughly 9 countries. And we have a fair number of those already on SaaS, 35%. So while that number is a little bit low, it actually includes some of our largest customers in the region. The service is mature, and it still represents quite a good upsell possibility as we move the rest of those customers onto our SaaS offerings. The region's also proven from a delivery track record perspective. Apart from the customer we've signed last week, all other major customers are now live. We've taken four big projects live within this year. When we look at the history of expanding our share of wallets with customers in Asia, of course, some of that is coming from the SaaS transformation, some of that is coming from expanding the scope, customers moving into the front office or adding alternatives, turning off some legacy platforms, or cross-selling them with the data care or data management and client reporting office. Finally, from a pipeline perspective, in Asia, we bracket that into three different categories: Australia, which is again a predominantly a pension market for us, Japan, and then the rest of Asia. Maybe just a few words on Japan. For those of you that are aware, it's a market that takes some time and some persistence to enter. We've been working on that for the last few years, and are now at the point where we're really confident that we're gonna start to see some growth coming into SimCorp from Japan. What does it take to win in Asia? Why is SimCorp gonna continue to be successful here and continue that growth trajectory that we've seen? I think first of all, the regional presence. As I said, we've got 300 people in region. That's larger than any other peer that we see. We also have some of the best reference customers in the region, whether that's pension funds, whether that's sovereign wealth funds, or even on the asset manager side. We've got really strong names that can help us grow our client base there. We've got a strong offer fit for the asset owner sweet spot. We've seen that all over the world, and especially in Asia. The brand perception and the market awareness. Despite not being in all of those different countries, I think we've proven time and again over the last few years that that doesn't hold us back from entering new countries. The office in Sydney was created just over 20 years ago, so it's a region where we've been committed to for a long time. From an execution standpoint, obviously being close to the customer is really key. It's great to see Asia opening back up again. Our people can start traveling again, meeting our customers, meeting our prospects. We're seeing that result in a lot more activity. We've invested also further into the sales team to make sure that we've got the right people in the right places to cover the full region. Then finally, we believe we've got a unique opportunity with the Challenger joint venture to also be another distribution mechanism to win more customers in APAC, and especially Australia. Maybe just a couple of recent proof points that sort of back this up. First of all, a customer that signed last week, our first customer in Malaysia, and it's a little bit funny that Malaysia is so close to Singapore, yet it's taking us a while to get there, but that's a full front-to-back asset manager offer that's come in, asset manager customer that's come in on our SaaS platform. The other proof point here is the JV that we've done with Challenger. We think that's really testament to our value proposition that they decided to partner with us, and they also see the market opportunity that we see in Australia. What do I want to leave you with when you think about Asia? I think primarily it's our presence in the region, both in terms of the number of people that are working for SimCorp in Asia, but also, the indirect people that we have working in the JV with 140 people there. I think it's also important to say the market is back. We have over the last few years seen a little bit of dip in activity due to COVID, due to the fact that all the travel corridors have been closed. It's really encouraging to see that that's back open again, and we're starting to see the pipeline pick back up. The last point is we still believe that APAC is gonna be a really significant driver of new business growth in terms of volume for SimCorp going forwards. If we move to Europe or EMEA. It wasn't possible to fit all the country logos on this slide because we've got customers all over. We decided instead just to focus on where we've got a presence. You can see here that there's over 187 customers, and you all know that this is really our stronghold. This is where we have the biggest concentration of customers. You can also see on the bottom right there our presence now in the Middle East and also in Africa. Africa has been included with a new client win. Let's talk about the potential for new logos in EMEA. This is more than 600 accounts. That equates to roughly 40% of our addressable market. We see this market growing slightly less than APAC. For us, when we look across EMEA, there's opportunities in all of the different countries, but we really see chances for significant growth here in the UK and also in the Middle East. I think one of the points that Jackie touched on a little bit was the geographical complexity, and we see that time and time again, and that's really a competitive differentiator for SimCorp. The ability for SimCorp to natively handle all the complexity of the different European regulations, the different accounting treatments, that's something we've done for many years. The last one, a little bit unlike APAC, we see much more interest in new customers coming in directly onto SaaS or SaaS plus BPaaS. We see a little bit more of a preference in this market for that. Where are we in EMEA? As I said, 167 customers, or sorry, 187 customers spread over just over 20 countries. A relatively low penetration rate of our SaaS offerings, but again, in a similar way to Asia, I think our largest SaaS customer globally is actually located in EMEA. Again, it's a proven matured delivery model. The track record of taking customers live, we've delivered that largest SaaS transformation. We've also taken a number of new customers as well as customers that have expanded their scope with SimCorp live, already this year. From a share of wallet perspective, obviously the opportunity for those existing customers to move with us on their SaaS journey is very large. We also see us having a fairly good track record of rolling out new modules throughout the European customer base. I think ESG is a good example. I think it was the most sold module across the EMEA client base last year. Also, Alternatives represents quite a good potential. Finally, on the pipeline, we continue to see good traction there, both with the existing customer base, but also in generating new logos. What does it take for us to continue winning in EMEA? I think, first of all, we have a really strong customer base in every different vertical, whether that's pension, whether it's asset management, whether it's insurance, even the central banks here, we've got customers in every different part of those verticals. I think we've proven also that we've got a very strong offer fit across all parts of the value chain. We've got a good reputation. In fact, just this week, I was meeting one of the consulting partners here. I asked them that question about their perception of SimCorp as a brand. Their answer was, "You do the hard, complicated stuff really well." Which is great, but that's still an area where we want to invest further and make sure that we're recognized in the market, not only for doing the hard, complicated things, but also for our front office capabilities, also for our BPaaS capabilities. In the Middle East, we gave an award to one of our customers just before the summer at our IUCM event, from the Middle East, due to one of their transformation projects expanding their use for SimCorp. That's actually really helping us. They're a flagship customer in the Middle East, and we see a lot of potential in that region. From an execution standpoint, I think two years ago, we merged EMEA. It used to be various different countries. We're now really starting to see the benefit of that scale. That means we've got salespeople deployed in all of the different countries, but we've actually organized the presale support, the customer success teams by vertical. What I was speaking about this morning about really specializing in industry verticals has already happened, in EMEA. We've invested into the UK. We've