Please activate JavaScript!
Please install Adobe Flash Player, click here for download

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 87 in € millions FY 2012 FY 2011 Change in % Total revenue 1,047.3 1,098.3 -5 Cost of sales -378.4 -442.1 -14 Gross profit 668.9 656.2 +2 Margin as % 63.9 59.7 Research & development -101.1 -88.0 +15 Sales and marketing -246.9 -230.2 +7 Administration -75.8 -75.1 +1 Other income/expense +3.2 +6.3 – EBIT 248.3 269.2 -8 Margin as % 23.7 24.5 The reason for the decline was primarily our investment in sales, which will lay a foundation for growth in coming years. Expenses for sales and marketing were therefore up 7 percent to €246.9 million (2011: €230.2 million). Their proportion to total revenue increased from 20.9 percent to 23.6 percent. We also drove forward the evaluation and development of new technologies and products, which are the engines of future revenue. This was reflected in research and development expenses, which went up 14.8 percent to €101.1 million as compared to €88.0 million last year. The proportion of R&D expenses to product revenue (licenses and maintenance) increased from 13.2 percent to 14.2 per- cent. Increased investments in the amount of €40 million were spent on the high-growth BPE business alone. In addi- tion, one-time items were booked in the IDSC line resulting from consolidation of the SAP consulting business. Our EBIT margin was 23.7 percent (2011: 24.5 percent), which was in the upper half of the forecast range. This was possible because we were able to keep our high-margin ETS business mostly stable and steadily increased our BPE prod- uct revenue. At the same time, we continued our strict cost management and made sure to further improve our admin- istrative structures. As a result administrative expenses stayed stable year on year totaling €75.8 million for 2012. Their proportion to total revenue increased from 6.8 percent to 7.2 percent. COST STRUCTURE The cost of sales was €378.4 million (2011: €442.1 million), which is a 14.4-percent year-on-year reduction. The lower costs are primarily due to the €42.0 million decrease in the cost of sales, largely personnel costs, in the IDS Scheer busi- ness line. With the withdrawal from unprofitable markets, employees were also let go. R&D expenses for new and existing products increased 15 percent to €101.1 million (2011: €88.0 million). Sales and marketing expenses rose 7.2 percent to €246.9 million (2011: €230.2 million). The increased R&D expenses and sales and marketing expenses reflect the Company’s strategy to invest in new products and new markets in the Business Process Excellence busi- ness line. General administrative expenses were €75.8 mil- lion (2011: €75.1million) and thus nearly constant in spite of higher variable remuneration compared to last year. 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