The free cash-flow of Software AG increased by 23 percent to €56.2 million during 2006 (prior year: €45.6 million). This represents a share of 11.6 percent in total revenues. In terms of individual shares, free cash flow increased from €1.66 to €2.00.

in € million	Q4 2006	Q4 2005	Fiscal year 2006	Fiscal year 2005	Change in %
Operating Cash Flow	23.4	7.5	61.4	55.7	+ 10
./. CapEx*	– 1.6	– 3.0	– 5.2	– 10.1	+ 49
Free Cashflow	21.8	4.5	56.2	45.6	+ 23
as % of revenue	16.2	5.3	11.6	10.4
Free Cash Flow per share (in )	0.78	0.16	2.00	1.66	+ 20
Average number of shares (in € million)	28.1	28.0	28.1	27.5	+ 2
* Cash Flow from investing activities except acquisitions

 

Solid operating cash flow

Net cash from operating activities amounted to €61.4 million (prior year: €55.7 million). This represents an increase of 10 percent equal to the increase in sales and is a sign of the intrinsic value of the business.

Cash flow from investing activities improved from €19 million to €5.8 million in 2006. This is the result of three acquisitions, as well as of relocating our subsidiary’s headquarters in the U.S. during 2005.

Cash flow from financing activities decreased from €0.2 million to €23.7 million. This was due to the fact that additions to equity capital from the exercise of stock options were €20.4 million less than in the previous year.

The net change in cash and cash equivalents amounted to €23.2 million (prior year: €42.5 million). This ensued from an increase in cash and cash equivalents from €161.6 million to €184.8 million in the past fiscal year. The net change in cash and cash equivalents was influenced by cash proceeds from issuing shares in the amount of €22.6 million in 2005.