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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 80 • The ETS business line posted a slight decline of 1.6 per- cent to €375.3 million (2011: €381.3 million) in the year under review. Product revenue was €309.6 million (2011: €312.9 million), which represents a 1.1-percent decrease. This business line performed more stably than expected. We assumed at the beginning of 2012 that this business’ revenue could drop by up to 12 percent. • The IDSC business line did not meet expectations. Rev- enue was down 33.9 percent from €189.2 million in 2011 to €125.1 million in 2012. External product reve- nue dropped 22.8 percent at €17.9 million (2011: €23.2 million). The cause was the ongoing reorganiza- tion of this business line. In the past year we withdrew from unprofitable markets and placed our emphasis on the process side of SAP application consulting—particu- larly in German-speaking countries. SUMMARY OF BUSINESS PERFORMANCE 2012 was a successful year of transformation for Software AG. We consolidated traditional areas of business and rein- forced new areas of growth. A wide range of operational and strategic measures led to tangible progress in the devel- opment of our Company. • Total revenue for the BPE business line climbed 3.6 per- cent year on year to €547.0 million (2011: €527.9 mil- lion). Product revenue rose 13.9 percent to total €384.7 million (2011: €337.8 million). With its BPE busi- ness the Software AG Group is setting its stakes on a promising high-growth market of the future. The Group is currently generating more than half of its revenue with this business line. In order to fuel growth in this promising business, some €40 million euros were invested in the expansion of sales and marketing and in research and development in the past year. BUSINESS TREND AND ECONOMIC SITUATION