hired some new salespeople this year. We've got a new team. Obviously, the strength of the relationship here with the existing customers. Finally, this is the most matured region for our channel play customers. We've got a number of those, as I showed you this morning. We also see even further potential for doing more strategic partnerships, like I showed, this morning as well. A couple of recent proof points. Again, just a few weeks ago, we signed our first customer in Africa. This was a central bank, again, coming to us, for the full front-to-back scope. On the right, we signed a really significant expansion deal with one of our insurance-linked asset managers. That is interesting because that was a move into the front office. It's them taking our risk, our alternatives, our ESG functionality, as well as the SaaS regulatory reporting offer. Again, a testament that our customers are seeing that the front office is capable and that they're expanding their share of wallet with SimCorp. What do I want to leave you with from EMEA? There's ample opportunity for growth here, both within the existing base, but also in new logos across the region. Obviously, a big driver of that growth is this on-premise to SaaS transformations. You've heard a lot about that today. And finally, that mature distribution network where we're not only selling through our direct sales team, but we're also using the channel play and the strategic partners to bring new customers into SimCorp. Finally, North America. If we look at where we are in North America, we are over 250 people now spread across New York, Boston, and Toronto. We've got customers spread across the region, as you can see here, and that customer count now is up to around 64. As we've spoken about, North America represents the largest new business potential market for SimCorp. It's also growing quite a bit. As I touched on earlier, that TAM expansion, especially in North America, has happened because a lot of those customers that were just underneath that 10 billion threshold have grown and have now moved into the TAM. It's one of the areas, one of the regions that has grown from a TAM perspective, the most significantly. We see a solid underlying growth in that market. It's also, I think, fair to say it's one of the markets that really does focus on core business plus outsourcing, which is why we believe our BPaaS offer is going to be successful. The last point here, innovation front runner. A lot of trends that we see start in the U.S. It was our first SaaS customer. It was our first data management customer. It was our first investment operations customer. We see those trends continuing. We also think that's one of the reasons we're doing the ecosystem partnerships. We see a lot of innovation happening there with our ecosystem players in North America. Where is the business? What's the point of departure for North America? As I said, 64 customers. That's split between asset managers and pension funds, with less than 30% here actually already using the SaaS platform. Again, a good opportunity there within the base to move them onto SaaS. We've also had a very strong delivery record. Seven major go-lives this year, including the, I think the deal we spoke about earlier, which was the full front to back plus IOS plus IAS that was signed this year and already delivered and already live. From a share of wallet perspective, opportunity in BPaaS, opportunity in SaaS, we see continued demand for expanding with our alternatives offering, and also into the front office. I got a proof point on that, next point for the It's not about you. Sorry. Okay. Pipeline. I think it's fair to say we've seen a bit of drop in activity over the last few years in the US. I'm happy to see now that our activity levels are back to the same state they were pre-COVID. In fact, the way that we measure that in the early-stage pipeline, North America has actually already hit all of their goals, full-year goals already year-to-date for generation of early-stage pipeline. We see a really good demand in the US and we've got a really solid pipeline there. From a platform and a brand perspective, that ecosystem story, the BPaaS story is really resonating. We're starting to hear more and more people recognize the strength of that core platform. Then finally on this slide, the renewals business. I think you've all known that we moved to that subscription some time ago. We're starting to see those renewals and the impact of the renewals come up. In North America alone, we've renewed five of those contracts already this year. It's actually interesting when we see those renewals, typically, they are renewing for longer periods, or they're expanding the scope as part of that renewal, which is, again, for us, a great indication of the relationship. What's it gonna take to win in North America? We believe we have the strongest offer fit. With the investments Zoe spoke about in the front office, what we've done both with the SimCorp platform, but as well as combining it with the strength of the offers with Axioma, with TS Imagine, we believe we've got the right offer fit, to service the North American market, especially when you then add the BPaaS service layer on top and you combine the BPaaS service layer with that full front to back. We believe that offer really resonates with the North American market. From a market awareness and a brand perspective, I think it's fair to say we have some work to go. This is an area where we're going to invest more, especially on getting people to understand where we are from a value proposition on the front office and BPaaS. We think we have a very solid reputation on the middle and the back, and we're gonna invest further in making sure that people really understand that SimCorp is able to play across the whole value chain. Similar to the other regions, we've got reference customers in pretty much every vertical, whether that's insurance, whether that's pension, whether it's asset managers. We have really decent world-class names using SimCorp in North America. From an execution standpoint, I spoke this morning about some of the transformation we're doing with the sales team from both a capacity and also a capability perspective. We're investing in that significantly in North America, and we've also hired primarily 'cause we see quite some opportunity, a dedicated partnership manager in North America to look after all the partners and to make sure they are fully aware of SimCorp's value proposition. Finally, from a distribution perspective, that's an area that I indicated this morning that we're continuing to explore. Stay tuned for some news on that one. Last point, as Christian mentioned, any M&A activity is likely to have a North American angle. Why do we believe in all of this? I think a couple of proof points. First of all, this year we've signed a new customer in North America, front to back asset manager, including the BPaaS offerings. We spoke about that earlier. Probably some new news here, just last week, we've had a significant expansion deal with one of the U.S. state pension funds where they've signed with us to move into the front office and retire some legacy front office platforms. Again, another proof point, we believe that our front office is resonating in North America. If I want to leave you with three things from a North American standpoint, I think first of all, we believe that North America will be the largest driver of new business growth, ARR growth for SimCorp going forwards. We believe that we've got the platform and the offer to service this market, and we're ramping up investment to make sure across all areas of sales and marketing, so the market is aware. I've got a little bit of time for questions before we break for coffee. Then I think the final session is gonna be Michael, which I know you're all looking forward to go through the financials. Yeah. This is Klaus Hammer from Nordea. I have two questions. The first one goes for each of the regions. What are you actually doing on the sales side? Mm-hmm To, you know, convince potential clients of all the great stuff of SimCorp? Okay. That's a good question, and there's actually a few different threads to this. There's one thread is the capacity and the capability of our own people, right? As I mentioned this morning, our salespeople are going in and we're not selling features and functions, we're selling operating model transformations. We need to make sure first and foremost that our people are able to have those strategic dialogues with our customers. But that's only kind of