1Contents

A Software AG of North America 5

A Software AG in Figures 6

A Taking Stock and Looking Ahead 8

A 1988 -An Overview 13

1Status Report 14

A Development of Software AG Products in 1988 22

A Research and Development 28

Activities in the Application Sector 35

A Activities in the Training Sector 40

A Consolidated Domestic Accounts for 1988 4 1

A Consolidated Domestic Accounts (extracts from the Appendix) - 45

1About the Company 47

Sales and Service Ofices 48

TOour mstqnrcrs prospects a d mtployecs We are proud to present the1988 edition ofour annualreportd w r i ithe activitiesaad f m n d perfbrmance ofthe woddwideW y ofmaxe than 30 companies collectivelyImownas S d b r e AG Thisyear aswe celebraieS o bAGs 20th armiv- ourmostimpomntmissionis to further spread the n dof the SO AG slleccsa aoty tomorepeoplein iafbnnationp m m i q -mi ~an ma^ report help ~tdescribes ampe key abbutes ofS o h e AGuniquewithinthesoftwaxeixldustrp

cltantinuous9pkftableampam4 growamp inan ind- b a n for rapid change s u c r d parbedips with customers at more than 3500 arpdzationsmmdthe wodd

a worldwide rweaues ofmore than $ 2 0 d o n a USrwenuesexceeding$82 d o n a a fullykttgmted pmampct line ofmore dun 65 infbrmatidn -ent and apphtion development~ l s b d t wiamp SoftwueAGs o p q hegated S u r e Architecture USA) and a growkg fist afcustomizedapplicationddopmentsemices deliveredby our experts inthe designand implemmtationofsolvtimw tamp business probluns

A R a m amp k h t e S f w ~ We are pleasedwith the sucms of the mergerwit4 ourparentcompany SoftwareAGl h m s ~ d ~WestGemanywhich returns us toprivate status t3saresult Sdftware AG ofampamp America manow dce a longerview of its~ o l o g i dand corporategoamp We can dmte more energytapduct clmbpmmt and delmery improving our mtomusupporr and k w i n g t h e ~ u m l r sofeqekt serviceswe offer IJurmmmers Additionally our status as a privately-held fm offersboth our emplvcs and our customersZnduable protection fratn tbe disruptive effectsbmughtabout by the mntisuiagsuies ofacquisitionsandmergers WMm d y m a r k our in dust^^ Aswe Wer strengthenour tion onwith S o h - A G lhmtadt in the developmenampdehay ad mrpport ofnewprodtlcts and sespices we dcontinuetoampthe consisrentgrowth atethat has b d y ampd us as the seventhlargest independeat softwarevendor (The Top 50 Sofrware V m W Som -e June 1989)

h conmtto the disparateproduct off and thepotentidyd d n g mmmer suppa activitia ofthe s o h u e r m p ~ b awhichd t from the mergers inour industry Sampwe AGmnthnesi~ s n c c ~ f dkcus onbuilding integratedsolutionsoperablemmultiple computer and sy~tetnmvimxlmentsusingouro madvanced4th Generation teddop

The power and flexibilityofourinformationmanagementproducts allmour customerstoprotect the im tmem tbey have made inbuildinganampamp dhmation strategp MW importantly the fieamp tochoose a ofamputiag environmentsusingS o h e AG prodm allom our customers tocontrol theirowndampyY Then caabe no b e=on to implementSoftwareAG technologiesWeareconfident thatmore organizationswill discover tbed u e dourprodtras se+cw and support andwe lookforward toworkingwith our customers prospective customersI and anployeeskom t e new Iongrtennbusiness solutions

A-

M b~ i amp e l ~ King hsideampd Chief~am~tkeOfEicer SoftwareAG ofNorthAmerica

Chssianmofthe Board Sobase AG ofNorth heria

A S o b a r e AG of North America

Mowingselected data are h r n the consolidated

Ihancial statements ofthe Com- p yfox the years ended May 31

through 1988and the twelve months ended Decernkr 311988

Employees

I-

Total Installations

-- -- -- -- -- --

A Software AG in Figures h 1988 Software AG experienced strong growrh in all product and service ateas throughout the world The fol1owing rate ofgrowthwas achieved over last years

S o h u e AG products and semices for the Group rose to4262 million DMRevenue fbr the Software AG Concem was 320 million DMthe

The Organizationin the Federal Republic ofGermany comprises Software AG and S o h e AG Anwendungen gr Co (Applications corporation) The Group also includes pamer companieswhich are owned by Software AG or where not owned by Software AG representtherevenue generatedby Software AG producls O p t i n g results and cash flow i n m e d in relation torevenue as ampt the previous yar both in absoIute and in relativeterms The employeeshired in 1987 and 1988 contributed s i ~ c a n d yto this success

As a result ofthe acquisitionin1988 ofSoftware AGs North Amerima ampate outside f e(mainty medium-term)bedand the equity ratio changedaccordingly

In1988 S o b AG invested roughly16 of m u e -around 36 d o nDM -in the develop ment of new products As had been planned the number of s ta f f employed inbea tch and Devet-

t first consolidated halance sheet will Republic af-inmmed to be presented in 1989 Revenue for 2305 on DM the Organizationin the Federal

deductionof- onincome 528 353 531

--23 --21 --35

-

hphm dofptar) I o w o InRdcarchmd

bdspmmt P l o p w d o n o f ~ dcost3

a a c o d f o r ~ ~ and Ddopment

Profit for the year plusc(oprociationupmscs plus and c in provkhs brpasions

opmmt rose by more than the aw-rage fbr the companyas a whole -consistent with S o h AGs hismry

4NG BUSINESS 3UCCESS I

bustorn Solutions

1 RampUC bampographic region

npioyeesgeographicregion

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

TOour mstqnrcrs prospects a d mtployecs We are proud to present the1988 edition ofour annualreportd w r i ithe activitiesaad f m n d perfbrmance ofthe woddwideW y ofmaxe than 30 companies collectivelyImownas S d b r e AG Thisyear aswe celebraieS o bAGs 20th armiv- ourmostimpomntmissionis to further spread the n dof the SO AG slleccsa aoty tomorepeoplein iafbnnationp m m i q -mi ~an ma^ report help ~tdescribes ampe key abbutes ofS o h e AGuniquewithinthesoftwaxeixldustrp

cltantinuous9pkftableampam4 growamp inan ind- b a n for rapid change s u c r d parbedips with customers at more than 3500 arpdzationsmmdthe wodd

a worldwide rweaues ofmore than $ 2 0 d o n a USrwenuesexceeding$82 d o n a a fullykttgmted pmampct line ofmore dun 65 infbrmatidn -ent and apphtion development~ l s b d t wiamp SoftwueAGs o p q hegated S u r e Architecture USA) and a growkg fist afcustomizedapplicationddopmentsemices deliveredby our experts inthe designand implemmtationofsolvtimw tamp business probluns

A R a m amp k h t e S f w ~ We are pleasedwith the sucms of the mergerwit4 ourparentcompany SoftwareAGl h m s ~ d ~WestGemanywhich returns us toprivate status t3saresult Sdftware AG ofampamp America manow dce a longerview of its~ o l o g i dand corporategoamp We can dmte more energytapduct clmbpmmt and delmery improving our mtomusupporr and k w i n g t h e ~ u m l r sofeqekt serviceswe offer IJurmmmers Additionally our status as a privately-held fm offersboth our emplvcs and our customersZnduable protection fratn tbe disruptive effectsbmughtabout by the mntisuiagsuies ofacquisitionsandmergers WMm d y m a r k our in dust^^ Aswe Wer strengthenour tion onwith S o h - A G lhmtadt in the developmenampdehay ad mrpport ofnewprodtlcts and sespices we dcontinuetoampthe consisrentgrowth atethat has b d y ampd us as the seventhlargest independeat softwarevendor (The Top 50 Sofrware V m W Som -e June 1989)

h conmtto the disparateproduct off and thepotentidyd d n g mmmer suppa activitia ofthe s o h u e r m p ~ b awhichd t from the mergers inour industry Sampwe AGmnthnesi~ s n c c ~ f dkcus onbuilding integratedsolutionsoperablemmultiple computer and sy~tetnmvimxlmentsusingouro madvanced4th Generation teddop

