245 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 244 GLOSSARY ADABAS (Adapted DAtaBAse System) Invented by Software AG founder, Peter Schnell, ADABAS is the first high-performance transactional database that is so fast it can process more than 300,000 transactions per second. Since its market entry in 1971, ADABAS—together with Natural—has formed the backbone of many large companies’ and public institutions’ IT. ARIS (ARchitecture for Integrated Information Systems) Developed by IDS Scheer AG founder, August-Wilhelm Scheer, this is a scientific method for describing business processes. The ARIS software product family is based on it and enables process analysis, modeling, implementation and measurement. B2B “Business-to-business” describes electronic transactions between organizations. B2C (business-to-con- sumers), in contrast, refers to IT transactions between organizations and consumers. Big data Big data is the universal term for ever-expanding vast amounts of data as a result of the Internet. Organi- zations can leverage the effective processing and analysis of this data to achieve competitive advantages. Business intelligence (BI) A general term for computer-based analysis of business data. Business process analysis (BPA) With BPA processes are analyzed, documented and optimized. This provides more efficient business processes and increases the competitiveness of an organization leading to improved economic results. Business Process Excellence (BPE) Software AG defines BPE as the merging of business and technical approaches to business process manage- ment (BPM) and, therefore, as the engine of the Digital Enterprise. BPE is much more than BPM in that it addresses the complete life cycle of a process, which comprises a business component (BPE life cycle) and a technical component (BPE platform). Software AG presented Enterprise BPM at CeBIT 2011 and in doing so has brought an integrated process and integration platform to the market that enables Digital Enterprises to achieve the highest level of process efficiency. BPE is also the name of the Software AG business line comprising the webMethods and ARIS products.