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©2014 Software AG. All rights reserved. 1 |

May 27 2014

Software AG

Investor Presentation


Safe-Harbor-Statement

This presentation contains forward-looking statements based on beliefs

of Software AG management. Such statements reflect current views of

Software AG with respect to future events and results and are subject to risks

and uncertainties. Actual results may vary materially from those projected

here, due to factors including changes in general economic and business

conditions, changes in currency exchange, the introduction of competing

products, lack of market acceptance of new products, services or technologies

and changes in business strategy. Software AG does not intend or assume any

obligation to update these forward-looking statements.


Software AG - At a Glance

High performance data management

Process planning, monitoring and

analysis

Middleware to integrate data, applications and

digital workflows

Intelligent Business Operations and Big Data

~ €1bn revenue (FY 2013)

~ 27% operating EBIT margin (FY 2013)

~ 16% free cash flow margin (FY 2013)

> 5,000 Employees worldwide

~ 1,000 R&D

> € 2bn market cap

> 60% free float

~ 29% Software AG Foundation

70 Countries

Global customer base: 80% of Fortune 10,000

Technology leader in system integration,

process automation and data management


Americas EMEA

Germany Asia Pacific

*Based on group revenue FY 2013

Revenue Split – Well Balanced

Product Revenue by Region* Product Revenue by Industry*

Public Sector Financial Sector IT

Services Associations Manufacturing

Telcos Logistics Retail

Energy Other

22%

19%

38%

36%

17%

8%


Enterprise Transaction Systems ETS

• Manage cash cow

• Adjust cost to

maintain segment

margin > 60%

Business Process Excellence

• Product revenue: growth 10-20% p.a.

(incl. a 50% growth from Big Data/IBO)

• >50% contribution to group result, mid-term

• Transform technology leadership into

market leadership

• Increase to >80% of product revenue (€1bn)

Business Lines & Development

BPE

IT PORTFOLIO

MANAGEMENT

REAL-TIME INTELLIGENCE AND BIG DATA

PROCESS AUTOMATION

AND INTEGRATION

COLLABORATIVE

PROCESS ANALYSIS

DATABASE MANAGEMENT

SYSTEMS

Consulting

APPLICATION DEVELOPMENT &

MODERNIZATION

ENABLER FOR OWN

PRODUCT SALES (BPE/ETS)

• Successful Turnaround

• Focus on Integration

and Business Solutions

• Margin expansion

44% 28%

28%

S H A R E O F R E V E N U E *

*based on revenue 2013: € 973m

SAP CONSULTING

(DISPOSAL IN Q2 2014)


0

50

100

150

200

250

300

350

400

2006 2007 2008 2009 2010 2011 2012 2013

Maintenance – High Level of Recurring Revenue and Profits

186 213

267

305

353 362 378

> 90% of Maintenance Revenue is recurring

€m

BPE

ETS

369*

*currency impact: € 16m


Free Cash Flow and Dividend per Share

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2006 2007 2008 2009 2010 2011 2012 2013

FCF per Share Div per Share

EUR


Transforming Software AG Prime Operational Targets 2014

Product

Revenue

60 %

40 %

ETS Enterprise

Transaction

Systems

Preserve

customer

base

BPE Business

Process

Excellence Dynamic

Growth

Minimize decline

Protect maintenance base

Utilize customer access for driving

strategic projects (ETS and BPE)

Increase sales efficiency

• 2013 – hires

• Utilize full market potential

Close strategic - 7/8-digit deals

Broaden customer base


0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010 2011 2012 2013

License Revenue – Dynamic Growth in BPE Business

166

241

272 270

327

295 319

BPE License with sustainable growth

€m

BPE

ETS /Other

330*

*currency impact: € 17m


0%

5%

10%

15%

20%

2011 2012 2013 2014e*

BPE License growth 2010-2014e compared to market peers

Peer group average

Growth

yoy acc

* Based on analyst estimates (May 2014)


Turning Technology Leadership into Market Leadership:

Build Multi Channel Ecosystem and Integrated Portfolio Suite

Aris/web-Methods

webMethods

Apama

JackBe

LongJump

Alfabet, ARIS

Business Process Platform

Integration Platform

TerracottaMychannels

Cloud Suite & on-premise

Big Data/IBO Platform

Growth Multiple

Sales

Channels

Single

Sales

Channel

Growth acceleration

+€50 m S +M Investment

SI‘s

OEM‘s/ISV‘s

Products

Suite


€1 Billion

>80%

New Products (BPE+)

• Organic Growth

• Integration Technology

• Business Process Mgt.

