EANS-News: Software AG / Software AG's first quarter financial results confirm expectations

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3-month report

Darmstadt (euro adhoc) - Software AG's first quarter financial
results confirm expectations

- Business Process Excellence (BPE) total revenue of EUR124.3 million sets
new record high for a first quarter

- BPE growth was driven by a continued strong performance in Europe

- Enterprise Transaction Systems (ETS) with total revenue of EUR94.4
million performed better than anticipated

- Maintenance revenue at all-time quarterly high of EUR96.3 million

- Free cash flow up by 20 percent

- Full-year guidance for 2012 unchanged

Darmstadt, Germany, April 27, 2012 - Software AG (Frankfurt TecDAX:
SOW) reported record first quarter Business Process Excellence (BPE)
revenue of EUR124.3 million (EUR123.9 million in 2011). This growth
was primarily driven by very strong performances in Europe and the
introduction of new products. Enterprise Transaction Systems (ETS),
performed better than expected, with total revenue of EUR94.4
million. The company's software product business (license and
maintenance) reported total revenue of EUR161.5 million close to the
outstanding performance of Q1, 2011. Total maintenance revenue
reached an all time high for a quarter of EUR96.3 million. Despite
higher spending on R&D, Sales and Marketing, the EBIT margin reached
21.5% and free cash flow was increased by 20%. The company confirmed
its guidance for the full year 2012, published in January of this
year.

"The sustained success of the Business Process Excellence division in
Europe once again demonstrates the strength of both our product
portfolio and our new go-to-market strategy, a strategy that we are
now rolling-out globally", said Software AG CEO, Karl-Heinz
Streibich.

The first quarter has laid the basis for the full fiscal year

The Business Process Excellence division showed the same development
as in the second half of 2011 with strong growth in DACH and EMEA. It
is expected that this positive development will also be seen in the
USA in the second half of the year. The first quarter 2012 showed a
1.5 percent increase in BPE product revenue to EUR80.6 million
exceeding the extraordinary first quarter of 2011 by EUR1.2 million.
Total business division revenue of EUR124.3 million is a record high
for a first quarter.

During the quarter under review, the Enterprise Transaction Systems
performed better than anticipated. Product revenue of EUR76.3
million, services of EUR17.8 million and total revenue of EUR94.4
million have laid the basis for a full-year performance within the
guided corridor.

The IDS Scheer Consulting division reported sales of EUR35.8 million.
The withdrawal from unprofitable markets such as China and Russia and
the general focus on profitable projects resulted in a reduction of
revenue. As previously announced, Software AG has conducted a review
of strategic options for the further development of the global IDS
Scheer Consulting business. The company has decided to develop the
IDS Scheer Consulting business as an independent operating company
with an innovative partner management structure. Software AG is
therefore focusing on continuity and the stability of customer
relationships to generate growth.

Operating results

Software AG significantly increased BPE business line investment
(+EUR7 million) in R&D, Marketing and Sales in the first quarter of
2012 laying the basis for accelerated global growth with new
products. The company also further optimized administrative costs and
therefore achieved an EBIT margin of 21.5 percent and an EBIT of
EUR54.8 million (EUR60.2 in Q1, 2011).

Net income in the quarter under review was EUR35.9 million (2011:
40.0 million) and earnings per share EUR0.41 (2011: EUR0.47).

Free cash flow increased by 20 percent to EUR59.1 million and net
debt was significantly reduced by over EUR100 million over the past
twelve months to almost zero.

"We have invested substantially in R&D, Sales and Marketing laying
the basis for accelerated growth of our BPE business in the second
half of this year; but we have also maintained a high EBIT margin and
increased the free cash flow significantly", said Software AG CFO,
Arnd Zinnhardt.

Annual Shareholders' Meeting, May 4, 2011

A total dividend payout of EUR39.9 million or EUR0.46 per share
(2011: EUR0.43) for fiscal year 2011 will be proposed by Software
AG's Executive and Supervisory Boards at the shareholders' meeting on
May 4, 2011.

Outlook

The financial results of Q1, 2012 have laid the basis for the
successful development of the core business and for achieving the
full year targets for fiscal 2012. Therefore the company affirms the
forecast for the full year 2012, published in January, with growth of
5 to 15 percent in the BPE division and corresponding group revenue
in the range of +/- 3 percent, both in comparison to 2011 (at
constant currency). Software AG expects an EBIT margin of 23.0 to
24.5 percent for the current fiscal year.

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About Software AG

Software AG is the global leader in Business Process Excellence. Our
40 years of innovation include the invention of the first
high-performance transactional database, Adabas; the first business
process analysis platform, ARIS; and the first B2B server and
SOA-based integration platform, webMethods.

We offer our customers end-to-end business process management (BPM)
solutions delivering low Total-Cost-of-Ownership and high ease of
use. Our industry- leading brands, ARIS, webMethods, Adabas,
Natural, CentraSite and IDS Scheer Consulting, represent a
unique portfolio encompassing: process strategy, design,
integration and control; SOA-based integration and data
management; process-driven SAP implementation; and strategic
process consulting and services.

Software AG had revenues of EUR1.1 billion in 2011 (IFRS, unaudited)
and has more than 5,500 employees serving about 10,000 enterprise
and public institution customers across 70 countries. Our
comprehensive software and services solutions allow companies
to continuously achieve their business results faster. The
company is headquartered in Germany and listed on the Frankfurt
Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW).

Software AG - Get There Faster
Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany

Detailed press information about Software AG including a picture and
multimedia database are available under: www.softwareag.com/press

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Further inquiry note:
Barbara Kögler
Senior Vice President Corporate Communications
E-Mail: barbara.koegler@softwareag.com
Tel: +49 (0) 6151 92 1574
Fax: +49 (0) 6151 92 34 1243

Paul Hughes
Director Media Relations
E-Mail: paul.hughes@softwareag.com
Tel: +49 (0) 6151 92 1787
Fax: +49(0) 6151 92 1191

end of announcement euro adhoc
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company: Software AG
Uhlandstr. 12
D-64297 Darmstadt
phone: +49 (0)6151 92 1899
FAX: +49 (0) 6151 92 1933
mail: investor.relations@softwareag.com
WWW: http://www.softwareag.com
sector: Software
ISIN: DE0003304002
indexes: TecDAX, CDAX, HDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English