relevant if you can get to the table. There's also an effort being put into the whole market awareness perspective. Now, this can come in several different forms. We work a lot with a lot of the large consulting companies. They're usually in with some of these accounts advising on the target operating model before maybe SimCorp is talking to those people. That has been an area where historically we have not really invested a lot of time into educating those types of market participants around our offerings, so we're doubling down there. I think the final kind of thread outside of the typical kind of marketing activity you can expect is working more and more with the custodians. The custodians, obviously, they've got deep networks into all of the regions, and we have different ways of working with different custodians. That can just be a pure interoperability tech play, or as we go up the stack, as I mentioned this morning, for example, the State Street relationship. We have a State Street, we have interoperability, and we have everything in between. But for us, it's really important that all of the major custodians are fully aware of SimCorp's value proposition because they are also talking to the customers, which in the end are the same people that we're looking at. That sounds great. The way you are actually managing or working with the salespeople, the incentives or, you know, the KPIs, is that the same today that it was three years ago? You know, order intake from new clients, I think could've been a little bit better. If we go back to the CMD four years ago, I'm pretty sure you are below those ambitions. Are we just seeing more of the same, or are you actually day to day do things differently? I think the main difference on this one is what we are selling is changing slightly. Four years ago, we were predominantly selling software, right? Whereas now we're selling a mixture of software and services. In terms of the way that we are compensating our salespeople, it's on the whole stack. That, I think that's probably the major difference. The salespeople are, you know, up to that challenge, so to speak. Normally, when you need to sell a different outcome Mm-hmm. You need a different skill set, you could say. Yes, that's exactly what I spoke about. When I say we're investing in capacity and capability, that means that we are uplifting some of our people, and we are bringing new people into the business. Selling a service is a slightly different skill set to obviously selling software. You can expect to see new people in SimCorp, but also an uplift of some of the existing people. Okay. I said there was 2 questions. Okay. The second one is the first bullet you have. North America will be the largest driver of new business. Yeah. Nothing about you, but we've heard this for 15 years probably, when you got the first deal in 2004. Mm-hmm. What is actually different this time? I think what you can say from a new business generation is we've got now the offering, the investments we've made into the front office, that front to back tech stack plus the BPaaS layer, we believe now is really resonating in North American market. Okay, thanks. Everyone wants to hear about the finances, right? Why has SaaS transition been so slow in Europe? I mean, I mean, 15% in your largest market seems quite low. We have quite a few customers, huh? There is. I think this goes back to the point Christian was making earlier about us being ready to take that capacity. The demand is there, and I think we've seen that demand really ramp up over the last sort of 12 months. I would expect when we are at this session again, that a much bigger portion of that they would already make that transition. I think it's also something to do with history. You know, we started off in Europe, so that means that many of the clients where we originated from, they were on-prem. While in North America and APAC, it's a customer who have come to SimCorp at a later stage, and therefore from the beginning, were actually on a SaaS. It is more also something to do with when the customer were first customers of SimCorp. Okay, we take one more question then we. One more question on the previous slide you gave with the wallet share that you have within the customer currently with customers. I think it indicates around 20% of the wallet share. Where do you think this wallet share can go over the medium term? Sort of what is the wallet share you currently have with the biggest customer? Also how much BPaaS is adding to that wallet share expansion? Yeah. On the second part of the question around BPaaS, we see that there's significant opportunity there, but we have not yet quantified, and we're not ready to give a number on what we think that is, apart from it being a significant opportunity. On the first question, I'm not sure I completely understood what you were asking. Sorry, if you keep those squares. Yeah. On the slide with those square boxes, it sort of says that you'll see the market growth and then wallet share expansion, which is gonna drive overall. Yes. ARR growth. How much wallet share you currently have on average? I think that box indicates 20% within on average of your customers. Just wanted to confirm that. Okay. That slide was not meant to imply 20% wallet share. Okay. Right. Your Your The question is then what is the current wallet share you have on average with customers and then where- I don't have that number from the top of my head. The purpose of that slide was to explain that the way we grow wallet share is either by going deeper through the modules, or the numbers that we've given is 2-3 times as they move from on-prem to SaaS. The 20%, that's not something that we were trying to get across with that slide. Maybe adding a little more flavor to that. I think there are different elements here. First element is functionality, software functionality. There it's quite clear that we haven't sold everything we could sell to every single customer we have. There we have an upsell opportunity, what we call additional license sales to existing clients. It's really hard to judge how much it is, but we believe it's at least 40% upside we have there. Then on top of that, we have the SaaS opportunity, which we have been discussing quite a lot today. I will also come in covering that in my presentation. Again, a huge potential there because we still have 170 clients where we haven't done the SaaS conversion. On top of that, we have the BPaaS. I think there are at least three layers. All right. We need to break for coffee now. If we can be back in here at 3:15 P.M., Michael's gonna take you through the financial presentation. Thank you. We're all ready? Okay. Welcome back, everyone. My name is Michael Rosenvold. I'm the group CFO, and I have been in this position for the last five years. I will be your last presenter today. After my presentation, I will invite Christian up here. He will. We will take answers together. He will answer all the difficult questions, I will take the easy ones, and then he will wrap up. Just so you know, what's going to happen after my presentation. Being the CFO, I just wanna make absolutely sure that you have seen this disclaimer. I know Christian showed it as well, but I think it is, of course, quite important that I'm. What I'm saying here and what has been said at all the other presentation, it does include some forward-looking statement and expectations, and those are, of course, not guarantees of future performance. Just so you are aware. My dear colleagues, they have been presenting, I think very well, how we execute on our strategy, and they have been double-clicking on some of the most important parts of our SaaS transformation. What I will do now is I will try to summarize, wrap it up to some degree, with a focus on financial implications. What I will not do today is I will not give any statements or on new targets or ambitions. That was already what we said when we announced our H1 results, and Christian also mentioned it in the beginning. Because I'm leaving as the CFO, and that will be the new CFO with the management team who will set these targets. That will not be part of my presentation. It should hopefully be very clear now, based on all you have heard, that we are progressing quite well on our SaaS transformation. We have most of our new clients. They choose SaaS, and we see existing clients migrating. By that, we are tapping into a larger share of the wallet among our clients. We do fully acknowledge and understand that due to IFRS 15, there can sometimes be some confusion and in our reporting. I