• IBO / Big Data

• Cloud / Partner / OEM

• M&A/Innovative Technologies

2013 2018

40% Enterprise Transaction

Systems (ETS)

20%

80%

2006

60%

<20%

Revenue Targets 2013 - 2018 (BPE + ETS)

Product Revenue


Revenue and Margin Drivers 2014+

2014 2015 2016 2017 2018

Impact new sales staff

Growing Ø deal size

Platforms / use case packaging

Recurring projects

Cloud based offerings

Partner sales / OEM

Revenue mix

Economies of scale

(R&D, G&A)

Metrics

Channel

sales

Sales

productivity


Outlook FY 2014

Product Revenue BPE

Product Revenue ETS 273.8

422.9

260.7

FY 2013 (in €m)

+2% to +7%

- 9% to -16%*

+12% to +18%*

Outlook FY 2014 (as of Jan. 28, 2014)

Operating Result (Non-IFRS)**

* Revenue growth or decline at constant currency

** EBITA before adjustments for non-operating items (see non-IFRS earnings results)

-15%*

11%*

-7%

Q1 2014 (∆ in %)


Key Investment Indicators

1. Footprint: Established global software player with blue chip customer base

2. USP: Unique technology leadership in fast growing IT segments

3. Financials: Strong balance sheet and cash generation (dividend)

4. Assets: Experienced management team and loyal expert staff

5. Timing: Post ramp-up investments for mid-term growth / leverage ahead

©2014 Software AG. All rights reserved.

Appendix

- Portfolio

- Customer Solutions

- Market Position & Competition


APPS

SEARCH

ERP

CRM, HR

ADABAS ETC.

ESB / SOA-GOV.

DATA MGMT.

COLLABORATION

EVENT MGMT.

RULES

Process Automation

IntegrationMiddleware

Application Silos HW Infrastructure

Analytics Visualization

REAL-TIME DATA

In-Memory Big Data/IBO

Enabler of the Digital Enterprise

IT 1.0

IT 3.0

Internet 4.0


B I G D ATA a n d I N - M E M O RY D ATA M A N A G E M E N T

Software AG Agility Platform

I N T E L L I G E N T B U S I N E S S O P E R AT I O N S

Event Processing Process Mining Historic KPI's Activity Monitoring Data Analytics

