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Software AG GB 2013. englisch

The option to exercise rights depends upon the achieve- ment of defined targets for revenue and Group net income. The target is defined as the doubling of Group revenue for new products and simultaneous doubling of net income compared to fiscal year 2010 by fiscal year 2015 at the latest. “New products” as defined for the revenue performance target are mainly all products outside of the Adabas, Natural and EntireX product portfolios. In November 2012 Manage- ment Incentive Plan IV was adjusted to reflect changed strategic targets, which require major investments in growth and a stronger focus on the cloud business. The Company therefore took the cloud computing megatrend into account in its calculations of relevant revenue. This means that the cloud revenue that is generated on a pro rata subscription basis is recognized with a multiplying factor; IFRS revenue from new products must however be at least €450 million in fiscal year 2015. Instead of doubling net income, it was determined that Software AG Group’s non-IFRS EBIT margin (EBIT margin adjusted to reflect the following one-time ef- fects: effects of purchase price allocations, amortization associated with acquired intangible assets through corporate acquisitions, expenses from share-based compensation and one-time effects of restructuring) must be at least 10 percent by 2015, whereby underperformance of the non-IFRS EBIT margin may be balanced out by the appropriate outperfor- mance of the revenue performance target. The condition that the share price must be €60.00 on at least one of the last five weekdays prior to exercise re- mained unchanged. [34] Stock option plans Software AG has various stock option plans for members of the Management Board, managers and other Group em- ployees. These involve equity-settled plans and plans where the Company has the choice of settling either in cash or by providing equity instruments. The expense for share-based compensation in fiscal 2013 was as follows: No expenses for share-based compensation transactions were capitalized as inventories or non-current assets. Management Incentive Plan 2011 (MIP IV) (2011-2016) A share-performance-based Management Incentive Plan (MIP IV) for members of the Management Board and upper management was developed in 2011. The program offers stock options (hereinafter referred to as “rights.”) but the Company reserves the right to service these rights in cash or shares. The plan was officially approved by the Annual Shareholders’ Meeting in May 2012. The first allocation tranche was based on the following parameters: in € thousands 2013 2012 Income/expense from share-based compensation -922 7,871 of which from share-based compensation that was accounted for as equity-settled plans pursuant to IFRS 2 3,408 4,389 of which from hedging activities relating to share-based compensation plans (PPS) 3,718 -1,288 Base price €41.34 Earliest exercise date May 4, 2016 Term of rights 10 years Software AG | Annual Report 2013 192 Letter from the Management Board About Software AG Software AG ShareHighlights 2013