will try in this presentation to explain what the impact is of the different models on our financial reporting. We will also introduce some measures which should make it easier to read our financial reports and hopefully better reflect how we perform on our SaaS transformation. You can say the new two new things, not something revolutionary. I think you all expected it that we will introduce a new revenue segmentation from 2023, which better reflect our SaaS transformation, and we will also introduce a forward-looking ARR. Up until now, we have had a backward-looking ARR, which is not, you can say, the best measurement for how we are progressing. I will use here the same slide as Christian also using, maybe put a few more words on it, that our SaaS business is really picking up. Georg was also mentioning it. We are a SaaS company today, and I think that's quite important to understand. We did the change of going from perpetual to subscription agreements in 2016, and that means that all new clients, they are on subscription, and some of our existing clients, they have converted into subscription. I will come a little bit back to conversions and what that means. It means today that 38% of our clients are on subscription, and that number is increasing. We do also see double-digit ARR growth, and we have more than 50% of our revenue is recurring. You have also heard this many, many times that we have 34 Dimension clients hosted in the cloud, and altogether, we have more than 50 of our clients. More than 15% of our clients, client base, is in the SaaS. What Christian also said, the way we have reported previously is that our order intake and order book is only reflecting licenses, but not hosting and managed services. Here, we just wanna give the service information that with the 34 Dimension clients, we do actually have EUR 200 million signed revenue, which we haven't revenue recognized yet. That will be revenue recognized over the coming years, and that is equivalent to about EUR 40 million in ARR. I will, during my presentation, try to illustrate through examples because I think some of it is a bit complex, and there's a lot of moving parts. Using examples is probably the best way of explaining the financial implications. Instead of mentioning the assumptions as every single example, I will do it now, so you all know what are the basic assumptions we have used in these examples, and they are used for simplicity reasons because if there were too many moving parts. The first one is that we have not included any indexation in any of our examples. Of course, we do have indexations in most of our contracts, but that is not included. We also assume that contracts are signed January 1st. Again, that is not reality because we sign, of course, throughout the year, and actually, most of them in the last quarter and not in the first quarter. It's easier to make the comparison when you do it 1st of January. We also assume the client pays in equal installments. Again, that is not necessarily the truth. Sometimes, there is a ramp-up period agreed or something like that, but we think we have an example set equal installments. We also assume five-year contracts. Contract can vary from that. It is not necessarily all five-year contracts. We also say that after the five years, you will renew for another five years. Again, that can change. As Oliver said, sometimes it's longer, sometimes it's shorter. We have not included any upsell, but of course, as I also answered for one of the questions, a very important part of our business model is upselling to existing clients. In all my examples, I'm not spending time on onboarding implementation. Georg covered that in his presentation, so that is not part. Of course, a disclaimer, I'm using some numbers, and they are not necessarily the numbers we will have on every single deal. Also, I'm the CFO, maybe a little more conservative than the salespeople. In all my examples, I have used a factor 2, while you have seen earlier on that we have a factor 2-3 on our SaaS offering. Again, for simplicity reasons, that's what I have used. Before I go through all the examples, I will just introduce the new revenue segmentation and the new ARR definition. We believe it is quite important that we go from the old revenue segmentation to something which better reflect that we are a SaaS company now. We have done this to increase the transparency and to reflect our new operating model. What we are proposing is that in the old days, we had license, software update, and support professional services and hosting. What we will have going forward, and I think that is the most important of the changes, is that we will introduce something new. We will introduce cloud revenue, so that means that all revenue from cloud clients will be reported on that line. Also, the license part on a cloud client. That also means that hosting and other will be sunset. We will not use that line any longer. Other is, among other things, training activities. Training activities will then be part of our professional services. We will have two revenue streams from the on-premise clients. We will have a license one and then a software update and support. That is, again, to better reflect. You can distinguish between what is coming from on-prem clients and what are coming from cloud clients. Again, what is then the primarily non-recurring professional services in terms of onboarding and training activities. ARR is, in our opinion, the key indicator to assess our underlying growth. Therefore, of course, we will put more emphasis on ARR going forward. We have introduced it, but now we are putting the foot on the speed a little more and saying, "This is our key indicator." I think the good thing about it is that it normalize the lumpiness which is caused by IFRS revenue recognition. Again, as Christian said, it is our clear expectation that ARR will grow more than revenue. We will have a higher increase of recurring revenue compared to non-recurring revenue. We will introduce the forward-looking ARR. I think it's also fair to say, especially in the beginning, we think that the ARR forward-looking is higher than the backward-looking. Because as we are growing, getting more and more SaaS clients on, by nature, by taking, registering is faster, we will have a higher forward-looking ARR than the backward-looking ARR. It will include committed revenue over the next 12 months. In essence, what it is we will have in our ARR, it's the subscription agreements, it's the update support, and it's our recurring services. We believe with this, that we will give more transparency about our future revenue potential, and it will show our ability to win new client and to expand and defend what we have with existing clients. How is ARR calculated? I think it's quite clear. If we sign a contract in year one, then you will have the ARR in the first year. If we sign it on the first of January, then the ARR and the cash flow will be the same. You can see here the revenue recognition where we have to upfront revenue recognize the license part. By doing this, we will have an alignment between ARR and our cash flow. I will come back to the revenue recognition and the IFRS 15 a little later. Again, if we look at the SaaS and the BPaaS, it's the same story. We will have a higher ARR naturally because of the factor, in my case, two. It could also be three and so on. Again, the important part is the cash flow and ARR will match. Combining the two new things, the introduction of a forward-looking ARR and the new revenue segmentation. Here, I have to admit, it's still a little blurry. Cloud revenue, that will be all recurring. That's actually relatively clear. The license part will be upfront recognized, so still a little blurry. Professional services, that will be non-recurring, so that's actually quite clear. Software update and support, all recurring, so that's also okay. Then the license part, we will have two license part. We will have the perpetual licenses where that will not be recurring, that will be non-recurring. Then we'll have the subscription part, which will be recurring. We always get a lot of questions regarding revenue recognition. That's why I would like to spend a little time on explaining revenue recognition and how it impact us in the different models. First of all, not because I wanna educate you about accounting standards, but I think this is, of course, important. The important part of IFRS 15 is that we have to identify separate performance obligations, so POs. When you have identified it, then you need to recognize revenue