Business Process Analysis

PORTFOLIO MANAGEMENT

IT Portfolio Management Enterprise Architecture

COLLABORATIVE PROCESS ANALYSIS

Proactive Alerts Dashboards Real-Time Insight Mobile Anywhere

P R O C E S S A U TO M AT I O N / I N T E G R AT I O N

Application Integration B2B Integration SOA Governance Composite Applications

ERP Custom CRM

Process Automation

Governance, Risk & Compliance


Acquisitions Support Technology Leadership

Big Data and In-Memory Data Management

Intelligent Business Operations

Event Processing

Real-Time Dashboards

Process Automation / Integration

Collaborative Process Analysis

Portfolio Management

Event Processing

IT Portfolio Management

Visualization

Cloud Application Development

Messaging Mobile Suite

In Memory Computing


Software AG Cloud Offering

Pr o c e s s L i v e

Business Modeling

Process Publishing

Po r t f o l i o L i v e

IT Portfolio Management

A g i l e A p p s L i v e

Application Development Case Management

I n t e g r a t i o n L i v e

Cloud-to-Cloud Cloud-to-on premise

Unified PaaS

on premise SaaS

Private cloud


MOBILE CLOUD

SOCIAL BIG DATA

Agile Inte

gra

tion &

Auto

mati

on

IBO/Smart Data Portfolio

Busi

ness

Pro

cess

Managem

ent

Agile A

pps

In-Memory Data Management & Connectivity

Real-time Decisions

Proactive Alerts Dashboards & Visualization

Intelligent Actions

Streaming Analytics

Streaming Analytics

Historical Pattern Discovery

Real-time Complex Pattern Detection

Business

Processes Mobile

events Financial &

News Events

Social

Media

$ £ € ¥

Sensor &

machines

Hadoop Business

Intelligence

Terracotta Big Memory & Universal Messaging

O

pti

miz

e

P

PM

Apama

Presto

©2014 Software AG. All rights reserved. 22 | Seize opportunities & avoid crises amidst explosive complexity

The need: supporting a new class of streaming,

decision-centric application requirements

Internet

Mobility

The Internet of Things

Industrial Internet

Location Sensing

Wearable Devices

Streaming

Social Media

Fast,

Big Data

Time window

to analyze &

act

Complexity of

Extra-Enterprise

information Smart

decisions

Supply Chain

Logistics

CRM/CXM

Risk Mgmt

Fraud

Trading


Offline Business

Intelligence

Strategic and

Tactical

decisions

Periodic Reports

Ad Hoc BI Analytics

Traditional BI

Statistical Analytics

Data Mining

Other off-line Analytics

Predictive Analytics

Hadoop

Continuous

Streaming

Analytics

Run-the-business Operational Systems

Capture Big Data

“in motion”

Intelligent Business

Operations Platform

Store data

“at rest”

Data Mart/ Warehouse

Take Action

(Operational

Decisions)

Need to Complement Batch-based Analytics with

Continuous & Actionable Real-time Analytics


Large Enterprise / Public Sector Customers in 70 Countries

Finance Public Sector Telecom Chemicals/Pharma Energy/Utilities

Manufacturing Logistics/ Transport

Healthcare/

Consumer Goods


The Impact of Differentiating Solutions by Software AG

Refreshments

Supply chain transformation in days

10s of millions increase in profit

higher response

rate to marketing

campaigns

reduction in

transfer time

for assets 98%

10x

several million

Average annual benefit of

now emergency-prepared

Employees and contractors


O P P O R T U N I T Y :

R E S U L T S :

Transforming Financial Services

• Free up IT budget to directly support

‐ Aggressive international growth in the

private banking sector

‐ Higher cross-selling across divisions

• Avoided development projects: Credit

Suisse saves $6 million annually

• Eliminated software costs: the

organization is saving $5 million annually

Through IT Portfolio Management and Enterprise Architecture Management

Payback in

6 MONTHS

SEVERAL MILLION DOLLARS SAVED

R E S U LT:



R E S U L T S :

Transforming Food and Beverage

• Automate maintenance & repair process

for 1.7M coolers

– Streamline asset management

– Real-time visibility of cooler location

and status

• Reduce time for asset transfer by 98%

(from up to 8 hours to below 10 minutes)

• Uncover trends and recurring issues

• Avoid lost equipment

Through the Software AG Suite

R E S U L T:

98%

from up to 8 hours to below 10 minutes

REDUCTION IN TRANSFER TIME FOR ASSETS

Refreshments



R E S U L T S :

Transforming Financial Services

• Fraud detection

• Reduce fraud loss

• Improve speed and accuracy of fraud

detection system

• Increase rules in fraud detection

algorithm from 50 to over 1,000

• Drive profit up by tens of millions of

Euros

• Meet 650 millisecond end-to-end SLA 99%

of the time

• Achieve better accuracy

Through In-Memory Data Management

R E S U L T:

Fraud detection I N M I L L I S E C O N D S

DRIVES PROFIT UP

of millions €

BY 10s



R E S U L T S :

Transforming Manufacturing

• Consumer-centric order-to-ship process • Provide end-to-end supply chain visibility

to retail through defined process monitoring points, KPIs, alerts and pre-configured dashboards

