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Software AG interim report 2 2013

17 04 SOFTWARE AG’S SHARE 09 Interim Management Report 22 interim Financial Statements 30 Notes to the Interim Financial Statements 44 Service 2.3 Earnings Performance Earnings Q2 2013 / YTD 2013 (6 months) Software AG lowered its cost of sales in the second quarter of 2013 by 25 percent to €73.5 million (2012: €97.6 million). The reduction is mainly due to the consolidated focus in the Consulting business line. As a result of this targeted cost reduction and the positive development of the revenue mix in favor of BPE licenses and maintenance, Software AG’s gross profit margin grew to 69.1 percent (2012: 62.3 percent). As in the first quarter of the year, research and development expenses totaled €26.2 million (2012: €25.3 million). The cost of further development of acquired products was not recognized in this quarter; it will be accounted for in upcom- ing quarters. Administrative expenses dropped 7 percent to €17.4 million (2012: €18.7 million) due to efficiency measures to maximize the benefits of the expanded organization. in € millions Q2 2013 Q2 2012 ∆% YTD 2013 YTD 2012 ∆% Total revenue 237.7 258.6 − 8 % 462.7 513.2 − 10 % Cost of sales − 73.5 − 97.6 − 25 % − 149.4 − 199.3 − 25 % Gross profit 164.2 161.0 2 % 313.3 313.9 % 0 % Margin as % 69.1 % 62.3 % 67.7 % 61.2 % Research & development − 26.2 − 25.3 4 % − 52.4 − 49.6 6 % Sales & marketing − 73.9 − 61.6 20 % − 146.8 − 120.9 21 % Administration − 17.4 − 18.7 − 7 % − 35.2 − 34.2 3 % Other income / expense − 2.3 1.7 −  7.1 2.7 163 % Ebit 44.4 57.1 − 22 % 86.0 111.9 − 23 % Margin as % 18.7 % 22.1 % 18.6 % 21.8 % The planned increase of €12.3 million in sales expenses totaling €73.9 million (2012: €61.6 million) was largely for addressing new high-potential BPE markets such as the public sector in the USA. EBIT was €44.4 million (2012: €57.1 million) and therefore on target; it decreased by the same amount (€12.7 million) by which sales and marketing expenses increased. The EBIT margin was 18.7 percent (2012: 22.1 percent). SIGNIFICANT EVENTS DURING THE REPoRTING PERIOD 09 FINANCIAL PERFORMANCE 12 FINANCIAL POSITION 19 EMPLOYEES 20 OPPORTUNITIES AND RISKS 20 EVENTS AFTER THE BALANCE SHEET DATE 21 OUTLOOK 21

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