when the PO is satisfied. If we take the different elements of what we are selling, then you can say the license part here, what we have done is we have developed the software, and we don't have any further performance obligations. That also means when we sell it, we have to revenue recognize it upfront. While you can say the upgrade and support, there we have an obligation to maintain it, and therefore, we will revenue recognize that over time. The same goes for hosting and services and so on. But it's the license part which is the issue because we have to revenue recognize that upfront. I think one important thing to notice here is that maybe as opposed to other companies, we are not capitalizing our product development, so that also means that all our product development, our R&D, all the money, where's Marc? Marc's spending, he said EUR 90 million to EUR 100 million, that is actually expensed in a given year. You can say there is some kind of matching between that we are expensing that and we are then taking the revenue upfront on the license part. Now you have heard about our different models with the SaaS and the BPaaS, but you can say there's also a distinction between on-prem on perpetual pricing model and on-prem on subscription model. You can say, going forward, and as it is today, we are only selling subscription. We still have a lot of clients who are on perpetual agreements, and if they are buying additional stuff, additional functionality, that will still be on perpetual, and that means that we still need to cater for that. Going through, you could say the different examples, if we start with the old stuff, the on-prem, perpetual. That means that if such a client is acquiring additional licenses, then we will revenue recognize upfront, but we'll also get the payment upfront. In that case, actually, the cash flow and the P&L is aligned. That is not what we do most. We are actually for the new clients, we are doing subscriptions. It is quite simple. There is an alignment between revenue recognition and cash flow. It's getting a little more complicated when we get to the subscription. Here we have the same example. You sign a deal of EUR 2 million per annum. In the old additional licenses example, it was a EUR 5 million perpetual agreement and then a 20% maintenance, so altogether EUR 10 million over 5 years. Here you have a subscription agreement where instead of the EUR 5 million and EUR 1 million, you sell subscription of EUR 2 million per annum. Here we see the problem. We've already recognized the first year EUR 6 million, but we only get cash flow and AR of EUR 2 million. It all repeats itself when we get to the renewal period, because there we get another EUR 6 million the first year, but the cash flow continue with the EUR 2 million. Again, I'm not including indexation or upsell here. If we take the SaaS, it's quite similar situation. The hosting and the services, the good thing here is that we will revenue recognize over time. That also means that the impact from the upfront revenue recognition was 50% in the subscription case before, but in the SaaS model, it's only 25%. You can say the impact of the upfront revenue recognition is being diminished as long as we are selling more SaaS and more BPaaS. You can see it on the next slide as well, where we have the BPaaS. Here, we have assumed that this is a pure play BPaaS, where you can't distinguish the different elements of the offering. It could also be that we are selling BPaaS on top of the SaaS and the subscription. In that case, you will still have the upfront revenue recognition of the license part. Again, the impact from the upfront revenue recognition is getting less and less as we are selling more and more ongoing services. You can say two key takeaways here. It's a smaller and smaller part of our revenue recognized, which will be upfront recognized as we are going towards SaaS and BPaaS. The other thing is our ACV and ARR, by definition, will increase as we are getting a higher share of wallet with the clients. About conversions. I know some in this audience have a strong focus on conversions. We are very often asked, you know, why do we do conversions? I think before I answer that, by answering that, I think it's quite important there are two different kinds of conversions. There is the price model conversion, where you go from a perpetual agreement to a subscription agreement. That's one conversion. Then you have the other conversion, where you are actually migrating from on-premise to cloud, and in connection to that, you also go from a perpetual to subscription. If we take the first one, why doing that? In essence, it's actually not something we are pushing, because we have a client paying a nice, stable maintenance fee, and converting that to a subscription is actually not adding anything to us. It's also quite clear when you have a perpetual agreement, then the client is a bit locked, because he bought something and he can actually only do a few things. He can buy more or he can cancel, but he cannot deliver back stuff because he has already bought it, and he actually paying maintenance for what he has bought. Some clients, they come to us and say, "In fact, there are some stuff we don't need any longer. On the other hand, there are some items we actually wanna have." In such a case, we say, "Okay, let's see if we can strike a deal. You hand something back, you get something." Of course, also, we are then trying to do a net upsell in that case. Those are the examples where you could say converting from a perpetual agreement to a subscription agreement makes sense, because the client gets something better than what they had, and we have an opportunity to some upselling. In addition to it, we also have the opportunity to prolong the binding period, because on a perpetual agreement, you can actually cancel that on a short notice or relative short notice. If you make a five-year deal or seven-year deal, then you have a secure license for the next many years. That's why we do the price model conversion. The migration is what we have talked about the entire day, that we are going from an on-prem solution to a cloud solution. There we are saying, if you choose a cloud solution, when you choose a cloud solution, then that's on a subscription agreement, and therefore we also want to change your original contract to a subscription model. That's the examples where we are doing it or why we are doing it. Again, you have four examples here. You have one way to do a one-to-one conversion, which actually doesn't make any sense other than prolonging the binding period. Maybe you can make the net benefit for the client. You have the more typical one where you do some net upselling at the same time. You have the BPaaS and the SaaS conversion, or the SaaS and the BPaaS conversions. If we start with the first one, what happens when you do this conversion is that originally the client bought the license for EUR 5 million, and they're paying EUR 1 million per annum. Now we make a one-to-one conversion. We are getting exactly the same cash flow, but because of IFRS 15, we have to revenue recognize upfront 50%, and then taking the remaining 50%, the next 5 years. That means in year 1, we have revenue of EUR 3 million instead of the EUR 1 million, and then in the following years, EUR half a million less. All in all, it sums up, of course, but it means that we get an unnatural uplift in year one. More common is that we do some upselling at the same time, and then it will start making a lot of sense because then we get a future cash flow of EUR 1.2 million instead of the EUR 1 million. It is actually quite beneficial for us to do these conversions. Again, it is getting more and more interesting when we are combining it with a SaaS or a cloud conversion, because then in this example, we bill for hosting and services for another EUR 1.2 million. Instead of having EUR 1 million, we now have EUR 2.4 million in cash flow. And again, you know the feel now. If we then add the BPaaS, then we get from a EUR 1 million to a EUR 3.6 million. We can actually more than triple the value of that client. And again, these are of course illustrative numbers, and not necessarily representing what will be the case when we have the real cases. But it is. The scale is not totally wrong. We certainly believe that we have a huge ARR uplift potential from migrating to cloud. I hope what you saw earlier on indicated that. As we have stated now several times, we actually still have 170 clients which we can convert. Last year, we started this for real. We migrated