• Integrate Electrolux’s heterogeneous systems and partners

• New business model supported in days,

enabling Electrolux to win a new major

retail customer

• Real-time insight into processes, orders

and inventory

• Early indicator of potential problems

• Enables “management by exception”

• Reduced cycle times — products

delivered faster, fewer reschedules

Through Process Automation and Integration

R E S U L T:

Consumer Retail Distribution Manufacturer

Bulk order

New Retail

Customer Consumer order

Consumer order delivery

Full Supply Chain Visibility

Installation

Supply

Chain



R E S U L T S :

Transforming Telecommunications

• Customer retention through real-time

targeted marketing campaigns

• Increase customer loyalty by proactively

offering the right service at the right

time

• 10 times higher response rate to

marketing campaigns

• Marketing campaign cycle time cut from

days to minutes

• Increased customer satisfaction and

retention rates

• Leapfrogging competition through digital

innovation

Through Intelligent Business Operations

10x INCREASE IN OFFER UPTAKE

$15 million

in revenue

in year one

INCREASE

R E S U L T:


IBO Solution Blueprints & Customers Real-

tim

e

Pers

onalizati

on

Customer Experience

Management

End-to-End Process

Assurance

Business Acceleration

Real time Fraud

Prevention

Risk & Compliance Monitoring

eTrading

Real-

tim

e

Pro

moti

ons

Om

ni-

Channel

Fulf

illm

ent

Reta

il B

ank

Pro

cess

Monit

ori

ng

SAP P

rocess

M

onit

ori

ng

Fast

er

eCom

merc

e

Main

fram

e

Off

load

ATM

Fra

ud

Dete

cti

on

Anti

-money

Launderi

ng

Mark

et

Surv

eilla

nce

Rogue T

rader

Monit

ori

ng

Pre

-tra

de

Ris

k

FX e

Com

merc

e

Alg

ori

thm

ic

Tra

din

g

IBO Platform

IBO Solution Blueprints

Common Use Case Patterns and Solution Accelerators

Data

base

O

fflo

ad

Rati

ng P

rocess

M

onit

ori

ng

Bond

Pri

cin

g

M2M Operational Intelligence

Sm

art

Gri

d

Analy

tics

Energ

y T

heft

D

ete

cti

on

M2M

Pro

cess

O

pti

miz

ati

on

https://www.santanderbank.com/

http://www.sh-elektrodraht.de/index.php?option=content&task=view&id=52


Example: Smart Shipping Logistics

Ship Movements (Sat)

Ship reporting

Port Messages

Detect a ship passing a certain area,

determine the relevance Start appropriate

process

Real-time and historic/enriched

information on ships

Real-time access

to ships’

inventories and

planning

schedules

Real-time tracking

of all entities,

highlighting

efficiencies and

predicted problems

Convey data reliably

from the remote ships

& dock side machines


Trades

Quotes

News

Trader Behavior

Social Media

Example: Avoid Regulatory Fines & Resolve Suspicious

Trading Activity Proactively

Unusual trading activity just

before news release suggests

insider trading

Notify relevant

Compliance

Officer

Compliance staff

visualize trade

abuse alerts; drill in

to investigate


Software AG Suite is a Top-Ranked Technology Leader

Application Integration Suites • • • • •

Application Services Governance • •

Business Process Analysis Tools • • •

Business Process Management Suites • • •

Enterprise Architecture Tools • •

Governance, Risk and Compliance • •

Integrated IT Portfolio Analysis Apps •

Complex Event Processing Platforms • • •

Comprehensive Integration Solutions • • • • •

EA Management Suites •

Elastic Caching Platforms • • •

ESB • • • •

Integrated SOA Governance • •

SOA Service Life-Cycle Management •


Enterprise Digitization – Driving growth of AIM Market

Modern

ESB

SOA, B2B

& other

Modern

BPMS

Addressable AIM

Market Segments= $7.1bn

Addressable AIM

Market Segments = $9.2bn

1.1bn

1.6bn

1.2bn

2.1bn

SOA, B2B

& other

2014 2017 Tradit.