The power and flexibilityofourinformationmanagementproducts allmour customerstoprotect the im tmem tbey have made inbuildinganampamp dhmation strategp MW importantly the fieamp tochoose a ofamputiag environmentsusingS o h e AG prodm allom our customers tocontrol theirowndampyY Then caabe no b e=on to implementSoftwareAG technologiesWeareconfident thatmore organizationswill discover tbed u e dourprodtras se+cw and support andwe lookforward toworkingwith our customers prospective customersI and anployeeskom t e new Iongrtennbusiness solutions

A-

M b~ i amp e l ~ King hsideampd Chief~am~tkeOfEicer SoftwareAG ofNorthAmerica

Chssianmofthe Board Sobase AG ofNorth heria

A S o b a r e AG of North America

Mowingselected data are h r n the consolidated

Ihancial statements ofthe Com- p yfox the years ended May 31

through 1988and the twelve months ended Decernkr 311988

Employees

I-

Total Installations

-- -- -- -- -- --

A Software AG in Figures h 1988 Software AG experienced strong growrh in all product and service ateas throughout the world The fol1owing rate ofgrowthwas achieved over last years

S o h u e AG products and semices for the Group rose to4262 million DMRevenue fbr the Software AG Concem was 320 million DMthe

The Organizationin the Federal Republic ofGermany comprises Software AG and S o h e AG Anwendungen gr Co (Applications corporation) The Group also includes pamer companieswhich are owned by Software AG or where not owned by Software AG representtherevenue generatedby Software AG producls O p t i n g results and cash flow i n m e d in relation torevenue as ampt the previous yar both in absoIute and in relativeterms The employeeshired in 1987 and 1988 contributed s i ~ c a n d yto this success

As a result ofthe acquisitionin1988 ofSoftware AGs North Amerima ampate outside f e(mainty medium-term)bedand the equity ratio changedaccordingly

In1988 S o b AG invested roughly16 of m u e -around 36 d o nDM -in the develop ment of new products As had been planned the number of s ta f f employed inbea tch and Devet-

t first consolidated halance sheet will Republic af-inmmed to be presented in 1989 Revenue for 2305 on DM the Organizationin the Federal

deductionof- onincome 528 353 531

--23 --21 --35

-

hphm dofptar) I o w o InRdcarchmd

bdspmmt P l o p w d o n o f ~ dcost3

a a c o d f o r ~ ~ and Ddopment

Profit for the year plusc(oprociationupmscs plus and c in provkhs brpasions

opmmt rose by more than the aw-rage fbr the companyas a whole -consistent with S o h AGs hismry

4NG BUSINESS 3UCCESS I

bustorn Solutions

1 RampUC bampographic region

npioyeesgeographicregion

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A S o b a r e AG of North America

Mowingselected data are h r n the consolidated

Ihancial statements ofthe Com- p yfox the years ended May 31

through 1988and the twelve months ended Decernkr 311988

Employees

I-

Total Installations

-- -- -- -- -- --

A Software AG in Figures h 1988 Software AG experienced strong growrh in all product and service ateas throughout the world The fol1owing rate ofgrowthwas achieved over last years

S o h u e AG products and semices for the Group rose to4262 million DMRevenue fbr the Software AG Concem was 320 million DMthe

The Organizationin the Federal Republic ofGermany comprises Software AG and S o h e AG Anwendungen gr Co (Applications corporation) The Group also includes pamer companieswhich are owned by Software AG or where not owned by Software AG representtherevenue generatedby Software AG producls O p t i n g results and cash flow i n m e d in relation torevenue as ampt the previous yar both in absoIute and in relativeterms The employeeshired in 1987 and 1988 contributed s i ~ c a n d yto this success

As a result ofthe acquisitionin1988 ofSoftware AGs North Amerima ampate outside f e(mainty medium-term)bedand the equity ratio changedaccordingly

In1988 S o b AG invested roughly16 of m u e -around 36 d o nDM -in the develop ment of new products As had been planned the number of s ta f f employed inbea tch and Devet-

t first consolidated halance sheet will Republic af-inmmed to be presented in 1989 Revenue for 2305 on DM the Organizationin the Federal

deductionof- onincome 528 353 531

--23 --21 --35

-

hphm dofptar) I o w o InRdcarchmd

bdspmmt P l o p w d o n o f ~ dcost3

a a c o d f o r ~ ~ and Ddopment

Profit for the year plusc(oprociationupmscs plus and c in provkhs brpasions

opmmt rose by more than the aw-rage fbr the companyas a whole -consistent with S o h AGs hismry

4NG BUSINESS 3UCCESS I

bustorn Solutions

1 RampUC bampographic region

npioyeesgeographicregion

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

-- -- -- -- -- --

A Software AG in Figures h 1988 Software AG experienced strong growrh in all product and service ateas throughout the world The fol1owing rate ofgrowthwas achieved over last years

S o h u e AG products and semices for the Group rose to4262 million DMRevenue fbr the Software AG Concem was 320 million DMthe

The Organizationin the Federal Republic ofGermany comprises Software AG and S o h e AG Anwendungen gr Co (Applications corporation) The Group also includes pamer companieswhich are owned by Software AG or where not owned by Software AG representtherevenue generatedby Software AG producls O p t i n g results and cash flow i n m e d in relation torevenue as ampt the previous yar both in absoIute and in relativeterms The employeeshired in 1987 and 1988 contributed s i ~ c a n d yto this success

As a result ofthe acquisitionin1988 ofSoftware AGs North Amerima ampate outside f e(mainty medium-term)bedand the equity ratio changedaccordingly

In1988 S o b AG invested roughly16 of m u e -around 36 d o nDM -in the develop ment of new products As had been planned the number of s ta f f employed inbea tch and Devet-

t first consolidated halance sheet will Republic af-inmmed to be presented in 1989 Revenue for 2305 on DM the Organizationin the Federal

deductionof- onincome 528 353 531

--23 --21 --35

-

hphm dofptar) I o w o InRdcarchmd

bdspmmt P l o p w d o n o f ~ dcost3

a a c o d f o r ~ ~ and Ddopment

Profit for the year plusc(oprociationupmscs plus and c in provkhs brpasions

opmmt rose by more than the aw-rage fbr the companyas a whole -consistent with S o h AGs hismry

4NG BUSINESS 3UCCESS I

bustorn Solutions

1 RampUC bampographic region

npioyeesgeographicregion

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

4NG BUSINESS 3UCCESS I

bustorn Solutions

1 RampUC bampographic region

npioyeesgeographicregion

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A Taking Stock and Looking Ahead 1988 was SoflwareAGs twentieth successful year ofbusittea - a long time for the fast-moving data processing industry and br the software market inparticular This is especiallymampen the life span ofmany organizations and the rapid progress made b i firmation management technology within this period Continuity has been SoftwareAGs main feature in those twenty years The oamption has grown steadily inall areas against a backdrop of constant turbuleat dung ewnomic ups and downs and short-lived fashions and fads in technology The number ofempioyees and customers rwenue and the size of the Software AG product W y have aII grown constantly and for a number ofrasons

The mast inpoprantmuon fbr set the staxldard for leading-edge SoftwareAGs enduringsuccess is technology Data independence was its Iong-tean well-fbunded t e c h - achieved with the ADABAS data Iogid conceptwhich it adopted base managementsystem as far back from iampinceptiot~Wehave spstc as the early seventies - long =re

At the beginning ofthe eighties N A T U W became the basis for anm a t i d y enhancedow product it was requiredby relational integrated range ofproducts with a

rlnge thtaugb integmd in-house theory development b a d on 1ong-m common interface for programmers

amlp~~ At the end ofthe same decade and end users This product M yrather ampan short-lid S o h e AG became the first was constructedaccordmgto thetrends TechnoIogd gaps and mandacturerto introduce fburth-incompatibleprodudacquisitions principles of a s o h e architecture

were avoided generationtechndoampywith compre- When others discoveredthe idea of hensive functionality-NATURAL the software architecture and began

