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Software AG GB 2013. englisch

Share price determined by short- term investors 2013’s bull market offered only short-term benefits for Soft- ware AG’s share price. After hitting €31.41 in Xetra trading at the beginning of the year, gains of almost 12 percent were tracked in the weeks to follow, thanks to positive market sentiment. The stock hit its year high on January 25, 2013 at €35.14. Software AG stock came under pressure on January 29, 2013 with the release of the Company’s Q4 2012 results and outlook for 2013. The long-term growth strategy and accom- panying investments in marketing and sales in fiscal 2013 did not meet the capital market’s expectation for a short- term profit margin increase. The impact on profit margin in the high-growth Business Process Excellence (BPE) business and the anticipated revenue decline in the profitable, but mature, Enterprise Transaction Systems (ETS) business led to stock shifts and profit takes among short-term investors. Software AG’s share price closed at €28.90 on January 29, 2013 and continued to recede in the second quarter. Not even the stable dividend of €0.46 per share, the Q1 2013 results or the Company’s acquisition of cloud platform pro- vider LongJump were able to trigger a sustainable share price increase. The share price recovered to €28.90 in November 2013, driven by the results of the second and third quarters of 2013, operational improvements regarding SAP services and the share buyback program announced in October. Soft- ware AG’s share ended the trading year at €25.40. Software AG maintained its good position in Deutsche Börse AG’s TecDAX ranking at third place in trading volume and seventh in market capitalization. The stock’s average daily trading volume was around €9.2 million and 338,400 units traded. Software AG was the only large software stock in the TecDAX to be significantly affected by the perfor- mance of telecommunication sector stocks. The same occurred with solar companies in the past. The TecDax is there- fore not a performance benchmark for Software AG stock. Further share capital increase In the period under review, Software AG staff members and executives exercised 26,500 stock options, which resulted in an increase of shares outstanding to 86,943,945. Software AG’s share capital therefore went up to €86.9 million; mar- ket capitalization at the end of the year was approximately €2.2 billion. Stable dividend despite additional investments In accordance with a resolution passed at the Annual Share- holders’ Meeting on May 3, 2013, Software AG again paid out the record-level dividend of €0.46 per dividend-bearing share for fiscal 2012. This equates to a total payout sum of €39.2 million or a payout ratio of 24 percent (2011: 22 per- cent) of consolidated net income. Software AG’s dividend policy is based on long-term devel- opment of the Company. The dividend is calculated accord- ing to the Company’s reported Group earnings and free cash flow on one hand and the necessary financial requirements for further growth on the other. The focus of Software AG’s strategy shifted to growth in the BPE business line in fiscal 2012. Despite the Company’s investments in long-term growth, which led to declined earnings in fiscal 2013, and the share buyback program implemented in 2013, the Management Board and Super- visory Board of Software AG proposed that, like last year, a dividend of €0.46 be paid for fiscal 2013. Software AG’s strategic goal for the use of cash flow is not only to invest in growth, but also to share its profitability with shareholders through a stable dividend again this year. Our dividend policy is based on long-term development of the Company. 33 Corporate Governance Report of the Supervisory Board Group Management Report Consolidated Financial Statements Notes Additional Information