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Software AG GB 2012, englisch

06 HIGHLIGHTS 08 LETTER FROM THE MANAGEMENT BOARD 12 THE COMPANY 38 SOFTWARE AG SHARE 46 CORPORATE GOVERNANCE 58 REPORT OF THE SUPERVISORY BOARD 68 GROUP MANAGEMENT REPORT 155 CONSOLIDATED FINANCIAL STATEMENTS 245 FURTHER INFORMATION 143 National debt crisis The debt crisis in individual eurozone countries that has been escalating since 2010 has had only a limited impact on Software AG’s primary business. Software AG earned only 3.7 percent (2011: 4.6 percent) of its profitable product rev- enue in countries hit particularly hard by the debt crisis (Portugal, Italy, Ireland, Greece and Spain) in fiscal year 2012. Corporate strategy risks Product risks As a high-tech industry, the software sector in general is particularly susceptible to being negatively affected by the innovation risk of new competitor products. Ongoing R&D investments and acquisitions are therefore necessary to stay on top of the technological state of the art. Trends such as cloud, collaboration, big data and mobile require constant enhancements as well as acquired technology add ons and a new go-to market model. Close collaboration between sales, product marketing, management, and research and development (R&D) makes it possible for the development of new products to be market-driven and thus market-rele- vant. One of the greatest challenges of our industry is to optimally allocate R&D resources. We reduce this risk by implementing our functional triangle (sales-marketing-R&D) and by close contact with customers in all industries and countries. Moreover, we maintain close contact with technol- ogy analysts so as to be continuously informed of new mar- ket and product developments. With newer development trends, Software AG’s products are also augmented by acqui- sitions. For this and other reasons, the acquisition of my- Channels (PCB Systems Limited, Derby, U.K.) among others was carried out in the year under review. This acquisition complements the existing integration technology with its extremely fast (low latency) universal messaging middle- ware platform. It is an important component to Software AG technology because it strengthens and expands its in-mem- ory management of big data. As technological leaders—a fact confirmed by independent analysts—in the BPE product areas in particular we are often operating in technologically uncharted waters. This carries the risk of problems arising from the implementation of products that are not completely technologically mature, which can then damage customer relationships. We manage this risk with a digital product innovation process entitled Entire Readiness of Software AG for new technology/release, which was introduced in 2009. It prepares the whole Software AG Group optimally for launching new products. Furthermore, the successful project launches are monitored through key performance indicators based on region and country. The Company’s Research and Development division uses a minimal amount of open-source code for product develop- ment. In doing so, the in-house-developed source code must function absolutely separately from the open-source code components. In order to guarantee this, Software AG imple- mented R&D internal approval processes in 1998. Further- more, we introduced measures to conduct a controlling analysis for using open-source elements by reviewing the program code’s software technology. There is a risk that these processes could fail in isolated cases and the Company would not be able to impose any licensing fees for products contaminated with open-source code rights. THE SOFTWARE AG GROUP 69 ECONOMIC CONDITIONS 78 BUSINESS TREND AND ECONOMIC SITUATION 80 FINANCIAL PERFORMANCE 82 FINANCIAL POSITION 89 FINANCIAL STATEMENTS OF SOFTWARE AG 92 (PARENT COMPANY) ADDITIONAL EARNINGS-RELATED FACTORS 95 TAKEOVER-RELATED DISCLOSURES 125 REMUNERATION REPORT 127 RISK REPORT 139 EVENTS AFTER THE BALANCE SHEET DATE 149 FORECAST 151