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Software AG GB 2013. englisch

GroupManagementReport software sector’s most important market. Our new market- ing units there already contributed to growth with large deals, primarily in the public sector. We also maintained our operating profit margin at a very good level through stringent cost discipline in other parts of the Company. Our high cash reserves provide the flexibility we need for further growth. In order to enhance our organic BPE growth and continue expanding Software AG’s highly innovative product suite, we made five technology acquisitions worth a total of €113,2 million in 2013. The integration of new technology units is a unique strength of Software AG, as our successful acquisition track record proves. It allows us to broaden and accelerate our own ability to innovate. And in that way, were were able to build our successful BPE business and take it to the top of the market. Software AG recognized the transformational power and potential of technological megetrends early. The BPE product range therefore addresses the entire spectrum of these converging trends now. Numerous studies and awards from respected market analysts in 2013 confirmed that our prod- uct families are unique and leading the market. Our software and services provide the equipment that every organization needs to embrace the rapidly advancing digi- tization, regardless of industry and size. Software AG is ­excellently positioned to guide customers through the trans- formation to a Digital Enterprise and reach their goal quickly and efficiently. Overall statement on financial position Management’s assessment of financial position We significantly outperformed the overall market in our future-oriented BPE line in fiscal 2013. BPE product revenue went up more than 15 percent at constant currency, which is twice the growth of our competitors. License revenue even achieved 18 percent growth—a clear confirmation that we are gaining new business and market share. 2013 was also a successful year for Software AG’s two other business lines. The traditional ETS database segment, which has to stake its claim in the shrinking mainframe market, performed well. Because of a conscious refocus on profitable markets in the German-speaking region, the recently restructured Consult- ing business line generated less revenue, but more impor- tantly a positive contribution to total Group net income again, which confirmed the operational turnaround. Total Group license revenue, a key indicator, hit a new com- pany record at €330.1 million. License revenue is a key indicator of future growth in the software sector, because it typically leads to long-term maintenance revenue through subsequent update and support agreements with custom- ers. It also shows an improved revenue mix. The major growth in products shifted our revenue mix in favor of the growth-driving, high-profit license and maintenance reve- nue, particularly in BPE. A good two-thirds of total license revenue was generated in the BPE business line. Two especially positive factors were involved. Firstly, license revenue made considerable gains in the second half of 2013. That is an indication that our investments in organic growth were effective and will lead to more positive effects. Secondly, our average deal size increased significantly—fuelled primarily by 8-digit BPE deals. Overall this positive trend confirms our growth strategy and our goal to gain market share and evolve from technology leader to market leader. Furthermore, we drove expansion of our innovative product portfolio and of sales and market- ing in the past year—above all in the USA, which is the 97 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