Exchange rate risks

The Group is exposed to various exchange rate risks due to its international operating environment. We utilize financial derivatives to mitigate the effects of exchange rate changes. Our hedging instruments are used to cover existing foreign currency receivables and payables and anticipated payment streams. Income generated in foreign currencies from individual Group companies is also hedged against changes in value due to exchange rate fluctuations. All exchange rate risks are monitored centrally.

Other financial risks

Due to Software AG’s diversified markets and customer structure, no cluster risks exist. Default risks are marginal as a result of the generally high level of creditworthiness on the part of our customers.