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  Key figures
  Introduction by the Executive Board
  Share performance
  Overview of business development
  Interim statement
  Financial Calendar
  Firm foundations for growth  
  Karl-Heinz Streibich
Chief Executive Officer
Software AG has made great progress in terms of strategy over the past nine months, and is significantly stronger as a result. Our future growth plans are clearly oriented toward achieving market leadership.


Increased profitability, a more stable revenue base, and greater depth in terms of financial resources – they were the ambitious goals we set for fiscal 2004. And we left no stone unturned in their pursuit: Our strategic orientation, service portfolio, and internal organizational structures are all now more clearly focused on and driven by customer requirements.

The changes are already paying dividends. Software AG today offers its customers outstanding added value. And we have significantly consolidated our market position. Allied with improvements in the economy as a whole, this has laid the groundwork for successful future growth.

Consolidating and leveraging solutions expertise
At the same time as optimizing our Enterprise Transaction Systems offering, we have also been working hard to develop the XML Business Integration Portfolio, successfully adding complete integration solutions: At the beginning of the year, the portfolio consisted solely of Integration Services and the EntireX and Tamino XML Server product lines. In the first half of the year, we added Integration Packages, and during the third quarter, Integration Solutions. These were based on concepts first developed in the regions and adapted for the international market. Each one embodies outstanding best practices and draws on our in-depth project experience. All the new solutions leverage existing strengths and apply them on a global level.

International demand for integration
Companies are increasingly looking to achieve tight integration. To succeed in today’s marketplace, they need to react rapidly to changing requirements. And to do this, they need to exchange information between a diverse range of systems and applications – not only internally, but also with customers, suppliers, and partners. E-government, too, is playing an increasingly prominent role, with official bodies placing greater emphasis on data transfer as a result. In both areas, systems integration is central to effective collaboration, accelerated processes, and optimized costs. As a result, it is a major success factor – in both the private and public sectors.

The enhancement of our Integration Portfolio expands our footprint in this promising market. Software AG is already beginning to exploit some of the opportunities for sustainable growth in this area. We are convinced that XML will make an increasing contribution to our development. And the initial response to our broader portfolio confirms these positive expectations.

Focus on market leadership
The success we are witnessing in systems integration is indicative of the performance of Software AG as a whole. In the future, market leadership will remain a major challenge, which we will tackle head on. And our status as a cutting-edge technology company with a firm customer focus, international presence, and healthy business foundations means that we are exceptionally well placed to make great strides toward this goal in 2005.


Karl-Heinz Streibich
Chief Executive Officer

  Interim Report Q3/04 (PDF)
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