pegasystems inc. · pdf fileor jsp) for the field and add field to the screen if field needs...

Pegasystems Inc.

Craig Dynes, CFO

May 2012

© 2012 Pegasystems Inc.

Certain statements contained in this presentation may be construed as “forward-looking statements” as defined in the

Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “hope,” “anticipate,” “plan” and similar

expressions identify forward-looking statements, which speak only as of the date the statement was made. The

company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise. These statements are based on

current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's

actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include

volatility of our quarterly operating results, difficulty in predicting the completion of product acceptance and

consequently the timing of our license revenue recognition, the level of term software license renewals, our ability to

develop new products and evolve existing ones, the impact on our business of the ongoing consolidation in the

financial services and healthcare markets, our ability to attract and retain key employees, reliance on certain key third-

party relationships, management of the Company’s growth, and other risks and uncertainties. Further information

regarding these and other factors which could cause the Company’s actual results to differ materially from any

forward-looking statements contained in this presentation is contained in the Company’s most recent form 10-K and

other recent filings on file with the Securities and Exchange Commission. Investors are cautioned not to place undue

reliance on such forward-looking statements and there are no assurances that the matters contained in such

statements will be achieved.

Safe Harbor


6 year Revenue CAGR of 27%

Pegasystems Annual Revenue


Pegasystems

With its unified platform, Pegasystems software is the fastest

way to build, deploy and change enterprise software

applications.

These applications manage complex, changing business

processes – processes like loan loss mitigation, customer

service call centers, patient care management and risk, fraud

and compliance.


Customers use our Software to Solve lots of

Business Problems Financial Services

• Service Case Management Loan

Loss Mitigation

• Pre-Foreclosure

• Retail Account On-Boarding

• Commercial On-Boarding

• CRM for Banking

Insurance

• New business and underwriting

• Policy service

• Contract administration

• Claims processing

• Risk, fraud and compliance

Healthcare

• Care management

• Healthcare industry foundation

• Sales Process Management

• ICD-10

• Medicare/Medicaid

Communications

• Communications Foundation

• Customer Retention

• Order Management

• Service Case Management

• Unified Desktop

Life Sciences

• Life Sciences Industry Foundation

• CPM for Life Sciences

• Spend Management for Life Sciences

• Optimized Grants Management

• Adverse Event Case Processing

Electronics

• Warranty Management

• New Business

• Intelligent Automation

• Customer Relationship

Management

• Risk, Fraud and Compliance

Energy

• Oil and Gas Integrated Production

• Oil and Gas Integrated Asset

Planning

• Collections Solution for Utilities

• CRM for Utilities

Travel/ Hospitality

• New Business


• CRM


Public Sector

• Citizen Benefit Delivery

• Eligibility Determination and

Enrollment

• Constituent Relationship

Management



Manufacturing


• New Business



Management


Retail


• New Business



Management


BPO

• Smart Multi-Sourcing

• Real-Time Lean Multi-Sourcing



The Pega Advantage


What’s the Pega Advantage

It’s completely unified

It’s faster to market than anything else in the industry

It gets work done


Cloud

Integration

Reporting

Process and Rules

Predictive Analytics

Mobile

Case Management

If you want to build a solution, you’ll need:

Process and Rules


Mobile

Case Management

Cloud

Integration

Reporting


Everything you need in one unified platform for

development and …

Collaboration

Processes

Reporting

Ad Hoc Tasks

Rules and Policies

Mobile

Multi-channel

Case Management


Integration

PRPC: The Only Unified Platform

For Developing Business

Applications

Social


PRPC:

The Only Unified Platform

For Deploying Business

Applications Back Office

Front Office

Web

Mobile

Facebook/Social

Everything you need in one unified platform for

development and … Deployment!

Cloud


Predictive analytics – baked into the platform


? ?

?

