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Software AG interim report 2 2013

16 Software AG | Interim Report 2/2013 which grew both year-on-year (€− 4.3 million to €2.7 million) as well as compared to the previous quarter (€2 million). The gross profit margin therefore increased from 14 percent in the first quarter of 2013 to 16 percent in the second due to productivity improvements. The positive performance of the segment earnings reflects the success of the operational turnaround and of the stra- tegic realignment aimed at returning to profitability and growth. Software AG will continue to implement the com- municated strategy and focus its consulting business on process optimization for SAP applications in German-­ speaking­ countries. Consulting Segment report Q2 2013 / YTD 2013 (6 months) The Consulting business line, which has comprised the ser- vices of BPE, ETS and IDS Scheer Consulting since the begin- ning of this fiscal year, posted revenue at €70.5 million (2012: €86.9 million). The decrease in revenue is primarily a result of the realignment and consolidation of the Com- pany’s SAP consulting business. Software AG began exiting from unprofitable markets last year. That was followed by the successful sale of its North American SAP service activ- ities at the beginning of this year. In line with the focus of the consulting business, Software AG further reduced costs. The cost of sales dropped 29 per- cent, which is more than the drop in the business line’s revenue, to total €59.2 million (2012: €82.8 million). This resulted in a significant improvement to segment earnings, in € millions Q2 2013 Q2 2012 ∆% ∆% acc YTD 2013 YTD 2012 ∆% ∆% acc Licenses 0.4 0.3 33 % 35 % 1.0 1.2 − 17 % − 12 % Maintenance 1.7 3.8 − 55 % − 57 % 3.5 7.5 − 53 % − 53 % Product revenue 2.1 4.1 − 49 % − 50 % 4.5 8.7 − 48 % − 48 % Services & other 68.4 82.8 − 17 % − 16 % 136.1 175.6 − 22 % − 22 % Total revenue 70.5 86.9 − 19 % − 18 % 140.6 184.3 − 24 % − 23 % Cost of sales − 59.2 − 82.8 − 29 % − 119.4 − 170.3 − 30 % Gross profit 11.3 4.1 176 % 21.2 14.0 51 % Sales & marketing − 8.6 − 8.4 2 % − 18.2 − 18.1 1 % Segment earnings 2.7 − 4.3 −  3.0 − 4.1 − 

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