Annual Report 2007

Notes on segment reporting

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Notes on segment reporting

The segment report is prepared in accordance with IFRS 8 Operating Segments. This IFRS is effective for annual periods beginning on or after January 1, 2009. Software AG has opted for early application of this standard beginning with fiscal year 2007. Segmentation is defined along internal control and reporting lines in the Group (management approach). In 2007, the segment report was restructured to reflect the two product lines as part of an internal organizational change in the Group. The Group was broken down into two segments, ETS and webMethods. Internal reporting processes were adapted in line with the new structure and the previous years' figures were accordingly adjusted.

Information on geographic regions

Revenues generated with external customers can be broken down into geographic regions as follows:

Table 1/2: Geographic distribution of revenues

€ thousands Germany USA Spain

2007 2006 2007 2006 2007 2006
Licenses 34,055 24,504 66,839 34,318 10,644 15,868
Maintenance 28,778 26,021 81,691 64,322 14,410 14,219
Professional
Services 		2,183 17,472 26,500 13,986 55,015 51,543
Other 910 764 610 353 3,320 1,753
Total 65,926 68,761 175,640 112,979 83,389 83,383

Table 2/2: Geographic distribution of revenues

€ thousands Other countries Group total

2007 2006 2007 2006
Licenses 129,801 91,052 241,339 165,742
Maintenance 88,059 82,716 212,938 187,278
Professional
Services 		77,484 43,213 161,182 126,214
Other 960 863 5,800 3,733
Total 296,304 217,844 621,259 482,967


Countries included in "other countries" are presented separately once the revenue generated in the country in question reaches a significant level. Revenues with external customers in the U.S. and Spain each contributed more than 10 percent to Group revenue and are therefore listed separately.

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