ESB Tradit.

BPMS 1.5bn

1.7bn 2.1bn

1.3bn

3.0bn

0.6bn

Modern

ESB

Modern

BPMS

Tradit.

BPMS

Tradit.

ESB

2.9bn

5.1bn

21% CAGR

9% CAGR


IBM 29%

Pegasystems 10%

Oracle 8%

Software AG 7%

OpenText 4%

Appian 3%

Tibco 3%

Others 36% IBM

29%

Oracle 23%

Microsoft 13%

Tibco 9%

Others 15%

Business Process Management Suite

(BPMS)

Enterprise Service Bus Suite

(ESB)

Source: Source: Gartner: Market Share, All Software Markets, Worldwide, 2013, Colleen Graham et al, 28 March 2014

Market Share in Main Markets: BPSM (Process Management)

and ESB (Integration)

Software AG

11%


Appendix

- Financials


Financial Data - Key Figures

in €m, IFRS 2013 2012 2011 2010 2009 2008 2007

Total Revenue 972.7 1,047.3 1,098.3 1,119.5 847.4 720.6 621.3

- License 330.1 318.9 295.2 327.4 269.9 272.0 241.3

- Maintenance 375.6 393.3 378.7 369.4 310.6 267.1 212.9

- Consulting

& Other 267.0 335.1 424.4 422.7 266.9 181.5 167.1

BL BPE 422.9 385.5 339.6 321.5 247.2 210.7 149.9

BL ETS 274.5 310.5 313.9 355.4 328.5 332.1 310.2

BL Consulting 275.4 351.3 444.8 441.4 271.3 177.8 161.1

- BPE/ETS 199.7 n.a. n.a. n.a. n.a. 177.8 161.1

- IDS/SAP 75.7 n.a. n.a. n.a. n.a. n.a. n.a.

EBIT 205.5 248.3 269.2 268.6 218.2 180.5 136.8

Net income 134.0 164.7 177.2 175.6 140.8 115.9 88.4

Dividend (€m, total) 36.3* 38.2 39.9 37.0 32.6 31.5 28.5

Free cashflow 159.1 170.7 187.7 217.8 188.4 133.4 82.2

Net debt (-)

/cash(+) -106.9** +49.7 -60.9 -167.2 -271.8 -70.3 -133.0

Shareholders‘

equity 965.6 1,060.1 951.5 769.3 647.2 549.1 462.5

Employees (FTE) 5,238 5,419 5,535 5,644 6,013 3,526 3,479

* Dividend payment based on 78,859,844 dividend entitled shares (0,46€/share)

** including € 56.5 Mio. Securities


1. Net operating profit after tax = op. PbT ./. tax rate x (op. PbT + goodwill)

2. Return on equity: Operating EBIT / Equity

3. Return on cap. employed: Operating EBIT / (Fixed assets + Working capital)

4. Current assets ./. Cash and Cash Equivalents ./. Current liabilities

FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007

EBITDA margin 26.6% 28.6% 28.7% 28.1% 30.3% 28.6% 25.7%

Operating Margin (Non-IFRS) 26.8% 28.5% n.a. n.a. n.a. n.a. n.a.