At the same time (~ntinuitpwas This helped address the problems to describeit as a pwely theoretical combined withinnomtioh that many orpiations had with concept S o h e AG could already S o h AG repeatedlyintroduced applicationbacklogs and extrrmely point to a concrete systematidy state-of-the-artnew producc~that high maintenance requirements created architectum

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

9NG BUSINESS SUCCESS

d d p m e i i t ofADABAS 3 into ADABAS 4 90 per cent of d such user suggestionswere incot-

h ~ t h i s ~ m n ~ t i spawed Other products suchas

based onSofhm AGs develop mentphilosophy A practical orien-tation toward users needs as opposed to absttxctacademic theories lras been the guidmgrule in the developmentofSoamp AG tecbndogieg Inthisappmath soft-wae ddopmmt is an interactive process inwhich the theorehl d a i s is camtandymeasured against p k t i d r e q ~ ~ Imd q d y m amp d by input meiwd fiomusers

hht~Ogwithmmwastke most importaxitprinciple behind ourproduct dmhPmath-om the vetyswL ampedlyimpamafi the S h e AG User Groups which were founded inthe early seventies At regdarly scheduled meet+ members o f s p e d work groups discuss product develop ment and draw up suggestionsFor example during the

ADABAS m (text r e t t i d ) and NATURAL STATISTICALLINK are the direct result ofpartiamp cusmmers concrete needs

onthe m e techno-$ampd hme not beamp tmubted

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

me Human Toucb ByCQ~WBd w bstate-d Qe-art logy S o h w G has maamp a cuntri-b~ridatsi-453-h-a ink~ t y - ~ ~ l y Themq impartantm amp b ~ ~ ~ t d a t a p-hgis b b amp b ~ ~ s s ~ i i l ~~ c d c o n -sidmthrw butitrste9$is dwer andd mto a humandew-p ~ ~ ~ c i d e a ~ d d $ampwe AG products k the separa tbn logid andphgsigd kyctsafpmmhg- ieend w m pmM- =wmpletdyMated h m dl4 Chammhtiaofamp irdGipmab mmagmeatmls dtosdd TiSg d f l t gave-3 ifg fIeiWgmd -ty adwasfZle-Wifor theh ddopmentpmdwi~ty charathMcoffoutb-gen~tion

comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

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comes into form Information p cesshg msh indude remating and conmllhg axx incmskglyccqdex co~pora~~d t y hegrating new componentswith existingmgmh-tion and infbrmation managmnent s m withip a uniform COP

porate mtqgand copingwith multiple bgwgampq d y the c-te infomationreposiw mustofamp m p tWnmtionon m a r h w h i c h ~ y a t e b g e l p

md m ~ p m v i d ean early w m h gsystem tbrc b q e to the corporate enviPome0t a whole

le Strategic Solution Software At the same time the owing developmentsindata p v t h g make newrequirements onsoamp-ware Decamptibfl is spmding rapidly p-y for cost TWOS

N e w c o ~ m w i f b ~ ~ ~ p r i c d p ~ md o are king developed andwil l have w be inte-p t e dwith existing h d m e and s- appWtkhsP-inceampe gmwing number ofpossiblewlu-tionsmakes coprate data pro-cessingmoreandm= in) sofmrespsths must kampMeto manage cmnplampl$ And in turn aeates exmlely high d d onspsternperEo~c Onlpa whmt h l l y - a d -r n d s o r e isAle-tosrte mch c o n d i c t o ~m d swithin a ~ r n s u a ~

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

~ sapproachThhNew smcgs ~ ~ a A i p d m h e d o n ofshckmdNew Technology Mbmrationampa a wbafeh heping with t I r ~ ~ f o r n I Ecabpampwc kamppLi-alld aapmmerr ampamp X$QWUG an- a t b t i d amp r n k ampxampqS o b AG is the ampst h p I yw d ~ ts m i m g p rn- toampW-+f- d d h d obj- withthampdevirnt ampeampkamp1ogy fot c o ixttampampini-w~~ ~ amptapmasing (vitha p m d u ~ ~nmiandsPmcasitlgmuld6 h e phmdamptDW) place ina ~xedwd~-umampqamp-Wtp-Rdatimhqapp- etsampampnmmt with dk-mgankri- c a a d s t i d ~ g ~ k l e tiQpbmgpeampmdinthemast ~ d l qddw chf suitableampc~ThmEftta pmcessiq mite At the sametampgt - - a d w b e d y amp ~ ~ ~ ~ amp t h e p m ~ moriented -wflJ now heable o f s i h g -tion o md t~ream hllIWI3rhopTQEeSSa the amptiesramptiq$ta ampa m m m d d y

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

amp 1988 -An Overview The ~~e ofh e spenWe-wedsotwateampampteam was d ~ p ~ ~ b y m t o m e ~ s l a s t year ln the fupur too ISA will vide a binmrkwithh whith more and more pomrhl s o h systems -be matamp sywmsbt willsemeas fhehasisfor-and mare ~~~~application S ~ S

haddihnto productlimns wwafemsmm~dqp13-mion d amp m t teams are b w m h g - d m a f e m Cmtmnersmuiderthetdk-

doho f p o ~sdmre pmwts w i amp S o h e A G s smmptioarof repmibilityfar zppW4dad-opmentprajecb-asa su+ a p p d to salvingheirpmbde~s During19$$ Sampwm LQ(SsUam-M y confglampmoIe d m1m c u ~s projects in~ the Appb-d mSystems at-

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A Status Report

For the first timq this StatusReport contains both data onSoftware AG G-y a d atemetltson the Software AG ~ r ampas a whole and on the S o h AG Concern (these terms are e-ed beiaw)

S o h e AG G m y (SAG D) Themain o w t i o m activein Germany are

S- AG (theparent company) and SoftwareAG h d m g e n 8t Co(SAG AN)

SAG ANwhich provides applica-tion sofutiomhrSoftware AG cus-tomers b e p business activitieson January1st 1988 The sum ofthe activities ofthe mocompaniesis c a m p b l e toSoftware AGs busi-ness in1987

S o h e AG Concern (SAG C) The Sohare AG Concerncom-prises all those companiesinwhich SoftwareAG holds a majorityinter-est Theseinclude both the vast majorityofEuromafflliawand Software AG ofNorthAmeica

S o h AG Group (SAG G) Ih addition to these affJiatts a ser ofpamen throughout the world also distxibuteand support S o h AG products either as their ody o as their primary business actiPity

The addresses of theindividual kmandpYbmxegiveninthis Repofl Once again resuh for 1888were good Dopite strong competition the numbex of user licenses fbr S o h e AG p d m hcmsed over the previous year throughout the wodd In particular the numbt oflicenses granted for the data bast managementsystem ADABAS in the e x m e l y competitiveEM SIEMENS fnarketkw a dmen-tioxning Sdesofaver330 new licenses representa furtherdear increase on the previousyear whic yielded slightlymore ampan 300 Thl total number ofs m installed including licencesfor D E C N X maamp rose toover 3500

InadditiontotheADABAS licenses a c ~ m p n d i n gnamp oflicenses were granted forthe MIWRAL Ddopment system

BenlbmakIReslllts Prove Mormance AIso worth special mention here is the standardperfbrmance test con-ducted for ADABAS which result-ed in a figure of388standardTPI transactionsper second This cle a c e amp the performance ofired $ other sstems

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

All the newproducts and product versions listed in the Status Report for 1887as availablein1988 were completed and deliveredontime

ParticularlySuccessfulNew Products are - ADABAS ONWNESERVICES anADABAS Selectable Unit that allowshmactive management of ADABAS data bases

- NATURALOPTIMIZER COMPEER a NATURAL Seleaable Unit thatgenerates optimizedmachine code b m the NATURAL some code

