Number of employees

Software AG had 2,621 employees worldwide as of December 31, 2006 versus 2,750 in the previous year. In Germany the number of employees amounted to 761 (prior year: 774). In line with Software AG’s strong international orientation, 71 percent of employees are engaged abroad.

Capital expenditure for research and development

We have hired new employees in research and development. The number of R&D employees rose by 8 percent, from 371 employees in 2005 to 401 employees in 2006. However, our emphasis on core areas and efficiency increases in the divisions of marketing and sales, maintenance and Professional Services, and management and administration have led to an overall drop in the number of employees. Efficiency per employee rose by 6 percent compared to 2005.

Employee survey findings implemented

In the year under review, we assessed the results of our 2005 global employee survey and successfully implemented the recommended measures. One of these was to strengthen our corporate culture. We redefined the mission, vision, and values of Software AG to create a comprehensive corporate model. The new model was officially introduced in January 2007. Now all employees contribute to its active implementation. In addition, we have expanded our internal communications system.

We seek to promote and support our employees in numerous ways, as evidenced in the establishment of our Corporate University. The Corporate University is geared towards all employees around the world. More than 2,100 of Software AG’s 2,600 employees have taken advantage of our comprehensive training programs and continuing education offers. The program has a satisfaction rate of 87 percent. Given Software AG’s strong market orientation, the fields of technology, sales, and marketing are the main focus of training. The training program of our in-house university comprises global management development, customer-first seminars, technical training weeks, and an evening academy.

In addition, the Corporate University initiated a comprehensive, international training program lasting 18 months during 2006 based on the results of the employee survey. The program is geared toward Software AG employees in all divisions and having all kinds of career goals: management, new executives and management trainees, architects, project managers, secretaries, and other target groups.

Headcount by functional areas*
	Dec 31, 2006	Dec 31, 2005	Change in %
Sales & Marketing	590	633	– 7
Maintenance & Service	1,190	1,296	– 8
Research & Development	401	371	+ 8
Management & Administration	440	450	– 2
Total	2,621	2,750	– 5

* According to P+L cost structure