Software AG plans to increase its dividend to €1.10 per share
Darmstadt, Germany, 3/13/2009
Software AG’s executive board and supervisory board will recommend a 2008 dividend payment of €1.10 (previous year: €1.00) per share at the Annual Shareholders’ Meeting on April 30, 2009. This will result in a pay-out ratio of approximately 27 percent of net profit for fiscal 2008. Currently 28,638,842 shares are entitled to a dividend payment.
As already reported, Software AG increased revenue by 16 percent and earnings by 31 percent in fiscal year 2008. The corresponding strong growth in cash flow allows the company to increase its dividend, strengthen its cash reserves and repay bank debts.
“In this economic environment, strengthening liquidity and shareholder’s equity are key”, explains CEO Karl-Heinz Streibich. "This keeps us financially strong and flexible, and we can actively pursue consolidation opportunities in the software market."
The company foresees growth during the current fiscal year, in spite of the global economic crisis, and plans to increase revenue by 4 to 8% (at constant currency rates). This organic growth could be further strengthened by acquisitions. “However, we set very high standards for targeted companies”, reassures CFO, Arnd Zinnhardt, “as potential target companies must fit from the strategic perspectives as well as financially.”
At the CeBIT trade show for information and communications technology last week, Software AG caused a stir in professional circles with the announcement of its new AlignSpace product initiative. This innovative software platform facilitates novel Internet based forums for IT-supported management of digital business processes. With AlignSpace, a company’s employees can implement new business processes more quickly and effectively. Thanks to an array of new products, Software AG is considered as leading process optimizer that can help its customers in facing growing pressures to economize. Public administration is also seeing an increased need for action in the integration of IT structures. The increased visitor rate at Software AG’s CeBIT booth is proof of the growing demand for innovative process optimization solutions, particularly in these times of economic crisis.
The results of the first quarter 2009 are scheduled to be published on April 23, 2009.
Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany
Software AG is the world’s largest independent provider of Business Infrastructure Software. Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. As a result, they rapidly build measurable business value and meet changing business demands. Based on our solutions, organizations are able to liberate and govern their data, systems, applications, processes and services – achieving new levels of business flexibility.
Our leading product portfolio includes solutions for high performance data management, developing and modernizing applications, enabling service-oriented architecture, and improving business processes. By combining our technology with industry expertise and best practices experience, our customers improve and differentiate their businesses – faster.
Software AG has almost 40 years of global IT experience and over 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €721 million in 2008 (IFRS, unaudited).
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