- NATURALDB2 which allow IBMmB2 dam tobeprocessed ina NATURAL environment

- CON-NECT anofflce automa-tion system

- NET-PASS a VTAM-based sessionmanager

- ADABAS TRS and NATtrm DOCUMENTMANAGEMENT text and document management systems that allow contents-based retried

- NATURAL PROCESS a s y s t u n fbr moniampng and controlhag the operatingsystem environment

As inthe past the orpbtionwas amparactamped bya slgruficmtgrowth in staffd mthe year under report The number ~f SAG D employees rosefrom 497 at the end of1987 to 729at the end uf1988North American employeesincreased to more than 500 Although growth occurred in all areas it was paaim-lady pronounced insales customer support applimtion development and product development

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

t e

SAG~ s -increasedb mu~ ~ nM 171(1988 DM 2 d i o nin HNS S N Ar m m w h u d b m $ 6 7 ~ r o $ 7 7 idlion ddr$FY 88 Merits mampn raa calmamp-W O ~ a g amp s ~ A w a s a b ~

in tfiea r a ofCat ym SAGMAp t e d CY88 w~~~its~activitics T W ~ Waf$42 milha cust~mizedapamp+ s o i ~ ~

- d d y hiE m p e done -over ~ p ~ i s d u~ O O ~ ~ ~ ~ ~ w e l E - b d w p k t i ~ ahaewe inampf twm AGs mrsm- d e v d q m m ~ b i nar~rmfkmfesjrstems business mdto awingtum+damp~ts Thus axe mendedm q eafpnodwwd f a r a s t o ~ e r s ~S o h mAGsetvices a k din am offa$amp ~ ~ ~ ~ r s ~ aaiaedqtppliWiogdev$~gmm~ ~ d f t m i r e s u p p k i n r t j a ~ a amp h

w b m theycansobe thamppmoEw

ThF pfodum d d q d blWmm2Areas of Activity AG 4amp d d ~ phigh-p

As inpreciousyam theminarea state-of-the-artWE-ufcorpmateddrff-msM ~ P cadom Mot onlydo they aid meritmdthe gmthigoflicenses cost f e d h n i ndie imtmer hs4hmtabewh e n d ~ n t z ~ t aampmahey d d o p h g~ ~ ampa B irspmmnexlthi~ the ~ ~ mtamp~vmi~ewp-appliathm1~amp~Grata$

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

1 Employees Per Geographic Region O ~ D ~ C 311988)

l a s ~ d ~ p ~ t b e p ~ o ~ dfhploym hApplidonand FradqctDwdqrnat~ d l eby more klmai iheavmge6rtbe~paspa~ USA 1 awhole

PmpTi~nlw735 Prapdcm1988 44

TheGmupiRvestedover DM 60 miltionin the dedspmerrtampnew produrn h m

Revenue Per Geographic Region (mofamp= 3119881

7- --

Particularly SuccessfulMarkets m= m

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

comunicating newmcds fbr extendedproduct functiodty The lively exchange ~fviews char-acteristic of User Group meetings ptoves the d u e ofsuch a fbrum for information and communication

As in the past 1988 witnessed inter-national andnational User Con-

ferenceswith growingnumbers of pddpants More than2200 people attendedthe conference in NashvilleTennessee and mare than 1000attended the European confer-ence in Vienna These User Confer-ences are among the largest oftheir kind in the industiy

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

ThentmkofMre AG ~tafFrSmnthwuslpIA d o f 7 2 9 3 2 m d r e t b h amp e ~ pm)were emplopiby SAG Dat tbe d of 1988 over 500 people amtmphpdbySampmwAGin N Q ~ b e r i a The oqaampampds nefwoMmampsttuGhwaf mmpmmthadi kenscomplete s u ~ i P d m a s A m m p amp s a amp l l t h e - t amp amp w h t h ~ ~r i l~amp dmqmte s m c m e s h m A G bas W y I n p I e m a i d inp d c e m a n p c amp ~ ~ e ssfm-te z4mgemmth t mmilytloan bampg-ed Thush ~ b

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

NG BUSINESS 3UCCESS

I ~ ~ d t ) and moved into fk8 Inadditionwork has $on thesecondsQge ofthe $addingiu Darmstadt-Eber-whichwillprovideroomfor ampa360employees For func ireasom however three sites sntinue to existinD-dt

ampeAG of North America 3td constructionand moved bnewheadquarters building n V l

Cooperationwith sales partners outside Europe is extremely impor-tant both for improvingmarkt penetration and for customer support Software AGs relations with its partners were extended and reinforced

S o w e AG Anwendungen amp Co offers tailor-madeappliationsoh-tiom for the German-speaking m a r b The companywas founded by Software AG Gemmyand the Swiss SAG Software Systems AG

InNorthAmericaSo f b m AG Custom Solutions teams ofexpert consultants use Software AG tech-nology to create business soIutions for a growingktofcustomers

SoftwareAG anticipates a M e r i n m s e inrevenue from existing produrn Inaddition h e following newproducts shouldmakea signf~mntcontribution to future operaringndts

- ADABAS HPETPF a hrgh-per-fcrrmance variety ofADABAS which d m integrated transac-tion processingcomponents

- ADABAS NATURAL and PREDICTfor WANGNS corn-putm

- PRJDiCTCASE a computer-aideds o h e engineering system that supports4p h e s of appliationimplemm~tion

- NATURAL CONSTRUCTand NATURALARCZITTECT WORKSTATION CASE systems which automate applia-tion generation activities

Inaddition activities inthe Applicationsarea win be expanded further

For 1989 Scdlmre AG is aiming at a sigaifantintreaseinactivityin the Noamp Amerian market

ThroughhmsedCASE ofhmg a growingproduct line brDigid Equipment Corporationand WANG users expandedt a m of Custom Solutionsperso~mdand new technologieswhich aliow users tomaximize the capabilities of a I t m t e data mamaganent environ-ments (as NATURAL DB2 does fbr DB2 us+ Sofhare AG will con-tinueto ampnewusers inNorth h amp c Z

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A Development of Software AG Products in 1981

dISA The open Integrated Software Architecture IBMSIEMENSI E~wiromnent -Common User Access New Prodat -CommonI Versb1zs and

Application Solution 8

-Application Dcvclopmenr prod^^

-InformationResourceManagernent

-Data Base Managementand Distribution

Multiple Systenls Environment 1 TookfwI-Prodmtiue A p p h

tionDevelopment

S amp m amp ~ h d f qmdediwpduct mnge 4hiB tbk h e W amp df its open htqgitted SoftmareMtectutCiSi)in1988 T k w m p y amp its a ~ e a ~ o f ~ e d ~ d ~ hrm-hdb

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

ZeR COMPILER Unit for an existing

OMPILERcondu-

OPTIMIZER COM-

data manipulationfunc-t matches the throughput

NATURAL SQLDB2 oEm these usersa fourth-generationdwelop-ment enampmmt with anactive integrated dictionary

SinceNATURAZ SQLDB2 option-allysupports VSAM DL1 and ADABAS in addition to the above-mentioned data storage systems users cancreate applicatiansthat process data h m all these environments m q m n t l y and simultaneously

PREDICT CASE (newprodact)

Software AGs PREDICT CASE is a computer supportsystemhr implementing large-sale applica-tionsystems It supporQ systematic planned requirements d y s i s and implementation smauring

PREDICT CASE offers Software AG customers a p o d CASE teamp~lou dmt forms a positive contrastto the other produc~in this area aireadyon the m a r k

NATURAL CONSTRUCT (newproduct) NATURALCONSTRUCT allom users ta generate complete applica-tion sys- atrtomaticdy without having to d t e programs

Applicationsystem functionalityis determinedautomatically fbm a s d nwnbq ofpameters using data maintenance query and report perationprogram NATURAL CONSTRUCTautomatidy gene-rates batH the programs needed and the menu procedures for selecting individual Eunctions

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

2 D ~ uBase

As the number ofinteractive appli-cationsystems to be nm onthe basis ofan integrateddata base growsso do the requiremeria made ontheDBMS itsamp