five. This year, we are aiming at five to 10. We need to be very busy in Q4, but we do have the prospects to do it, so now we need to execute. From 2023 and onwards, we believe that there could be 10 to 20 migrations per annum. As stated several times today, it is not a huge hassle to do the conversions and the cloud implementations because of the same software. I think both Marc and Georg mentioned that. I think that's also why we believe we can do several of them in a given year. Up until now, I have talked revenue, incoming cash flow, and ARR. I assume that you also would like to hear a little bit about cost and profitability. Here, of course, I'm leaning very much towards what Georg said earlier on. What I'm presenting now is of course a reflection of Georg's presentation. It is quite clear that the old traditional on-prem license deals, they are extremely profitable in year one, both because of the revenue recognition, but also because we have already expensed all our R&D. There is, of course, some sales and commission cost in the first year, but that is actually minor. On old on-prem cost is limited, good margin, especially in year one, but also in the following years as we are making money on our software upgrade and support. When we get to SaaS and BPaaS, of course, for natural reasons, there are more costs involved in delivering here. We still have, you can say, strong profit in the first year and then less profit in the coming year. The exact profit level really depends on how good we are to get the benefit out of the optimization, the standardization and the low cost leverage from low cost. This is, you can say, the picture from an on-prem to a SaaS to a BPaaS contract. This is all on contract level. If we then take one step deeper and say, what from a company perspective, we believe that the cost of demand, which is shifting from towards SaaS and BPaaS, that will lead to that our high margin license and software update and support revenue in relative size will decrease. That, you can say, is the first thing. We also believe, and I think, Georg explained that quite well, that we see our professional services, onboarding services with the efficiency and, again, standardization, optimization is also relatively going down. You could say that part has a medium gross margin. Finally, we believe, of course, that the SaaS part, which is actually right now the lowest margin business, will have a higher revenue. You can say all other things being equal, that's a bad combination. What we then also see is that we certainly believe that the license and software update and support, we will be able to retain the high gross margin. We believe that we can make a higher margin on professional services. The most important part, that is what Georg explained, we believe that we will be able to increase the margin on our SaaS and BPaaS offering. If you multiply all this and take the combined impact of it, then we actually believe that we will be able to retain a gross margin of what we have today, which is a little is around 60%, a little higher than 60%. We believe that in the long term, we will be able to do that. On top of that, we do believe in operating leverage from diluting of some of our overhead. We believe as we are growing bigger, as we are doing more standardization, optimization, and leveraging our low-cost locations, and do scale efficiencies and also some of the engineering work we do in the product development, that we'll be able to get some dilution of our overhead and scale improvements, especially in R&D, commercial and like support functions in general. That means with a stable gross margin, that will lead to a slight increase in the EBIT margin. Of course, both gross profit and EBIT will go up due to the higher activity level, but we also believe, in the longer term, it should be possible to have an increase in the EBIT margin compared to the level we are at today. Maybe to sum it up, it is the combination or the function of the change of business mix and the gross margin profiles on the new business segments, plus the operational leverage, which lead us to believe that the SaaS transformation is expected to drive a long-term EBIT margin improvement across a larger and faster growing AR base. It is the improvement of the margin in SaaS but also in professional services which will have the impact. That will compensate for the lower share of the on-prem services. A little bit about our capital structure and our cash flow. But before I start that, maybe a few words about, again, a consequence of IFRS 15. As we are upfront recognizing the revenue, then we're also creating an asset in our balance sheet where we have classified that as a contract asset. You can follow the development of that asset. Contract assets occur for the following reason. Again, the case here, we recognize revenue EUR 5 million upfront, but we only invoice EUR 1 million and get paid EUR 1 million. That means that we are creating contract assets of EUR 4 million. The next year, we will recognize revenue EUR 2 million, but only invoice EUR 1 million, and then we will have cash flow of EUR 2 million, and thereby reducing the contract assets year on year. After five years, it is equaling out. Again, when you do the renewal, then you start again. That means as we are a growing company, that our contract asset is increasing year on year. Here at the end of 2021, we had a combined or accumulated contract assets of a little more than EUR 220 million. That is of course what we have revenue recognized but not getting paid yet. It is a kind of a bond which is waiting to get paid over the next coming years. Despite that, we believe that we are a strong cash-generating company. If you look at the last five years, I think we have delivered quite solid free cash flow in all years. What we do with this cash flow is that we are investing into the business, of course. We do a few acquisitions, and then on top of that, we are then redistributing back to the shareholders in form of dividends and share buyback the remaining capital. You can see in every year, we have paid dividends up until now with the acquisitions we have done up until now. In the years where we haven't, where there's no requirement to do acquisitions, then we have also made share buyback programs. In 2022, we had one share buyback program. As announced by Oliver, we plan to do a small investment in the joint venture with Challenger in Australia, and that was why we didn't initiate a new share buyback program. That's about EUR 10 million. This is a reflection of our capital structure policy. Our policy is, first of all, invest in the business organically, but also a few through bolt-ons and acquisitions. Any excess cash will be returned to the shareholders, so we're not sitting with any excess cash. Maybe worth noting, we are in a net cash position, so we don't have any debt. We do also, of course, have some credit facilities in order to make sure that we have the cover if things start getting a little sour. We have our war chest there. Again, it is our intention to pay at least 40% of the free cash flow back in dividends, unless there are specific funding requirements to acquisitions. We have done that for the last many years, being able to return cash to the shareholders. To sum it all up, before I invite Christian to the stage as well, we believe that our equity story is the following. We believe we have a very, very dedicated focus on a narrow product offering to a very well-defined client base. We do believe that client base is stable and loyal. We don't have a lot of turnover among our clients. We believe we have a strong market position. That was what Oliver were dealing with. The solid business model, that's what we have tried to convey to you, at least for the last six hours. We do believe that we have a fully integrated front-to-back offering, supplemented with the open platform. I just showed strong cash generation, and we have spent also, again, the last couple of hours talking about transforming to a SaaS and tapping into the additional share of wallet. We have seen growth in our ARR, double-digit recently, and we see that share increasing compared to the recurring revenue. We also are quite committed to increase the shareholder value and return capital back to the shareholders when we are able to do it. This conclude my presentation, and now I think we will take questions and then Christian will wrap up. Yeah, I'm not gonna wrap, but. Oh. Trump maybe. All right. Let's start. Who's first? Thank you very much for the presentation. Perhaps to start