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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 We stepped up the dynamic expansion of BPE by investing some €40 million in 2012 in this high- growth segment. Our massive investment program promotes both sales as well as research and development. And it has already produced results. At the same time, we are implementing nu- merous strategic measures, including the reorganization of our IDSC business line, which will now focus on process consulting for SAP application environments in key German-speaking markets. Despite expenses resulting from these forward-looking measures, we were still able to steadily increase our EBIT margin during the year. It reached 27.2 percent in the fourth quarter. We will drive forward the high-growth BPE business in a dedicated manner. As you know, we have already assumed a leadership position in the Business Process Excellence market. Thanks to our employees and portfolio, Software AG is ideally equipped to clearly expand this market position. We have therefore taken the next step: BPE product revenue is planned to reach one billion euros and account for 80 percent of our total product revenue by 2018. To achieve this, we will pursue a growth strategy. We want to win market share from the competition through product, marketing and sales innovation. Our license revenue from big data products quadrupled in 2012, which illustrates the potential of BPE. There is currently a convergence of four megatrends in information technology: 1. MOBILE—increase of mobile communication and mobile use of the Internet 2. CLOUD—the shift of data and applications to the Internet 3. SOCIAL COLLABORATION—increased use of social networks 4. BIG DATA—processing and analysis of growing, vast volumes of data This unparalleled constellation is propelling the digitization of society and industry. To success- fully compete globally, companies in every industry must become Digital Enterprises. Enabling this is what Software AG is all about. Thanks to our early entrance into the up-and-coming Busi- ness Process Excellence market space, we are in the unique position to be able to offer an entire range—solutions for automated, flexible business processes, forward-looking cloud-to-cloud integration software, and the in-memory-technology of our U.S.-based subsidiary Terracotta. 10

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