Amortization/ Depreciation

5.5% 4.9% 4.2% 4.1% 4.6% 3.5% 2.4%

Operating EBIT margin 21.1% 23.7% 24.5% 24.0% 25.8% 25.1% 23.3%

NOPAT1 margin 13.8% 15.7% 16.1% 15.7% 16.6% 16.1% 15.1%

ROE2 21.3% 23.4% 28.3% 34.9% 33.7% 32.9% 31.8%

ROCE3 14.6% 18.2% 20.5% 27.4% 20.9% 26.2% 22.5%

Net Working Capital in €m4 -€213.5m -€41.6 -€23.8 -€194.4 -€211.3 -€74.1 -€55.0

Working Capital5 24.3% 26.2% 17.5% -8.2% 0.8% 3.2% 4.2%

Free Cash Flow margin6 16.4% 16.3% 17.1% 19.5% 22.2% 18.5% 13.2%

Corporate tax rate 32.0% 31.2% 31.7% 31.0% 32.7% 34.0% 35.4%

WACC7 5.12% 5.1% 5.7% 6.8% 5.5% 6.8% 8.4%

Equity ratio 48.4% 59.8% 56.6% 48.1% 39.1% 51.8% 47.2%

DSO (Days Sales Outstanding) 107 105 93 100 109 120 119

Capex €m €12.7 €13.3 €10.9 €9.7 €12.1 €6.6 €11.8

Capital Employed8 €m €1,346.3 €1,313.0 €1,262.0 €929.6 €1,002.2 €669.9 €655.2

5. Current assets ./. Current liabilities / Total revenue

6. (Operating Cash flow ./. Capex) / Revenue

7. Pro forma, not applied for corporate management

8. Fixed assets + Working capital

Key Financial Ratios (IFRS; in % of revenue)


Euro 36%

US Dollar 26%

Other 10%

GBP 6%

AUD 5%

ZAR 2%

ILS 4%

CAD 3%

BRL 8%

(in €m; yoy)

Q1

2014

Q1

in %

FY

2013

FY

in %

Licenses -3.7 -6.0% -16.9 -5%

Maintenance -4.9 -5.2% -16.4 -4%

Consulting &

Other

-1.1 -1.8% -4.5 -2%

Total -9.7 -4.5% -37.8 -4%

Currency impact on revenue

Currency impact on revenue

Q1 2014 / FY 2013

Currency split FY 2013

Split EUR/USD:

FY 2013: EUR 36%, USD 26%

Q1 2014: EUR 43%, USD 21%


(in €m) Q1

2014

Q1

2013

Δ% Δ% acc

FY

2013

FY

2012

Δ% Δ% acc

Product 147.4 157.1 -6% -1% 705.7 712.2 -1% 4%

Licenses 57.1 63.6 -10% -4% 330.1 318.9 4% 9%

Maintenance 90.3 93.5 -3% -2% 375.6 393.3 -5% -

Consulting & services 61.3 67.5 -9% -8% 266.0 333.3 -20% -19%

Other 0.2 0.3 -33% -33% 1.0 1.8 - -

Total 208.9 224.9 -7% -3% 972.7 1,047.3 -7% -4%

Excluding IDS

(proforma)

195.1 203.9 -4% 0% 897.3 n.a. n.a. n.a.

Group Revenue Q1 2014 / FY 2013


Segment report Q1 2014 / FY 2013

Business Process Excellence (BPE)

(in €m) Q1

2014

Q1

2013

Δ% Δ% acc

FY

2013

FY

2012

Δ% Δ% acc

Licenses 43.7 41.9 4% 10% 220.1 194.7 13% 18%

Maintenance 51.6 48.4 7% 11% 202.8 190.0 7% 11%

Total revenue 95.3 90.3 6% 11% 422.9 384.7 10% 15%

Cost of sales -5.7 -5.8 -2% 2% -22.4 -18.8 19% 23%

Gross profit 89.6 84.5 6% 11% 400.5 365.9 9% 14%

Sales & marketing -49.1 -46.0 7% 11% -201.5 -137.3 47% 53%

R & D -20.9 -19.7 6% 7% -82.5 -74.9 10% 12%

Segment result 19.6 18.8 4% 16% 116.5 153.7 -24% -19%



Enterprise Transaction Systems (ETS)