All technical opportunities offered by the operatingsystem environ-ment must be used ifmaximum system performanceis to be achieved

ADABAS bas Iong been optimally integratedinto its various operating system environments

A M e r opportunityto indease performance isnow OMby an integrated DBDC environment

ADABAS HPETFF (~prod=O S o b AGs ADMAS WWTPF offersan integrated DBDC envi-ronment for DMSMVSXA and M V S E S A operatingsystems It completely eliminates the w m u -nication and coodimtion between multiple a d h spaces that isnor-d ynecessary Use at customer sites has conbled that ADABAS HPETPF reduces todCPU 1-d by roughly40 inabsolute terms incorn-n with c o m t i o d Waxaction systms operatingin separate address spaces

3 End-User

Mare andmore customers now urgently need integrated text and data pmcessing and c o r n m d appfica-tion systms Not ody do they need tolay and manipulate text excapts indocument tbrmfIexib1y theyalso have tobe ableto retrieve text onthebasis ofi~ contents by m b i i severaI search team

NATURAL D O C W N MANAGEMENT (ncwproduct) MATURAL DOCUMENT MANAGEMENTallows the fl ible specification of document structures(authortide divisions etr) via parame data entry maintenance query document+lay W o r n are automaticallyavailable

Users can createaflexibledocu-m a t managementsystem with NATUR4L DOCUMENT MANAGEMENT without fitst havingm miteapplicati~n~pm-amprams

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

systems

T l l k m ~ ~ I E M r r s e r M m swh PPmampw Uaqpnwand S e s ~ S be~amp~ m 3 ~ y mhmiseontyare d -adableinaPCawimmmtand t a i l l n o t b e i n t a p m ~ d a a ~ daqdhIBMs SAA d t a s ~ untilhta

VM-PASS (newproduct)

With IN-PASS asessi~f~mqp metit- kmaEsaet for VM thehw-h e bbased ~ 3 1hi t afNET-BA$S3 wtrjamp meamthatcompatible ampQC-

t i o d ~ amp t s f O r ~ m ~ m a

mWECTTELEX

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

Large tomper camptw opmting r n ~ d p d d a p $ i c a W ~ n L 1 d$3 beable oautaate opga-tiomI~~plhmappliampas = r n - M d p r o c rlampamp This m a i l stheabilityta Mudethefwctiomd e d tanrxi qpliati~mvampiin t h w ~ t e m h-1~

~~PROCESS (newproduct)

At present MTURAL PmCESS enables users to access and control activitiesin IBMs M V S operating system The system mvironment conhol functions can be imple-mented asNATURAL programs and thus integratedintoapplica-tions

The use ufDECcornputenhr wdlam~ ~ P amp QC ~w M ampm continues togOwhamp d y

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

CONSTRUCT

RAL ESSIONAL (VMS)

ALPROFESSIONAL s a tool kit that Mer s h -ie developmentand main-ampNATURAL applications

WANG

S h eB88S d b mAGprod-b e also hem aMabIrto usei imr WmGNS anhonmc~amp TheWmGNS enviromentisin regardtoamphare AGprod- cunipletelycomfltiie with ampe IBM 3376 qwimmerkT h enew WPlPlrG VS5QaOa d VS7OOO ma-p u t e r s g amp a ~ y ~ -tive atmiampamp ti0 drtmeaddra pQ~oz l thebas iso fWy XBMco-Me d e g

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A Research and Development Once agais numerous deveIop-m a t projects were continued or started in1988 The resultswill be ofhredtoSoftwareAG cusmmers inthe n a r future as new product versions andprodacts

Ertisthg product ranges are being extended and a number of new basic technologiesdeveloped as described below

Enbamed Data Base

ADABAS ENTIRE With ADABAS ENTIRE tbe manipulationofcomplex struc tured data objea becomes part of standard data base fimctiodty The productprovides capabilities fbr recursive samp and active cross-refkrences wMe actively monitorcing data mnsistency

ADABAS ENTIRE is an integrated componentofthe PREDICT CASE and N A T U W EXPERT products

ADABAS ENTEE will be made a d a b l e in a d y 1990

ADARAS GEOGRAPHIC More and more commerdalappli cations require the geographical loahation ofcomrnamp data Until nowonly addressescodd E used

ADABAS GEOGRAPHICenabl the precise geograpbidnotation commercial data via heirloamp tiononanelecmnicmap Equally it supports the remkval of such data on the basis ofthis geographical mtatioa

ADABAS GEOGWHIC db available in early of 1990

ADABASFAST-PATH A W A S FAST-PATH is speciaamp designed h r usewith large smrag resources such as those which 4 be available with MVSESA TaM that axe only needed fbr access car be managed transparentlyunder tj mnmI of the user task in data I spaces in the central store This

~~Xcantlyreduces CPU load d access i ADABAS FAST-PATH willbe adable at the end of 1989

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

MTrJRAI GEOGRAPHIC WORKSTATION NATURAL GEOGRAPHIC WORKSTATIONallows data and their geugraphical locations tobe manipdated at agraphic w o r k -tion Maps can be displayed ona PC termid indi~dudareas enlargedand commercial data pro-jected onto themap

NATUML GEOGRAPHIC WORKSTATXON will be available inearIy 1990

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

PREDICTCASE 2 PRXDICT CASE 2 isa NAWRAL-based computer-supported applica-tion development environmentampat covers all stages in an appliauons life cyde from the initial design to maintenance of thefinishedpro-gr-

Business functions and data axe specifiedin the PREDICTCASE environment as opposed to hdivid-ual p m p m The program are automatidyassembled which means that maintenance can a h be performed at the specificationI d

PREDICT CASE 2 will be avail-able in1989

PREDICT CASE WORKSX4TION PREDICT CASE WORK-STATION is the graphic worbta-tion used toprocess objects horn the PREDICT CASE development data base in graphicform

PREDICT CASE WORK-SUTION automatidyarranges t h e selectedobjects graphically so that graphics that would o amp d e take hours to create can now be completed ina matter of seconds

PREDICT CASE WORK-STATIONwil l be available in1488

NATURAL EXPERT Expert systems can be used inappli-cations to solvecomplexproblems in which decisions have tobe made on the basis of a large number of delis

Examples indude insurance risk analysis trankcredit evaluation and medical and technical diag-nostic systems

MATUML EXPERT extends NATURAL functionalityto indude a rule-based expert system tbat can be completelyintegrated in applia-tiom The productprovideshigh throughput aa$supports numerous c o n c m t usamp

MTURALEXPERT dbe avail-able at the end of l989

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

NATURAL EXECUTIVE N A m W EXECUTIVE pmvida a new USQ interface that ismore tai-Iwed to end users rids

M a ~ ~ o f ~ 2 ~ NATURALEXECUUTIVEo f ba windowing technique active hdp functions and a wide range of func-t i a m t b a t ~ ~ c b ~ c i t l ~ S ~ T T S T I e A L ~ any way desired illtmawlaowthe upemis dTSA

p m d e s w u mintegrationof 0 t h e r i x I m Mp d w

NAmRAL SrnTISTIcALLINK The SAS software padage offers users a wide range of statistid and graphic q r t i n g fundom

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

Tranuctdofi Procasing and Comma~iaztio~ systems COM-PLETE45 COM-PLETE 45 allows complete adaptationto MVSXA orESA environmentr and supportsmulti-processor operationswith conversa-tional transaction processamp

The data managementsystems supported areADABAS which provides optimum communication and IBMs DB2

COM-PLETE45 will be available in1989

MTURAL PROCESS (VSE andBS2000environments)

The proven NATURALPROCESS technology for the MVS environ-ment dbe extended to cover BS2000and VSEThus usersd be provided with fuctiom with which roautomate system k n -ment operations fitom within applicationsystems

NATUML PROCESS VSE BS2000wiIl be available in1989

NATURAL OPERATIONS MTUIRAL PROCESS markd SofhpareAGs entry into the market for system-orientedprodurn br computercenter automation

