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SAW QB2 2014, englisch

end of the first quarter of 2014 and €450.0 million at the beginning of the fiscal year. Free cash flow in the second quarter of 2014 increased year on year by 94 percent to €18.5 million (2013: €9.6 million). The second-quarter figure is therefore greater than Group net income. In line with that, free cash flow per share increased to €0.23. Free cash flow in the first quarter was €47.8 million. Free cash flow in the first half of the year went down to €66.3 million (2013: €72.3 million). Assets ­Software AG’s total assets decreased from €1,996.9 million on December 31, 2013 to €1,730.7 million on June 30, 2014. This decline was due primarily to the reduction in financial liabilities through the scheduled repayment of the promis- sory note loan in the amount of €200.1 million. In addition, trade re­ceiv­ables were down by €68.5 million. Furthermore, fixed assets decreased by €31.2 million compared to Decem- ber 31, 2013. The decline in intangible assets to €186.7 million (2013: €211.8 million) was due to the sale of the brand and customer base associated with the divesture of IDS Scheer Consulting GmbH. Net debt was up from €163.4 million last year to €183.0 million as of June 30, 2014. In- cluding the value of treasury shares results in net cash flow. Due to the share buyback program successfully concluded in the first quarter of 2014 as well as the dividend payout in the second quarter of 2014, shareholders' equity de­ creased to €909.1 million (2013: €965.6 million). Neverthe- less, ­Software AG's equity ratio as of June 30, 2014 achieved a 52.5-percent increase compared to December 31, 2013 (48.4 percent). This was a result of the significant decrease in total assets. The company acquired a total of 4.1 million treasury shares for a price of €110.0 million in the period from November 2013 to February 2014. As of June 30, 2014, ­Software AG held 8,025,101 treasury shares, which represents 9.2 percent of its share capital. Employees As of June 30, 2014 ­Software AG had 4,606 (full-time equiva­ lent) employees compared to 5,238 as of December 31, 2013. The number of em­ploy­ees in Sales and Marketing decreased to 1,042 (Dec. 31, 2013: 1,180) as a result of adjustments in the Consulting and ETS segments as well as in Marketing departments throughout the Group. The ­number of employees in administrative departments as of June 30, 2014 fell to 664 (Dec. 31, 2013: 713) and in R&D to 977 (Dec. 31, 2013: 998). The number of employees in Germany went down to 1,251 (Dec. 31, 2013: 1,711). Management's assessment of second-quarter results The Management Board is of the opinion that ­Software AG is well positioned in the global market, and its transformation into a product provider with a focus on the future segment of BPE will lead to sustainable growth and profitability. The Group was not able to continue its positive BPE performance in the second quarter of 2014, as planned, due to surprising reluctance by customers to commit to major IT infrastructure projects and significantly longer sales cycles in this field. Because of our solid pipeline of large-­volume deals, we are still confident that demand for integration and process software will continue as enterprises increasingly embrace ­digitization and undertake new BPE projects—despite the challenging market climate. In order to counteract this ­volatility, we will expand our sales efforts to focus on ­medium-sized deals as well. Software AG | Interim Report 2 | 2014 14