(in €m) Q1

2014

Q1

2013

Δ% Δ% acc

FY

2013

FY

2012

Δ% Δ% acc

Licenses 13.3 21.1 -37% -30% 107.4 121.3 -11% -6%

Maintenance 37.6 43.2 -13% -7% 166.4 188.3 -12% -7%

Product revenue 50.9 64.3 -21% -15% 273.8 309.6 -12% -7%

Other 0.2 0.2 - - 0.7 0.9 - -

Total revenue 51.1 64.5 -21% -15% 274.5 310.5 -12% -7%

Cost of sales -3.3 -3.8 -13% -6% -14.1 -15.6 -10% -6%

Gross profit 47.8 60.7 -21% -15% 260.4 294.9 -12% -7%

Sales & marketing -9.1 -13.8 -34% -31% -50.4 -61.7 -18% -15%

R&D -6.2 -6.5 -5% -4% -25.3 -26.1 -3% -3%

Segment result 32.5 40.4 -20% -11% 184.7 207.1 -11% -5%


(in €m) Q1

2014

Q1

2013

Δ% Δ% acc

FY

2013

FY

2012

Δ% Δ% acc

Licenses 0.1 0.6 -83% -86% 2.6 2.9 -10% -9%

Maintenance 1.1 1.9 -42% -41% 6.5 15.0 -57% 57%

Product revenue 1.2 1.8 -52% -52% 9.1 17.9 -49% -49%

Services & other 61.3 67.5 -9% -8% 266.3 334.2 -20% -19%

thereof BPE/ETS 48.7 49.0 - 2% 199.7 n.a. n.a. n.a.

Total revenue 62.5 70.1 -11% -9% 275.4 352.1 -22% -20%

Cost of sales -51.9 -60.2 -14% -12% -232.6 -320.0 -27% -26%

Gross profit 10.6 9.9 7% 9% 42.8 32.1 33% 37%

Sales & marketing -7.3 -9.6 -24% -22% -33.5 -33.8 -1% 3%

Segment result 3.3 0.3 - - 9.3 -1.7 >100% >100%


Consulting


44

Results Q1 2014 / FY 2013

(in €m) Q1

2014

Q1

2013

Δ% FY

2013

FY

2012

Δ% Δ% acc

Total revenue 208.9 224.9 -7% 972.7 1,047.3 -7% -4%

Cost of sales -68.0 -75.8 -10% -294.6 -378.4 -22% -21%

Gross profit 140.9 149.1 -5% 678.1 668.9 1% 6%

Margin in % 67.4% 66.3% 69.7% 63.9%

R & D -27.2 -26.2 4% -107.9 -101.1 7% 8%

Sales & marketing -69.4 -72.8 -5% -300.1 -246.9 22% 26%

Administration -19.1 -17.8 7% -73.2 -75.8 -3% -2%

Other

income/expense 5.3 9.4 - 8.6 3.2 - -

EBIT (before all taxes) 30.4 41.6 -27% 205.5 248.3 -17% -10%


Operating Results (Non-IFRS) Q1 2014 / FY 2013

44

* Based on average outstanding shares: Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m // FY 2013: 83.7m / FY 2012: 86.8m

(in €m) Q1

2014

Q1

2013

FY

2013

FY

2012

EBIT (before all taxes) 30.5 41.6 205.5 248.3

Amortization on acquisition related

intangible assets 11.1 9.4 40.4 38.1

EBITA 41.5 51.0 245.9 286.4

Reduction acquisition related product

revenue by purchase price allocation 0.3 - 1.2 1.0

Other acquisition impacts -2.7 -3.0 1.7 0.6

Share based payment 1.5 -0.6 -0.7 7.9

Restructuring/severances 2.3 1.5 12.6 3.0

Operating Result (Non-IFRS) 43.0 48.9 257.6 298.9

in % of revenue (Non-IFRS) 20.6% 21.7% 26.8% 28.5%

NOPAT (Non-IFRS) 27.7 32.4 172.9 200.7

EPS (Non-IFRS)* 0.34 0.38 2.07 2.31


Earnings IFRS Q1 2014 / FY 2013

* Weighted average shares outstanding (basic) Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m / FY 2013: 83.7m / FY 2012: 86.8m