NATURAL OPERATIONS which isbased onNATURAL PROCESS offers automatedjob processcon-traI

NATURALOPERATIUNSdo the a m h n of job n e l m hdlidingr e s t a r r p c e d ~and initiationofanlineappliaitbm h d o m h y can be h r f heta d ~ N A T U R A L R A L p ~ ~

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

W I W CONSOLE 8AlT$WLCONSOLEallom dmmde operations to be ktomijtedtoa hrge extent

asapcanbe distributed across a I=mbampof 1ogidScomIes and ~ p w e g dwith automatic pmce-dmswhich means h a the system anpampm many routine activitia amp u ~ ~ y

MTLALCONSOLE will be in 1989I

INATURAL ISPF ampUURAL ISPF provides func-~aa l i tythat is almost identical to

ampat of IBMISPF and significantly gdmcesit

h contrast to IBMISPF NATU-W lSPF may be used with a11 lT ems available with NATURAL mamp as CICS and COM-PLETE

I -SinceNATURAL ISPF is imple- Idented as a NATURAL applica-tionit is portable across different operatingsystem environments and anthusalso be used under VSE and BS2000

One difference between NAW-RAL ISPF and IBMISPF is that the former requires considerably

I less resources and so can be used by a large numer of users

NATURAL 2 NATURAL2 for DECNAX envi-ronmenl3will providefullcompafi-bility between the IBM andDEC VAXworlds at the NATURAL 2 IeveL The system has been cun-siderably mtmctmd md is thus capable of extensioninto anOLTP hallsaction system

NATURAL 2 will be availablein 1989

MTURAL Rdb and RMSSupport

SoftwareAGs NATURAL Rdb Support opens up the NATURAL system to allow data from DEC-specific data storagesystems to be pmcessed

The f k h NATURAL data manip-ulation statements cannow also be usedwith Rdb and RMS fdes

NATURAL Rdb and RMSwill be availablein1989

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

NATURAL C O W a O N N A T U W CONNECTIONd d o wXBM PCs to lxused as work-s~t ionswith DECNAXcompu-ters

Inthis context N A m CON-NECTION offers the same function-ality as in a purely IBM world including hcilitiesfor active data d e r and tamp emulation

NATURAL CONNECTIONwill be available in1989

ADABASNlTUUL PC ADABASNATURALPC offers fullm a i n b e functionalityfor usm Ufos2operatings y s t m Thus PCs may be used as stand-alone devices or when linked to-gether via LANs as a development ampnment or for runninglocal applications

Inadditionto its ADABAS Id NATURAL canalso process data from SQL-basedsystems inthis environment

ADABASNATURAL PCwill be availablein1988

ADABASNXTUKAL umx SoftwareAGs ADABASJUTU-RAL UMXmeets the requirement voiced by many usetswho wish to improve the flexibilityofapplica-tion opemtions usinga UNIX envi-ronment but who cannot a d e v e thisusingSQL and the Cpro-gmming lanuage done

ADAMSNATUW UNIXis furtherproof the portabilityoffered by theopenIntegated S o b e Architecture

ADABASNATURAL UNTX d be made adab le in the come of

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

~ ~ ~

Activities in the Application Sector k ~ u s t o mSolutionsin North icaS o h e AGs Applica-sector in Europe creates tailor-turn-keyapplicationsystems istomers The orgnization assumescomplete responsibil-r the project or acts in cooper-with the client as desired

rnAG is investing contin-yin this arena toprovide mers with qualified support tplicationsystem develop Over the last few years it bas ~Ietednumerous projects suc-lily and amassed considerable -how both in different appli-I sectors and in targeted pro-lanagement In 1988more

V i m

than 600staffwere employedin the Applications sectorin Europe

The following paragraphs present a brief overview of some of the appli-cation projects completed in 1988 or currently under devdupment by SoftwareAG applicationconsultant teams around the world

ThE hgwprivatetpw npwlbr $rowhAwtamp SEASJPAGO ampONE~ U ~ A T O W has -do 1amp- m A D A R M MTUk4ampb4lsdbwbgs-gstem a r r d a n t ~ w ~ ~ q~gt~~t ioni jornsaatch4tha penx oxmas m c ~ampld v Nll6hdawceimnbdhgrtJle wid dddpmen~pdampble 6 t h luTuIuL arrdthelow--ampIcy d a t t ~ d9tmagC prddby A W A S a s w d l s s b y t h ~ ~ ~~~ wbiamppampamp add-t i d s e d t y nemtdqstm usamp aSIEMENSRWXI maddie witha~XNG~~asabclchrp s p k d 8 0 ~ basampampd hengut th-e rest theqqbftm dbt--up tQ tbermve]~ f l r n ~ k$TARTillsix A

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

hXampbZtlPWest-$-amp m t i o l Wvision ampr staadgampdpmcsfh pssi mation system smwith a mitemsreampedo by 1 ~ ~ ~ u t e r d a a ~ h thedpa(aGemapressagaq ampan be stored and indexedkm W y i n a p m s databe T h ~ a l ~ h v e ~ amp m t b

a l e new$ySmis auwwampg fa- latestgemh r n thism e

mishddliqpdapdty system bas ddemhlyhpm ~ b ~ t o a I l ~ i t t a I xh e topicampof newsitam i n d c d amprdssly in the d8-t makesthe ecIhts9ltjab a i mat

samsh e

Asysrmfaritwdmd stet orderdwti4afw largepis b h w ~ t e d amp d l e L a Wer File (W)atM~esm-~ampampdt -BampM-mbW B Theselap-pmj- a d thew tingltiam ampcm~e~moamp m - w o f m m g e r $ o m d mh d amp progress cmdPkrtiaMyu mrrbgarethe b m bf WN-WECT (tezpecmings e l W cmail)andhtdaces1

-P

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

GreatBritain TheBritish F4h Wihte (T3R) m ~ e s ~ ~ w w ~ ~ 3$W f i m d w i n pro-pmSameofamp mw ampamp hampmthehanmyIndiddk don k m d erm51tbn qD

p~oMdeg0- ampti-

ampamds e

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

The syt- wasp l dmgtgakzto pmhctioakApd 1988

L A P B R ~ E E ~ ~ t D + ~ f b r a n u m k o f h h eAGpduch it p k b l e to am q d e b e dine ~ w = ~ w P i p a n ~ = -a h ~ p h w Isaita p ~ s m ~ d Apd 198inxfkIgtWbampg shop linked taold-qm-h=m=

USA USSHUNTi9 bned amp eampat tehcmm-wltiathe UampdSwamp k rnrmisiaedd c w m e rrnatnahnsystemthat a u a d ~ m t tb3W dpe~ s i m u l ~ u s f ~ d ~ ~ 6 g s i d ~ h x m M o ~ ~ a miEampoorJine haidId day mwmti~4 tbevaiousMjohAllina~ k d a k h b m m e h 8 0ampperampy

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

Venezgela

The Ministry of Transport switched fiom manual processing to com- puter-supported procedures (in- cluding documentation and training) in only three months The system created is used to register all vehicles in the country (roughly 2 million) In addition it processes all updates such as changes of

80000 bansac- tions are performed per day

To aid in issuing driving licenses the system is also integrated with the residents registration office which contains data on more than 40 million people

All the applications were created in NATURAL a COBOL compiler is not used The system is run on an IBM 4381 Conversion from VSE to MVS was completed in four days

BANCO CONSOLIDADO decid- ed to convert to IBM machines to cope with its increasing volume of business and installed an IBM 3090 150E with 1000 terminals ADABAS and NATURAL were selected as the basis for application development

All existing applications were converted w i h n 12 months and a further thirty developed These include risk appraisal short- medium- and long-term invest- menby savings deposits and current and savings account maintenance The system processes more than 300000 online transactions per day using a country-wide network

Banking Software The development of complex sophisticated application solutions is Software AGs answer to its customers growing need for tailor made strategic integrated and comprehensive solutions

In cooperation with three banks Soha re AG is developing a com- prehensive application solution to cover all common areas of bankine activity