Specialized Processes

Enterprise-Wide Standards

Pega BPM & Frameworks

Geography Product Customer

Europe

Central EU

Germany

Credit

Auto

Direct

Gold

Specialize by jurisdiction, product, and customer


A simple change is not always so simple . . .

Name

Address

City, State, Zip

Email Address

Customer Information

Twitter ID


Name

Address

City, State, Zip

Email Address


Twitter ID

Code a new data element in the

rules engine


workflow engine


CRM system

Code a new data element into the

case management system

Add a new column to database

tables for each application in the

suite

Rewrite each applications

persistence logic to incorporate the

new data element

Recode signature at each

integration point between

applications in the suite

Make new data element available

to reporting engine

Find screen definition (or “coach”

or JSP) for the field and add field to

the screen

If field needs to appear in multiple

screens, need to manually re-add,

since there is no reuse of sections

Manually retest the screens for

vulnerabilities

Compile and export the rules

engine components

Compile and export the workflow

components

Compile and export the CRM

system components

Compile and export the case

management components

Compile and export any external

integration code.

Perform end to end

regression testing

Deploy the rules engine

components

Deploy the workflow components

Deploy the CRM components

Deploy the case management

components

Smoke test the production

deployment

Estimated time to complete: 16 days

Make Text scroll up

If you’re using our competitor’s products


But if you’re using PRPC

Name

Address

City, State, Zip

Email Address


Twitter ID

Add a property

Drag property onto a section

Type a label

Estimated time to complete: 2 minutes


Faster to Market than Anything Else in the Industry

Faster to learn

Faster to develop

Faster to deploy

Faster to change


Faster to learn – even in your pajamas


Faster to Build and Change Directly Capture Objectives without Spec Documents and Hand Coding

Automatic code generation!

No Hand

Coding

from

Specs


Faster to Build and Change Case Management


Faster to Build and Change UI Events and Gallery


Faster to Build and Change Guardrails to Keep on Track


Faster to Build and Change Vertical and Functional Frameworks

New Business Backbone for

FS

Card CPM

Smart Dispute

Smart Investigate

for Payments

Smart Adjust

Financial Accounting

Financial Crimes

Management Borrower

Assist

CPM for Insurance

New Business Backbone for

Insurance

Claims Servicing Backbone

Care Management

Claims Repair

Claims Workstation+

CPM for Healthcare

Sales Process Manager

Insurance Foundation

Financial Services

Foundation

Product Configuration

Healthcare Foundation

Customer Process

Manager Project

Management

Internet Application Composer

Automated Unit Testing

Test Management

Autonomic Event

Services

VERTICAL FRAMEWORKS

Integrated Work

Manager

FOUNDATION FRAMEWORKS

PLATFORM FRAMEWORKS

PRPC

Smart Investigate for

Securities


Faster to deploy Optionally Develop, Test or Deploy on the Cloud


How fast? 63 Days from Inception to Go Live!


Automate, guide and track with the Leading Case

Management and BPM Technology

Automate Guide Track

Straight Through Processing

Whenever

Possible

Intent Driven UI Unstructured

And

Ad Hoc Tasks


Collaborate on Work using social tools


It Gets Work Done

Automates work

What you can’t automate you guide; what you can’t

guide you track.

Supports collaboration via social tools and Mobile

devices


The Power of PRPC

It’s Unified

It’s faster to market than anything else

It gets work done


Transforming Air Travel


Global deployment for 29 request types

in less than 8 months

Transparency of operation process and

real time visibility of work

Ensures onboarding requests are in line

with business strategy & appropriately

prioritized

Global process enables off-shoring and

cross-training

Reduced operational risk by supporting

an audited process.

Transforming Commercial Banking

Benefits

“This has been one of the most ambitious projects undertaken at HSBC. Its

success has been due to the ability of IT and the business to work together on the

development from day one.” - Guy Coles, Global Head of COBAM.


