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Software AG GB 2013. englisch

The expense of research and development (R&D) for new and existing products rose by €6.8 million to €107.9 million (2012: €101.1 million), which is a 7-percent increase. As a percentage of product revenue (licenses and mainte- nance), R&D expenses increased from 14.2 percent to 15.3 percent. Sales, marketing and distribution expenses climbed 22 percent to total €300.1 million (2012: €246.9 million), which is €53.1 million in additional spending. Their proportion to total revenue increased from 23.6 percent to 30.8 percent. The increase in expenses for R&D and sales, marketing and distribution reflects the Company’s strategy of intensifying investments in new future-oriented products and markets in the BPE business line. Pursuing this invest- ment strategy, Software AG made consistent progress in the evaluation and development of new technologies and products. General and administrative expenses were ­decreased slightly to €73.2 million (2012: €75.8 million) year on year. Other taxes were also just below last year at €7.1 million (2012: €8.0 million). Software AG’s operating result was thus down to €189.8 million (2012: €237.0 mil- lion) because of additional expenses for the expansion of sales and marketing as well as R&D. Other income was up from €24.6 million in 2012 to €44.1 million in 2013 due to income from the sale of SAP service operations in the USA and Canada and the positive effects of low-interest loans. Other expenses increased to €35.5 million (2012: €21.4 million) due to currency ex- change losses. Net financial income/expense was on par with last year at €-8.4 million (2012: €-8.8 million). Soft- ware AG’s earnings before tax went down 18 percent to €190.0 million (2012: €231.5 million). Accordingly, income tax was 16 percent lower at €56.0 million (2012: €66.8 mil- lion). The Group’s effective income tax rate in 2013 was 29.5 percent (2012: 28.9 percent). Software AG’s Group net income was €134.0 million (2012: €164.7 million). Accord- ingly, earnings per share (basic) were €1.60 (2012: €1.90). The decrease in earnings per share is attributable to Soft- ware AG’s extensive investments in the 2013 fiscal year. The average number of shares outstanding (basic) in the year under review amounted to 83,702,176 (2012: 86,784,793). Appropriation of profits Software AG will continue its consistent dividend policy. The Management Board and Supervisory Board will propose a dividend of €0.46 per share at the Annual Shareholders’ Meeting. Subject to the approval of the Annual Shareholders’ Meeting and assuming 78.9 million shares outstanding, this would be a total payout sum of €36.3 million (2012: €38.2 million). Earnings performance The increased investments in the expansion of sales and marketing and in R&D led to a planned decrease in earnings in fiscal 2013. EBIT (earnings before interest and taxes) in fiscal 2013 was €205.5 million and therefore 17 percent down from last year’s €248.3 million. Accordingly, the EBIT margin was 21.1 percent (2012: 23.7 percent). Net income was €134.0 million (2012: €164.7 million). Earnings in € millions 2013 2012 Change in % Total revenue 972.7 1,047.30 -7 Cost of sales -294.6 -378.4 -22 Gross profit 678.1 668.9 1 Margin as % 69.7% 63.9% R&D -107.9 -101.1 7 Sales & marketing -300.1 -246.9 22 Administration -73.2 -75.8 -3 Other income/expense 8.6 3.2 −   EBIT 205.5 248.3 -17 Margin as % 21.1% 23.7% Software AG | Annual Report 2013 80 Letter from the Management Board Software AG ShareAbout Software AG Highlights 2013