This new development guarantees system offering optimum function slit- extendability integration and portability The aim is to pro- duce an application solution whos high degree of functionality and high quality also represent an opti- mum solution for other banks

Soha re AG guarantees long-term maintenance of the system

A Activities in the Training Sector

The consistent realization of Software AGs clear concept led to a significant increase in activity in the training sector and the services offered The foundation of the Software AG Academie provides a forum for specialist seminars at a more general level than that of the product training that already existed

The Software AG Academie Following the foundation of the Software AG Acadernie ten differ- ent specialist seminars on topical themes in information processing were held in Germany The target groups for these seminars ranged fiom top management to DP spe- cialists and management and took

in both customers and other sofi- ware system manufacturers

Product training In this area Software AG currently offers 32 different courses on the use of its products In Germany alone a total of 35 trainers taught roughly 7000 participants in 550 courses A corresponding number of courses were also held in other countries

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

A Consolidated Domestic Accounts h m thrA p p d

ontbe Methods fccorcntingand ampion Used

~ccmableand liabilitiw opsnon t iserepoamp~WeKe~~d thtmsslke onbt datq exceptwhm theiram n f a c d

Full camlidationwasp e r f b e d w e r e ~ ~ t h e ~ o f - ~ o t ina a d a m e with section340 high(inthemeamplWtia]~ p h 2 ~ t h e I k d d ~ tkurmcd CbdeThecut-off amptcf i3rampecof tso~accoum Dm31198amp is ahh e reporbg date for bath c ( s r n ~mud accollXlD Um md d d o n d s ~ ~ w t x e k d

2Explanutim of tbe B~tlameSbeet The intangible assets mentioned tents t r a d d a d similar~ ~ ~ 1 a n d ~ e d ~ ~ m o f

d a c m u a $ )refertosoftwazexquiredhr a considerationT h e d a ~ ~ ~ m f ~ W h i w A G

a d SdtweAG l a f E d w n 8 r Coand h ecmmfidateddoadtic mamp i e b a r m d i t e d and -dim q amp amp a M ampcak

Income and expendiauc~in hip currencieswashoked duringrhe y e a r a t t h e r a t e o f 4 Accounts

Land and leasehold fshtx togefhct with bddiugs haeasedas against the previous year throughka-sition ofa piece drd t s b t e d by leasehold i x x b p v m ~

The item papmeamp onaccountand W b I t assamp in the come of ~ t r i d o n ~ i n ~ amp t o the OfficeBuildingIIin the u h h winDarmshdt con-structionof whichlxgnin 1988

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

- - - - -

- - - - - -

- -

Shares in affiliated undampgs amount toTDM 34526 The hold-ings concerned mainlyact as sales companies capid contributions had been made full at the bal-ancesheet date the b k v d u e in ach rase correspondsto the original mists

Other loans refers exclusivelyto employee loam

The amount ofaccounisreceivable has increased with the expansion of business activities

The amount h e from aRdkttd companieshas increased as against the previous year This is d y the result ofongoing sales activities and accounts receivablefrom Sofiware AGs new subsidiaries

In the item mpital and reg-

the subscribed apitaI comprises 100000 barer shares witha nomi-nal value ofDM 50- each

Thc revenue reserves comprise the legallyrequiredminimum reserves ofDM 500000 plus other reserves amountingta DM 7710949847

The sum oFDM 579248181 rpas tmmkrred from the net income shownin the balance sheet fbr the previous year to the otherr a e m by the general meetingofthe share-holders

Theitem provisions hpensions refers solely to commimen~to individuals

Provhionsfbr taxdon referfo net worth taxfbr 1988

As in the past othcr pro+ons cover obliptioosin respect to guarantees holidays and hnuses as well as other rish foreseeable on the Mance sheet date

Theamounto owed tocredit institutionsmainly served to finance the acquisitionof the interestinSoftware AG Systems Inc The accounts payable are almost the same as in the previous year

3 Eqlitmztiofi of tbe Profit a d Loss Account As inthepast the total cost method ofshort-termresultsaccounting msused

~ p m o f d umuam EinTDM) Awarding M am ofactivity 0 grantingofrkbsf w a-o o t h ~ t d m h l f f ~ c n u ~

t h c d o inthcPsdcxalRepubIkof~-0 a b d

-I

The i n m e in revenue amounted to DM 596 million (-35 )

The item othertechnid revenues refers mainlytoapplicationdevel-opment (TDM179061 training (IDM 8455) and mnsdtancy (TDM 2139)

4 OtbcrZ ~ f m t i m The followingpeople belonged to the SupemisoyBoard during the yjear under review

Dr Hermann Kleinsttick(Chainn Darmstadt

Dr Klaus Albrecht Ruppemhain

DrFranz Hesse

The followingpeople belmged to the Board of Managementin the yearundex review I Dip1-Math PeterSampd (C Darmsbdt

Dig-Ing Peter Pa Rdseim

DLTio S t r i h e FranldrYt am Main

1983 1987

-- -159283 117440

39635 Za656 - 31590 23858 2 w O 8 In914

- -- 33494

-

147814

m ~ I N GBUSINESS 3UCCESS

A About the Company

The amp data b implg

sue

1 ~ampoP ofthcmw ~ ~ c r u ~ ~ i s mtedona commercial p p r p ~ t h e t d m i d ampbasisfor the c o m w t

Ail

N A T U ~ i s ~ l e m ~ dcum-mampyfb~thekdme Thrsp tm contains n w ~ l o g i m l ~ ~ maampamp havesince become aft-warestdmh

Tbe tm systems undergjo con-tinuma dwd~pmmtandamp meritand become the bashfor nnmmu$othersohmecom-FB -c nowfaena har-monii6usMqstegl ford mqwmteDPand ofkcfunction m w The cmtiund m W suW-kiainE u q e andcwpedcm ventures wamshtltehunda-h f b r d w ~ p a n f s w o ~ c success

15Atheapknnt-epredSdmm M w debs totalh o r n ampg atk o u slmehwithdear

Usm arepruvidedwith evenmaampamp OEdxoioe and wcuityintampampdnamp

h n e AG co~l~~lidata-itss w a s d - w i d e It hnowpmem indl majQrampwiampampnaM mbsidiariesin Humpearadthe Uamp W a n d repsaiaaiivain more ~ f i f t y c ( 3 d euro S

The a c ~ n d S o ~AG of Namp Amampa mdthe famcEati011 d n a t b dhItalyd MdmhaPemened SoRwsve AGs position mthese impolmt horderm providehsapidiygrowingwodd h a w stdEWifha suitable errPiDonmetytheconcerrrmoved inoaa~erbuiIdbgintheRdd Republic (AlsIwh) At the a m h e a I 5 0 s d t h c ~ e c o n d ~ o f t h e ~ ~ inh t a amp - E b d t

Oudook for 1989

A Sales and Service Ofices

SoftcRareAG ofNorth A m a h U190Sunrist ValleyDamp ~~tOnVA22091 Phone (703) 860-5050 Telex275301 Paut (703) 391-6975 ToU-free1-800-843-9534

BoJtrm 100Grandvim Road Bmhme MA 02184 Pbont (617) 848-5057

a CiticorpPlaza 8420W B ~ T IMawr Avenue C ~ I L W 1 P h w c (312)693-0430

ckampd Four Commerce ParkSquaie 23m hplepard ampachWOOd OH44m Phone (216) 292-8 182

Dnracr 300Union B o u l d Suite 610 lahad CO 80228 h e (303) 987-3972

WI 39111 b Mile Road bonkMI48152 Phone(313) 591-7262

Uwampm 515 Wit Greens Road Houston T X 77067 Phone (7l3) 872-0003

JhmCifJ 8Ml Indian CieekPkwy Suite 260 B1dg 6 0CredandFark KS66212 Phone (913) 451-1651

bhamp 18300Von Karman Avenue MeCA 927l5 Phone (7l4) 553-0880

M M 1650W 882ndStreet BloomingtonMN 55431 Phone (612) 8884404

N - J m 4M) Kclby Smet hrtLCENJ07024 Phone (201) 461-6611

-TberandmlrltBuilding 1Station Square Phburgh PA15219 P b n c (4l2)471-4667

h m1PI s m Edifcio Madico Smta Crua Suite 2U73 CszfIe Santa C~IZ byamon hem R b 00619 Phone (809)740-3865