Benefits Reductions in Average Handle Time (AHT)

- 15% clinical; 12.5% non-clinical

Eliminated misrouted work from Facets

50% daily work reduction for downstream

claims departments

30 associates redeployed

50% reduction in new associate ramp-up

Stronger IT / Business collaboration

Improved customer satisfaction – providers

& beneficiaries

“We’re proud of what we’ve accomplished with Pega. It’s been

transformational for us.”

Russell Esposito, Amerigroup

Transforming Medicaid


Transforming Communications

3 month deployment for:

Automation of Line Ordering Process

Automated Order Validation and Product

Availability Check

Transparent Supplier SLA Monitoring and active

escalation

Reporting functionality

Significant improvement in agility

High degree of automation and significant reduction in operating cost per order

Benefits

“ Next best action marketing is very powerful because you can use it across

channels, you can implement it fairly quickly, and you can achieve very

successful conversion rates. The rates we are seeing across operating countries

are double digit net conversion rates.”

Chretièn Brandsma, Vodafone


Benefits Provides 2x functionality of six previous clinical

legacy platforms; delivered in half the time

Robust personal health record with input

from 45,000 devices communicating daily

including labs & in-home biometric equipment

Improved health outcomes via real-time

healthcare coordination & participant portal personalization

75% improvement in time to market for custom programs; 5x

faster participant enrollment; 50% cost reduction

20MM participants (RNs, MDs, Health Coaches & Plans);

100MM monthly transactions

“Through leveraging Pega’s robust rules engine we are able to

provide customized clinical advice & assessment. This allows us to

respond to customers & medical innovations quickly, giving Alere a

clear competitive advantage around speed & innovation.”

Ed Smith, Alere

Transforming Personal Health Care


Transforming Retail Banking

Deposits doubled - with no additional

marketing

New accounts increased over 400%

75% of accounts were new

relationships

Redeployed 60% of back-office

resources

Deployed in 8 months

Benefits

“Our new Sales Application Center has enabled us to simplify the account

opening process and grow new accounts in the online channel by over 400

percent.”

Chris Casperson, SunTrust


Transforming Insurance Key Business Results: Average Call Time reduced by 20 %

CSR Training time reduced from two weeks to

one day

Quality Scores improved by 6%

Customer Service intimacy through “intent-led”

processing

Enhanced Customer Experience

Fan mail for the system

Most Recognized Application of

2011 - Celent Model Insurer of the Year

- INNovators Award (Insurance Networking

News)

- WfMC Gold Award for North America

- WfMC Silver Award for North America

- Gartner Research BPM Application of the

Year - Finalist

- Innovation Solution Award (Information

Management Magazine)


Not a Typical Enterprise Software Company

Purpose based licenses; $500 to $1 million Solve specific business problems for business people, not IT

Perpetual licenses with ongoing maintenance

Term licenses with 3 – 5 year non-cancellable terms


Pegasystems Future License Payments

Term License Payments

Installment payments for non-cancellable

term licenses not recorded on the

balance sheet as of March 30, 2012:

2012 25.9

2013 38.3

2014 35.1

2015 30.3

2016 and beyond 24.6

Total $ 154.2

Perpetual and Subscription License

Payments

Installment payments for non-cancellable

perpetual and subscription licenses not

recorded on the balance sheet as of

March 30, 2012:

2012 21.5

2013 10.4

2014 7.6

2015 7.3

2016 and beyond 9.5

Total $ 56.3


Global Strategic Alliance Tiers and Partners


“BPM” is just part of the market

BPM for

Case Management

$18b

BPM for

CRM

$6b BPM

$ 2b


Only Pegasystems is Ranked #1 by Both

Gartner and Forrester for BPMS


Pegasystems #1 in Case Management

The Forrester Wave™: Dynamic Case Management, Q1, 2011


…and is a recognized leader in CRM


Empowering Our Customers to Build for Change®


Pegasystems Inc.

101 Main Street, Cambridge, MA 02142

617-374-9600

www.pega.com

http://www.pega.com/