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Software AG GB 2013. englisch

GroupManagementReport and focus of the Consulting line. Following €-1.7 million in 2012, the Consulting segment generated a positive segment contribution with €9.3 million in the year under review. The Management Board anticipated a moderate increase in total revenue over fiscal 2012. Software AG’s actual total revenue for 2013 was €972.7 million as a result of lower revenue in the Consulting business. Exchange rates had an exceptionally negative effect (totaling about €37.8 million) on Group revenue, which, given stable currencies, would have exceeded one billion euros. Taking into account the additional investments for the expansion of sales and marketing, the Management Board assumed that earnings per share would be between €1.70 and €1.80 in 2013. When the the Q2 2013 financial figures were released, Software AG specified that results would probably be at the lower end of the target range. It re- ferred to the increasingly difficult market climate and the impact that could have on the whole software sector in- cluding possible postponements of large-volume license agreements. Earnings per share in fiscal 2013 were €1.60 (non-IFRS €2.07). Adjusted for net effects of acquisition-related ex- penses and of the share buyback in 2013, earnings per share were €1.70. It is important to note that the earnings forecast was calculated without accounting for currency exchange effects, expenses for new acquisitions, restructuring costs or the effects of the 2013 share buyback program. Comparison of actual performance with last year’s forecast 2012 Outlook 2013 (as of Jan. 29, 2013) 2013 BPE product revenue in € millions 385 16% to 22%* 15% ETS product revenue in € millions 310 -9% to -4%* -7% Earnings per share in € 1.9 1.70 to 1.80** 1.70** Confirming the update given with Q2 results on July 27, 2013: Based on year-to-date business development, the target ranges for product revenue and EPS are expected to be reached, though likely at the lower end. * Revenue growth or decline at constant currency (currency impact on reported 9m 2013 results: -4 percentage points). ** Reported EPS before effects of share buyback. Restructuring and acquisition-related charges in 2013. Software AG released a forecast for the past fiscal year in January 2013, which was periodically confirmed and elab- orated during the year by the Management Board. Forecasts are calculated assuming unchanging currency rates and without accounting for acquisition and restructuring-related expenses. Accordingly, growth in the BPE business line was expected to be considerably greater than in 2012. BPE product reve- nue in 2013 was expected to grow between 16 and 22 per- cent (at constant currency) compared to 2012. But at €423 million (2012: €385 million), BPE revenue actually increased 15 percent (at constant currency) year on year. Furthermore, the ETS business line’s share of revenue was forecast to shrink, with product revenue decreasing at con- stant currency between 4 and 9 percent. Revenue for fiscal 2013 in this business line was €274 million (2012: €311 million), a decrease of 7 percent (at constant currency) year on year. In total, ETS accounted for 39 percent (2012: 43 per- cent) of Group product revenue in fiscal 2013. This devel- opment is on target with the Management Board’s projec- tion, which was based on the assumption that the traditional database software market in general is in decline because of its maturity and saturation. The Management Board expected improved segment earn- ings in the Consulting business line. This target was exceed- ed thanks to the sustainable turnaround accomplished by withdrawing from unprofitable markets and the realignment 75 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