with one for Michael. In terms of cumulative gross profit, how long do you expect it will take to reach an equivalent number between a non-prem license deal and a BPaaS deal? Did you get it? If you look at aggregated gross profit, okay? Yeah. Aggregated gross profit, because you basically, I mean, provided us with number in terms of cash revenues, right, over time. If we look at cumulative gross profit- Yeah Between a license deal and a BPaaS deal, so how long does it take, in your view, to get to the same cumulative gross profit number? That makes sense. Yeah. I'm not sure I said that that will happen. I said that the mix will lead to the same gross profit, not that we will have the same margin as we have on No, I'm not talking about margin. I'm talking about cumulative gross profit in absolute terms. That depends on how much we are growing, of course, our sales. I think, I don't think we have made those calculations. Okay. All right. One more, perhaps more strategic for Christian. What I gathered from the previous presentation is perhaps that you intend to rely a bit more on IT integrators or IT services partners. What's driven this change? Because, you know, in the past, under Klaus's leadership, looks like to me, you know, you didn't want to rely so much on these guys. You wanted to have the hand yourself on the implementation. What's driving that? And perhaps in which geography, you know, are you driving this change more than another, if that's the case? No, I think there's quite many layers to that conversation. I think it's if we start kind of with the sales driven part of that is I think it's well-known that typically the organizations we try to sell to get advice from that audience, right? If you're kind of close around yourself and don't wanna work with anybody, you at some point will get hurt by that element. I think that's kind of the obvious one. I think the other one, which is also what Georg Hetrodt talked about, is I think where assuming that we can do what we say we can do, then the amount of transformation work will be quite a lot. There's quite a lot of work going on around that whole thing, and I think where SimCorp can really excel is the part where it has really deep content knowledge required. That also links back to the fact that we believe that we can concentrate on that and start to use partners for the rest, and that will basically mean that we will take care of the areas that has a high perceived value, and obviously both commercially, as well as to the customer. I think part of it is opening up, and you can hopefully see through the presentation today that it's also a cultural shift. We're doing that in a selfish way to be part of any deal that is available. The other one is to make sure we actually channel our capabilities to the right areas and ultimately give the rest away, if you will. Claus Alma from Nordea. I know this is about the long-term perspective, this CMD, but I will still dare asking a question about the short-term trading environment. Maybe you could give some color to what are you actually seeing and what do you expect to happen if we're actually going into a recession? You wanna start, Michael, or should I start? No, I think you should start. We discussed quite a bit, Claus, whether we should address the current macro environment going into a CMD, and we kind of agreed that it would kind of defocus the conversation. I think, since you're asking, then I think there's a couple of immediate effects on the cost side, right? We're going into salary season, and it's quite obvious that a lot of people are obviously expecting that there's higher salary growth than what we see previously different by inflation. I think we're also seeing that there's other effects going the other way. There's governments around that is encouraging to not go crazy because of inflation, and there's also the first kind of indication that there's some a little bit more easy access to talent than there's been the last couple of years. I think we are going in with an expectation, yes, we obviously need to make sure that our employees are well-treated, but we certainly do not expect to go crazy on the cost side either, to be perfectly honest. I would say on the revenue side, what we see right now, and I obviously can't predict what is gonna happen from now, or otherwise I would probably have another job. If where we currently are, the processes are being pushed through because ultimately everybody now understands that they need to do something about their cost base, whether it's going the BPAS route or whether it's investing in technology, it doesn't really matter. Right now it has a positive net effect. It's clear that Europe is somewhat more hurt than US and APAC, and that's also why we're spending a lot of time on the road in those particular geographies. I'd say right now, okay. We are quite happy that we don't have AUM-based pricing for obvious reasons. I think so far so good. Very few customers has been really severe hit, but as I said, if that continues to go crazy, then we might see something there. Right now I would say okay, but I think it's quite hectic, right? Let's all cross the fingers that it's stabilizing just a little bit. Obviously the war in Ukraine, we can't predict. Maybe just you talk cost, you talk revenue, not order intake. I know all of this might be a positive at certain point, but what we have seen in the past at least is uncertainty means people, potential clients are sitting and not doing much. Yeah. That was what I tried to say, is that the deals that are on the table, they are continuing at the same pace. Right. Okay. There's nobody that says, "Well, there's turmoil and we wanna stop. Okay. So far. Far. Yeah. Okay. Thanks. That was all. I think sometimes it's getting into the budget cycles. I think what you have now, unless you really do something drastic, then you probably have planned it for quite a while and then you continue. Yeah. Let's see what happens next year when everyone is going to make the budget and what are then allocated to the different parts of their business. We, you know, the old record, but very often there's a short-term negative impact and then at some stage people find out that they really need to do something, and then we are really the perfect match to help them in by reducing the cost. That's all. You had the three client examples here saying, you know, in all cases we were able to reduce the cost to income ratio. But of course it require some investments and these investments you are a little hesitant to do that when everything is boiling. I think I'm certainly happy that I'm in a company with 300 customers and I'm not in a startup that had to build a customer base right now. It's also nice to have a net cash position. No debt. Yeah By the way. Thank you. Thank you for the presentation today. I have also two questions. In terms of your long-term growth prospects, maybe you can tell your preference over new customer wins or is there more revenue growth coming from the conversions to SaaS and PaaS into the existing customer base? The second question is around M&A. I think the focus was around bolt-ons in the US market. Maybe you can drill a little bit down into what exactly you understand and what is missing in that market, what would kick start your- Yep. relationship with your customer base. It's also driven then as an answer to new customer wins or is this rather more a requirement of the existing customer base to improve the product? Yep. A good question. For me, it's a company that doesn't win new customers is not a growing company. You can't be that. Then you can discuss the relative impact between the revenue from one or the other. Doesn't really matter. You need to be able to win new business because that shows that you're competitive. We will never, ever slow down on that. On an absolute term, it's very hard not to find the conclusion that the absolute contribution from revenue is substantially bigger from the existing customer base moving to SaaS. There's kind of no way around that. I would say for us, we need to win on both, and it's not one or the other. There's obviously a matter of pace of that transformation. I think we talked a little bit about that, but we need to be able to have a setup where we can win new customers in every part of the world, and that hopefully also you're walking out of here feeling, you know, a level of confidence and also that we're actually doing something about it after today. For the M&A part, obviously it would be a little bit stupid to, you know, declare exactly what the targets