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Software AG GB 2013. englisch

sector are considered a key performance indicator of future profitability as they produce long-term maintenance reve- nue. The new U.S. subsidiary, Software AG Government Solutions, which focuses on customers in the public sector, made a positive contribution to BPE performance by securing some large deals in the past fiscal year. Maintenance revenue in 2013 was €202.8 million (2012: €190.0 million), which reflects a 7-percent increase year on year. This growth is a result of BPE license agreements that were concluded in past years. The high-growth BPE segment accounted for about 60 per- cent (2012: 54 percent) of Group product revenue (licenses + maintenance) and therefore continued to strengthen its role as Software AG’s largest business line. This growth was accelerated due to the first effects of the expansion of sales, particularly in the second half of 2013. Due to substantially higher investments in sales and mar- keting totaling €201.5 million (2012: €137.3 million) and in research and development totaling €82.5 million (2012: €74.9 million), BPE segment earnings suffered a dispropor- tionate loss at €116.5 million (2012: €153.7 million). Business lines and segment reports Our operations are divided into three segments: Business Process Excellence (BPE), Enterprise Transaction Systems (ETS) and Consulting. Business Process Excellence (BPE) The high-growth BPE business line generated €422.9 million (2012: €384.7 million) in revenue with integration and pro- cess software as well as big data solutions, which is 10 per- cent growth year on year (+15 percent at constant currency). Within the BPE line, the big data products performed best, nearly doubling revenue from last year at €36.8 million (2012: €20.4 million). Software AG decided at the end of 2012 to expand sales significantly and intensify investments in marketing. After having achieved a technology leadership position, the goal was to accelerate growth in this future market as well as increase the Company’s market share. The strategic initia- tives and investments had an especially positive impact on BPE license revenue, which rose 13 percent to €220.1 mil- lion (2012: €194.7 million). License sales in the software Segment report BPE 2013-2012 in € millions 2013 2012 Change in % Licenses 220.1 194.7 13 Maintenance 202.8 190.0 7 Total revenue 422.9 384.7 10 Cost of sales -22.4 -18.8 19 Gross profit 400.5 365.9 9 Sales & marketing -201.5 -137.3 47 R&D -82.5 -74.9 10 Segment earnings 116.5 153.7 -24 Software AG | Annual Report 2013 82 Letter from the Management Board Software AG ShareAbout Software AG Highlights 2013

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