(in €m) Q1

2014

Q1

2013

Δ% FY

2013

FY

2012

Δ%

EBIT (before all taxes) 30.5 41.6 -27% 205.5 248.3 -17%

Financial result -2.9 -1.3 123% -8.4 -8.8 -5%

Profit before taxes 27.6 40.3 -32% 197.1 239.5 -18%

Other taxes -1.6 -1.8 -11% -7.1 -8.0 -11%

Income taxes -7.4 -11.3 -35% -56.0 -66.8 -16%

Tax rate in % 32.6% 32.5% 32.0% 31.2%

Net Income 18.6 27.2 -32% 134.0 164.7 -19%

EPS in €* 0.23 0.32 -28% 1.60 1.90 -16%


Cash flow Q1 2014 / FY 2013

* Cash flow from investing activities except acquisitions and except investments in debt instruments

** Based on average outstanding shares: Q1 2014: 86.9m / Q4 2013: 82.2m / Q4 2012: 86.8m / FY 2013: 83.7m / FY 2012: 86.8m

(in €m) Q1

2014

Q1

2013

Δ% FY

2013

FY

2012

Δ%

Operating cash flow 50.1 65.4 -23% 171.8 184.4 -7%

./. CapEx* -2.3 -2.7 -12.7 -13.7

Free cash flow 47.8 62.7 -24% 159.1 170.7 -7%

as % of revenue 22.9% 27.9% 16.4% 16.3%

Free cash flow per share** 0.60 0.73 -18% 1.90 1.97 -4%


105.9

March 31,

2014

March 31,

2014

1,935.9 1,935.9

480.7

281.9

94.4

1,078.9

612.9

268.2

138.2

916.6

Cash and cash

equivalents/

Securities

Trade receivables

Inventory,

other assets

Fixed assets

(goodwill

820.7/829.2)

Total

Financial liabilities

Other liabilities

Deferred income

Shareholders equity

(ratio 47.4%/48.4%)

Total

Assets Liabilities

Balance sheet

(in €m)

Dec. 31,

2013 Dec. 31,

2012

1,996.9

613.4

309.9

108.0

965.6

1,996.9

506.5

323.2

57.3

1,109.9 951.5

1,680.7

277.4

345.9

Dec. 31,

2013

1,069.2

216.5

317.9

77.1

1,680.7

Dec. 31,

2012


Amortization / depreciation impact 2014ff (preliminary)

* Estimated

Amortization IDS

(in €m)

Amortization other

Depreciation

Q1

2014

2.7

8.3

3.0

24.0

11.6

FY

2015ff*

7.8

FY

2014

10.6

29.0

11.6

FY

2013

10.6

29.8

12.9


Headcount by functional areas* and geography

* According to P+L structure

(in FTE) Mar.31,

2014

Dec.30,

2013

Δ% qoq

Mar. 31,

2013

Δ% yoy

Total 5,108 5,238 -2% 5 5,300 -4%

Consulting & services 2,283 2,347 -3% 2,456 -7%

R & D 995 998 - 901 10%

Sales & marketing 1,131 1,180 -4% 1,213 -7%

Administration 699 713 -2% 730 -4%

USA 752 778 -3% 729 3%

Germany 1,663 1,711 -3% 1,727 -4%

Rest of world 2,693 2,749 -2% 2,844 -5%


*Source: ThomsonOne, January 2014

Number of total shares: 86,943,945

Freefloat: ~ 62%

Indices: TecDAX, DAX 100, TechAllShare

Codes: SOW, SOW GR, SOWG.DE

ISIN: DE0003304002

ADR U.S. trading symbol: STWRY

Share Data

Major Institutional Investors

Shareholder Structure

Shareholder Structure

Institutional Investors by Region*

Software AG Foundation

Institutional Investors

Private & undisclosed

25% 29%

37%

30%

23%

14%

8%

12% Germany

US

UK

Scandinavia

France

Rest of World

7%

Own Shares**

9%

**as of February, 2014

Fidelity (FMR LLC) 3.5%

Deutsche Asset & Wealth 3.3%

Templeton 3.0%

Alken 2.9%

Deka 2.9%

BeNeLux 6%


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Germany

phone: +49 (0) 6151 / 92 1900

fax: +49 (0) 6151 / 9234 1900

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e-mail: [email protected]

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