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Software AG GB 2013. englisch

GroupManagementReport Administrative costs (without accounting for share price- based remuneration components) will increase by low ­single digits. This is also a result of the full-year effects of acquisitions. Anticipated dividends Software AG has been paying dividends regularly for many years based on the average net income and free cash flow. Typically the payout is between 20 and 25 percent of the average of these two figures. The decision as to whether the dividend is closer to the upper or lower limit of this range is based on the Company’s current financial needs for funding further corporate growth, for example, with acqui- sitions. Like last year, the Company expects to pay a divi- dend of €0.46 per share for fiscal 2013 (subject to the ap- proval of the Annual Shareholders’ Meeting). This reflects a total payout volume of €36.3 million and an average of about 24.8 percent of the 2013 net income and free cash flow attributable to shareholders of Software AG. This divi- dend calculation policy will in essence be applied in the future as well. Anticipated financial position Planned financing activities Software AG’s internal financing capability is higher than that which is necessary for normal business operations due to its high level of positive operating cash flow. External financing measures are taken almost exclusively for financ- ing large acquisitions. Because the timing of such acquisi- tions is not exactly foreseeable, the necessary financing cannot be predicted in detail either. In the past, Software AG has therefore engaged in reserve financing activities when capital market conditions appeared favorable. But favorable capital market conditions are also external factors, which Software AG can only anticipate to a limited extent. For these reasons, Software AG is currently planning no financing ac- tivities for fiscal year 2014. Should a large acquisition arise or should the capital market offer excellent conditions for reserve financing, or should both occur simultaneously, Soft- ware AG could take financing measures at any time. We continue to aim for double-digit growth in our BPE segment and again outperform the market. For fiscal year 2014 Software AG expects BPE product revenue growth between 12 and 18 percent (at constant currency). Our BPE outlook is formulated under the assumption that the future markets of big data and intelligent business operations (IBO) will continue to expand at an above-average rate, the renewal rate of current contracts will stay constant and the acquisitions made in 2013 will provide a broader cus- tomer base through which we will be able to tap cross-sell- ing potential. Because the traditional database software market is shrink- ing due to its maturity and saturation, we anticipate a steady revenue decline in the ETS business. ETS revenue is expected to drop by 9 to 16 percent (at constant currency) in 2014. Future ETS business is based on historical data and the as- sumption that the renewal rate of maintenance agreements will stay at last year’s level. In Consulting, earnings—as opposed to revenue—is the focus of corporate management. Here, Software AG works to con- tinually improve segment profitability. Based on the described assumptions, operating income (non-IFRS) is likely to rise between 4 and 10 percent. Forecast for Software AG parent company (sepa- rate financial statements) Software AG’s future financial performance depends upon the financial standing of the Software AG Group and depends on decisions regarding the payout of Group-internal divi- dends. Therefore, please refer to the forecast on expected financial performance of the Software AG Group. Anticipated performance of key items on the income statement Assuming Consulting revenue is stable, the cost of sales, which consists primarily of staffing costs for consulting ­projects, should be slightly down year on year due to opti- mized resource utilization and a reduction of external contractors. R&D expenses will increase moderately in 2014 because of acquisitions of technologies and development teams in 2013. 123 Corporate Governance Report of the Supervisory Board Consolidated Financial Statements Notes Additional Information Group Management Report Business and General Conditions Economic Report Events after the Balance Sheet Date Risk and Opportunity Report Remuneration Report Forecast Takeover-Related Disclosures Statement on Corporate Governance