187 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 CONSOLIDATED INCOME STATEMENT 156 STATEMENT OF COMPREHENSIVE INCOME 157 CONSOLIDATED BALANCE SHEET 158 CONSOLIDATED STATEMENT OF CASH FLOWS 160 CONSOLIDATED STATEMENT OF CHANGES 162 IN EQUITY NOTES TO THE CONSOLIDATED FINANCIAL 164 STATEMENTS RESPONSIBILITY STATEMENT 243 AUDITORS‘ REPORT 245 A total of 108,600 (2011: 1,435,662) stock options were exercised in 2012. In order to fulfill stock options, 19,000 (2011: 756,000) treasury shares were used and an additional 89, 600 (2011: 679,662) shares were generated by way of a capital increase. The number of shares increased accordingly by 108,600 (2011: 1,435,662). The remaining 42,377 (2011: 61,377) treasury shares are not expected to see a dilution effect since they can be sold at market prices. Another 1,852,800 (2011: 1,961,400) stock options from the third stock option plan may be exercised. The dilutive effect on earnings per share was calculated using the treasury stock method. in €thousands 2012 2011 Net income for the year 164,677 177,209 less earnings attributable to non-controlling interests -167 -249 Net income for the year attributable to shareholders of Software AG 164,510 176,960 Weighted average number of shares in issue 86,784,793 86,195,814 Effect of dilutive share-based payment 205,411 1,053,237 Weighted average number of shares in issue (diluted) 86,990,204 87,249,051 Earnings per share in € (basic) 1.90 2.05 Earnings per share in € (diluted) 1.89 2.03 NOTES TO THE CONSOLIDATED BALANCE SHEET  Disposal group Software AG signed an agreement with itelligence AG, Bielefeld/Germany on January 8, 2013 to sell its SAP-related service activities in Canada and the United States. The conversion took place on January 16, 2013. The transaction covered all Software AG services related to SAP products that were coordinated in Toronto for Canada and in Reston, Virginia for the USA.