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SAW QB1 2014, englisch

InterimManagementReport €13.3 million (2013: €21.1 million), as was expected. Main- tenance revenue for the same period fell from €43.2 million to €37.6 million. The cost of sales in the ETS segment dropped moderately to €3.3 million (2013: €3.8 million). Central sales and mar- keting expenses were down 31 percent to €9.1 million. Moreover, research and development expenses decreased to €6.2 million (2013: €6.5 million). Segment earnings were down 11 percent (at constant currency) from last year at €32.5 million (2013: €40.4 million). The segment margin maintained last year’s high level. Consulting The Consulting business line posted first-quarter revenue of €62.5 million (2013: €70.1 million). This decline is primarily due to the targeted consolidation of SAP consulting activities. Operations in North American and Eastern Europe were sold last year in that context. An agreement on the sale of SAP consulting in Germany, Austria and Switzerland to the Scheer Group in Saarbrücken/Germany followed in March 2014. The transaction marked the successful conclusion of the realignment of Software AG’s consulting activities. As a ­provider of software products only, Software AG will be able to focus on its own product portfolio and achieve higher margins than was possible with third-party consulting ­services. The Consulting segment contribution rose to €3.3 million (2013: €0.3 million), further confirmation of the successful operational turnaround. Financial Position Net cash provided by operating activities was down from €65.4 million in the first quarter of 2013 to €50.1 million in the first quarter of the current fiscal year. Cash flow therefore developed in line with net income, nevertheless exceeding it significantly. The repeat increase in cash flow is due pri- marily to active working capital management. Cash outflows from investing activities in the quarter under review were €6.1 million (2013 inflow: €3.6 million) because of the high expenditure for acquisitions. Net payments for acquisitions in the first quarter of 2013 were just €0.1 million, whereas this figure rose to €1.0 million in the first quarter of the current fiscal year. Furthermore, investments in secu- rities increased to €2.8 million (2013: 0). Capital expenditure for property, plant and equipment and intangible assets in the first quarter of 2014 held steady with the same quarter last year at €3.3 million and primarily comprised operating and office equipment in the sales branches and the admin- istrative headquarters in Darmstadt and Saarbrücken. Cash inflows from financing activities in the first quarter of 2014 were down from €32.6 million in 2013 to − €72.5 mil- lion. This change is a direct result of the share buyback which began in November 2013. Unlike in the same period last year, Software AG incurred no new financial liabilities. Free cash flow was down 24 percent to €47.8 million or €0.60 per share in the first quarter of the year. This is considerably higher than the Group’s net income. 9 Interim Management Report Interim Financial Statements Notes to the Interim Financial Statements Additional Information Significant Events During the Reporting Period Financial Performance Financial Position Assets Events After the Balance Sheet Date Risks and Opportunities Outlook