1. Significant events during the reporting period

2/2 previous

New customers acquired

We won additional new projects in the third quarter, for instance with energy company Watt Deutschland GmbH. Watt is a very interesting customer in the energy sector with a business model similar to that of a telecommunications service provider. The company does not have its own network; instead, it uses processes to offer its customers improved service. This new type of IT infrastructure allows Watt Deutschland to alter processes as needed, implement new regulations as they take effect, offer more effective support to customers, and respond proactively when putting new products on the market. Process innovation is the key factor here. Process-based business models require flexible IT systems – i.e. SOA and BPM – and an independent provider. With our support, Watt Deutschland GmbH plans to completely revamp all of its business processes. Software AG’s webMethods product portfolio will be used to optimize and automate all business processes from A to Z. According to company estimates, the planned procedures, which will build on a fully new IT infrastructure, will bring an increase in efficiency of some 30 percent.

We also posted successes with our ETS customers in the third quarter. In Brazil, for instance, we demonstrated once again that our entry into this market is not merely about transferring the Software AG business volumes of previous distributors to our books. Rather, our aim is to take advantage of previously untapped potential.

This is possible because we focus our full attention on helping our customers to benefit from the Software AG portfolio; we also take advantage of our expertise and our products to provide better customer support, and we modernize infrastructures to assist our customers in generating maximum value from their existing equipment. The benefits to our customers of Software AG’s on-site presence in all relevant markets include investment protection, contributions to innovation, and a more flexible IT.

Our team in Brazil is extremely successful, having won more than 30 customers and over 40 new contracts within a very short period of time. This is yet another example of Software AG’s international competency and, most definitely, an additional contribution to the stability of our business model.

In addition, on September 2, 2008 we announced the biggest order in the history of Software AG from a customer in Brazil.

Market presence remains at a high level

We met with our customers at major events during the third quarter. On September 2, for instance, Software AG’s first German Business Innovation Forum opened its doors to the public in Darmstadt, where solutions and projects in the field of business innovation were presented to more than 400 participants. A number of our customers were involved in the program and described their practical experience with SOA and BPM. These included companies such as T-Systems, the European Central Bank, Austrian financial services provider UNIQA, logistics firm DHL, and Bundesrepublik Deutschland Finanzagentur GmbH (German Finance Agency).

17 of Software AG’s partner companies, including Atos Origin, held presentations and manned exhibition stands. One of the highlights of the German Business Innovation Forum was the podium discussion entitled “Using SOA to Implement an e-Government Strategy” with Federal Minister of Justice Brigitte Zypries, MdB, who is regarded as an expert in IT issues related to government agencies.

The SOA Governance Summit, held on September 23, 2008 in Stockholm, was also a resounding success: Software AG, along with customers such as Tele2, SAS, and HSBC, presented SOA governance technologies, projects, and solutions to nearly 300 participants. The event was topped off by market presentations from leading companies and analyst firms.