could be. I would start by looking at where how we build the ecosystem not the interoperability. We're not gonna buy JPMorgan or State Street. If you look at the fintech partnerships and you look at some of the areas that Jackie and Zoe has talked about, of areas where the partnerships are particularly interesting, that would certainly be areas. That's kind of one thing. The other thing, and we are quite open and transparent about that, what we've done with Challenger in Australia, that could be a nice acceleration for us into North America in whatever shape or form that could come. So that's kind of probably the two buckets that we spend most time thinking about. I think the latter has the beauty, at least seen from my perspective, that it's a relatively small investment and it's with a relatively low risk. Yeah with high upside. It's you know, whenever you do an acquisition, there's of course risk, and this is, I think, in the lower risk category. I would say generally on M&A, you know, what you should hear is that we believe given the platform that we have, that it's an opportunity for us. We're kind of fully aware that SimCorp hasn't proven itself as an M&A engine in any shape or form. We've done a couple, and they've been integrated well into the value proposition, but I think we have a few things we need to prove to you in order for us to be credible about talking about M&A, so we're fully aware of that. Yeah. Michael, you shared some thoughts on how all the moving parts will evolve into the financials going forward, especially on the gross margin and on the EBIT margin. On the EBIT margin, you said you expect an uptick based on the operating leverage. What are you using as a base assumption? Because you've had this guidance in place since 2018 that EBIT growth would exceed revenue growth. We've not seen this for the last four years. EBIT margins are down substantially. Are we taking 2018 as a base or 2022? Yeah. That's of course a relevant question. We were taking, you can say, today as a basis. Then you can say, how fast should we then go? Our existing ambition as it stands today, and we haven't changed that today. That is, you know, the double-digit growth. We would like, and we have the ambition about increasing our margin year-on-year. There will be some years with fluctuations due to investments or to other macroeconomic factors. The margin increase is based on what we have today. Then it's a question about how far can we then go up. That's what you can say. Michael and the team will work on and introduce at the next possible occasion. It was based on current level. Is that ambitious enough? Sorry? Is that ambitious enough given where the margin is currently? No, no. Yeah, yeah, yeah. You can. We didn't say it should be a little more. We just say there should be more. Then I think it's up to the team to say what are then the long-term ambitions. There, I think it has to be the people who are going to deliver it going forward who are going to make that statement. It would be too easy for me to say that. Thank you. Over here. Could I ask the same question, but in a conceptually different way perhaps? Which is that you can obviously fiddle with the revenue for contract assets, et cetera, but one way or another, in 2018 you were making a free cash flow margin in the sort of low 20s%, it would appear. By 2021, that was a lower number, maybe in the 10s% somewhere. High 10s%. It looks like it's gonna be substantially lower than that in 2022. Obviously, in terms of your targets, I know you're not gonna give any of those, and it's right that you don't. Conceptually speaking, is the business you are now targeting to have over the next 5+ years or so, conceptually, should that be as profitable on a cash basis as the business you had in 2018? Is it structurally less profitable, more profitable on a cash margin basis? I think it should be more profitable five years from now. Okay. That's a good tip. Thanks. I think that was what you told. Are you competing with your BPaaS? Is your BPaaS business line competing with some of your customers who provide outsource services to asset managers, and how have they responded to you kind of competing with them directly? The answer is yes and no. I can say that the first conversations I had with some of those partners when we announced BPaaS was relatively colorful. Once they realized what it is we're trying to do, which is ultimately to give an easier access to the technology that we have, they realized that it was actually an opportunity for us. If you look at Challenger, if you look at State Street, if you look at many of the other ones, they're actually consuming our services, and then they build their own stuff around it, and that's where it becomes unique. Yes, conceptually, if everybody goes BPaaS with SimCorp, you're gonna have less asset servicing happening. Let's face it, you know, that's gonna take a very long time because that becomes a problem for anybody. Right now it's actually people are seeing it as an easier way to take components of SimCorp and put it into their overall value proposition and then off they go. It took a little bit of explanation. There were some words used that I'm not gonna repeat, but once they realized what it was, it was very fruitful. Do you see any hands? All right. Just to quickly wrap it up. I hope you found it useful, both the people that are in the room and as well as people that are following the broadcast. In essence, this conversation is about three fundamental questions. The first one, is SimCorp competitive? I hope we gave you an insight into what are we doing about that, how do we think about the regional distribution capabilities, how do we think about the people that are taking this to the next step. We are doing some upgrades of leaderships around the world. For example, in North America, there will be some changes announced in not too distant future. The whole system, I also hope you see some of the energy of the new people we brought in to work closely with the SimCorp. Here, the proof is in the pudding. I can promise this number or that number. In the end, it's whatever we deliver and announce from quarter to quarter that will, in the end, build your confidence in our ability to win business. That's the easiest way of doing it. I'd rather demonstrate that I can do instead of giving you some arbitrary number. The next thing is it a good opportunity revenue-wise for SimCorp to go down the SaaS route? I would say you have to be pretty negative not to argue that there's a top-line opportunity in that. We have not quantified BPaaS, but it's clear there's something going on there that in the end we expect to have a positive impact to the story as a whole. Once we feel more confident and we have more data points, that will be added to the overall story. The third question, which is where we spent quite a lot of time today, is it a good idea for SimCorp, profitability-wise, to take on the SaaS work in particular? Here, what the hope for us today was to give you enough detail to understand where the opportunity lies in terms of automating the SaaS engine using standardization, why SimCorp is particularly uniquely qualified to do that journey without forcing our customers to re-implement is for me still the If you want one argument, that is the argument why SimCorp is gonna come out extremely strong after this transformation. Then on top of that, for the first time, we speak openly about the fact that we have operational leverage because of the size we now has as a company. Obviously, there's a lot more questions related to that. At some point, you would probably like that there's real numbers instead of those arrows. That's what we already said, that we're gonna allow the new Michael to come in and think a little bit about together with the rest of the team. That's basically the three questions that I spent the most time thinking about, and I would assume that you also do that. I hope we've now done the basics for that. A lot of our conversation going forward is not gonna be about does SimCorp have a cloud-native product or do we play in the front office or those kind of more basic things, even though I know we're gonna talk about it. I hope that we gave you an upgrade on what we're doing. With those words, I just wanna thank everybody. There's some cold drinks and snacks and other good things outside the door for people in the room and for everybody else. There's probably cold drinks and snacks, but it's not gonna be on SimCorp's account. Thank you very much for joining, and hope you stay a little bit.