-INTERNATIONAL SALES

TdcinhmaticaS k Phone 01-313-1747

h e S PL (Australia) Pty ~imitd Phone02-498-8555

3 r d CONSIST Phone011-283-51U

HmW SPLsystgns(Farlht) hi Phone5-493078

hTd

SFL Sykmh p m m b g (hael) Ltd Phone03-775111

J w Software AG of Farkt Phone 03-340-2467

Korea PentaComputerKora Co Ltd Phone 2-272-475l

Mamp S o b AG ofMamp SA w905-687-7816

Namp zeamp~wpg S p t m Pmgmmhg INZ)Ltd Phone 04-720967

sv= SFLSystems SEA) Ptc Ltd Phone 2254608

f S O ~ F I R ERGJ Rogampng Business Success

• softwareagannual_report1988102641752fcsrctif
• softwareagannual_report1988102641752p1srctif
• softwareagannual_report1988102641752p2srctif
• softwareagannual_report1988102641752p3srctif
• softwareagannual_report1988102641752p4srctif
• softwareagannual_report1988102641752p5srctif
• softwareagannual_report1988102641752p6srctif
• softwareagannual_report1988102641752p7srctif
• softwareagannual_report1988102641752p8srctif
• softwareagannual_report1988102641752p9srctif
• softwareagannual_report1988102641752p10srctif
• softwareagannual_report1988102641752p11srctif
• softwareagannual_report1988102641752p12srctif
• softwareagannual_report1988102641752p13srctif
• softwareagannual_report1988102641752p14srctif
• softwareagannual_report1988102641752p15srctif
• softwareagannual_report1988102641752p16srctif
• softwareagannual_report1988102641752p17srctif
• softwareagannual_report1988102641752p18srctif
• softwareagannual_report1988102641752p19srctif
• softwareagannual_report1988102641752p20srctif
• softwareagannual_report1988102641752p21srctif
• softwareagannual_report1988102641752p22srctif
• softwareagannual_report1988102641752p23srctif
• softwareagannual_report1988102641752p24srctif
• softwareagannual_report1988102641752p25srctif
• softwareagannual_report1988102641752p26srctif
• softwareagannual_report1988102641752p27srctif
• softwareagannual_report1988102641752p28srctif
• softwareagannual_report1988102641752p29srctif
• softwareagannual_report1988102641752p30srctif
• softwareagannual_report1988102641752p31srctif
• softwareagannual_report1988102641752p32srctif
• softwareagannual_report1988102641752p33srctif
• softwareagannual_report1988102641752p34srctif
• softwareagannual_report1988102641752p35srctif
• softwareagannual_report1988102641752p36srctif
• softwareagannual_report1988102641752p37srctif
• softwareagannual_report1988102641752p38srctif
• softwareagannual_report1988102641752p39srctif
• softwareagannual_report1988102641752p40srctif
• softwareagannual_report1988102641752p41srctif
• softwareagannual_report1988102641752p42srctif
• softwareagannual_report1988102641752p43srctif
• softwareagannual_report1988102641752p44srctif
• softwareagannual_report1988102641752p45srctif
• softwareagannual_report1988102641752p46srctif
• softwareagannual_report1988102641752p47srctif
• softwareagannual_report1988102641752p48srctif
• softwareagannual_report1988102641752p49srctif
• softwareagannual_report1988102641752bcsrctif

A Sales and Service Ofices

SoftcRareAG ofNorth A m a h U190Sunrist ValleyDamp ~~tOnVA22091 Phone (703) 860-5050 Telex275301 Paut (703) 391-6975 ToU-free1-800-843-9534

BoJtrm 100Grandvim Road Bmhme MA 02184 Pbont (617) 848-5057

a CiticorpPlaza 8420W B ~ T IMawr Avenue C ~ I L W 1 P h w c (312)693-0430

ckampd Four Commerce ParkSquaie 23m hplepard ampachWOOd OH44m Phone (216) 292-8 182

Dnracr 300Union B o u l d Suite 610 lahad CO 80228 h e (303) 987-3972

WI 39111 b Mile Road bonkMI48152 Phone(313) 591-7262

Uwampm 515 Wit Greens Road Houston T X 77067 Phone (7l3) 872-0003

JhmCifJ 8Ml Indian CieekPkwy Suite 260 B1dg 6 0CredandFark KS66212 Phone (913) 451-1651

bhamp 18300Von Karman Avenue MeCA 927l5 Phone (7l4) 553-0880

M M 1650W 882ndStreet BloomingtonMN 55431 Phone (612) 8884404

N - J m 4M) Kclby Smet hrtLCENJ07024 Phone (201) 461-6611

-TberandmlrltBuilding 1Station Square Phburgh PA15219 P b n c (4l2)471-4667

h m1PI s m Edifcio Madico Smta Crua Suite 2U73 CszfIe Santa C~IZ byamon hem R b 00619 Phone (809)740-3865

-INTERNATIONAL SALES

TdcinhmaticaS k Phone 01-313-1747

h e S PL (Australia) Pty ~imitd Phone02-498-8555

3 r d CONSIST Phone011-283-51U

HmW SPLsystgns(Farlht) hi Phone5-493078

hTd

SFL Sykmh p m m b g (hael) Ltd Phone03-775111

J w Software AG of Farkt Phone 03-340-2467

Korea PentaComputerKora Co Ltd Phone 2-272-475l

Mamp S o b AG ofMamp SA w905-687-7816

Namp zeamp~wpg S p t m Pmgmmhg INZ)Ltd Phone 04-720967

sv= SFLSystems SEA) Ptc Ltd Phone 2254608

f S O ~ F I R ERGJ Rogampng Business Success

• softwareagannual_report1988102641752fcsrctif
• softwareagannual_report1988102641752p1srctif
• softwareagannual_report1988102641752p2srctif
• softwareagannual_report1988102641752p3srctif
• softwareagannual_report1988102641752p4srctif
• softwareagannual_report1988102641752p5srctif
• softwareagannual_report1988102641752p6srctif
• softwareagannual_report1988102641752p7srctif
• softwareagannual_report1988102641752p8srctif
• softwareagannual_report1988102641752p9srctif
• softwareagannual_report1988102641752p10srctif
• softwareagannual_report1988102641752p11srctif
• softwareagannual_report1988102641752p12srctif
• softwareagannual_report1988102641752p13srctif
• softwareagannual_report1988102641752p14srctif
• softwareagannual_report1988102641752p15srctif
• softwareagannual_report1988102641752p16srctif
• softwareagannual_report1988102641752p17srctif
• softwareagannual_report1988102641752p18srctif
• softwareagannual_report1988102641752p19srctif
• softwareagannual_report1988102641752p20srctif
• softwareagannual_report1988102641752p21srctif
• softwareagannual_report1988102641752p22srctif
• softwareagannual_report1988102641752p23srctif
• softwareagannual_report1988102641752p24srctif
• softwareagannual_report1988102641752p25srctif
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-INTERNATIONAL SALES

TdcinhmaticaS k Phone 01-313-1747

h e S PL (Australia) Pty ~imitd Phone02-498-8555

3 r d CONSIST Phone011-283-51U

HmW SPLsystgns(Farlht) hi Phone5-493078

hTd

SFL Sykmh p m m b g (hael) Ltd Phone03-775111

J w Software AG of Farkt Phone 03-340-2467

Korea PentaComputerKora Co Ltd Phone 2-272-475l

Mamp S o b AG ofMamp SA w905-687-7816

Namp zeamp~wpg S p t m Pmgmmhg INZ)Ltd Phone 04-720967

sv= SFLSystems SEA) Ptc Ltd Phone 2254608

f S O ~ F I R ERGJ Rogampng Business Success

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